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HomeMy WebLinkAboutMinutes - May 16, 2023 SSFiscal Year 2023/24 Budget Enterprise & Special Revenue Funds Presented by Andrew Keys, Deputy City Manager Overview •Enterprise Funds Electric Water Wastewater Transit 2 Overview •Special Revenue Funds •Streets •Community Development •Parks, Recreation and Cultural Services •Library •Capital Outlay •Vehicle/Equipment Replacement 3 Electric Utility Overview 4 2021-22 Actuals*Estimated 2022-23 Actuals** 2023-24 Budget*** Beginning Cash Balance Unreserved $42,164,766 $37,741,126 $29,811,227 Revenue $85,997,192 $97,333,760 $97,632,770 Expenditures $90,420,832 $102,763,659 $100,598,340 Net Difference (Revenue Less Expenditures)($4,423,640)($5,429,899)($2,965,570) Ending Cash Balance Unreserved** $37,741,126 $29,811,227 $26,845,657 Cash Balance as % of Expenses 42%29%27% Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2024 With Actuals for FY 2021-22 and Year End Estimates for FY 2022-23 *Annual Continuing Disclosure/Audited Financial Statements **Includes $2.5M drawdown of reserves in FY 22/23 to buy down ECA ***Does not include proposed rate increase •Revenues are $299,010 higher than FY 2022/23 estimated actuals Customer charges -$3,791,840 higher Base rate revenue fairly flat Increase in ECA due to increased power supply costs Reimbursable charges -$3.1M lower One time reimbursement in FY 23 for Power Plant Work for others -$123,000 lower Development Impact Fees -$301,930 lower Greenhouse gas -$140,570 lower Electric Utility Revenue Highlights 5 •Expenses are $2,165,319 lower than FY 2022/23 estimated actuals Salary & benefits -$920,390 higher Supplies, materials & services -$3,379,228 higher Due to power supply costs Capital projects & equipment -$6,518,887 lower FY 23 included $4.3M budget for Power Plant Staffing requests: Substation Technician Apprentice (+1) Electrical Engineer (+1) Electric Distribution Operator II (-1) Electric Utility Expenditure Highlights 6 •Forecasted CPI level base rate increase(s) FY 2024 and FY 2025 •Assumes all positions are staffed 100% •ECA adjusts only for changes in power supply costs •Need for base rate adjustments dependent on changes in non-power supply costs and decline in reserves •FY 24 proposed budget does not include additional revenue from proposed rate adjustment •If approved by Council, adjustments will be made at midyear Electric Utility Forecasted Rate Actions 7 FY 23 -24 Budget FY 24 -25 Forecast FY 25-26 Forecast FY 26-27 Forecast FY 27 -28 Forecast Proposed Rate Adjustments 2%2%0%0%0% Available Cash $29.5M $32.1M $34.3M $36.0M $37.3M Reserve Target $26.9M $27.5M $28.1M $28.7M $29.2M % of Target 110%117%122%126%128% •Spare Substation Transformer -$2,000,000 •12kV Overhead Maintenance -$1,110,200 •Substation Relay Modernization -$1,040,000 •Work for Others (Reimbursed) -$750,000 •60 kV Breaker Upgrades/Replacements -$294,000 •12kV Underground Maintenance -$265,000 •LED Streetlight Improvements –$250,000 •Substation Intrusive Maintenance -$80,000 •Substation Load Tap Changer Upgrades -$72,000 •Streetlight Maintenance -$50,000 •230kV Interconnection -$20,000 Electric Utility Capital Projects Additions to the CIP Program for FY 24 $5,931,200 8 •Replacement of Material Handler Bucket Truck -$350,000 •Replacement of Single Worker Bucket Truck -$225,000 •Replacement of Digger Derrick Line Truck -$375,000 •Replace of Construction/Maintenance Supervisor Medium Duty Pick Up Truck with EV -$120,000 •For compliance with Advanced Clean Fleets Regulation •Replacement of LEU Pool Vehicle -$60,000 •Replacement of Worn Out/Undersized Grounding Set - $15,000 Electric Utility Equipment and Vehicle Requests $1,145,000 9 Electric Utility 5-Year Capital Forecast 10 Project FY 23 -24 Budget* FY 24 -25 Forecast FY 25-26 Forecast FY 26 -27 Forecast FY 27 -28 Forecast Distribution Capacity Program $0 $0 $0 $0 $0 Underground / Overhead Maintenance $1,375,200 $725,200 $725,200 $725,200 $725,200 Streetlight Maintenance / LED Improvements $300,000 $300,000 $50,000 $50,000 $50,000 230 kV Interconnection Project*$20,000 $25,000 $25,000 $25,000 $25,000 Substation Maintenance / Improvements $3,486,000 $500,000 $230,000 $230,000 $180,000 Work for Others $750,000 $750,000 $750,000 $750,000 $750,000 Vehicles & Equipment $1,145,000 $318,000 $395,000 $455,000 $60,000 Total Projects $7,076,200 $2,618,200 $2,175,200 $2,235,200 $1,790,200 *Does not include rollover or unexpended funds from FY 23 **Includes planning and design costs only –construction costs estimated at ~$30M and will be debt financed Electric Utility Reserves 11 Purpose Basis 2023/24 Operating Reserves 90 Days Cash $22,672,540 NCPA General Operating Reserve NCPA Identified Items $ 3,796,849 Total Target:$26,469,389 Estimated FY 2023/24 Reserve: $26,845,657 Electric Utility Overview 12 Estimated 2021-22 2022-23 2023-24 Electric Utility Actuals Actuals Budget Cash Balance Beginning Cash Balance Unreserved 42,164,766 37,734,260 34,733,640 Revenues 85,831,667 98,721,730 97,632,770 Expenditures *90,262,173 101,722,350 100,598,340 Net Difference (Revenues Less Expenditures)(4,430,505) (3,000,620) (2,965,570) Restricted Cash Balance - - - Ending Cash Balance Unreserved 37,734,260 34,733,640 31,768,070 Cash Balance as a percentage of expenses:42%34%32% * Actuals include balancing sheet adjustments With Actuals for FY2021-22 and Year End Estimates for FY2022-23 For the Fiscal Year Ended June 30, 2024 Estimate Changes in Fund Balance 13 Water Utility Overview •Revenues are $98,250 lower than FY 2022/23 estimated actuals Developer Impact fees -$145,850 higher Non-potable water -$41,820 higher Investment earnings -$300,370 lower (due to fluctuations in investment calculations, this item is no longer being included as a budgetary item. Actual interest earnings will be posted according to fund cash balances.) Water Utility Revenue Highlights 14 •Expenses are $1,043,320 lower than FY 2022/23 estimated actuals Salary & benefits -$327,290 higher Supplies, materials & services -$91,300 higher Transfer Out -$45,600 lower Vehicles & equipment -$313,850 lower Capital projects & equipment -$1,102,460 lower Staffing request: Water Utility Expenditure Highlights 15 Job Title Department + / - Water Conservation Specialist Public Works - Water Services + 1 Net increase + 1 •Southwest Gateway Water Tank -$4,000,000 •Well 15 Pump Rehab -$250,000 •MUS Admin Building Roof Replacement -$85,000 •Total cost $170,000, shared with Water Utility $85,000 each •Water Taps/Main Replacements -$125,000 •PCE/TCE Oversight -$100,000 •Water Project Planning -$25,000 Water Utility Capital Projects Additions to the CIP Program for FY 24 $4,585,000 16 •Replace full-size truck for pick and delivery of materials -$60,000 Water Utility Equipment and Vehicle Requests $60,000 17 Water 5 -Year Financial Forecast 18 19 Wastewater Utility Overview Estimated 2021-22 2022-23 2023-24 Wastewater Utility Actuals Actuals Budget Cash Balance Beginning Cash Balance Unreserved 26,591,516 30,397,086 17,843,336 Revenues 19,127,416 19,059,410 19,449,290 Expenditures *15,321,845 31,613,160 22,650,330 Net Difference (Revenues Less Expenditures)3,805,570 (12,553,750) (3,201,040) Restricted Cash Balance - - - Ending Cash Balance Unreserved 30,397,086 17,843,336 14,642,296 Cash Balance as a percentage of expenses:198%56%65% * Actuals include balancing sheet adjustments Estimate Changes in Fund Balance For the Fiscal Year Ended June 30, 2024 With Actuals for FY2021-22 and Year End Estimates for FY2022-23 •Revenues are $389,880 higher than FY 2022/23 estimated actuals •Development Impact fees -$661,550 higher •Customer accounts -$95,330 higher •Sewer tap fees & other revenue -$38,000 lower •Investment earnings -$329,000 lower (due to fluctuations in investment calculations, this item is no longer being included as a budgetary item. Actual interest earnings will be posted according to fund cash balances.) Wastewater Utility Revenue Highlights 20 •Expenses are $8,962,830 lower than FY 2022/23 estimated actuals •Salary & benefits -$774,670 