HomeMy WebLinkAboutFISCAL YEAR 2022/23 BUDGET WORKSHOP (ITEM 17) CITY OF TUSTIN
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Fiscal Year 2022/23
Budget Workshop
The BCyc
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2nd Year Budget Update Timeline
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Revenue and Expense Projections
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Personnel Budget Development
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Departmental Budget Preparation
Departmental CIP Preparation
City Manager Review
Preliminary Budget Preparation
Public Input & Engagement
City Council Review
Budget Adoption
Mid-Year Budget Update:
Typically takes place in February
2022/23 General Fund Revenues
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� The Proposed Budget for Fiscal Year 2022/23 reflects a $2.6 million decrease in
transfers into the General Fund. Excluding transfers. General Fund revenues are
projected to increase by $3.2 million, which is primarily due to the following:
Sales & Use Tax Revenue is projected to be $1.7 million (5%) higher largely
� due to strong sales projected from autos & transportation, general consumer
goods, restaurants and hotels and the state and county pools.
Property Tax Revenue is projected to be $0.9 million (4%) higher largely due
� changes in ownership, development at the Tustin Legacy and the 2%
Proposition 13 inflation adjustment.
� Departmental Revenue is projected to be $0.9 million higher largely due to
� projected increases in revenue related to building permit fees, building plan
check fees and recreational program revenue.
Sa I es & Use Tax Revenue
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Major Industry Groups
� $10 $9.7m
$9.3m
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$8 $7.5m $7.8m
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$6
c $5.4m
k $5.1m
$4
$3.1m $3.4m
$2
$0
Autos & General Consumer Restaurants & State & County
Transportation Goods Hotels Pools
21/22 22/23 21/22 22/23 21/22 22/23 21/22 22/23
2022/23 General Fund Expenditures
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� General Fund Expenditures for Fiscal Year 2022/23 are projected to be approximately
$5.7 million higher than the prior year primarily due to:
Non-Departmental costs are projected to be $2.6 million higher, which is largely
related to a $1.1 million contribution to the Liability Fund, and an increase of $1.1
million associated with the amount required to be paid to CaIPERS for the
� unfunded accrued liability ("UAL").
� Police Services costs are projected to be $2 million higher, which is largely related
� to a $1.1 million increase in budgeted overtime and $773,000 associated with
increases in compensation that were approved by the City Council in 2021.
� Parks and Recreation costs reflect an increase of $0.5 million, which is largely
related to increases in instructor payments, court maintenance & enhanced
� program offerings for Pickle Ball and Tennis programs. These costs are offset with
program revenue.
� Fire Services costs associated with the Orange County Fire Authority (OCFA)
� reflect an increase of $322,000 (3%).
General Fund Reserves
31%
$26m
20%
17% Targeted
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Minimum
(15%)
GFA National City Policy Projected Reserves at
Benchmark 6/30/23
Pension Funding Policy
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PARS Pension Trust — Pension Trust assets held by Public Agency
Retirement Services ( PARS) are managed in a customized investment
strategy that provides for diversification . The Pension Trust also serves
as a Rate Stabilization Fund since Pension Trust assets can be used to
offset unanticipated increases in CaIPERS pension costs.
� Pension Funding Policy — It is recommended that the City continue to
� make additional contributions of $2 million annually to the PARS
� Pension Trust while also continuing to make additional payments of $2
� million to CaIPERS each year, which would allow the City to payoff all
� pension debt in 2030.
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Tustin CARES Program
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Proposed American Rescue Plan Act (ARPA) Budget for FY 2022/23:
2022 Small Business Recovery Grant Program ($2m)
� 2022 Non-Profit Recovery Grant Program
� Phase 1 : Lost Revenue - Large Grants ($250k)
� Phase 2 : COVID-19 Response Efforts ($250k)
� Phase 3 : Lost Revenue — Small Grants ($500k)
� Revenue Replacement for the Provision of Government Services
� $3 .4m Transfer to General Fund for Public Safety
� $460k Transfer to Housing Authority for the Homeless Shelter
COVID-19 Response, Relief & Reinvestment ($900k)
2022/23 Proposed Capital Improvement P
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later & Storm Drain
Traffic & Street Improvements,
Improvements, $3,756,365 , 6%
Public Facilities, 18,608,053, 3010
7,188,416, 1210
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Pa rks,
31,627,855, 52%
Total $61,180,692
Dark Improvements
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Highlighted Park Projects :
Pine Tree Park Improvements ($2 . 3m )
New Park at Heideman Elementary School ($5 .4m )
• Pioneer Park Playground Renovation ($350k)
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Park Improvements (Continue
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hted Park Proiects (Contin
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LegacyTustin Legacy Linear Park - Armstrong & Warner ($ 13 . 7m )
Alley Grove Promenade at the Tustin
Tustin Legacy • • ($800k)
LARGE DOG PARK
SMALL DOG PARK
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Traffic & Street Improvements
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Highlighted Traffic & Street Improvement Projects : PF
Zone 3 Annual Roadway Improvements ($2 .6m )
Old Town & Main St. Improvements ($4.7m )
Neighborhood D-South Infrastructure — Phase 2 ($5 .7m )
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Next Steps
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The purpose for the Budget Workshop is to provide a forum for public
engagement and to solicit feedback from the City Council on the
N Proposed Operating Budget and Capital Improvement Program .
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N The tentative date for Budget Adoption is June 21St.
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