2022-03-02 City Council Item No. 4.1 Mid-Year Budget Review Fiscal Year 2021/2022 Special MEETING - Additional Meeting Materials__________________________________________________________
MID-YEAR
BUDGET REVIEW
__________________________________________________________FISCAL YEAR 2021/22
CITY OF MENIFEE, CA
SPECIAL MEETING: MARCH 2, 2022
AGENDA ITEM #4.1FINANCE DEPARTMENT
MID-YEAR BUDGET REVIEW
MID-YEAR
APPROPRIATIONS
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BUILDING A
SAFE,
THRIVING &
PREMIER
PLACE TO BE!
MENIFEE FY2021/22
MID-YEAR
REVIEW STEW
MENIFEE BUDGET PROCESS
FISCAL YEARSTARTS
(7/1)
MID-YEAR
BUDGET
REVIEW
JULY AUG.SEP.OCT.NOV.DEC.JAN.FEB.MAR.APRIL MAY JUNE
QUARTER #1
QUARTER #2 QUARTER #3
QUARTER #4
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MID-YEAR BUDGET REVIEW ECONOMIC
OUTLOOK
REVENUE
ANALYSIS
EXPENDITURE
ANALYSIS
STAFFING/
PERSONNELCIP
PROGRAM
MID-YEAR
APPROPRIATIONS
AMERICAN
RESCUE
PLAN (ARP)
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ECONOMIC OUTLOOK
o COVID-19: Vaccines & Variants -Gradual re-openings-Delta, Omnicron
o Economic Recovery, Unemployment &
Inflation-Moderate & steady recovery (4.1% growth GDP 2021)-Global labor and supply shortages-40-year record inflation/prices increases-Global energy/gas market uncertainty
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ECONOMIC OUTLOOK
o State Budget Surplus-$31 billion surplus estimated for 2022/23 California state budget, with revenues growing more rapidly than originally forecast.
o Stronger Labor Market-Regional unemployment rate 6.8%-185,600 jobs added since April 2020 low
o Steady growth in residential
and commercial development
(STATE & REGIONAL)
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MENIFEEECONOMIC OUTLOOK
o Consistent & steady Residential
Development Activity first half of
year.
o Various Industrial Projects (CEQA)
underway and anticipated.
o Long-Term Financial Planning-Reserve Fund Policy increased to 35% (Sept. 2021)-Unfunded Pension Liability Paid fully.-5 Year CIP Program, funding strategy.
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REVENUE ANALYSIS
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Year to year consistent increases, with slight decrease in FY2019/20 (Covid-19 initial Impact)
Month-to-month increases compared to last two (2) years
Increase of $1,661,000 at mid-year per HdL
projections
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
Jan Feb.Mar.April May June July Aug.Sept.Oct.Nov.Dec.
SALES TAX: MONTH TO MONTH COMPARISON
FY2019/20 FY2020/21 FY2021/22
$8,044,068 $8,968,068 $8,485,225
$10,751,434 $9,425,000
$4,519,458
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
FY2017-18
Actuals
FY2018-19
Actuals
FY2019-20
Actuals
FY2020-21
Actuals
FY2021-22
Adopted
Budget
2021-22
YTD Actuals
(thru Nov.
2022)
SALES TAX REVENUE (4 YEAR
HISTORICAL)
REVENUE ANALYSIS
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Increase of $2,730,000 at mid-year per HdL
projections $0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Jan Feb.Mar.April May June July Aug.Sept.Oct.Nov.Dec.
