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CC - Item 2A - Study Session - FY 2024-25 Budget PresentationFiscal Year 2024-25 CITY OF RO`. V MEAD, CALIFORNIA r Proposed Annual Bud Overview Tonight -,June 1 1 , 2024 FY 2023-24 Recommended Budget Amendments FY 2024-25 Operating Budget Housing Development Corporation Budget Capital Improvement Program Budget Next Up - June 27, 2024 Adoption of FY 2024-25 Operating and CIP Budgets Housing Development Corporation Budget GANN Limit Recommended Budget Amendments Fiscal Year 2023-24 ► Budget Transfers Transfer street sweeping services budget from SB 1 (Fund 202) to Gas Tax (Fund 201) in the amount of $115,000. Transfer SB 1383 expense budget from the General Fund (Fund 101) to SB 1383 (Fund 234) in the amount of $181,100. Transfer permitting system budget from ARPA (Fund 228) to Technology Replacement (Fund 505) in the amount of $500,000. 3 Recommended Budget Amendments Fiscal Year 2023-24 ► Budget Increases Increase Prop A (Fund 215) budget relating to excursions ($32,000) and buss pass subsidies ($40,000) for a total amount of $72,000. Increase Prop C (Fund 220) budget relating to salaries and benefits in the amount of $27,600. 4 Recommended Budget Amendments Fiscal Year 2023-24 ► Budget Decreases Decrease SLFRF Revenue Loss (Fund 233) for Public Safety Center upgrades and City Hall renovations project which is already budgeted in ARPA (Fund 228). The decrease amounts to $2,150,000. Decrease ARPA (Fund 228) budget relating to project management of ARPA capital projects in the amount of $170,000. This reduction is to better align budget with anticipated expenses. 5 Recommended Budget Amendments Fiscal Year 2023-24 ► Transfer of Funds from General Fund to Internal Service Funds • Transfer $500,000 from the General Fund (Fund 101) to the Equipment Replacement Fund (Fund 501) to better support future vehicle and equipment replacements. • Transfer $500,000 from the General Fund (Fund 10 1) to the Information Technology Fund (Fund 50 1) to better support future computer, server, software purchases, including the purchase of the permitting system. o Transfer $2,000,000 from the General Fund (Fund 101) to Public Facilities (Fund 510) to support the future cost of building and infrastructure replacements and purchases. 0 Recommended Budget Amendments Fiscal Year 2023-24 ► Impact on General Fund o Overall the recommended budget amendments would result in a projected ending General Fund — Fund Balance of $32,423,200for fiscal year 2023-24which is slightly less than the fiscal year 2022-23 ending fund balance of $32,430,433. The difference is approximately $7,200. Proposed Budget Fiscal Year 2024-25 ► Recommended Staffing Changes of Full -Time Positions ► Budget Overview —All Funds ► Budget Overview —General Fund ► Estimated Revenues ► Discussed Proposed Budget Expenditures ► Discuss Department General Fund Budgets ► Discuss Capital Improvement Program (CIP) 0 Summary of Full Time Positions Authorized Authorized Authorized Authorized Proposed 2007-08 2021-22 2022-23 2023-24 2024-25 Administration 8 9 9 9 9 City Clerk 2 3 3 3 3 Finance 5 6 6 6 6 Public Safety 11 8 8 8 8 Public Works 19 21 24 25 25 Parks & Recreation 12 8 8 8 8 Community Development 10 5 12 14 14 67 60 70 73 73 Proposed Position Changes Delete 1 CD Deputy Dir of Comm Dev MMPC $ 122,400 -5159,696 Add 1 CD Planning & Econ Dev Mgr MMPC $ 102,552 -5133,900 Delete 1 CD Associate Planner MMPC $ 73,584 - $ 96,000 Add 1 CD Senior Planner MMPC $ 89,172 -5116,352 Delete 1 CD Assistant Planner REA $ 64,812 - $ 84,552 