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HomeMy WebLinkAboutStudy Session - Proposed FY 2023/24 Budget Review (2) �oiTIN&To 2000 Main Street, o *� Huntington Beach,CA %U n City of Huntington Beach 92648 U , V 9 9'•, Q2 !?cFcouNTY CA- File #: 23-419 MEETING DATE: 5/16/2023 Proposed FY 2023/24 Budget Review d 4(DA idlD`C J City of Huntington Beach Page 1 of 1 Printed on 5/10/2023 poweredkEy Legistarn' /f'/'I'� �..► • isew ...\.\••°,-.•%Ter INi4'` U 0 ep R P o R�r•�.• '�► t; �p •. \ • .-- IP. . ,......... ....._ .... -- -. .. . 1 ,rf ,; ,,,,y'i/), co, City of Huntington Beach ti '` . • 11 % Proposed FY 2023/24 Budget Review -r ' '?/- !s CityCouncil StudySession • = - 0 May 16 2023.. ,c8: . =�o ;.• , y , %. 11 909 , :+ R ` #g UUNTN —.•l,.,O►//' 1 17 Presentation Overview • FY 2022/23 General Fund Budget Update • Proposed FY 2023/24 General Fund Budget Review • Proposed FY 2023/24 Capital Improvement Budget Review • Key Budget Considerations for FY 2023/24 • Next Steps - FY 2023/24 Budget Approval 401......ro rI O`er.• Nt0 •: &• ° ohs:+ _ =_.. • Qs1 • r `\\\��j ••••FB• 11 '09, ••••�� I r COUNT`( CP,,�/� 2 18 • G ...... to v .. •. .. Ilk . ..... e_O R.P 0 RAtz, ee ' le \\N\NJ CD .0 46) Ilk . N! -,/ll� /' ' r1t {(/!/f .i t - 0 -- -. . 11111 F Y 2022/23 General , Fund Budget Update. -a-- -, .. N.- .0 4::::kitip . ... .• c0 AO /, 44, • J/ 1.9 0;�-'' N 0 K\>‘ OF , °I/Nil � low ,1 3 19 Economic Overview & Local Budgetary Impacts • Economic trends indicate a continued economic recovery from the financial impacts of COVID-19, however, the collapse of Silicon Valley Bank and other regional banks are likely to restrict the availability of credit and economists largely expect some form of recession by the end of 2023. ➢ U.S. Real GDP increased 3.2% in Q3 2022, 2.6% in Q4 2022 and is expected to slow in Q1 2023 to 1.1% - Consumer spending accelerated but was offset by weakness is housing, a decline in inventories, and a contraction in business equipment spending. _ ➢ Federal Reserve increased rates for the 10th time in just over one year - Federal Funds Rate currently at 5-5.25% - Chairman Powell has softened language to potentially allow for a pause in rate hikes - Yield curve remains significantly inverted • As we emerge from the economic impacts of the pandemic, the City is monitoring recent developments in the economy: ➢ Russia/Ukraine Crisis ➢ Inflation & Prices ➢ Supply Chain Challenges ➢ Rising Interest Rates ➢ Labor Shortages • City is projected to conclude FY 2022/23 with a $3.8M surplus (subject to change) 4 20 • • „/'/`f'''..�. ,"" "` T1Nlow G vliklisswie .. 4/ . 0. wile -________ _..),_ _______, % 17 ik . :, �``'�''�' ' '� • C.) ► Proposed FY 2023/24 t } r,,; • ii �- = - -- _...,,___= ==�--- ___ •I_ _ • General Fund Budget Review _ ,_4 ....,___ ____ 0 e- , , - -1""P 7---, ?/.,,, )I//, : ivi,,,,,, ,, ? • • p •• Ci4kt% AO e• '41'0•.;7, 1 °°;:!;/.... AN)00V co O r / V N T / ..... ..