DATE: March 1, 2023
TO: Council Budget and Finance Committee
FROM: Director of Finance
SUBJECT
FY 2023 Mid-Year Budget Review and Five-Year General Fund Financial Model Update
RECOMMENDATION
That the Council Budget and Finance Committee reviews and provides comments on the FY
2023 Mid-Year Budget Review and Five-Year General Fund Financial Model Update.
SUMMARY
This report presents the mid-year review of the FY 2023 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 2023 mid-year expenditures net a total increase of $7.04 million in General Fund expenses. Of this amount, $4.55 million is related to previously authorized and approved appropriations, and proposed FY 2023 mid-year expenditure adjustments totaling a net increase of $2.49 million. The proposed FY 2023 mid-year expenditures are all one-time in nature. Table 1 and Table 2 below detail the key changes in General Fund expenditures related to previous Council-authorized and approved appropriations, and proposed new FY 2023 mid-year requests:
Table 1: Previous Council Authorized and Approved General Fund Appropriations
|
Previously Council-Approved Appropriation |
FY 2023 Impact ($) |
|
Employee Contract Terms - Unrepresented Staff, HPOA, Local 1909 |
$3,957,875 |
|
STEP Grant Appropriations |
$210,000 |
|
Behavioral Health Justice Intervention Services Project Grant Appropriations |
$74,501 |
|
Appropriate funds for the Golden Oaks II Tract 8058 Access and Utilities Project |
$290,672 |
|
CAL OES Grant |
$2,970 |
|
Hayward Literacy Council Reimbursement |
$15,750 |
|
Previous Council Approved Appropriations Subtotal |
$4,551,768 |
Table 2: Proposed New FY 2023 General Fund Mid-Year Requests
|
Mid-Year Request (NEW) |
FY 2023 Impact ($) |
|
No Mid-Year Personnel Requests |
$0 |
|
Personnel Expenses |
$0 |
|
Mayor & City Council transition and furniture expenses |
$10,000 |
|
Consultant services to conduct a one-time language access assessment |
$30,000 |
|
Outside consultant to conduct 360 evaluations for each Council Appointed Officer |
$27,000 |
|
Allocation for the Countywide Consolidated General Election cost in 2022 |
$400,000 |
|
Appropriate revenue received Permit Fees for Inspection and Plan Check for services |
$500,000 |
|
Additional funding to cover costs of expanding security hours at City Libraries |
$35,000 |
|
Transfer-Out: General Liability Funds - Allocation of increase in the City’s insurance premium costs |
$629,476 |
|
Transfer Out: Facilities Management Fund - Security Services, and facility repairs |
$223,961 |
|
Transfer-Out: Facilities Capital Fund - Construction of Fire Administration in City Hall |
$46,506 |
|
Transfer-Out: Information Technology Capital Fund - Online Permitting Project |
$125,029 |
|
Transfer-Out: Fleet Management Fund - Fuel costs, and deferred repairs and maintenance |
$463,537 |
|
Non-Personnel Expenses |
$2,490,509 |
|
Mid-Year Requests (NEW) Subtotal |
$2,490,509 |
|
|
|
|
TOTAL GENERAL FUND EXPENSES |
$7,042,277 |
General Fund revenues are expected to exceed the originally projected FY 2023 amount by $2.6 million. Changes in revenue projections are detailed in Table 3 of the report. Key changes in the General Fund revenues are as follows:
Table 3: General Fund Revenues
|
GENERAL FUND REVENUE ADJUSTMENTS |
FY 2023 IMPACT ($) |
|
Projected increase in Property Tax above budgeted amount |
$1,600,000 |
|
Projected increase in Utility User Tax above budgeted amount |
$1,000,000 |
|
TOTAL GENERAL FUND REVENUES |
$2,600,000 |
If mid-year requests are approved as proposed, the FY 2023 Revised Budget would result in a projected surplus, building the General Fund Reserves by $11,000 for FY 2023.
This report provides an overall update to the City’s Five-Year General Fund outlook.
ATTACHMENTS
Attachment I Staff Report