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HomeMy WebLinkAboutFin Final Citywide Proposed Budget for Fiscal Year 2021-2022 and Legal Spending Limit PPTFINAL PROPOSED BUDGET FISCAL YEAR 2021-2022 CITY COUNCIL MEETING JUNE 21, 2021 HOW WE GOT HERECOVID-19 Economic Recovery Plan (CERP) presented May 18, 2020 FY21 Budget presented June 15, 2020 FY21 Budget update presented September 21, 2020 FY20 Annual Finance audited reports presented November 16, 2020 FY21 Mid-year budget update presented March 1, 2021 FY22 Measure A work plan and preliminary capital improvement program presented May 3, 2021 FY22 Preliminary citywide budget presented June 7, 2021 FY22 Final citywide budget presented tonight EXECUTIVE SUMMARY General Fund projected surplus of $53 thousand No increase in staffing headcount of 411.73 Furloughs have been removed and all frozen positions have been unfrozen American Rescue Plan Act allocation of $16 million not included in operating budget PRESENTATION AGENDA FY 20-21 Update FY 21-22 Proposed City-wide Budget Recommend the acceptance of the report FY 21-22 Appropriations Limit FY 2020-2021 BUDGET STATUS Updates from March 1, 2021 mid-year presentation GF -Projected increase in total revenues –3% Sales tax and use tax increase of $1.7 million Property transfer tax increase of $366 thousand Excess Educational Revenue Augmentation Fund (ERAF) increase of $368 thousand GF –Projected increase in total expense –<1% Increased operational transfer to Recreation to cover losses due to the pandemic FY 2020-2021 BUDGET STATUS Projected net revenues of $5 million for FY 2020-21 $500 thousand will be used to replenish the Emergency Reserve to appropriate levels Other funds – We are seeing impacts of COVID-19 Any required adjustments for other funds will be presented as part of the year-end update FOLLOW UP FOR FY 2020-2021 August/September 2021 –update on results (unaudited) November/December 2021 –Year-end financial/audit reports PROPOSED BUDGET FY 2021-2022 BUDGET CALENDAR January –Budget kickoff with departments and introduction of expenditure assumptions February –receipt of MCERA contribution rates March –budgets are received from departments and analyzed by Finance Department April/May –finalize special revenue funds, operations, internal service funds and CIP June –proposed budget is presented CITYWIDE BUDGET SUMMARY Fund Sources (Revenues and Transfers) Uses (Expenditures and Transfers) General Fund 89,616,102$ 89,562,734$ General Plan 1,136,203 928,586 Special Revenue/Grant/Trust 29,390,309 29,736,654 Enterprise (Parking)3,341,546 4,884,424 Internal Service/Capital Replacement 18,352,224 19,193,477 Misc Capital Project Funds 28,023 1,497,817 Adj for ISF Charges/Transfers (18,014,294) (18,014,294) City-Wide Totals 123,850,113$ 127,789,398$ SUMMARY OF MAIN TAKEAWAYS General Fund projected surplus of $53 thousand Year over year revenues are projected to be $4.4 million higher Year over year expenses are projected to be $7.7 million higher SUMMARY OF MAIN TAKEAWAYS No change to City workforce 411.73 American Rescue Plan Act allocation of $16 million over two years Economic Recovery for small businesses Racial equity work Housing and homelessness Climate change and sustainability Fund key technology and infrastructure projects GENERAL FUND -REVENUES Property tax increased by 2% Sales and use tax increased by 10%, largely from Measure R Most other fees such as permits, licensing, development fees and plan review increased in the range of 10-22% GENERAL FUND -EXPENSES Year over year increase in expenditures of 9.7% or $7.7 million Unfreezing and funding positions ($1.3 million; 17%) Furlough lapse ($540,000; 6.5%) Wage increases ($2.1 million; 27%) MCERA composite rate increase ($1.9 million; 25%) Policy focus areas ($1.9 million; 25%) Pension expenses are approximately 15% of total City- wide budget or 20% of General Fund Increased cost of doing business GENERAL FUND EMERGENCY RESERVES 1 PROJECTED FY 2020-2021$8.3 million PROPOSED FY 2021-2022$9 million 10% 10% WHAT'S NEXT Continue to focus on re-opening the local economy and enhancing efforts on business attraction and retention to support businesses and increase revenues Continue to collaborate with the County and all Marin cities and towns to evaluate opportunities for savings through additional partnerships, shared services, and/or other consolidation efforts Make headway on competing needs and policy focus areas Determine eligibility and reporting requirements for ARPA funding OTHER FUNDS Emergency Medical Services Capital Project Funds (Presented May 3) Measure A –Open Space (Approved May 3) Measure D –Library Parcel Tax (5th year) Measure C –Marin Wildfire Prevention (2nd year) Parking Enterprise Fund Community Services –Recreation Community Services –Childcare/Preschool STAFFING Reinstate frozen positions Remove the furlough which was implemented for FY21 Proposed budget offers no change to staffing from current levels GANN APPROPRIATIONS LIMIT New calculated limit: $150,770,339 Appropriations subject to limit: 82,522,271 Under the legal limit: $68,248,068 RECOMMENDED ACTIONS (1)Adopt a resolution approving the Fiscal Year 2021- 2022 Budget (including Capital Improvement Program) (2) Adopt a resolution approving GANN Appropriations Limit