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CC 2023-05-23_12a Supplemental 1 MEMORANDUM TO: City Council FROM: Michael Martinez, Chief of Police Nicole Valentine, Administrative Services Director SUBJECT: Supplemental Information Agenda Item 12.a. – May 23, 2023 City Council Meeting Review Preliminary FY 2023-25 Biennial Operating Budget DATE: May 23, 2023 The Police Department is requesting that funding identified in the preliminary budget for the Police Services Technician (PST) position be postponed from FY 2023-24 to FY 2024- 25 to assist in focusing efforts on the City’s Compensation Study during FY 2023-24 as shown in the updated Table 4 below. Table 4 – Proposed Staffing Changes The PST position was identified as a service that would greatly benefit the community based on an increase in parking complaints; responding to nonemergent calls for service such as noninjury traffic collisions, property crime reports; and facilitating crime prevention program requests. The feedback received has indicated a need for more community engagement in order to identify problems and co-produce tangible solutions to these issues. The PST has been identified as a position that would enhance the partnership between the public and the police department. As a result of this postponement Table 2, Table 3, Chart 3, Chart 4, Table 8, and Table 9, have been updated. Salaries & Benefits FY 2023-24 FY 2024-25 Police Service Technician (PST) - 108,300 FT Recreation Supervisor 65,400 67,700 Total 65,400 176,000 Table 2 – General Fund Budget & Available Fund Balance in thousands Even with the proposed expenditures, FY 2024-25 is projected to end with a fund balance of $8.2 million, which represents 35.9% of total operating expenditures in the General Fund. This will be $3.6 million above the reserve policy guideline of 20%. Table 3 – FY 2023-25 Consolidated General Fund Budget & Available Fund Balance in thousands The projected fund balance for the Consolidated General Fund at the end of FY 2024-25 is $9,907,154 or 36.3%. This leaves approximately $3,710,000 in funds available that could be allocated from fund balance and still achieve the 20% reserve goal. 2023‐24 2024‐25 2021‐22 ADOPTED PROJECTED PROPOSED PROPOSED ACTUAL BUDGET BUDGET BUDGET BUDGET Beginning Fund Balance $8,272 $7,999 $10,823 $9,176 $8,695   Revenues 18,405       17,888       19,092    18,544       19,000         Transfers  In 2,993         3,013         3,013      3,114         3,185         Total Revenues 21,398       20,901       22,105    21,658       22,185         Salaries  and Benefits 10,851       13,804       14,164    12,089       12,437         Services  and Supplies 6,455         7,199         7,352      9,385         9,725           Debt Service 129             286             286          310             294              Capital  Outlay 13               454             359          240             150              Transfers  Out 1,399         1,536         1,591      115             115            Total Expenditures 18,847       23,279       23,752    22,139       22,721       Total  Operating Incr/(Decr) 2,551         (2,378)        (1,647)     (481)           (536)           Available  Fund Balance $10,823 $5,621 $9,176 $8,695 $8,159 Reserve  %57.4% 24.1% 38.6% 39.3% 35.9% $ Above Reserve Policy $7,054 $965 $4,426 $4,268 $3,616 2022‐23 Chart 3 – FY 2023-24 Consolidated General Fund Expenditures by Department - $24.9 million This reduction in expenditures does not impact the overall percentage allocated to the Police Department. This Chart was included to demonstrate that it was reviewed as the reduction in expenditures does impact Chart 3. Chart 4 – FY 2023-24 Consolidated General Fund Expenditures by Department - $24.9 million The Police section has been reduced by $104,600. Section Appropriation of Excess Available Consolidated General Fund Balance Paragraph 2 has been updated: At the end of FY 2024-25, the projected fund balance is approximately $4,445,000 greater than the 20% goal. Because the act of allocating excess reserves adds to budgeted expenditures, the amount available to spend while keeping the reserve at 20% is $3,710,000. This is the amount staff recommends discussing and potentially providing direction to appropriate as part of this item. Table 8 Proposed FY 2023-24 Budget Summary section Proposed FY 2023-24 Budget recommends approximately $43.6 million in expenditures shown in Table 8. Table 9 Proposed FY 2024-25 Budget Summary section Proposed FY 2024-25 Budget recommends no changes to the approximately $45 million in expenditures shown in Table 9 but does reflect changes in the Beginning Fund Balance for General Fund and Available Fund Balance for General Fund. cc: City Manager City Attorney City Clerk City Website and Public Review Binder