MEASURE DD REVENUE: MONTH TO MONTH
COMPARISON
FY2019/20 FY2020/21 FY2021/22
$0
$11,513,172 $12,758,791
$16,729,673
$14,776,000
$7,549,906
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
FY2017-18
Actuals
FY2018-19
Actuals
FY2019-20
Actuals
FY2020-21
Actuals
FY2021-22
Adopted
Budget
2021-22 YTD
Actuals (thru
Nov. 2022)
MEASURE DD REVENUE (4 YEAR
HISTORICAL)
$9,134,704
$16,633,568
$3,901,440
$9,586,483
$5,246,745 $6,222,597
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
FY2017-18
Actuals
FY2018-19
Actuals
FY2019-20
Actuals
FY2020-21
Actuals
FY2021-22
Adopted
Budget
2021-22 YTD
Actuals
DEVELOPMENT IMPACT FEE (DIF) REVENUE
(4 YEAR HISTORICAL)
REVENUE ANALYSIS
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(PROPERTY TAX AND OTHER REVENUES)
$12,027,685
$13,268,770
$14,397,065
$16,382,479 $17,391,094
$9,498,174
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
FY2017-18
Actuals
FY2018-19
Actuals
FY2019-20
Actuals
FY2020-21
Actuals
FY2021-22
Adopted
Budget
2021-22 YTD
Actuals
PROPERTY TAX (4 YEAR HISTORICAL)
EXPENDITURE ANALYSIS
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PERSONNEL COSTS: As of February 2022,
personnel expenditures are at 53% of
budget.
OPERATING/MAINTENANCE EXPENSES:
As of February 2022,
operating/maintenance expenditures are
at 30% of budget (remaining large
expenses to be realized/billed -dispatch
services, fire contract etc)
CAPITAL OUTLAYS: As of February 2022,
personnel expenditures are at 25% of
budget (various purchases [fleet] are
pending delivery and/or facing
extended order processing due to
supply shortages)
PERSONNEL/STAFFING
ADOPTED
(JUNE 2021)
281.65 TOTAL
•258 FULL-TIME
•23.65 PART-TIME
PROPOSED
(MID-YEAR 2022)
302.65*TOTAL
•279 FULL-TIME
•23.65 PART-TIME
* Includes July 2021-Jan. 2022
Personnel adjustments of 3
additional positions approved under
City Manager authority.
"Through teamwork and
leadership, the City of Menifee
provides essential services to
improve the quality of life of our
community."
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PERSONNEL/STAFFING
7 RECLASSIFICATION REQUESTS:18 NEW POSITION REQUESTS:
DEPARTMENT POSITION TITLE FTE
City Manager’s Office Media & Production Coordinator 1
Finance Accounting Technician I (Business License)1
Information
Technology (IT)Management Analyst II 1
Menifee PD Lieutenant (Patrol)1
Menifee PD Sergeant (Patrol Shift)1
Menifee PD Police Officer (Patrol Shift)5
Menifee PD Police Officer (Traffic)2
Menifee PD Police Officer (Commercial Enforcement
Traffic)1
Menifee PD Detective 4
Menifee PD Property Room Technician 1
TOTAL 18
DEPARTMENT EXISTING TITLE NEW POSITION TITLE
City Clerk Deputy City Clerk Assistant City Clerk
Economic Development Marketing Assistant Management Aide
Economic Development Management Analyst Sr. Management Analyst
Human Resources Human Resources
Manager
Sr. Human Resources
Analyst
Public Works/Engineering Associate Engineer Engineering Technician
Public Works/Engineering Traffic Technician Assistant Engineer
Public Works/Engineering Engineering Technician Administrative Assistant
TOTAL 7
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PRIOR ADDITIONS (+3) + 18 (MID-YEAR) = 21
ADDITIONAL PERSONNEL
Menifee
Police
DePartMent
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Chief Pat Walsh
Captain Dave Gutierrez
Captain Chris Karrer
together huMble creative
growth of Police DePartMent
97,093
98,549
100,027
101,528
103,050
104,596
60
72
80
85
90 90
55
60
65
70
75
80
85
90
95
100
92,000 94,000 96,000 98,000 100,000 102,000 104,000 106,000
2020
2021
2022
2023
2024
2025
Population
Estimated Menifee population growth rate of 1.5% per year
