DATE: March 12, 2024
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT
FY 2024 Mid-Year Budget Review: Adopt a Resolution Approving the FY 2024 Mid-Year Budget Amendments and Receive and Review the Five-Year General Fund Financial Model Update
RECOMMENDATION
That the City Council 1) reviews the FY 2024 Mid-Year budget; 2) adopts a resolution providing amendments to the previously adopted City of Hayward FY 2024 Operating Budget (Attachment II); and 3) adopts a resolution providing amendments to the previously adopted City of Hayward FY 2024 Capital Improvement Program Budget (Attachment III).
SUMMARY
This report presents the mid-year review of the FY 2024 Adopted Budget, and an update to the Five-Year General Fund Financial Model (model) presenting proposed changes and projected year-end results based on current trends and data. While staff considers the entire City budget in its mid-year review, this report focuses primarily on the General Fund.
Proposed FY 2024 mid-year expenditures net a total increase of $17.9 million in General Fund expenses. Of this amount, $14.9 million is related to previously authorized and approved appropriations, and proposed FY 2024 mid-year expenditure adjustments totaling a net increase of $1.99 million, and $1.0 million for the previously approved commitment to the Employee Home Loan Pilot Program. Table 1 and Table 2 below detail the key changes in General Fund expenditures related to previous Council authorized and approved appropriations, and proposed new FY 2024 mid-year requests:
Table 1: Previous Council Authorized and Approved General Fund Appropriations
|
Previous Council Approved Appropriation |
FY 2024 Impact ($) |
|
Employee Contract Terms - Local 1909, HPMU, and City Council |
$1,688,651 |
|
Replenish stolen and damaged emergency shelter equipment |
$12,057 |
|
New Image Landscape for Downtown Hayward Maintenance |
$116,402 |
|
Annual contingency for Hayward Median Maintenance with Brightview Landscape |
$30,000 |
|
STEP Grant Appropriations |
$265,000 |
|
Appropriate grant funding for Officer Wellness and Mental Health |
$113,737 |
|
Appropriate grant funding for the Hayward Animal Shelter |
$8,000 |
|
Hayward Literacy Council Reimbursement |
$10,750 |
|
Transfer-Out: Loan to Economic Development Corporation for the Purchase Cinema Place |
$8,600,000 |
|
Previously Approved FY 2023 Budget Carryforwards |
$4,073,282 |
|
Previous Council Approved Appropriations Subtotal |
$14,917,879 |
Table 2: Proposed New FY 2024 General Fund Mid-Year Requests
|
Mid-Year Request (NEW) |
FY 2024 Impact ($) |
|
No Mid-Year Personnel Requests |
$0 |
|
Personnel Expenses |
$0 |
|
Unanticipated services and software expenses |
$183,500 |
|
Expenses related to the US Conference of Mayor’s |
$20,000 |
|
Expenses related to the Alameda County Mayor’s Dinner |
$8,000 |
|
Reallocation of ISF charges from Special Revenue to the General Fund |
$26,482 |
|
Additional consulting services inspection fees and plan check for services |
$500,000 |
|
Expenses to support Downtown Special Events |
$40,000 |
|
Downtown Hayward Improvement Association (DHIA) Assessment increase |
$5,581 |
|
Transfer-Out: General Fund Capital - Replace freezer necessary for animal control operations |
$11,000 |
|
Transfer-Out: Information Technology Fund - Previously collected technology fee revenue |
$166,544 |
|
Transfer-Out: Fleet Management Fund - Fuel costs and deferred repairs and maintenance |
$436,244 |
|
Transfer-Out: General Liability Fund - Increase in insurance premium |
$296,958 |
|
Transfer Out: Facilities Management Fund - Security Services and PGE costs for the FS6 Training Center |
$296,243 |
|
Non-Personnel Expenses |
$1,990,552 |
|
Mid-Year Requests (NEW) Subtotal |
$1,990,552 |
|
|
|
|
Appropriate funds for previously approved Employee Home Loan Pilot Program |
$1,000,000 |
|
Mid-Year Requested Appropriation Total |
$2,990,552 |
|
|
|
|
TOTAL GENERAL FUND EXPENSES |
$17,908,432 |
General Fund revenues are expected to exceed the originally projected FY 2024 amount by $10.1 million. Changes in revenue projections are detailed in Table 3 of the report. Key changes in the General Fund revenues are as follows:
The total change to the FY 2024 Adopted Budget is an increase of $17.9 million. Of that amount, $8.3 million is related to operational expenses, with $9.6 million in appropriations related to authorized loans to Hayward Economic Development Corporation ($8.6 million), and loans for the Employee Home Loan Pilot Program ($1.0 million).
If mid-year requests are approved as proposed, in addition to the previously approved appropriations, the FY 2024 Revised Budget would result in $12.9 million projected use General Fund Reserves for FY 2024.
This report provides an overall update to the City’s Five-Year General Fund outlook.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution Operating Budget
Attachment IIA Exhibits A & B
Attachment III Resolution Capital Improvement Budget
Attachment IIIA Exhibits A & B
Attachment IV General Fund Long Range Financial Model Update