FY 2021-22
Mid-Year Budget Review
SANTA ROSA CITY COUNCIL
FEBRUARY 15, 2022
ALAN ALTON
CHIEF FINANCIAL OFFICER
Mid-Year
Budget
Review
2 Fiscal Year End 2021-22
General Fund Mid-Year Budget
Performance
General Fund Mid-Year Budget
Adjustment
Other Funds
Organizational Changes
Fiscal Year End
Close 2021-22 Adopted
Budget
Actual
Results
Revenues 162,249,550 180,218,202
Transfers In 2,665,803 3,042,977
Expenditures 174,987,442 169,333,235
Transfers Out 5,654,724 5,011,342
Net Surplus
(Deficit)
(15,726,813) 8,916,602
Excludes Non-
Operating Revenues
and Expenditures
Sales Tax $11M
ahead of budget
Hold on vacant
positions produced
$5M in savings
3 Amount
FYE 2020-21 Unaudited Reserves for Contingencies 122.8M Policy-Mandated Reserve Requirement – 17% ($30.4M)
PG&E Funds: Roseland Library- $10M, Coffey Park-
$20M, RED- $10M, Miscellaneous Projects $7M ($47M)
Committed PG&E Funds for Fiscal Stabilization ($40M)
Over/(Under) Council Policy $5.4M
Status of General Fund Reserves
4 FY 2021-22
Adopted
Budget
177.9 million of
Revenues and
Transfers In were
adopted in the Budget
Approximately $94.4
million or 53% of
overall revenues are
attributable to property
and sales taxes
5 Q2
General Fund
Revenues
$83.7 million of
Revenues and
Transfers In through
the First Quarter
(47.0%)
First installment of
Property Taxes are
received in Q2
Sales Taxes are
received on a two
month lag
6 Operating Revenues Budget Q2 Actuals Percent of
Budget
Property taxes 31,912,000 18,434,390 57.8%
Sales taxes 62,520,200 23,383,261 37.4%
Utility users tax 10,388,000 4,129,408 39.8% Other taxes 40,738,600 17,830,345 43.8%
License and permits 1,991,000 1,930,968 97.0% Charges for services 24,576,940 14,587,859 59.2% Intergovernmental 1,723,510 1,407,398 81.7% Fines and forfeitures 1,776,600 443,885 25.0% Transfers 2,295,010 1,564,593 68.2%
Total Operating Revenues 177,921,860 83,712,107 47.0% Q2 Property
Taxes
First Installment of
Property Taxes are
received in December
First Installment is
Typically 55% of annual
total
$1.5M Mid Year budget
adjustment
recommended
7 Q2 Sales
Taxes
YTD Sales Taxes
received represents 4
months
Sales Taxes are
projected to come in
ahead of budget
$6M Mid-Year budget
adjustment
recommended
8 Q2 Other
Taxes
9 Other Taxes Budget Q2 Actuals Percent of
Budget
VLF Swap 15,670,200 7,955,660 50.8%
Franchise Fees 10,653,400 3,610,870 33.9% Motor Vehicle License Fees 100,000 - 0.0% Cannabis Industry Tax 1,800,000 714,682 39.7% Business Tax 4,515,000 372,179 8.2% Real Property Transfer Tax 3,500,000 2,650,975 75.7% Occupancy Tax 4,500,000 2,525,980 56.1% Total Other Taxes 40,738,600 17,830,346 43.8% Most revenue sources
in line with expectations
RPTT revenues are
forecasted to be $5.5M
$2M Mid Year budget
adjustment
recommended for
RPTT
Q2
General Fund
Expenditures
$96.3 million of
Expenditures and
Transfers Out in the
2nd Quarter (51.8%)
Non-Operating
Expenditures
(projects) are not
included
10 Operating Expenditures Budget Q2 Actuals Percent of
Budget
City Council 1,169,785.00 387,554.38 30.9%
City Manager 2,115,190.00 878,810.56 39.4%
City Attorney 3,824,241.00 1,851,657.95 48.3%
Human Resources 2,778,452.00 1,686,247.14 53.7% Finance 10,986,983.00 5,068,237.30 45.8%
