Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Proposed FY 2024-25 June 24th 6.24.24 presentation
1 FISCAL YEAR2024-25 Proposed Budget FISCAL YEAR 2024-25 PROPOSED BUDGET City of Seal Beach Budget City Council Strategic Priorities Department Goals & Performance Measures Financial Plans Challenges & Opportunities The Budget is a Policy Document, a Financial Plan, an Operations Guide, and Communication Device 2 Budget Development, Planning, & Review FISCAL YEAR 2024-25 PROPOSED BUDGET 3 City Council Strategic Planning City Council and Community Budget Workshops Third Workshop ADDED •January 30,2024 •May 14, 2024 •May 15, 2024 •May 20, 2024 City Council Workshop -Strategic Initiatives 4 FISCAL YEAR 2024-25 Mid-Year Budget Update Citywide IT Master Plan License Plate Reader System Upgrade Locally Controlled Gas Tax Measure & Transaction Use Tax Repaving of the 8th/10th Parking lots with ADA Upgrades Gas Line Heater at McGaugh Pool Lifeguard & Police Substation Headquarters Capital Project Key Operational Focus Areas 5 » Maintaining Emergency Response » Funding Fire Response and Emergency Medical Services » Community Engagement and Outreach » Recreation » Alternative Transportation » Maintaining Streets, Roads, and Public Facilities » Maintaining Seal Beach’s Desirable Neighborhoods & Beaches » Maintaining High Quality Essential City Services » Maximizing Flexibility in Staffing Levels » Maintaining the City’s Policy Reserve of 25 Percent » Seeking Opportunities for Cost Recovery and Efficiencies FISCAL YEAR 2024-25 PROPOSED BUDGET Proposed FY 2024-25 Operating Budget 6 FISCAL YEAR 2024-25 PROPOSED BUDGET Estimated Proposed Actual Budget Actual Budget FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25 Property Tax 14,468,211$ 14,797,300$ 14,925,100$ 15,390,000$ Sales and Use Tax 11,666,838 11,307,000 11,307,000 11,891,183 Utility Users Tax 5,349,003 4,500,000 5,100,000 5,100,000 Transient Occupancy Tax 1,922,823 1,600,000 1,800,000 1,850,000 Franchise Fees 1,175,046 1,090,000 1,093,000 1,108,000 Business license 493,765 650,000 660,000 679,800 Licenses and Permits 1,165,217 859,000 851,620 872,000 Intergovernmental 237,950 146,000 156,000 173,800 Charges for Services 3,652,532 3,276,600 3,081,836 3,114,700 Fines and Forfeitures 1,435,250 2,005,100 1,488,800 1,598,800 Use of Money and Property 403,072 704,000 704,000 750,000 Barrel/Excise Tax 610,807 200,800 160,000 150,000 Other Revenue 1,196,384 94,200 1,642,533 85,600 Transfers in from Other Funds 868,330 924,700 924,700 1,220,781 Total 44,645,229$ 42,154,700$ 43,894,589$ 43,984,664$ REVENUES FY 2024-25 General Fund 7 Property Tax Sales Tax Utility Users Tax Charges for Services Fines & Forfeitures Hotel Tax (TOT) 74%89% Property Tax, $15.4 M, 35% Sales and Use Tax, $11.9 M, 27% Utility Users Tax, $5.1 M, 12% Charges for Services, $3.1 M, 7% Fines and Forfeitures, $1.6 M, 4% Transient Occupancy Tax, $1.9 M, 4% Other Revenue, $5. M, 11% FISCAL YEAR 2024-25 PROPOSED BUDGET Property Tax 8 •Assessed Valuation $7.3 Billion •Seal Beach 7.21% County total Growth 6.4% •Median Detached Single-Family Home $1.4M •Property Tax $15.4 M •35%of General Fund •Stable Revenue Source $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 FY 19-20 Actual FY 20-21 