11 ATTACHMENT 1, EXHIBIT A - Laserfiche WebLink

City of Pleasanton Operating Budget • FY 2023/24 - FY 2024/257 To date, the City has allocated a total of $38.0 million toward a Section 115 Pension Trust Fund administered by PARS (PARS Trust Fund), comprised of both short- and long-term investments.1 The City Council also adopted policies that placed limits on the City’s ability to draw on the PARS Trust Fund to ensure funds are available to make pension contributions during financially difficult times without having to reduce City services. In addition, to the extent to which the City is able to not draw on the PARS Trust Fund, the fund can grow through compounded investment earnings. As described in the City’s 10-year General Fund Forecast in Appendix D, staff anticipates the City may need to draw on the PARS Trust Fund to balance the budget in the out years. Major Expenses – Non-Personnel Non-personnel expenses include (1) utilities, (2) contractual services, (3) repairs and replacement of the City’s equipment, facilities, streets, and parks, and (4) materials and supplies. Each major non-personnel expense category is discussed separately below. Utilities (Electricity, Phones, Garbage, Sewer and Water) The FY 2023/24 and FY 2024/25 budget include minor adjustments compared to FY 2022/23 Modified Budget based on current usage trends and expected rate increases. Contractual Services The City uses contractual services to support City operations including (1) building and grounds maintenance, (2) engineering and architectural design, (3) temporary employment agency staff to back fill vacancies until positions can be filled, (4) consultant support for planning studies, (5) instructors for recreation classes, (5) and outside legal counsel. The City’s overall budget for contractual services increased by $0.2 million or 1.3 percent in FY 2023/24 compared to FY 2022/23 Modified Budget. Some of the increases include approximately $0.9 million one-time funding for Planning contractual services, $0.2 million one-time funding over two years for revenue strategy consultants, $0.1 million for various IT contracts, and $0.1 million increase to crossing guard contract costs. Increases are offset by decreases and/or a removal of one-time funding from FY 2022/23. Repairs and Replacement General Fund allocations to City Repair and Replacement funds for the next two years are approximately $4.0 million annually. Materials and Supplies Materials and supplies include office supplies, small equipment, uniform costs, and data processing equipment and software. The FY 2023/24 and FY 2024/25 Materials and Supplies budgets are $0.3 million higher than the FY 2022/23 Modified Budget, due to additional supplies and equipment for recreation and human services, as these programs continue to augment their offerings to move toward a pre-COVID level of activities; various one-time equipment for Police and Fire; and minor adjustments based on increased demand for office related supplies. Insurance The City’s general liability insurance premiums are projected to increase significantly in the next two years based on recent industry trends. The City’s premiums increased by 70.0 percent to $3.3 million in FY 2022/23 from $1.9 million in FY 2021/22 and are projected to increase by another 23.4 percent to $4.1 million in FY 2023/24 based on preliminary estimates provided by the Bay Cities Joint Powers Insurance Authority. 1 The balance, as of March 31, 2023, with investment earnings is $45.0 million.