FY 2023-24
Financial Results
Presentation to City Council
Karen Chang, Director of Finance
FEBRUARY 28, 2024
AGENDA
1 General Fund Overview
2 FY 2023-24 Financial Update
(2nd Quarter)
3 Reserve & Other Considerations
4 Q&A
22 Overview of General Fund Revenues
3 General Fund Overview 1
0 20
40 60
80 100
120
140
160
2017 2018 2019 2020 2021 2022 2023 2024 Adj.
Budget
$ Millions
Fiscal Year
Transfers In Other Revenues Use of Money & Property Charges for Services Intergovernmental Licenses and Permits Franchise Fee Other Tax Transient Occupancy Tax Sales Tax Property Tax
Major Revenue Trends
4 General Fund Overview 1
Property Tax Revenues
$-
$10
$20
$30
$40
$50
$60
2017 2018 2019 2020 2021 2022 2023 2024
Millions
Fiscal Year
Sales Tax Revenues
$-
$5
$10
$15
$20
$25
2017 2018 2019 2020 2021 2022 2023 2024
Millions
Fiscal Year
Transient Occupancy Tax Revenues
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
2017 2018 2019 2020 2021 2022 2023 2024
Millions
Fiscal Year
Other Tax Revenues
$-
$1
$2
$3
$4
$5
$6
$7
$8
$9
2017 2018 2019 2020 2021 2022 2023 2024
Millions
Fiscal Year
Major Revenue Trends
5 General Fund Overview 1
Franchise Fees
$-
$1
$2
$3
$4
$5
$6
2017 2018 2019 2020 2021 2022 2023 2024
Millions
Fiscal Year
License and Permits
$-
$5
$10
$15
$20
$25
2017 2018 2019 2020 2021 2022 2023 2024
Millions
Fiscal Year
Fines and Forfeitures
$-
$2
$4
$6
$8
$10
2017 2018 2019 2020 2021 2022 2023 2024
$100,000
Fiscal Year
Intergovernmental
$-
$1
$2
$3
$4
$5
2017 2018 2019 2020 2021 2022 2023 2024
Millions
Fiscal Year
Major Revenue Trends
6 General Fund Overview 1
Charges For Services
$-
$2
$4
$6
$8
$10
$12
$14
2017 2018 2019 2020 2021 2022 2023 2024
Millions
Fiscal Year
Use of Money and Property
$(5)
$-
$5
$10
$15
$20
$25
2017 2018 2019 2020 2021 2022 2023 2024
Millions
Fiscal Year
Other Revenues
$-
$2
$4
$6
$8
$10
$12
2017 2018 2019 2020 2021 2022 2023 2024
x 100000
Fiscal Year
Transfers In
$-
$2
$4
$6
$8
$10
2017 2018 2019 2020 2021 2022 2023 2024
Millions
Fiscal Year
FY 2022-23 General Fund Revenues
7 FY 2023-24 Financial Update 2
Property Tax
37%
Sales Tax
15%
Transient
Occupancy Tax
11%
Other Tax
5%
Franchise Fees
4%
Licenses and Permits
14%
Fine and Forfeitures
0%
Intergovernmental
2%
Charges For Services
8%
Use of Money
and Property
0%
Other Revenues
0%
Transfers
4%
FY 2023-24 General Fund Adjusted Budget - Revenues
FY 2023-24 Budgeted Revenues = $143.1 million
Total Receipts through December 31 = $59.0 million (41.3%) 8 REVENUES FY 2022-23 FY2023-24
(in millions) Budget Actuals
as of 12/31
Percentage
of Budget
Budget Actuals
as of 12/31
Percentage
of Budget
Property Tax $45.8 $25.5 55.7% $48.0 $26.2 54.5%
Sales Tax $22.4 $7.9 35.3% $23.4 $7.9 33.8%
TOT $14.2 $7.4 52.1% $14.9 $5.6 37.8%
Licenses & Permits $19.4 $11.8 60.8% $17.0 $6.9 40.4%
Intergovernmental $4.3 $0.9 20.9% $4.4 $2.3 51.2%
Service Charges $8.3 $4.8 57.8% $10.2 $4.7 46.1%
All Other Revenues $16.7 $8.0 47.9% $16.5 $4.7 28.5%
Transfers In $6.1 $2.5 41.0% $8.7 $0.8 9.3%
TOTAL $137.3 $68.8 50.1% $143.1 $59.0 41.3%
