FY 2023-24 Proposed Budget
Workshop
Mike Malone, City Manager
Rekha Nayar, Finance Director
June 6, 2023
Agenda
• Budget process
• Proposed Revenue & Expenditure
(All Funds)
• Proposed Revenue & Expenditure
(General Fund)
• Prior Year General Fund
Revenue/Expenditure Trends
• Five Year Forecast - Fund Balance
• Proposed expenditures
• Proposed FTE changes & trend
• HR vacancy update
• CIP study session
2 Proposed Budget Process to Date
• May 15:
– Delivered FY 23/24 Proposed
budget to Council (step 1)
– Uploaded Proposed budget to
City’s Website
• June 6: Budget workshop
• June 13: Public hearing of proposed
budget for council adoption (step 2)
for July 1st implementation
Annual Budget
Kickoff
March
Council Goal
Setting
April
Budget
Workshop
June 6
Public Hearing
and Adoption
June 13
Implementation
July 1st
Midyear Budget
January
Proposed Budget page 2
3 Proposed Budget Revenue &
Expenditure (All Funds)
FY 2023-24
• City totally manages 101 Funds
Proposed Budget page 13 & 14
(In Millions) Adopted
FY 2022-23
Proposed
FY 2023-24
Revenues 279.02$ 297.50$ 18.48$ 6.6% Expenditures 290.55 302.73 12.17 4.2% Total (11.53) (5.23)
Difference
Amt %
4 Proposed Budget
Expenditure (All Funds)
FY 2023-24: $302.73
Proposed Budget page 14
5 General Fund
Proposed Budget Expenditure
FY 2023-24
6 General Fund
Proposed Revenue & Expenditure
FY 2023-24
Proposed Budget page 21 & 30
7 General Fund Budget
FY 2022-23 Adopted vs FY 2023-24 Proposed
Proposed Budget page 21 & 30
8 Property Tax 37.20$ 39.95$ 2.75$ 7.4% Sales Tax 39.93 38.98 (0.95) (2.4%)
Other 33.77 35.24 1.48 4.4%
Program Revenues 19.71 18.65 (1.06) (5.4%)
Revenue (Excluding Measure P) 130.61$ 132.82$ Police 57.96 57.89 (0.07) (0.1%)
Fire 33.45 32.94 (0.51) (1.5%)
Public Works 10.04 10.43 0.39 3.9%
Planning & Development 6.59 6.62 0.03 0.5%
Administration 12.48 14.79 2.31 18.5%
Citywide 9.18 10.12 0.94 10.3%
Expenditures 129.69 132.78
Net (Revenue-Expenditure) 0.92$ 0.03$
(In Millions) FY 22-23
Adopted
FY 23-24
Proposed
Difference
AMT %
General Fund Revenue
FY 2022-23 Adopted vs FY 2023-24 Proposed
*Other: TOT, Franchise Tax, Property Transfer Tax, Water Rights, Rentals & Discovery Kingdom Proposed Budget page 21
9 Property Tax $ 24.52 $ 25.83 $ 1.31 5.3%
Property Tax in-lieu (MVLF) 12.68 14.12 1.44 11.3%
37.20 39.95 2.75 7.4%
Sales Tax 19.08 18.22 (0.86) (4.5%)
Transaction & Use Tax - Measure B 20.85 20.76 (0.09) (0.4%)
39.93 38.98 (0.95) (2.4%)
Utility User Tax 12.66 13.37 0.71 5.6%
Cannabis Tax (Measure C) 3.04 2.40 (0.64) (21.1%) Business License Tax 1.66 1.67 0.01 0.6%
Other * 16.41 17.80 1.39 8.5%
Subtotal, General
Unrestricted Revenues 110.89 114.16 3.27 2.9%
Program Revenues 19.71 18.65 (1.06) (5.4%) Total (Excluding Measure P) 130.61 132.82 2.21 1.7%
Transaction & Use Tax - Measure P 0.00 18.16 18.16
Total (Including Measure P) $ 130.61 $ 150.98 $ 20.37 15.6% General Fund Revenues
(In Millions) FY 22-23
Adopted
FY 23-24
Proposed
Difference
AMT %
General Program Fund Revenue
FY 2022-23 Adopted vs FY 2023-24 Proposed