Add 1 CD Associate Planner MMPC $ 73,584 - $ 96,000 The overall position changes do not result in a net increase of budget positions for the Community Development department. Anticipated cost savings of $8,600 i Budget Overview — All Funds Revenues Surplus/(Deficit) Surplus/(Deficit) $41,584,100 $6,073,800 ($1,575,467) 10 Budget Overview — General Fund Revenues Recurring Expenses C Irr►II Ic // Ilnfinitl Line - lime Expenses CI P Prn is rtc \I IrnI Ile /I I IATIPITI $30,120,000 $31,123,100 3% $28,359,900 $30,496,850 8% t7 /F.11 71111 $1,077,900 <97A a1 E; 1711 t I—L_C1 $596,850 -45% 07L WI 10 10 1 Budget Overview — General Fund FY 20-21 Total General Reserves $ 25,587,612 Reserves %of Next Yr Expense 91% Balance at 40.1 Reserve Level 11,235,640 Reserve above 40% level 14,351,972 V$35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 FY 21-22 $ 28,556,266 102% 14, 020, 258 14, 536,008 FY 22-23 $ 32,430,433 101% 11, 885, 086 20, 545, 347 Total General Fund Reserves FY 23-24 B $ 32,423,802 92% 12, 437, 480 20, 400, 238 FY 24-25 B $ 32,453,202 92% 12,474,586 19, 978, 616 FY 2 0-2 1 FY 2 1 -22 FY 22-23 FY 23-24 B FY 24-25 B . 12 IMA Proposed ?e..eh 1 le 13 Revenue Summary by Fund General Fund 38,924,810 30,120,000 20,702,494 31,123,100 Gas Tax 1,349,180 1,465,600 1,134,777 1,535,100 RMRASBI 1,202,337 1,273,700 960,542 1,371,100 Local Transportation (TDA) 50,998 50,000 59 50,000 Proposition A 1,462,262 1,486,900 1,186,700 1,536,400 Proposition C 1,251,481 1,241,000 1,019,979 1,306,600 Measure R 944,105 923,000 763,123 982,900 Measure M 1,072,159 1,048,000 882,869 1,132,900 Measure H - - - - American Rescue Plan 340,931 885,400 665,400 Measure R Highway Capital 118,740 - (7,254) - AirQualityManagementDistrict 74,734 75,000 44,251 79,100 Clean Water 576,721 572,500 17,237 604,700 Grant Fund 334,841 138,000 1,400,858 385,000 State & Local Fiscal Recovery Funds 7,647,217 - - 410,000 SB 1383 - 265,000 272,246 265,000 Street Lighting District 1,510,069 1,407,100 1,245,209 1,566,100 Development Impact Fees 361,058 98,000 270,370 286,000 CDBG 887,736 1,431,600 892,625 761,700 HOME 60,017 2,743,700 310,535 2,908,700 Internal Services 8,512,244 50,000 297,746 688,100 Total City Revenues 66,681,641 45,274,500 31,394,366 47,657,900 14 General Fund Revenue Assumptions ► Major revenue sources— Property Tax, Property Tax In -Lieu — will continue to increase —Estimates provided by HdL Companiesand in line with current trends ► Sales tax increase ► TOT continuingto be above to pre -pandemic levels ► Development permits back to more normal levels ► Recreation related revenues continuing to rebound ► Use of money and property flattening due to anticipated interest rate decrease. 15 Taxes Intergovernmental Permits, Licenses, Fees Fines &Forfeitures Use of Property Charges for Services Miscellaneous Donations Transfer In Total General Fund Revenues 23,039,366 346,531 4,514,892 572,478 1,432,234 1,348,454 250,281 22,274 7,398,300 38,924,810 22,911,000 254,100 3,414,800 574,300 1,524,100 1,393,900 13,300 34,500 14,733,823 222,301 3,083,851 440,849 1,216,846 977,675 11,163 15,984 23,959,800 359,700 3,395,900 624,800 1,385,800 1,355,200 15,100 26,800 r 30,120,000 20,702,494 31,123,100 5% 42 -1% 9% -9% -3 14% -22% 3% 16 17 Expenditure Assumptions/Inclusions ► 3 position changes proposed ► Salaries budgeted at current step plus any merit increase due during the year with a 3% COLA ► PERS Unfunded Accrued Liability assumes prepayment amount of $837,870. ► Sheriff Contract increase of 3.44% to cost with an additional increase of 0.5% due to