City Council

1. Consideration and possible action to review the Fiscal Year 2022-23 year-end estimates, the FY 2023-24 Preliminary Budget, and estimated fund balances for all funds, excluding Improvement Authorities. (Loya/Ramos) (30 mins) Recommendation: 1) Review the FY 2022-23 year-end estimates and approve Budget Adjustments in the General Fund by reducing the budget in the amount of $1,805,600 in Personnel and increasing Transfers-Out by $1,169,900 based on the third quarter year-end estimates. 2) Review the Preliminary FY 2023-24 Budget for the General Fund and affirm the changes since the Budget Workshop: Increase the General Fund Revenues by $143,200; Increase the General Fund Personnel costs by $114,000; Decrease the General Fund Non-Personnel $107,200; Revise General Fund Transfers- Out; Increase Capital Infrastructure Program (CIP) by $243,200; i. Add Abalone Cove Sewer Maintenance Fund by $70,000; ii. Retain the unallocated balance of $715,300 instead of transferring it to the CIP Fund.3) Review and approve the Preliminary FY 2023-24 Budget consisting of the Capital Infrastructure Program (CIP) Fund, Special Revenue Funds, and Internal Service Funds, and affirm the revised list for the FY 2023-24 Capital Improvement Program. 4) Review and provide direction on the following potential options for reserving funds towards the Civic Center and Portuguese Bend Landslide Remediation projects: Option 1 (existing): Pursuant to existing City Council Reserve Policy No. 41, the City Council may assign the current CIP Reserve for major capital improvements of $5 million to Civic Center Master Plan and/or Portuguese Bend Landslide Remediation Projects. Option 2: Subject to the annual budget process and the unrestricted fund balance in CIP, the City Council may consider increasing the CIP reserves for major capital improvements of $5 million to $10 million. Option No. 3: Subject to the annual budgeting process, the City Council may consider transferring a portion or all of the $5 million in a separate fund for the Civic Center Master Plan and/or Portuguese Bend Landslide Remediation projects. Option 4: Direct Staff to present the future funding options to the Finance Advisory Committee and solicit feedback and recommendations that the City Council may consider at a future meeting. 5) Direct staff to return on June 20, 2023 for the budget public hearing and budget adoption consideration. Agenda Report