Proposed Budget page 23
10 General Fund Revenue
FY 2023-24 Proposed
*Other: TOT, Franchise Tax, Property Transfer Tax, Water Rights, Rentals & Discovery Kingdom Proposed Budget page 21
11 General Fund Revenue trend (excluding Measure P)
FY 2019-20 to 2023-24 FY 2022-23 Adopted Revenue: $130.61M FY 2023-24 Proposed Revenue: $132.82M
Increase: $2.21M
Proposed Budget page 21
12 Sales Tax Dollar Distribution
(including Measure P)
Measure P Council Expenditure Direction
• Maintain critical city services such as keeping public spaces healthy, safe and clean
• Maintain fire protection
• Maintain emergency medical response
• Maintain crime prevention
• Address homelessness
• Address blight
• Address dumping
• Repair deteriorating neighborhood streets, roads and sidewalks • Youth priorities
Category Rate
State General Fund 3.9375%
County Portion 2.4375%
City of Vallejo Portion 2.8750%
Total Sales Tax 9.2500%
Proposed Budget page 59 & 119
13 Property Tax Dollar Distribution
Proposed Budget page 120
14 General Fund Expenditure
FY 2022-23 Adopted vs FY 2023-24 Proposed
Expenditures
Salaries & Benefits $ 105.39 $ 103.85 $ (1.53) (1.5%) Vehicle maintenance/replacement 4.01 5.20 1.19 29.7% Utilities 2.30 2.34 0.04 1.8%
Services and Supplies 12.50 14.28 1.78 14.2% Bonds, Leases and Other Costs 1.51 1.84 0.33 22.0% Infrastructure/Capital
Maintenance, including streeets 6.13 7.16 1.03 16.8% General Liability 8.38 8.84 0.46 5.5%
Citywide Overhead (10.53) (10.74) (0.21) 2.0% Total $ 129.69 $ 132.78
(In Millions) Adopted
FY 2022-23
Proposed
FY 2023-24
Difference
AMT %
15 Proposed Budget page 16
General Fund Expenditure
FY 2023-24 Proposed
Proposed Budget page 30
16 General Fund Expenditure Trends
FY 2019-20 to 2023-24
Proposed Budget page 29
17 General Fund Expenditures (by department)
FY 2019-20 to 2023-24 FY 2022-23 Adopted Expenditure: $129.69M FY 2023-24 Proposed Expenditure: $132.78M
Increase: $3.09M
Proposed Budget page 30 18
General Fund Trends
Revenue/Expenditure
Proposed Budget page 21 & 30
19 General Fund Five Year Forecast
(excluding Measure P)
(In Millions)
Revenue/Transfers in 130.61 132.82 135.33 138.23 142.88 147.88 Expenditures/Transfers Out 129.69 132.78 133.68 138.03 142.99 148.15 (Deficit)/Surplus for Year 0.92 0.03 1.65 0.20 (0.11) (0.26) Available Ending Reserves
excluding Measure P $ 21.50 $ 24.34 $ 25.99 $ 26.19 $ 26.08 $ 25.82 % Funded 17% 18% 19% 19% 18% 17%
General Fund Five Year Trends through Fiscal Year 2027-2028 FY 2027-28
Projected
FY 2023-24
Proposed
FY 2024-25
Projected
FY 2022-23
Adopted
FY 2025-26
Projected
FY 2026-27
Projected
Proposed Budget page 16 & 17
20 General Fund Five Year Forecast
(excluding Measure P)
Proposed Budget page 16 & 17
21 General Fund Balance Trends
22 Refer Pg 109 of 2022 ACFR
Proposed Budget page 16
23 Balancing General Fund Proposed
FY 2023-24
• Salary savings increased by $2.1 mil to balance the
budget
• Only one-time expenses being proposed
General Fund by Department
Increase Proposed
