Agenda Item No.
TO
CITY OF YUCAIPA
AGENDA REPORT
Honorable Mayor and City Council
N Phil white, Director of Finance
Y$yan Blackerby, Deputy Director of Finance
City Council Meeting of February 26,2024
Fiscal Year 2023-24 Mid-Year Budget lJpdate
FIIOM:
FOR:
SUBJECT:
RECOMMENDATION:
That the City Council:
l. Review the Fiscal Year 2023-24 Mid-Year Budget Update; and
2. Amend the Adopted FY 2023-24 General Fund Budget by increasing budgeted expenditures by $1,557,600; and increasing budgeted revenues and transfer-ins by $1,169,000; and
3. Amend the Adopted FY 2023-24 Fire Fund Budget by increasing budgeted expenditures by $109,000; and
4. Amend the Adopted Capital Improvement Plan by increasing budgeted expenditures by $ 1,135,000 and increasing budgeted revenues by $635,000, as well as coresponding technical transfers; and
5. Approve the procurements with Best Contracting Services, Inc. (senior center roof) and RDO Equipment Company (Chipper) in accordance with the City's Purchasing Policy; and
6. Approve the procurements with Sunstate Equipment Rental (skip loader rental), Quinn Equipment (skip loader purchase), Johnson Equipment (Battalion Chief truck) and Express Events (STARS programming) and dispense with competitive bid procedures for each as per Section 2.24.060 of the City of Yucaipa Municipal Code.
BACKGROUND:
The purpose of the Fiscal Year 2023-24 Mid-Year Budget Update (FY24 Mid-Year) is to provide a financial status update to the adopted budget and provide a basis to revise budget figures. This review is also performed to ensure that actual expenditures do not exceed legal appropriations, as approved by the City Council. Legal appropriations reflect the resources that Council has authorized in the budget for allocation.
DISCUSSION:
The Adopted Budget is a dynamic document reflecting the spending plan for the City. In lune 2023, the City Council adopted the FY 2023-24 Budget for all accounting funds of the City.
GENERAL F'TJND BTJDGET TJPDATE
The FY 2023-24 actuals are provided to provide additional analysis. The budget-to-actual comparison is updated throughout the year. As of December 31,2023, budgeted General Fund inflows compared to actual inflows are as follows:
Revenues
Property Iaxes
Sales and Use Tax
Franchise Fees
Other Revenues
Transfers-!n
AnnuaI
Budget
s 9,166,000
s 5,548,294
s 1.538,000
S 12.903,309
s 3,865,587
Thru December
3l Estimate.{
4,583,000
2,774,747
769,000
6,451,654
1,932,794
Thru December
3l Actuats
4.948.902
1,397,020
305.062
4,462,465
$
$
S
s
S
Difference fr/otes
$ 365,902
$ 11,377,1271 Monthly payments recelyed 2-3 months in arrears $ (463,939)
$ (1,989,190) $S.a M in MotorVehicle ln-Lieu Received in lanuary s - Transfers to be posted in Q4
TotalRevenuesandlranslers-ln S33,021,190 S 16,510,595 $ 11,113,449 $ (3,464,352) Property taxes, sales and use tax, and franchise fee revenue are tracking budget as receipts in the 4th quarter are proportionally greater than earlier in the year. Other revenues benefited significantly from a large receipt of Motor Vehicle In-Lieu received in January. Transfers will be posted during the 4th quarter and are anticipated to track budgeted amounts. Overall, actual revenues are closely tracking estimated revenues.
