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Home My WebLink AboutProposed FY 2022/23 Budget Review 2000 Main Street, Huntington Beach,CA 92648 _ r City of Huntington Beach File #: 22-399 MEETIN DATE: 5/17/2022 Proposed FY 2022/23 Budget Review City of Huntington Beach Page 1 of 1 Printed on 5/11/2022 10 powered by LegistarTM wATINGTp (� T ► �N0OPORAFo City of Huntington Beach = Proposed FY 2022/23 Budget Review City Council Study Session F F - = o O� May 17, 2022 B. 17 1 q 09 P `� C_ 00UNT`I cP� Presentation Overview • FY 2021/22 General Fund Budget Update • Proposed FY 2022/23 General Fund Budget Review • Proposed FY 2022/23 Capital Improvement Budget Review • Key City Council Policy Considerations for FY 2022/23 • Next Steps — FY 2022/23 Budget Approval tt--��NT I Nor O` MCOIIYOM.IT°0 _ F9fT � _ x SUPPLEMENTAL COMMUNICATION DUN" 2 Meng Ike: ��/Z132,22- Ages ram No.: ss #1 , as -3�i9� \\NT I N G To �pRPORAT _- `1 = FY 2021/22 General Fund -;�;- Q Budget Update �� _ ?^ B. 17, 19 Z P `� c�IJNT`I CPS Economic Overview & Local Budgetary Impacts • Economic trends indicate a continued economic recovery from the financial impacts of COVID-19,but a recent decline in GDP signal caution ➢ U.S.real GDP increased 2.3%in Q3 2021,6.9%in Q4 2021,-1.4%in Q1 2022 Slight decline in the last quarter due to Omicron restrictions in some parts of the country and a scale back of government assistance payments ➢ According to UCLA Anderson Forecast(April 2022)—Orange County Labor markets and tourism is nearly restored to pre-pandemic levels and is expected to continue with a strong outlook Development surge is expected to continue Housing will face some headwinds due to recent steep price escalation • As we emerge from the economic impacts of the pandemic,the City is monitoring recent developments in the economy: Russia/Ukraine Crisis r�NTINGLO ➢ Inflation&Prices pF \NCOFFUB4IF� �Y� ➢ Supply Chain Challenges F9� ➢ Rising Interest Rates ➢ Labor Shortages ��DUNTY rt. , City Budget & Fiscal Position We are projecting a FY 21-22 surplus with modest surpluses over the next four years as a result of key financial decisions made by City Council and the ongoing recovery from the COVID-19 economic downturn. ➢ FY2020-21 concluded with a$5.2M surplus, after year-end transfers($10.9M surplus prior to transfers) • City Council approved additional investments of$4.4M into capital infrastructure and$1.3M of essential capital equipment needs from the year-end surplus. FY2021-22 is projected to conclude with a$3.4M surplus(subject to change) ➢ Historic Infrastructure Investments in FY2021-22 ➢ General Fund transfer to the Infrastructure Fund increased by 130%to$11.5M. ANT I NGTA, ➢ CIP budget increased 57%to$39.3M NGCRYUgq)E O'v� U 2 ➢ Additional One-Time Funding -- ➢ City received$29.6M through the American Rescue Plan Act. City Council approved an expenditure plan to invest funds in projects. cF�DUNTV s vNT I N G T� (� �pRPORgT Proposed FY 2022-23 General Fund Budget Review �j� B• 11, 1909 P `� ��IJNT`I cP� FY 2022/23 General Fund Proposed Budget Review • Proposed FY 2022/23 General Fund Budget is structurally balanced,with a projected $1 M surplus General Fund(Fund rr Proposed (in thousands) Revenue(Recurring) $253,552 Personnel Costs 169,892 Operating Costs 48,217 Non-Operating Costs* 34,403 Total Expenditures 252,512 Surplus $1,040 Includes Debt Service,Capital Expenditure,and Transfers • Continued Infrastructure Investments in FY2022/23 > General Fund transfer to the Infrastructure Fund increased by 17%to$13.5M ➢ CIP budget increased 52%to$59.7M FY 2022/23 General Fund Proposed Revenues - $253.6M Revenue from Other Charges for Current Other Revenue Non-Operating Revenue Services 0.6% 0.2% Agencies 