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HomeMy WebLinkAboutMinutes - May 3, 2022 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, MAY 3, 2022 An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, May 3, 2022, commencing at 7:05 a.m. Present: Council Member Khan, Council Member Kuehne, Council Member Nakanishi, Mayor Pro Tempore Hothi, and Mayor Chandler Absent: None Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Nashed Deputy City Manager Andrew Keys provided a PowerPoint presentation regarding Fiscal Year 2022/23 General Fund budget. Specific topics of discussion included overview; General Fund assumptions, revenues, expenditures, and key inputs; Parks, Recreation & Cultural Services support; Measure L; Vehicle Replacement Fund; and Five-Year forecast assumptions, revenue, expenses, fund balance, and risk/opportunities. Lisa Craig provided public comment regarding the item. None. No action was taken by the City Council. The meeting was adjourned at 7:58 a.m. A.Call to Order / Roll Call B.Topics B-1 Receive Presentation Regarding Fiscal Year 2022/23 General Fund and Measure L Budget and Five-Year General Fund and Measure L Forecast. (ISD) C. Comments by Public on Non-Agenda Items THE TIME ALLOWED PER NON-AGENDA ITEM FOR COMMENTS MADE BY THE PUBLIC IS LIMITED TO FIVE MINUTES. D.Adjournment ATTEST: Olivia Nashed City Clerk 1 Fiscal Year 2022/23 Budget General Fund Presented by Andrew Keys, Deputy City Manager Overview •General Fund Assumptions/Revenues/Expenses Key Inputs Five Year Forecast •Overall revenues are projected at a small increase over mid-year projections when adjusted for ARPA and FEMA reimbursements •Expenditures are showing increases primarily in PERS Unfunded Liability, additional support for vehicles and equipment replacement funds; additional support to Library and PRCS operations and general goods and services cost increases •Increase of 6.4 positions General Fund Assumptions General Fund Revenues $73,892,170 Revenue Budget FY 2022/23 Tax Revenues 54,280,830$ Revenue from Others 7,482,890$ Operating Transfers In 7,115,470$ charges for Services 1,857,180$ Property Revenue 1,756,000$ Fines & Forfeitures 815,100$ Other Revenue 523,500$ Licenses & Permits 61,200$ Total 73,892,170$ General Fund Expenditures $73,892,170 General Fund Expenditures by Department Budget FY 2022/23 Police 29,997,060$ Fire 17,730,630$ Non-Dept 11,080,340$ Internal Services 6,546,100$ Public Works 3,751,040$ Parks, Rec & Cultural Srvs (Measure L support 1,045,250$ City Attorney 825,880$ City Clerk 801,930$ City Manager 791,680$ Eco Development 500,240$ Com Improvement 484,700$ Library (Measure L support)337,320$ Total 73,892,170$ •Net increase of 6.4 full-time positions General Fund Key Inputs Job Title Department +/- Management Analyst *Fire +0.4 Administrative Analyst Internal Services +1 Budget Manager **Internal Services +1 Administrative Assistant Police +1 Police Sergeant (Traffic)Police +1 Property & Evidence Tech **Police +1 Management Analyst Public Works +1 Net Increase 6.4 * This position has been split 60/40 in PRCS and is now recommended ** These positions are for succession planning and are temporary 100% in General Fund •Increased base operational support to Library and Parks, Recreation and Cultural Services by 8.48% •Library: $119,140 funded by Measure L •PRCS: $302,880 funded by Measure L •Continue transfer to Parks Capital Fund •$400,000 funded by Measure L •Transfers to Police and Fire Vehicle Replacement Fund •Police: $1,260,000 an increase of $786,000 •Fire: $400,000 funded by Measure L General Fund Key Inputs •General Fund support for Parks, Recreation and Cultural Services: •Operational Support of $4,295,600 •$3,225,950 General Fund base support •$147,540 of FY 22 mid-year new staff support •$645,250 Measure L base support •FY 22 base $342,370 •FY 23 base $302,880 •$85,000 for vehicle replacement fund •$38,000 for new Administrative Analyst •$153,860 to close revenue gap Parks, Rec & Cultural Svs . Support $5,961,520 •General Fund support (cont.) •Cost of Services of $830,010 •Debt Service of $435,910 •Ongoing Capital Support of $400,000 funded by Measure L •In addition to the listed FY 23 items, the General Fund transferred $6,960,000 in FY 22 1x monies to Parks capital accounts to support major infrastructure needs such as Lodi Lake improvements, playground replacements, parking lot overlay, sports lighting and building renovations. Parks, Rec & Cultural Svs . Support $5,961,520 •Revenues: $9,118,800 •Expenditures: $9,118,800 Measure L Measure L Funded Positions FY 2021/22 Budget FY 2022/23 Budget Cost: Police Officers 20 26 $3,979,290 Firefighters 8 8 $1,119,040 Librarian 1 1 $98,140 Street Maintenance Wrk III 0.2 0.2 $31,360 Total Full-Time 29.2 35.2 $ 5,227,830 $1,779,120 $84,020 $349,520 $233,060 $645,250 $400,000 Fire Vehicle Replacement $400,000 Measure L Total $ 9,118,800 Public Safety Overtime Part-Time Community Service Officers (2) Supplies, Materials, Training Library Operations Parks, Recreation & Cultural Srvs Operations Parks Capital Vehicle Replacement Fund Vehicle Replacement Funds FY 23 Straight Line Depreciation Requirement FY 23 Recommended Funding Annual Funding Surplus/(Shortage) Comm. Dev.