increase in liability cost ► Property Services Maintenance cost increasing — Grounds repair and maintenance, bridge repair and maintenance, street sweeping, etc. 18 Operating Expenditures Summary by Fund General Fund 24,093,355 27,712,200 19,392,631 29,618,900 7% Gas Tax 620,837 1,243,600 i 521,512 1,145,500 -8% RMRASBI 158,827 34,300 25,566 50,000 46% Local Transportation (TDA) - 51,000 bho - - -100% Proposition A 1,251,280 967,500 791,603 501,200 -48% Proposition C 39,589 731,500 211,824 1,055,200 44% Measure R 176,237 416,000 49,969 52,600 -87% Measure M 15,318 281,300 23,975 33,300 -88% Measure H 5,000 - - - American Rescue Plan 170,989 379,000 295,840 485,400 28% Air Quality Management District 15,389 122,600 35,075 242,600 98% Safe Clean Water 281,946 530,000 222,477 127,500 -76% Grant Fund 74,093 348,000 36,963 138,000 -60% State & Local Fiscal Recovery - 1,400,000 - - -100% Street Lighting District 870,083 1,013,600 684,675 1,623,300 60% * CDBG 461,823 1,989,300 312,522 1,141,900 -43% HOME 75,588 2,181,100 30,375 2,743,700 26% Tech/Equip Replacement 119,876 127,500 26,737 50,000 -61% Total Operating Expenditures 28,430,229 39,528,500 22,661,745 39,009,100 -1% 19 General Fund Expenditures by Department Legislative 669,885 814,100 551,338 909,500 12% City Clerk 1,128,252 1,299,700 1,077,266 1,243,600 -4% Administration 1,242,379 1,385,900 1,009,982 1,692,400 22% Finance 865,419 1,002,200 856,902 1,066,600 6% General Services 960,618 1,145,200 933,210 1,120,300 -2% Public Safety 10,860,000 12,897,900 8,571,081 13,097,700 2% Public Works 3,954,745 4,385,500 3,034,528 4,442,800 1% Parks & Recreation 3,285,212 4,030,500 3,123,170 4,553,500 13% Community Development 2,230,697 2,476,800 1,556,158 2,617,300 6% Total General Fund Budget 25,197,207 29,437,800 20,713,634 30,743,700 4% 20 Council/Commission/City Attorney Overview 1105 - City Council 399,127 410,800 505,200 94,400 23% 1110 - Commissions 28,114 53,700 54,700 11000 2% 1120 - City Attorney 242,645 349,600 349,600 - 0% Tota 1 669,885 814,100 909,500 95,400 12% Significant Changes: ► Increase to council member compensation and benefits - $34,700. ► Increase to legislative advocacy - $55,000 City Clerk Overview — General Fund 1115 - City Clerk 462,755 1320 - Risk Management 657,506 Tota 1 11120,261 Sign ificantChanges: ► Increases primarily attributable to normal merit and COLA increases. ► Increase of $42,700 in Insurance Premiums offset by recovered cost relating to worker's compensation charged to receiving departments. 687,100 612,600 1,299,700 636,700 606,900 1,243,600 (50,400) (5,700) (56,100) 22 Administration Overview—General Fund City Manager's Office 110131448 8771200 111201200 2431000 28% Human Resources 3031784 5071900 5721200 641300 13% Information Technology (74,852) 800 - (800) -100% Tota 1 112421379 113851900 116921400 3061500 22% Sign ificantChanges: ► Increases primarily attributable to normal merit, COLA increases, and changes in personnel. 23 Expenditure Ir OSE EAD FY 2023 Actuals FY 2024 Budget FY 2025 Proposed $ Change % Change 4 YEAR EXPENDITURE HISTORY 1,066,600 l,00z,zoo 822,108 865,419 2022 2023 20248 20258 General Services Overview — General Fund General Services 960,618 11145,200 11120,300 Sign ificantChanges: ► OPEB Trust Contribution to match actuarial recommendation - $68,000. ► Eliminate prior year supplemental budget relating to temporary services — ($100,000). (24,900) -2% 25 Public Safety Overview — General Fund Expenditure IFY 2023 IFY 2024 IFY 2025 $ Change % Change Actuals Budget Proposed Public Safety 1018601000 1218971900 