10.3% 1.1% Use of Money&Property 6.7% Fines&Forfeitures Property Tax 1.8% 38.8% License&Permits 3.2% Utility Users Tax 7.3% NT GT A I N Transient Occupancy Tax � 0jjj 5.7% Oct \Ncosroeq reo F9 Franchises 3.4% Sales Tax CD 21.0% FB r,00 V CPS 8 FY 2022/23 General Fund Budget Revenues - $253.6M • General Fund revenues anticipated to increase by$8.3 million General Fund Revenue(in millions) $260 $253.6 QcoveN +3 A% $250 EconOm�c R $2as.3 Oec/it' +3 5% $240 $236.0 CO��tO +5.2% 5237.0 $230 0$225.2 $220 $210 � WING Tpy O rc°xv°xnrea $200 _ Cy FY18/19 Actual Pre- FY19/20 Actual FY20/21 Actual FY21/22 Projected FY22/23 Proposed - COVID �U1UNT1 CPS 9 FY 2022/23 General Fund Budget Revenues - $253.6M • Major revenue variances include: ➢ Property Tax: $98.3 million (5.7%or$5.3 million increase) Higher assessed valuations as of January 1, 2022 versus prior fiscal year ➢ Sales Tax: $53.3 million(2.1%or$1.1 million increase) - Increase due to strong consumer demand across all industry groups and increased prices ➢ Transient Occupancy Tax: $14.5 million(8.2%or$1.1 million increase) - Reduced travel restrictions expected to fuel increased local tourism to Huntington Beach, exceeding pre-COVID-19 revenues of$14 million in FY2018/19 ➢ Revenue from Other Agencies: $2.7 million(-26.7%or$1 million decrease) - Strike team reimbursements are not included in the FY2022/23 budget, but are included in the FY2021/22 projected revenues ➢ Charges for Current Services: $26 million (4.9%or$1.2 million increase) - Primarily attributed to increases in Emergency Medical Services Transports and Billing Rates Fee Adjustment Update • The FY 2022/23 Proposed Budget does not include revenues from potential fee adjustments • March 1, 2022-City Council directed staff to review the Master Fees and Charges Schedule and review the results with the Finance Commission for recommendation prior to City Council Consideration. • March to May-Finance staff is working with the City's fee consultant and other departments to develop recommended fee adjustments based on CPI adjustments and market rate analysis • May 25, 2022—Finance Commission meeting to review potential changes to the Master Fees and Charges • June 7, 2022—Review fee adjustment recommendations with City Council for consideration %11NGro �4 Mc°avongrEa �� C OOUNTY FY 2022/23 General Fund Proposed Revenues �(,in thousands) Property Tax 92,938 98,259 5,321 5.7% Sales Tax 52,265 53,343 1,079 2.1% Franchises 8,536 8,604 68 0.8% Transient Occupancy Tax 13,371 14,471 1,100 8.2% Utility Users Tax 18,457 18,457 - 0.0% License&Permits 8,016 8,201 185 2.3% Fines&Forfeitures 4,516 4,534 18 0.4% Use of Money&Property 16,807 16,887 80 0.5% Revenue from Other Agencies 3,712 2,721 (990) -26.7 �OIIYORAr % t�uN11NGjOynn O\ NfO v Charges for Current Services 24,820 26,026 1,207 4.9% 9 c.� x Other Revenue 1,368 1,604 235 17.2% - Non-Operating Revenue 446 444 (2) -0.4% Total 245,261 253,552 8,302 3.4°k FOOUNTY CP�� iz FY 2022/23 General Fund Proposed Expenditures - $252.5M USES OF FUNDS BY DEPARTMENT Transfers* Public Works Other— Administrative Community 11.6% 8.3% 3.0% Services Development 4.0% 4.1% Debt Service Community& Library Services 7 4% 5.7% Finance 2.6% Polim 31.9% Operating Expenses Personnel Fire 19.1% Services 20.8% 61.9% Non-Departmental 19.6% Transfers include Infrastructure,Equipment,General Liability& "Other includes City Council,City Manager, Section 115 Trust Transfers City Attorney,City Clerk,and City Treasurer Recommended FY 2022/23 Authorized Positions • Staff is proposing 4 new General Fund positions in the FY 2022/23 Budget: City Clerk Department — (1) Records Specialist to manage public records requests City Manager Department — (1) Executive