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HomeMy WebLinkAboutItem No. 10 - Budget Presentation 6.16.21 FinalFiscal Year 2021/22 Proposed Budget Presentation Barbara Whitehorn, Finance Director June 16, 2021 FY 2021-22 Proposed Budget Presentation Overview ➢Budget Calendar ➢Measure S Committee Recommendations ➢June 2 Budget and Fund Balance ➢Cost Considerations, Unknowns, Other Items ➢Review of Investments included in FY 2021/22 Budget ➢Discussion of Amendments ➢Use of Fund Balance ➢Next Steps 2 FY 2021/22 Budget Calendar Group Type of Meeting Purpose Thursday, April 8 City Council Special Meeting Budget Workshop 1 Monday, April 19 Measure S Committee Budget Workshop 1 Thursday, May 13 City Council Special Meeting Budget Workshop 2-Presentation of Operation and CIP Recommendations Monday, May 17 Measure S Committee Budget Workshop 2-Presentation of Recommendations Wednesday, May 19 City Council Regular Meeting Budget Update Wednesday, June 2 City Council Regular Meeting Budget Discussion Thursday, June 3 Measure S Committee Budget Workshop 3-Review of Council Recommendations Wednesday, June 16 City Council Regular Meeting Budget Hearing and Adoption 3 Measure S Committee Recommendations ➢The Committee voiced their support for the FY 2021/22 Proposed Budget as voted on by Council on June 2, 2021. ➢The Committee wished to reemphasize the Formal Recommendation made to Council on August 19, 2020: Measure S funds should be spent in keeping with the City’s priorities including a balanced distribution of resources to support: ➢Public safety, emergency response and violence intervention services ➢Cleaner and safer neighborhoods ➢Retaining and attracting new businesses ➢Street, park and library maintenance/improvements ➢Youth, senior, and homeless service programs 4 Measure S Committee Recommendations The Committee had the following Formal Recommendations: 1)Capital Improvements Projects funded with Measure S should be equitable across the City and benefit all residents by being evenly distributed amongst the wards; streets projects should be prioritized based on the Pavement Management System. 2)The City should develop and provide real time reporting on measurable performance outcomes for programs supported by Measure S funds to improve accountability. 3)Request for Council to allocate up to $10,000 from Measure S funds for youth sports and recreational programming and activities. These funds may be used to provide stipends to cover participation costs and to provide support staff for youth sports and recreational programs, in place of depending upon volunteers. 5 FY 2021/22 General Fund Overview Year-End Projections FY 2020/21 May 13th Proposed Budget June 2nd Approved Budget Beginning General Fund Balance 33,822,411 47,905,880 47,905,880 Revenues 151,610,366 186,413,192 174,416,673 Operating Expenditures (137,526,897) (152,701,673) (153,404,684) Operating Surplus 14,083,469 33,711,519 21,011,989 CIP Expenditures, Measure S (22,075,000) (25,720,000) Contribution (Use of) General Fund Reserve 14,083,469 11,636,519 (4,708,011) Projected General Fund Reserve 47,905,880 59,542,399 43,197,869 Fund Balance Designations Operating Reserve: Emergency Reserve - 15% of Adopted Budget 19,601,987 22,905,251 23,010,703 Economic Contingency Reserve - 10% of Adopted Budget 13,067,991 15,270,167 15,340,468 Sub - Total Budgeted Reserves 32,669,978 38,175,418 38,351,171 Measure S Unallocated 8,000,000 16,687,342 4,846,698 Undesignated 7,235,902 4,679,639 Projected Ending General Fund Reserves 47,905,880 59,542,399 43,197,869 June 2 Budget –Fund Balance 6 Items without Cost Information that will Impact the Budget Items with Unknown Impact on FY 2021/22 Budget ➢Negotiations with labor groups are not complete. ➢Rising costs of construction for capital projects. ➢Local, State and Federal agencies investing in capital. ➢Creates competition for resources and is likely to drive prices up. ➢Estimates include contingencies and escalators, but costs may exceed even these depending on competition for scarce resources. Council Requested Items Requiring Further Analysis ➢Trash Can Pilot Program ➢Street Sweeping Pilot Program ➢Right of Way Maintenance Program ➢Clean-up San Bernardino Campaign/Partnership ➢Funding a Liability Reserve ➢City Council meeting translation services ➢Additional Council requested capital projects that have not been costed out 7 INVESTMENTS IN SAN BERNARDINO FY 2021/22 Budget 8 Code Enforcement ➢3 additional CEOs for a total of 12. ➢More than double current staffing level. 9 Also Included in FY 2021/22 Budget ➢Additions to Police Dispatch and Records Management ➢Animal Services Dispatch and Customer Service ➢Significant Investment in Libraries ➢Capital Improvements throughout the City 10 Council Requests Council Request Cost Alternate Cost Code-11 Additional positions $1,553,040 Code-2 Additional positions $298,000 Police-20 additional Patrol Officers, required supervisory staff and 7 additional civilian staff $6,435,990 7 additional civilian staff and $500,000 for vehicles $1,387,120 3 mobile camera trailers $84,000 -- Reopen Jail and Contract for Transportation $1,240,000 -- California Theatre Funding $75,000 -- Diversity Inclusion Officer $156,500 Diversity Inclusion Officer $156,500 Liability Reserve $1,250,000 -- Assistant City Manager $261,400 Assistant City Manager 261,400 Community Intervention Program $250,000 Community Intervention Program $150,000 2 Pool Maintenance Coordinators $140,000 -- Public Works-Equipment Replacement $600,000 Public Works-Equipment Replacement $600,000 Additional Parks Security $150,000 Additional Parks Security $150,000 TOTAL $12,195,930 TOTAL $3,003,020 11 Fund Balance 12 May 13 Proposed* June 2 Budget With Council Additions With Alternative Additions Total Estimated Revenue 174,416,673 174,416,673 174,416,673 174,416,673 Total Estimated Expenditures 152,701,673 153,404,684 165,600,614 156,407,704 Operating Surplus 21,715,000 21,011,989 8,816,059 18,008,969 Proposed CIP Expenditures 22,075,000 25,720,000 25,720,000 25,720,000 Deficit- Use of Fund Balance (360,000)(4,708,011)(16,903,941)(7,711,031) Ending Fund Balance 47,545,880 43,197,869 31,001,939 40,194,849 Emergency Reserves, 15%22,905,251 23,010,703 24,840,092 23,461,156 Economic Contingency Reserves, 10%15,270,167 15,340,468 6,161,847 15,640,770 Measure S Unallocated/Reserves 9,370,462 4,846,698 - 1,092,923 *This column reflects the original proposed expenditures presented on May 13 with updated revenue projections. Potential Amendment Discussion ➢Operating amendments should consider: ➢Unknown costs that will impact the Budget and additional items to be costed out and brought back to Council. ➢The importance of maintaining adequate reserves. 13 ➢American Rescue Plan Fund Allocation Plan (July/August) ➢Quarterly Updates on FY 2021/22 Budget and Economic Conditions ➢Additional CIP Requests at Q1 FY 2021/22 Update ➢5-Year Capital Improvement Program ➢Mid-Year FY 2021/22 Update ➢2-Year Budget: FY 2022/23 and 2023/24 Next Steps 14