29 ATTACHMENT 2 - Laserfiche WebLink

City of Pleasanton Mid-Term Budget Update • FY 2022/23 10 Repairs & Maintenance Repairs & Maintenance costs are estimated to increase approximately $286,000 from the original FY 2022/23 Budget. The majority of the increase is attributed to Livermore-Pleasanton Fire Department’s breathing apparatus and fleet maintenance contract ($155,000). The Repairs and Maintenance category includes a variety of expenditure accounts, including computer hardware maintenance, equipment parts, various repair contracts, replacement and renovation charges. The remaining costs in this category are attributed to increases of contractual obligations in maintenance contracts for Operation Services Department ($91,000), and minor changes in contracts in other departments ($40,000). Materials & Supplies Materials & Supplies category is anticipated to have the largest increase, approximately $1.8 million over the original FY 2022/23 Budget. This category includes a variety of expenditures including professional service contracts, water and sewer charges for City facilities, street light electricity costs, annual contribution to the self-insurance liability reserve, community program grants, and contingency funds. The net increase in materials and supplies is due to the following: Professional Services Crisis Response Program Contingency Insurance Supplies & Equipment Election Costs Utilities Reimbursable Expenditures Total As demonstrated in the list above, the biggest increase is in the category of professional services ($895,657). This includes contracts for parks maintenance, streetscape maintenance, and some other departmental contracts. These increases are driven mainly by inflation and consumer price index increases for contracts already in place. The category also includes fees incurred by the City when residents make payment using credit cards. This change is driven by increased transactions completed online; a continuing impact of accommodations made by the City during COVID-19 to provide services to the community. The Crisis Response Program was approved by Council in November 2021 with a 2-year implementation plan. Funds for the first year were set aside in the contingency budget. The increase is related to the implementation of the first year and is offset by the release of the contingency dollars. The City has received notifications from Bay Cities Joint Powers Insurance Authority for the increase in insurance rates in the upcoming year. The $304,500 is to offset the planned increases. Due to the implementation of district-based elections, the costs of elections are being estimated to be significantly higher in the upcoming elections. The County of Alameda manages the majority of these expenses and the City is obligated to reimburse those expenses. The addition in budget is to cover these increases. There is also an increase in utilities, mainly electricity bills based on current trends. The reimbursable expenditure $895,657 454,167 (454,167) 304,500 289,023 162,000 109,250 76,667 $1,837,097