HomeMy WebLinkAbout _ 3A--Development of the City of Redding biennial budget for Fiscal Years 2023-25
CITY OF REDDING
REPORT TO THE CITY COUNCIL
Recommendation
Accept presentation regarding the development of the City of Redding’s General Fund Biennial
Budget for Fiscal Years 2023-25 and 10-year Plan; and provide general direction to staff
regarding the proposed elements that make up the same.
MEETING DATE: April 5, 2023
ITEM NO. 3A
FROM:
***APPROVED BY***
btippin@cityofredding.org
btippin@cityofredding.org
SUBJECT: 3A--Consider presentation providing information related to the development of
the biennial budget.
Barry Tippin, City Manager
Budget Workshop
Biennial Budget
General Fund
April 5, 2023
Tax Revenue Assumptions -Budget Workshop 2/16
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32
Sales Tax Property Tax TOT Cannabis Other
10 Year Plan Before & After Changes
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34
Before Changes After Changes
Discretionary Budget by Function
2023 -24 2024-25
53%
28%10%
2%
4%
1%
2%
Police Fire Community Services Development Services
Non Departmental CVB/Convention Center Library
54%
27%10%
2%
4%
1%
2%
Police Fire Community Services Development Services Non Departmental CVB/Convention Center Library
Total Budget-$109.2 Million
Discretionary -$65.8 Million
Total Budget-$111.2 Million
Discretionary -$66.1 Million
Police Department
•Police CIRT Officers
–Assumed Grant Funding (ESG, Opioid, PLHA, etc)
•Beat 8 & Park Rangers
–Utilized $3 million of ARPA to fund through FY 25-26 & removed thereafter pending
increased revenues
•Reduced Rolling Stock -$450K to $350K
•Utilize ARPA funding for vehicle purchases -$1 million
Fire Department
•Reduced Rolling Stock -$450K to $350K
•Utilize ARPA funding for vehicle purchases -$1 Million
Budget Changes
Development Services
•Eliminate Plans Examiner/Senior Engineer
•Add $50K consultant to help with necessary work impacts
General Fund Facilities
•Remove $125K per year General Fund facility deferred maintenance
•Utilize one time ARPA funding of $750K to perform deferred
maintenance
Miscellaneous Citywide
•Fuel costs
•IT -Microsoft Office 365 moved to 25-26
Budget Changes Continued
Remove Projects
•Stillwater Infrastructure -$2.5 million
•Broadband -$3.25 million
Additions
•Police Beat 8 & Park Rangers -$3 million
•Police Vehicle purchases -$1 Million
•Fire apparatus purchases -$1 million
•General Fund facility maintenance -$750K
Summary of ARPA recommendations
Capital Expense Needs
•Fire Station Improvements & Station 9 –Approximately $85 million
•Vegetation Management –Approximately $4 million per year
•Streets –Approximately $11 million per year
•City Hall & Other General Fund Facilities –Approximately $1 million per year
•MLK Center -$650K
Long Term Replacement Funding
•Police Rolling Stock & Equipment Replacement -$430K per year
•Fire Rolling Stock & Equipment Replacement -$750K per year
•Parks Rolling Stock -$235K per year
•Soccer Park Turf Replacement -$400K per year
Personnel & Operating Expenses
•Park Rangers & 8th Beat after 25-26 -$1.5 million per year
•Staffing for Station 9 –Approximately $3 million per year
General Fund -Unmet Needs
Pension Liability
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34
Safety Plan Misc Plan GF Misc Plan Other Funds PARS GF PARS Other Funds
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34
Safety Miscellaneous PARS
•Trust assets can be accessed to pay CalPERS to offset unexpected rate
increases (rate stabilization)
•Provides access to a broader universe of investments that the City can
undertake on its own, including stocks and longer-term bonds
•Broader diversification of investment assets and strategies
•Allows the City to maintain control and investment oversight of assets
•Dedicated solely for pension costs
•Reduction to Net Pension Liability on financial statements
•Requires Cash
Section 115 Trust
•Allows City to avoid paying PERS 6.8% rate of return
•City can choose the greatest benefit of reduction to future expected
payments
•No additional long term administrative burden in management
•Helps to mitigate overall long term cost of PERS
•Subject to CalPERS investment rules and returns
•Reduction to Net Pension Liability on financial statements
•Requires Cash
Additional Funding to PERS
10 Year Plan Before & After Changes
