2021-06-02 City Council Item No. 12.2 Fiscal Year 2021-2022 Budget Adoption Presentation Regular MEETING - Additional Meeting MaterialsCity of Menifee
FY 21/22 Budget Adoption
Rochelle Clayton, Deputy City Manager
Wendy Preece, Deputy Finance Director
Margarita Cornejo, Financial Services Manager
June 2, 2021
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PURPOSE OF THE ANNUAL BUDGET
ANALYZE
CURRENT
ECONOMIC
CONDITIONS
PRIORITIZE
SPENDING
STRATEGICALLY
PLAN USE OF
RESOURCES
FORECAST
REVENUES &
EXPENDITURES
(Assumptions)
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FINANCIAL RECOVERY
Analyze Current Economic
Conditions
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CITY IMPACTS
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Budget Assumptions & Sources
-HdL Companies
-County of Riverside
-State of California
-Other Agencies
-Historical data &
trends
SOURCES-Projected Revenues
(sales tax, property tax, permit
fees, franchise fees)
-Projected Population
changes
-Projected Staffing
needs
-Projected new
Economic Development
ASSUMPTIONS
Forecast Revenues & Expenditures
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HdL Companies forecast the Sales Tax projections:
•FY 21/22 General Fund Revenue projections
$9,425,000
•FY 21/22 Quality of Life Measure Revenues
projections $14,736,000
ASSUMPTIONS:
Forecast Revenues
HdL Companies forecast the Property Tax
projections:
•FY 21/22 Secured Property Tax $8,486,722
•FY 21/22 Structural Fire Property Tax $7,646,732 -6-
Budget Assumptions
Staff began budget preparations in January and
finalized FY 21/22 Revenue Projections by the end of
April.
Total General Fund Revenue and Transfers In (Grants)
are projected at: $59,885,280
Total Quality of Life Measure Revenue is projected at:
$14,776,000
ASSUMPTIONS:
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TOTAL GENERAL FUND
REPORTING
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TOTAL GENERAL FUND REVENUES
& EXPENDITURES
Total
General
Fund
General
Fund
Quality
of Life
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STAFFING
FY 21/22 Position Updates
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TOTAL AUTHORIZED POSITIONS
REQUESTED FY 21/22
FY 20/21 Mid-Year FY 20/21 FY 21/22 FY 21/22
Beginning Adjustments Ending Requests Beginning
208.89 36.00 244.89 36.76 281.65
*24.5 New Full-time positions, 12.26 additional part-time FTEs
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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.
With the FY 21/22 proposed additions, Menifee will have a total of 281.65 FTEs.
Population:2010 2021 Growth from 2010-2021
MENIFEE 77,519 99,686 28.60%
MURRIETA 103,466 115,172 11.31%
GENERAL FUND
FY 21/22 PROPOSED BUDGET
Total Estimated Revenues/Transfers In/Use of Fund
Balance: $74,835,100
Less Operating Expenditures & Capital Projects:
($74,835,100)
Operating Surplus/(Deficit): $0 -12-
TOTAL GENERAL FUND REVENUES &
EXPENDITURES
Total OPERATING REVENUES of $71,044,636 exceed total OPERATING EXPENDITURES
of $68,925,100 by a SURPLUS of $2,119,536 which is allocated to Capital Projects.-13-
REVENUES
General Fund Operating Revenues FY2021/22 $56,268,636
Quality of Life Measure Revenues FY2021/22 14,776,000
Total General Fund Revenues $71,044,636
Transfer In/American Rescue Plan Funding $3,616,644
Quality of Life Measure Use of Reserves 173,820
Total Sources of Funds $74,835,100
EXPENDITURES
General Fund Operating Expenditures FY2021/22 $57,089,158
Quality of Life Measure Expenditures FY2021/22 11,835,942
Total General Fund Expenditures $68,925,100
Capital Projects/Capital Outlays 5,910,000
Total Uses of Funds $74,835,100
FISCAL YEAR 2021/22
Revenue vs. Expenditures
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FISCAL YEAR 2021/22 REVENUES, TRANSFERS IN AND USE OF FUND BALANCE
-21--15-
*Quality of Life
Sales Tax revenue
is higher than
general Sales Tax
(Bradley Burns)
due to online sales
and large item
sales (cars, boats,
RVs) purchased
from outside the
City.
