| | | | | | | |  | CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL
Staff Report |
June 6, 2023
PUBLIC HEARINGS |
| | | | | | | | TO:
| Honorable Mayor and City Council Members
| SUBMITTED BY:
| Maxine Gullo, Ass't. City Administrator
| APPROVED BY:
| Chip Rerig, City Administrator
| | SUBJECT: | Resolution 2023-067 Adopting the Fiscal Year 2023-2024 Annual Operating and Capital Budget |
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| | | | | | | | | RECOMMENDATION: | | Adopt Resolution 2023-067 Adopting the Fiscal Year 2023-2024 Annual Operating and Capital Budget |
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| | | | | | | | | BACKGROUND/SUMMARY: |
In accordance with Carmel Municipal Code Section 3.06.020, prior to the beginning of each fiscal year, the City Administrator shall prepare and submit to the City Council a proposed operating and capital budget for the forthcoming fiscal year. The proposed budget, referred to as the Fiscal Year 2023-2024 (FY 23-24) Recommended Budget of $40.9 million is submitted for Council’s consideration. The proposed expenditures totaling $40.9 million, include the General Fund operating budget ($26.3 million), debt service ($528,000), pension mitigation and unfunded liability ($3.0 million), capital budget ($10.9 million), and workers compensation ($76,600). The proposed revenues totaling $30.9 million include property taxes ($8.5 million), sales tax ($9.6 million), transient occupancy tax ($6.8 million), and other revenue ($6.0 million). The FY 23-24 Recommended Budget requires the use of $9.9 million in prior years’ savings ("fund balance") specifically to fund deferred Capital projects.
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FY23-24 Recommended Revenue
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$30,927,502
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General Fund Operating Expenditures
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26,324,852
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Debt Service
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528,044
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Pension Mitigation / Unfunded Liability
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3,007,732
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Capital Outlay
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10,916,100
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Workers Compensation
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76,600
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FY23-24 Recommended Expenditures
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$40,853,328
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Revenues Over (Under)
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(9,925,826)
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Use of Fund Balance
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$9,925,826
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As the economy continues to rebound from the economic impacts associated with the coronavirus pandemic, the City anticipates an increase in revenues for FY 23-24. Conversely, the City also expects its expenditures to grow in FY 23-24, primarily related to increased staffing, pension costs, general operating costs, and a robust Capital Improvement Plan. Highlights of the budget include:
- Salary and benefit costs of approximately $15.1 million with minimal changes to FTE over prior FY (96.23 FTE total).
- Pension costs of approximately $3.0 million, which includes $2.0 million for the City’s annual unfunded accrued liability (“UAL”) payment to CalPERS and $1.0 million investment into the City’s established Section 115 Trust.
- Services and supplies costs of approximately $11.2 million to fund contractual services, fuel and vehicle maintenance, supplies and materials, utilities, fire services, insurance premiums, Sunset Center, staff training, marketing and other operational costs.
$10.9 million for capital projects and vehicle and equipment purchases in the following categories: public safety ($3.7 million), streets/sidewalks ($3.6 million), facilities ($1.4 million), drainage ($665,000), green infrastructure ($407,000), environment ($629,000), IT/Planning ($103,000) and CIP Contingency ($500,000).
- $528,000 for debt service payments and $76,600 for workers compensation claim administration, potential claims and costs associated with the implementation of preventive measures.
Staff provided a brief overview of the budget as part of the May 2, 2023 Council meeting. At the May 16, 2023 budget workshop, staff presented a detailed review of the budget. There have been no changes to the FY 23-24 Recommended Budget since the budget workshop.
The Recommended Budget Book has been revised to reflect updates to the Capital Improvement Plan Table 2: FY 23-24 Recommended Capital Projects and Funding Source. The CIP table now reflects consolidated projects as presented in the Capital Improvement Plan narratives. Additional language was added to the Drainage System Repair narrative on page 55 based upon feedback at the budget workshop. |
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| | | | | | | | | FISCAL IMPACT: | The FY 23-24 Recommended Budget totals $40.9 million and uses $9.9 million in prior years’ savings ("fund balance") specifically to fund deferred Capital projects. |
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| | | | | | | | | PRIOR CITY COUNCIL ACTION: | Council received a presentation regarding the Five-Year Financial Forecast and Five-Year CIP on March 21, 2023. Council received a presentation regarding the FY 23-24 Recommended Budget, inclusive of the Capital budget, on May 2, 2023. Council held a FY 23-24 budget workshop on May 16, 2023. |
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