City Council – June 27, 2023
FY 2023-25 Budget Adoption
Tonight’s Actions
• Adopt FY 2023-24 Budget and Approve FY 2024-25 Budget Plan • Adopt annual Resolutions:
o Fees, fines, and parking rates
o Runoff Reduction Fee rate
o Gann Appropriations limit
o Approve allocation of SB-1 Gas Tax funding
o Position and Classification Changes and Salary Rates
• Accept grant awards and renewals
• Approve contracts with Salvation Army and BerryDunn and Approve MOU with SMMUSD
• Direction on the allocation of Council Discretionary Funds 2 The Biennial Budget
Operating Budget
• FY 2023-25 Biennial
• Adopt Year 1: FY2023-24
• Approve Year 2: FY2024-25
3 Capital Budget
• FY 2022-24 Biennial
• Adopt Year 2: FY2023-24
March 11 Retreat
• 5 Year Forecast, state
of operations
• Council adopts
priorities for FY 2023-
25 Biennial Budget
May 23 Study Session
• Proposed FY 2023-
25 Budget Presented
to City Council for
feedback
June 27 Adoption
• FY 2023-25
Budget Public
Hearing and
Adoption
The City’s Biennial Budget Timeline
May 12 Proposed
Budget is Published
The FY 2023-25 Proposed Biennial Budget
Most substantial restoration and introduction of new ongoing services since 2020 restructuring
Ø Provides stability through ongoing program funding
Ø Strategic and focused on community priorities and
enabling in-person services
ü Year 1 Budget is Balanced
ü Year 2 General Fund Uses Working Capital Reserves
5 BUDGET OVERVIEW:
FY 2023-25 Proposed Budget (w/Final Changes)
6 FY 2023-24 Proposed Budget
Citywide - $745.0 million*
• Including $4.2m in Final Changes
• 4.4% increase over FY 2022-23
General Fund - $436.9 million
FY 2024-25 Budget Plan
Citywide - $750.6 million*
• Including $4.1m in Final Changes
• 0.7% increase over FY 2023-24
General Fund - $458.6 million
*Net of reimbursements and transfers between funds
641.0
664.7
104.1
85.9 - 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0
Budgeted Expenditures* (in millions)
Operating Capital
Other
Funds
Enterprise
Funds
General
Fund
BUDGET OVERVIEW:
FY 2023-25 Proposed Budget (w/Final Changes)
7 2,297.9
1,877.2
2,099.9
0.0 500.0 1,000.0 1,500.0 2,000.0 2,500.0
Citywide Staffing Over Time
FY 2023-24 Proposed Budget FY 2020-21 Adopted Budget FY 2019-20 Adopted Budget • FY 2023-24 FTE
Change
• +49.3 Permanent
• +11.5 As-needed
• Still about 200 short of prepandemic levels- mostly in General Fund
FINAL CHANGES:
Council Direction from Budget Study Sessions
8 Restore City Traffic
Engineer
• From TIF funding in the
SRS Fund ($162,067 and
$167,411 in FY 2023-24
and FY 2024-25)
Funds for CREST and
CREST Club
• Net zero from
reallocation of funds
Technology investments
to enhance community
safety
• Net zero from
reallocation of funds
FINAL CHANGES:
Facilitating Receipt of Grants and HSGP Funding
9 Miscellaneous Grants Fund
• SAMHSA • $1,125,000 / $375,000
• DHCS • $0 / $907,488
• Opioid Settlement • $150,440 each year
• WSCCOG •$373,125 each year
Special Revenue Source Fund
• Early childhood developer fees •
$335,250 each year
FY 2023-24, $2.0 million / FY 2024-25, $2.1 million
FINAL CHANGES:
Technical Adjustments and Corrections
10 Other Funds
• RRR Fund: $1,984,661 / $2,024,354
• correct omission of operating expense
• Pier Fund: $56,579 / ($241,731)
• position classification study
• correction in FY 2024-25 to reduce
property insurance payment
• CDBG Fund: $25,648 reduction / $26,361
• to align with allocations provided by HUD
General Fund
• Correction of $20,191 that was
inadvertently omitted from FY 2024-25
Budget Plan
FY 2023-24, $2.0 million / FY 2024-25, $1.8 million
City Fee and Fines Changes
11 New
• Non-standard fines for violations of
advertising requirement – Home Sharing
Ordinance
Adjusted
•Mortuary fees
•Application fees waived for Landmarks
Commissioners and nonprofits:
o Landmarks Designation
o Structure of Merit
•Fine increases for Tenant Relocation
Assistance
•Fine increases for repeat violations for
advertising requirement – Home Sharing
Ordinance
•Fine increases for violation of Code and
Administrative Regulations – Outdoor Parklet
Program
Contract Approvals
12 Salvation Army to support 311 and Homeless Liaison
Program
MOU with SMMUSD for operation of Playground Club
Program
BerryDunn for Preparation of the City’s Homelessness
Strategic Plan
Background
RFP
Award Recommendation
Next Steps
• Moss Adams audit
• March 2023 Council Workshop
• Plan to build on/ maximize use of existing work
• Released March 2023
• 6 submissions; 2 shortlisted vendors
• Multi-Dept. review team
BerryDunn (with ECONorthwest)
• Strategic planning track record
• Subject matter expertise
• Alignment with City needs
• Strong references
• Proposed plan to Council May 2024
• Potential extension for implementation
Homelessness Strategic Plan
Recommended Actions
Adopt Resolutions to:
• Adopt the first year and approve the second year of the FY 2023-25 Biennial Budget and Adopt the second year of the FY 2022-24 Biennial Capital Improvement Program (CIP) Budget • Establish new classifications, adopt salary rates, and approve position and classification changes • Revise to the master fee schedule and master fine schedule • Establish parking rates and permit fees for all City parking facilities • Establish Runoff Reduction Fee rate for FY 2023-24 through FY 2027-28 • Establish Gann appropriations limit
• Incorporate a project funded by SB 1: The Road Repair & Accountability Act Accept:
• Federal Substance Abuse and Mental Health Services Administration (SAMHSA) grant funds • California Department of Health Care Services (DHCS) grant funds • Westside Cities Council of Governments (WSCCOG) grant funds • Federal Continuum of Care Program renewal grant funds Authorize:
• Agreement with BerryDunn to develop Homelessness Strategic Plan • Agreement with Salvation Army for 3111 Outreach and Homeless Liaison Program • Execution of MOU with Santa Monica-Malibu Unified School District to provide supervised afterschool playtime Council Discretionary Funds:
• Direction on any discretionary fund allocations
14