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HomeMy WebLinkAboutItem 07a - Adoption of Operating Budget and CIP Equipment PlansAdoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 1 of 22 DATE: June 6, 2023 TO: Honorable Mayor and City Council FROM: Dominic Lazzaretto, City Manager Hue Quach, Administrative Services Director Henry Chen, Financial Services Manager SUBJECT: RESOLUTIONS RELATING TO THE ADOPTION OF THE FISCAL YEAR 2023-24 OPERATING BUDGET AND THE FISCAL YEARS 2023-24 THROUGH 2027-28 CAPITAL IMPROVEMENT AND EQUIPMENT PLAN RESOLUTION NO. 7500 ADOPTING A BUDGET FOR FY 2023-24 AND APPROPRIATING THE AMOUNTS SPECIFIED THEREIN AS EXPENDITURES FROM THE VARIOUS FUNDS CEQA: Not a Project Recommendation: Adopt RESOLUTION NO. 7501 ADOPTING A CAPITAL IMPROVEMENT AND EQUIPMENT PLAN FOR FISCAL YEARS 2023-24 THROUGH 2027-28 CEQA: Not a Project Recommendation: Adopt SUMMARY Sections 1204 and 1205 of the Arcadia City Charter require a Public Notice and a Public Hearing for consideration of the proposed Operating Budget and Five-Year Capital Program for the ensuing fiscal year, which is required to be adopted by July 1. The recommended actions are necessary to implement the budget for Fiscal Year 2023-24. This year’s budget process included two Budget Study Sessions with the City Council on May 8 and 16, 2023. Copies of the proposed Operating Budget were provided for the City Council’s review. Inclusive in the draft Budget were all operating funds including General, Special Revenues, Enterprise, and the Successor Agency. Additionally, the City Council received the Capital Improvement and Equipment Replacement Fund budgets in a separate document. All funds total $177.4 million in expenditures, of which the General Fund’s budget is $87.8 million (including Transfers Out as noted below). Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 2 of 22 As Special Revenues, Enterprise, and Debt Service funds are restricted to specific purposes and are generally self-sustaining, this report will primarily focus on the General Fund’s Operating Budget. The proposed FY 2023-24 Operating Budget acknowledges the potential for a slowing economic environment, influenced by factors such as inflation, supply chain issues, and concerns about higher Federal Reserve overnight rates. Given the current macroeconomic situation, it is essential to evaluate how City revenues may be affected. While certain revenue streams could be susceptible to a recession, recent economic data suggests that others, like property tax and vehicle license fees, may experience modest growth or remain stable. Encouraging indicators such as a low unemployment rate, rising wages, and consistent consumer spending habits provide optimism that an economic slowdown may be postponed; however, it is important to acknowledge challenges in the broader economic landscape, including the increased reliance on credit card usage for consumer spending and a decline in savings, which can contribute to a slower economy. The proposed FY 2023-24 General Fund Operating Budget outlines Total Operating Revenues of $90.9 million and Expenditures of $87.8 million, resulting in a projected surplus of $3.1 million. After accounting for Fund Transfers In and Out, the projected ending Fund Balance of the Operating General Fund is $27,775,300. However, this balance includes a surplus of $9.9 million from FY 2022-23, which is proposed to be transferred to the Equipment Replacement Fund for upcoming major equipment purchases in the next two fiscal years. With City Council approval of the transfer, the projected Ending Fund Balance of the Operating General Fund for FY 2023-24 would be $17.9 million. Furthermore, in accordance with the City's financial policies, which recommend maintaining a 20% balance in the Emergency Reserve Fund relative to annual operating expenditures, transfers of $1.5 million and $1.6 million are proposed to be made to the Emergency Reserve Fund at the conclusion of FY 2022-23 and FY 2023-24, respectively. These transfers are aimed at ensuring compliance with the policy guidelines. As a result, the General Fund Operating Fund Balance is projected to reach $14.9 million by the end of FY 2023-24, providing a robust reserve to sustain operations throughout the Fiscal Year. Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 3 of 22 FY 22-23 FY 23-24 FY 24-25 Estimates Budget Budget Beginning Fund Balance $14,801,500 $13,377,760 $14,888,300 Estimated Revenues $83,823,200 $84,831,700 $86,559,600 Transfers In 5,881,400 6,091,200 9,422,600 Expenses & Uses -75,038,200 -81,017,500 -85,801,200 Revenue over Expenses $14,666,400 $9,905,400 $10,181,000 Transfer to Equipment Replacement Fund -2,400,000 -3,400,000 -3,400,000 Transfer to Capital Improvement Fund -2,400,000 -3,400,000 -3,400,000 ($4,800,000) ($6,800,000) ($6,800,000) Net Operating Surplus / (Deficit) $9,866,400 $3,105,400 $3,381,000 Ending Fund Balance $24,667,900 $16,483,160 $18,269,300 Council Approved and Policy Transfers: Transfer to Equipment Replacement Fund (FY 22-23 Surplus) (9,822,500) - - Transfer to Emergency Reserve Fund (20% Level) (1,467,640) (1,594,860) (957,740) Final