HomeMy WebLinkAbout3.31.22 Budget Workshop PresentationFY 2022/23 and FY 2023/24
Budget Workshop
Barbara Whitehorn, Finance Director
Tanya Williams, Budget Division Manager
March 31, 2022
FY 2021-22 Budget Workshop
Presentation Overview
o Budgeting Basics Review
o Developing the Biennial Budget
o Changes to expect
o Financial Context
o Budget Themes & Priorities
o Review Budget Calendar & Timeline
Governmental Budgeting Review
What is the City Budget?
1)Authorizes organizational spending
2)Provides guidelines to control spending
Best Practice:
1)Allocates resources to achieve/establish vision, mission and strategic objectives
2)Provides transparent accountability to the public through specific measurable goals which are reported consistently year-over-year
3)Reflects the values of the community
Budget Process
Budget Preparations
•Calendar, Instructions &
Assumptions to departments
Budget Requests
•Departments submit budgets,
CIP requests
Proposed Budget
•Department Meetings with
CM, Forecasts Updated
Adopted Budget
•Final Budget Changes, Public
Hearing
Budget Amendments
•Quarterly reports &
adjustments as needed
Fiscal Years
2022/23-2023/24
Budgeted Funds
Governmental
Funds
General Fund
Special
Revenue
Funds
Enterprise
Funds
Storm
Drainage
Fund
Internal
Service Funds
Information
Technology
Fund
Fleet Services
Fund
Fund Balance and Fiscal Health
FY 2022/24 General Fund Overview
Adopted
Budget
2021/22
Amended
Budget
2021/22
Year-End
Projections
2021/22
Proposed
Budget FY
22/23
Proposed
Budget FY
23/24
Beginning General Fund Balance 33,822,411$ 66,703,835$ 66,703,835$ 72,124,284$ 77,387,099$
Plus: Reserve for Carryovers 2,215,990$ 2,215,990$ -$ -$
Total Available Beginning Fund Balance 7/1/22 33,822,411$ 68,919,825$ 68,919,825$ 72,124,284$ 77,387,099$
Revenues 174,416,673 178,342,465 184,782,944 177,913,197 183,408,947
Expenditures (179,124,684) (187,450,809) (181,578,484) (172,650,382) (178,137,912)
Projected General Fund Operating Surplus /(Deficit)(4,708,011) (9,108,344) 3,204,460 5,262,815 5,271,035
Projected General Fund Reserve 29,114,400$ 59,811,481$ 72,124,284$ 77,387,099$ 82,658,134$
Fund Balance Designations
Operating Reserve:
Emergency Reserve - 15% of Adopted Budget 26,868,703 28,117,621 27,236,773 25,897,557 26,720,687
Economic Contingency Reserve - 10% of Adopted Budget 2,245,698 31,693,859 44,887,512 51,489,542 55,937,447
Sub - Total Budgeted Reserves 29,114,400 59,811,481 72,124,284 77,387,099 82,658,134
- - -
Projected General Fund Reserves 6/30/22 29,114,400$ 59,811,481$ 72,124,284$ 77,387,099$ 82,658,134$
General Fund Revenue Projection
FY 22 amended FY 22 Forecast FY 23 Projection FY 24 Projection
Charges 7,470,300$ 8,046,111$ 7,682,000$ 8,307,250$
Fines 1,478,500$ 751,081$ 1,364,000$ 1,416,000$
Franchise Tax 11,781,000$ 11,597,584$ 11,781,000$ 11,781,000$
Intergovernmental 2,866,947$ 1,686,496$ 1,607,000$ 1,647,000$
Intvestment Income 500,978$ 809,805$ 525,000$ 525,000$
License & Permits 11,858,000$ 12,332,638$ 11,080,000$ 11,343,000$
Miscellaneous 2,778,037$ 409,998$ 3,688,697$ 3,709,697$
Other Taxes 7,493,263$ 7,749,307$ 7,656,000$ 7,816,000$
Property Taxes 19,267,608$ 19,991,785$ 20,000,000$ 23,000,000$
Sales & Use 45,391,210$ 45,266,161$ 45,000,000$ 45,250,000$
Use of Money 779,600$ 779,600$ 529,000$ 554,000$
Utility Users 22,700,000$ 23,517,277$ 21,430,500$ 20,890,000$
Measure S 41,016,456$ 48,730,876$ 42,000,000$ 42,500,000$
Cannabis Revenue 3,080,567$ 5,323,379$ 3,620,000$ 4,620,000$
Total 178,462,466$ 186,992,098$ 177,963,197$ 183,358,947$
Revenue By Source
Sales & Use, Measure S
(also sales tax) and
Utility Users Tax are
highest contributors to
general fund revenue
Revenue Forecasts
Impacts on Sales Tax Revenue:
•Current economic conditions (i.e.
inflation, supply chain, rising costs
for materials & labor)
•Drivers of sales tax:
•Auto Sales
•Fuel & Service Stations
•Food & Drug (Including
Cannabis)
•Fulfillment Centers
Strong
Demand
Higher
Prices
Higher
spending Drivers of Sales Tax
Building the Budget
•Biennial Budget
•Departments budgeting for two years
•Financial Context & Economic Forecast
•Forecasting two years of revenue
•Direction to the Departments
•OpenGov Online Budget Book
•Full budget book available online digital platform
Aligning Strategic Goals & The Budget
General Fund Focus Areas
•Bringing service levels back to support the needs of the community
•Diversity, Equity & Inclusion focus
•Employee engagement and development ($100,000)
•Update and enhance IT systems and hardware ($966,000)
•Investment in property evidence tracking ($236,000)
•ERP system upgrade ($2 million)
General Fund Focus Areas
•Funding for special events, recreational events and facilities –both
ongoing & new! ($686,000)
•Mobile recreation programming ($195,000)
•Enhanced services and hours at the Library ($187,000)
General Fund Focus Areas
•Public Safety commercial enforcement ($1.2 million)
•Traffic collision data review technology ($110,000)
•Animal Services Control Officers ($565,000)
•Street sweeping program
•Increase funds for Citywide tree maintenance ($450,000)
•Citywide sidewalk cleaning program ($590,000)
General Fund Focus Areas
•One-Stop for permitting & development ($400,000)
•Focus on staffing and customer service for enhanced experience
through planning and permitting
•Cannabis Cultivation Program ($152,000)
•Revisit focus on revitalizing San Bernardino City Hall
Measure S-Flexible Revenue in Perpetuity
•Measure S
•1% Transaction and Use Tax
•Voted into effect 2020
•General Tax
•No Sunset
•Measure Z
•.25% Transaction and Use Tax
•Voted into effect 2006
•Specific-Use Tax
•Governed by accompanying
Measure YY
•Set to Sunset 3/31/2022
•Replaced by Measure S
Capital Improvement Program (CIP)
Primary Funding Sources
•Measure I
•Street Maintenance (transportation improvements) ½ cent sales tax
•SB-1 Gas Tax Fund
•Measure S, 1% transaction and use tax
•Development Impact Fee Funds
•CDBG
•Highway Safety Improvement Program (HSIP Grant)
•Cultural Development Fund
•American Rescue Plan Fund (One-Time)
Capital Improvement Program (CIP)
Capital Improvement Program Focus
Critical Streets, Sidewalks and Storm Drainage Infrastructure
Parks and Recreation Facilities
Traffic Controls and Street Lighting
City Buildings
Approximately $52 million across all funds
19
Preliminary Budget
Discussion (Today)
Proposed
Budget
Review (May
2022)
Adopt Budget
(June 2022)
Biennial Budget Fiscal Year 2022-23 to 2023-24 Timeline
Discussion