►•►.r�r'/ 5 21 FY 2023/24 General Fund Proposed Budget Review • Proposed FY 2023/24 General Fund Budget is structurally balanced, with a projected $3.6M surplus 'General Fund (Fund.1001. n ° Proposed f; ►n thiousands,e a m: d__.. e Y 23/24n :Revenues (recurriFng� " 5 ° b m u$278,1.20 *GF portion of Emerald Cove settlement,of Revenues (One tl111e)`* 2,27E which 50%is being transferred to the Section 115 Trust and 50%is beingtransferred to the Planned Use of Resryerties�(one�trme � , ,y 8,804� irLTotaSourcesof Funds } A General Liabilities Fund g 289,200 I ** Includes Debt Service,Capital Expenditures, and Transfers Operating Costs Non-OperatinggCosts-** � � 48,E64 7-7 [Total Expenditures v 7 285 564 Surplus/ Deficit) '636 • Continued Infrastructure Investments in FY2023/24 ➢ General Fund transfer to the Infrastructure Fund increased by 11% to $15.0M ➢ CIP budget totals $41 .2M (decrease from prior year due to $12.9M of HB Recovery projects and a $6.6M grant for Heil Pump Station in FY 2022/23) 6 22 FY 2023/24 General Fund Proposed Revenues - $280.4M Other Revenue Non-Operating Revenue Charges for Current Services o --\ 1.0% 11.6% 0.6 Revenue from Other Agencies %.e e 1.0% • a ` • � ilikf s�=w�� S ��t `= Property Tax Use of Money&Property s _" _ Fines&Forfeitures ,� License&Permits .- �'$ m ;" ;2 a � 3.3% UtilityUsers Tax1 ''• �r 7.6% !°_/ '°1-,,,i''',",•,i'` w F a „: / .**"if":‘,tiltj Transient Occupancy Tax � 5.9 Sales Tax Franchises 19.1% 4.2% General Fund recurring revenues anticipated to increase by $4.8 million from FY 2022/23 7 23 FY 2023/24 General Fund Proposed Revenues - $28O.4M • Major revenue variances include: ➢ Property Tax: $104.2 million (4.3% or $4.3 million increase) - Higher assessed valuations as of January 1 , 2023 versus prior fiscal year ➢ Transient Occupancy Tax: $16.6 million (-5% or $0.9 million decrease) - . Expected decrease from current year high, still $2.6 million higher than pre-COVID revenues ➢ Use of Money & Property: $19.5 million (11 .9% or $2.1 million increase) - Increased parking and lease/concession revenues ➢ Non-Operating Revenue: $2.7 million (-90.9% or $27.3 million decrease) - FY 22/23 includes one-time transfer of $29.6 million American Rescue Plan Act funds - Partially offset by FY 23/24 one-time revenues of $2.3 million for Emerald Cove settlement 8 24 FY 2023/24 General Fund Proposed Expenditures - $285.6M BY CATEGORY BY DEPARTMENT ** Finance Human Resources Other 0.9% Transfers * 4.0% 1.9% Information Services 14.9% xi /" 9% Debt Service w � a n Community ., .i. .." � Police-------..;:-.� Development 2.1% a° � 1 29.6% ' 3 tf.a a x z . O 4 q � • a `° ; Community&. f,, ..¢ Library Services Operating r5.6% °` yy: AK -'gy- "r- � � $ ® � Public Works .0 . �Personnel . ��'.. gib . "1,; ' 63.6% 8.5% 4 Non- Fire • Departmental 19.8% ° •• 23.0% * Transfers include Infrastructure, Equipment, General Liability & ** Other includes City Council, City Manager, Section 115 Trust Transfers City Attorney, City Clerk, and City Treasurer 9 25 FY 2023/24 General Fund Proposed Expenditures - $285.6M • Major expenditure variances include: ➢ Personnel: $181 .6 million (6.2% or $10.6 million increase) - Increased Workers' Compensation costs - Increase to PERS Normal Cost - Continuing impacts from FY 21/22 MOU updates - Addition of 11 FTEs (more details on following slide) ➢ Transfers Out: $42.7 million (-22.7% or $12.5 million decrease) - FY 22/23 included transfers of $18.1 million for authorized HB Recovery Projects - Partially offset by