Town of Yountville
Staff Report
6550 Yount Street
Yountville, CA 94599
Agenda Item #: {{section.number}}B
Yountville Town Council Staff Report
DATE: January 16, 2024
TO: Mayor and Town Council
FROM: Kyle Batista, Financial Analyst; Celia King, Administrative Services Director PREPARED BY: Kyle Batista, Financial Analyst
RECOMMENDATION
Consider adoption of Resolution Number 24-4247 approving mid-year budget adjustments for Fiscal Year 2023/2024.
DISCUSSION/BACKGROUND
Town staff has conducted a review of the status of the Town’s Fiscal Year (FY) 2023/2024 budget as of December 31, 2023. This report is presented to recommend budget adjustments to ensure proper budget management considering unexpected revenue and expense activity after budget adoption on June 6, 2023.
Town staff has included an attachment with a table that summarizes all recommended budget adjustments.
General Fund Revenue
Town staff recommends budget adjustments for the following General Fund revenue accounts. • Increase Transient Occupancy Tax (TOT) budget amount from $7,775,000 to $8,000,000 as staff anticipates collecting more TOT revenue than originally projected. • Increase General Fund interest income budget amount from $45,000 to $75,000 due to the investments generating more interest income than originally anticipated. • Increase General Fund Refunds and Reimbursements revenue budget amount from $7,000 to $17,140 to reflect a draw from the Town’s Flexible Spending Funds available through CIRA, to cover the General Fund portion of the property insurance premium that was $10,140 more than budgeted.
o $177,462 will remain available in the Town’s Flexible Spending Funds account.
The total amount of these General Fund revenue budget adjustments is $265,140.
General Fund Expenditures
Town staff recommends budget adjustments for the following General Fund expenditure accounts. • Increase Public Works Government Buildings Property Insurance budget amount from $71,540 to $81,680 to cover the higher-than-expected annual property insurance premium. • Increase Public Works Government Buildings Equipment Maintenance budget amount from $7,000 to $20,000 for unexpected cost increases related Town Hall, Community Hall, and Portable Generator maintenance.
• Increase Town Clerk Elections budget amount from $2,500 to $27,500 to cover costs related to the Measure U Gann Limit Special Election in March 2024. • Increase Parks & Recreation Administration Postage & Printing budget from $26,300 to $32,300 to cover unexpected cost increases related to printing and mailing out Recreation Guides.
• Increase Parks & Recreation Camp Program Part-Time Salaries budget amount from $86,000 to $102,200 to cover additional staffing required due to increasing number of camp attendees.
Revenue from camp registration fees should cover this additional cost. • Increase Town Manager’s Office Other Employee Reimbursement budget amount from $1,485 to $22,485 to cover moving expenses for the Town Manager. • Increase Non-Departmental Contract Services budget amount from $125,000 to $175,000 to be earmarked for consultant services that may be needed for potential future projects.
The total amount of these General Fund expenditure budget adjustments is $141,340.
The current balance of the Assigned for Budget Contingency Fund is $573,667. Staff is requesting use of these funds to cover the requested $91,340 expenditure budget adjustments. After this requested draw-down, balance would decrease to $432,327.
• Increase Town Attorney Contract Services budget amount from $225,000 to $400,000 due to an increased level of services provided by the Town attorney this fiscal year. o Attorney services related to planning accounts are charged back to customers for the purpose of cost recovery, as outlined in the Town’s Master Fee Schedule.
Town staff is requesting the use of the Assigned for Legal Contingency Fund Balance to cover this request.
The current balance is $250,000 and this request for $175,000 would decrease the balance to $75,000.
Other Funds
Town staff recommends budget adjustments for the following budgets applicable to other funds. • Increase Fund 61 Water Utility Operations Contract Services budget amount from $90,000 to $96,000 to cover additional water testing. Existing Fund 61 Fund Balance will be utilized. • Increase Fund 23 Public Art Program Fee Fund Public Art Program Fee revenue budget amount from $5,000 to $15,000 to reflect the $10,000 payment received from the Town of Yountville Community Foundation, to cover the cost of placing additional sculptures. • Increase Fund 23 Public Art Program Fee Fund Contract Services budget amount from $21,983 to $29,983 for the costs of placing additional sculptures. • Budget transfer of $38,000 from departmental Health Insurance budgets into Fund 02 Retiree Health Insurance budget. This is essentially due to previously budgeting for the Deputy Director of HR & IT position as an active employee rather than a retiree, as well as the anticipated retirement of the Recreation Supervisor.
o This simply moves these costs from active employee health premiums to retiree medical premiums which are paid out of the Other Post-Employment Benefits (OPEB) Fund.
All proposed changes are itemized on the Resolution and can also be found in the Proposed Mid-Year Budget Adjustments FY 2023/2024 attachment that accompanies this staff report.
ENVIRONMENTAL REVIEW
Exempt per California Environmental Act (CEQA) Guideline, Section 15061(b)(3)
FISCAL IMPACT
Is there a Fiscal Impact? Yes
Is it Currently Budgeted? Yes
Where is it Budgeted? Various Departments
Is it Mandatory or Discretionary? Discretionary
Is there a Staff Resource Impact? Nominal
STRATEGIC PLAN GOAL
Is item Identified in Strategic Plan? Yes
If yes, Identify Strategic Goal and Objective. Responsible Fiscal Policy: The Town maintains its fiscal health through policies designed to maximize economic opportunities, manage expenses, and ensure prudent reserves.
Briefly Explain Relationship to Strategic Plan Goal and Objective. Presenting the Town Council with recommended budget adjustments based on a mid-year review of revenue and expenditures ensures proper budget management.