CITY OF SIGNAL HILL
STAFF REPORT
2175 Cherry Avenue • Signal
Hill, California 90755-3799
6/28/2022
AGENDA ITEM
TO:
HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM:
HANNAH SHIN-HEYDORN
CITY MANAGER
SHARON DEL ROSARIO
ADMINISTRATIVE SERVICES OFFICER/FINANCE DIRECTOR
SUBJECT:
RESOLUTION ADOPTING THE ANNUAL OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2022-23 AND RESOLUTION ESTABLISHING THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2022-23
Summary:
The City Council will consider adopting the first year of a biennial budget for Fiscal Year (FY) 2022-
23. The City Council reviewed the proposed FY 2022-23 (Year 1) Operating and Capital Budget (Operating Budget) at a budget workshop held on May 26, 2022. The Operating Budget, as presented, is structurally balanced per City policy. In addition, the City Council will consider a resolution adopting the annual appropriations limit for Year 1 known as the Gann limit.
Recommendations:
1. Adopt a resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA, ADOPTING THE ANNUAL OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2022-23
AND APPROVING THE ANNUAL OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2023-24
2. Adopt a resolution, entitled:
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SIGNAL HILL, CALIFORNIA,
APPROVING AND ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2022-23
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Fiscal Impact:
The Operating Budget reflects Year 1 General Fund estimated revenues and transfers-in totaling $32,556,291 comprised of $29,583,934 in operating revenues and $2,972,357 in non-operating revenues; and total appropriations and transfers-out in the amount of $32,556,291 in operating expenses (Attachment A). This results in a projected balanced General Fund Operating budget.
It is estimated that the General Fund unassigned fund balance will complete Year 1 at $18,884,431 and the Economic Uncertainties Fund balance will be $4,450,383, with an estimated total of $23,334,814. This amount represents approximately 72% of the General Fund budgeted expenses for Year 1.
Unused appropriations and/or revenues exceeding expenses at the end of every fiscal year revert back to fund balance. Each Fund’s fund balance can then be used for one-time expenses (nonoperating) or put aside as a reserve for future purposes. Council may consider any unused appropriations for one-time uses or funding of reserves when the final year-end audited financial results are completed for FY 2021-22, anticipated to be presented to the Council in December 2022.
The Operating Budget provides program expenditure budgets for the General Fund in addition to the Water Fund, Vehicle Replacement Fund and Special Revenue Funds.
Strategic Plan Objectives:
Goal No. 1: Ensure long-term fiscal stability.
Goal No. 6: Promote a transparent and open government.
Background:
A community’s quality of life is rooted in the effective delivery of essential municipal services to residents and businesses. Cities are the frontline in providing leadership and governance; establishing local laws; providing public safety and emergency services; delivering safe, clean, affordable water; providing recreational, social, and learning opportunities; overseeing development activities; building and maintaining public infrastructure; and identifying opportunities for reinvesting in the community. Therefore, how a city is funded, and how well it is funded, is vital to the delivery of these services and ultimately, the quality of life.
Cities are constantly dealing with the challenges associated with balancing limited resources against ongoing costs and demands of delivering essential services. Each year, priorities are established and decisions are made. A city’s budget memorializes and documents those priorities and decisions and serves as a framework to be used throughout the year. The budget is a guide and financial plan developed to implement community priorities and goals, build upon past experience and performance while anticipating new opportunities, and support continuous improvement.
Analysis:
Beginning in 2014, the City transitioned to utilizing a two-year budget format to reinforce the City’s commitment to long-term fiscal health, providing a broader overview of the City’s capacity to continue to meet the costs and demands of delivering essential services and promoting long-term strategic CITY OF SIGNAL HILL Page 2 of 15 Printed on 6/23/2022 powered by Legistar™
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to meet the costs and demands of delivering essential services and promoting long-term strategic planning, while retaining the fiscal control provided by annual budgets.
Preparation of the two-year budget is an extensive process that involves a collaborative effort beginning with the City’s documented strategic goals and objectives. The budget is then drafted and reviewed in depth at a public budget workshop. The first year is adopted by resolution and the second year is approved. In the second year, the previously approved budget is reviewed and presented with recommended updates or as operational needs have changed. This process is similar in concept to a mid-year budget review, and affords the opportunity to adjust the second year as needed, but it is not intended to be a complete re-evaluation of the City’s major goals and plans for the balance of the two-year period.
