TO: Honorable Mayor and Council Members
FROM: M. Scott Hurlbert, City Manager
Isarel Perez-Hernandez, Finance Director
DATE: May 9, 2024
SUBJECT: Review and Direction to Staff regarding t he Preliminary Proposed Annual Operating General Funds, Enterprise Funds, Special Revenue Funds Budget, and New Capital Improvement Projects for the Fiscal Year of 2024-2025. _____________________________________________________________________________________
Recommendation:
Staff recommends that the City Council:
1) Review and Direction to Staff regarding t he Preliminary Proposed Annual Operating General Funds, Enterprise Funds, Special Revenue Funds Budget, and New Capital Improvement Projects for the Fiscal Year of 2024-2025.
2) Find that this action is not a project as defined under the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required.
Environmental Review:
The staff has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA guidelines because the propose d activity consists of a governmental fiscal/administrative activity which does not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no envir onmental review is required.
Discussion:
It is essential to address the economic challenges of inflation and potential recession in the upcoming 2024-2025 budget. This report aims to outline our strategic response to these challenges and align our budge tary priorities with the directives set forth by the council during the annual strategic planning workshop held on February 24, 2024.
Strategic Priorities:
The council has emphasized several key priorities during the strategic planning workshop, which will guide our budgetary decisions for the upcoming fiscal year:
1. City Infrastructure: Enhancing streets, utilities, and pedestrian improvements.
STAFF REPORT
City of Wasco
2. Public Safety: Investing in the police department and code compliance.
3. Community Services Center / City Facilities: Maintaining and improving essential community facilities.
4. Economic Development: Stimulating revenue growth and expansion.
5. Community Communication: Enhancing outreach through social media and opt- in notifications.
Budget Proposal Overview:
Staff will present the proposed fiscal year 2024-2025 annual department budget requests, focusing on key financial aspects such as general fund revenues, operating costs, fund balance, and significant changes in operating costs. Additionally, we will provide insights into enterprise funds, including wastewater, water, sanitation, compressed natural gas, and transit funds. Furthermore, we will introduce eight new capital projects proposed for inclusion in the CIP budget book. It is important to note that department he ads meticulously reviewed their department budgets and made requests deemed critical for achieving the council's strategic priorities. Recognizing the potential impact of inflation on revenues and expenses, department heads have adapted their budgetary req uests to reflect changing consumer habits and economic conditions.
By aligning our budgetary decisions with the council's strategic priorities, we aim to address the economic challenges ahead while continuing to support the growth and well -being of our co mmunity. This report underscores our commitment to sound financial management and strategic planning in navigating the complexities of the upcoming fiscal year.
Next Steps:
The subsequent optional budget workshop scheduled for May 10, 2024, if required, is designated for further deliberations and adjustments based on the outcomes of the initial budget workshop. Based on the direction received at the budget workshop(s), the final draft of the operating budget and capital improvement program documents will be completed. These documents will be presented to the Council for consideration and adoption at a future, regular City Council Meeting.
Fiscal Impact:
Workshop only. No fiscal impact.
City of Wasco
Department Level Budget
Proposed Fiscal Year 2024-25
Budget Workshop
Department
REV or
EXP Object Description
2023-2024
Budget
2024-2025
Budget
Increases
(Decreases)
Percent
Change Brief Comment
Department
REV or