Ending Fund Balance $13,377,760 $14,888,300 $17,311,560 With these factors in mind, the FY 2023-24 budget takes a cautious approach, carefully considering these variables while maintaining optimism for a return to pre-pandemic norms. The City aims to navigate the economic landscape responsibly, ensuring the provision of high-quality services to residents while considering all possible economic outcomes. The General Fund Operating budget is summarized in the table below (before proposed transfers of the FY 2022-23 Operating surplus to the Equipment Replacement Fund and the Emergency Reserve Fund, noted in the above section): Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 4 of 22 FY23-24 Budget Beginning Fund Balance 24,667,900$ Estimated Revenues 84,831,700 Transfers In 6,091,200 Expenses & Uses (79,022,400) New Programs (1,008,900) Revenue over Expenses 10,891,600$ Transfer to Equipment Replacement (3,400,000) Transfer to Capital Improvement Fund (3,400,000) Transfer to Local Law Enforcement Prgm (135,200) Transfer to Lighting Assessment District (851,000) Total Transfer Out (7,786,200) Subtotal Operating Balance 3,105,400 Ending Fund Balance 27,773,300$ Each year, an allocation of $4.8 million is designated for transfer into the Capital Improvement and Equipment Replacement Funds, with each fund receiving $2.4 million. This amount was approximately the 10-year average spending in each account and has ensured a balanced amount to cover annual maintenance and replacement requirements. However, in response to the recent surge in prices caused by inflation and the projected ongoing increases in materials and production costs, the annual transfer amounts have been revised to $3.4 million for each of the mentioned funds. The Capital Improvement Fund plays a vital role in funding crucial maintenance projects, including pavement rehabilitation, building repairs, and parks maintenance. In the upcoming Fiscal Year, several key projects are budgeted within the Capital Improvement Fund, such as reroofing city facilities, pavement rehabilitation, water meter upgrades, and the Bonita Park Concession Building. The proposed projects budgeted in the Capital Improvement Fund total $6.2 million. The combined capital projects across all funds have been budgeted at $15.8 million. Due to inflationary pressure and anticipated future purchases, the transfer amount for the Equipment Replacement Fund has been adjusted to $3.4 million this year. This revised deposit aligns with the annual funding goal to ensure adequate resources for future equipment replacements. The Equipment Replacement Fund helps replace equipment that has reached the end of its useful life like computers, vehicles, and major office equipment. The proposed total cost of asset replacement through the Equipment Replace Fund is $4.1 million. Notably, significant purchases for FY 2023-24 are planned, including $1.5 million for Street Division vehicle replacements, $461,000 for Police vehicle replacements, and $732,000 for the Fire Department's rescue ambulance. Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 5 of 22 New programs proposed for the City’s overall Operating Budget demonstrate Arcadia’s commitment to being responsive to community needs. Several new programs are a result of emerging operational changes as in the case of a Fire Prevention Specialist and Fire Training Captain, who will meet the increased demand for fire inspections and provide a dedicated training resource for firefighters. In some departments, new software is being sought to improve the customer experience as is the case in Development Services, where software will streamline digital plan check and business licensing services. In the Library, patrons can opt for a text-based system to receive messages about items on- hold and help them avoid past-due returns. And critically, the addition of a Project Manager will allow for the completion of vital construction and maintenance projects for City facilities and infrastructure. All new programs proposed for the City’s General Fund Operating Budget this year total $1,008,900 and represent vital investments in all areas of the community. Additionally, in alignment with the City's pension strategy, the proposed FY 2023-24 budget allocates funds for addressing long-term liabilities, specifically the Unfunded Accrual Liabilities (“UAL”) of CalPERS. To this end, $2.0 million has been designated for an advance discretionary prepayment to CalPERS. Alternatively, considering the changing interest environment and past moves to reduce pension pressures in the short- term this budget line item will be reviewed for potential alternatives to further reduce long- term liabilities. One such alternative being explored is the creation of a Section 115 Pension Trust account, which serves as a financial tool for investing and saving to address future pension-related costs. This initiative aligns with the City Council's direction to minimize pension debt by either accelerating payments to CalPERS or implementing innovative financial tools, ultimately aiming to generate significant long-term savings. It is recommended that the