The proposed Year 1 Operating Budget was presented, reviewed, and discussed at a duly noticed budget workshop on May 26, 2022, and is now being presented for adoption.
Fiscal Year 2021-22 Review
Due to the years of prudent financial oversight and sound fiscal policies of the Council, the City was well-positioned to navigate the unprecedented COVID-19 public health and economic crises over the last two years. While the worst is hopefully behind us, we continue to closely monitor the ongoing impacts of COVID-19 while supporting a full reopening and recovery of our community.
The unprecedented nature of the pandemic and its unknown economic impacts made forecasting incoming revenues difficult. However, the passage of Signal Hill Measure R (SHR), the transaction and use (sales) tax add-on, and the City’s specific mix of retail businesses which have proven in the short-term to be pandemic-resilient, placed the City in a strong position heading into FY 2022-23 with most business sectors returning to pre-pandemic levels. The City also benefited from several federal government relief programs - the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Federal Emergency Management Agency (FEMA), and the American Rescue Plan Act (ARPA).
Moving into the latter half of FY 2021-22, staff continued to focus on bringing the City back to full capacity, delivering programs, projects, and services that contribute to the high quality of life enjoyed by residents and businesses. Highlights include:
· Infrastructure and amenities
o Completed the Well 9 upgrade
o Began construction of Well 10
o Began construction of Heritage Point Park
· Access and Engagement
o Delivered the City’s new mobile app - Signal Hill Now o Conducted the 2022 Diversity, Equity, and Inclusion Community Survey o Adopted the 2022 Commemorative Flag Schedule
o Issued over 1,500 new library cards and provided over 11,000 Wi-Fi connections o Advanced the City’s affordable housing initiatives
· Community Programs and Events
o Co-Hosted the 9/11 20th Anniversary Event: Celebration of Peace & Unity o Hosted Concerts in the Park, Movies in the Park, and seasonal special events, CITY OF SIGNAL HILL Page 3 of 15 Printed on 6/23/2022
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o Hosted Concerts in the Park, Movies in the Park, and seasonal special events, including the annual Holiday Outreach Program
o Served 50+ youth in after school programs, 100+ youth in sports programs, and 100+ youth in day camp programs
o Delivered over 1,100 boxes of fresh food to seniors and families · Public Safety
o Strengthened the City’s fireworks regulations
o Engaged in community policing activities, including coordination with the regional Homeless Outreach Support Team
o Promoted public safety through review of environmental design of proposed projects · Economic Development and Small Business Support
o Developed and implemented the COVID-19 Microbusiness Grant Program, awarding 10 $5,000 grants to micro-businesses
o Approved the Gateway Center North Specific Plan, including a remodel of Target, additional retail, and a new self-storage facility
o Facilitated Tesla’s entry into the City
· Sustainability
o One of the region’s leaders in adopting and implementing a Recycling and Organics Program
o Monitored and communicated increasing water conservation requirements Fiscal Year 2022-23 (Year 1) and Economic Outlook
Year 1 of the Biennial Budget keeps with the City’s long tradition of fiscal prudence and conservative budgeting practices, as the City focuses on the delivery of quality municipal services while proactively addressing safety and maintenance needs. In developing the Year 1 Operating Budget, staff relied on an analysis of historical performance and trends, as well as industry, economist, and news reports. While the budget reflects tempered optimism, the current global and local economies continue to face new challenges, including inflation, a raising interest rate environment, continued supply chain disruptions, the risk of new COVID variants, and the war in Ukraine. In addition, cities continue to be challenged by unfunded mandates and legislative directives.
Economic forecasts indicate the U.S. economy is still on solid ground with anticipated expansion, but at a decelerated growth rate in a return to more historical levels. These forecasts are supported by low unemployment rates, strong jobs numbers, and the roll-out of widely accessible COVID-19 therapies. However, staff continues to proceed cautiously understanding that known or unknown challenges could impact the City’s operating budget. Staff will continue to monitor and evaluate budgetary assumptions throughout the upcoming fiscal year.
Local Funds
Signal Hill Measure R (Measure SHR)
On November 3, 2020, residents approved Measure SHR, a new three quarter cent per dollar general transaction and use (sales) tax. The California Department of Tax and Fee Administration (CDTFA) began collecting the new tax on April 1, 2021. By the end of FY 2021-22, the City will have received a full year of revenue. Year 1 projects an increase in sales tax in proportion to the Bradley CITY OF SIGNAL HILL Page 4 of 15 Printed on 6/23/2022
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received a full year of revenue. Year 1 projects an increase in sales tax in proportion to the Bradley Burns 1% sales tax reflected in the budget.