1310971700 1991800 2% SignificantChanges: • • ► Sheriff Contract -The public safety contract with the Los Angeles County Sheriff's Department increased 3.44% plus an increase in liability expense from 12% to 12.5% for FY 2024-25. Netted against the removal of prior one-time expenses the total contract cost is $100,500 more than the FY 2023-24 budget. ► Increases to animal control service contracts relating to SGVCOG Neighborhood Program, VIDA, Rosemead Animal Hospital, Stiles - $23,000. ► One-time supplemental budget - $30,000 for Local Hazard Mitigation Plan 26 Expenditure Art Al. OSE EAD 0 FY 2023 FY 2024 FY 2025 Actuals Budget Proposed $Change %Change 1))954745 4385500 4442800 57300 '. 4 YEAR EXPENDITURE HISTORY 3,954,745 3,854,930 2022 2023 4,385,500 4,442,800 J 2024 B 2025 8 Parks & Recreation Overview — General Fund Parks and Recreation 31484,762 41030,500 41553,500 Sign ificantChanges: ► Aquatics -request additional $40,200 for increased costs for services and routine maintenance. ► Special events - $26,200 for drum risers for stage, generators, a new small stage, and tables. ► Community Events - request additional $38,500 to cover increased cost of supplies, materials, and new events such as a Summer Kickoff and Movies in the Park. ► Increase in part-time for budget in the amount of $107,000 for increased Park Ranger hours. 523,000 13% 28 Community Development Overview — General Fund Community Development 2,230,697 2,476,800 2,617,300 140,500 6% Sign ificantChanges: ► Various positions changes amount to a cost savings of $8,600. ► Taste of Rosemead - $20,000 29 Housing Development Corporation Expenditure 9951643 8681400 9391520 711120 8% Revenues 4971304 4971300 4981400 11100 0% S/ASubs idy 5201694 4371800 5021342 641542 15% Balance 221354 661700 611222 (5,478) -8% Sign ificantChanges: ► New property management company managing both Angelus and Garvey Senior Housing properties. 30 FY 2024-25 Proposed Capital Improvement Program (ciP) CIP Project Summary New Projects 2 $643,000 Additionsto Current Projects 22 410911267 Annual Projects 4 219151000 Current Projects 34 4219211183 Total 40 $50,570,450 Parks & Fa( Other, 4% Streets Parks & Facilities Other Totals 41,495,850 5,590,000 1,760,000 48,845,850 110001000 1,939,000 150,000 310891000 42,495,850 7,529,000 119101000 51,934,850 32 CIP by Funding Source General Fund 101 214,915 - 214,915 Gas Tax 201 1,316,500 275,000 1,591,500 RMRAS61 202 886,800 1,400,000 2,286,800 TDA 3 205 - 50,000 r 50,000 Prop C 220 1,575,000 700,000 2,275,000 Measure R 225 674,366 1,154,200 1,828,566 Measure M 226 1,271,100 500,000 1,771,100 SLFRF-Categorial 228 3,200,000 50,000 3,250,000 Measure RCapital 229 26,754,676 - 26,754,676 Measure W 231 208,794 - 208,794 Gra nts 232 356,972 113,000 469,972 Street Light District 245 2,419,208 2,008,200 4,427,408 DIF -Traffic 250 50,000 - 50,000 DIF - PublicSafety 251 10,000 - 10,000 DI F - Gen'I Govt 252 75,000 - 75,000 DIF - Parks 253 75,000 - 75,000 SLRF- Categorical 288 800,000 - 800,000 Technology Replacement 505 800,000 70,000 870,000 Public Facilities 510 2.232.853 1.328.867 3.561.720 33 CIP — New Projects — $643,000 15 Protective Barriers for $270,000 Public Facilities $64,000 Unattended Spaces 38 Roof and AC Replacements at Various City Facilities 373,000 Public Facilities Grants 260,000 113,000 34 CIP — New Project #1 15 Protective Barriers for $270,000 Public Facilities $64,000 Unattended Spaces --- If 35 CIP — New Project #2 38 Roof and AC Replacements at Various $373,000 Public Facilities $260,000 City Facilities Grants 1131000 36