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HomeMy WebLinkAboutItem No. 07 - City Manager's Proposed Budget Fiscal Years 2025 & 2026 Council PresentationFY 2024/25 & FY 2025/26 City Manager’s Proposed Budget Adoption Suzie Soren, Deputy City Manager Jeannie Fortune, Interim Director of Finance & Management Services Zuyva Ruiz, Budget Division Manager June 5, 2024 1 Aligning Strategic Goals & The Budget 2 Presentation Overview •FY 2023/24 Council Approved Budget Recap •FY 2024/25 & FY 2025/26 Proposed Budget •Recommended Revenue Budget •Recommended Expenditure Budget •Fund Balance •Proposed Capital Improvement Plan and Funding 3 FY 2023/24 Council Approved Budget 4 Fund Adopted FY 2023-24 Carryovers Strategic Initiatives Mid-Year Individual Staff Reports Appr. By MCC Total Approved FY 2023-24 Anticipated FY 2023-24 Savings Total 2023-24 Year-End Projections General Fund Mayor 305,812$ -$ -$ -$ -$ 305,812$ -$ 305,812$ City Council 1,084,346$ 7,975$ -$ -$ -$ 1,092,321$ -$ 1,092,321$ City Clerk 1,836,829$ 71,838$ -$ -$ -$ 1,908,667$ (159,847)$ 1,748,820$ Legal Services 4,309,583$ -$ -$ 1,000,000$ -$ 5,309,583$ (4,757)$ 5,304,826$ General Government 15,147,856$ 253,188$ -$ -$ -$ 15,401,045$ 603,331$ 16,004,376$ City Manager 3,019,056$ 72,546$ 336,937$ -$ -$ 3,428,539$ 11,722$ 3,440,261$ Human Resources 2,741,874$ 39,580$ -$ -$ 278,500$ 3,059,953$ (84,117)$ 2,975,837$ Finance 5,587,998$ 95,625$ -$ -$ -$ 5,683,624$ (103,468)$ 5,580,156$ Economic Development -$ -$ 498,790$ -$ -$ 498,790$ (498,790)$ -$ Special Assessment Districts 150,000$ -$ -$ -$ -$ 150,000$ (35,679)$ 114,321$ Capital Improvement -$ 950,618$ -$ -$ 864,908$ 1,815,526$ 184,474$ 2,000,000$ Community Development & Housing 11,721,180$ 1,725,094$ 519,137$ 33,788$ -$ 13,999,199$ (1,907,054)$ 12,092,145$ Police 115,050,227$ 602,702$ 787,743$ 1,102,271$ 2,570,935$ 120,113,878$ (3,379,117)$ 116,734,761$ Parks & Recreation 5,054,805$ 89,254$ 354,951$ 162,818$ -$ 5,661,828$ (437,208)$ 5,224,619$ Public Works 29,879,002$ 1,757,226$ 2,262,827$ -$ 964,758$ 34,863,813$ (3,699,239)$ 31,164,575$ Library 2,869,459$ -$ -$ 63,569$ 200,000$ 3,133,028$ (208,706)$ 2,924,322$ General Fund Total 198,758,027$ 5,665,646$ 4,760,385$ 2,362,446$ 4,879,101$ 216,425,606$ (9,718,454)$ 206,707,152$ General Fund Budget Summary 5 Fund Actual FY 2021-22 Actual FY 2022-23 Projected Year-End FY 2023-24 FY 2024-25 Proposed FY 2025-26 Proposed General Fund Mayor 363,223$ 306,227$ 305,812$ 403,756$ 425,651$ City Council 832,799$ 1,015,993$ 1,092,321$ 1,243,619$ 1,300,847$ City Clerk 1,058,872$ 1,300,833$ 1,748,820$ 1,942,869$ 1,994,357$ Legal Services 3,674,910$ 4,559,283$ 5,304,826$ 5,181,587$ 5,536,580$ General Government 18,412,399$ 32,886,990$ 16,004,376$ 17,967,471$ 21,729,185$ City Manager 1,649,111$ 2,103,300$ 3,440,261$ 5,243,556$ 5,805,481$ Human Resources 1,932,821$ 2,055,421$ 2,975,837$ 