American Rescue Plan Act (ARPA)
With the passage of ARPA on March 11, 2021, the Federal government allocated $350 billion in emergency funding to state, local, territorial and Tribal governments to respond to COVID-19 and its negative economic impacts. The City’s estimated allotment is approximately $2.7 million. These funds have been designated for the 33rd Street Water Main Replacement Project, included in the Year 1 Water Fund capital budget.
Consolidated Appropriations Act (CAA)
Passed by Congress on March 15, 2022, the CAA provides federal funding to local governments. The City secured $1.8 million through Senator Alan Lowenthal’s office for the Civic Center Parking Lot Improvement Project.
Long-Term Financial Forecast
Long-term forecasts help to increase transparency, encourage fiscal discipline, identify adverse trends, and promote fiscal sustainability. Financial forecasts help the Council consider the long-term costs of today’s commitments. The Year 1 Operating Budget is part of a greater whole, setting the foundation for future fiscal health. Using the FY 2020-21 actuals, the projections for FY 2021-22 and the Proposed Year 1 and Year 2 as a base, staff developed a high-level 5-year forecast to provide a generalized outlook towards future revenues, expenditures, and changes to the General Fund balance. The General Fund forecast (shown in the following chart) includes the following assumptions:
· Averaged historical annual trends, industry expert estimates, and Consumer Price Index (CPI) actuals.
· Revenues and expenditures continue at existing levels. · Measure SHR revenue.
· Increases to obligated costs.
o CalPERS Unfunded Accrued Liability (UAL)
§ Based on the CalPERS July 2020 valuation reports
o California Joint Powers Insurance Authority (CJPIA) insurance § Based on historical trends
o Retiree medical costs
§ Based on historical trends
· Other financing sources used to pay debt service expenditures. · Only General Fund balance.
· Reserve transfers for Capital Outlay based on long-range CIP model.
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Although the outlook continues to be positive with the General Fund balance predicted to increase, staff recognizes the future impacts of increasing obligated costs will need to be addressed. Each year, staff will review and refine the forecast, identifying the impact of one-time costs, analyzing economic changes and re-examining fund balance targets to ensure adequate reserves are maintained.
General Fund Overview of Year 1 Operating Budget
The General Fund includes all general tax revenues and other receipts that are not allocated by law or contractual agreement to some other fund. Expenditures include the general operating expenses and capital improvement costs which are not paid through other funds.
The Year 1 Operating Budget is balanced and reflects estimated revenues and transfers-in totaling $32,556,291 comprised of $29,583,934 in operating revenues and $2,972,357 in non-operating revenues; and total appropriations and transfers-out in the amount of $32,556,291 in operating expenses.
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General Fund Revenues
Total Year 1 General Fund revenues as shown in the chart below equal $30,563,914. This represents an increase compared to the current budget due to the performance of the pandemic-resilient businesses in Signal Hill and Measure SHR. The Year 1 proposed budgeted revenues represent a full re-opening of all sectors of the economy.
General Fund Operating & Non-Operating Revenues FY 2022-23 (Year 1) Transfers-In to the General Fund for Year 1 include:
AQMD $4,453
Asset-Seizure $210,516
Gas Tax $250,000
Measure R $24,960
Measure W $321,709
Park Development $50,000
Pipeline Removal $67,452
Planning Grants Fund $50,890
Total $979,980
Sales Tax
For Year 1, sales tax makes up approximately 72% of the City’s General Fund revenues. In preparing the revenue projections, staff relied on an analysis of actual performance and trends as well as industry and economist reports. The following chart highlights statewide performance projections for the various business segments that contribute to the City’s sales tax revenues, as provided by the City’s sales tax consultant. Overall total sales tax is forecasted to grow in Year 1 and Year 2 albeit at CITY OF SIGNAL HILL Page 7 of 15 Printed on 6/23/2022
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City’s sales tax consultant. Overall total sales tax is forecasted to grow in Year 1 and Year 2 albeit at a decelerated growth rate as compared to previous years. Measure SHR is expected to increase in proportion to the Bradley Burns 1% sales tax reflected below.