24 Department Amount Description
City Attorney $300,000 Legal Fees (Investigation)
Economic Development 100,000 Legal Fees (MI Fund 107)
Fire 117,000 Academy (New Hire ) PPE
Information Technology 200,000 Software Security
Planning & Development Services 350,000 Professional Services (offset by Revenue) Police 104,000 In-Car Cameras
110,000 Virtra Replacement (training simulation equipment) Public Works 190,000 Environmental Services - NPDES Permit & Stormwater Alliance 150,000 Security (City Hall & Special Events)
127,920 Recycling City cost for additional clean-up
Citywide - City Manager 120,000 Lobbying (Akin Gump Straus Hauer & Feld, LLP) 100,000 Animal Control (True-Up)
Citywide - Transfer 936,448 Fleet Replacement funding
700,000 CIP Project for 111 Amador St
Subtotal 3,705,368
872,923 Others Below $100,000
Total 4,578,291
Expenditure
Salaries and benefits 12.76 15.31 17.23 1.92
Services and supplies 1.98 2.24 3.09 0.85
Board & Commissions 0.01 0.05 0.05 0.00
Elections 0.07 0.25 0.00 (0.25)
Vehicle maintenance & replacement 0.00 0.00 0.01 0.01 Transfer Out - Capital Project 0.00 0.09 0.13 0.04
Interfund - General Liability Allocation 0.13 0.12 0.11 (0.01) Interfund allocations (5.30) (5.59) (5.84) (0.25) ARPA 1.38
Total Expenditure $ 11.03 $ 12.48 $ 14.79 Authorized Positions
Total Authorized Positions 90 92 98.5 6.5
(In Millions) FY 21-22
Actuals
FY 22-23
Adopted
FY 23-24
Proposed
Difference
AMT
General Fund - Administration
Proposed Budget page 49 - 52
** Economic Development Division was moved from P&DS in FY 22-23 Midyear Administration departments:
• Legislative
• City Manager
• City Clerk
• City Attorney
• Economic Development
• Finance
• Human Resources
• Information Technology
25 General Fund – Police Revenue/Expenditure
Proposed Budget page 33 - 35
Revenue $ 4.61 $ 4.42 $ 2.66 $ (1.76)
Expenditure
Salaries and benefits 38.55 46.29 45.04 (1.24)
Services and supplies 3.01 2.54 2.82 0.28
Vehicle maintenance & replacement 1.66 1.96 2.29 0.33 Transfer out - Capital Funds 0.00 0.00 0.07 0.07
Interfund - General Liability Allocation 4.42 7.24 7.64 0.40 Interfund allocations (0.06) (0.07) 0.02 0.09 Total Expenditure $ 47.57 $ 57.96 $ 57.89 Authorized Positions
Sworn 132 132 132 -
Non-Sworn 69 69 59 (10)
Total Authorized Positions 201 201 191 (10)
(In Millions) FY 21-22
Actuals
FY 22-23
Adopted
FY 23-24
Proposed
Difference
AMT
* Code Enforcement Division moved to P&DS in FY 22-23 Midyear 26 Lab Processing Fees 65,000$
Evidence Vehicle Storage 96,000$
Virtra Replacement 110,000
Leadership Training & Range Costs 105,000
In-Car Cameras 104,000
Total 480,000$
FY 23-24 Service and Supplies Ask
General Fund - Fire Revenue/Expenditure
Proposed Budget page 37 & 38
* 2018 SAFER Expired on 3/10/23
27 Revenue $ 6.89 $ 7.52 $ 7.50 $ (0.03)
Expenditure
Salaries and benefits 27.99 30.74 29.58 (1.16)
Services and supplies 1.47 1.34 1.52 0.18
Vehicle maintenance & replacement 1.01 1.19 1.68 0.49 Transfer out - Capital Funds 0.00 0.09 0.09 0.00
