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CC 05-21-2024 Item No. 10. FY 2023-24 Third Quarter_Staff PresentationMay 21, 2024 Fiscal Year 2023-24 Third Quarter Financial Report CC 05-21-2024 Item No. 10 FY 2023-24 Third Quarter Update Proposed Budget Adjustments Recommendations and Next Steps Agenda FY 2023-24 Third Quarter Update FY 2023-24 Adopted Budget FY 2023-24 Q1 Year-End Projection FY 2023-24 Q2 Year-End Projection FY 2023-24 Q3 Year-End Projection Revenues $80.3 $112.8 $113.3 $133.8 Expenditures $86.1 $121.8 $122.3 $121.7 Changes to Fund Balance $(5.8)$(9.0)$(9.0)$12.1 FY 2023-24 Amended Budget –General Fund ($ in Millions) Classification FY 2022-23 Year End Projection FY 2023-24 Q1 Year-End Projection FY 2023-24 Q2 Year-End Projection FY 2023-24 Q3 Year-End Projection Restricted 20.7 18.8 20.7 20.7 Committed Capital Projects Reserve 10.0 10.0 -- Economic Uncertainty Reserve 24.0 24.0 18.0 18.0 Sales Tax Repayment Reserve --56.5 74.5 Sustainability Reserve 0.1 0.1 0.1 0.1 Unassigned 80.3 66.3*26.0*26.6* Other Classifications 5.4 5.4 5.4 5.4 Total Fund Balance $140.6 $124.6* $126.8*$150.0* Fund Balance –General Fund ($ in millions) *Excludes unrealized revenues from The Rise •Initial allocation of $56.5 million (disputed sales tax revenue received between April 1, 2021 and June 30, 2023) •Disputed sales tax revenue is expected to be $74.5 million by June 30, 2024 •Propose increasing the reserve to $74.5 million as part of the Third Quarter Financial Report Sales Tax Repayment Reserve Proposed Budget Adjustments Fund Revenue Expenditure Change in Fund Balance General Fund 19,710,094 (624,106) 20,334,200 Special Revenue Funds -250,000 (250,000) Capital Projects Funds 300,000 -300,000 Enterprise Funds - (691)691 Internal Service Funds -(90,183) 90,183 Total $20,010,094 $(464,980) $20,475,074 Proposed Budget Adjustments by Fund Proposal Revenue Expenditures Change in Fund Balance GENERAL FUND Adjust Sales Tax Revenue 19,382,332 - 19,382,332 Supplemental Law Enforcement Services 327,762 250,000 77,762 Increased Legal Costs - 200,000 (200,000) Defund - CWP Analyze Potential Revenue Measures - (22,450)22,450 Defund - FY 2022-23 Software Budget Carryover - (500,000)500,000 Defund - FY 2022-23 Training Budget Carryover - (16,896)16,896 Defund - Performance Management App Special Project - (32,000)32,000 Defund - Project Dox Special Project - (30,274)30,274 Defund - ERP Phase III - (375,000)375,000 Defund - Overpasses and Medians Trench Work - (40,000)40,000 Defund - City Hall Electrical Preventative Maintenance - (9,500)9,500 Defund - Shuttle Pilot Program - (10,574)10,574 Defund - Traffic Engineering Adaptive Traffic Signaling - (5,970)5,970 Defund - Traffic Signal Maintenance Adaptive Traffic Signaling - (16,042)16,042 Defund - Sustainable Infrastructure Audit - (10,000)10,000 Defund - 4H Fence - (5,400)5,400 Proposed Budget Adjustments Proposal Revenue Expenditures Change in Fund Balance SPECIAL REVENUE FUNDS Transfer from Storm Drain Improvement to Capital Reserve -300,000 (300,000) Defund - Support for the Unhoused - (50,000)50,000 CAPITAL PROJECT FUNDS Transfer from Storm Drain Improvement to Capital Reserve 300,000 -300,000 ENTERPRISE FUNDS Defund - Windscreens - (691)691 INTERNAL SERVICE FUNDS Defund - CWP Cyber Security Public Education - (6,183)6,183 Defund - Security Framework and Audit - (30,000)30,000 Defund - Council Voting System and Timer - (32,000)32,000 Defund - Public Bike Smart Rack DockTech - (2,000)2,000 Defund - Facility Battery - (20,000)20,000 Total $20,010,094 $ (464,980)$ 20,475,074 Proposed Budget Adjustments (Cont.) •No changes recommended Staffing •As of March 31, 2024, no funds have been spent. •Staff will continue to report on the use of this fund. 4th Quarter Preview •Some funds have been used for Public Employees Appreciation Week •Funds are anticipated to be used for additional Internal Audit costs to complete the CWP Citywide policies City Manager Discretionary Fund Recommendations and Next Steps 1.Receive the City Manager’s Third Quarter Financial Report for Fiscal Year 2023-24; 2.Adopt Resolution No. 24-XXX and Budget Modification 2324-340 decreasing appropriations by $464,980 and increasing revenues by $20,010,094 Recommendations Roadmap to FY 2024-25 Budget Adoption and Balancing Co u n c i l G o a l S e t t i n g / Wo r k P r o g r a m Budget Update 1st Quarter Report Budget Update Mid-Year Report Fee Study and Revenue Tax Measures Budget Update SLR Review #2 FY 2024-25 Proposed Budget -Community Funding -Festivals & Fee Waivers FY 2024-25 Adopted Budget Bu d g e t U p d a t e Se r v i c e L e v e l R e d u c t i o n (S L R ) P r e v i e w October 2023 November 2023 January 2024 April 2024 June 2024 February 2024 Community Budget Meeting #1 Commission/ Committee Feedback Labor Contracts March 2024 Budget Update 3rd Quarter Report May 2024 City Hall & Blackberry Farm Update Community Budget Meeting #2 Budget Update -Audit Update -Committed Reserve Revenue Tax Measures December 2023 Budget Update Capital Improvement Plan (CIP) Last Updated 5.01.2024 •Proposed Budget Study Session May 21 •Final Budget Adoption and Hearing June 4 Next Steps Questions?