Actual FY 21-22 Actual FY 22-23 Actual FY 23-24 Amended FY 24-25 Proposed FY 25-26 Forecast FY 26-27 Forecast FY 27-28 Forecast FY 28-29 ForecastMillions Property Tax Transfers Property Tax-In Lieu VLF Supplemental Tax Secure/Unsecure Property Tax - Other Secured/Unsecured Prior Year Homeowners Exemption Property Taxes Unsecured Property Taxes Secured FISCAL YEAR 2024-25 PROPOSED BUDGET 3.8% $644K3.7% $617K3.7% $593K3.3% $502K4.0% $590K $466K $618K $811K $1.0M $1.3M Sales Tax Others, 2% Fuel, 9% Food/Drug, 8% Consumer Goods, 31%Restaurants, 28% Pools, 16% Business/Ind., 6% 9FISCAL YEAR 2024-25 PROPOSED BUDGET $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 FY 18-19 Actual FY 19-20 Actual FY 20-21 Actual FY 21-22 Actual FY 22-23 Actual FY 23-24 Amended FY 24-25 Proposed FY 25-26 Forecast FY 26-27 Forecast FY 27-28 Forecast FY 28-29 ForecastMillions Transactions/Use Tax Sales/Use Tax Public Safety Sales Tax 2.3% $295K 2.3% $289K2.4% $298K2.7% $317K5.2% $584K $475K $460K $427K $481K $536K Utility Users Tax (UUT) •10% of General Fund •Lowered in 2014 •Assumption includes 13.3 % growth in 2025, then minimal growth 10FISCAL YEAR 2024-25 PROPOSED BUDGET $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 FY 19-20 Actual FY 20-21 Actual FY 21-22 Actual FY 22-23 Actual FY 23-24 Amended FY 24-25 Proposed FY 25-26 Forecast FY 26-27 Forecast FY 27-28 Forecast FY 28-29 ForecastMillions13.3% $600K $598K 0.5% $27K 1% $53K2% $103K1% $51K $604K $616K $622K $625K Charges for Services •A fee collected to pay for services related to the activity. •Subsidized by General Fund $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 FY 19-20 Actual FY 20-21 Actual FY 21-22 Actual FY 22-23 Actual FY 23-24 Amended FY 24-25 Proposed FY 25-26 Forecast FY 26-27 Forecast FY 27-28 Forecast FY 28-29 ForecastMillions 11FISCAL YEAR 2024-25 PROPOSED BUDGET Revenue Opportunity Full Cost of Services Study -4.9% -$162K -$41K 2.4% $79K2.3% $76K2.3% $73K2% $61K -$14K $41K $71K$12K Fines and Forfeitures •Municipal Code Violations •Vehicle Code Violations •Unclaimed Property •Parking Revenue $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 FY 19-20 Actual FY 20-21 Actual FY 21-22 Actual FY 22-23 Actual FY 23-24 Amended FY 24-25 Proposed FY 25-26 Forecast FY 26-27 Forecast FY 27-28 Forecast FY 28-29 ForecastMillions 12FISCAL YEAR 2024-25 PROPOSED BUDGET -20.3% -$406K -$597K 0%0%0.9% $15K1.9% $30K -$609K -$615K -$615K-$615K Transient Occupancy Tax (TOT) •3 Hotels •The Pacific Inn •Ayres •Hampton $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 FY 19-20 Actual FY 20-21 Actual FY 21-22 Actual FY 22-23 Actual FY 23-24 Amended FY 24-25 Proposed FY 25-26 Forecast FY 26-27 Forecast FY 27-28 Forecast FY 28-29 ForecastMillions •14 Historic STRs, 31 additional •Beyond Pre-pandemic Levels 13FISCAL YEAR 2024-25 PROPOSED BUDGET 15.6% $250K $219K 1% $20K 2% $39K2% $56K1% $19K $221K $227K $232K $234K Proposed FY 2024-25 General Fund Appropriations 14 FISCAL YEAR 2024-25 PROPOSED BUDGET Estimated Proposed Actual Budget Actual Budget FY 2022-23 FY 2023-24 FY 2023-24 FY 2024-25 Regular Salaries 9,094,661$ 10,044,255$ 9,607,734$ 10,269,416$ Retirement 4,660,475$ 4,959,524$ 4,974,665$ 5,608,883$ Other Pay & Benefits 4,703,479$ 4,874,972$ 4,856,412$ 