Interfund - General Liability Allocation 0.14 0.06 0.05 (0.01) Interfund allocations 0.01 0.02 0.02 0.00
ARPA 1.04
Total Expenditure $ 31.66 $ 33.45 $ 32.94 Authorized Positions
Sworn 101 100 88 (12)
Non-Sworn 8 8 8 -
Total Authorized Positions 109 108 96 (12)
(In Millions) FY 21-22
Actuals
FY 22-23
Adopted
FY 23-24
Proposed
Difference
AMT
Academy (New Hire) PPE 117,000$
OSHA PPE & PTSD Counseling Services 60,000
Total 177,000$
FY 23-24 Service and Supplies Ask
General Fund - Public Works Revenue/Expenditure
Proposed Budget page 40 - 42 28
Revenue $ 2.26 $ 3.09 $ 2.41 $ (0.68)
Expenditure
Salaries and benefits 8.02 10.46 10.41 (0.05)
Services and supplies 2.40 2.48 2.76 0.28
Vehicle maintenance & replacement 0.42 0.83 1.13 0.30 Transfer out - Capital Funds 0.04 0.10 0.06 (0.03)
Interfund - General Liability Allocation 0.93 0.93 1.01 0.08 Interfund allocations (4.77) (4.76) (4.94) (0.18) ARPA 0.05
Total Expenditure $ 7.09 $ 10.04 $ 10.43 Authorized Positions
Total Authorized Positions 74 73 73.5 0.5
(In Millions) FY 21-22
Actuals
FY 22-23
Adopted
FY 23-24
Proposed
Difference
AMT
Enviro Svcs - NPDES Permit & Stormwater
Alliance Costs
190,000$
Bldg Maint - Security & Janitorial 180,000
Recycling - Organics Procurement 127,920
Other less than $100k 64,573
Total 562,493$
FY 23-24 Service and Supplies Ask
General Fund - P&D Services Revenue/Expenditure
Proposed Budget page 44 - 46
29 Building - Professional Services & Training 355,500$ Code Enforcement 21,100
Total 376,600$
FY 23-24 Service and Supplies Ask
Revenue $ 3.41 $ 4.68 $ 5.43 $ 0.75 Expenditure
Salaries and benefits 3.75 5.29 5.51 0.22
Services and supplies 0.96 1.12 0.72 (0.40)
Vehicle maintenance & replacement 0.02 0.02 0.09 0.07 Transfer out - Capital Funds 0.25 0.25 0.26 0.02
Interfund - General Liability Allocation 0.04 0.04 0.03 0.00 Interfund allocations (0.22) (0.14) - 0.14 Total Expenditure $ 4.81 $ 6.59 $ 6.62 Authorized Positions
Total Authorized Positions 31 31 35 4
FY 21-22
Actuals
FY 22-23
Adopted
FY 23-24
Proposed
Difference
AMT
(In Millions)
Water Fund - Revenue/Expenditure
Proposed Budget page 64 & 65
30 Revenue $ 55.24 $ 54.94 $ (0.30) Expenditure
Salaries and benefits 20.00 19.62 (0.38)
Services and supplies 20.19 20.71 0.51
Pumping Operations/Power 3.26 3.31 0.06
Other Expenses 2.41 1.59 (0.82)
Debt Service 6.55 6.55 0.00
Equipment Capital Outlay 1.67 1.00 (0.67)
Capital Outlay - Pay Go 0.89 18.06 17.17
Capital Outlay - Bond Funded 9.79 6.39 (3.41)
Total Expenditure $ 64.76 $ 77.23
Authorized Positions
Water 121 121
Finance 17 18
Human Resources 1 1
Total Authorized Positions 139 140
(In Millions) FY 22-23
Adopted
FY 23-24
Proposed
Difference
AMT
Special Events Sponsorship Program (SESP)
31 • Discretionary funding of $350K being replaced
• New amount allocated $ 462K
• The program aims to foster successful high-
impact community events:
– Enhance economic development
– Encourage community participation
– Promote arts and cultural growth
– Provide a rich variety of festivities for residents and visitors.