Assistant to provide administrative support to the City Manager and Assistant City Manager—restore eliminated position — (1)Social Worker to assist with the growing Homeless caseload within the Homeless and Behavioral Health Division — Transfer non-sworn Homeless and Behavioral staff from the Police Department to the City Manager's Office Finance Department <��NTINGT� Ol \MtOM04)FO — (1)Accounting Technician II to process accounts payable invoices and serve as v a concierge at City Hall—partially restore accounts payable position eliminated as part of SIP ram„ Q q�Cr fFell.1909.i� \�QQ COUN P� 14 Recommended FY 2022/23 Authorized Positions • Staff is proposing a net addition of 5 Other Fund positions in the FY 2022/23 Budget: Public Works Department Position Reductions(3) — Eliminate(2)Water Meter Readers and(1)Water Meter Repair Technician due to implementation of the Automated Water Meter Infrastructure. Position Additions(7) — Add(1)Field Service Representative, (1)Water Distribution Maintenance Leadworker, (1)Water Equipment Operator, (1)Water Systems Technician III,and(1)Water Utility Locator to enhance water system maintenance,focus on air quality mandates and Water Production and Flood Control reporting, and address the high volume of service requests. — (1)Traffic Maintenance Service Worker to improve traffic signal maintenance response — (1)Contract Administrator to administer construction contracts within the approved Capital Improvement Program(CIP) Finance Department — (1)Senior Accounting Technician in the Finance Department to provide customer service, billing, and system maintenance and implementation support for the City's municipal services team(water,sewer, and trash) FY 2022/23 Full Time Equivalent — All Funds 1.000.00 Proposed 995.00 Budget Pre-COVID 089.75 990.00 987.25 986.25 986.25 986.25 985.00 983.75 �/"•�-- 980.75 980.00 978.25 975.00 972.75 970.00 965.00 960.00 958.25 955.00 Restructure 950.00 Plan FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 16 Pension Update • March 2021, City Council approved refinancing 85% of our pre-existing pension debt at a historically low interest rate of 2.925% allowing the City to save 166_7 million during the next 24-year period • HB's annual pension payments are anticipated to be up to $17.4M less than if we did not refinance • FY22/23 Pension Payment $28M vs. $37.7M yielding $9.7M Savings! • CaIPERS return in FY20/21 was 21.3%: ✓ CaIPERS Funding level 102.8%vs. 76.7%funded ✓ No UAL payment required in FY23/24 • Refinancing will be the better option as long as in the long term CaIPERS is able to maintain a market rate of return greater than 2.925% (CaIPERS target 6.8%) • As part of our pension debt refinancing plan, the City also adopted an Unfunded Accrued Liability Pension Funding Policy, which mandates that we set-aside additional funds to payoff any new future pension debt • A$1.4 million transfer is included in the proposed FY 2022/23 budget to prefund pension liabilities via our Section 115 Trust Pension Payment Comparison with and without Refinancing Pension Payment Amounts FY 2021122-FY 2030131 50 45 - 40 - 35 No UAL Future UAL payments dependent on CaIPERS return 30 21.3%CaIPERS c Return FY20/21 2.5 20 is 10 5 0 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 UAL 5,471,553 5,471,553 0 5,471,553 5,471,553 5,471,553 5,471,553 5,471,553 5,471,553 5,471,553 POB 22,571,894 22,571,365 22,569,834 22,576,076 22,569,314 22,573,775 22,568,519 22,571,680 22,570,145 22,570,992 --- UAL $34,914,927 $37,718,694 $39,496,628 $41,460,002 $40,678,545 $41,846,298 $43,012,009 $43,045,744 $44,244,443 45,476,104 w/0 POB 18 Financial Outlook General Fund(Fund 100) Projected Projected Projected Projected