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34
Before Changes After Changes
10 Year Plan Revenues & Expenses
104,000
109,000
114,000
119,000
124,000
129,000
134,000
139,000
144,000
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34
Total Revenues Net Expenditures
$3.07 Million
$3.1 Million
City Council Discussion & Direction
Tax Revenue Projections
o Sales Tax
o FY 23 -24 -$31.5 Million
o FY 24 -25 -$32.3 Million
o Property Tax
o FY 23 -24 -$26.8 Million
o FY 24 -25 -$27.7 Million
o TOT
o FY 23 -24 -$7.8 Million
o FY 24 -25 -$8.1 Million
o Cannabis Tax
o $2.1 Million per year
o Other Taxes
o $2.6 Million per year
-
20,000
40,000
60,000
80,000
100,000
120,000
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34
Sales Tax Property Tax TOT Cannabis Tax Other Taxes
Service & Fee Revenue Projections
o Service Charges
o FY 23 -24 -$3.4 Million
o FY 24 -25 -$3.6 Million
o Licenses & Permits
o FY 23 -24 -$2.4 Million
o FY 24 -25 -$2.5 Million
o Fines & Penalties
o FY 23 -24 -$542K
o FY 24 -25 -$542K
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34
Service Charges Licenses & Permits Fines & Penalties
Miscellaneous Revenue Projections
o Cost Allocation Plan
o FY 23 -24 -$4.0 Million
o FY 24 -25 -$4.2 Million
o Redding Electric & Airport PILOT
o FY 23 -24 -$7.3 Million
o FY 24 -25 -$6.6 Million
o Utility Streets Funding
o FY 23 -24 -$1.4 Million
o FY 24 -25 -$1.4 Million
o PW Admin & NDPES Internal Charges
o FY 23 -24 -$1.5 Million
o FY 24 -25 -$1.4 Million
o Various grant & specific funding
o SAFER
o 23-24 -$1.6 Million
o 24-25 -$1.7 Million
-
5,000
10,000
15,000
20,000
25,000
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34
Internal Departments Other Revenue Other Government Redding Rancheria Use of Money & Property Interest
Transfer In (Internal Revenues) Projections
o Gas Taxes
o FY 23 -24 -$10.7 Million
o FY 24 -25 -$10.6 Million
o Dedicated Sales Tax
o Proposition 172
o $272K per year
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34
Gas Taxes Debt Service Other Transfers In
Transfer Out (Internal Expenditure) Projections
o Rolling Stock & Equipment
o FY 23 -24 -$1.4 Million
o FY 24 -25 -$1.5 Million
o Library
o FY 23 -24 -$1.0 Million
o FY 24 -25 -$1.1 Million
o Convention Center/CVB
o FY 23 -24 –$1 Million
o FY 24 -25 -$1 Million
o Repayment of Loans
o FY 23 -24 -$533K
o FY 24 -25 -$543K
(6,000)
(5,000)
(4,000)
(3,000)
(2,000)
(1,000)
-
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34
CVB & Convention Center Library Rolling Stock Other Equipment Internal Advances Repayment Of Loan
Fiscal Year 2023-24 Fiscal Year 2024-25
Expenditures by Type
68%
12%
12%
6%
2%
Personnel Operating Materials & Supplies Internal Service Fund Charges Capital Debt Service
68%
12%
12%
6%
2%
Personnel Operating Materials & Supplies Internal Service Fund Charges Capital Debt Service
Expenditures by Function –FY 2023-24
Total Budget Discretionary Budget
Total Budget is traditional budget view including all
expenses.
Discretionary Budget adjusts for Debt, UAL, & Revenues
38%
25%
13%
7%
6%
9%
2%
Police Fire Public Works
Parks & Recreation Development Services General Government & Other
Debt
53%
28%10%
2%
4%
1%2%
Police Fire Community Services Development Services
Non Departmental CVB/Convention Center Library
Expenditures by Function –FY 2024-25
Total Budget Discretionary Budget
Total Budget is traditional budget view including
all expenses.
Discretionary Budget adjusts for Debt, UAL, & Revenues
39%
25%
12%
7%
6%
9%
2%
Police Fire Public Works
Parks & Recreation Development Services General Government & Other
Debt
54%
27%10%
2%
4%
1%
2%
Police Fire Community Services Development Services
Non Departmental CVB/Convention Center Library
Police Budget
o Total Budget –
o 2023-24 -$42.0 Million
o 2024-25 -$43.4 Million
o Total FTE’s –179.61
o 122 Sworn (Increased by 11 positions prior
budget)
o 9 ARPA Positions (8 th Beat & Park Rangers)
o Significant Issues –
o Additional Rolling Stock
o Rifles
o Various operating equipment and cost
reductions including training funds
65%
14%
12%
9%
Patrol Operations Detectives Services & Records Administration
Fire Department Budget
o Total Budget –
o 2023-24 -$26.9 Million
o 2024-25 -$27.7 Million
o Total FTE’s –112
o 99 Frontline Fire Personnel
o REU Wildfire Mitigation –
o 15 Firefighters
o SAFER Grant Positions
o 12 Firefighters
o Significant Issues –
