2021-03-03 City Council Item No. 12.1 Fiscal Year Ending June 30, 2021 Mid-Year Budget Review Presentation Regular MEETING - Additional Meeting MaterialsCity of Menifee
Fiscal Year Ending June 30, 2021
Mid-Year Budget Review
Rochelle Clayton, Deputy City Manager
Wendy Preece, Deputy Finance Director
Margarita Cornejo, Financial Services Manager
City Council Meeting March 3, 2021
FINANCIAL UNCERTAINTY
May 2020 Budget Planning: Analyze
Current Economic Conditions
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FY 20/21 Budget Assumptions
Staff began budget preparations in January and
finalized FY 20/21 Revenue Projections prior to
COVID-19 related closures & stay-at-home orders.
Original General Fund Revenue projected:
$53,327,140
Original Measure DD Revenue projected: $11,771,000
Total General Fund Revenue was originally
projected to be $65,098,140 and reduced by
$5,411,566 to $59,686,574.
ASSUMPTIONS to include COVID-19 impacts:
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Addressing the Unknowns
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Covid Response –Tier 1
Staff Safety
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Covid Response –Tier 2
Uninterrupted City Hall Access
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Covid Response –Tier 3
Community & Business Support
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Covid Response –Tier 3
Community & Business Support
MASK UP, MENIFEE
SLOW THE SPREAD OF COVID-19
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What Could Have Happened…
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General Fund Sales Tax FY 2019 vs
FY 2020 March -June
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General Fund Sales Tax FY 2020 vs
FY 2021 through November
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Measure DD Transaction Tax FY 2019
vs FY 2020
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Measure DD Transaction Tax FY 2020
vs FY 2021 through November
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General Fund Development Fees
Comparisons
FY 18/19 FY 19/20 Difference
%
Increase/
(Decrease)
4,678,832 4,246,532 (432,300) -9.24%
FY 19/20 FY 20/21 Difference
%
Increase/
(Decrease)
5,660,535 6,833,949 1,173,414 20.73%
Development Fees March thru June
Development Fees July thru December
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FY 2020/2021 Mid-Year Budget
General Fund
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Positive Budgetary Growth (revenues/savings)$2,689,964
CSA Revenue Transfer 851,000*
Total Mid-Year Revenue Adjustment:$3,540,964
ONE TIME EXPENSES
Additional PERS Unfunded Liability (170,000)
Increase in Insurance Coverages (297,100)
Professional Services, Building Leases, Service Chgs.(66,200)
ON-GOING EXPENSES
CSA Expenditure Transfer (847,677)*
Unfreeze & Additional Staff/Reclassifications (459,593)
Total Mid-Year Budget Realignment Requests (1,840,570)
Net Difference to General Fund (Addition to Fund Balance from mid-year):$1,700,394
THE PLAN
FY 2020/2021 Mid-Year Budget
Measure DD
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Beginning Budgeted Measure DD Fund Balance:$2,493,331
Positive Budgetary Growth (revenues/savings)$3,688,000
ONE TIME EXPENSES
Holland Road Overpass (1,600,000)
New Fire Station #5 (2,153,433)
Fire Station #68 Interior Improvements (300,000)
Pavement Management Program (1,954,378)
Total Mid-Year Budget Realignment Requests (6,007,811)
Net Difference Measure DD (Use of Available Fund Balance): ($2,319,811)
Remaining Available Fund Balance:$ 173,520
THE PLAN
Staffing Requests
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UNFREEZE
Building & Safety 2 Building Inspectors
1 Building Permit Technician
Code Enforcement 1 Code Enforcement Technician
1 Code Enforcement Supervisor (converted from Manager)
Economic Development 1 Marketing Assistant
Public Works 2 Public Works Inspectors
Finance 1 Cashier (converted from Contract & Purchasing Specialist)
NEW
Public Works 2 Street Maintenance Worker II (one Equipment Operator)
1 Street Maintenance Worker I
Information Technology 1 AV Techncian
City Manager 1 Media Specialist
Engineering 1 Associate Engineer CIP
Community Services 1 Park/Landscape Maintenance II –Right-of-ways
.5 Part-Time Park/Landscape Attendant –Right-of-ways
16.5 New Positions
Staffing Requests (Cont.)