higher Supplies, materials & services -$319,380 higher Transfer Out -$278,720 lower Capital projects & equipment -$9,778,160 lower Staffing request: Wastewater Utility Expenditure Highlights 21 Job Title Department + / - Wastewater Plant Operator Public Works - Water Services + 1 Net increase + 1 •White Slough South Electric Building and Improvements -$5,500,000 •Note: Appropriation approved on April 19 (FY 23 funding) •MUS Admin Building Roof Replacement -$85,000 •Total cost $170,000, shared with Water Utility $85,000 each •White Slough Fencing/Cameras/Solar -$300,000 •White Slough Digester # 3 Rehab -$1,000,000 •Miscellaneous Projects/Planning -$125,000 •Wastewater Taps and Relocations -$75,000 Wastewater Utility Capital Projects Additions to the CIP Program for FY 24 $7,085,000 22 •New portable storm pumps -$90,000 •Plant equipment/pump upgrades-$250,000 •Replace stationary generator -$75,000 •Replace maintenance truck -$115,000 •Replace light duty pick-up truck -$50,000 •Replace full size pick-up truck -$60,000 •Replace utility van -$90,000 Wastewater Utility Equipment and Vehicle Requests $730,000 23 Wastewater 5-Year Financial Forecast 24 •The City is constantly monitoring water supplies and their potential impact on Lodi. •Sufficient supplies through surface and ground water are available to serve the City’s needs. •Both water and wastewater financial plans forecast rate increases of at least 3% for the next fiscal year to keep up with inflation.The current Prop 218 rate plan expires December 31, 2023. 25 Water/Wastewater Additional Information Transit Overview 26 Estimated 2021-22 2022-23 2023-24 Transit Actuals Actuals Budget Cash Balance Beginning Cash Balance Unreserved 2,983,653 1,758,178 1,540,188 Revenues 3,125,293 10,430,540 7,441,380 Expenditures 4,350,768 10,648,530 8,188,200 Net Difference (Revenues Less Expenditures)(1,225,475) (217,990) (746,820) Restricted Cash Balance - - - Ending Cash Balance Unreserved 1,758,178 1,540,188 793,368 Cash Balance as a percentage of expenses:40%14%10% With Actuals for FY2021-22 and Year End Estimates for FY2022-23 For the Fiscal Year Ended June 30, 2024 Estimate Changes in Fund Balance •Revenues are $2,989,160 lower than FY 2022/23 estimated actuals Federal stimulus (CARES) -$1,155,530 lower Federal grants (capital) -$2,951,600 lower Federal grants (Dial-A-Ride) -$688,000 higher FTA –American Rescue Act -$727,000 higher TDA allotment (capital) -$950,000 lower TDA allotment (Dial-A-Ride) -$500,000 higher Prop 1B State of Good Repair -$62,510 higher Transit Revenue Highlights 27 •Expenses are $5,460,330 lower than FY 2022/23 estimated actuals Salary & benefits -$45,000 higher Supplies, materials & services -$145,110 higher Insurances -$31,160 lower (PL/PD costs) Transfer Out -$25,820 higher Capital projects & equipment -$5,645,100 lower •Staffing request: Transit Expenditure Highlights 28 Job Title Department + / - Junior Transportation Planner Public Works - Transit -1 Tranportation Coordinator Public Works - Transit +1 Net increase + 0 •Parking Structure Guard Shack -$85,000 •Park Structure Emergency Lighting Battery Backup Replacement -$80,000 Transit Capital Additions to the CIP Program for FY 23 $165,000 29 •Replace (12) 27’ busses -$3,000,000 (this is being reprogrammed from FY 23) Transit Capital Equipment and Vehicle Requests $3,000,000 30 Overview •Special Revenue Funds •Streets •Community Development •Parks, Recreation and Cultural Services •Library •Capital Outlay •Vehicle/Equipment Replacement 31 Streets Overview 32 Estimated 2021-22 2022-23 2023-24 Streets Fund Actuals Actuals Budget Fund Balance Beginning Fund Balance 14,133,850 17,296,542 8,509,132 Revenues 6,893,133 8,645,820 9,681,830 Expenditures 3,730,441 17,433,230 6,020,930 Net Difference (Revenues Less Expenditures)3,162,691 (8,787,410) 3,660,900 Restricted Fund Balance 294,423 307,134 307,134 Ending Fund Balance Unreserved 17,002,118 8,201,998 11,862,898 Fund Balance as a percentage of revenue:247%95%123% With Actuals for FY2021-22 and Year End