Agenda Item No. 3
CITY OF YUCAIPA
AGENDA REPORT
TO: Honorable Mayor and City Council
FROM: Raymond A. Casey, City Manager / Treasurer
61 Andrew Hamilton, Director of Finance
FOR: Joint City Council/Successor Agency to the Yucaipa Redevelopment Agency/Yucaipa Housing Authority Special Meeting of June 1, 2022 SUBJECT: 2022/2023 Draft Budget Summary
RECOMMENDATION:
That City Council:
1. Confirm and approve the use of ARPA funding for General Government Services as lost revenues due to the impacts of the COVID-19 Pandemic, including for the following:
• Police and Fire and other ARPA eligible General Government Services expenditures to properly fund annual budgets from lost revenues - FY 2021/2022 (FY 22) and FY 23; and
• Wilson III Basin Project previously approved by the City Council - FY 22; and • Rehiring previously cut frozen positions previously approved by the City Council - FY 22; and
• Essential worker stipend - FY 22; and
2. Review the 2022/2023 (FY 23) Draft Budget Summary, and provide direction to staff, as appropriate; and
That the Successor Agency to the Yucaipa Redevelopment Agency:
1. Review the 2022/2023 Draft Budget Summary, and provide direction to staff, as appropriate; and
That the Yucaipa Housing Authority:
1. Review the 2022/2023 Draft Budget Summary, and provide direction to staff, as appropriate.
DISCUSSION:
Staff is pleased to present the 2022/2023 (FY 23) Draft Budget Summary for Council/Agency/Authority consideration, review and amendment, as appropriate. This document -14-
Fiscal Year 2022/2023 Annual Draft Budget (General Fund) and Other Related Actions Meeting of June 1, 2022
is a draft and there are several areas/issues that may, based upon Council/Agency/Authority direction, require amendment to the final proposed budget document. It is staff s intention to return to the Council/Agency/Authority with a final proposed budget for adoption at the meeting of June 27, 2022. If necessary, staff is prepared to have additional Council/Agency/Authority meetings concerning the budget, if Council/Agency/Authority so desires.
When the budget returns to the Council/Agency for adoption, it will include the Capital Improvement Program (CIP) and the Pavement Management Program (PMP) as part of the final document.
The FY 23 Proposed General Fund Budget, including fire protection related activities, estimates total revenues and transfers -in in the amount of $36,358,414 which includes $2,049,824 in funding made available from the American Rescue Plan Act of 2021 (ARPA) as well as expenditures and transfers -out in the amount of $36,358,414.
Included in these draft budget figures is the require transfer from the General Fund fire protection committed fund balance for the Paramedic Fund deficit for approximately $853,310 to support operations.
This draft budget is a balanced budget with the $2.0 million in ARPA revenue for General Government Services before additional funding sources. The Proposed Budget, however, could include an additional funding source:
• $853,310 (or portion) of Paramedic services revenue from medical insurance billing revenue from the implementation of User Fees pertaining to provided Paramedic services.
This would reduce or negate the required $853,310 transfer from the Paramedic Fund to the General Fund discussed above.
With this potential funding source to offset the net costs of paramedic services, and excluding approximately $530K of one-time Munis implementation costs and excluding recent contract revisions to the Sheriff s contract, the FY 2022/2023 budget is basically balanced without ARPA funding.
For the first time, the Draft Budget includes a $1,000,000 decrease in expenditures related to how the City has historically budgeted Salaries and Benefits. In the past, Salaries have been simply and conservatively budgeted at the highest compensation level ("Top Step") for each job classification.
In reality, each year employees actually receive various levels of compensation ("steps") within the job level, potentially eventually earning their way to "Top Step" based on merit and tenure over numerous years.
Therefore, the cost of actual Salaries for every year are incurred at amounts less than the budgeted "Top Step" for the reasons discussed above. Finance Staff performed an analysis of prior years' budget vs. actual amounts and feel the proposed $1,000,000 reduction in budgeted Salaries is appropriate for the Draft FY 23 Budget. Accordingly, this budget line does not impact actual or future Salaries levels in any way as compensation is negotiated in the City's Memorandum of Understanding with respective city bargaining groups.
