2022-06-21 CC Agenda Packet - PRESENTATION - ITEM C11 - FY 2022-23 BudgetCity of El Segundo
Public Hearing & Adoption
of the Proposed FY 2022-2023 Budget
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Purpose
FY 2022-2023 Strategic Plan Revisions
General Fund Budget
Revenues
Appropriations
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Special Revenue Funds
Debt Service Funds
Enterprise Funds
Capital Improvement Program (CIP)
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Pensions
Other Post -Employment Benefits (OPEB)
Future Challenges
Future Opportunities
Recommendations
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Citywide Strategic Plan for FY 2023-2026
At
the April
12t"
Strategic
Planning
Study
Session, City
Council
develop
a revised
4-year Strategic
Plan
(FY
2022-2023 through
FY 2025-2026)
The Proposed FY 2022-2023 Citywide Budget adheres to the City's Strategic Plan
City Manager's Office will bring back the revised Strategic Plan to City Council at the next
City Council meeting
Fund
- GENERAL FUND
(001) GENERAL FUND
(117) HYPERION MITIGATION FUND
U
Adopted FY 2021-202�
% L
Proposed FY 2022-2023
79, 996, 866
50. 0%
85, 806,"1
54.4%
(504) SENIOR HOUSING
(505) SOLID WASTE
(708) TRUST FUNDS -PROJECT DEPOSITS NONREFUN
SPECIAL REVENUE FUNDS
DEBT SERVICE FUND
(202) DEBT SERVICE FUND
(204) PENSION OBLIGATION BONDS
F)CAPITAL PROJECTS FUNDS
77, 651, 553
100,000
75,313
270,000
1,900,000
15,2012230
48.5%
0.1 %
0.0%
0.2%
1.2%
9.5%
10,345,000 6.5%
545,000 0.3%
9,800,000 6.1 %
510552900 3.2%
85,361,128
100,000
75,313
270,000
8,199, 700
10,345,000
545,000
54.1%
0.1%
0.0%
0.2%
0.0%
5.2%
6.6%
0.3%
9,800,000 6.2%
71360, 893 4.7%
(301) CAPITAL IMPROVEMENT FUND
5,055,900
3.2%
7,360,893
4.7%
ENTERPRISE FUNDS
379844, 395
23.6%
379869, 022
24.0%
(501) WATER UTILITY FUND
31,314,039
19.6%
31,359,005
19.9%
(502) SEWER FUND
6,520,356
4.1%
6,500,017
4.1%
(503) GOLF COURSE
10,000
0.0%
10,000
0.0%
Ea INTERNAL SERVICE FUNDS
11,585,281
7.2%
89222,479
5.2%
(601) EQUIPMENT REPLACEMENT
5,000,000
3.1%
1,386,989
0.9%
(602) LIABILITY INSURANCE
3,094,306
1.9%
3,572,125
2.3%
(603) WORKERS COMP RESERVEIINSURANCE
3,490,975
2.2%
3,263,365
2.1%
Grand Total
16%0281672
100.0%
157,8033535
_
100.0%
dk FY 2021-2022 Adopted FY 2022-2023
Revenue I Budget Proposed Budget Chan
IL Sales Tax
IBusiness License Tax
LProperty Tax
NF Transient Occupancy Tax
Chevron Tax Reso Agreement
Utility Users Tax
Charges for Service
Transfers -In
Franchise Tax
Other Revenues
Intergovernmental Revenues
License & Permits
Interest & Rentals
Fines & Forfeitures
Total
$12,250,000
111750,000
101432,525
8/420/000
6/600/000
6,289,500
41755,511
41013,235
31000,000
2/267/770
2/178/909
1,825,000
726,250
294,000
$74,802,700
$12,950,000
11,935,200
10,145,860
11/040/000
7/578/805
71269,908
4/797/150
3,047,549
31300,000
2/168/523
2/231/761
21100,000
21874,000
3111766
$81,750,522
$700,000
185,200
(286,665)
2/620/000
9781805
980,408
41,639
(965,686)
300,000
(99,247)
52,852
275,000
2/147/750
17,766
$6,947,822
Proposed FY 2022 -2023 General Fund Revenues $81,750,522
Franchise Tax, $3,300,000
(4%)
Transfers -in, $3,047,549
(4%)
Charges for Services, $4,797,150 (6%)
Chevron TRA,
Other Revenues, Transient Occupancy Tax,
$9,6861050, 12% $11,040,000 (13%)
Property Taxes,
$10,145,860 (12%)
Sales Tax,
$12,950,000 (16%)
Business License!