Estimates for FY2022-23 For the Fiscal Year Ended June 30, 2024 Estimate Changes in Fund Balance •Revenues are $1,037,730 higher than FY 2022/23 estimated actuals •Federal Grants -$537,490 higher •State Grants -$901,670 higher •Measure K -$477,780 lower •Development Impact Fees -$312,940 higher •Gas Taxes –$125,100 higher •Transfer In -$175,000 lower (FY 23 vehicle purchase) •TDA Allotment -$100,000 lower Streets Revenue Highlights 33 Streets Expenditure Highlights •Expenses are $11,312,300 lower than FY 2022/23 estimated actuals •Salary & benefits -$431,960 higher •Supplies & Services -$62,890 higher •Transfer Out -$33,740 lower •Capital projects & equipment -$11,773,410 lower •Staffing Request: 34 Job Title Department + / - Street Maintenance Worker Public Works - Streets + 1 Net increase + 1 •Harney Lane Widening -$100,000 •Rapid Flashing Beacons -$50,000 •Lodi Ave Signal Coordination -$90,000 •Signal Preventative Maintenance -$250,000 •Annual Pavement Maintenance -$100,000 •Annual Street Striping -$80,000 •Sidewalk Repair -$170,000 •Pavement Crack Seal -$75,000 •Ham/Elm Signal Modification -$250,000 •Concrete Paver Maintenance -$30,000 •Downtown Concrete Cleaning -$30,000 •Reverse Frontage Wall Repair -$25,000 •Project Planning -$25,000 Streets Capital Projects Additions to the CIP Program for FY 23 $1,245,000 35 •Replace Dump Truck -$177,800 •Replace 10-wheel Dump Truck -$250,000 •Replace Roller -$70,000 36 Streets Vehicle Requests $497,800 37 Community Development Overview Estimated 2021-22 2022-23 2023-2024 Community Development Actuals Actuals Budget Fund Balance Beginning Fund Balance 8,389,815 10,069,731 8,606,451 Revenues 4,217,405 2,562,700 2,461,900 Expenditures 2,537,489 4,025,980 4,047,980 Net Difference (Revenues Less Expenditures)1,679,916 (1,463,280) (1,586,080) Restricted Fund Balance 313,055 326,570 326,570 Ending Fund Balance Unreserved 9,756,676 8,279,881 6,693,801 Fund Balance as a percentage of revenue:231%323%272% Estimate Changes in Fund Balance For the Fiscal Year Ended June 30, 2024 With Actuals for FY2021-22 and Year End Estimates for FY2022-23 •Revenues are $100,800 lower than FY 2022/23 estimated actuals •Fees -$79,200 higher •Federal Grants -$94,000 lower •Investment earnings -$86,000 lower (due to fluctuations in investment calculations, this item is no longer being included as a budgetary item. Actual interest earnings will be posted according to fund cash balances.) Community Development Revenue Highlights 38 •Expenses are $22,000 higher than FY 2022/23 estimated actuals •Salary & benefits -$469,010 higher •Supplies, materials & services -$447,010 lower Community Development Expenditure Highlights 39 40 Parks, Recreation & Cultural Services Overview Estimate 2021-22 2022-23 2023-24 Parks, Recreation & Cultural Services Fund Actuals Actuals Budget Fund Balance Beginning Fund Balance 1,578,392 2,406,461 2,199,991 Revenues 9,911,725 7,834,760 8,501,230 Expenditures 9,083,656 8,041,230 9,028,490 Net Difference (Revenues Less Expenditures)828,069 (206,470) (527,260) Restricted Fund Balance 541,978 565,375 565,375 Ending Fund Balance Unreserved 1,864,483 1,634,616 1,107,356 Fund Balance as a percentage of revenue:19%21%13% With Actuals for FY2021-22 and Year End Estimates for FY2022-23 For the Fiscal Year Ended June 30, 2024 Estimate Changes in Fund Balance •Revenues are $666,470 higher than FY 2022/23 estimated actuals •Charges for Services -$517,290 higher •Program Fees were down in FY 21 due to COVID closures •Parks and HSS Rental Income -$49,760 lower •Operating Transfer In -$198,940 higher •Measure L operational support increase: $110,910 Parks, Recreation & Cultural Services Revenue Highlights 41 •Expenses are $987,260 higher than FY 2022/22 estimated actuals •Salaries & Benefits-$845,980 higher •$581,320 Part-Time •Supplies and Services -$141,280 higher Parks, Recreation & Cultural Services Expenditure Highlights 42 Library Overview 43 Estimated 2021-22 2022-23 2023-24 Library Fund Actuals Actuals Budget Fund Balance Beginning Fund Balance 