FY 2023-24 Proposed FTE changes
Proposed Budget page 12 & 137 - 150
32 Conclusion
• City continues to maintain a
structurally balanced General Fund
budget
• Vacancy savings of $7.1 mil has been
utilized to balance the budget
• We will be requesting council
approval of the proposed budget on
June 13
• HR will be providing an update of
the vacancy trends
33 34
Citywide Vacancies 2020 - 2023
(a) Code Enforcement Division moved to Planning and Development Services Department in FY22-23 Midyear. (b) Code Enforcement Division moved from Police Department in FY22-23 Midyear. (c) Citywide total does not include City Mayor’s office.
Departments
Allocated
FT Es Vacancies Allocated
FT Es Vacancies Allocated
FT Es Vacancies Allocated
FT Es Vacancies
City Attorney 13 2 13 3 14 2 14 1
City Clerk 3 1 3 1 3 1 2 0
City Manager 18 5 18 8 16 8 16 2
ED 6 0 5 0 7 1
Finance 38 7 38 7 41 7 42 13
Fire 105 9 108 12 109 26 96 21
Housing 15 4 15 4 15 6 15 5
Human Resource 14 1 14 2 21 7 21 4
Information Technology 12 5 13 2 12 2 11.5 1.5
P&DS (a) 24 4 24 4 31 8 35 14
Police (b) 175 21 187 25 201 68 190 73
Public Works 93.5 25 93.5 25 90 21 89.5 18.5
Water 101.5 20 107.5 19 120 39 121 36
Citywide Totals (c) 618 104 639 112 673 195 660 190
City Vacancy Report
2023202220212020
As of pay period ending March
35 Citywide Vacancies 2020 - 2023
36 Citywide Separations and Hires 2020 - 2023
Year # of Separations # of Hires
2020 53 66
2021 127 77
2022 121 117
2023 40 34
37 Recruitment and Retention Challenges
• Applications per job have decreased in the public sector by 74% over the past 6 years, and by 50% in the past year alone. • Number of open jobs are up 45% in the last year
• Number of applications per open job are down by 56%
• 50% of the jobs posted are getting fewer than 10 applicants
CONTACT(S)
Rekha Nayar: [email protected]
Florita Cruz: [email protected]
Calvin Cho: [email protected]
Stephanie Sifuentes: [email protected] Shelee Loughmiller: [email protected] 38 FY 23-24 CAPITAL
IMPROVEMENT PROGRAM
Melissa Tigbao, Public Works Director
Beth Schoenberger, Water Director
Dan Sequeira, Asst. Public Works Director/City Engineer Kent Carothers, Water Engineering Manager
FY 23-24 CIP: OVERVIEW
• CIP Purpose:
– Establishes current year
transportation, water, and facility
Capital Improvement Budget
– Provides a funding guide for
prioritization of projects to
accomplish community goals over
the next five years
• General Plan Conformance
Requirement (April 17, 2023)
– State law (Government Code
Sections 65103(c) and 65401)
– April 17, 2023 Planning Commission
approval
FY23-24 CIP: Prioritization
Criteria
1. Elimination of potentially hazardous
or unsafe conditions and potential
liability
2. Compliance with regulatory
requirements and mandates
3. Replacement of high-maintenance,
inefficient or ineffective infrastructure
4. Preservation of existing assets
5. Improvement to services to the public
6. Stimulation of the local economy and
elimination of blighted conditions
7. Support of General Plan priorities
5-YEAR CIP: SUMMARY
• FY 2023/2024 New Allocations to Capital Budget
- $35M
– $3.15M in General Funds
– $4.1M in Gas Tax Funds (HUTA fund 219, SB1 fund 226)
– $2.4M in Grant Funding