GENERAL FUND REVENUES
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REVENUES FY 2019/20
Actuals
FY 2020/21
Adopted Budget
FY 2020/21
Adjusted Budget
FY 2021/22
Proposed
Percentage
(%) Change
(FY21 to
Proposed)
Percentage
(%) of Total
Property Tax 14,397,064$ 16,173,725$ 16,561,182$ 17,391,094$ 5.01%24.48%
Sales Tax 8,485,225 7,971,000 9,200,000 9,425,000 2.45%13.27%
Development Fees 12,467,019 10,683,450 12,893,800 14,025,890 8.78%19.74%
Vehicle License Fee 7,156,803 6,760,854 7,674,277 8,200,000 6.85%11.54%
Franchise Fees 6,739,806 3,872,963 3,872,963 3,985,000 2.89%5.61%
Quality of Life 12,617,232 10,367,000 14,000,000 14,736,000 5.26%20.74%
Other 3,321,727 3,185,953 2,753,299 3,281,652 19.19%4.62%
Total General Fund Revenues 65,184,875$ 59,014,945$ 66,955,521$ 71,044,636$ 6.11%100.00%
Transfers In 139,675$ 741,630$ 141,630$ 3,616,644$ *n/a n/a
Transfer In/Use of Fund Balance n/a n/a n/a 173,820$ n/a n/a
Total General Fund Sources 65,324,550$ 59,756,575$ 67,097,151$ 74,835,100$ n/a n/a
*Transfer In from the Grant Fund from American Rescue Plan Funds
GENERAL FUND EXPENDITURES
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EXPENDITURES FY 2019/20 Actuals
FY 2020/21
Adopted Budget
FY 2020/21
Adjusted Budget
FY 2021/22
Proposed Budget
Percentage
(%) Change
Percentage
(%) of Total
Public Safety (Fire, Police, Code, Animal)36,454,066$ 31,087,118$ 36,196,251$ 39,076,321$ 7.96%56.69%
Administration 7,924,084 10,782,500 14,032,927 11,856,208 -15.51%*17.20%
Public Works/Engineering/NPDES/EOS 4,855,395 5,526,768 6,451,446 7,010,431 8.66%10.17%
Community Development 2,412,727 3,416,694 4,244,860 3,233,588 -23.82%**4.69%
Community Services 2,399,846 2,512,978 2,879,357 3,382,644 17.48%***4.91%
Building & Safety 2,053,021 2,074,722 2,154,531 2,364,881 9.76%3.43%
Economic Development 1,280,756 1,460,437 1,528,148 1,709,889 11.89%***2.48%
City Council 160,839 315,958 315,958 291,137 -7.86%0.42%
Total General Fund Expenditures 57,540,735 57,177,175 67,803,479 68,925,100$ 8.57%100.00%
Capital Projects/Capital Outlays 2,240,100 2,509,400 12,192,564 5,910,000$ -51.53%****n/a
Total General Fund Uses 59,780,835$ 59,686,575$ 79,996,043$ 74,835,100$ n/a n/a
*FY 20/21 Administration Adjusted Budget includes $2,500,000 transfer out of Waste Management funds for capital projects
**FY 20/21 Community Development includes $476,000 for the General Plan and Development Code
***FY 20/21 Community Services and Economic Development Adjusted Budgets were reduced due to Covid-19
****FY 20/21 Capital Projects/Capital Outlay Adjusted Budget reflects roll-overs of long-term capital projects
GENERAL FUND EXPENDITURES
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Public Safety (Fire,
Police, Code, Animal)
56.69%
Administration
17.20%
Public
Works/Engineering/N
PDES/EOS
10.17%
Community
Development
4.69%
Community Services
4.91%
Building & Safety
3.43%
Economic Development
2.48%
City Council
0.42%
$68,925,100
not including Capital Projects
Police & Fire (only) =
$36,754,910, 53.33%
QUALITY OF LIFE
MEASURE
-FY2021/22 Revenue & Expenditures Summary
-Quality of Life Measure Expenditure Detail
-Quality of Life Measure Summary -19-
QUALITY OF LIFE MEASURE
FUNDING
INCREASING
PUBLIC
SAFETY
ENHANCING
FIRE SERVICES
IMPROVING
INFRASTRUCTURE
Menifee voters approved Measure DD,
the one percent sales tax increase, by a
convincing 68 percent in November 2016.