Comms & Intergovt Relations 1,378,362.00 600,199.84 43.2% Planning, Economic Development 15,052,699.00 7,832,307.45 50.6% Housing & Community Services 195,057.00 154,956.13 74.3% Recreation 9,491,797.00 4,385,889.41 45.5%
Fire 45,242,770.00 24,152,977.85 53.5%
Police 64,327,871.00 34,109,378.69 50.7%
Public Works 28,632,359.00 14,289,583.48 49.4%
Water 736,453.00 411,100.61 55.8%
Non Departmental (6,004,433.00) (5,124,679.18) 85.3% Transfers 6,132,668.00 5,628,117.98 86.8%
Total Operating Expenditures 186,060,254.00 96,312,339.59 51.8% Revenue Source Amount
Property Taxes $1,500,000
Sales Tax $6,000,000
Real Property Transfer Tax $2,000,000
Total $9,500,000
Mid-Year Budget Adjustment
General Fund Revenue
11 Description Amount
General Fund Labor Agreement Costs $7,500,000
Vacancy Credit ($1,500,000)
Staffing Changes – Partial Annual Appropriations
1.0 FTE Devlpt Review Coordinator, 1.0 FTE Building Plans Examiner, 1.0 FTE Civil Engineer Tech, 1.0 FTE Human Resources Analyst $150,000
Public Safety Building Boiler Line Replacement $500,000 Fire Department Overtime $1,550,000
Total $8,200,000
Mid-Year Budget Adjustment
General Fund Critical Needs
12 Fund Description Expenditures
1730 Information Technology $300,000
1611 Water Enterprise Fund $810,000
1621 Water Regional Enterprise Fund $560,000
Mid-Year Budget Adjustment
Labor Agreement Costs in Other Funds
13 Measure O
Special
Revenue
Funds
New Labor Agreements in all Measure O
funds require additional appropriations
Sales Tax will offset labor costs
Fire Department will appropriate fund
balance to purchase specialized
equipment as part of the Mobile Radio
Upgrade project
Measure O Citizen’s Oversight
Committee approved the Implementation
Plan amendment on January 19, 2022
14 Fund Description Revenues Expenditures
1205 Police Measure O $125,000 $125,000
1206 Fire Measure O $100,000 $100,000
1206 Fire Measure O – Equipment $650,000
1207 Violence Prevention Measure O $100,000 $100,000
Measure O Mid-Year Budget Adjustment
15 Organizational
Changes
Staffing changes will reflect new
organizational structure
Traditional Assistant City Manager role –
no longer with Department Head
responsibilities
Department Head positions will be restored
for PED and TPW
Staff positions address critical need – fill
now rather than wait until July
16 Dept Description Annual Cost
(Sal/Ben)
PED 1.0 FTE Development Review Coordinator $200,000
PED 1.0 FTE Civil Engineering Technician $132,000
PED 1.0 FTE Building Plans Examiner $142,000
PED 1.0 FTE Director of Planning & Economic
Development $225,000
TPW 1.0 FTE Director of Transportation & Public Works $275,000 HR 1.0 FTE Human Resources Analyst $175,000
Mid-Year Staffing Changes
General Fund
17 Dept Fund Description Annual Cost
(Sal/Ben)
IT 1730 Convert 1.0 FTE Senior IT Technician to 1.0
FTE Network Systems Analyst $15,000
HCS 1100 1.0 Limited Term HCS Technician $180,000
Water 1631 Convert 1.0 FTE Sr Maintenance Worker to
1.0 FTE Mechanical Technologist $16,000
Water 1631 1.0 FTE Wastewater Operator I/II $150,000
Mid-Year Staffing Changes
Non-General Fund
18 Next Steps
Council Goal Setting February 24 & 25
Fiscal Year 2022-23 Budget Study Session May 10 & 11
Fiscal Year Budget Adoption June 21, 2022
19 Questions?
20