Projected Revenue(Recurring) $245,251 $253,552 $257,487 $261 997 $266 605 Personnel Costs 164,431 169,892 171,090 173,566 176,032 i Operating Costs 43,658 48,217 49,618 51,085 52,577 Non-Operating Costs* 33,767 34,403 35,735 36,339 36,991 Total Expenditures 241,856 252,512 256,443 260,990 265,600 Surplus $3,395 $1,040 $1,044 $1,007 $1,005' 'Includes Debt Service,Capital Expenditures,and Transfers vNT I N G TO �ORPORgT �N Fo FY 2022/2023 _ Capital Improvement r = Program (CIP) Review — —`-- Ilk- �j� B• 11, 1909 P `� CpUNTy �p�- STRATEGIC PLAN GOAL � Pl R[ CKnRRV - 1 INFRASTRUCTURE AND PARK IMPROVEMENTS NT I NGTO �` \HCOP/ON4TE �� 9 UNTY CPS\ ACCOMPLISHMENTS • Drainage and Stormwater 5 projects $2M • Facilities 20 projects $6M • Neighborhood 7 projects $11 M • Parks and Beaches 20 projects $11 M • Sewer 4 projects $9M • Streets and Transportation 26 projects $15M • Water 9 projects $8M STARTED OR COMPLETED 91 OF 105 PROJECTS VALUED AT $62M! ACCOMPLISHMENTS FACILITIES • Rodgers' Senior Center Site Development ($2.4M) in progress • HCP Sports Complex Lighting ($477k) • Replace R22 AC Equipment ($150k) r f � � r fhot. Rooftop chiller _.. 23 ACCOMPLISHMENTS PARKS & BEACHES • Bluff Top Park Improvements ($3.5M) 1 c • Phase 1 Railing — complete ` • Phase 2 Path - underway w t. a ACCOMPLISHMENTS PARKS & BEACHES • Central Park Restroom ($600k) • Central Park Playground Equipment ($1.3M) • Lake Park Improvements ($650k) • Beach Parking Lot ($1.5M) r ACCOMPLISHMENTS STREETS (AVG PCI = 79) y • Rehabilitating 2 miles of arterials ($5.4M) • Springdale/Edinger/Saybrook/Newland/Warner • Zone 5 Maintenance (Completed 11 of 12 Zones) - • Overlay 8 miles of residential streets ($3.1M) :� Construction in April • Slurry 7 miles of residential streets ($500k) Construction in April. • Added over 200 new ADA ramps ($1 M) ACCOMPLISHMENTS SEWER • Slater Lift Station Rehab completed • Saybrook Lift Station nearly complete ($9.5M) • Sewer Lining ($1.OM) llfi � 27 ACCOMPLISHMENTS WATER • EdwardsNarsity Watermain Project ($2.5M) t 4 iM� III Y K y 40e sae 7 r i 28 FY 22/23 CIP BUDGET ➢Budget ➢New Appropriations: $ 60 M ($25M 2 yrs ago) ➢Continuing Appropriations: 6 M Total $ 66 M ➢Funding sources proposed: ➢General lnfrastructure Fund ➢Enterprise Funds (Water and Sewer) ➢Special Revenue Funds (Measure M, Gas Tax, Prop 42, RMRA, AQMD, PEG, Park & PD DIF, Quimby) ➢Grants (CDBG, Prop 68) i CIP FUNDING SOURCES Capital Improvement Program FV 2022/23 New Appropriations by Funding Source $59,680,511 Water Funds RMRA Park Funds Gas Tax/Prop 42 6% g% 2i S% C,rants/O'. Zt'- Infrastructure Measure M Fund 4% 35% Sewer Funds 14% 30 STORM DRAIN INFRASTRUCTURE 114 Miles of Pipelines 5.3 Mi. of Open Channels 15 Flood Control Stations 1,847 Catch Basins 1,128 Manholes DRAINAGE $12.8M • Heil Avenue Storm Water Pump Station $11 M • Repairs to Channel C6 SC1 $120k • Storm Drain PS Building Improvements$300k • Storm Drain PS Forebay Improvements$300k o� • Half Round Grates$300k • McCallen Storm Drain Trash Removal$810k �. �, FACILITIES INFRASTRUCTURE .. „ . 8 Fuel Islands 300+ Facilities/Structures ,T (Community Centers, Fire Stations, Restrooms, Pier, Libraries, Senior Center etc.) 16 Underground Fuel Tanks FACILITIES $13.2M • Joint Youth Training Center$2M • Central Library Children-Teen Concept Plan $350k • Oak View Community Center Rehab $2M • Warner Parking Lot Rehab$340k • Civic Center UST Replacement$1.2M • Civic Center Generator and Main Switchgear$1.4M • Roof Replacement City Yard Bldg "A"$155k dM —IX 1 FACILITIES (Cont.) • PD Heliport Hangar(Design) $200k • PD Comm. Center Remodel $1.21VI • PD Traffic Office Remodel $415k • PD Women's Locker Room (Design) $145k • Replace R22 AC Equipment$165k • World Skatepark