EXP Object Description
Sum of 2021-2022
Budget
Sum of 2022-2023
Budget Sum of Percentage Sum of CODING
City Council E 52900 SPECIAL EVENTS AND PROJECTS 15,000 25,000 10,000 66.7% City Council E Total 15,000 25,000 10,000 66.7%
City Council Total - Sources Over(Under) Uses 15,000 25,000 10,000 66.7% City Manager E 50010 SALARY 355,000 376,211 21,211 6.0% Revised Staffing allocation & Merrit Increases City Manager E 50110 RETIREMENT BENEFIT 34,000 40,335 6,335 18.6% City Manager E 50112 UNFUNDED RETIREMENT BENEFIT 68,524 75,230 6,706 9.8% City Manager E 50120 GROUP INSURANCE 78,000 85,600 7,600 9.7% City Manager E Total 535,524 577,376 41,851 44.1%
City Manager Total - Sources Over(Under) Uses 535,524 577,376 41,851 44.1% City Clerk E 50010 SALARY 65,000 71,788 6,788 10.4% Revised Staffing Allocation City Clerk E Total 65,000 71,788 6,788 10.4%
City Clerk Total - Sources Over(Under) Uses 65,000 71,788 6,788 10.4% Finance & Accounting E 50010 SALARY 207,000 220,998 13,998 6.8% Merrit Increase and Allocation of Staffing Finance & Accounting E Total 207,000 220,998 13,998 6.8% Finance & Accounting Total - Sources Over(Under) Uses 207,000 220,998 13,998 6.8% Planning E 50010 SALARY 197,000 207,048 10,048 5.1% Merrit Increases Planning E Total 197,000 207,048 10,048 5.1%
Planning Total - Sources Over(Under) Uses 197,000 207,048 10,048 5.1% Non-Departmental E 50580 UTILITIES 95,000 115,000 20,000 21.1% Increase in PGE, SocalGas, Courthouse & Veteran property Non-Departmental E 52120 LIABILITY INSURANCE 47,000 53,220 6,220 13.2% Non-Departmental E Total 142,000 168,220 26,220 34.3%
Non-Departmental Total - Sources Over(Under) Uses 142,000 168,220 26,220 34.3% Engineering E 50010 SALARY 95,000 237,903 142,903 150.4% Increase Addition of Engineer and Executive Assistant Engineering E 50110 RETIREMENT BENEFIT 17,663 26,364 8,702 49.3% Engineering E 50112 UNFUNDED RETIREMENT BENEFIT 29,141 46,558 17,417 59.8% Engineering E 50120 GROUP INSURANCE 20,000 39,500 19,500 97.5% Engineering E Total 161,804 350,325 188,521 357.0%
Engineering Total - Sources Over(Under) Uses 161,804 350,325 188,521 357.0% Police E 50010 SALARY 2,240,747 2,845,935 605,188 27.0% Additional Staffing from 23 to 31 FTE Police E 50070 DEFERRED COMP PAID 75,000 125,000 50,000 66.7% Police E 50090 FICA PAID 171,417 217,714 46,297 27.0%
Police E 50110 RETIREMENT BENEFIT 750,000 335,967 414,033 -55.2% Expense was over estimated Police E 50112 UNFUNDED RETIREMENT BENEFIT 325,000 80,000 245,000 -75.4% Expense was over estimated DRAFT
1 of 4
City of Wasco
Department Level Budget
Proposed Fiscal Year 2024-25
Budget Workshop
Department
REV or
EXP Object Description
2023-2024
Budget
2024-2025
Budget
Increases
(Decreases)
Percent
Change Brief Comment
DRAFT
Police E 50120 GROUP INSURANCE 300,000 306,200 6,200 2.1% Police E 50320 FUEL 29,000 50,000 21,000 72.4%
Police E 50330 DUES 40,000 20,000 20,000 -50.0%
Police E 50460 PROFESSIONAL SERVICES 100,000 40,000 60,000 -60.0% Hiring occurred during start up Police E 52120 LIABILITY INSURANCE 150,000 193,970 43,970 29.3% Police E 52190 WORKERS COMPENSATION 69,525 114,468 44,943 64.6% Police E 50463 KC LAB & PROCESSING 8,000 30,000 22,000 275.0% Police E Total 4,258,689 4,359,254 100,565 323.5%
Police Total - Sources Over(Under) Uses 4,258,689 4,359,254 100,565 323.5% Animal Services E 50010 SALARY 137,000 142,349 5,349 3.9% Merrit increase and Pay range increase for one reclass AC position Animal Services E Total 137,000 142,349 5,349 3.9%
Animal Services Total - Sources Over(Under) Uses 137,000 142,349 5,349 3.9% Building Inspection E 50010 SALARY 248,000 256,657 8,657 3.5% Building Inspection E 50460 PROFESSIONAL SERVICES 38,640 30,000 8,640 -22.4% Building Inspection E Total 286,640 286,657 17 -18.9%
Building Inspection Total - Sources Over(Under) Uses 286,640 286,657 17 -18.9% Code Compliance E 50010 SALARY 237,000 245,797 8,797 3.7% Code Compliance E Total 237,000 245,797 8,797 3.7%
Code Compliance Total - Sources Over(Under) Uses 237,000 245,797 8,797 3.7% Streets E 50010 SALARY 438,000 510,919 72,919 16.6% Merrit Increases, Allocation of new staff and New Streets employee.