$4,570 $45,000 $40,430 Fire Dept.$216,051 $400,000 $183,949 Community Imp.$3,328 $0 ($3,328) Police Dept.$279,508 $1,260,000 $980,492 PRCS $36,056 $88,300 $52,244 PW-GF $15,345 $20,000 $4,655 Grand Total $554,858 $1,813,300 $1,258,442 *PRCS straight line depreciation reduced as compared to FY 22 due to reclassification of some items as equipment, following an inventory review. Vehicle Replacement Funds 6/30/22 YE Est Fund Bal 2022/23 Proj Rev 2022/23 Est Exp 6/30/23 YE Est Fund Bal Fund Target* Over/(Under) Target Comm. Dev.90,788 45,000 45,000 90,788 48,846 41,942 Fire Dept.-164,860 400,000 0 235,140 1,379,098 (1,143,958) Community Imp.82,500 0 0 82,500 45,967 31,670 Police Dept.1,091,436 1,260,000 610,000 1,741,436 1,891,045 (149,609) PRCS 359,012 88,300 116,000 331,312 893,728 (586,987) PW-GF 80,144 20,000 45,000 55,144 168,111 (112,967) Grand Total 1,539,020 1,813,300 816,000 2,536,320 4,426,795 (1,919,909) *Fund Target is the straight line depreciation value of vehicle stock that should be set aside for future replacements using Fleet Services estimated useful life expectancies by vehicle type. 5 Year Forecast -Assumptions •FY 2023 budget as recommended is projected forward •Includes continued contributions to PRCS capital and network infrastructure started in FY 2022, and new positions being recommended in FY 2023 •Labor contracts expire June 30, 2022 or December 31, 2022 •No specific assumptions for future contracts are included, but a general allowance for salary increases is factored based on labor discussions with Council •Assumes 100% full employment (no vacancies) •Continued, strong growth is projected, albeit at a more measured pace than the past few years 5 Year Forecast -Assumptions Revenue Category FY 22/23 B FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Property Taxes - Secured 4.9%3.7%3.7%3.7%3.7%3.7% Sales & Use Taxes 2.0%3.0%3.5%3.5%3.5%3.5% Transient Occupancy Tax 5.0%5.0%5.0%3.0%3.0%3.0% Business License Tax 8.6%10.0%10.0%3.5%3.5%3.5% Other Taxes -0.4%3.0%3.0%3.0%3.0%3.0% EU Pilot 1.8%0.5%0.5%0.5%0.5%0.5% Property Tax in Lieu VLF 7.0%3.7%3.7%3.7%3.7%3.7% Transfers In 9.8%2.0%2.0%2.0%2.0%2.0% Property Taxes - CFD 26.2%10%10%5%5%5% Measure L 2.0%3.0%3.5%3.5%3.5%3.5% Other Revenues 16.1%2.0%2.0%2.0%2.0%2.0% Expense Category FY 22/23 B [1]FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Salaries [2]N/A 3.0%3.0%3.0%2.0%2.0% PERS Normal Cost N/A 3.0%3.0%3.0%2.0%2.0% PERS UAL N/A 7.5%7.5%5.0%5.0%5.0% Other Benefits N/A 2.0%2.0%2.0%2.0%2.0% Operations N/A 2.0%2.0%2.0%2.0%2.0% Debt [3]N/A 0.2%0.2%-0.1%-0.1%0.1% Transfers N/A 0.5%0.5%0.5%0.5%0.5% City of Lodi 5 Year General Fund Forecast Assumptions Revenue FY 21/22 E FY 22/23 B FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Property Taxes 12,456,500 13,070,000 13,554,000 14,056,000 14,577,000 15,117,000 15,677,000 Sales & Use Taxes 16,325,000 16,651,000 17,151,000 17,752,000 18,374,000 19,018,000 19,684,000 Transient Occupancy Tax 1,500,000 1,575,000 1,654,000 1,737,000 1,790,000 1,844,000 1,900,000 Business License Tax 1,750,000 1,900,000 2,090,000 2,299,000 2,380,000 2,464,000 2,551,000 Other Taxes 3,777,970 3,761,790 3,875,000 3,992,000 4,112,000 4,236,000 4,364,000 EU Pilot 7,432,690 7,564,240 7,603,000 7,642,000 7,681,000 7,720,000 7,759,000 Property Tax in Lieu VLF 6,375,000 6,820,000 7,073,000 7,335,000 7,607,000 7,889,000 8,181,000 Transfer In 6,478,410 7,115,470 7,258,000 7,404,000 7,553,000 7,705,000 7,860,000 Property Taxes - CFD 507,000 640,000 704,000 775,000 814,000 855,000 898,000 Measure L 8,940,000 9,118,800 9,393,000 9,722,000 10,063,000 10,416,000 10,781,000 Other Revenues 4,889,080 5,675,870 5,790,000 5,906,000 6,025,000 6,146,000 6,269,000 Total Revenue 70,431,650 73,892,170 76,145,000 78,620,000 80,976,000 83,410,000 85,924,000 Revenue Growth [1]8.2%4.9%3.0%3.3%3.0%3.0%3.0% 5 Year Forecast -Revenue 5 Year Forecast -Expenses 5 Year Forecast –Fund Balance 5 Year Forecast –Fund Balance Risks •Recession •Inflation (particularly fuel and food) •Global conflict •Consumer demand? •Labor Negotiations –mitigated by set asides in budget •CalPERS UAL or other assumptions changes –minimal given current ALS cycle appears on track to not make significant changes •Pace of Development •Additional service needs/demands from the public Opportunities •Recent revenue trend line is above the forecast base case •Economic development •Loan program •Substantial new municipal capital spending ($9.72 million one time General Fund Surplus and $15 million for the animal shelter and parks projects) •Revenue enhancement •Vacancies •Workforce Demographics 5 Year Forecast – Risks/Opportunities 19 Questions?