FY 23/24 transfer of $2.3 million Emerald Cove settlement and additional Infrastructure and General Liability Fund transfers 10 26 Recommended FY 2023/24 Authorized Positions • Staff is proposing 11 new General Fund positions in the FY 2023/24 Budget: City Attorney's Office — (1 ) Deputy Community Prosecutor to support increased caseload — (2) Senior Deputy City Attorneys (Advisory and Litigation) to assist with increased caseload and demand for services — (1 ) Senior Legal Assistant to provide additional support for the City Attorney's Office City Clerk Department — (1) Municipal Records Manager to facilitate centralization of record keeping, including oversight of the Records Division within the City Clerk's Office City Manager Department — (1) Graphic Designer to assist with citywide public information materials in the Office of Communications and the City's Cable "3" Channel — (1 ) Multi-Media Officer to oversee operations of the City's Cable "3" Channel, YouTube Channel, and online digital content 11 27 Recommended FY 2023/24 Authorized Positions • Staff is proposing 11 new General Fund positions in the FY 2023/24 Budget: Community Development Department — (2) Combination Inspectors to mitigate backlog and provide more timely inspections — (1) Plan Check Engineer to meet demand for plan check services and bring part of contracted consulting work in-house — restore eliminated position Human Resources — (1 ) Human Resources Analyst in the Risk Management Division to support increased workload, mitigate risk and ensure compliance with regulatory requirements NTING or OtI�l ......,Toy; <( •.•`N&OOPORgTF;..�.6) 11t4,4 s�Y \ _I; Aa ilu it, VIt7 N'.B ��.1904�PO ouNTy t "/ 12 41.49 28 FY 2023/24 Full Time Equivalent — General Fund 870.00 - = $61:85 859.50 859.77 860.00 52.05 ` _ PPE-C��ID 850.00' 852.20 854,40 " ' , . 840.00 t 832.1:9 830.00 . 810.70 , , 1 817.82 810.00' PRe!trIr� 800.00 . 792.95 790.00 -- ;- 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 FY 23/24 -- 13 29 General Fund Long-Term Financial Plan 5.5% CalPERS Return FY22/23 ritrom44.7,Aw-4,,,,7:',°;„*,,voiclr.F.713 474.5zral41;7-117:54ifikriCKItitetVartiX,A..1 StL,, Actual Projected'rviwpiTtg5raVV:W*P Projected 7hviProjected -xx .:Projected m grqvg-,,;ttatt:I.,43,zte:.idqt::tofz:4,xt.sr,;:tvxvt,e.A*meutttcff- ,,,,,,4 gilL,titioleexe vtek Proposed,,k„,,,..,w.rojgc.t.e, il.,°4,:,:?!0, , ;47i'i.-411,4 , Oci,gita..?7),o5Aotaiitzt*Cariffi*Otlilf7i-A nZettiVAiitt:::-it flic*V44Cititesilf1.4,..'TmflitiMiltiolIVAN eM144-40,,,V7,4211 to*.i.440A07,041,-:.:"129.44w444440Airt::,1 vthousands) .04-'04(2.1/421.A ,,:4 Very:212443*,:1 dil#7*4.:pkyeZ34,421.4",tii eteiFY,247,25*4'ftF,yl,51,26;:..5,i tztepy.2.6#2,,,.r-41 w er,„...4- 770,t,,gi.i .1'i10,,yi;44 r t -.4, y,,-;;;'''it orao.4 t:-; .4,-'-. 1No...m kkaa,.4 ''',It...14.41,1 4i .441.;ilk '-.- 4,,s0 4 .::=A. 2 4 4•.1: .1t ::,, 4 ; Awiai NikiNti.:::iRic,inttimgrztvImat~:gibiL2%.,n,w,,,.....4-44svg-,..44-4,^1,-04-fra...ss-KA-T :‘," n:47141744fgAiIikr.A!,142.4t.7"..•....:` A'.: , .:4040:x.,,4114:,..i;Atii4,*.itfn,.'.laa-,!, ,...,...4,„vpgm,,, -i 0..4e- ,Attkret4..tf:F:,.,,7:t., 41:.4.44.1........1 ../xes.,:th&i,otA3,. 7:::::75177:717-'77 .77-7-7F:F.:,7;':'7.775.7r'77.::::5-7:7-i.7.