$11,935,200 (155
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Top General Fund Tax Revenues Overview
FY 2017/18 FY 2018/19 FY 2019/20
Property Tax Sales & Use Tax —UUT Other Taxes
FY 2020/21 Estimated FY 2021/22 Projected FY 2022/23
Transient Occupancy Tax Business License
0
General Fund
Appropriations
Department �vlj
Adopted
FY 2021-2022 Proposed
FY 2022-2023
POLICE DEPARTMENT
19,436,175
20,378,246
FIRE DEPARTMENT
13, 782, 667
13, 564, 268
TRANSFER
10, 538, 908
13, 475,120
RECREATION PARK AND LIBRARY DEPARTMENT
8,184,207
8,675,569
PUBLIC WORKS DEPARTMENT
61389,428
71094,856
NON DEPARTMENT
51904, 993
6,128, 801
COMMUNITY DEVELOPMENT DEPARTMENT
3081785
3,8281987
INFORMATION TECHNOLOGY DEPARTMENT
3,0231930
3,7411130
CITY MANAGER
2,453, 282
278501000
FINANCE DEPARTMENT
274121820
27576,681
HUMAN RESOURCES DEPARTMENT
977,063
174921491
CITY ATTORNEY
5611950
770,450
CITY CLERK
530,749
568,511
CITY COUNCIL
356,596
216,018
Grand Total
77, 651, 553
85, 361,128
$ Change
%Change
942,071
4.8%
(218, 399)
-1.6%
2,936,212
27.9%
491,362
6.0%
705,428
11.0%
2231808
3.8%
730,202
23.6%
7177200
23.7%
3967718
16.2%
1637861
6.8%
515,428
52.8%
208,500
37.1 %
37, 762
7.1 %
(1407578)
-39.4%
7, 709, 575
9.9%
OPEB & Other Benefits
$146,13 (0.00%)
Group Insur<
$6,624,984 (11
Retirement CaIPERS—
$5,197,967 (8.5%)
POBs
$9,770,085 (16.00%)
Proposed FY 2022-2023 General Fund Salaries & Benefits
Workers' Compensation
$2,557,219 (4.2%)
Social Security/Medicare ,
11
16
One-time use of Pension Trust fund: ($1,020,657)
u Currently the Trust has balance of approximately$5 million
o Use of the Trust Fund towards the CalPERS unfunded actuarial liability (UAL) complies with the City's UAL
policy
Utilize a 5% vacancy rate ($2.4 million)
Equivalent to 14 vacant full-time equivalent positions
Reduction to Fire Department Budget of approximately $1 million
Brown -out Engine 32 for 6 months in FY 2022-23: Savings of $50,000 in O&M
Brown
-out a Captain position on all three
shifts for 6
months: Approximate savings of $400,000
Freeze
one Captain position for 6 months
in FY 2022-23:
Approximate savings of $225,000
o Freeze Emergency Management Coordinator & O&M for Division: Approximately $364,000 in savings:
$128,000 (personnel) + $236,000 (O&M)
Maintain 20% General Fund Reserve
20% = $17,072,225 for FY 2022-2023
Incrementally increase to 25% over next several fiscal years
Based on estimated revenues and proposed appropriations for FY 2022-2023, staff projects the
ending General Fund balance on June 30, 2023, to be $20,666,491, which exceeds the 20% reserve
policy for FY 2022-2023.
This represents about a 24% reserve.
