FY 2022-23
Annual Budget
Public Hearing
June 21, 2022
Agenda Item 16.1
BUDGET
OVERVIEW
Budget Process Key Dates
•Council Strategic Priority Feb 28
& Goal Setting Session
•Proposed Budget May 15
Released
•Budget Study Sessions June 15 & 16
•Public Hearing June 21
Budget Development
•Transitioning from status quo to
Strategic Growth
•Council goal setting –F e b r u a r y 2022
•Department top priorities
•Long‐Range Financial Plan Updates
•Long‐term solvency
•Position and service restoration and
growth based on population and
development
•Uncertainty in the economy
•Growth in revenues
•Inflation & increases in the cost of
providing the same level of service
•Retention and Recruitment
•Competitive labor market
•Labor Negotiations
•Funding needs exceed funding capacity
•One‐time Grant Funding
Issues and Influences
•Expanded Services
•Re‐opening of Fire Station 1
•Opening Northeast Library and
Recreation Center
•Other new adds on page A‐5
•New Positions
Budget Highlights
Citywide Expenditures
Total = $899 million [Page B-16]
Utilities
25%
Police
18%
Insurance and Benefits
- Internal Service Funds
16%
Public Works
8%
Fire
8%
Administration
5%
Community
Services
4%
Economic
Development
3%
Community
Development
2%
Capital
Projects
Funds
5% Debt Service
Funds
2%
Non-
Departmental
4%
Citywide Expenditures
[Page B-8]
FY 2021-22 FY 2022-23
Department Budget Budget Change
Utilities 354,137,721 $ 229,048,462 $ (125,089,259) $ Police 152,928,298 158,036,862 5,108,564
Insurance and Benefits 137,755,288 144,389,426 6,634,138 Public Works 66,280,920 72,150,338 5,869,418 Fire 66,166,001 67,957,318 1,791,317
Administration 45,556,251 47,079,679 1,523,428 Capital Projects Funds 46,748,430 43,797,605 (2,950,825) Community Services 30,701,995 35,202,135 4,500,140 Economic Development 29,684,853 30,141,150 456,297 Non-Departmental 25,747,567 40,413,416 14,665,849 Debt Service Funds 18,499,077 16,575,652 (1,923,425) Community Development 17,563,672 13,908,839 (3,654,833) 991,770,073$ 898,700,882 $ (93,069,191) $
Citywide Revenues
Total = $804 million [Page B-18]
Utilities
25%
Insurance and
Benefits - Internal
Service Fund
18%
Public Works
6%
Administration
2%
Community
Services
3%
Economic
Development
2%
Fire
3%
Police
2%
Community
Development
2%
Non-
Department
34%
Capital
Projects
Funds
2% Debt Service
Funds
1%
Citywide Positions Summary
[Page B-5]
• 6 positions for the NE Library and Community Center
• 6 Fire Department positions for emergency dispatch,
fire investigations, fire prevention and emergency
operations
• 1 position in Public Works supporting new
development and construction projects
• 1 Program Manager focused on improvements in
venues and parking
• 2 County-funded Library positions
• 2 Municipal Utilities positions supporting utility
operations
• 4 Other positions in Administration, Community
Development, and City Clerk
• Combined with 11 grant-funded mid-year positions
• Net increase of 33 full-time positions
Authorized Full-time
Positions
Five-Year Capital Plan
by Category – $1.03 Billion
GENERAL
GOVERNMENT
$394.1M
38%
TRANSPORTATION
$360.8M
35%
UTILITIES
$279.7M
27%
(DOLLARS IN MILLIONS)
FY 2022-23 Capital Improvement
by Funding Source
CITY FUNDS
$18.7
13%
DONATIONS
$0.7
1%
MEASURE K
$4.7
3%
PUBLIC FACILITIES
FEES
$4.3
3%
STATE AND FEDERAL
GRANTS
$8.3
6%
UTILITIES
$94.8
68%
GAS TAX AND
TRANSPORTATION
$7.7
6%
$139.3 MILLION
(DOLLARS IN MILLIONS)
GENERAL
FUND
General Fund Expenditures
[Page C-1]
Police
53%
Fire
19%
Administration
7%
Public Works
7%
Community
Services
3%
Economic
Development
2%
Capital
Improvements
4%
Debt Service
2%
General Fund Revenues
[Page C-2]
Sales Tax
39%
Property Taxes
25%
Utility Users
Tax
14%
Program
Revenues
6%
Franchise Tax
6%
Business
License Tax
5%
Interfund
Reimbursements
3% Other Taxes
2%
Investment
Proceeds
1%
General Fund Balance
Dollars in Thousands [Page C-3]
FY 2021-22 FY 2022-23 %
Projected Proposed Variance Variance
Beginning Available Balance $36,916,924 $78,252,200
Projected Total Revenues 283,178,752 285,410,685 2,231,933 0.8% Projected Expenditures
Employee Services 164,875,010 182,015,360 17,140,350 10.4% Other Services 55,176,259 52,934,409 (2,241,850) -4.1% Materials & Supplies 6,131,672 5,479,868 (651,804) -10.6% Other Expenses 4,141,397 5,243,484 1,102,087 26.6% Capital Outlay 416,332 54,600 (361,732) -86.9% Loan Repayments 5,819,175 6,953,050 1,133,875 19.5% 236,559,845 252,680,771 16,120,926 6.8%
Transfer Out (50,599,681) (30,196,000) 20,403,681 -40.3% Fund Balance Restrictions 45,316,050 -
Net Annual Activity 41,335,276 2,533,914
Estimated Ending Balance $78,252,200 $80,786,114
General Fund Reserves
Dollars in Thousands
Reserve Targets
Proposed
Target at
6/30/21
Proposed
Target at
6/30/22 Change
Priority I
Working Capital 42,651 $ 47,156$ 4,504$ (16.7% of Adopted Expenses)
Known Contingencies 58,613 55,278 (3,335) Priority II ‐ Risk‐Based Reserves 72,154 77,444 5,290 173,418 179,877 6,459
FY 2020‐21 FY 2021‐22
Projected Reserve Funding Year End Projected
Working Capital $ 37,651 $ 47,156
Known Contingencies 41,826 55,278
Risk‐Based Reserves 4,983 4,983
Total Balance for Reserves at June 30 $ 84,460 $ 107,417 Long-Range Financial Plan with
FY 2022-23 Proposed Budget
[Page C-10 ]
Revenue Loss & ARPA
•City Council Budget Resolution:
•Adopt FY 2022‐23 Annual Budget
•Approve 2022‐2027 Capital
Improvement Plan
•Approve FY 2022‐23 Fee Schedule with
revisions in Exhibit 1
•Other administrative actions
•Adopt FY 2022‐23 Successor Agency
Budget
•Adopt FY 2022‐23 Parking Authority
Budget
Recommended Actions