FY 2023-24 Financial Update 2
Recommended
Projection
Adjustments
$2.8M $140.3M
$1.3M $49.3M
$1.4M $22.0M
$0.9M $14.0M
$4.5M $12.5M
$1.2M $5.6M
$0.2M $16.7M
$1.4M $11.6M
FY 2022-23 GF Expenditures by Department
9 FY 2023-24 Financial Update 2
NON EXPENSE/DEPT
1% OTHER
7%
CITY MANAGER
3%
FINANCE
DEPARTMENT
3%
ECD DEPARTMENT
8%
FIRE DEPARTMENT
22%
POLICE
DEPARTMENT
24%
PUBLIC WORKS
9%
LIBRARY
DEPARTMENT
5%
P&R DEPARTMENT
18%
Salary and Benefits Trends ($ millions)
10 FY 2023-24 Financial Update 2
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Total Adjusted Budget $106.7 $116.9 $120.4 $139.2 $123.8 $138.6 $143.9 Salary and Benefits $71.5 $74.7 $79.7 $85.2 $87.4 $95.4 $103.5 % of Total Adj Budget 67.0% 63.9% 66.2% 61.2% 70.6% 68.9% 71.9% FY 2023-24 General Fund Budget - Expenditures
11 FY 2023-24 Financial Update 2
FY 2023-24 FY 2023-24
Expenditures
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
Pro-rata
CalPERS
% of
budget
City Council
Payroll 196,886 63,937 32.5% 189,027 78,338 41.4% 76,679 40.6% Supplies & Services 50,560 29,758 58.9% 36,560 28,483 77.9% 28,483 77.9% Interdepartmental Charges 13,204 6,390 48.4% 43,900 21,455 48.9% 21,455 48.9% Total 260,649 100,084 38.4% 269,486 128,276 47.6% 126,617 47.0% City Clerk
Payroll 909,334 385,086 42.3% 1,001,300 399,151 39.9% 345,136 34.5% Supplies & Services 208,428 51,192 24.6% 208,428 36,637 17.6% 36,637 17.6% Interdepartmental Charges 36,686 17,978 49.0% 55,282 26,789 48.5% 26,789 48.5% Total 1,154,449 454,256 39.3% 1,265,011 462,578 36.6% 408,562 32.3% City Treasurer
Payroll 63,351 11,805 18.6% 31,230 11,680 37.4% 11,680 37.4% Supplies & Services 102,060 21,198 20.8% 102,060 44,708 43.8% 44,708 43.8% Interdepartmental Charges 2,493 1,246 50.0% 138 69 50.0% 69 50.0% Total 167,904 34,249 20.4% 133,428 56,457 42.3% 56,457 42.3% FY 2022-23
FY 2023-24 General Fund Budget - Expenditures
12 FY 2023-24 Financial Update 2
FY 2023-24 FY 2023-24
Expenditures
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
Pro-rata
CalPERS
% of
budget
City Attorney
Supplies & Services 937,808 489,962 52.2% 1,100,717 377,391 34.3% 377,391 34.3% Interdepartmental Charges 2,482 1,191 48.0% 8,108 3,939 48.6% 3,939 48.6% Total 940,290 491,153 52.2% 1,108,825 381,330 34.4% 381,330 34.4% City Manager
Payroll 2,863,694 1,513,695 52.9% 3,243,094 1,248,628 38.5% 1,069,143 33.0% Supplies & Services 2,344,542 392,169 16.7% 1,633,659 282,160 17.3% 282,160 17.3% Interdepartmental Charges 116,360 57,574 49.5% 144,372 70,771 49.0% 70,771 49.0% Total 5,324,597 1,963,437 36.9% 5,021,126 1,601,560 31.9% 1,422,074 28.3% Finance
Payroll 3,172,557 1,413,781 44.6% 3,333,330 1,323,979 39.7% 1,141,731 34.3% Supplies & Services 1,096,083 101,111 9.2% 1,047,941 80,267 7.7% 80,267 7.7% Interdepartmental Charges 136,445 66,605 48.8% 138,463 65,456 47.3% 65,456 47.3% Total 4,405,085 1,581,496 35.9% 4,519,734 1,469,702 32.5% 1,287,454 28.5% FY 2022-23
FY 2023-24 General Fund Budget - Expenditures
13 FY 2023-24 Financial Update 2
FY 2023-24 FY 2023-24
Expenditures