5-year projection
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December 2020 Presentation
together huMble creative
growth of Police DePartMent5-Year Projection with
Personnel Increase in FY 23-24 through FY 25-26
ADOPTED PROJECTED PROJECTED PROJECTED PROJECTED PROJECTED
FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26
SWORN OFFICERS 60 69 69 75 81 87
PROFESSIONAL STAFF 18 22 22 24 26 27
PATROL HOURS 205 234 234 251 268 268
TRAFFIC HOURS 11.4 23 23 28.7 34.4 34.4
OPERATIONS 4,691,167$ 4,897,297$ 5,644,216$ 5,995,543$ 6,351,409$ 6,711,951$
PERSONNEL COST 10,267,224$ 11,952,453 12,071,978 13,519,137 15,047,161 16,632,519
TOTAL BUDGET 14,958,391$ 16,849,750$ 17,716,194$ 19,514,680$ 21,398,570$ 23,344,470$
RivCo SHERIFF'S COST FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26
PATROL HOURS 200 200 200 200 200 200
EXPENDITURE BUDGET 22,626,922$ 23,758,268 24,946,182 26,193,491 27,503,165 28,878,323
Increase 7.50%5%5%5%5%5%
*NOTE - Sheriff's Department provided 120 Patrol Hours
SCENARIO: ADDITIONAL EMPLOYEES IN YEARS 3-5
POLICE DEPARTMENT
*Includes 2 CSA 86 Funded Police Officers & 1 PACT Funded Police Officer
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December 2020 Presentation
current Staffing
The City of Menifee’s population is around 105,524 and
spans across approximately 47 square miles.
The Menifee Police Department is currently authorized for
103 full time employees.
together huMble creative
77 Sworn Positions
1 Chief of Police
2 Captains
3 Lieutenants
11 Sergeants
60 Officers
26 Support Staff
1 Executive Assistant
1 Administrative Assistant
1 Budget and Grant Analyst
1 Support Services Manager
1 Senior Personnel and Training Analyst
1 Records Supervisor
6 Records Technicians
7 Community Service Officers
4 Investigative Specialists
1 Crime Analyst
2 CSI / Property Technicians
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coMPariSon Staffing
together huMble creative
City Population Size (Sq.
mile)Sworn Staff Traffic Officers Records
Staff
Lobby/Records
Weekends Total Staff
Carlsbad 115,877 37.72 129
1 Sergeant
8 Officers
2 Accident Inv.
3 CSO
10 No 172
Murrieta 114,985 33.61 102 1 Sergeant
6 Officers
1 DUI Car 7 No 162
Rialto 103,440 22.37 125 1 Corporal
5 Officers 8 No 176
Menifee
(Current)102,277 46.62 77 1 Sergeant
4 Officers 7 No 103
Menifee
(Projected)102,277 46.62 91 1 Sergeant
6 Officers 7 No 118
Hemet 85,275 27.85 78 1 Sergeant
5 Officers 7 No 95
Population during MPD formation study : 92,595 (2018)
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together huMble creative
reSPonSe tiMe
Priority Number Call Pickup To
Enroute
Enroute To At
Scene
Call Pickup To At
Scene
1
00:03:46 00:05:22 00:09:06
2
00:16:12 00:10:47 00:26:35
3
00:35:16 00:11:43 00:44:14
•Key Performance Indicators
•6 minutes for Priority 1’s
•15 minutes for Priority 2’s
•35 minutes for Priority 3’s
July 1, 2021 –February 28, 2022
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together huMble creative
requeSteD Staffing
1 Lieutenant
1 Patrol Sergeant
5 Patrol Officers
40 Patrol hours
2 Traffic officers
1 Commercial
Enforcement officer
17 Traffic hours
oPerationS Staffing
4 Detectives
23 Investigative hours
inveStigationS / SuPPort
ServiceS Staffing
1 Property / Evidence Technician
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Requested FTE staff members
14 Sworn Officers
1 Support Staff
together huMble creative
requeSteD equiPMent
BWC and In-Car Cameras
Commercial
Enforcement vehicle
In-Car Computers Duty Gear
Upfitting and equipment
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Menifee
Police
DePartMent
queStionS ?