Expenditure comparisons by department for the General Fund are provided through December 2023 below:
Expenditures
City Manager
City CounciI
Engineering
Generat Services
GovernmentaI Affairs
Finance
Community Services
Community Development
Potice Services
Pubtic Works
Non-Department and
Transfers-Out
Total Expenditures and
An.nual
Budget
s 1,339,621
$ t27,427
s 7,247,157
s 1,412,588
s 716,727
s 2,122.629
s 5.642.394
$ 2,930,714
s 13,823,116
$ 2,681,642
Thru December
31 Estimated
Thru December
31 Actuals Ditference
$ L76,567
S 7,943
$ (68,304)
s 433,848
$ 66,393
$ 308,588
s 108,825
$ ts4J2t
s 1,454,639
$ L45,748
S
$
$
$
S
$
S
$
$
$
$
669,810
63,714
620,578
706,294
358,360
1,061,314
2,821,197
1,465,357
6,911,558
1,340,821
s 493,243
s 55,77L
$ 688,882
s 272,446
s 291,967
s 752,726
s 2,712,372
$ 1,310,636
$ 5,456,919
s 1,195,073
s 8,079,005 4,039,503 S 912,133 S 3,727,370
Transfers-Out $ 40,117,013 $ 20,058,506 $ t4,t42,168 $ 5,916,338
Police Services are primarily based on a contract with the County of San Bernardino which is invoiced monthly. The timing of receipt of those invoices can delay expenditure recognition. For all departments, actual costs are closely tracking the spending plan. Based on this comparison and the detail used to compile it, budget adjustments have been determined to be needed. The following increases to the General Fund expenditure budget are being requested:
Description
AdditionaI anticipated operating expenses
AdditionaI antic ipated operating expenses
Path to Batance Campaign
Fave Winds FestivaI spec iaI event expenses
AdditionaI antic ipated operating expenses
AdditionaI utitities expense
Tractor procurement
Add itiona I a rrtic ipated ope rating expenses
AdditionaI antic ipated operating expenses
AdditionaI antic ipated operating expenses
STARS Programming
AdditionaI a ntic ipated ope rating expenses
Additiorra I a lrtic ipated ope rating expenses
AdditionaI antic ipated operating expenses
Additionat anticipated operating expenses
Division
Community Center Gym (CS)
Community Center Gym (CS)
Fana nc e
SpeciaI Events (CS]
Five Winds Ranch (CS)
Non-division
Pubtic Works
Senior Services (CS)
Spec iaI Events (CS)
sTARS (CS)
sTARS (CS)
Winterfest (CS)
YPAC (CS)
YPAC (CS)
YPAC (CS)
Type
Expense
Expense
Expense
Expense
Expense
Expense
Expense
Expense
Expense
Expense
Expense
Expense
Expense
Expense
Expense
Type Addtn'l lnfo
Transfer-ln CIRA Ftexibte Spending
Reve nue
Revenue
Revenue
lncrease
$ 15,4oo.oo
$ 5,ooo.oo
$ 2o,ooo.oo
$ zts,ooo.oo
$ 1,1oo.oo
$ 40,000.00
$ tao,ooo.oo
$ 4,900.00
$ 18,ooo.oo
$ 1o,ooo.oo
$ 1,ooo,ooo.oo
$ 2,2oo.oo
$ 3o,ooo.oo
$ 2o,ooo.oo
$ G,ooo.oo
Totat: $ 1,557,600.00
In addition, the following increases to the General f'und revenue budget, including transfbr-ins, are being requested:
Description
Transfer-ln fronr Setf lnsurance Fund
Ctass registration revenue
C[ass registration revenue
Reimbursement f rom Schoo[ District
Division
Conrmunity Center Gym (CS)
Senior Services (CS)
STARS (CS)
lncrease
$ 140,ooo.oo
$ 22,000.00
$ 7,ooo.oo
$ 1,000,000.00
Tota[:s 1,169,000.00
F'IRE FTJND BI.JDGET IJPDATE
As of December 3 1 ,2023, budgeted Fire Fund inflows compared to actual inflows are as follows.
Annual
Budget
Thru
December 31
Estimated
Budget
Thru
December 31
Actuats
Revenues
Property Taxes
Sales and Use Tax
Franchise Fees
Other Revenues
Transfers-ln
4,600,000 2,300,000 s 2,664,793 364,793 Primarily received in 2 installnrents - tracking budget Difference lVotes
225,623 [icenses and Permits tracking higherthan budget - Translers to beposted in Q4
$
$
$
$
$
358,668
600,000
179,334
300,000
404,957
Total Revenues and Transfers-ln $ 5,558,668 $ 2,779,334 $ 3,069,750 $ 590,416 S
S
S
S
Actual revenues are closely tracking estimated revenues in the Fire Fund.
Expenditures
Fire Services
Transfers-Out
Annuat
Budget
S 6,157,462
s 1,833,126
Thru
December 31
Estimated
Budget
Thru
December 31
Actuals
$ 3,078,731
$ 916,563
S
S
358,627
Difference
$ 2.720,7O4 Tracking budget - timing depends on receipt of invoices $ - Transfers to beposted tn Q4
TotaI Expenditures and
Transfers-Out $ 7,ggo,5gg $ 3,995,294 $ 359,627 $ 2,72OJO4 Fire Prevention services is invoiced quarterly and while a delay in receiving invoices throws the analysis off, it is anticipated that annual costs will closely track the spending plan.