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
Pro-rata
CalPERS
% of
budget
Non expense/Dept
Payroll 608,000 - 0.0% - - -
Supplies & Services 1,544,698 903,046 58.5% 1,394,367 485,196 34.8% 485,196 34.8% Transfers 700,000 250,000 35.7% 500,000 - 0.0% - 0.0%
Total Non-Expense/Dept. 2,852,698 1,153,046 40.4% 1,894,367 485,196 25.6% 485,196 25.6% Human Resources
Payroll 2,104,444 914,366 43.4% 2,365,049 1,110,781 47.0% 975,636 41.3% Supplies & Services 513,299 204,604 39.9% 575,111 100,143 17.4% 100,143 17.4% Interdepartmental Charges 66,366 32,618 49.1% 55,192 26,276 47.6% 26,276 47.6% Total 2,684,109 1,151,588 42.9% 2,995,351 1,237,200 41.3% 1,102,055 36.8% FY 2022-23
FY 2023-24 General Fund Budget - Expenditures
14 FY 2023-24 Financial Update 2
FY 2023-24
Expenditures
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
Pro-rata
CalPERs
% of
budget
Economic & Comm Development
Payroll 5,749,215 2,930,605 51.0% 5,487,087 3,139,924 57.2% 2,680,128 48.8% Supplies & Services 9,477,181 2,381,792 25.1% 6,469,550 2,004,384 31.0% 2,004,384 31.0% Capital Outlay 113,400 - 0.0% 113,381 - - 0.0%
Interdepartmental Charges 269,834 131,222 48.6% 368,615 175,685 47.7% 175,685 47.7% Total 15,609,630 5,443,619 34.9% 12,438,633 5,319,993 42.8% 4,860,197 39.1% Fire
Payroll 27,312,449 17,439,241 63.9% 28,172,922 17,482,689 62.1% 15,014,506 53.3% Supplies & Services 3,657,640 632,209 17.3% 2,825,938 1,076,913 38.1% 1,076,913 38.1% Capital Outlay 400,000 - 400,000 - - 0.0%
Interdepartmental Charges 2,054,628 943,235 45.9% 2,250,984 1,101,398 48.9% 1,101,398 48.9% Total 33,424,717 19,014,685 56.9% 33,649,844 19,661,000 58.4% 17,192,817 51.1% FY 2022-23 FY 2023-24
FY 2023-24 General Fund Budget - Expenditures
15 FY 2023-24 Financial Update 2
FY 2023-24
Expenditures
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
Pro-rata
CalPERs
% of
budget
Police
Payroll 30,438,959 17,656,629 58.0% 32,464,166 18,209,039 56.1% 15,654,095 48.2% Supplies & Services 1,690,477 616,307 36.5% 1,857,124 730,501 39.3% 730,501 39.3% Interdepartmental Charges 2,381,864 1,177,860 49.5% 2,630,415 1,284,708 48.8% 1,284,708 48.8% Total 34,511,300 19,450,797 56.4% 36,951,705 20,224,247 54.7% 17,669,303 47.8% Public Works
Payroll 4,496,168 2,219,275 49.4% 4,765,838 2,612,909 54.8% 2,285,387 48.0% Supplies & Services 2,885,962 809,356 28.0% 7,020,350 1,280,217 18.2% 1,280,217 18.2% Capital Outlay 312,000 - 271,564 - - 0.0%
Interdepartmental Charges 909,575 451,538 49.6% 1,763,775 874,306 49.6% 874,306 49.6% Total 8,603,705 3,480,169 40.4% 13,821,528 4,767,432 34.5% 4,439,910 32.1% Library
Payroll 5,930,595 2,838,554 47.9% 6,505,083 3,032,800 46.6% 2,702,626 41.5% Supplies & Services 1,078,235 367,191 34.1% 1,057,204 553,497 52.4% 553,497 52.4% Interdepartmental Charges 264,914 118,771 44.8% 743,808 339,970 45.7% 339,970 45.7% Total 7,273,745 3,324,516 45.7% 8,306,095 3,926,266 47.3% 3,596,092 43.3% FY 2022-23 FY 2023-24
FY 2023-24 General Fund Budget - Expenditures
16 FY 2023-24 Financial Update 2
FY 2023-24
Expenditures