Revenues from Measure DD are required to
remain local and can only be used for critical
City services like public safety and 911
emergency response services; keeping our
roads, parks and infrastructure in good
condition; and other general service needs
that make Menifee a desirable place to work,
play and do business. The Measure DD Citizen
Oversight Committee meets regularly and
provides oversight on how Measure DD funds
are spent to ensure the integrity of the
measure. With these funds, the City of
Menifee is able bridge the funding gap
required to maintain a safe, clean and vibrant
community our residents have come to expect.
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QUALITY OF LIFE MEASURE
FUNDING
ENHANCING
FIRE SERVICES
The Measure DD Citizen Oversight Committee
meets regularly and provides oversight on
how Measure DD funds are spent to ensure
the integrity of the measure.
The Measure DD Oversight Committee
reviewed the proposed budget at its meeting
on May 18, 2021 and recommended City
Council approval.
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Proposed Quality of Life Measure
FY 21/22 Budget
Code Enforcement $ 374,253 2.50%
Personnel –3 Officers 374,253
CalFire Department 5,171,600 34.59%
Personnel 5,171,600
Menifee Police Department 6,290,089 42.07%
Dispatch (40%)1,262,907
Personnel 5,027,182
Capital Projects/Capital Outlays 3,113,878 20.84%
Total Proposed FY 20/21 Expenditure Budget $14,949,820 100.00%
Recommendation to budget use of 6/30/21 projected ending fund balance -$173,820
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Proposed Quality of Life Measure -
FY 21-22 CIP Funding Request
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QUALITY OF LIFE MEASURE REVENUE
& EXPENDITURES FY 21/22
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Expenditures FY 2019/20 Actuals
FY 2020/21
Adjusted Budget
FY 2021/22
Proposed Budget
Percentage
(%) Change
Percentage
(%) of Total
Menifee Police 4,855,886$ 5,274,178$ 6,290,089$ 19.26%53.14%
Riverside County Sheriff 3,573,072$ -$ -$ 0.00%0.00%
CalFire 3,893,526 4,911,862 5,171,600 5.29%43.69%
Code Enforcement 234,261 302,396 374,253 23.76%3.16%
Total Expenditures 12,556,745$ 10,488,436$ 11,835,942$ 12.85%100.00%
Capital Projects/Capital Outlays 2,240,100 9,106,119 3,113,878 -65.80%*26.31%
Total Uses 14,796,845$ 19,594,555$ 14,949,820$ n/a n/a
*FY 20/21 included $1.5 million for ladder truck, $2.2 million for Holland Overpass and $2.2 million for new Fire Station #5
REVENUES FY 2019/20
Actuals
FY 2020/21
Adjusted Budget
FY 2021/22
Proposed
Percentage
(%) Change
(FY21 to
Proposed)
Percentage
(%) of Total
Sales Tax 12,617,232$ 14,000,000$ 14,736,000$ 5.26%99.73%
Interest 141,560 55,000 40,000 -27.27%0.27%
Total Revenues 12,758,791$ 14,055,000$ 14,776,000$ 5.13%100.00%
Transfer In/Use of Fund Balance 2,038,053 5,539,555 173,820 -96.86%1.18%
Total Source of Funds 14,796,845$ 19,594,555$ 14,949,820$ N/A N/A
RESERVE/FUND
BALANCE POLICY –
Where we are now…
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FUND BALANCE POLICY
Fund Balance Policy adopted by City Council by Resolution 13-
340 on August 21, 2013
To establish a minimum of 25% General Fund Balance Reserve
(equal to approximately 3 months of operating expenses) with the following
Reserve Balances:
•Operating Stabilization Reserve of 10% for Catastrophic
Emergencies. (FY 21/22 = $6,892,510*)
•Economic Uncertainty Reserve of 10% for Economic Distress.