The following budget adjustments are being requested in the Fire Fund Description
Battalion Chief Velric [e
FueI
Emergency roof repair, Fire Station 3
Division Type lncrea se
Fire Services Experrse $
Fare Services Expense $
Fire Services Expense $
55,000.00
40,000.00
14,000.00
Totat: $ 109,000.00
CAPITAL IMPROVEMENT PLAN BTJDGET {JPDATT
The following budget adjustments are being requested in the Capital Improvement Plan Project Description Proiect Fund
7th Street Rehab Misc. Capitat Profects Fund (620)
7th Street Rehab Misc. Capitat Projects Fund (620)
10th Street Storm Drain Misc. Capital Projects Fund (620) 10th Street Storm Drain Misc. Capital Projects Fund (6201 Scherer Sr. Center Roof & Ftoor CDBG - Capital (600)
Scherer Sr. Center Roof & Floor CDBG - Capital (600)
Project # Type Funding Source Description
New Project Expenditure
New Project Funding Source Capitat Projects Fund (610). Transfer-ln from New Project Expenditure
New Project Funding Source CFD 98-1. Transfer-ln from
C10015 Expenditure
C10015 Funding Source CDBG Grant
lRevenue lncreasel
Expenditure lncrease /
500,000.00
(500,000.00)
485.000.00
(485,000.00)
150.000.00
(150,000.00)
The 7th Street Rehab project is a new project, and funding will come from fund balance in the Capital Projects fund.
The l0tl' Street Storm Drain project is a new project, and funding will colne from proceeds from the CFD 98-l bond refunding.
The Scherer Sr. Center Roof & Floor is an existing project to which the above amount is requested to be added. There is CDBG grant revenue identified for this purpose and will take the project total authorized budget from $203,951 to $353,951, all funded by CDBG grant funding.
PROCI.JREMENTS
City staff is requesting authorization to procure the following items
The City is currently using a tractor fbr maintenance throughout the City, but primarily at El Dorado Park. The skip loader is being rented from Sunstate Equipment Rental and the City would like to extend that rental through the fiscal year at approximately $2,500 per month.
A Skip Loader from Quinn Equipment, $140,000 - to be utilized fbr storm clean up, trash removal, trail maintenance, field renovation, and much more. To replace the current rental equipment. Quinn is the local Caterpillar dealer, and staff believes Caterpillar's superior quality, lower operating costs, fewer maintenance issues, excellent fuel efficiency, and compliance with State emissions requirements make it impracticable and uneconomical to pursue other vendors in competitive procurement procedure. Staff requests Council dispense with competitive procurement procedures as fbund in Section 2.24.060 of the City of Yucaipa Municipal Code.
This procurement will be funded through the City's risk management pool participation. Once received, the skip loader will replace the rented tractor.
A contract with Best Contractinq Services. Inc. for the Senior Center Roof, $309.800 - This Project was advertised for bids on December 21,2023. On January 25,2024, two (2) sealed bids were received and Best Contracting Services, Inc. (BCS) of Gardena, CA, is the apparent responsive low bidder. Statf has reviewed the bid documents and determined that the documents meet the requirements of the construction contract specifications. BCS has performed similar work for other agencies, and their work has been deemed satisfactory. As a result, staff recommends that the City Council award and authorize the City Manager to execute a contract to Best Contracting Services, Inc. in the amount of $309,800. This project is being funded with CDBG funding.
A Vermeer BC 1500 heavy duty woodchipper. $92.273 - to be utilized for resource management projects within the Fire Department's spere of influence from RDO Equipment. Purchase will be made as a cooperative procurement via Sourcewell.
A truck fbr the Battalion Chief - this procurement was previously authorized however the vendor could not deliver the equipment. Johnson Equipment is able to deliver the truck at a cost of $55,365.
Prosramming for the Community Services STARS proqram - this program received additional funding from the school district. This sole source procurement with Express Events will authorize an "experience" at each of seven school sites with an estimated cost of $90,000.
FISCAL IMI'ACT:
In the General Fund, the current revised budgeted outflows exceed the budgeted inflows by approximately $7.1 million. After the approval of these requested budget adjustments, this net budgeted outflows over inflows would increase to approximately $7.5 million.
In the Fire Fund, the current revised budgeted outflows exceed the budgeted inflows by approximately $2.4 million. After the approval of these requested budget adjustments, this net budgeted outflows over inflows would increase to approximately $2.5 million.
The expenditures for the new 7th Street Rehab project in the Miscellaneous Capital Projects Fund (620) will be covered with a transfer from the Capital Projects Funds (610), which currently has sufficient available positive balance. The fund balance in 610 will decrease by the amount of these additional expenditures ($500k).
The expenditures for the new l0th Street Storm Drain project in the Miscellaneous Capital Projects Fund (620) of $485,000 will be covered with a transfer from the CFD 98-l fund. This fund has this positive balance due to proceeds from the recent bond refunding.
The additional expenditures for the Scherer Senior Center Roof & Floor project in the CDBG capital projects fund is funded by CDBG funds.
Approved By