-:7727.A;.;-;-7:---.7-'77:47----777,7'.''''''7, '-'''77:77-1E77-7-7:477-77-77-- ir-L7:.,.77::- Revenue (Recurring) -,'..'-1-,- --,,,,--1:11',1-1---,,,-S256,2461-- ::;-_,f,',- :„$2,73,--293'i,',-,-0-;-- ,=.:?,>278;120 --,::,-,>-2,83,950 • ,..11,1,->289,,5474-„,-:;,,,c,,11-i>29539.9 [ "',::,`-`„.,-,,,r",.:„„ :,,,,L:....7,7,,,,,-I'-'-,,,L.,.:::...;., '.,.....1.1---,..,.„1,---.L..-L,!•,......,...i.L.2......1,Z,-- '...:!..,....,,,,.. ,44,-,z,L1 ,..L,...,::,,..„:_....!....-_,.,,..-: :..._„,,,,..,...,....,—,±i'-.4_-. _,....,,I.,.....:....r..,„,... .. `,. ...:.,"4.....,..,,,...:.,: = ,,,,,:h.:1 Revenue (One-Time) . - , - , ' 1 - „- : ' , ..-,:,- -,- - ,29 607 , ,,,-- ,, - ''-- - ,-;-Ri aon Useea,t- Qt-Reserves v, ,, . 1 ,...,..',-,,;,,!„:--,..,,- ..,'.,:- ., -„,.1 -'',I. ,? ,..7,'',9,80 4Y ,..', :..f,,,:,-,?+,7 7 .,, ,, ,, _ . .,, ,,,, ,, ,‘,r,f7 Total SOurCes.of„Funds .- :,1 - ' '.,''.1: -$256,2461 .::::' $302'900! . $289 200:'' `, ' $281.950,-; --'$289 547; ,.. „ ,:::$295, 399 -„, . ,.,-„-..--,, -, -,,-;.„,,,,,„.'-c--..77741--:, ,,,,---...'-' ,:'----!----- - ,:.- - ,.- -;°'...; -,':, .,'.,- --.,il:':,,,----,; ,.--if,::,,,,i,.}.,:-!- : .:,:„ .,„4.,-,-11:,_:':7, ,,,4 l'ExpenditureS,JesS,v/AL- :::,-,::„7:,,,-,-,-H,,,,,11,- :,-;:.--,,--,,..234,27-71_,„,,,,, ,-;' -z5.1.)0.- -1.4- ,-;-.;-_:...." -,z67;-25-v,,,, -,,,,; ...----265, 5341, :,. zp,1;:zz[i-, • ifir.,-2,,r, :27?.;018, • . ,.. CaIPERS UAL ' . 7 . — .' 1 ,, ::,, '.„ - .4 891, - ' 4,891,- , :' 5,000! -, , - ,• 5,000, --,, - 8 54a.„, - 12990 , • = -- -„--, . -„--,-,-„.....,„. --,,.- ;i-,",-,,,,,„ ,,,,,„:„-,,,...„-„;;`,,,,T,;,.,., -:,:„;,'*•,-i,";:.--,q,:-,,,, .7-;,,,4,s---•--:-1-----;--k,----,--,--it-t-::;--7-77,,'==.4:7',,,,,t;:"::i.,1: 7-'—'f'-'7"-'7T'''% ,'',..', ', ,-- ,'':':fe ,:'''•',',',1,:- .,',', „'i,:•,',,•,,.,''Li',„,', , ,, ,,,,,,,'-'',-„-',:',.•-•'-; 11' #',,;,'74:-I,,' - ‘''' '*; e'•-,'.'"'' P0 EI Payment.1 11- 11',11'...'-,'''',11-,1111-1.11:':- 13 688 ,:,'"--: , -:,,,,!--,131556'-;:,--,-:,,,'-''';, -,:':13-276':--,-',.:,-•',,,,-,13.,.010 ,Y;:,,,,,,-'' .--12-750%,,:',!,,---,' 11' 12537 ', 1 -;-,- 1--,,- ,' 1 ',.,--,"-/ :!,,: -'''', -.- l':',' ' ' "' /, ,;•-,:;;;', . -,':L !.:-,;.:,,-tZ2J'; ' ',;..';,,LL:;,' 1:',,,,L-Id-%f ! ' " /;. ,!,111/;-1) One-Time Expenditures - , -- . :i'' : ' - , - -!:'; - - - 18,135,;. ',- '' " ',-, - -' ' -:..:',„ ...,- , '..-. , --,i :. _ •,,'., , ,' 71i, • -, , ::.,,,,,..:::;,77-11 ,::77,:--.7-7,7-7-7, ,-,,::- :, ,. ,'-'.::-: „:-.: :,,,,,,,,, „r---::,..„,,,:tt Totall1Expenditares -,--_:::',' ,.-,-1,,', ,..1-- „':''11'1.,-F.::'--.z,-:252,8561-',.;.:-.;.7-;;.; --287,613::• ,, .,.----- ,..285,5641-%--„-:-.4,..-7:283,373 ::::.,,,, , ,.;,290,412t,',:,,,,,.„„,--:,,,,,297,545 L • ... . „.... „ „ . „ „ . . " , . .. . . .. H B Recovery Reserves, - : ' -' " - -— (11 472)-- -- . _ „ , . .,.. "---'-----111r-----1-• ,:-1. '1 '- , - -11-1 ,- ---; ::-, , . ' ih----,-,- --: ' -::-:--'k;:'f.-Yr-,--:--:---z,,_, - :, :-,;,,,,,„,'..,.:,-,.. ,' :,,'.,,- -,- r ,-,- , A.- -, -- i ,,,,, ;:::, - ti• ----- -- --. e. l'- . -' ••. ' '' $ ' y Surplus/(Deficit) -::, ; t ,f,-::._ t :$33901, ,,,..„, , $3,8151- , „ :,, , 3,636-;.