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Fiscal Year 2022/2023 Annual Draft Budget (General Fund) and Other Related Actions Meeting of June 1, 2022
American Rescue Plan Act (ARPA) Update
The City of Yucaipa has been awarded approximately $8 million in ARPA funding, half of which was received in June 2021 and the other half is expected to be received within the next couple months. However, the FY 22 budget already includes $2,178,220 allocated for lost revenues, $703,163 allocated to full positions either cut or frozen during the height of the COVID-19 Pandemic, and $995,000 allocated for the Wilson III Basin Project. Final Guidelines clarified and Treasury Staff recommended that cities with less than $10,000,000 in ARPA funding simply opt for the "Standard Allowance" which the City can utilize as City expenditures qualifying as govenu-nent services. Therefore, staff is now recommending that all ARPA funding be attributed to lost revenues and the following budget revisions/allocations be approved:
Total ARPA Funding $ 8,017,860
Previous Allocations
FY 22 Government Services,
including Police, Fire, and other $ 2,178,220
ARPA eligible services
Previous Frozen/Cut Positions 703,163
Wilson III Basin Project 927,000
Subtotal, Previous Allocations 3,808,383
Remaining ARPA Funding to Allocate: $4,209,477
New Allocations
FY 23 Government Services,
including Police, Fire, and other $ 2,049,824
ARPA eligible services
Essential Worker Stipend - FY 22 440,200
Other Government Services - to be
determined 1,719,453
Subtotal, New Allocations
Difference
4,209,477
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Fiscal Year 2022/2023 Annual Draft Budget (General Fund) and Other Related Actions Meeting of June 1, 2022
Capital Improvement Program
The Draft FY 23 CIP was considered and approved by City Council on May 23, 2022. The Planning Commission will also consider the CIP and make a recommendation to the City Council in June. The adopted Final CIP will be incorporated into the full budget recommended for adoption at the June 27 City Council meeting.
Essential Worker Stipend
A local emergency was adopted by the Yucaipa City Council between March 18, 2020, and March 14, 2022. As neighboring cities approved premium compensation for essential workers, it is recommended that the City Council approve a prorated $100/week for each currently active essential employee that worked during the declared local emergency in FY 22. The approximate fiscal impact is $440,200 within FY 22 from AR -PA Funding as detailed above.
Overall Fund Balance update for the General Fund
Below are the estimated Fund Balances for the respective periods based on the updated estimated actuals for FY 2021-22 and the draft FY 23 budget:
Actual Fund BaIance,June30, 2019
Actual Fund Balance, June 30,2020
Actual Fund Balance, June 30, 2021 (1)
Estimated Fund Balance, June 30, 2022
Estimated Fund Ba I a nce,June 30, 2023
Adopted Estimated Favorable/
Budget Actuals (Unfavorable)
FY 2021-22 FY 2021-22 Variance
$ 49,617,425 $ 49,617,425 $ -
$ 54,953,496 $ 54,953,496 $ -
$ 54,789,005 $ 52,371,876 $ (2,417,129) (1)
$ 51,393,990 $ 52,693,884 $ 1,299,894
$ 52,693,884 $ 52,693,884 $ -
ili AttheJanuary 24, 2022 City Council Meeting, the City Council approved a total of $6,000,000 in capital funding transfers in FY20-21 resulting from prior year's General Fund Net Revenues from the General Fund to the City's Capital Projects Fund (Fund 35) to fund future capital and other projects.
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Fiscal Year 2022/2023 Annual Draft Budget (General Fund) and Other Related Actions Meeting of June 1, 2022
Fund Balance components rollforward update for the General Fund Attached Schedule 3 contains the updated estimated components of the Fund Balance for the General Fund, including Assigned and Unassigned Fund Balances, based on the updated estimated actuals for FY 2021-22 and the draft FY 23 budget.
FISCAL IMPACT:
The fiscal impact is discussed above.
