FY 2023-24 Annual Budget Public Hearing June 20, 2023Item 16.1
Budget Overview
•Council Strategic Priority Feb 15 & Goal Setting Session•Proposed Budget May 15 Released•Budget Study Session June 7 •Public Hearing June 20 Budget Process Key Dates
Budget Development•Council goal setting –February 2023•Long-Range Financial Plan Updates •Long-term solvency •Department Funding Requests•Prioritizing position and service demands within available resources
•Uncertainty in the economy•General Fund Revenues / Recession Cycles•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•Plan for future CalPERS cost increases Issues and Influences
Citywide Expenditures Total = $912 million [Page B-14] Utilities22%Police18%Insurance and Benefits -Internal Service Funds17%Fire8%Public Works7%Administration5%Community Services5%Economic Development4%Community Development1%Capital Projects Funds6%Non-Departmental3%Debt Service Funds2% Citywide Revenues Total = $876 million [Page B-16]
Utilities25%Insurance and Benefits -Internal Service Fund18%Public Works6%Community Services3%Fire3%Administration2%Community Development2%Economic Development2%Police2%Non-Department33%Capital Projects Funds3%Debt Service Funds1% •Expanded Services•Other new adds on page A-5•New Positions•Diversity, Equity & Inclusion Program•Human Resources onboarding & training expansion•Expanded employee recruitment efforts Budget Highlights
Citywide Positions Summary [Page B-5]•6 positions added during FY 2022-23•15 new proposed positions2 Fire Fighters1 DEI Program Manager2 Fire Prevention Inspectors1 ASD Finance Assistant1 MUD Quality Control Officer1 HR Sup. HR Analyst1 MUD Regulatory Compliance Officer1 Police Animal Services Officer1 PW Junior Engineer1 Police Sr. Admin. Analyst1 PW Asst. Engineer1 CDD Office Technician1 EDD Office Assistant Authorized Full-time Positions
Five-Year Capital Planby Category – $1.3 Billion
GENERAL GOVERNMENT$288.1M21%TRANSPORTATION$697.5M52%UTILITIES$368.8M27%(Dollars in millions) General Fund
General Fund ExpendituresTotal = $289.7 million [Page C-1] Police55%Fire20%Administration8%Public Works7%Community Services3%Economic Development3%Capital Improvements2%Debt Service3% General Fund RevenuesTotal = $305.3 million[Page C-2]
Sales Tax41%Property Taxes24%Utility Users Tax13%Program Revenues6%Franchise Tax6%Business License Tax5%Interfund Reimbursements3%Other Taxes2%Investment Proceeds1% General Fund BalanceDollars in Thousands [Page C-3]FY 2022-23 FY 2023-24Projected Proposed Variance % VarianceBeginning Available Balance 47,769,599$ 66,144,708$ Projected Total Revenues 304,873,702 305,323,776 450,074 0.15% Projected Expndentures Employee Services 172,231,569 193,961,944 21,730,375 12.62% Other Services 57,040,055 58,154,847 1,114,792 1.95% Materials & Supplies 6,371,305 6,190,757 (180,548) -2.83% Other Expenses 4,782,275 5,059,392 277,117 5.79% Capital Outlay 399,307 90,600 (308,707) -77.31% Loan Repayments 8,422,050 7,988,425 (433,625) -5.15%249,246,561 271,445,965 22,199,404 8.91% Transfer Out (78,776,073) (18,269,666) 60,506,407 -76.81% Fund Balance Restrictions 41,524,041 - Net Annual Activity 18,375,109 15,608,145 Estimated Ending Balance 66,144,708$ 81,752,853$ General Fund ReservesDollars in ThousandsReserve Targets Proposed Target at 6/30/22 Proposed Target at 6/30/23 Change Priority IWorking Capital 47,200$ 48,300$ 1,100$ (16.7% of Adopted Expenses)Known Contingencies 55,300 74,000 18,700 Priority II - Risk-Based Reserves 77,444 80,800 3,356 179,944 203,100 23,156 FY 2021-22 FY 2022-23Projected Reserve Funding Year End Projected Working Capital $ 47,200 $ 48,300 Known Contingencies 55,300 74,000 Risk-Based Reserves 10,800 10,800 Total Balance for Reserves at June 30 $ 113,300 $ 133,100 Long-Range Financial Plan with FY 2023-24 Proposed Budget [Page C-10 ]
•City Council Budget Resolution:•Adopt FY 2023-24 Annual Budget•Approve 2023-2028 Capital Improvement Plan•Approve FY 2023-24 Fee Schedule with revisions in Exhibit 1•Other administrative actions•Adopt FY 2023-24 Successor Agency Budget - $9.3 million•Adopt FY 2023-24 Parking Authority Budget - $6.1 million Recommended Actions