FROM:
Finance
SUBJECT:
Title
Fiscal Year 2023-24 Fourth Quarter Budget Status Report
End
RECOMMENDATION:
Recommendation
Approve the recommended Fiscal Year 2023-24 Fourth Quarter Budget adjustments.
End
COUNCIL GOALS:
• Operate in a businesslike manner by ensuring that the public debate is based on accurate information.
• Operate in a businesslike manner by correcting problems immediately.
• Practice sound fiscal management by producing timely and accurate financial information.
• Practice sound fiscal management by living within our means while investing in the future.
• Practice sound fiscal management by fully funding liabilities and reserves.
• Practice sound fiscal management by developing long-term funding and debt management plans.
• Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
• Invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
• Invest in the City’s infrastructure (streets, sewers, parks, etc.) by utilizing Measure-I Funds wisely.
DISCUSSION:
The City’s budget is an important policy document, serving as the annual financial plan that identifies the spending priorities for the organization. Quarterly budget status reports are developed and presented to the City Council to provide the most current information on the financial activities of the City upon which to base decisions. Additionally, quarterly reports assist City departments in communicating their financial operations throughout the fiscal year including any program changes and significant impacts to their annual budgets, as well as gauging the City’s budget plan as compared to actual revenue and expenditures. This report includes requested departmental budget adjustments and preliminary year-to-date actuals through Fourth Quarter of Fiscal Year 2023-24, covering the period through June 30, 2024.
The current citywide Fiscal Year 2023-24 budget is comprised of a total of 200 funds including the General Fund, Other General Funds (10 funds), Special Revenue Funds (135 funds), Enterprise Funds (5 funds), Capital Project Funds (36 funds), a Debt Service Fund, an Internal Service Fund, and Other Agency Funds (11 funds). The current total citywide Fiscal Year 2023-24 budget (excluding other agency funds) includes total uses (expenditures and transfers out) for all City funds of $674.8 million and total sources (revenues and transfers in) of $480.9 million. The Recommended Budget includes an increase in total sources of $8.8 million for a total of $489.7 million and an increase in total uses of $2.7 million for a total of $677.6 million.
2023-24 Budget
All City Fund
GENERAL FUND
The current Fiscal Year 2023-24 General Fund Operating Budget includes total uses of $184.1 million and total sources of $161.3 million. The Recommended Budget includes an increase in total sources of $615,710 for a total of $161.9 million and an increase in total uses of $365,710 for a total of $184.5 million.
2023-24 Budget
General Fund (Fund 101)
Notable Changes
• Revenue Adjustments - a increase in revenues of $316,465 from Sales Tax, Property Tax, Reimbursables, and Miscellaneous revenues received.
• Personnel Requests (One-Time) - a increase in appropriations of $98,150 for additional leave cash out needed for retirees.
Fund Balance Analysis
The recommended 2023-24 ending fund balance of $48.7 million reflects an increase of $250,000. Included in the fund balance of are total operating reserves of $33.1 million (which reflects 25% of recurring annual expenditures).
The recommended ending fund balance reserves and designations are revised as follows:
• Future Projects and Commitments - Increase in the future projects and commitments fund balance of $250,000 for a total of $750,000 due to the requested one-time use of fund balance as described above.
2023-24 Budget
General Fund Balance
OTHER GENERAL FUNDS
Other General Funds includes a total of 10 funds which are funded by the General Fund for services that support the City’s general operations. The most notable funds include City Technology, Facility Maintenance, Self-Insurance, Retiree Medical Benefits, and General Fund Operating Projects.
The current 2023-24 Other General Funds Operating Budget includes total uses of $54.1 million and total sources of $41.2 million. The Recommended Budget includes an increase in total sources of $211,700 for a total of $41.4 million and an increase in total uses of $94,577 for a total of $54.2 million.
2023-24 Budget
Other General Funds
Notable Changes
• Facility Maintenance - Transfer in from the General Fund and an increase in appropriations of $207,660 due to actual utilities expense being higher than budget.
• GF Operating Projects - Decrease appropriations of $123,032 to cover Fund #362 actuals being moved to grant.
OTHER CITY FUNDS
Other City Funds includes a total of 178 funds which Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, and Internal Service Funds.
The current 2023-24 Other City Funds Operating Budget includes total uses of $436.7 million and total sources of $278.4 million. The Recommended Budget includes an increase in total sources of $8.0 million for a total of $286.4 million and an increase in total uses of $2.3 million for a total of $438.9 million.
2023-24 Budget
Other City Funds
Notable Changes
• Special Revenue Funds - Increase in fund balance of $3.4 million primarily due to:
o Gas Tax (State) (Fund 281)
• Decrease appropriations of $1.8 million due to project savings.
• Increase appropriations of $1.1 million due to actual utilities expense being higher than budget.
o Grants (Fund 301) - Decrease appropriations of $1.5 million to clear unused budget and send to fund balance.
• Various CFD Funds - Increase appropriations of $428,300 due to actual utilities expense being higher than budget.
• Capital Project Funds - Increase in fund balance of $3.4 million primarily due to:
o Storm Drain (Fund 622)
• Increase appropriations of $3.6 million for Cypress Storm Drain project.
o CFD #111 Monterado (Fund 674)
• Increase revenues of $7.5 million for bond proceeds, cost of issuance, and underwriters discount.
ORGANIZATIONAL CHANGES
There are no organizational changes listed in the 2023-24 Fourth Quarter Budget Status Report.
FISCAL IMPACT:
The fiscal impact associated with this item is summarized below and details are provided in Fourth Quarter Budget Status Report.
The General Fund projected ending fund balance reflects a net increase of $250,000 for a total of $48.3 million because of prior year operations and the net impact of the recommended budget adjustments.
MOTION:
Approve staff recommendation.