SECTORS YEAR 1
2022-23
Year 2
2023-24
Autos and Transportation 2.10% 0.00%
Building & Construction 0.90% 2.00%
Business Industry 4.80% 1.00%
Food & Drugs 2.00% 2.00%
Fuel & Service Stations -7.40% 2.00%
General Consumer Goods -1.30% -1.00%
Restaurants & Hotels 5.00% 3.00%
State & County Pools 5.90% 2.20%
Total 2.80% 0.90%
STATEWIDE SALES TAX TRENDS
as of March 2022
At a local level, and in line with the City’s philosophy of fiscal prudence and conservative budgeting practices, the following factors were incorporated into the Year 2 estimates:
· Continued expansion of the overall economy but at a decelerated growth rate. · Measure SHR.
Sales Tax Revenue Trend
17-18 18-19 19-20 20-21 21-22
Projected
Year 1
22-23
Proposed
Year 2
23-24
Proposed
Sales Tax 15,066,809 15,789,343 16,834,464 20,267,843 21,631,740 22,102,745 22,760,400 YOY % 3% 5% 7% 20% 7% 2% 3%
Property Tax
Property taxes make up approximately 7% of the City’s revenues and are projected to remain stable.
The City is considered a no/low property tax city. Property tax revenues are predominately a percentage of secured and unsecured taxable assessed values on the current property tax rolls. A second source of property tax revenue is from Vehicle License in Lieu of Fees (VLF) Adjustment Amount which is based on a percentage of City-wide taxable assessed values. Both increase annually in proportion to the growth in assessed valuation.
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Property Tax Trends
17-18 18-19 19-20 20-21 21-22
Projected
Year 1
22-23
Proposed
Year 2
23-24
Proposed
Property Tax 2,247,908 2,188,880 2,330,347 2,525,204 2,331,049 2,260,575 2,340,005 YOY % 21% -3% 6% 8% -8% -3% 4%
Oil Production Barrel Tax
Oil production taxes make up approximately 1% of the City’s revenues. The rate per barrel is based on the Producers Price Index. In Year 1 projected revenues remain flat with modest growth in Year 2.
Oil Production Barrel Tax Trend
17-18 18-19 19-20 20-21 21-22
Projected
Year 1
22-23
Proposed
Year 2
23-24
Proposed
Oil Prod Tax 425,515 510,635 460,255 283,150 314,813 314,813 321,110 YOY % -19% 20% -10% -38% 11% 0% 2%
General Fund Expenditures
Total Year 1 General Fund expenditures (excluding transfers out) as shown in the following chart equal $32,261,291. This represents a return to providing full municipal services while also including funding to address deferred maintenance, operational and infrastructure needs. Year 1 also includes increasing obligated costs related to contract services, insurance, pension obligations, and unfunded mandates. Based on anticipated revenues, adopted Year 1 expenditures were budgeted $3,332,711 higher than the prior year’s expenditures of $28,928,580. This increase includes a one-time expenditure of approximately $2 million for a major upgrade of the public safety radio system. Any available surplus funds to fund reserves will be considered by the Council at the close of the fiscal year with the reporting of the audited financial statements.
General Fund Expenditures
17-18 18-19 19-20 20-21 21-22
Projected
Year 1
22-23
Proposed
Year 2
23-24
Proposed
Expenditures 19,910,066 21,197,031 22,348,843 22,077,879 26,502,676 32,261,291 30,242,922 YOY % -2% 6% 5% -1% 20% 22% -6%
Budget Uncertainties
As in any given year, a degree of uncertainty surrounds the actual performance of the economy. The following have been identified for monitoring in Year 1. · Global and local economies continue to face new challenges, including inflation, raising interest rates, continued supply chain disruptions, the risk of new COVID variants, and the war CITY OF SIGNAL HILL Page 9 of 15 Printed on 6/23/2022
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interest rates, continued supply chain disruptions, the risk of new COVID variants, and the war in Ukraine. Locally, cities continue to be challenged by unfunded mandates and legislative directives.
· While the 2013 Public Employees’ Pension Reform Act (PEPRA) has already had positive impacts for the City’s overall pension costs, CalPERS continues to face challenges to meet demographic and discount rate actuarial assumptions, as well as shortened amortization schedules for reducing unfunded liabilities.
· The Wayfair decision regarding online sales and the distribution of use taxes via the countywide pool are expected to have an overall positive impact. However, future allocations may vary based on legislative changes relating to local tax reporting for in-state fulfillment centers.
