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HomeMy WebLinkAboutItem 3b. Continued Review of FY 2022-23 Mid-Year Budget Review Item 3b Department: Finance Cost Center: 2002 For Agenda of: 2/11/2023 Placement: Business FROM: Derek Johnson, City Manager Emily Jackson, Finance Director Prepared By: Natalie Harnett, Principal Budget Analyst SUBJECT: FISCAL YEAR 2022-23 MID-YEAR BUDGET REVIEW – CONTINUED FROM THE FEBRUARY 7, 2023 CITY COUNCIL MEETING RECOMMENDATION Provide direction on whether the one-time budget allocations from the 2021-23 Financial Plan listed in Attachment A – Appendix B should be considered as ongoing expense and included in the base budget for 2023-25. POLICY CONTEXT The City’s budget policies require that the City Council review the City’s budget and financial condition at least every six months. The mid-year review is part of the ongoing quarterly reporting process and fulfills that purpose. The review allows the Cou ncil to adjust revenue and expenditure assumptions should the need arise. The accompanying Mid-Year Budget report for 2022-23 provides a comprehensive overview of the City’s financial condition half-way through the fiscal year and summarizes current financial trends since the adoption of the 2021-23 Financial Plan Supplement in June 2022. DISCUSSION 2022-2023 One Time Expenses As part of the development of the 2021 -2023 Financial Plan, the City allocated one-time budget to fund critical services in support of Major City Goal objectives. The total amount of expenditures and the details are included as Attachment A – Appendix B. Staff has reviewed the list and reduced it to what staff believes are essential and critical items that support operations and Major City Goal objectives. Staff recommends that the Council provide direction on whether to add some or all of the costs to the ongoing budget. Approximately $1.8 million has been assumed in the forecast for ongoing expenses related to these or other ongoing needs. Determining whether to include these specific one-time costs in the budget or whether to leave a budget “placeholder” to fund potential other needs will be useful in terms of how to weigh other competing expenditures. If Council elects to put the identified list of costs into the ongoing budget, staff will return with a budget resolution on consent at a future meeting to memorialize Council’s action. Page 571 of 577 Item 3b Public Engagement Public comment on the item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. The Mid-Year Report will also be posted on the City’s website for public review. CONCURRENCE The City’s internal Financial Plan Steering Committee has met on multiple occasions and concurs with the recommendations included in this report. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: Yes Budget Year: 2022-23 Funding Identified: Yes ALTERNATIVES The Council could direct staff to not implement the proposed budget change recommendations. Should the adjustments not be approved, the bu dget will remain unchanged at the adopted budget levels. Staff does not recommend an unchanged budget due changing needs of the community and the City organization. ATTACHMENTS A - FY 2022-23 Mid-Year Budget Report Page 572 of 577 Appendix B: One time 2021-23 Budget Allocations Appendix B: One-Time Budget Allocations Ending June 30, 2023 The following list includes some of the one-time budget allocations from the 2021-23 Financial Plan that are not currently included in the ongoing budget. Staff are not requesting Council action on any budget allocations at this time; however are providing the list as recommend of things that should be incorporated into ongoing operations before consideration of new initiatives. The reason that many of these initiatives were budgeted as one time was because the economic outlook was unclear at the time. 1 Admin/IT 2 Arts, Culture and Community Partner Support 25,000$ 3 City 101/Community Academy - Continuation of Pilot Program 15,000$ 4 DEI Civic Spark Fellows 30,000$ 5 DEI High Impact Grants 150,000$ 6 ECOSLO partnership - SLO Stewards, Tree