964,226 1,341,123 1,007,863 Revenues 1,662,405 2,178,160 1,816,240 Expenditures 1,285,507 2,511,420 1,848,240 Net Difference (Revenues Less Expenditures)376,898 (333,260) (32,000) Restricted Fund Balance 173,405 180,891 180,891 Ending Fund Balance Unreserved 1,167,719 826,972 794,972 Fund Balance as a percentage of revenue:70%38%44% Estimate Changes in Fund Balance For the Fiscal Year Ended June 30, 2024 With Actuals for FY2021-22 and Year End Estimates for FY2022-23 •Revenues are $361,920 lower than FY 2022/23 estimated actuals •Operating Transfer In -$327,920 lower •$420,000 in FY 23 transfers for capital projects •Fees and Grants -$34,000 lower •Measure L operational support increase: $43,630 Library Revenue Highlights 44 •Expenses are $663,380 lower than FY 2022/23 estimated actuals •Salaries & Benefits -$61,500 higher •Supplies and Services -$13,860 higher •Transfers Out -$251,550 lower •FY 23 transfer out from fund balance to Library Capital •Capital Projects -$486,990 lower Library Expenditure Highlights 45 46 Estimated 2021-22 2022-23 2023-24 Capital Outlay Fund Actuals Actuals Budget Fund Balance Beginning Fund Balance 9,165,505 21,306,662 2,299,182 Revenues 14,685,807 2,765,260 3,499,610 Expenditures 2,544,650 21,772,740 4,150,000 Net Difference (Revenues Less Expenditures)12,141,158 (19,007,480) (650,390) Restricted Fund Balance - - - Ending Fund Balance Unreserved 21,306,662 2,299,182 1,648,792 * FY 22 actuals and FY 23 estimates include ARPA and General Fund surplus budget allocations Estimate Changes in Fund Balance For the Fiscal Year Ended June 30, 2024 With Actuals for FY2021-22 and Year End Estimates for FY2022-23 Capital Outlay Capital Outlay Fund is a grouping of funds for the purpose of managing governmental-type capital projects. These are kept separate from day-to-day operating funds. They consist of: •General Fund Capital •Parks Capital •Developer Impact Fee Capital for Police, Fire, Parks, General Facilities, Neighborhood Parks and Art in Public Places 47 Capital Outlay Revenue $3,499,610 •Developer Impact Fees: $2,068,470 •Transfer from General Fund: $435,000 for General Projects •Transfer from General Fund: $560,000 new revenue for Parks Projects •Transfer from Measure L: $400,000 for Parks Projects 48 Capital Outlay Additions to the CIP Program for FY 24 •General Fund Capital •New animal shelter -$4,000,000 •Parks Capital •Tree trimming -$200,000 49 Vehicle & Equipment Replacement Overview 50 Estimated 2021-22 2022-23 2023-24 Vehicle & Equipment Replacement Funds Actuals Actuals Budget Fund Balance Beginning Fund Balance 1,954,844 2,607,406 3,321,456 Revenues 4,049,958 2,910,750 1,444,670 Expenditures 3,397,396 2,196,700 2,365,280 Net Difference (Revenues Less Expenditures)652,562 714,050 (920,610) Restricted Fund Balance - - - Ending Fund Balance Unreserved 2,607,406 3,321,456 2,400,846 * FY 22 includes recently adopted General Fund surplus alloctions Estimate Changes in Fund Balance For the Fiscal Year Ended June 30, 2024 With Actuals for FY2021-22 and Year End Estimates for FY2022-23 Vehicle and Equipment Replacement Fund is a grouping of funds for the purpose of managing the replacement of items costing more than $10,000 for governmental departments. These are kept separate from day-to-day operating funds. They consist of: •Equipment replacement for Police, Fire, Public Works (Engineering, Facilities), Community Development, Parks and Community Improvement •Information Technology replacement •Vehicle replacement -Police, Fire, Public Works (Engineering, Facilities), Community Development, Parks and Community Improvement Vehicle & Equipment Replacement 51 Revenues for replacement funds come 100% as transfers from operating accounts. •Equipment replacements: $202,000 •Vehicle replacements: $674,960 •Information Technology replacements: $567,710 Expenses for FY 24: •Equipment: $423,980 •Vehicles: $1,088,000 •Information Technology: $853,500 Vehicle & Equipment Replacement Revenue & Expenses $1,444,670 52 Vehicle Replacement Fund 54 Questions?