Adjusted
Budget
Actuals as of
12/31
% of
budget
Adjusted
Budget
Actuals as of
12/31
% of
budget
Pro-rata
CalPERs
% of
budget
Parks and Recreation
Payroll 16,382,265 7,959,678 48.6% 19,171,702 8,664,587 45.2% 7,784,474 40.6% Supplies & Services 5,384,639 1,836,880 34.1% 6,556,908 2,013,711 30.7% 2,013,711 30.7% Capital Outlay - - 79,112 108,750 108,750 137.5%
Interdepartmental Charges 1,106,247 550,569 49.8% 1,301,683 644,880 49.5% 644,880 49.5% Total 22,873,152 10,347,127 45.2% 27,109,406 11,431,928 42.2% 10,551,815 38.9% CIP
Transfers 3,833,270 161,864 4.2% 4,375,873 - 0.0% - 0.0% Total 3,833,270 161,864 4.2% 4,375,873 - 0.0% - 0.0%
143,919,299 68,152,087 47.4% 153,860,411 71,153,164 46.2% 63,579,879 41.3% Information Technology*
Payroll 2,127,121 918,632 43.2% 2,298,886 1,039,228 45.2% 905,176 39.4% Supplies & Services 3,104,214 766,050 24.7% 2,726,025 1,016,296 37.3% 1,016,296 37.3% Interdepartmental Charges 10,469 5,235 50.0% 12,889 6,444 50.0% 6,444 50.0% Total 5,241,804 1,689,917 32.2% 5,037,801 2,061,968 40.9% 1,927,916 38.3% * Non-General Fund: budgeted as internal service fund in Fund 785 Tota General Fund
Expenditures
FY 2022-23 FY 2023-24
Additional GF Revenue Amendment Request
Economic and Community Development $ 150,000
‒ Increase in Building Permit collected fee $150,000
Fire Department $1,275,000
– Paramedic Service Fee Increase $1,200,000
– Fire Plan Check Fee $75,000
Transfer in from ARPA $ 1,238
– Residual balance for revenue loss category $1,238
17 FY 2023-24 Financial Update 2
Additional GF Appropriations Request
Economic and Community Development $75,000
‒ Construction Coordination Consultant (2-Year contract) $75,000 Fire Department $689,600
– Contracts for Fire Plan Reviews $175,000
– Department of Health Care Services program $506,000
– Ambulance billing fees $8,600
– Upgrade 1.0 FTE Administrative Assistant I to
Management Analyst I with no fiscal impact in FY2023-24. Parks & Recreation $285,000
– One-time Contractual landscape services $125,000
– Ongoing Contractual landscape services $10,000
– Police Department building window washing services $40,000 – Purchase of Westborough Blvd privately owned parcels
along eastbound shoulders $110,000
18 FY 2023-24 Financial Update 2
Additional Non-GF Appropriations Request
1. American Rescue Plan Act Fund (201) $ 1,238
‒ Transfer residual balance for Rev Loss category to GF $1,238
2. West Park Maintenance District Fund (Fund 231) $370,700 – Adjustment to full-time payroll salaries calculation $159,800 – Adjustment to part-time payroll salaries calculation $11,100 – Adjustment to benefit calculation $199,800
3. Stonegate Ridger Maintenance Fund (Fund 232) $ 20,170 – Adjustment to full-time payroll salaries calculation $630 – Adjustment to benefit calculation $19,540
4. Willow Gardens Maintenance Fund (Fund 233) $ 4,350
– Adjustment to full-time payroll salaries calculation $1,450 – Adjustment to benefit calculation $2,900
19 FY 2023-24 Financial Update 2
Additional Non-GF Appropriations Request