Planting & Maint., Green Business, Creek Clean Up (4.3.c)20,000$ 7 Contract Sustainability & Natural Resources Analyst (1 FTE)115,000$ 8 CDD 9 Housing and Homelessness Major City Goal (25% Expansion of 40 Prado HSC Beds) - Proportions City share to County contribution 63,826$ 10 Contract Housing/Homelessness Assistant (1 FTE)86,000$ 11 Finance 12 MOTION Subject Matter Expert (.5 FTE Supplemental)35,568$ 13 Fire 14 Fire Intern Program 23,257$ 15 Human Resources 16 Intern Funding 16,364$ 17 Classification and Compensation Support 43,500$ 18 Centre for Organization Effectiveness 40,000$ 19 Parks & Rec 20 Contract Volunteer Coordinator (1 FTE) 102,000$ 21 Public Works 22 Pilot: Contract Services for increased trash and recycling services in Public Spaces 125,000$ 23 Supplemental Street and Parklet Sweeping 250,000$ 24 Transportation Interns 31,071$ 25 Plant Material and Supplies for Parks Beautification Gardener 25,000$ 26 Increased Trash Services 40,000$ 27 Public Works - Contract Coordinator (1 FTE)106,000$ 28 Police 29 Four Contract Field Service Technician Positions (4 FTE)480,000$ 30 Total 1,822,586$ Table A-2: Estimated Budget to Make One-time Allocations Ongoing Budget Report Pg. 83 Page 655 of 659Page 573 of 577 Page 574 of 577 City of San Luis Obispo, Council Memorandum City of San Luis Obispo Council Agenda Correspondence DATE: February 8, 2023 TO: Mayor and Council FROM: Emily Jackson, Finance Director VIA: Derek Johnson, City Manager SUBJECT: ITEM 7a – FISCAL YEAR 2022-23 MID-YEAR BUDGET REVIEW Staff received the request to provide a comprehensive list of one-time budget allocations that were made during the 2021-23 Financial Plan. Table 1 below shows the allocations approved with the 2021-23 Financial Plan adoption. Table 2 shows the one-time allocations approved at the 2021 -22 Mid-Year Review. Items highlighted in blue have already been approved and budgeted as ongoing via previous Council action. Continued on next page Table 1: 2021-23 Approved One-time General Fund Budget Allocations Sum of 21-22 Sum of 22-23 1 Admin/IT 1,260,263$ 938,211$ 2 "Undocu-Friendly" Logo - create. Part of effort to support undocumented community1,000$ -$ 3 Administrative Support for MCG Efforts 30,555$ 34,158$ 4 Arts, Culture and Community Partner Support 50,000$ 25,000$ 5 Better Buildings SLO, Phase II - Demonstration Project Implementation/Targeted Grant (4.2.e) 6 Business Promotions and Communication Support(1.2) 80,000$ 7 Business Retention/Recovery Programs 500,000$ 250,000$ 8 City 101/Community Academy - development & pilot 15,000$ 15,000$ 9 Community-based Multicultural Center feasibility study 40,000$ 2,500$ 10 Comprehensive DEI Strategic Planning 35,000$ 11 DEI Civic Spark Fellows 30,000$ 12 DEI Consultant/subject matter expert 30,000$ 15,000$ 13 DEI High Impact Grants - community programs 150,000$ 150,000$ 14 DEI Interns 13,586$ 15,187$ 15 Economic Development Program Support (1.1.)50,000$ 25,000$ 16 Economic Development Recovery scorecard (1.1.)30,000$ 30,000$ 17 ECOSLO partnership - SLO Stewards, Tree Planting & Maint., Green Business, Creek Clean Up (4.3.c)20,000$ 20,000$ 18 Focused efforts to attract & retain businesses owned by minorities and underrepresented communities. Support businesses serving underserved/underrepresented communities (1.1)150,000$ 19 Micro Community Collaborative (MCC) Initiative 20,000$ 20 Microgrid Feasibility Study 20,000$ 21 Minor Office Retrofits 10,000$ 22 New Economic Development Strategic Plan (1.1.)100,000$ 23 Open Space Winter Hours of Use - CEQA and technical studies (if directed to proceed) (4.3i)75,000$ 24 PEN Manual Update to enhance input from underrepresented groups 15,000$ -$ 25 Sustainability & Natural Resources Analyst (4.1.a)62,753$ 62,753$ 26 Sustainability & Natural Resources Intern/ Urban Forest Master Plan Intern (4.1.b)12,368$ 13,613$ Page 575 of 577 Item 7a. Staff Agenda Correspondence Page 2 Continued on next page Table 1: 2021-23 Approved One-time General Fund Budget Allocations Sum of 21-22 Sum of 22-23 27 CDD 905,826$ 345,826$ 28 919 Office Reconfiguration 150,000$ 