Development Planning $750k • Oil Production Abandonment$750k �v IN NEIGHBORHOOD INFRASTRUCTURE AM "Wz 316 Miles of Residential Streets 33 Miles of Alleys (HB to Yosemite) 1 , 632 Miles of Sidewalk/Parkway 4,430,000 SF of (HB to Provo Utah) Parking Lots NEIGHBORHOOD $4.2M • Residential Curb Ramps $665k • Residential Overlay $3.5M Lj i M Zone 2 r� 37 PARKS AND BEACHES lie- 3.6 Miles of Beach 1.5 Miles of Beach/Sunset Beach (Beach Boulevard to (Warner to Anderson Street) Seapoint) 70+ Parks PARKS AND BEACHES $2.4M • Huntington Bluffs Stabilization Project $400k • Carr Park Improvements (Design) $355k • Edison Park Reconfiguration (Design) $475k • Playground Equipment $750k Huntington Central Park at Slater • Marina Park Reconfiguration (Design) $440k I � SEWER INFRASTRUCTURE MipTZM'AI 9(M n15CAC iN 52,000 JCP. .,F q9 Service Laterals L _ .;; CCTV Sewer Mains 360 Miles of Pipelines 5. 27 Lift Stations 7,700 Manholes SEWER IMPROVEMENTS $8.2M • Sewer Lift Station Improvements $4.9M • Sewer Lining —Various Locations $1.4M • Edinger Sewer, Murdy Channel $1.9M i .,m.t. 41 STREETS AND TRANSPORTATION 100 Miles of 316 Miles of Residential Streets 33 Miles of Alleys Arterial Streets (HB to Yosemite) 4,430,000 SF of 3,765 Park, Parking Parkin ` g Lots Lot, & Street Lights 78 Miles of Bike Lanes 19 Miles of Bike/Pedestrian Paths 143 Signalized Intersections G; STREETS & TRANSPORTATION (CONT.) (86-100) Good I 2008 2006 i 2008 2010 2012 2014 2016 2018 2020 (75-85) KVAH ! 54.1 642 j 64.7 76.4 76.4 76.5 74.7 I 76.1 80.2 Fair (60-74) ....._..__........_._.......:-............__................._:......._.............__........--.........._...................._........................._...................................._'.....................................a._...._............_....._...;...._.........._.._......._....:.._...___ Local ; 68.1 64.0 62.6 71.6 72.1 78.7 77.6 1 76.5 77 Citywide 77.976.9 Poor (41-59) STREETS & TRANSPORTATION $16.9M • Arterial Rehabilitation $5.6M • Arterial Beautification $1 M • Downtown Revitalization Improvements $1.8M • Downtown Street Lighting $650k • Fiber Optic Projects $1.1 M (Garfield, Gothard, Central Library, Bella Terra PD Substation) Arterial Rehab—Before Arterial Rehab—After 44 STREETS & TRANSPORTATION (CONT.) • Heil Fire Station Signal Improvements $290k • TS Synchronization — Bolsa $20k • Bridge Preventive Maintenance Program $500k • Bridge Rehabilitation $3.8M • Goldenwest Median Turf Replacement $175k • Citywide Mobility and Corridor Improvements $2M p� y A" as WATER INFRASTRUCTURE 5 611 Miles of Large & 1 5 Distribution Mains 20 Miles of Shared 10 Wells (8 Active) Mains 17,749 Valves 53,091 Meters 4 Reservoirs - 55 MG Storage 5,801 Hydrants WATER IMPROVEMENTS $3.3M • Water Well No. 9 Roof Redesign Project $468k • Water Well No. 4 Facility Upgrades $1.5M • Water Main Replacement Projects $1.25M • Water Production Building Rehabilitation $83k '; 7 ' a �N1 i N G T� ,p9PORAT . = Key City Council Policy Considerations for FY 2022/23 ?� 6, 17, 1909 P �` C_ "oUNTy �P�, City Council Policy Direction Needed • There are several possible budgetary adjustments that require additional City Council deliberation 1)American Rescue Plan Act 2) Review of Projects Requiring Additional Funding 3)Circuit Ride Share Program NI I NGT0 OF N'ORP �TfO�61 n c.