4,780,730$ Maintenance & Operations 21,174,454 22,255,756 22,930,919 23,291,802 Total Operating Appropriations 39,633,068$ 42,134,507$ 42,369,730$ 43,950,832$ Transfer-Out CIP 2,293,262 13,303,855 4,348,906 10,364,261 Total Appropriations 41,926,330$ 55,438,362$ 46,718,636$ 54,315,093$ APPROPRIATIONS Budget Expenditure Overview 15 FISCAL YEAR 2024-25 PROPOSED BUDGET Ongoing structural deficit, necessitating reductions in service levels across all departments Implemented efficiency measures Citywide Nearly $1 million in salaries/benefits savings and deferrals $3.0 million in Maintenance and Operations Reductions which will impact service delivery Storm and atmospheric river events and emergency facility repairs continue to disrupt operations and maintenance Reductions do not fully address long-term liabilities FY 2024-25 General Fund Expenditures 16 Regular Salaries, $10.3 M, 23% Retirement , $5.6 M, 13% Other Pay & Benefits, $4.8 M, 11% Maintenance & Operations, $23.3 M, 53% FISCAL YEAR 2024-25 PROPOSED BUDGET Maintenance and Operations 17 Fire Services, $7.05M, 33% Contract Professional, $5.49M, 26% Insurance, $2.81M, 13% West Comm, $.96M, 4% Gas/Electric/Water/Sewer, $.94M, 4% Intergovernmental, $.58M, 3% Legal, $.58M, 3% Special Departmental, $.63M, 3% Supplies/Training/Meetings, $1.43M, 7% Equipment & Materials, $.39M, 2% Bldg. Materials/Street Sweeping, $.28M, 1% FISCAL YEAR 2024-25 PROPOSED BUDGET Maintenance and Operations 18FISCAL YEAR 2024-25 PROPOSED BUDGET $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 2020A 2021A 2022A 2023A 2024B 2025B 2026F 2027F 2028F 2029FMillions5.6% $1.1M $347K 2.0% $467K 1.9% $436K3.1% $688K3.5% $737K $363K $223K $258K $98K $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 $14.0 $16.0 $18.0 $20.0 FY 19-20 Actual FY 20-21 Actual FY 21-22 Actual FY 22-23 Actual FY 23-24 Amended FY 24-25 Proposed FY 25-26 Forecast FY 26-27 Forecast FY 27-28 Forecast FY 28-29 ForecastMillionsSalaries and Benefits 19FISCAL YEAR 2024-25 PROPOSED BUDGET 1.1% $158K -$803K 5.3% $945K5.2% $886K5.8% $920K6.3% $952K -$878K -$956K -$1.0M -$1.1M $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 FY 19-20 Actual FY 20-21 Actual FY 21-22 Actual FY 22-23 Actual FY 23-24 Amended FY 24-25 Proposed FY 25-26 Forecast FY 26-27 Forecast FY 27-28 Forecast FY 28-29 ForecastMillionsCalPERS/Retirement •FY 2021-22 CalPERS return of 4.7% not meeting 7% in 2020 •FY 2022-23 CalPERS return 21.3% in 2021 (Lowered Rate 7% to 6.8%) •FY 2023-24 CalPERS return -6.1% in 2022 (Now -7.5%) •FY 2024-25 YTD 9% Impacts unknown 20FISCAL YEAR 2024-25 PROPOSED BUDGET 13.1% $649K $229K 2.1% $489K3.6% $468K3.1% $533K10.4% $582K $281K $287K $291K $295K FY 2024-25 Five-Year Forecast FISCAL YEAR 2024-25 PROPOSED BUDGET 21 •FY 2023-24 Projected $1.7M Deficit/FY 2024-25 began with a $6 million deficit. •Historically high inflation rates •Increases in contract costs and mandates not within the City’s control •Historical service levels •Extensive review process involving over 30 rounds of revenue and expenditure analysis and reductions •Included a 3rd City Council Workshop to further balance the Budget •Salary and benefit costs were reduced by $1 million •Maintenance and operations budgets across the City were reduced