-, .. ,:',:r,. ., ‘?57,71- ,'„ ', ;•(?8651;;,;,-,„-,,;"„,,"( 2,146', i• Requires use of Section 115 Trust reserves starting n FY 2025/26 14 30 • Pension Update • CaIPERS return in FY 20/21 was 21.3%: ✓ CaIPERS Funding level 102.8% vs. 76.7% funded • CaIPERS return in FY 21/22 was -7.5%: ✓ Estimated CaIPERS Funding level is 87.9% • As part of our pension 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 p5 cd�aRsx�44 • A $2.6 million transfer is included in the proposed ea anRe �,r FY 2023/24 budget to prefund pension liabilities via our 1 Year 7 5/ 115 Trust 5LYears* 6.7% • Projections assume CaIPERS earns 5.5% in FY22/23 and 6.8% Years* 7 7% going forward (CaIPERS discount rate) 20 Years* 6.9% [ 30 Years* 7 * Based on original est. -6.1% return 15 31 CaIPERS UAL Payment Projection 25 21.9 22.2 22.1 22.0 21.9 20 — - - . _.--, -, . , ........._ 17.4 - -'-:.' ..1 . °,,.° • ..°„,- 1.'8.5 9:3-' .... . : 15 13.0— - - ---,',5,l,2,, — -..t-.-'.. . • ..„,.. ..._ . if' ' I, C.,-----1,,077. -4 47,4,4 1.44 444 2.171 I,K--.-2.-4 _.1'1 P.:",-.:L. ir..4,,, •&, ;.... ..,,v,,, •-ir 10 - - --- ---- 8:5-4--- 4.9 5.0 ''•4-,,,,t, g,„ gii,, -1,7 , ., . . „. „ . = . .... :::.:,...' _ '. *1•• — _ :."- . 0 a .s, •.°. ' '''''' ' ''''. . ,'..° . = . . ., . , .. :;,,'.. ;:;',., . a . . 1 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 i Mum Baseline 7.A Ad d t I General Fund Er:-:-.3 Section 115 Trust =nil Shortfall a. '"UAL Payment I 1._ ...., CaIPERS UAL Payments based on projected CaIPERS 5.5% Return in FY22/23 and 6.8% moving forward 16 32 Fund Balance Policy • The City desires to maintain a prudent level of reserves based on the revenue impacts described above and the City's desire to maintain strong bond ratings to minimize borrowing costs. • The Government Finance Officers Association (GFOA) recommends a minimum of two months of operating expenditures be set aside for unforeseen events. • Staff is recommending consolidating certain General Fund Assignments into the Economic Uncertainties Reserve in order to meet the two-month reserve requirement. • A minimum of 25% of unrestricted one-time revenues would be transferred to the Section 115 Trust. • Additionally, staff is recommending strengthening the City's Reserve policy to ensure that funds are set aside systematically and used only when truly necessary and approved by a 6/7th vote of City Council. • If Economic Uncertainties Funds are utilized and the level falls below the two-month reserve requirement, the Chief Financial Officer will bring forward a proposed plan to City Council to replenish the fund within three fiscal years. • Cities with robust fiscal reserve policies are more likely to receive improved bond ratings based on higher scores related to financial management policies and improved fund balance reserves. 17 33 \irliawili I N G* .-•-..�c FY2023/2024law /If': I . \ o . <A ‘ , ..... _____ --� Capital Improvement ,______ .„ ,, '... .... j'`___ l"`'l Program (CIP kl ;' • -1 +a{ rr 1 �g, . --�.�---� 7,,,4' n c -T ��;° =_ �� <ka 1 ,� �.41'A.a �, —5r r m, 3°. p`�%1u x x :: : •• r.� ��� .�^ r^A�MI �ue����t ,� �. � � '$�,�r TM`+�n ��j1 _"' q t�� :�" � y:�` yR • �• a °* ,0-. ♦ �.,4i �,i � ` II;c. g ,d° °a^ ` q i ' ,+ 166 cs. '�� 1 7, 19 D9 1 �• a � �' °• r +^ � `. 2(�. `s +y '^``"s '�' 'S'' '' t�*' &' l� �A�'�S`Q,^y •,y;b•1`^'�°`( ' ts,.