· While SB1 and Gas Transportation taxes are budgeted to remain steady. They may be affected by potential legislation to provide relief at the gas pump for consumers which would adversely affect local governments annual tax allocations.
Capital Improvement Program (CIP)
The CIP Fund is used to account for financial resources segregated for the development, construction and improvement of City facilities, streets and roads, parks, and water infrastructure.
The Year 1 CIP includes new and existing projects, or project phases, representing an investment of $8.3 million. The City’s CIP plan maximizes the use of one-time and special revenue funds for each project, as detailed in the CIP Schedule. Below is a summary of funding sources for the proposed capital schedule. In Year 1, grant funding accounts for 16% of total CIP funding.
Grants 1,329,286
Reserve 968,990
ARPA (water project) 2,025,717
Water Fund 1,255,779
Garage/Fleet Fund 229,696
Other Sources 2,452,707
Total Capital Projects $ 8,262,175
Funding Sources
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Water Fund
The Water Fund is an enterprise fund and is used to account for operations that are financed and operated in a manner similar to a private business enterprise. The intent of the Council is that the costs (expenses, including depreciation) of providing water utility services to the public be financed or recovered primarily through user charges.
Sale of water for Year 1 is estimated at $6.5 million. This projection includes the increases that were adopted by Council in January 2020 following a Prop. 218 Hearing. Year 1 includes annual debt service to repay the Water Replenishment District (WRD) 10-year, zero percent interest loan in the amount of $1.5 million for the construction of Well No. 10 to reduce the City’s reliance on imported water. Year 1 also includes the main construction phase of the 33rd Street water main replacement project estimated to be fully funded using ARPA funds. The Water Fund Budget Summary is as follows:
Water Fund Operating Budget
Water Fund
Year 1
FY 2022-23
Proposed
Year 2
FY 2023-24
Proposed
Revenues/ARPA transfer funds 8,622,370 7,575,859
Operations/Debt Service 5,744,915 5,917,716
Capital Outlay 3,310,896 1,861,054
Special Revenue Funds
Special Revenue Funds are used to account for the revenues derived from specific revenue sources, which are legally restricted and usually required by law or administrative regulation to be accounted for in separate funds. Special Revenue Funds are distinguished from enterprise funds in that the CITY OF SIGNAL HILL Page 11 of 15 Printed on 6/23/2022
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for in separate funds. Special Revenue Funds are distinguished from enterprise funds in that the services delivered are financed by a Special Revenue Fund (such as streets) and the user does not pay for the service based on actual use.
Community Development Block Grant (CDBG) Fund
CDBG, enacted through the Housing and Community Development Act of 1974, receives and disburses CDBG monies for administration, social service programs and capital projects. The Los Angeles Community Development Commission estimates the City will receive approximately $107,502 in Year 1.
Gas Tax
Gas Tax revenues for Year 1 are estimated to be $346,806. Tax Sections 2104-2107 allocations are based on a fixed per gallon rate and are used towards General Fund street maintenance and repair expenditures. The budget has not accounted for any legislative changes to these revenues to ease the burden of rising gas prices, but staff will continue to monitor.
American Rescue Plan Act (ARPA)
With the passage of ARPA on March 11, 2021, the Federal government allocated $350 billion in emergency funding to state, local, territorial and Tribal governments to respond to the COVID-19 public health emergency and its negative economic impacts. The City’s estimated allotment is approximately $2.7 million. Although these funds are included in the proposed budget, the monies are shown in a special revenue fund in recognition of their one-time nature.
Internal Service Fund - Vehicle Replacement (Fleet Fund) The Fleet Fund is intended to replace City vehicles and provide for maintenance and repair services.
The following fleet purchases are proposed based on the City’s Vehicle Replacement Policy.
Replacement criteria: Based on annual assessment, vehicles are replaced when they have reached their end of service life or are experiencing mechanical problems requiring costly repairs.
Typical replacement schedule:
· Police: four years or 80,000 miles
· City light duty vehicles: 10 - 12 years of age
· Alternative fuel vehicles will be used as replacement when available and practical.
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Proposed Vehicle Replacement
Also included in the Year 1 Operating Budget is a CIP program to replace an existing fuel canopy at the City Yard. The fund is structured on a break-even basis where costs are allocated back to each department’s overhead budget. The Fleet Fund’s cash balance is estimated at $1.5 million at the end of Year 1 and Year 2.