Attachments:
- Attachment 1: Draft General Fund FY 23 Budget Summary - Attachment 2: Draft General Fund FY 23 Revenue/Expenditure Summary by Division - Attachment 3: Fund Balance Rollforward, General Fund
GENERAL FUND BUDGET SUMMARY (INCLUDES FIRE)
REVENUES
Taxes and Franchise Fees
Charges for Services
Licenses and Permits
Fines and Forfeitures
Use of Resources
Other Revenue
AARPA Funding - Lost Revenue
Intergovernmental
Subtotal General Fund Revenues
EXPENDITURES
Salaries and Benefits
City Staffing budget "savings" reduction (Budgeted at top step vs. Expensed at actual step)
Operating Expenditures
Contracted Services (Fire, Police, Building & Safety)
Capital Outlays
Contingency/Admin Overhead
Subtotal General Fund Expenditures
Excess (Deficiency) of Revenues over Expenditures
OTHER FINANCING SOURCES (USES)
Adopted Revised Estimated Proposed
Budget Budget Actuals Budget
2021-2022 2021-2022 2021-2022 2022-2023
$ 17,707,163 $ 17,707,163 $ 19,720,516 $ 20,317,445
2,053,963
2,250,763
2,728,311
2,727,420
923,653
923,653
1,397,257
1,048,880
20,000
26,000
36,000
36,000
308,000
283,000
262,329
544,829
706,032
811,432
782,501
1,295,364
-
-
-
2,049,824
5,900,400
5,900,400
6,126,532
6,389,000
$ 27,619,211 $ 27,902,411 $ 31,053,445 $ 34,408,762
8,610,522
8,361,736
7,795,772
9,844,997
-
-
-
(1,000,000)
7,274,354
8,024,030
4,846,746
6,859,364
15,069,436
15,069,436
16,671,089
17,646,599
736,500
905,457
499,535
187,500
101,000
60,000
10,775
200,000
$ 31,791,812
$ 32,420,659
$ 29,823,916
$ 33,738,460
$ (4,172,601) $ (4,518,248) $ 1,229,529 $ 670,303
Transfers In 1,731,417 1,712,434 1,712,434 1,949,652
Transfers Out (3,025,837) (3,512,080) (2,043,552) (1,766,645) Transfers Out Paramedic - from Fire Services Committed Fund (809,378) (732,135) (576,403) (853,310) Balance
Subtotal General Fund Other Financing Sources (Uses) $ (2,103,798) $ (2,531,781) $ (907,521) S (670,303) Budget Surplus (Deficit) (Net Change in Fund Balance) $ (6,276,398) $ (7,050,030) $ 322,008 S 0 Draft City of Yucaipa Annual Budget 2022-2023
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Rev/Exp REVENUES
Values
Div. Div. Desc.
Sum of FY 2021.22
Budget
Sum of FY 2021-22
Budget
Sum of FY 2021-22
Estimated Actuals
Sum of FY 2022-23
Proposed Budget
0000 Not Department Specific
_Adopted
25,559,578.03
_Revised
25,534,578.03
27,562,792.38
28,951,117.50
1300 General Services / City Clerk
337,249.00
337,249.00
375,253.20
376,145.00
1400 Finance
92,000.00
92,000.00
112,000.00
115,000.00
3100 Planning
121,112.00
121,112.00
166,800.00
110,362.00
3300 Building & Safety
1,089,925.00
1,089,925.00
1,689,849.24
1,211,613.76
3400 Code Enforcement
154,354.00
154,354.00
286,284.87
206,731.87
5200 Engineering
78,500.00
78,500.00
198,721.38
192,199.35
_ 5700 Parks & Facilities Maintenance
44,800.00
44,800.00
27,000.00
44,800.00
7300 Police Svcs
11,500.00
11,500.00
118,749.33
42,000.00
7200 Fire Services
128,000.00
128,000.00
571,170.77
392,000.00
7220 Oak Glen
55,448.00
55,448.00
55,448.00
55,448.00
8000 Crossing Guards
27,395.08
27,395.08
27,395.08
34,139.00
8100 Sports
41,740.00
41,740.00
22,600.00
49,000.00
8300 STARS Kid's Club
698,000.00
698,000.00
573,939.24
802,240.00
8310 Camps
130,000.00
130,000.00
115,600.00
150,000.00
8400 Aquatics
60,600.00
60,600.00
62,000.00
109,000.00
8500 Special Events
132,495.00
437,945.00
402,963.30
605,050.00
8600 Senior Services
94,632.00
94,632.00
13,300.00
94,632.00
8700 Community Center / Gymnasium
215,300.00
215,300.00
152,569.37
187,112.00
8710 YPAC
275,000.00
275,000.00
231,442.55
460,000.00
_ 8900 Teen Programs
-
-
-
5,000.00
8910 Five Winds
115.000.00
Grand Total
Rev/Exp EXPENDITURES
29,347,628.11 29,628,078.11 32,765,878.71 34, 308, 590.47 Values
Sum of FY 2021-22
Sum of FY 2021-22
Sum of IY 2021-22
Sum of FY 2022-23
Div. Div. Desc.