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FY2021/22 CIP PROGRAM
PROJECT CATEGORY # OF ORIGINAL FY2021/22PROJECTS
FY 2021/22 ADOPTED PROJECTS
Transportation 7 $20,445,679
Traffic Signals 2 1,740,000
Street Improvements 1 410,000
Pavement Management 3 2,922,662
Drainage 0 0
Streetlight 0 0
Public Facilities 5 2,090,000
Parks, Trails, and Recreation 5 375,000
TOTAL:23 $27,983,341
PROJECT CATEGORY # OF ADJUSTED FY2021/22
PROJECTS
FY 2021/22 ADJUSTED
PROJECTS
Transportation 7 $23,245,679
Traffic Signals 5 2,345,984
Street Improvements 7 1,810,743
Pavement Management 7 4,814,385
Drainage 0 0
Streetlight 0 0
Public Facilities 11 10,690,000
Parks,Trails,and Recreation 7 1,381,138
TOTAL:44 $44,287,929
ADOPTED MID-YEAR
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FY2021/22 CIP PROGRAM(MID-YEAR ADDITIONAL PROJECTS AND/OR APPROPRIATIONS)
Bell Mountain Pedestrian Project: $446,210**
Newport Median Phase I (Design): $250,000
Beth Dr. Street
Improvements:
$60,000
Salt Creek Trail
Improvements
Project: $100,000
AMR Skate Park
Improvements
Project: $350,000*
AMR Resurfacing
Project: $216,666
(Total Project $650,000)
MID-YEAR CIP
APPROPRIATIONS
REQUESTS TOTAL:
$621,667
** Bell Mountain Pedestrian
Project presented as separate
staff report/appropriation at
3/2/2022 Council Agenda
* No appropriation needed, funding available from
FY2021/22 unused budget within
Fund 490 (CFD 2012-1)
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MID-YEAR APPROPRIATIONS(GENERAL FUND)
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Positive Budgetary Growth $2,308,303
CEQA Revenue 807,000
TOTAL MID-YEAR REVENUE ADJUSTMENT:$3,115,303
ONE TIME EXPENSES
Increase in Insurance Coverages & Risk Management ($80,000)
Park Master Plan Update (130,000)
Various Professional Services (251,303)
Network Cluster Servers Replacement (275,000)
Additional CEQA Contract (Professional Services)(807,000)
Special Districts OT & Standby Transfer (49,404)
Media Equipment (30,000)
Community Services: Lighting/Safety Equipment (100,000)
Community Services: Various Professional Services & Lazy
Creek Furnishing & Electronics
(100,000)
Community Services: Commercial Recycling Assistance (SB
1383)(250,000)
Community Services: Senior Low Income WM Bill Assistance Program (150,000)
Salt Creek Trail Improvements Project (100,000)
ON-GOING EXPENSES
Additional Staff/Reclassifications ($447,196)
TOTAL MID-YEAR BUDGET APPROPRIATION REQUESTS:($2,769,903)
NET DIFFERENCE TO GENERAL FUND:$345,400
(Addition to Fund Balance from mid-year)
MID-YEAR APPROPRIATIONS(QUALITY OF LIFE MEASURE DD)
BEGINNING BUDGETED MEASURE DD FUND BALANCE:$0
Positive Budgetary Growth $2,701,878
TOTAL MID-YEAR REVENUE ADJUSTMENT:$2,701,878
ONE TIME EXPENSES
Additional Police Personnel Equipment & Vehicles ($1,888,459)
Sub-Station Facility (230,137)
ON-GOING EXPENSES
Additional Police Personnel ($200,200)
TOTAL MID-YEAR BUDGET APPROPRIATION REQUESTS:($2,318,796)
PRIOR BUDGET APPROPRIATIONS:($383,082)
NET DIFFERENCE TO MEASURE DD FUND:$0
