City Council – October 24, 2023
FY 2022-23 Year-End Budget
Tonight’s Actions
• Approve changes to FY 2022-23 and FY 2023-24 Revised
Budgets and FY 2024-25 Approved Budget
• Adopt Position and Classification Changes and Salary Rates • Adopt resolution to revise the City Master Fee Schedule • Accept grant awards and renewals
• Approve contract with Exodus Recovery and funding
agreements
• Amend City’s Fiscal Policy
2 The FY 2022-23 Budget Climate:
• Significant economic uncertainty
• No-cost adjustments and investments to
improve service delivery and advance Council
priority areas
• Settlement payment for sexual abuse claims
3 FY 2022-23 Operating Budget Expenditure
Adjustments
Claim
Payments
$122.5m
Revenue to
Pay Claims
$122.5m
Self Insurance Fund
General Fund
$122.5m
Transfers +
General Fund
• Reserves
• GSH FY 2022-
23 Housing Trust - $25m
Water Fund - $15m
Workers’ Comp. -
$6.5m
Transfers to
General Fund
Payment to
Self Insurance Fund
General Fund - $4.0 million
• Timing of a one-time signing bonus
from the digital kiosk franchise
Self Insurance Fund - $122.5 million
• Payment from General Fund for claims
FY 2022-23 Revenue Adjustments
Operating Budget Expenditure Adjustments
FY 2023-24 ~$1.9 million / FY 2024-25 ~$552,000
• Reappropriation of FY 2022-23 Unspent Funds
• Funded by other sources:
o 1.0 FTE Deputy Director Special Projects in
CDD to implement high-profile projects
o Position changes in CAO to address
operational challenges
o 1.0 FTE – Library Literacy Program
Assistant for ESL Program
o Position change in DOT to address
mandated policy work
General Fund
• Reappropriation of FY 2022-23 Unspent Funds
• Changes for other funding sources
o Grant awards from U.S. Department of
Justice in support of STEP Court and CA
Library Literacy Services grant for ESL
Program
o TMP Funds to address mandated policy
work
Other Funds
Revenue Adjustments
FY 2023-24 ~($1.9 million) / FY 2024-25 ~$489,000
• Adjustment for one-time digital kiosk
signing bonus revenue received in prior
year
• Revenue funding expenditure changes:
o Position in CDD to implement highprofile projects
o Settlements and judgments to fund
position changes in CAO
General Fund
• Grant revenue from U.S. Department of
Justice in support of STEP Court and CA
Library Literacy Services grant for ESL
Program
• One-time revenue to the Vehicle
Management Fund for the replacement
of vehicles
Other Funds
FY 2022-23: $36,171
• Cemetery Fund to implement
the OSHA compliant fall
protection plan for cemetery
facilities
Capital Improvement Program Budget Adjustments
FY 2023-24: ~$1.5 million
• Cemetery Fund for maintenance
projects at the Mausoleum and
Cemetery: $250,000
• RRR Fund to purchase
replacement vehicles: $1,243,235
• Add omitted - Zoning Conformance
Review-Outdoor Commercial Uses
on Private Property fee
• Corrections
• remove separate base fees for
plan review of interior demolition
and commercial/industrial
permits
• remove hourly rates and replace
with actual cost of consultant for
Seismic Retrofit Plan and Peer
Review
City Fee Adjustments
City Planning and Building and Safety Department of Transportation • Add Hourly Rates to align with
other City and community
event fees for full cost recovery
Other Business
• Authorization to accept a grant award from the California Library Literacy Services (CLLS) for English as a Second Language program at the Library • Authorization to accept a grant award from the U.S. Department of Justice for Justice and Mental Health Collaboration Program to support the STEP Court • Authorize funding agreements with developers and existing businesses to provide funding to support coordination of large-scale development projects • Authorize an agreement with Exodus Recovery to work with the City Attorney’s Office to develop the STEP Court and start delivering services • Authorize to amend the City’s Fiscal Policy to add the plan to replenish funding leveraged to pay for legal settlements and COVID-related losses Plan to replenish
funds leveraged
to help pay for
sexual abuse
claims
Priority
Level
Fund Target
1.1 General Fund Rainy Day Fund rebuilt by 0.5% increments annually until 15% target reached
1.2 Workers’
Compensation Fund
Fund reserve level to at least 75% confidence
level (striving for 90%)
1.3 General Fund Maintain positive balance of annual Revenues and Expenditures for 5 years
1.4 Water Fund Transfer of $15 million to cover pollution remediation liability beginning in FY 2029-30
1.5 General Fund Maintain at least $21 million annual Capital Improvement Program allocation
Housing Trust Fund will receive FY 2023-24 GSH contribution from the General Fund General Fund and Housing Trust Fund reserves replenished from excess liability insurers and proceeds of the sales of General Fund-owned properties.
These conditions must be met first…
Recommended Actions
Approve:
• Changes to the FY 2022-23 and FY 2023-24 Revised Budgets, and FY 2024-25 Approved Budget • Position and classification changes, and
• Revisions to the master fee schedule
Adopt:
• Resolutions to establish new classifications, adopt salary rates • Resolution to revise to the master fee schedule to establish new and revise certain user fees and charges Accept:
• California Library Literacy Services grant funds
• U.S. Department of Justice, Bureau of Justice Assistance grant funds Authorize:
• Agreement with Exodus Recovery for the Services, Treatment & Empowerment Program • Agreement with developers and existing businesses to support coordination of large-scale development projects
• Amend City’s Fiscal Policies to add plan to replenish funds used for legal settlements and COVID-related losses 12