2,784,522$ 3,042,376$ Finance 3,967,234$ 5,163,873$ 5,580,156$ 6,612,496$ 7,241,806$ Economic Development -$ -$ -$ 1,785,363$ 2,002,329$ Special Assessment Districts 138,000$ 115,996$ 114,321$ 150,000$ 150,000$ Capital Improvement 50,093$ 89,235$ 2,000,000$ -$ -$ Community Development & Housing 5,810,139$ 9,040,721$ 12,092,145$ 15,004,584$ 16,413,508$ Police 91,987,711$ 103,840,116$ 116,734,761$ 132,847,479$ 138,329,846$ Parks & Recreation 4,415,060$ 4,132,108$ 5,224,619$ 6,000,401$ 6,389,934$ Public Works 20,213,572$ 21,764,427$ 31,164,575$ 35,591,030$ 37,647,120$ Library 2,671,250$ 2,610,050$ 2,924,322$ 4,975,030$ 4,952,282$ General Fund Expenditures 157,177,194$ 190,984,572$ 206,707,152$ 237,733,763$ 252,961,302$ FY 2023/24 Council Approved Personnel 6 Departments Total FTE FTE - Filled FTE - Vacant ANIMAL SERVICES 71 44 CITY ATTORNEY 1 1 0 CITY CLERK 9 8 1 CITY COUNCIL 9 9 0 CITY MANAGER 22 16 COMMUNITY DEVELOPMENT & HOUSING 74 52 ECONOMIC DEVELOPMENT 12 7 5 FINANCE 31 28 3 GENERAL GOVERNMENT 6 5 1 HUMAN RESOURCES & RISK MANAGEMENT 17 14 3 INFORMATION TECHNOLOGY 18 18 0 LIBRARY 20 18 2 MAYOR 2 2 0 PARKS 29 27 2 POLICE 474 411 PUBLIC WORKS 141 119 FTE Total FY 2023/24 936 779 157 Less Positions Approved in March - April 2024 (70) Current Vacancy 87 9% 27* 6** 22*** 63**** 22***** FY 2024/25 & FY 2025/26 Total Proposed Personnel 7 DEPARTMENT FY 2023-24 Approved Positions FY 2024-25 Proposed Additions/ Deletions FY2024-25 Proposed FY 2025-26 Proposed Addtions/ Deletions FY2025-26 Proposed MAYOR & CITY COUNCIL OFFICE 11 3 14 0 14 CITY MANAGER 22 0 22 0 22 CITY CLERK 9 0 9 0 9 ANIMAL SERVICES 71 0 71 0 71 COMMUNITY DEVELOPMENT & HOUSING 74 2 76 0 76 ECONOMIC DEVELOPMENT 12 0 12 0 12 FINANCE & MANAGEMENT SERVICES 30 1 31 0 31 GENERAL GOVERNMENT 6 0 6 0 6 HUMAN RESOURCES & RISK MANAGEMENT 17 1 18 0 18 INFORMATION TECHNOLOGY 19 0 19 0 19 LEGAL SERVICES 1 0 1 0 1 LIBRARY 20 1 21 0 21 PARKS, RECREATION & COMMUNITY SERVICES 29 0 29 0 29 POLICE DEPARTMENT 474 4 478 (6)472 PUBLIC WORKS 141 2 143 0 143 PERSONNEL SUMMARY TOTAL 936 14 950 (6)944 Proposed Positions for FY 2024/25 8 Department Position Title FTE Count Salaries Benefits FY 2025 Total COMMUNITY DEVELOPMENT & HOUSING COMMUNITY DEVELOPMENT TECHNICIAN**2 122,261$ 57,192$ 179,453$ FINANCE ACCOUNTING TECHNICIAN III*1 74,211$ 15,469$ 89,680$ HUMAN RESOURCES & RISK MANAGEMENT SENIOR OFFICE ASSISTANT*1 54,492$ 15,468$ 69,960$ LIBRARY LIBRARY TECHNICIAN I*1 62,099$ 20,688$ 82,787$ SUBTOTAL 5 313,063$ 108,817$ 421,880$ POLICE POLICE DISPATCH MANAGER*1 126,142$ 53,189$ 179,331$ POLICE POLICE DISPATCH SUPERVISOR*1 111,853$ 42,939$ 154,792$ POLICE POLICE RECORDS MANAGER*1 126,142$ 53,189$ 179,331$ POLICE RANGE MASTER*1 94,651$ 41,557$ 136,208$ POLICE SUBTOTAL 4 458,788$ 190,874$ 649,662$ PUBLIC WORKS ENGINEERING TECHNICIAN*1 79,345$ 20,688$ 100,033$ PUBLIC WORKS NPDES INSPECTOR