Streets E 50090 FICA PAID 33,507 39,085 5,578 16.6%
Streets E 50110 RETIREMENT BENEFIT 49,514 60,431 10,917 22.0% Streets E 50112 UNFUNDED RETIREMENT BENEFIT 95,987 124,378 28,391 29.6% Streets E 50120 GROUP INSURANCE 145,000 175,000 30,000 20.7% Streets E 52190 WORKERS COMPENSATION 39,750 56,970 17,220 43.3% Streets E Total 801,759 966,784 165,025 148.9%
Streets Total - Sources Over(Under) Uses 801,759 966,784 165,025 148.9% StormWater E 50330 DUES/SUBSCRIPTIONS/LICENSES 20,000 30,000 10,000 50.0% StormWater E 50530 EQUIPMENT REPAIR 10,000 20,000 10,000 100.0% Prepare from Rainy Season StormWater E 50540 STORM DRAIN 10,000 20,000 10,000 100.0% StormWater E Total 40,000 70,000 30,000 250.0%
StormWater Total - Sources Over(Under) Uses 40,000 70,000 30,000 250.0% Shop E 50010 SALARY 152,000 222,507 70,507 46.4% New postion and Merrit Increase Shop E 50090 FICA PAID 11,500 17,022 5,522 48.0%
2 of 4
City of Wasco
Department Level Budget
Proposed Fiscal Year 2024-25
Budget Workshop
Department
REV or
EXP Object Description
2023-2024
Budget
2024-2025
Budget
Increases
(Decreases)
Percent
Change Brief Comment
DRAFT
Shop E 50110 RETIREMENT BENEFIT 15,998 23,856 7,858 49.1% Shop E 50112 UNFUNDED RETIREMENT BENEFIT 32,746 42,129 9,383 28.7% Shop E 50120 GROUP INSURANCE 67,800 87,500 19,700 29.1% Shop E Total 280,044 393,013 112,969 201.2%
Shop Total - Sources Over(Under) Uses 280,044 393,013 112,969 201.2% Facilities Maintenance E 50010 SALARY 135,000 199,764 64,764 48.0% New postion and Merrit Increase Facilities Maintenance E 50112 UNFUNDED RETIREMENT BENEFIT 29,755 35,361 5,606 18.8% Facilities Maintenance E 50120 GROUP INSURANCE 31,100 56,000 24,900 80.1% Facilities Maintenance E Total 195,855 291,125 95,270 146.9% Facilities Maintenance Total - Sources Over(Under) Uses 195,855 291,125 95,270 146.9% Information Technology E 50010 SALARY 0 137,654 137,654 New postion and Merrit Increase Information Technology E 50090 FICA PAID 0 10,531 10,531 Information Technology E 50110 RETIREMENT BENEFIT 0 14,758 14,758 Information Technology E 50112 UNFUNDED RETIREMENT BENEFIT 0 26,063 26,063 Information Technology E 50120 GROUP INSURANCE 0 13,800 13,800 Information Technology E 50330 DUES 17,000 40,000 23,000 135.3% Information Technology E Total 17,000 242,806 225,806 135.3% Information Technology Total - Sources Over(Under) Uses 17,000 242,806 225,806 135.3% Wastewater E 50110 RETIREMENT BENEFIT 87,250 96,673 9,423 10.8% Merrit Increases Wastewater E 50112 UNFUNDED RETIREMENT BENEFIT 144,706 153,062 8,355 5.8% Wastewater E 50120 GROUP INSURANCE 115,500 130,800 15,300 13.2% Wastewater E 50320 FUEL 26,000 20,000 6,000 -23.1% Fuel efficient fleet Wastewater E 50460 PROFESSIONAL SERVICES 88,000 120,000 32,000 36.4% Specialized WW consulting treatment Wastewater E 52120 LIABILITY INSURANCE 252,000 274,000 22,000 8.7% Wastewater E 52190 WORKERS COMPENSATION 52,012 60,874 8,862 17.0% Wastewater E Total 765,468 855,408 89,941 68.9%
Wastewater Total - Sources Over(Under) Uses 765,468 855,408 89,941 68.9% Water E 50120 GROUP INSURANCE 89,000 95,000 6,000 6.7%
Water E 52120 LIABILITY INSURANCE 220,500 239,750 19,250 8.7% Water E Total 309,500 334,750 25,250 15.5%
Water Total - Sources Over(Under) Uses 309,500 334,750 25,250 15.5% Sanitation E 50010 SALARY 990,000 1,012,604 22,604 2.3% Merrit Increases and New employee allocation Sanitation E 50120 GROUP INSURANCE 294,900 318,900 24,000 8.1% Sanitation E 50320 FUEL 200,000 230,000 30,000 15.0%
3 of 4
City of Wasco
Department Level Budget
Proposed Fiscal Year 2024-25
Budget Workshop
Department
REV or
EXP Object Description
2023-2024
Budget
2024-2025
Budget
Increases
(Decreases)
Percent
Change Brief Comment
DRAFT
Sanitation E 50390 MATERIALS/SUPPLIES 100,000 120,000 20,000 20.0% Sanitation E 52120 LIABILITY INSURANCE 94,500 102,750 8,250 8.7% Sanitation E 52190 WORKERS COMPENSATION 85,983 80,602 5,381 -6.3% Sanitation E 55030 RECYCLING PROGRAM 475,000 490,000 15,000 3.2% Sanitation E Total 2,240,383 2,354,856 114,473 51.1%
Sanitation Total - Sources Over(Under) Uses 2,240,383 2,354,856 114,473 51.1% Transit E 50010 SALARY 205,000 270,465 65,465 31.9% New postion and Merrit Increase Transit E 50090 FICA PAID 15,683 20,691 5,008 31.9%
Transit E 50110 RETIREMENT BENEFIT 28,551 48,998 20,447 71.6% Transit E 50112 UNFUNDED RETIREMENT BENEFIT 35,149 53,709 18,560 52.8% Transit E 50120 GROUP INSURANCE 78,700 87,000 8,300 10.5% Transit E 50320 FUEL 75,000 60,000 15,000 -20.0% Fuel efficient fleet expected in FY25 Transit E Total 438,082 540,862 102,780 178.8%
Transit Total - Sources Over(Under) Uses 438,082 540,862 102,780 178.8% 4 of 4