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HomeMy WebLinkAboutAGENDA REPORT 2024 0306 CCSA REG ITEM 09A POWERPOINTFISCAL YEAR 2023-24 MID-YEAR BUDGET Hiromi DeverInterim Finance Director Item: 9.A. 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% CPI *FED Rate Ave Invest Rates CHANGES IN FEDERAL FUND RATE, CPI, AND CITY’S AVERAGE INVESTMENT RATES * 12 month change in CPI-U, Los Angeles-Long Beach-Anaheim, CA Economic impact of post-pandemic inflation •Highest Federal Fund Rate in 20 years o Higher interest rate, investment return o Lower buying power •Cost of Goods o Higher prices on consumer goods o Slow down sales growth Approach to Mid-Year Budget Adjustment •Recalculation of Investment earnings •Decrease sales tax revenue •Changes in timeline for development projects MID-YEAR BUDGET ADJUSTMENTS •Total Revenues – decrease by $9,351,492 •Increase in Investment Earnings - $2.5 million •Taxes: Increase property taxes & VLF, decrease sales tax – overall increase $0.5 mil. •Development Project related fees – moved $13.2 million to Fiscal Year 2024-25 per updated timelines in project progress •Additional funding – Transit & Solid Waste $0.7 million •Total Expenditures – increase by $462,556 •Payroll – Retirement payout, annual cash-out, higher health insurance premium – increase $100k •Reallocation – Payroll to reflect current workload •Correction of Cost Allocation Plan •Development Project related expenses – decrease $300k •Increase in General Fund transfer – increase $700k BUDGET ADJUSTMENTS FUNDS SUMMARY FY23/24 Begin Fund Balance FY23/24 Revenue Budget FY23/24 Expense Budget FY23/24 Estimate Fund Balance Proposed Revenue Adjustment Proposed Expense Adjustment Revised FY23/24 Fund Balance General Fund $1,499,393 $22,684,428 $22,638,872 $1,544,949 $1,399,560 $1,178,618 $1,765,891 Special Revenue Funds $58,963,534 $40,424,563 $41,143,896 $58,244,201 ($10,629,615)($329,778)$47,944,364 Capital Projects Funds $38,463,718 $745,943 $16,154,954 $23,054,707 ($121,437)($354,099)$23,287,369 Internal Services Fund $512 $0 $32,185 ($31,673)$0 ($32,185)$512 Total:$98,927,157 $63,854,934 $79,969,907 $82,843,857 ($9,351,492)$462,556 $72,998,136 RES ERVES $9,427,097 Endowment Fund $4,472,402 Emergency/Contingency $500,000 Economic Uncertainty $22,005,791 Special Projects Fund QUESTIONS?