5. West Park Maintenance District 1 & 2 Fund (Fund 234) $ 21,450 – Adjustment to full-time payroll salaries calculation $1,240 – Adjustment to benefit calculation $20,210
6. Developer Deposits Fund (Fund 270) $125,000
– ECD TDM Enforcement and Trip Cap Implementation $50,000 – ECD Objective Architectural Standards Updates $75,000
7. Sewer Enterprise Fund (Fund 710) $999,000
– Adjustment to full-time payroll salaries calculation $573,800 – Adjustment to benefit calculation $425,200
8. Park District Fund (Fund 720) $69,000
– Adjustment to full-time payroll salaries calculation $40,000 – Adjustment to benefit calculation $29,000
20 FY 2023-24 Financial Update 2
Additional Non-GF Appropriations Request
9. Commercial Linkage Fee (Fund 823) $300,000
– ECD Preparing sites for housing suitability $100,000
– ECD Property acquisition due diligence and negotiations $200,000
10. Storm Water Fund (Fund 740) $449,000
– Public Works: Storm line repairs identified in
Storm Drain Master Plan $150,000
– Adjustment to full-time payroll salaries calculation $172,000 – Adjustment to benefit calculation $127,000
11. Park Acquisition Fund (Fund 805) $100,000
– Parks and Rec: Parkland acquisition due diligence $100,000 21 FY 2023-24 Financial Update 2
Additional Non-GF Appropriations Request
12. PEG Equipment & Access Fund (Fund 786) $55,000
– Upgrade City Manager conference room for
Special City Council meetings $30,000
– Closed caption services for City Council meetings $25,000 22 FY 2023-24 Financial Update 2
Mid-Year Capital Improvement Plan (CIP) Request
1. SSF Shoreline Protection and Connectivity (New project sd2402) $30,000 ‒ Funding Source: East of 101 Traffic Impact Fee
‒ Funding request is for the pre-design phase of this project to fund consultant for Caltrans grant application.
2. Storm Drain Master Plan (Existing project sd2301) $500,000 – Funding Source: Infrastructure Reserve
– These funds are needed for additional storm drain cleaning required for conditional assessment.
3. Parking District Lot Rehabilitation (Existing project pf2402) $100,000 – Funding Source: Parking District Fund
– Additional funds to rehabilitate parking lots based on Engineering estimates.
This is for rehabilitation (surface seal asphalt pavement treatment and new striping) of six (6) City Public Parking lots in the downtown area. 23 FY 2023-24 Financial Update 2
Mid-Year Capital Improvement Plan (CIP) Request
4. Adaptive Traffic Control System (Existing project tr1901) $100,000 ‒ Funding Source: Citywide Traffic Impact Fee
‒ Additional funds requested for plan, design, and implementation of adaptive traffic control in West of 101.
5. Junipero Serra Class 4 Bike Lanes (New project tr2414) $50,000 – Funding Source: Citywide Traffic Impact Fee
– Additional funding is required for the TDA Grant match.
6. Colma/SSF: El Camino Real Bicycle and Pedestrian Improvement Project (PSR_PDS) and (PAED) (New project tr2415) $100,000 – Funding Source: Citywide Traffic Impact Fee
– Opportunity to follow through on part of the Bike/Ped Master Plan.