(Addition to Fund Balance from mid-year)
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MID-YEAR APPROPRIATIONS(ALL OTHER FUNDS APPROPRIATIONS)
Total by Fund Revenue Expenditure
IT FUND $1,230
FLEET FUND 2,678
GAS TAX FUND 210,738 208,319
SB1 ROAD MAINT. FUND 238,887
MEASURE A FUND (986)466,667
SLESF FUND 103,105
AQMD FUND 14,344
GRANT FUND 2,257,322
CIP FUND 69,018 60,000
PEG FUND (8,383)
TRUST FUND 60,000
LLMD 89-1C FUND 4,505
RBBD FUND 1,062,504
CSA FUND 339
CFD FUND 61,802
DIF FUND 3,157,455
QUIMBY FUND 537,866
CITYWIDE CFD FUND 58,318
BONDED CFD FUNDs 496,281 45,000
TOTAL ADJUSTMENTS OTHER FUNDS $6,009,701 $3,097,308
SUMMARY OF MID-YEAR BUDGET ADJUSTMENTS
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AMERICAN RESCUE PLAN (ARP)
American Rescue Plan (ARP)economic stimulus plan
approved by Congress and executive branch,March 11,2021.
-All local governments, including the City of Menifee received direct funding to
help bridge budget shortfalls and mitigate the impacts of COVID-19.
-Funding must be expended by December 31, 2024.
-City of Menifee received: $13,213,674 in ARP Funds
-ARP expenditures to date: $3,850,206 Menifee PD: Sanitizing/cleaning Micro-Robots, $9,999FY2021/22 Budget, $3,616,644 (Personnel)Human Resources: Neo-Gov Training Module, $61,513IT: Smart Cities & Broadband Master Plan, $162,050
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AMERICAN RESCUE PLAN (ARP)
MASS NOTIFICATION SYSTEM: $120,000Dedicated system/solution to communicate with public regarding public health (Covid-19) updates and other emergency alerts.
HOLLAND RD SEWER & RECYCLED WATER
IMPROVEMENTS: $500,000Adding recycled water/sewer components for existing properties.
PPE, ENHANCED CLEANING SERVICES, COVID-19
TESTING: $167,459
BUSINESS IMPROVEMENT
PROGRAM: $500,000Providesdirecteconomicsupporttobusinessestobeautifyandimprovetheexteriorofbusinesssites.
CITY FACILITY PURCHASE:
$969,863Facility purchase to help address/alleviate spacing needs.
TOTAL REQUESTED MID-YEAR ARP APPROPRIATIONS: $2,257,322
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MID-YEAR SUMMARY
PUBLIC SAFETY
•15 additional PD personnel (14 sworn, 1 non-sworn)
STEADY GROWTH
•Sales Tax, + $3,115,303
•Measure DD, + $2,701,878
•Other Funds, + $6,009,701
2018-2023 STRATEGIC PLAN
•Strategic Plan Action Items & areas of Strategic Priority
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2021 ANNUAL
PERFORMANCE REPORT PROVIDES
DEPARTMENT ACCOMPLISHME
NT THU FIRST HALF OF FY2021/22.
RECOMMENDED ACTION(S)
1.Accept the fiscal year 2021/22 mid-year budget review and approve the
additional budget appropriations and revenue recognitions as presented, and;
2. Adopt the updated City’s Authorized Position Listing approving additional
staffing changes, and;
3. Approve partial use of American Rescue Plan (ARP) funds/plan as recommended,
and;
4.Update FY2021/22 CIP Program to include various CIP Projects and/or updated
funding as presented for approval.
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