Replenish Economic Uncertainty Reserve
Current reserve is $1.9 million
Proposed reserve for FY 2022-2023 = $2 million
Maintain reserve of $2,000,000 in subsequent years
14
OPEB Trust = $30 million
Pension Trust = $5 million
PARS Retirement Enhancement Plan = $1.4 million (60% funded)
Special Revenue Fund Appropriations - $8.2 million total
Transportation appropriations: $4.9 million
Public Safety Special Revenue appropriations: $1.2 million
Other Special Revenue Funds appropriations: $1.6 million
Affordable Housing Fund: $200,000
Cultural Development Fund: $326,000
Cultural Development M % for the Arts) Fund
. Cultural Arts Coordinator ($105,000) - This represents 75% funding for this full-time position.
2. El Segundo Art Walk ($58,000)
3. Festival of Holidays ($40,000)
,. Visual Artists in Community ($35,000)
5. Arts & Culture Community Engagement Fund ($35,000)
6. 2nd City Talks ($35,000)
7. Operations Account ($10,000)
Poet Laureate Program ($8,000)
Total = $326,000 (new appropriations for FY 2022-2023)
1.7
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Douglas Street Gap Closure
Funded with Traffic Mitigation Fees
$545,000 proposed budget for principal and interest payment on loan
Pension Obligations Bonds (POBs)
Funded primarily by the General Fund &minimal amount from Enterprise Funds
Debt Service Payment of $9.8 million for FY 2022-23
Water Fund
Estimated Revenues = $36.7 million
Proposed Operating Budget = $27.5 million
Proposed Capital Budget = $3.9 million
Water rate adjustments: January 1 of 2022, 2023, 2024, and 2025.
The rate adjustments are:
Utility06FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 bmmm�
0% 3.0% 3.0% 3.0% 3.0
Wastewater Fund
Estimated Revenues = $5.3 million
Proposed Operating Budget = $5.7 million
Proposed Capital Budget = $.8 million
Wastewater rate adjustments: April 2, 2021, January 1 of 2022, 2023, 2024, and 2025.
The rate adjustments are:
-19V utility FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-
9.0% 9.0% 9.5% 9.5% 9.5%
Starting FY 2022-2023 — General Fund Payments
Annual $1,300,000 driving range ground lease payment
Annual $200,000 Community Benefit Contribution
Annual $200,000 Golf Course and Driving Range Capital Contribution
Recurring 3% beverage fee payment at driving range & golf course (minimum guarantee of
$2007000)
Annual $20,000 golf course ground lease paw
Total = $1,900,000+ per year
Equipment Replacement Fund
Estimated Revenues: $1.5 million
Proposed Budget: $1.4 million
24
General liability
Estimated Revenues: $3 million
Proposed Budget: $3.6 million
Workers' Compensation
Estimated Revenues: $3.5 million
Proposed Budget: $3.3 million
25
The Proposed FY 2022-23 Capital Improvement Program (CIP) Budget (for all funds) totals
$16,205,420, along with another $6,388,000 in carryover funds from prior fiscal years to
support 25 separate projects for a total of $22,593,420.
Please refer to the "Proposed Capital Improvement Program for All Funds" located toward
the end of this budget document for more information about each capital improvement
project.
� $120,000,000
$100, 000, 000
� $80,000,000
� $60,000,000
� $40,000,000
� $20,000,000
$0
10-Year General Fund Financial Forecast
General Fund Ten -Year Projection
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
r $0
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031
Revenues Appropriations Fund Balance
Staffing
Labor Contracts
Performance Measures
Pensions
W
Future Challenges
Future Opportunities
Long-term Financial Strategic Plan
Approve:
Resolution to adopt FY 2022-2023 Operating and CIP Budget and FY
2022-2023 Appropriations Limit
Approve various Financial Policies for FY 2022-2023
General Fund Reserve Policy
Economic Uncertainty Reserve Policy
Unfunded Actuarial Liability (UAL) Policy
Topgolf Revenue Allocation Policy
Inter -fund loan policy
MOL
Questions?
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