� x 92c��UNTY CP�\�OQ a9 American Rescue Plan Act • The$1.9 trillion American Rescue Plan Act(ARPA)delivered$350 billion to state,local,territorial, and tribal governments in response to COVID-19. • Huntington Beach will be receiving$29.6 million,split into two equal payments: — $14.8 million was received in May 2021 — $14.8 million allocation payment is expected in May 2022 • On September 7,2021,City Council approved an ARPA spending plan. • Under ARPA guidelines,the City has identified$52.7 million in lost revenue allowing the City broad latitude to deploy the funds for governmental services. • Recent efforts on the Federal level have been made to claw back unspent ARPA payments. Those efforts were unsuccessful. • To minimize the risk of future claw back efforts,staff recommends the ARPA funds be fully expended for eligible police and fire personnel costs in FY 2022/23. • General Fund budget savings will be available to fund a newly established Huntington Beach Recovery Reserve to accomplish City Council's priorities approved on September 7, 2021. FY 2022/23 General Fund Proposed Budget with ARPA Change • Proposed FY 2022/23 General Fund Budget with ARPA administrative change and establishment of Huntington Beach Recovery Reserves General Fund(Fund 100) (in thousands) Revenues(Recurring) $253,552 ARPA Funds 29,607 Total Revenues 283,159 Personnel Costs 169,892 Operating Costs 48,217 Non-Operating Costs 34,403 HB Recovery Projects 16,136 N11NGT02 1:n 0` `N�.PPOA4,E0 Total Expenditures 268,647 F9n U S HB Recovery Reserves 13,472 Surplus $1,040 _ 9yc�00UNTY CP�\�oe si Huntington Beach Recovery Projects Description - .- Downtown Revitalization Improvements Planning $1,750 Joint Youth Training Center for Fire and Police Capital 2,000 Planning+ Oak View Library/Community Center Rehabilitation Capital 2,000 World Skatepark Development Planning 750 Carr Park Improvements Planning 355 Arterial Beautification Capital 1,000 Planning+ Citywide Mobility&Corridor Improvements Capital 2,000 Garfield and Gothard Avenues Fiber Optics Capital 1,000 Police Technology Infrastructure Improvement Capital 3,000 Public Safety Equipment(USAR Truck, Rescue Boat) Capital 2,000 Seniors-on-the-Go Transportation Improvement Capital 280 HB Recovery Projects-FY2022/23 Proposed Budget 16,135 52 Huntington Beach Recovery Projects Description Planning+ Comprehensive Homeless Response Plan Implementation Capital 2,500 Major City Facility Upgrade Project Planning 3,200 Permanent Supportive Housing Capital 2,500 Grow HB Fund Capital 2,000 HB Community Impact Loan Fund Capital 1,000 Economic Development Fund Capital 2,000 Unallocated(Talbert Channel Multi-Use Recreation Trail Project) Unallocated 272 HB Recovery Reserves—City Council approval to appropriate funds will be requested at a later date 13,472 Total HB Recovery Projects $29,607 53 Review of Projects Requiring Additional Funding . .Descri • ERWITTIM. • • - Downtown Revitalization Improvements* $1.75M $8.2M-$17.3M General Grants/Public Private Oak View Library/Community Center Rehabilitation* $2M $15M-$20M Partnership Comprehensive Homeless Response Plan Implementation/ Healing Center $2.5M $50M-$80M Grants/Housing m Combine with Permanent Supportive Housing/Healing Center = $2.5M Healing Center Grants/Housing Q Future Park Carr Park Improvements* $355K $3.6M DIF/Grants Public Private World Skatepark Development* ¢ $750K TBD Partnership Public Private Major City Facility Upgrade Project $3.2M TBD Partnership Future Park Edison Park Improvements* li $475K TBD DIF/Grants Huntington Beach Blufftop Stabilization^ v $400K $1 M-$1.5M Grants Oil Well Abandonment*^ $500K TBD General • The projects listed above in most cases cover only the planning phase and will require additional funding for the construction phase of the project *Included in FY2022/23 Proposed Budget ^Funded in Prior Fiscal Year 54 Possible Funding Sources for Projects • Possible Funding Sources for these projects include: —Strategic Initiatives Reserves$16.5M —Unallocated funds originally allocated to the Talbert Channel Trail Project$272K —General Fund estimated surplus of$3.4M in the current