Adopted Budget
Revised Budget
Estimated Actuals
Proposed Budget
0000 Not Department Specific
3,835,215.00
4,244,215.00
2,619,955.00
2,619,955.00
1100 City Manager
1,090,635.23
1,144,743.24
779,674.71
1,285,862.83
1200 City Council
72,585.00
67,585.00
66,353.73
75,585.00
1300 General Services / City Clerk
326,180.13
377,082.87
351,257.32
760,066.09
1310 Mobile Home Rent Stabilization
266,221.91
266,221.91
242,738.18
285,711.46
1320 IT Division
1,355,336.14
1,379,589.76
1,239,442.66
1,849,452.01
1400 Finance
684,751.48
828,226.05
966,626.31
637,868.26
1500 Accounting Division
924,030.81
796,981.06
458,808.91
647,313.97
1900 Non -Departmental
685,744.76
642,639.03
444,182.87
766,133.74
3100 Planning
835,928.61
1,071,061.16
741,685.76
646,780.75
_ 3300 Building & Safety
551,375.00
551,375.00
1,007,110.28
809,117.50
3400 Code Enforcement
516,674.16
516,674.16
394,950.54
531,856.33
3500 Economic Development
286,719.96
286,719.96
231,354.37
281,604.64
5100 Street Maintenance
26,000.00
26,000.00
109,148.79
21,000.00
5200 Engineering
1,507,287.42
1,507,287.42
1,327,516.59
1,523,812.15
5700 Parks & Facilities Maintenance
2,571,129.84
2,571,129.84
1,994,458.24
2,438,823.68
7100 Police Svcs
11,864,327.50
11,864,327.50
11,505,780.14
12,130,256.00
_ 7200 Fire Services
4,678,701.00
4,733,492.09
4,524,109.88
5,129,411.00
_ 7220 Oak Glen
50,625.00
50,625.00
21,268.12
71,850.00
8000 Crossing Guards
1,850.00
1,175.00
500.00
925.00
8100 Sports
80,926.40
80,926.40
50,333.90
87,844.31
8300 STARS Kid's Club
773,298.85
773,298.85
567,990.21
845,941.75
8310 Camps
141,303.10
141,303.10
82,736.30
201,219.78
8400 Aquatics
174,301.71
182,418.46
163,271.69
225,594.33
_ 8500 Special Events
447,366.50
867,327.53
963,759.06
1,163,469.64
8600 Senior Services
186,292.31
186,292.31
101,928.72
270,857.41
8700 Community Center / Gymnasium
349,732.12
349,732.12
308,366.23
411,089.35
8710 YPAC
709,851.66
708,182.66
538,108.00
854,047.20
8800 Community Services Administration
423,425.37
423,425.37
432,826.34
491,478.06
8900 Teen Programs
10,301.91
10,301.91
8,045.27
14,717.16
8910 Five Winds
-
96,414.00
-
239,284.87
9999 Previous Year's Appropriations
_ 199,583.00
199,583.00
199,583.00
Grand Total
35,627,701.88
36,946,356.76
32,443,871.11
37,318,929.28
Subtotal
(3,010,338.81)
City Staffing budget "savings" reduction
(Budgeted at top step vs. Expensed at actual step)
1,000,000.00
AARPA Funding - Lost Revenue
2,010,338.81
Budget Surplus/(Deficit)
$ 0.00
Printed on 5/31/2022 Page 1 of 1
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Attachment 3 - Fund Balance Rollforward, General Fund
Actual Fund Balance, June 30, 2019
Nonspendable - Advances to Other Funds
Restricted - Miscellaneous
Committed
Emergency Contingency
Economic Stabilization
OPEB
Fire Protection
Subtotal Balance
Assigned Fund Balance
Unassigned Fund Balance
Total Actual Fund Balance, June 30, 2019