Colma is leading the project and has secured a TA Grant. Caltrans asked to further previous project extends to Hickey Blvd & ECR for project effectiveness/continuity.
24 FY 2023-24 Financial Update 2
Mid-Year Capital Improvement Plan (CIP) Request
7. Caltrain Station Enhancement/Karyl Matsumoto Plaza
(Existing project st1603) $120,000
‒ New Funding Source: Park Construction Fees
‒ Benefits Agreement for 200 Airport. It includes ongoing maintenance of the new plaza and contributions to construction that included $120,000 payment for plaza improvements.
8. Sewer Master Plan (Existing Project ss1801) $100,000 – Funding Source: East of 101 Sewer Impact Fees
– These funds will be used for additional design costs to update sewer model and report.
9. Broadband Fiber Optic Expansion (Existing Project pf2210) $289,332 – Funding Source: American Rescue Plan Act (ARPA)
– These funds will be used for installation of fiber optic cables in new City-owned conduits from 550 North Canal to Skyline Blvd in the Westborough Area to provide the middle mile for the carriers to connect to the last mile in the Westborough area. 25
FY 2023-24 Financial Update 2
Consolidating Projects
10. Citywide School Traffic Calming Improvement Project ($600,000) ‒ Original-existing project tr2405
‒ Funding Source: Citywide Traffic Impact Fee
‒ This project will be combined with existing project st2402. The funding source will still be Citywide traffic Impact fee. This will be an additional funding source to existing project st2402 (2024 Surface Seal Project).
11. 2024 Surface Seal Project (Existing project st2402) $600,000 – New/Additional Funding Source: Citywide Traffic Impact Fee – Requesting Citywide Traffic Impact Fee as an additional funding source for this project. Combining tr2405 (Citywide School Traffic Calming Improvement project) to st2402. The funds will be utilized for the traffic calming improvements and tracked accordingly.
26 FY 2023-24 Financial Update 2
Remove Funding From Existing Project
12. Transit Village Park (Existing project pk2101) ($2,000,000) ‒ Funding Sources: Park Land Acquisition Fee and Park Land Construction ‒ Alternative sites for a park are still being considered. Funding is not needed currently. Should a site be found, funding will be requested from the City Council separately.
27 FY 2023-24 Financial Update 2
American Rescue Plan Act (ARPA)
Reserve and Other Considerations 3
28 City Reserves (As of June 30, 2023)
Reserve & Other Considerations 3
29 General Reserves (20%) $29,298,000
Pension Stabilization Reserves 5,596,000
Infrastructure Reserves 8,194,000
Total Reserve Levels $43,088,000
Available Unassigned GF Fund Balance 20,344,000
Reserves & Surplus Fund Balance $63,432,000
Infrastructure Reserve Activities and Balance
Reserve & Other Considerations 3
30 Item Amount
FY2022-23 Balance $20,229,000
Add: Developer Contributions 250,000
Total $20,479,000
Less: YTD Appropriation
FY 2023-24 CIP project funding $4,050,000
Downpayment Assistance Program 1,617,000
Previously funded CIP projects 10,186,000
Mini-Sweeper 250,000
Restroom at the Park 200,000
Total appropriation $16,303,000
Mid-year Requests $500,000
Net IR activities after Mid-year $16,803,000
Available Reserve Balance after Mid-Year $3,676,000
Projected GF Revenue and Expenditure Summary
Reserve & Other Considerations 3
31 Reserve for Encumbrances rollover $8,661,000
Reserve for Capital Projects 3,776,000
Adopted Budget Surplus $9,000
- FY 2023-24 Net Budget Adjustments (10,771,000)
- Mid-Year Revenue Adjustments (2,749,000)
- Mid-Year Appropriation Requests (1,050,000)
Total Adjustments (14,561,000)
FY 2023-24 Projected Deficit ($2,124,000)
QUESTIONS?
Q&A 4
32