CCMIN 06012021 - Laserfiche WebLink

Councilmember Narum noted she is open to Councilmember Testa's suggestion. She advised different types of businesses generate different types of rents. 16. Review two year operating budget for fiscal years 2021/22 and 2022/23 and four year capital improvement program for fiscal years 2021/22 through 2024/25 Director of Finance Tina Olson presented the two-year operating budget for Fiscal Years 2021/22 and 2022/23. She reported there is an overall $195 expenditure budget for FY 21/22 up 3.4% from the current year. She advised a 19.9% reduction in the Internal Services Funds is being driven by the Repair and Replacement Fund and a 36.4% reduction in the Special Revenue Funds is based upon pandemic relief matters. She reported General Fund Revenues are increasing to $131.6 million from this year's $121.9 million. She recommends splitting the $800,000 reserve from FY 19/20 over the next two years for crisis response. She advised net transfers of $6.6 million in FY 21/22 and $3.9 million in FY 22/23 are related to the Rainy Day Fund. She reported budgeted General Fund expenditures of $125.4 million in FY 21/22 and $133.5 million in FY 22/23 Director of Finance Olson reported increases in Tax Revenue projections. She reported a 7% decrease in Development Service Fees based upon expected development. She projected a 73% bump in Recreation Fees and a 21% jump in other revenues mainly due to federal relief funds. She reported Property, Sales, and Other Taxes account for about $110 million (84%) of the General Fund's Revenues. She noted revenues have trended slightly down the past two years from a record $126 million in FY 18/19 but they are expecting that record mark to be surpassed in each of the next two years in part by the $8.5 million in federal relief funds. Director Olson reported steady and reliable growth in Property Tax. She detailed Sales Tax by noting there is an expected decline in business and industry contributions, along with State and County pools, but there is a projected increase from Autos and Transportation, General Consumer Goods, and particularly from Restaurants and Hotels. She added the projection of $3.3 million (55% increase) for hotel and motel taxes is a hard number to gauge right now coming out of the pandemic. Director Olson reported on the American Rescue Plan Funding and advised the funds can be used to replace revenue lost by the pandemic, cover pandemic response expenses, or add to water, sewer, or broadband infrastructure. She noted Pleasanton will receive $8.5 million split evenly over the two fiscal years to be included in "other revenues." She noted, based on the federal government's methodology, the City lost $12 million as a result of the pandemic, or$3.5 million more than this allocation. Director of Finance Olson reported the current balance of the Rainy Day Fund is $7.4 million with projections of it being $10.1 million at the end of FY 21/22 and $7.6 million at the end of FY 22/23. Director of Finance Olson noted Public Safety amounts to 44% of General Fund expenditures and other areas of civic costs. She detailed the Library and Recreation Budget, noting it was reduced the most during the pandemic for it being unable to provide the same services. She advised it is being increased back to almost its pre-pandemic level as the need for these services will return along with revenues from some of the services. Director of Finance Olson detailed General Fund Expenditures by category and reported new positions and programs in the FY 21/22 budget. She advised the LPFD is adding two Battalion Chief positions and each City is funding one of them. She detailed the non-personnel costs amounting to 25% of the General Fund Expenditure budget, totaling an 11% increase from the current year. Director of Finance Olson detailed General Fund's transfers out to the Rainy Day Fund, Capital Improvements Program (CIP), and CIP Reserve (CIPR). She noted General Fund Reserves end up being $30.9 million in FY 21/22 and $30.6 million for FY 22/23, equating to 24.7% and 23.2% of City Council Minutes Page 6 of 10 June 1, 2021