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Home My WebLink AboutMid Year Budget Update FY 2023-24CITY OF SEAL BEACH Fiscal Year 2023-24 Mid-Year Budget Update 1 FY 2023-24 Mid-Year General Fund Update 2 FISCAL YEAR 2023-24 Mid-Year Budget Update SOURCES ADOPTED BUDGET YTD-ACTUAL % OF BUDGET ADOPTED BUDGET YTD-ACTUAL % OF BUDGET 01-PROPERTY TAXES 13,648,600 5,726,311 42%14,797,300 6,084,746 41% 02-SALES AND USE TAXES 11,765,700 3,919,472 33%11,307,000 3,811,888 34% 03-UTILITY USERS TAX 4,170,000 2,132,422 51%4,500,000 2,325,571 52% 04-TRANSIENT OCCUPANCY TAX 1,250,000 518,565 41%1,600,000 533,289 33% 05-FRANCHISE FEES 1,091,000 206,042 19%1,090,000 230,613 21% 06-OTHER TAXES 630,800 480,612 76%850,800 728,714 86% 07-LICENSES AND PERMITS 967,100 601,794 62%859,000 534,698 62% 08-INTERGOVERNMENTAL 146,000 19,421 13%146,000 36,199 25% 09-CHARGES FOR SERVICES 2,997,600 1,612,216 54%3,276,600 1,684,944 51% 10-FINES AND FORFEITURES 1,917,500 471,247 25%2,005,100 625,981 31% 11-USE OF MONEY AND PROPERTY 675,000 315,547 47%704,000 197,647 28% 13-OTHER REVENUES 162,400 107,842 66%94,200 310,733 330% TOTAL OPERATING REVENUE 39,421,700 16,111,490 41%41,230,000 17,105,022 41% 14-TRANSFERS IN 924,700 733,500 79%924,700 - 0% TOTAL REVENUES & SOURCES 40,346,400 16,844,990 42%42,154,700 17,105,022 41% FY 2022-2023 FY 2023-2024 FY 2023-24 General Fund 3 FISCAL YEAR 2023-24 Mid-Year Budget Update Property Taxes, $14.8 M, 35% Sales Tax, $11.3 M, 27% Utility Users Tax, $4.5 M, 11% Other Revenues, $2.7 M, 6% Charges for Services, $3.3 M, 8% Fines and Forfeitures, $2.0 M, 5% Transient Occupancy Tax, $1.6 M, 4% Franchise Fees, $1.1 M, 2% Licenses and Permits, $0.9 M, 2% Property Tax Sales Tax Utility Users Tax Franchise Fees Transient Occupancy Tax 73% 79% Property Tax Seal Beach Assessed Valuation FY 2023-24 •$7.1 Billion Orange County Assessor •6,493 Parcels •7.2% change from FY 2022-23/County 6.41% •Median Detached Single-Family Home $1.35 M •Property Tax $14.8 M •35% of General Fund •Stable Revenue Source •.15 of $1.00 •On Budget FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 Millions Sales Tax Sales Tax Components $11.3 M: •Largest Consumer Goods and Restaurants •3Q23 Seal Beach down -3.8% •Receipts under from the same time as last year •4Q23 State down -2.5% FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 2015A2016A2017A2018A2019A2020A2021A2022A2023A 2024BMillions Sales Tax Transaction Tax PS Sales Tax Utility Users Tax (UUT) UUT $4.5 M Budget 11%: •Anticipate $600,000 •Electric, Natural Gas, Telecommunications •Lowered in 2014 •General Government FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024BMillions Transient Occupancy Tax (TOT) TOT $1.6 M: •3 Hotels •The Pacific Inn •Ayres •Hampton •Continues to exceed all historic levels FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024BMillions Charges for Services Charges for Services 8% $3.3 M: •A fee collected to pay for services related to the activity. •Subsidized by General Fund •Reduction in Parking Meter Revenue FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024BMillions Fines and Forfeitures •Municipal Code Violations •Vehicle Code Violations •Unclaimed Property •Parking Citation Revenue Reduction •No Animal Control Citations – Warnings •Unanticipated Increase in Animal Control Calls FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 