UNFREEZE -RECLASSIFICATIONS
Information Technology 1 Part-Time GIS Tech to Full-Time GIS Tech (Addtl .5 FTE)
Finance 1 Accounting Assistant to Contract/Purchasing Tech I
1 Accounting Tech to Contract/Purchasing Tech II
3 Reclassifications
TOTAL OF 17.0 ADDITIONAL FTEs
With the addition of these unfrozen/new positions, City Management is focusing their
hiring strategy on critical areas that:
Create and further develop new revenues for the City
Investing in the future through improved infrastructure
Ensuring the safety and cleanliness of the City
Increased and Improved customer service
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TOTAL AUTHORIZED POSITIONS
REQUESTED FY 20/21
Fiscal Year Adopted Prior Adjustments Mid-Year Total Authorized
2020/2021*208.89 15.00 17.00 240.89
*17 New Full-time positions, which includes 16.5 new FTE positions and .5 FTE from
converting Part-time to a Full-Time position
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*Note –Murrieta’s FY20/21 adopted budget indicates 406.59 FTEs (including 71.75-Fire, 18.59-
Library and 4.25-Lifeguards) which amounts to 312.00 FTEs without those respective services.
Population:2010 2020 Growth from 2010-2020
MENIFEE 77,519 97,093 25.25%
MURRIETA 103,466 115,561 11.69%
Other Funds Mid-Year Requests
Totals By Fund Revenues/Savings Expenditures/Reserves
Gas Tax Fund (7,300)$ 51,776$
SB 1 Road Maintenance Fund 450$ -$
Measure A Fund -$ 184,943$
SLESF Cops Fund 5,862$ -$
AQMD Fund (165)$ -$
TUMF Fund (38,500)$ -$
Capital Projects Fund 37,795$ -$
L&LMD 89-1 C (3,875)$ 57,791$
RBBD Funds 17,160$ -$
CSA Funds (854,247)$ (856,487)$
DIF Funds 566,539$ 3,480,021$
CFD Funds 303,933$ 124,444$
Debt Service Fund (1,500)$ -$
Veteran's Memorial Fund (15)$ -$
TOTAL ADJUSTMENTS OTHER FUNDS 26,137$ 3,042,488$
SUMMARY OF MID-YEAR BUDGET ADJUSTMENTS OTHER FUNDS
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Current Economic Outlook
Continued Expanding Retail Sales =
Increased Sales Tax Revenues
Approximately $1.3M higher through November
than the previous fiscal year
Expanding Development =
Increased Development Revenues
Approximately $1.2 million higher through
December than the previous fiscal year
Increase In Property Valuations =
Increased Property Tax Revenues
Approximately $333,419 higher through December
than the previous fiscal year
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Continued Need for Funding
Currently Budgeted in FY 20/21 -29 Capital Projects: $16,069,468
Some Projects are Partially Funded
●Holland Road Overpass ●Future City Owned City Hall
●McCall Road Interchange Improvements ●Future Garbani Road Interchange
●Bradley Bridge ●Paloma Wash Pedestrian Bridge
●Additional Pavement Projects
Projects Needing Future Funding:
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Highlights of Mid-Year Budget
Assumptions
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Budgeted Sales Tax anticipated to increase -$4,932,000 inclusive of Measure DD
Budgeted General Fund Property Taxes anticipated to increase $378,657
Budgeted Development Revenues anticipated to increase $1,586,050
Unfreeze positions and increase current staffing by 16 FTE’s for critical areas
Complete funding on priority Capital Projects
CONTINUE ASSISTING RESIDENTS, LOCAL BUSINESSES AND DEVELOPERS
THROUGH INNOVATIVE IDEAS AND CUTTING-EDGE TECHNOLOGY
Accomplishments during COVID!
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Questions?Thank You.