\e,i, 4 \ 40 V � QKi , F°° 0 NIP( 34 FY 2022/23 ACCOMPLISHMENTS • Drainage and Stormwater 10 projects $ 15M • Facilities 20 projects $10M • Neighborhood 5 projects $10M • Parks and Beaches 9 projects $6M • Sewer 7 projects $ 13M • Streets and Transportation 32 projects $26M • Water 4 projects $5M STARTED OR COMPLETED 87 OF 94 PROJECTS VALUED AT $85M! 19 35 DRAINAGE $ 1 .8M • Fueling Station Canopies $500k (INFR FUND) • Storm Drain PS Building Improvements $187k (DRAINAGE FUND) • Storm Drain PS Forebay Improvements $187k (DRAINAGE FUND) • Atlanta Storm Drain Trash Removal $884k (INFR FUND and Grant) S Y F� � � � �'^'` ax .-" e. � _�� �k j�} .J A'.,�` ,aNNvi tuti &" -"l.'� i x f r x 4 ° - 4 4 +[ C1 F o r „?. I ' ,� a- Y. .�Y, 1 ., v a� '3 ',.: 4 k * . 1 t - , set v' g � e arl � SS' '° bras.+ ', �n{t $ -J7/kr'�sr •.`,w r^- ;•� ; r ..: � � • ����5 1} �` t'x - � ?:'',r'jjyj()}}���p.bt �+�,, ,�s" „' � �t `�' k '�e,+ t�� t • P fr�e t a, f� , n `•. +a ma . ,.• sY tinV 20 36 FACILITIES $4M • ADA Improvement Program — Citywide $250k (INFR FUND) • Civic Center Hot Water System Replacement (Design) $50k (INFR FUND) • Ocean View Estates Roadways and Driveways $346k (INFR FUND) • Civic Center — City Treasurer's and City Clerk's Office Remodel $200k (INFR FUND) • Banning Branch Library Master Plan $335k (DONATIONS) • Police Women's Locker Room $1 .9M (INFR FUND) • PD Communications Center Remodel $600k (INFR FUND and SLESF) • Central Library Lower Level ADA Restrooms $300k (CDBG) a at 7 �.� ie4 f, L t P 4 q1� �r.a ,yid. a y t 4, n g as "" y� v..;$' ♦efi` :r,:,-....,t4i':!1:71-- 1 i, 41 :;::: .' — t I.''''' -' .�'" �� —,,,,ji - ... e� s � Jr �~� 6 k �'. � .. c � s9 yea{i��1 � �ial �� ��[�#7:::;:::::::11:"' 1, bF 21 37 • NEIGHBORHOOD $7 . 4M • Residential Curb Ramps $700k (Measure M,INFR FUND, and CDBG) • Residential Overlay $6.7M (GAS TAX, INFR FUND, Sewer and Water Fund) • ' 4 g.lial:,,,..._7..ilgc, . '', :I.:10-:. . ' ' If4;! 11*:1`,;A::' .1 ' ,i 3 tt ".., i.t c t110,,a1.4.:;41,,ililf):.FI:C1,,,, .,X! tatr.,, ,040..„: : '•:7,,,: p• �Y iii,,if .,,,k,:: r g Q=m SF flut :troj;,,.:,.., t hi . ..:„... , , y� r 1. " tr s " 0 #r7 s ° ° » :::.. . . 1. t. G .. ....c ., d 0 :,44, • Lvpi...,.,.....„..„...,,,,,„‘:„...\„,„....,,,„„ :',O. ..,,,,,,,,., v ww & 's �`h " fi ' U a , " �°g "i # e t 6y " '. " 9 + , J Y � ' ,gr a..:: s a s x"•c"3 #e ' "�E" �-" ? ,C' Z.. ! � �4a r,i^ r � a � , ka` y r,,, am', a � ?'t *� 7 .▪ t▪ a m,,^, .� .n z=:r"'" .RAC ? r3 w ..,�+K. _ x ;`s 9" ;., *tea S _ '§,7 -, tr,. .,a ar "' &a .m „u �" 1 7 Oa 2. 11z.02t. 1R 3,5 , may, 0`5119(�2�022 OQ=39 �. 3 d!, h �l 22 • 38 PARKSAND BEACHES $2m8M • Seely Park Playground Improvements $389k (Park DIF, Donations) • Trinidad Park Playground Improvements $197k (Park DIF) • Softball Field Improvements $554k (Quimby) • Surfside-Sunset Beach Nourishment $410k (INFR FUND) • Eader Park Parking Lot Resurfacing $lOOk (AES) • Edison Park Reconfiguration $1 .2M (AES) i t 1'4 „,'”,„, '4.1'.'".41:''''''''',:i.A."...1":"."°V,. '"k ',' ! 4) ty E.. .. r r r.,� 'y` r fir"F.§"ur ^�, ,x'd A` a� .a✓A', i c t i f � [a_j " �` t .fie � i i,P i,. , ,it s t kc"1`yx-' � ,�,. :, � --� -; �i :"•21F�.. A. �y a�t�.,=z�5 �'F�.t,#� ta 7 s �a3� r € �Msc=�r, �„-„�€,. '"w.