o Funded replacement hose project
o Convert Senior Fire Plans Examiner to
Assistant Fire Marshal
o Rolling Stock & Equipment Replacement
additional funding
o Station 9 construction & operations funding
o Fire Station facility improvements
o Fire Investigator position not approved
87%
8%5%
Suppression Administration Prevention
Community Services Budget
o Total Budget –
o 2023-24 -$7.9 Million
o 2024-25 -$8.1 Million
o Total FTE’s –71.96
o Recreation, Parks, Community Service Admin
o REU Wildfire Mitigation –
o 4 Public Works Maint . Workers
o 2 Arborist Lead Workers
o 1 Public Works Supervisor
o Significant Issues –
o ARPA -$750K for General Fund Facilities
o Ongoing General Fund facilities maintenance
and replacement plan
o Revenues
o Recreation -$1 Million
13%
53%
34%
Community Services Administration Parks Recreation
Public Works General Fund Budget
o Total Budget –
o 2023-24 -$13.8 Million
o 2024-25 -$13.8 Million
o Total FTE’s –60.80
o Significant Issues –
o Streets repairs & maintenance -challenges due to
funding issues
o Engineering volume of work & recruitment
challenges
o Revenues –
o Gas Tax Revenue for Streets
o Charges to Grants, Utilities, & Enterprise Funds
39%
48%
12%
1%
Streets Streets Capital Engineering Land Development
Development Services Budget
o Total Budget –
o 2023-24 -$6.1 Million
o 2024-25 -$6.2 Million
o Total FTE’s –38.82
o Significant Issues –
o Funding and ongoing challenges to
maximize technology in permitting and
planning process
o Continued staffing challenges relative to
historical levels and workload
o Revenues –
o Permits & Fee Revenues -$4.0 Million
11%
43%
36%
10%
Code Enforcement Building Planning Permit Center
General Government & Other Budgets
o Total Budget –
o 2023-24 -$12.4 Million
o 2024-25 -$12.2 Million
o Total FTE’s –43
o Revenues –
o Cost Allocation Plan -$4.2 Million
o Funds General Government
operations –Finance, Purchasing,
Treasurer, Personnel, City Clerk, City
Manager, City Attorney
12%
2%
10%
9%
16%
7%
6%
7%
7%
8%
16%
Non-Departmental City Council City Clerk City Manager
Finance Treasurer Purchasing City Attorney
Personnel Animal Regulation Debt Service
Internal Service Funds –Information Technology
Information Technology
o Total Budget –
o 23-24 –$6.4 Million
o 24-25 –$4.8 Million
o FTE -19
Geographic Information Systems
o Total Budget –
o 23-24 –$860K
o 24-25 -$717K
o FTE -4
Communications
o Total Budget –
o 23-24 -$769K
o 24-25 -$786K
o FTE -2
Internal Service Funds –Public Works
Fleet
o Total Budget –
o 23-24 –$5.6 Million
o 24-25 –$5.7 Million
o FTE -21
ET/USA
o Total Budget –
o 23-24 –$4.0 Million
o 24-25 -$3.9 Million
o FTE –15.48
RMU Admin
o Total Budget –
o 23-24 -$2.1 Million
o 24-25 -$2.1 Million
o FTE -9
Internal Service Funds –Community Services
Building Maintenance
o Total Budget –
o 23-24 –$3.8 Million
o 24-25 –$3.9 Million
o FTE -10
Marketing, Public Relations, & Communications
o Total Budget –
o 23-24 –$820K
o 24-25 -$864K
o FTE -5.23
Internal Service Funds –Personnel
Risk
o Total Budget –
o 23-24 –$10.2 Million
o 24-25 –$10.7 Million
o FTE -6
Employer Services
o Total Budget –
o 23-24 –$1.2 Million
o 24-25 -$1.1 Million
o FTE -0
Volunteer Services
o Total Budget –
o 23-24 –$172K
o 24-25 -$181K
o FTE -1
Internal Service Funds –City Clerk
Records
o Total Budget –
o 23-24 –$486K
o 24-25 –$449K
o FTE -3
Reprographics
o Total Budget –
o 23-24 –$891K
o 24-25 -$831K
o FTE –4.92
General Fund 10 Year Plan
Fiscal Year
Adopted Adopted
2023-24 2024-25 2025-26 2026-27 2027-28 2028-29
Beginning Cash Balance 22,500 20,437 17,342 12,844 12,570 12,427
Revenues 97,509 99,183 102,252 104,512 107,660 111,444
Net Transfers 7,198 6,958 7,167 7,382 7,603 7,831
Total Revenues 104,707 106,141 109,418 111,894 115,263 119,275
Personnel Costs (73,627)(76,117)(79,065)(77,217)(79,445)(82,591)
Operating Costs (25,836)(26,135)(27,419)(27,902)(28,739)(29,601)
Capital Outlay (7,107)(7,000)(7,210)(7,427)(7,650)(7,879)
Debt Service (2,118)(1,957)(1,965)(1,318)(1,314)(1,313)
Savings 1,918 1,974 1,743 1,696 1,742 1,789
Net Expenditures (106,771)(109,236)(113,916)(112,167)(115,406)(119,595)
Ending Cash Balance 20,437 17,342 12,844 12,570 12,427 12,107
Projections toward Council Objectives
Ending Cash as Percentage of
Expenditures 19.1%15.9%11.3%11.2%10.8%10.1%
Projected Personnel Percentage 67.7%68.4%68.4%67.8%67.8%68.0%
Questions?