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Type:
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Resolution
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Status:
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Passed
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On agenda:
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1/25/2022
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Final action:
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1/25/2022
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Title:
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2021-2022 Mid-Year Budget Review
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FROM:
Dave Donery, Town Manager & Jeff Zuba, Finance & Administrative Services Director
SUBJECT:
title
2021-2022 Mid-Year Budget Review
end
RECOMMENDATION
recommendation
That Council approve the attached resolution amending the 2021-2022 Budget.
body
BACKGROUND
On June 22, 2021, the Town Council approved Resolution No. 4395 adopting the 2021-2022 Budget. (June 22 video and materials available here <https://sananselmo-ca.granicus.com/MediaPlayer.php?view_id=1&clip_id=590>). The approved budget is the annual plan and resource allocation that guides Town spending and ensures implementation of Town Council policies and priorities. The Budget approved in June was based on the best revenue and expenditure information available several months prior to the actual adoption of budget appropriations. As a result, budget adjustments are periodically necessary for changes that arise requiring additional budget appropriations or re-appropriations between budget line items.
DISCUSSION
MID-YEAR BUDGET REQUESTS FROM DEPARTMENTS:
Town staff evaluated and identified a few revenue and expenditure items to bring to the Town Council’s attention.
GENERAL FUND:
|
Description |
Adopted Budget |
Year-to-Date Actual |
Proposed Changes |
Revised Budget |
|
Sales Tax |
$1,284,486 |
$528,236 |
$115,514 |
$1,400,000 |
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Construction Permits |
900,000 |
486,383 |
80,000 |
980,000 |
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Vehicle Code |
10,000 |
9,466 |
7,500 |
17,500 |
|
Parking - Data Tickets |
50,000 |
35,970 |
15,000 |
65,000 |
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Total Revenues |
$2,244,486 |
$1,060,055 |
$218,014 |
$2,437,500 |
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Admin - Outside Services |
$255,690 |
$64,825 |
$20,000 |
$275,690 |
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Plan Checking - Outside Services |
100,000 |
80,526 |
80,000 |
180,000 |
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Street - Outside Services - Trees |
20,000 |
30,550 |
30,000 |
50,000 |
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Parks - Outside Services - Trees |
8,000 |
-0- |
100,000 |
108,000 |
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Total Expenditures/Transfers-out |
$383,690 |
$175,901 |
$230,000 |
$613,690 |
The Town received proposals to hire a tax measure consultant and to conduct public opinion polling. Based on the quotes received from qualified local firms that handle this type of work staff requests that Council authorizes up to $20,000 from the General Fund reserve balance. Most of the costs will be covered by existing departmental savings in the Administration and Finance Department.
The adopted budget included $28,000 for Outside Services - Trees. As of December 31, 2021, $30,550 has been expended for work related to trees with invoices still outstanding from vendors. This work was required due to unsafe conditions and emergencies.
Most of the adjustments for the other fund categories are due to an increase in revenue resources for specified purposes, such as grant fund, taxes, or donations.
OTHER FUNDS:
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Description |
Revenue/Transfers-In |
Expenditures/Transfers-Out |
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|
Adopted Budget |
Proposed Changes |
Revised Budget |
Adopted Budget |
Proposed Changes |
Revised Budget |
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Road Maintenance |
$1,086,666 |
$50,000 |
$1,136,666 |
$1,024,200 |
$200,000 |
$1,224,200 |
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Measure D Sales Tax |
1,111,900 |
88,100 |
1,200,000 |
1,340,370 |
190,000 |
1,530,730 |
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Recreation |
1,348,625 |
-0- |
1,348,625 |
1,460,003 |
47,633 |
1,507,636 |
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Emergency Reserve |
-0- |
1,492,000 |
1,492,000 |
100,000 |
55,299 |
155,299 |
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Total |
$2,198,566 |
$1,630,100 |
$3,828,666 |
$2,464,570 |
$445,299 |
$2,910,229 |
Additional funding is needed in Unprogrammed Paving from Measure D and Road Maintenance reserves for a variety of street projects including slurry seals, concrete curb, and gutter on various streets for multiple projects related to street improvement throughout Town which will provide Asset Protection and an increased Pavement Condition Index (PCI). In addition, funding is still needed for the remainder of the year for unanticipated projects and joint jurisdictional opportunities that may present themselves which the Town can capitalize on funding from many sources to improve road conditions at a reduced cost to the Town and its residents.
Recreation department is requesting $47,633 from its fund balance reserve for a down payment on a new management software. The software is going to be more user friendly for internal and external customers.
The Emergency Reserve fund revenue increase is recognizing receipt of the 1st half of the American Rescue Plan funds. The expenditure increase of $55,299 is the payment Town Council approved at the July 27, 2021 meeting to the County of Marin to provide funding for Housing First Case Management.
The following table summarizes the approved and proposed changes, the impact on the General Fund and Other Funds’ budgets for fiscal year 2021-2022, the impact on Net Operating Results and fund balances:
Table -1
Table -2
The proposed changes to General Fund and Other Funds’ Sources and Appropriations are included in the Attachment II of this staff report.
FISCAL IMPACT
GENERAL FUND
The General Fund’s ending fund balance as of June 30, 2021, was $6,264,830, which was an increase of $2,754,913 over the previous fiscal year. In addition, $28,399, $627,936, $1,803,518 ($1,669,817 is emergency reserve commitment), and $349,748 of the ending fund balance were categorized as nonspendable, restricted, committed, or assigned for the Town’s prepayment, pension trust account, parking, and general plan activities, respectively. After taking into consideration the nonspendable, restricted, committed, and assigned funds and the approval of the amended budget, the estimated ending fund balance available for new appropriations is $5,125,036 as of June 30, 2021. This is a reserve of 28.45% of expenditures and transfers out to other funds, which meets the Town’s reserve goal.
CONCLUSION
Staff respectfully requests that the Town Council amend the budget for fiscal year 2021-2022 by approving the attached resolution.
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