Actual Fund Balance, June 30, 2020
Nonspendable - Advances to Other Funds
Committed
Emergency Contingency
Economic Stabilization
OPEB
Fire Protection
Subtotal Balance
Assigned Fund Balance
Unassigned Fund Balance
Total Actual Fund Balance, June 30, 2020
Actual Fund Balance, June 30, 2021
Nonspendable - Advances to Other Funds
Committed
Emergency Contingency
Economic Stabilization
OPEB
Fire Protection
Subtotal Balance
Assigned Fund Balance
Unassigned Fund Balance
Total Actual Fund Balance, June 30, 2021
Estimated
Budget Actuals
Favorable/
(Unfavorable)
Variance
$
22,370,194
$
22,370,194
$
$
125,052
$
125,052
$
6,205,602
$
6,205,602
$
1,000,000
$
1,000,000
$
559,190
$
559,190
$
10,143,768
$
10,143,768
$
17,908,560
$
17,908,560
$
4,591,778
$
4,591,778
$
$
4,621,841
$
4,621,841
$
$
49,617,425
$
49,617,425
$
26,910,385
$
26,910,385
$
$
6,760,641
$
6,760,641
$
1,000,000
$
1,000,000
$
559,190
$
559,190
$
10,004,935
$
10,004,935
$
18,324,766
$
18,324,766
$
3,187,946
$
3,187,946
$
$
6,530,400
$
6,530,400
$ -
$
54,953,497
$
54,953,497
$
22,291,358
$
24,846,292
$ 2,554,934
$
4,611,873
$
4,611,873
$
1,000,000
$
1,000,000
$
565,426
$
565,426
$
9,676,305
$
9,676,305
$
15,853,604
$
15,853,604
$
2,387,911
$
2,387,911
$
14,256,132
$
9,284,069
$
54,789,005
$
52,371,876
$ (4,972,064) �1�
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Estimated Fund Balance, June 30, 2022
Nonspendable - Advances to Other Funds
Committed
Emergency Contingency
Economic Stabilization
OPEB
Fire Protection
Subtotal Balance
Assigned Fund Balance
Unassigned Fund Balance
Total Estimated Fund Balance, June 30, 2022
Estimated Fund Balance, June 30, 2023
Nonspendable - Advances to Other Funds
Committed
Emergency Contingency
Economic Stabilization
OPEB
Fire Protection
Subtotal Balance
Assigned Fund Balance
Unassigned Fund Balance
Total Estimated Fund Balance, June 30, 2023
$
24,000,168
$
24,723,591
$ 723,423
$
4,700,000
$
4,700,000
$
1,000,000
$
1,000,000
$
600,000
$
600,000
$
9,000,000
$
9,000,000
$
15,300,000
$
15,300,000
$
12,093,822
$
12,670,293
$ 576,471
$
51,393,990
$
52,693,884
$
26,623,415
$
26,623,415
$ -
$
6,900,000
$
6,900,000
$
1,000,000
$
1,000,000
$
650,000
$
650,000
$
8,300,000
$
8,300,000
$
16,850,000
$
16,850,000
$
9,220,469
$
9,220,469 (2)
$
$
52,693,884
$
52,693,884
(1) At the January 24, 2022 City Council Meeting, the City Council approved a total of $6,000,000 in capital funding transfers in FY 20-21 resulting from prior year's General Fund Net Revenues from the General Fund to the City's Capital Projects Fund (Fund 35) to fund future capital and other projects.
Also, Unassigned Fund Balance increased by approximately $2.1M due to a decrease in the Emergency Contingency from 30% to 20%.
(2) Amount includes an approximate $2.2M decrease in Unassigned Fund Balance due to an increase in the Emergency Contingency from 20% to 30%.
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