50,000$ 29 Homelessness Strategic Plan 35,000$ -$ 30 Housing Element Program Implementation; Consultant Support 140,000$ 115,000$ 31 Pilot: Housing and Homelessness Major City Goal (25% Expansion of 40 Prado HSC Beds) - Proportions City share to County contribution63,826$ 63,826$ 32 Pilot: Housing and Homelessness Major City Goal (Consultant Contract)117,000$ 117,000$ 33 Safety Element Environmental Review 25,000$ -$ 34 TIPP Fast 2.0 - Utilize $250k from $2 million restricted 250,000$ -$ 35 Zoning Regulations Update for Downtown Uses and Flexible Use of Outdoor Spaces Citywide125,000$ -$ 36 City Attorney 187,253$ 37 Department Org Assessment 60,000$ 38 Part-time Asst. City Attorney 108,646$ 39 Short-term, Full-time Legal Asst. 1 7,552$ 40 Short-term, Part-time Legal Asst. 2 11,055$ 41 Community Services 105,000$ 42 Community Workforce Agreement Study 105,000$ 43 Finance 34,017$ 35,568$ 44 MOTION Subject Matter Expert (.5 FTE Supplemental)34,017$ 35,568$ 45 Fire 418,905$ 380,196$ 46 Emergency Management Services 30,000$ 30,000$ 47 Emergency Response Live-Fire Training Improvements 20,045$ 17,570$ 48 Fire Intern Program 22,691$ 23,257$ 49 Pilot: Mobile Crisis Unit 300,000$ 300,000$ 50 Recruit Academy Support (Contract Services)9,000$ -$ 51 Recruit Academy Support (Equipment)20,000$ -$ 52 Technical Rescue Team Expansion (Equipment)6,000$ -$ 53 Training and Permit Compliance Software 11,169$ 9,369$ 54 Human Resources 121,005$ 56,364$ 55 Compensation Study 30,000$ 56 Intern Funding 16,005$ 16,364$ 57 Office furniture and equipment to support new staff 14,000$ 58 Office furniture to support Contract to Regular Staff 20,000$ 59 Pay Equity Audit 30,000$ 60 Professional Recruiter 40,000$ 61 Transition to electronic files 11,000$ 62 Parks & Rec 110,188$ 57,375$ 63 Aquatics Resources to Implement COVID-19 Safety Protocols 62,000$ -$ 64 Fire Fuel Reduction Crew Tools and PPE 4,500$ 65 Open SLO Downtown Dining Resources (MCG 1.4a)13,688$ 27,375$ 66 SLO Swim Center Minor Capital Maintenance 30,000$ 30,000$ 67 Police 21,900$ 68 One time costs for Social Worker position 6,500$ 69 Spillman RIPA Module 15,400$ Page 576 of 577 Item 7a. Staff Agenda Correspondence Page 3 Table 1: 2021-23 Approved One-time General Fund Budget Allocations Sum of 21-22 Sum of 22-23 70 Public Works 660,560$ 576,433$ 71 CIP Interns 5,000$ 5,900$ 72 Continue supplmental Accessabilty and Process Improvement Manager for Project Completion34,000$ 12,000$ 73 Contract Heavy Equipment Mechanic 85,220$ 89,065$ 74 Fleet Intern 17,991$ 18,398$ 75 Mobility as a Service Study 25,000$ 76 Office Modifications -$ 20,000$ 77 One Time Tools and City uniforms - Mechanic interns 3,000$ -$ 78 Payment Correction Hwy 227 Signals/Street Lights 60,000$ -$ 79 Pilot: Contract Services for increased trash and recycling services in Public Spaces 125,000$ 125,000$ 80 Supplemental Street and Parklet Sweeping 250,000$ 250,000$ 81 Transportation Interns 30,350$ 31,071$ 82 Variable Electricity Costs until Solar Costs are Known at Swim Center 25,000$ 25,000$ 83 Utilities - Solid Waste 29,000$ -$ 84 Civic Spark Fellow 29,000$ -$ 85 Utilities - Stormwater 93,506$ 97,945$ 86 Stormwater Inspector 93,506$ 97,945$ 87 Grand Total 3,947,423$ 2,487,918$ Table 2: 2021-22 Mid-Year One-time Budget Allocations 2021-22 2022-23 1 Administration 105,000$ -$ 2 Bob Jones Bike Trail Vegetation Management 25,000$ -$ 3 Council Hearing Room - Auto Tracking Camera 30,000$ -$ 4 Crisis Communications Planning 50,000$ -$ 5 CDD 104,633$ 80,000$ 6 CAPSLO Programming - Railroad Square Safe Parking 64,633$ -$ 7 Housing/Homelessness Contract Position 40,000$ 80,000$ 8 City Attorney 120,000$ -$ 9 Litigation Support 120,000$ -$ 10 Non-dept 10,000$ -$ 11 Transfer of Mitigation Fee Payment 10,000$ -$ 12 P&R 152,850$ 101,508$ 13 Contract Volunteer Coordinator (1 FTE)32,850$ 101,508$ 14 Golf Course Pro Shop Flood Damage Repairs 120,000$ -$ 15 Police 14,200$ -$ 16 Mobile Data Computers 14,200$ -$ 17 PW 275,000$ -$ 18 Mission Plaza Landscape and Lighting Improvements Construction 275,000$ -$ 19 Grand Total 781,683$ 181,508$ Page 577 of 577