year and$1M annually in future years —Proceeds from Prior City Manager Housing Agreement of$1.66M —CA Superior Court decision in favor of the City related to the dissolution of former RDA$5.2M($1.5M GF,$3.7M Housing Fund) —State and Federal Grants for Oak View,Healing Center/Permanent Supportive Housing,Blufftop,and Park Projects —Future Park Development Impact Fee Funding —Public and Private Partnerships •$23.1M General Fund,$3.7M Housing Funds,Annual$1M GF Surplus,and$272K HB Recovery Funds •$78M-$122M of estimated cost of projects with 4 capital projects with undetermined costs •Council feedback is requested to determine project priorities requiring additional funding • Feedback request for the following: —Funding priorities for the$23.1M General Fund,Annual$1M GF Surplus,and$272K HB Recovery Funds —Set-aside$3.7M in Housing Funds for the Healing Center —Set-aside current year surplus,proceeds from City Manager Housing Agreement,and RDA legal proceeds in the Strategic Initiative Reserve to fund City Council priorities Circuit Ride Share Program • On July 13, 2021,the City launched a Circuit Pilot Program which I provides free rides to visitors and residents within Downtown + . Huntington Beach using the Ride Circuit app ,;- • The pilot program ends on June 30, 2022 • 4-5 HB Circuit all-electric, low-speed, six-seat golf carts Based on 9 Months of Service: Monthly ridership range—6,910 to 10,614 Average monthly ridership-8,619 Average wait time-7:44 minutes Survey Summary from December 2021—March 2022 Responses from 742 riders: • 678(91%) are HB residents Bcach • 728(98%)want to keep this service • 605 (82%) used the service to visit local restaurants and businesses • Most common response was"it's free and electric' sE, Circuit Ride Share Program • = - • 2022-2023 Schedule July 1-June 30 14, Hours of Operation Monday:Closed ETuesday-Thursday: m-10ppm ..- Friday-Saturday:loam-lOpm Sunday:loam-9pm..•""' April-October:5 vehicles,310 weekly hours Total Contract Cost: $474,000 November-March:4 vehicles,248 weekly hours Total Cost to the City: $350,000 • City will seek to offset costs by pursuing grant funding, private sponsorship,and advertising revenue • Council feedback is requested to determine if$350K of$1 M surplus is used to fund the Circuit Ride Share Program WATINGTD �pRP0Rgr 1 �� FD C FY 2022-23 Budget — __ Next Steps coUNTy �P� City Council Feedback • City Council feedback of the proposed FY 2022/23 Budget is requested,especially as it relates to: 1)American Rescue Plan Act — To minimize the risk of future claw back efforts, staff recommends the ARPA funds be fully expended for eligible police and fire personnel costs in FY 2022/23. — General Fund budget savings will be available to fund a newly established Huntington Beach Recovery Reserve to accomplish City Council's priorities approved on September 7,2021. 2)Review of Projects Requiring Additional Funding—feedback requested for the following: —Funding priorities for the$23.1M General Fund,Annual$1M GF Surplus,and$272K HB Recovery Funds —Set-aside$3.7M in Housing Funds for the Healing Center —Set-aside current year surplus,proceeds from City Manager Housing Agreement,and RDA ��\NTINUr�2 legal proceeds in the Strategic Initiative Reserve to fund City Council priorities of rtoerua„F, 3)Circuit Ride Share Program �9n U S —Council feedback is requested to determine if$350K of$1 M surplus is used to fund Circuit Ride Share Program y �UUN � 59 FY 2022/23 Budget Next Steps • Based on City Council feedback tonight, staff will make requisite adjustments to the proposed FY 2022/23 Budget • Revised budget will be brought back for formal City Council consideration / adoption on June 7th %IINcro2 F V S ��DUNTY CP�� 60