�-a m"� '` � a s -'sr5 l.. -MOF=_r ,"„ 'a _ �`�' A. A''` A Y,ti � ' F kk� 5 �Y -,'�Yr 11 E }^ 4^ x F' .n .fl L , I 2` S:I�4+rQ 14'➢h R+-&r _ -1.P r"'4q t �z #^ v H " . Y .. p d%, °me#fa'�' 's� s�.,.t �*. � r'" O� � "q 2+ ' "�P+. r ; F" ' "'i`n P � � "" .�" �; �-a F` � a �-.+,T i v w'r ""�"c,"u,�*5.3 I� ^ '�a,,'.�??�+e� a� r^ ,.-,.--; a� _ a�.',a� r g � ,ne.: }t,wr .as �'"'� sqq�'� � ° ...tt,.�;�e��,����'"" � ,^„ �k � "' '�JT�!` '� ",�s, ir ,d, # a ,�.y *it Ex t , k ..rw J ...�.r.�L L'1."=-,d_�.... A Ha+^�+...k+. _.,,_$5= 7 ; `6s .. _ ._ ^N��_ yyi, + �. 4{� v f 23 39 SEWER IMPROVEMENTS $ 8 . 3M • Sewer Lift Station Improvements $5. 1 M • Sewer Lining — Various Locations $1 .4M • Edinger Sewer Murdy Channel to Beach Blvd. $1 .8M $ 2w�§`5°`iEE '"�Y' t g6,P -� rE `e' • s �'$" $. sr YCp4 r a ,� '��p� � =t an, � �.g � ' °�; sad ° ' d xg' �#�- wr(. r i 'a A+� 6 '._ -te r ,P P 1 J4 � ..t '', `' Ai ' t t • Y/� _._ '*` F' °�',fit` ..-"' `� pl., : IA„ }^ � ,a #;` .,.'7tgit,o,il." t -- - #} `tea. ) 4,,,, . . p ,, .- A u ��• ram` ... }, {,,ram'. ?`�' } at. ` k"v i ( d 4 �kya- ,g ..''°. 11, ;71 'r 1 r p +. .� '41 `, " '' '; s y �� W s r =i ce^° `. i*w+sF r ,y a a' `• + ��' "�' J ° '. r + ..F -'� S�r�- a ax`�a.`.-.,.s' ''^ ., ir "' �, ^.�. �:..� .ali. �a..�: tit e 24 40 STREETS & TRANSPORTAT ION $ 11 . 8M • Arterial Rehabilitation $5.6M (RMRA, MEAS M) • AES Complete Street Improvements $2.6M (AES Funds) • Oak View Streetscape $1 .2M (INFR FUND) • Goldenwest Median Turf Replacement $125k (INFR FUND) • Bella Terra PD Substation Fiber Optic $140k (INFR FUND) • Murdy Fire Station Signal $345k (TIF) • Bridge Preventive Maintenance Program $1 M (Prop 42) • Edinger and Heil Corridors Traffic and Ped Safety Imp. $826K (HSIP, TIF) g� �.ro 4.1. F+'C'a, +fie "° ;V' -,..� t�,�u;,,..jl .paN-&s e. "�r l 5:.�.. `�� ::^11,.. " .,,� r .,P g F.,,: .+ e-of t 2 6 aP e. � ` �, ak �,IR -. 5 - a I-1 -sew, �,r° .,s`,.. r..,.--, zri, �' Y'•. SeL ' .y yyi rs1� •u r �a' 4R 1�S' mom¢ ° q a as x'Al: ' a Z.S7 4 =g ,. -- a. 411 °.++` w rr $ °'" ° . �� Z' :�"•9 ." ^r-w e , a.«,M.;°.,.' °.,s,-,4; +-a f,y, z :1 f s x:r 3,�: ,at'4,:,..„51',,,rt -f,..:'.!:`:':,:--::1:R-if- ,,.., masu'a '' ;'.. ` .. - :` a .`4.. r ,d .Y", w :sx '"-.r 9 : }# ,a..+.ma c„' t r s °z . ;g?a • Y$;?"._. �. r.w r." �,�r a�5.4 1,�.�m.5`* 1 ¢,:gy m "`, 4 rJ ,,..,�sA �...:,�,-a L^gr �a_ '' i-s� %:,,��54;:.a,... ,.. �...SF" '�r `�i.:.st _.._ +, +: 'i.�'T,�i°. r' 41 WATER IMPROVEMENTS $ 5M • Utilities Yard Parking Lot Paving $200k • Water Production Building Rehab $355k • On Site Gas Generation Wells 5 and 9 $1 M • WOCWB CP Retrofit of OC-9 • $300k • Hartlund Water Main Replacement Project $1 .25M • Well 3A Treatment System for Dissolved Manganese $1 .9M elf -,--Poif rrf."74:A:71;)WV 1: A;''.. • • r ,a .. ate r k � S • 7' 'ee+', ^rr- �."21417 a I. `w ,i*- te s ,x A ° i. .R rq „° :�N-. ...h` ., -. .., . .+......- q g . tgi 4 ( I °A. 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T I N G ro .... ,\4\ ••' • . a11PoRArc `••...... .. . ,, \ o ••• \ ____ _ _ _____ % v ,41k r„i • �_ � _ ' • - f =__ _ Key Budget Considerations � „..,...,___ , - ?-j' )?'>/1' for FY 2023/24 • _ . **4444' t � •• ••0 CS ,r p • l ••••.. jy� P LOON.....