II*1 91,948$ 20,688$ 112,636$ PUBLIC WORKS SUBTOTAL 2 171,293$ 41,376$ 212,669$ MAYOR ADMINISTRATIVE ASSISTANT 1 59,347$ 27,824$ 87,171$ CITY COUNCIL ADMINISTRATIVE ASSISTANT 1 59,347$ 27,824$ 87,171$ CITY COUNCIL ADMINISTRATIVE ASSISTANT 1 59,347$ 27,824$ 87,171$ MAYOR & CITY COUNCIL SUBTOTAL 3 178,041$ 83,472$ 261,513$ 14 1,121,185$ 424,539$ 1,545,724$ Total FTE Proposed FY 2024/25 & FY 2025/26 Recommended Revenue Budget – General Fund 9 FY 2024/25 & FY 2025/26 Proposed GF Revenues as of 04/17/24 10 Charges for services 9,637,110$ 9,107,888$ 9,087,250$ 10,319,801$ 11,042,187$ Fines and forfeitures 995,057$ 1,082,037$ 1,397,000$ 1,593,262$ 1,704,790$ Franchise Tax 11,733,315$ 12,692,337$ 13,280,000$ 14,939,265$ 15,985,014$ Intergovernmental 1,995,970$ 2,225,143$ 5,348,374$ 2,949,650$ 3,156,126$ Investment income (4,563,608)$ 963,828$ 900,000$ 999,900$ 1,069,893$ Licenses & permits 12,922,241$ 15,740,360$ 14,378,500$ 16,989,167$ 18,178,409$ Measure S Sales Tax 49,424,028$ 52,124,592$ 50,528,000$ 53,550,000$ 57,298,500$ Miscellaneous 5,810,166$ 3,304,140$ 3,844,697$ 4,238,231$ 4,534,907$ Other Taxes 9,558,796$ 9,066,305$ 9,550,000$ 11,599,680$ 12,411,658$ Cannabis Tax 4,650,447$ 2,105,746$ 2,800,000$ 3,460,800$ 3,703,056$ Property Tax In Lieu VLF 19,968,034$ 21,312,883$ 23,000,000$ 25,806,000$ 27,612,420$ Sales and Use Tax 57,349,125$ 55,651,769$ 57,088,000$ 58,623,667$ 62,727,324$ Use of Money and Property 1,120,267$ 3,158,026$ 2,357,000$ 2,640,627$ 2,825,471$ Utility Users Tax 26,272,812$ 31,208,992$ 25,000,000$ 28,893,750$ 30,916,313$ Total General Fund Revenues: $ 206,873,760 $ 219,744,046 $ 218,558,821 $ 236,603,800 $ 253,166,066 Account Type FY 2023/24 Projected Year-End FY 2024/25 Proposed FY 2025/26 Proposed FY 2021/22 Actuals FY 2022/23 Actuals FY 2024/25 & FY 2025/26 General Fund Major Revenue Categories 11 12 Sales & Use Tax Revenues 57,349,125 55,651,769 57,088,000 58,623,667 62,727,324 $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2021-22 Actual 2022-23 Actual 2023-24 Projected Year-End 2024-25 Proposed 2025-26 Proposed 13 Measure S Sales Tax Revenues 49,424,028 52,124,592 50,528,000 53,550,000 57,298,500 $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 2021-22 Actual 2022-23 Actual 2023-24 Projected Year-End 2024-25 Proposed 2025-26 Proposed 14 Utility Users Tax Revenues 26,272,812 31,208,992 25,000,000 28,893,750 30,916,313 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2021-22 Actual 2022-23 Actual 2023-24 Projected Year-End 2024-25 Proposed 2025-26 Proposed 15 Cannabis Tax Revenues 4,650,447 2,105,746 2,800,000 3,460,800 3,703,056 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 2021-22 Actual 2022-23 Actual 2023-24 Projected Year-End 2024-25 Proposed 2025-26 Proposed Includes $2.1 million of cannabis back taxes $2.5 million FY 2021-22 FY 2024/25 & FY 2025/26 Recommended Expenditure