(FY 21/22 = $6,892,510*)
•Unassigned Fund Balance Reserve of 5% designed to protect
against cash flow shortfalls. (FY 21/22 = $3,446,255*)
*If the current proposed budget is adopted these reserve balances will be adjusted for FY 21/22
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FY 21/22 CITYWIDE
BUDGET
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TOTAL CITY-WIDE EXPENDITURES
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FY 21/22 Total:
$122,677,319
TOTAL ALL FUNDS BUDGET with Fund Balance
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*Includes additional
CDBG revenue &
expenditure of
$7,663
Fund
Projected
Beginning Fund
Balance (7-
01-2021)
Proposed
Revenues &
Transfers In
Proposed
Expenditures
& Transfers
Out
Projected Ending
Fund Balance
(6-30-2022)
AQMD 56,417$ 116,700$ 116,700$ 56,417
CAPITAL PROJECTS 162,877$ 114,868 277,745 -
CDBG -$ 527,689 527,689 -
CFD'S 3,768,364$ 3,549,139 3,452,697 3,864,806
CSA'S (174,007)$ 1,875,819 1,987,373 (285,561)
DEBT SERVICE 1,575,770$ 1,787,151 1,787,151 1,575,770
DIF/QUIMBY/RBBD 8,386,672$ 5,246,745 7,312,353 6,321,064
FACILITIES MAINTENANCE 69,404$ 712,282 712,282 69,404
FLEET MAINTENANCE 13,890$ 1,959,343 1,959,343 13,890
GAS TAX -$ 2,393,327 2,393,327 -
GENERAL FUND 35,794,153$ 59,885,280 59,885,280 35,794,153
GRANT FUND 817,714$ 6,606,837 3,616,644 3,807,907
IT FUND 1,902,512$ 4,395,700 5,101,327 1,196,885
LLMD'S 3,086,032$ 840,061 836,264 3,089,829
MEASURE A -$ 1,952,000 1,952,000 -
MEASURE DD 173,820$ 14,776,000 14,949,820 -
P.E.G. FUND 424,106$ 175,000 268,000 331,106
SB 1 FUND 187,876$ 1,827,490 2,015,366 -
SLESF FUND 84,015$ 140,000 140,000 84,015
TRUST FUND 98,667$ - - 98,667
TUMF FUND 1,624,398$ 14,928,423 13,385,958 3,166,863
GRAND TOTAL 58,052,680$ 123,809,854$ 122,677,319$ 59,185,215$
•With the Covid-19 American Rescue funds, bring the Police Department staffing levels to projected FY 24/25 in FY 21/22 and reduce response times.
•Continue to right size citywide staffing levels in-line with City growth, to continue to provide citizens and customers with excellent customer service.
•Provide Public Works staff with additional heavy equipment to bring more road maintenance abilities in-house and reduce response times.
•Get CIP projects shovel ready to take advantage of grant funding opportunities.
CAREFUL PLANNING = BALANCED BUDGET
FISCAL PLANNING
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Recommendation:
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1.Adopt Resolution No.21-XXX approving the Fiscal Year 2021/2022 Budget;
2. Adopt Resolution No. 21-XXX approving the GANN Appropriations Limit; and
3. Adopt Resolution No 21-XXX approving the Authorized Position Listing.
Questions?
Thank You