„,,,,,,,,,,,, T 27 43 City Council Direction and Feedback Requested • City Council feedback of the proposed FY 2023/24 Budget is requested, especially as it relates to: 1 ) Transfer of $4.9 million AES Reserve to Fund 1284 for AES CIP Projects 2) Use of $3.9 million Equipment Replacement Reserve 3) General Fund portion of Emerald Cove Settlement totals $2.3 million - Split 50/50 between Section 115 Trust and General, Liabilities Fund 4) Addition of 11 FTEs across various departments 5) Recommended update to the General Fund Fund Balance Policy �i o�•. .....R......Q•.•? ' it.; • T 1 � '• :7 * i, r Col; ... :: sos P�.0 �1 NT1 . �i. irii 28 44 • ,lir' iiiiw WYcING 0'' ... .... \\ `lk .•• • ................nP oriAe•. �► __________________:___ _ — .,, _ ___. via or, lik '�..� , , ;( rr- ,+ "J�,. [-, /.„,,,I, __,h, • FY 2023/24 Budget — il -- - - =-____ - R_ ____ •• Next Steps �� . _______ . . . - ___..,____ __ . iczr . , , ,r.,::,..„.,_ / ,, ,,„„, : , . -, 0: ‹ , . $ • % Q • •• ••. -t P* .•44. Q ` 0 .6.011••••••• K\eC 0° OUNTN 29 • 45 FY 2023/24 Budget Next Steps • Based on City Council feedback tonight, staff will make requisite adjustments to the proposed FY 2023/24 Budget • Revised budget will be brought back for formal City Council consideration / adoption on June 6th TING 11 O` \N• COflP0 Are>.• lIt\ `G�•C• .... :9a....•• t��l " CUNTy �p.I 30 46 *fir r �i � P �; - �4 aa' '4�rs� ,° -, `v 4. a " rF ,i�, , a x�.Z ,, , s' ksnt , .4� ' s9 ,+r ar � a r, 7" : i' w x < ,aq t ; a ,+ ^ ,uvr', s s. xa .a s � r!4 p tt - ,o-p ` x eaygr ,` n ' ri' � U¢ ..P � ° 4 r 40, '�.,* ,• � teaj`irl 1 _ „4-t i -,, ri� d ask: i9 ; � }, �� ' aaa .A ^r,'a � s,. � • Q , ¢ "� .Al , ; . TC �tx ^ fi . �'raQuestions ? a$erg& e � t'r i.� t o z, , , e qz_ � E�s .': � ' ..E : ': - ,4,,,...*.„.,„„.. ,,,....„,,,,.. ik ::. 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"'.7-1:.4:77.1;41:''T‘''''--Ni '''NSrj_.A,,„i;:f-jii,Z: ,p ,zY ." 4 Yfrs1 Kew p' e3 c;Ye° Ste' ^".# , `� a f'"''�'`'.. ate' - - . a1 - , s"0.';. ..vy '" Win. fir. .7.,) rye^ 5' xf t.k1). s ' 1 di..S 'SJ d'#t : n a w.x ## aven w ,. n n !. 47 Switzer, Donna • From: Dennis Pappas <ndoceanpappas@gmail.com> Sent: Tuesday, May 16, 2023 1:01 PM To: CITY COUNCIL Cc: supplementalcomm@surfcity-hb.org; Dennis Pappas Subject: Budget Allocation for Beach Gothard Residential Areas Honorable Mayor and City Council Members, Topic Budget allocations in Beach, Heil, Gothard Residential Area: From: Patricia and Dennis Pappas Residents of 43 years We need help and support: Heil block walls are full of different colors of paint from vandalism(Graffiti that has been covered). We would like to discuss a program to have the block walls all one uniform color. Please put money in the budget for these processes. Maybe the neighborhood residents could help with the painting? I would like to show a decision maker our black top/streets, trees, and other parts of landscape entrance to our neighborhoods are not being maintained and lack beautification. Please put money in the budget for our older neighborhoods. Please converse with us regarding the above. i Our neighbors would like to host a meeting with decision makers. Thanks so much, Patricia and Dennis Pappas May 16, 2023 2