2017A 2018A 2019A 2020A 2021A 2022A 2023A 2024BMillions As of July 1, 2023, Seal Beach Police Department took over animal control services FY 2023-24 One-Time Revenue 10 FISCAL YEAR 2023-24 Mid-Year Budget Update •$659,500 Fire Station Bond - Close the Fund •Emergency Pier Reimbursement 2022-23 $1.1 million •May 2016 Pier Fire Final Reimbursement $397,000 •Film Detail $100,915 FY 2022-23 Mid-Year General Fund Update FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE SOURCES ADOPTED BUDGET YTD-ACTUAL % OF BUDGET ADOPTED BUDGET YTD-ACTUAL % OF BUDGET 01-REGULAR SALARIES 9,694,200 4,416,125 46%10,044,256 4,462,556 44% 02-OTHER PAY AND BENEFITS 4,578,000 2,172,418 47%4,874,982 2,149,903 44% 03-RETIREMENT 4,865,000 3,795,153 78%4,959,523 3,812,827 77% 04-MAINTENANCE AND OPERATIONS 19,186,100 10,107,148 53%20,127,015 10,881,495 54% 05-CAPITAL OUTLAY 21,000 - 0%10,000 10,000 100% 06-DEBT EXPENSE 91,800 45,905 50%91,807 45,905 50% TOTAL OPERATING EXPENDITURES 38,436,100 20,536,749 53%40,107,583 21,362,686 53% 07-TRANSFERS OUT 4,591,565 1,398,750 30%15,330,789 1,022,393 7% TOTAL EXPENDITURES & USES 43,027,665 21,935,499 51%55,438,372 22,385,079 40% FY 2022-2023 FY 2023-2024 FY 2022-23 General Fund Expenditures Regular Salaries, $10.0 M, 25% Other Pay and Benefits, $4.9 M, 12% Retirement, $5.0 M, 13% Maintenance and Operations, $20.1 M, 50% FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE Maintenance and Operations •Increased costs due to 2024 Winter Storms •Increased Landscape Maintenance •SBTV-3 •Legal Fees •Body Worn Cameras •Film Detail Reimbursement FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE CC Discretionary, 0.10m, 0%Supplies/Dues/Train ing, 0.93m, 5% Rental/Lease Equipment, 0.14m, 1% Contract Professional, 6.15m, 30% Fire Services, 6.75m, 33% West Comm, 0.97m, 5% Insurance/Workers Comp, 2.63m, 13% Legal, 0.54m, 3% Maintenance, 1.03m, 5% Equipment, Materials, other, 0.92m, 5% Salaries and Benefits •Vacant Positions •Monitoring Sworn Overtime •Prepayment to CalPERS •Increased Pool Staffing FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE City Council Strategic Initiatives 15 FISCAL YEAR 2023-24 Mid-Year Budget Update $75,000 for the Citywide IT Master Plan $325,000 for the License Plate Reader System Upgrade $230,000 for the Locally Controlled Gas Tax Measure and Potential Transaction Use Tax $800,000 for Repaving of the 8th/10th Parking lots with ADA Upgrades $200,000 for the Gas Line Heater at McGaugh Pool $3,682,136 to move the Pool Funding to Lifeguard and Police Substation Headquarters capital project. Next Steps •Start Planning Now •Look for Alternative Funding Options and Seek New Revenue Opportunities •Review Discretionary Spending •Budget Development •Potential Services Delivery Reductions Jan Feb Mar Apr May June Revenue and Expense Projections Personnel Budget Development Departmental Budget Preparation Department CIP Preparation City Manager Review Preliminary Budget Preparation Public Input and Engagement City Council Review Budget Adoption Budget Development Timeline Fiscal Outlook •High inflation/Interest Rates •Heading towards fiscal challenges •Unemployment low •Reductions in Revenues •Expenditures Outpacing Revenues FISCAL YEAR 2023-24 MID-YEAR BUDGET UPDATE CITY OF SEAL BEACH Fiscal Year 2023-24 Mid-Year Budget Update 17