Personnel Adjustments
The Year 1 Budget Personnel Summary incorporates three personnel adjustments in the Administration, Community Development, and Community Services Departments. Three reclassification adjustments resulted from a review of current administrative responsibilities and duties in the Administration and Community Development Departments, while two adjustments reflect Council direction received during the budget development process in the Administration and Community Services Departments.
1) ADM - Executive Assistant/Deputy City Clerk to Senior Deputy City Clerk 2) ADM - Administrative Assistant to Management Assistant 3) ADM - Part-Time Communications Specialist to Full-Time 4) Comm Dev - Administrative Assistant to Management Assistant 5) Comm Serv - Part-Time Senior Recreation Specialist to Full-Time Changes after the Budget Workshop
The following items were either identified at or since the Budget Workshop and are included in the final Year 1 Operating Budget:
1) Decision Package items as approved by the Council.
· ADM/CC Council Chamber AV Replacement - $81,000 one-time, $31,320 ongoing · ADM/CC Ron Settles Memorial - $8,500 one-time
· ADM/CC Mayor’s Events (State of the City, Diversity Breakfast) - $9,000 ongoing · Comm Serv DCC (Facilitator, PD/Community Engagement, Speaker Series, Mini CITY OF SIGNAL HILL Page 13 of 15 Printed on 6/23/2022
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· Comm Serv DCC (Facilitator, PD/Community Engagement, Speaker Series, Mini Cultural Showcase, Training) - $52,300 one-time
· Comm Serv Family Food Distribution Pilot Program - $22,500 one-time · Comm Serv Meals on Wheels Pilot Program - $14,000 one-time · Comm Serv 1925 21st Street Assessment - $50,000 one-time · Comm Serv Library Outdoor Public Art - $50,000 one-time · Econ Dev Environmental Preparation - $300,000 one-time · PD Public Safety Radio System Replacement - $800,000 one-time 2) Landscape and Lighting Maintenance District No. 1 updates in response to the June 14, 2022 public hearing will be amended in accordance with the staff report and adopted resolutions no later than the Mid-Year Budget Review.
3) CalRecycle grant revenues in the amount of $21,142 were awarded and corresponding expenditures related to the new organics program were added in the Public Works operating budget, resulting in a net zero impact to the budget.
4) The Economic Development division included a miscellaneous operating expenditure adjustment in the amount of $12,280.73 related to weed abatement on City-owned properties.
FY 2022-23 (Year 1) Appropriations (Gann) Limit
In November 1979, the voters of the State of California approved Proposition 4, commonly known as the Gann Initiative. The Proposition created Article XIIIB of the State Constitution placing limits on the amount of revenue that can be appropriated each year. Proposition 111 amended Proposition 4 in 1990 by allowing cities to choose their annual adjustment factors for inflation and population growth.
The Appropriations Limit is computed annually by applying the greater of two change factors to the limit from the previous year. The adjustment factor for population is determined by either the change in percentage for the City or the County of Los Angeles. For inflation, the factor consists of the percentage change in California Per Capital Income (supplied by the State Department of Finance), or the percentage change in the local assessment roll due to the addition of local non-residential new construction.
The factors used in this year’s calculation were the change in California Per Capita Personal Income and the County’s change in population. The City reserves the right to adjust the Appropriations Limit later in the year. The impact of applying these factors is to increase the City’s appropriations limit to $90,388,457. The City’s tax proceeds are substantially under the established Gann Limit for Year 1.
Conclusion
The City’s budget was prepared in a conservative and prudent manner, accounting for current and future economic conditions and indicators regarding revenue estimates and expenditures. The budget anticipates a balanced General Fund budget at the end of Year 1. The City’s prudent fiscal practices have enabled our City to achieve and maintain a positive, long-term stable financial condition.
We approached the creation of the Year 1 budget in conjunction with the adopted Strategic Plan that CITY OF SIGNAL HILL Page 14 of 15 Printed on 6/23/2022
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We approached the creation of the Year 1 budget in conjunction with the adopted Strategic Plan that is to be updated in the upcoming fiscal year. As always, the entire management team will continue seeking out opportunities to improve efficiencies, reduce costs, and respond effectively to the external economic forces that impact available resources. Staff will continue to build on the accomplishments that have resulted in the fiscal stability of the City and continue to deliver those services that provide a high quality of life to residents.
Attachments
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