Budget – General Fund 16 FY 2024/25 & FY 2025/26 Total Proposed Expense Budget 17 Fund Approved FY 2023-24 FY 2024-25 Proposed Additions/ Deletions FY 2024-25 Proposed FY 2025-26 Proposed Additions/ Deletions FY 2025-26 Proposed General Fund Mayor 305,812$ 97,944$ 403,756$ 21,895$ 425,651$ City Council 1,092,321$ 151,298$ 1,243,619$ 57,228$ 1,300,847$ City Clerk 1,908,667$ 34,202$ 1,942,869$ 51,488$ 1,994,357$ Legal Services 5,309,583$ (127,996)$ 5,181,587$ 354,993$ 5,536,580$ General Government 15,401,045$ 2,566,426$ 17,967,471$ 3,761,714$ 21,729,185$ City Manager 3,428,539$ 1,815,017$ 5,243,556$ 561,925$ 5,805,481$ Human Resources 3,059,953$ (275,431)$ 2,784,522$ 257,854$ 3,042,376$ Finance 5,683,624$ 928,872$ 6,612,496$ 629,310$ 7,241,806$ Economic Development 498,790$ 1,286,573$ 1,785,363$ 216,966$ 2,002,329$ Special Assessment Districts 150,000$ -$ 150,000$ -$ 150,000$ Capital Improvement 1,815,526$ (1,815,526)$ -$ -$ -$ Community Development & Housing 13,999,199$ 1,005,385$ 15,004,584$ 1,408,924$ 16,413,508$ Police 120,113,878$ 12,733,601$ 132,847,479$ 5,482,367$ 138,329,846$ Parks & Recreation 5,661,828$ 338,573$ 6,000,401$ 389,533$ 6,389,934$ Public Works 34,863,813$ 727,217$ 35,591,030$ 2,056,090$ 37,647,120$ Library 3,133,028$ 1,842,002$ 4,975,030$ (22,748)$ 4,952,282$ General Fund Expenditures 216,425,606$ 21,308,157$ 237,733,763$ 15,227,539$ 252,961,302$ FY 2024/25 Proposed General Fund Expense Budget by Dept 18 FY2024/25 General Fund Expenditure Highlights 19 Salary & Benefits: ▪COLAs based on approved MOUs (MOUs expire June 30, 2025) 3.5% ▪Merit Increases 5% ▪Overall, Salary & Benefits increased by 20% PERS Unfunded Liability Payment: ▪Increased by $5.1 million (16%) ▪Total Payment FY 2024/25: $37.9 million ➢Safety: $26.9 million ➢Miscellaneous: $11.0 million ▪City prepays in July to save approx. $1.3 million 20 FY2024/25 General Fund Expenditure Highlights Police: $132.8 million total budget ▪Quality of Life Team – increase of $2.6 million annually ▪Mid-Year Follow-Up Positions – increase of $1.2 million annually ▪Proposed Positions – increase of $1.1 million annually ▪Over-time budget increase by 41% ($2.1 million) – revenue will offset some expenses General Government: ▪Transfer out to Animal Services increase by 77% ($3.3 million) – revenue from Regional Partners will offset 47% of expenses ▪Utilities budget increase of $1.3 million 21 FY2024/25 General Fund Expenditure Highlights Parks & Recreation: ▪Recreation & Community Events budget increase of 9% ▪Senior Nutrition General Fund contribution increase of 87% ▪Special Events budget increase of 19% Library: ▪Overall budget increase of 59% ➢Adult Education budget increase of over 100% due to increased resources for the community ➢Central Library Services increase of over 82% due to increased staffing for branch libraries 22 Liability & Workers Compensation: ▪Liability & Property Insurance Premiums budgeted at $19.4 million ➢Increase of $11.3 million from FY 2023/24 Adopted Budget ▪Premiums for Excess Workers Compensations Coverage budgeted at $4.5 million ➢Increase of $292k from FY 2023/24 Adopted Budget Information Technology: ▪Total Budget: $9.6 million ➢Increase of $1.7 million from FY 2023/24 Adopted Budget - Upgrades to infrastructure & cybersecurity; replacement of critical hardware FY 2024/25 General Fund Expenditure Highlights FY 2024/25 & FY 2025/26 Fund Balance – General Fund 23 Fund Balance Designation 24 ACFR 2022/23 Category FUND BALANCE 06-30-2023 FUND BALANCE 06-30-2024 FUND BALANCE 06-30-2025 FUND BALANCE 06-30-2026 Nonspendable 41,421,536 40,000,000 40,000,000 40,000,000 Restricted 2,086,366 2,000,000 1,800,000 1,800,000 Committed Animal Services 68,387 10,000,000 General Plan Update 142,877 2,400,000 Measure S - Capital Projects 81,762,949 73,512,719 64,561,199 54,637,148 15% Emergency Reserve 28,788,264 31,006,073 35,413,498 37,666,239 10% Economic Contingency Reserve 19,192,176 20,670,715 23,608,999 25,110,826 Unassigned - 5,724,718 9,364,343 7,091,633 TOTAL FUND BALANCE 173,462,555 185,314,225 174,748,039 166,305,846 Positions Added April 17 (Proposed Use of Fund Balance)- - (1,382,264) (1,560,865) Additional Administrative Positions (Proposed Use of Fund Balance)- - (261,513) (292,182) Additional Prior Year (FY 2024/25) Use of Fund Balance - - - (1,643,777) REVISED FUND BALANCE 173,462,555 185,314,225 173,104,262 162,809,022 FY 2024/25 & FY 2025/26 Total Proposed Budget 25 FY 2024/25 & FY 2025/26 Total Proposed Expenditures 26 Fund FY 2023-24 Adopted FY 2024-25 Proposed FY 2025-26 Proposed Revenues General Fund Revenues 208,349,947$ 236,603,800$ 253,166,066$ Other Fund Revenues 78,368,978$ 95,076,919$ 97,268,983$ Total Proposed Revenues 286,718,925$ 331,680,719$ 350,435,049$ Expenditures General Fund Expenditures 198,758,027$ 237,733,763$ 252,961,302$ Other Fund Expenditures 64,125,084$ 74,988,484$ 77,164,377$ Total Proposed Expenditures 262,883,111$ 312,722,247$ 330,125,679$ Capital Improvement Program 27 Lynn Merrill, Director of Public Works Azzam Jabsheh, Deputy Director/City Engineer Total CIP Budget – By Category 28 FY 2024/25 Proposed FY 2025/26 Proposed CIP Categories General Fund Other Funds TOTAL General Fund Other Funds TOTAL Building 2,000,000$ 600,000$ 2,600,000$ -$ 100,000$ 100,000$ Environmental -$ 250,000$ 250,000$ -$ 250,000$ 250,000$ Others -$ -$ -$ -$ -$ -$ Parks 1,325,000$ 2,200,000$ 3,525,000$ -$ 2,850,000$ 2,850,000$ Police -$ 50,000$ 50,000$ -$ -$ -$ Storm Drain -$ 750,000$ 750,000$ -$ 500,000$ 500,000$ Streets -$ 4,500,000$ 4,500,000$ -$ 13,120,000$ 13,120,000$ Traffic 240,500$ 1,321,000$ 1,561,500$ 395,000$ 266,000$ 661,000$ Grand Total $ 3,565,500 $ 9,671,000 $ 13,236,500 $ 395,000 $ 17,086,000 $ 17,481,000 Questions? 29