by over $3 million impacting service response times, upkeep, and quality of life •Revenue projections were analyzed rigorously •The five-year outlook incorporates balancing measures, unsustainable for the long-term •Budget balanced with one-time asset forfeiture funds FORECAST SUMMARY 2025B 2026F 2027F 2028F 2029F TOTAL REVENUES AND SOURCES 43,984,664 44,750,051 46,037,951 47,279,908 48,528,169 TOTAL EXPENDITURES AND USES 43,950,831 46,232,113 48,042,817 49,651,590 51,266,448 NET OVER/(UNDER) 33,833 (1,482,063) (2,004,866) (2,371,682) (2,738,278) Reserves 22FISCAL YEAR 2024-25 PROPOSED BUDGET -$2.0 -$1.5 -$1.0 -$0.5 $0.0 $0.5 $1.0 $1.5 $2.0 2024-25 2025-26 2026-27MillionsEconomic Contingency Reserves $6.9$7.1$7.5$7.6$7.6$8.2$8.7$9.9$10.1$10.5$11.0$1.8$1.8$1.8$1.8$1.8$1.8$1.8$1.8$1.8$1.8$1.8$0 $2 $4 $6 $8 $10 $12 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025Millions-$2.0 $0.0 $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30MillionsFiscal Policy Reserve Revenue Opportunities FISCAL YEAR 2023-24 PROPOSED BUDGET 23 General Fund Estimated New Revenue Opportunities 2025 2026 2027 2028 2029 Sales Tax 1/2 Cent 541,820$ 2,461,662$ 3,204,143$ 3,284,247$ 3,363,068$ Head-In Parking vs. Warnings 15,000$ 15,000$ 15,000$ 15,000$ 15,000$ Cannabis Tax 250,000$ 600,000$ 675,000$ 675,000$ Business License 150,000$ 300,000$ 300,000$ 300,000$ Franchise Fees 250,000$ 500,000$ 500,000$ Parcel Tax 600,000$ 600,000$ 600,000$ Levy for Street Lighting 118,512$ 122,067$ 125,729$ New Hotel 150,000$ 300,000$ Fee Update 40,000$ 90,000$ 90,000$ 90,000$ 90,000$ 596,820$ 2,966,662$ 5,177,655$ 5,736,314$ 5,968,798$ Annual Fee Adjustment - Cost Recovery 24FISCAL YEAR 2024-25 PROPOSED BUDGET •Current fee resolution adopted in 2023 authorizes an annual inflationary adjustment to be applied in between comprehensive studies •FY 24/25 update represents an interim CPI adjustment year •Adjustment for FY 24/25 is 3.48% (annual change in regional CPI) •Other minor changes are proposed to enhance fee schedule clarity and improve correlation between services provided and costs recovered •Non-CPI adjustments are proposed for: •Film Permitting; Pickleball Memberships; Swimming Pool Passes; PD Vehicle Release Fees Investment Policy 25FISCAL YEAR 2024-25 PROPOSED BUDGET •The current Investment Policy is comprehensive and is consistent with California Government Code (“Code”) statutes •We are recommending two minor Policy changes: 1. Update the section on Asset-Backed Securities to incorporate Senate Bill 882. The Bill clarified that Agency mortgage-backed securities are excluded from the Code’s requirements for privately issued asset- and mortgage-backed securities. 2. Update the section on Shares of Beneficial Interest Issued by a Joint Powers Authority to allow the City to invest in the California Asset Management Program’s (“CAMP”) Term Pool that offers fixed-rate, fixed-term investments. Recommended Action FISCAL YEAR 2024-25 PROPOSED BUDGET Recommended Action Adopt the Fiscal Year 2024-25 Operating and Capital Improvement Budget, Set the Appropriations Limit for Fiscal Year 2024-25, and Authorize the Use of the Cost Recovery Schedule for Use in Fiscal Year 2024-25, and Approve the Fiscal Year 2024-25 Statement of Investment Policy