– $1.8M in Special Funds
– $23.7M in Water Funds
• FY 2023/2024 to FY 2027/2028
– 156 projects in four major project categories
• Infrastructure (Streets, Transp, Other)
• Marina
• Facilities
• Water (78 projects in Water)
FY23-24 PUBLIC WORKS CIP:
SUMMARY OF NEW PROJECTS
• Solar Street Lights
• Glen Cove Parkway-Phase 2
• Glen Cove Bike Trail
• Hiddenbrooke Overpass
Improvement Project – Phase 2
• Sacramento Street Road Diet-
Phase 2
FY23-24 CIP: PROJECTS TO
LOOK FORWARD TO
• Redwood St Road Diet (Tuolumne
to Broadway)
• Bay Trail-Vine Trail Gap Closure
Project
• HSIP Pedestrian Safety
Improvements at 5 Intersections
• Sideshow Deterrents at 21
intersections
• On-going Pavement Maintenance
on local residential streets
FY23-24 CIP: PAVEMENT CONDITIONS
• Stats At a Glance:
– City has approx. 710 Lane Miles
– Overall Pavement Condition
Index (PCI) is 48 – “Poor” (P-TAP,
Feb 2022)
– Solano County average PCI is 80 –
“Very Good” (MTC, 2021)
FY23-24 CIP: STREET RELATED
PROJECTS
• $4.1M allocated to street related projects (General
Fund, Other funds)
• $2.5M of that is for potholes, local residential street maintenance, smaller scale projects, labor and
supplies
• Remainder toward larger CIP projects
• Measure P – early stages of Pavement
Management Program (PMP); update to Council
this summer
1. Robust CIP budget to tackle deferred
maintenance and replacement of infrastructure
2. Continue planned investment in pipeline
replacement projects
3. Increase investment in backlogged water
treatment plant repairs and upgrades at
Fleming Hill & Green Valley plants
4. AMI Implementation and water meter
replacements
5. Continue resiliency projects to address PG&E
power shutoffs and ensure raw water supplies
• Current pipeline replacement cycle:
450 years
• Goal: replacement cycle of 100 years
23% of Vallejo’s 475 miles of pipeline is over 70 Years Old American Water Works
Association industry
standard pipeline
replacement cycle:
75-100 years.
10 FY23-24 Water CIP:
Highlights
• Annual Water Main Replacements
• Grid Pump Improvements
• Skyview Tank Replacement
• Mare Island Improvements
• Lakes Water System Auxiliary
Pump Supply
• Gordon Valley Line Rehabilitation
Meters, $4.5M
Pipes, Dams, &
Tanks $10.3 M
Resiliency,
$2.0M
Treatment,
$6.9 M
Meters Pipes ERP Treatment
Total Capital Budget of $23.7 M
• $3.1M Pipeline Replacement Projects
• $6.9 M Treatment Plant Repairs/Upgrades
• $4.5 M Meter Replacement/Advanced Metering
• $2 M for Resiliency Projects
• $7.2 M for Dams, Reservoirs, & Pumping
Upgrades
By Fund/Water System:
• $21.1M for City System Projects
• $2.6 M for Lakes Water System Projects
• $0 M for Travis AFB
FY23-24 CIP: Water Treatment Projects
$6.9M for Water Treatment Plant Projects
• Filter Media Replacement with Structural, Electrical & Chemical Upgrades
FY23-24 CIP: Water Main Projects
$3.1M for Pipeline Replacement Program
• $1.6M in Vallejo and $1.5 in Lakes Water System
Water 5-Year CIP
FY 2024-2028:
Total $181M Projected
Major Project Categories
• Watermains
• Treatment Facilities
• Reservoirs and Tanks
• Resiliency and Supply
• Dams
• Technology
CONTACT(S)
Melissa Tigbao, PE
[email protected]
Beth Schoenberger
[email protected]