City Council adopt the proposed Resolutions 7500 and 7501, to enact the FY 2023-24 Operating Budget as well as the Capital and Equipment Replacement Plans. DISCUSSION The proposed FY 2023-24 Operating Budget anticipates a moderate or stagnant economic environment with uncertain impacts on City revenues. Concerns about inflation, supply chain issues, and the possibility of a recession make it difficult to predict the exact timing of these effects. However, recent data provides positive signals about the economy. While revenue streams such as sales tax, transient occupancy tax, and business license fees are expected to grow at a slower pace, property tax and vehicle license fees continue to show normal annual growth rates. Encouraging signs like low unemployment, increasing wages, and consistent consumer spending habits suggest that an economic slowdown may be further away than initially anticipated. The FY 2023-24 budget takes a cautious approach while maintaining a slightly optimistic outlook, and a return to pre-pandemic conditions. One crucial factor in the revenue trajectory is Measure A, a 0.75% Transaction and Use Tax (Sales Tax) approved by Arcadia voters in June 2019. This revenue stream has played a critical role in supporting Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 6 of 22 the City's budget by contributing approximately $11 million to the General Fund revenues in FY 2022-23 alone. Without this voter-approved measure, the City would have faced the challenge of implementing service cuts or exploring alternative methods to achieve an annual balanced budget. Summarized in the table below is the General Fund Operating Budget for: FY 2022-23 Year-End Estimates, FY 2023-24 Proposed Budget for Adoption, and a FY 2024-25 Preliminary Budget Outlook. Please note that FY 2024-25 is not proposed for adoption as the City Council adopts the Operating Budget annually. GENERAL FUND FY 22-23 FY 23-24 FY 24-25 Estimates Budget Budget Beginning Fund Balance $ 14,801,500 $ 24,667,900 $ 27,773,300 Estimated Revenues $ 83,823,200 $ 84,831,700 $ 86,559,600 Transfers In 5,881,400 6,091,200 9,422,600 Expenses & Uses (75,038,200) (81,017,500) (85,801,200) Revenue over Expenses $ 14,666,400 $ 9,905,400 $ 10,181,000 Transfer to Equipment Replacement Fund (2,400,000) (3,400,000) (3,400,000) Transfer to Capital Improvement Fund (2,400,000) (3,400,000) (3,400,000) Subtotal Operating Balance 9,866,400 3,105,400 3,381,000 Ending Fund Balance $ 24,667,900 $ 27,773,300 $ 31,154,300 The table above shows that the City's General Fund Operating Ending Fund Balance is projected to reach $27.8 million by the end of FY 2023-24. This increase is due to a projected surplus of $3.1 million. It is important to note that the projected balance already includes the expected surplus of $9.9 million by the end of FY 2022-23. As depicted in the table below, the proposed budget recommends transferring the $9.9 million surplus in FY 2022-23 to the Equipment Replacement Fund. This transfer aims to allocate funds for significant equipment purchases over the next two fiscal years, resulting in a revised General Fund Operating Fund Balance of $18.0 million prior to making year- end transfers to the Emergency Reserve Fund in FY 2022-23 and FY 2023-24. In accordance with the City's financial policies, which recommend maintaining a 20% emergency reserve balance of annual operating expenditures, transfers of $1.5 million and $1.6 million are proposed to the Emergency Reserve Fund at the end of FY 2022-23 Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 7 of 22 and FY 2023-24, respectively. Upon implementing these proposed adjustments, the General Fund Operating Fund Balance is projected to net $14.9 million at the end of FY 2023-24. Please refer to the table below for a summary of the impact resulting from the noted proposed transfers: FY 22-23 FY 23-24 FY 24-25 Estimates Budget Budget Beginning Fund Balance $14,801,500 $13,377,760 $14,888,300 Estimated Revenues $83,823,200 $84,831,700 $86,559,600 Transfers In 5,881,400 6,091,200 9,422,600 Expenses & Uses -75,038,200 -81,017,500 -85,801,200 Revenue over Expenses $14,666,400 $9,905,400 $10,181,000 Transfer to Equipment Replacement Fund -2,400,000 -3,400,000 -3,400,000 Transfer to Capital Improvement Fund -2,400,000 -3,400,000 -3,400,000 ($4,800,000) ($6,800,000) ($6,800,000) Net Operating Surplus / (Deficit) $9,866,400 $3,105,400 $3,381,000 Ending Fund Balance $24,667,900 $16,483,160 $18,269,300 Council Approved and Policy Transfers: Transfer to Equipment Replacement Fund (FY 22-23 Surplus) (9,822,500) - - Transfer to Emergency Reserve Fund (20% Level) (1,467,640) (1,594,860) (957,740) Final Ending Fund Balance $13,377,760 $14,888,300 $17,311,560 Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 8 of 22 FY 2023-24 Expected Revenues FY 22-23 FY 23-24 Changes Estimates Budget $ % Taxes $ 58,782,100 $ 59,314,700 $ 532,600 0.91% License & Permits 5,680,500 5,754,900 74,400 1.31% Fines & Penalties 545,200 502,200 (43,000) -7.89% Use Money & Property 1,523,300 1,939,100 415,800 27.30% Revenue from Other Agencies 8,734,500 8,953,500 219,000 2.51% Charge Current Services 4,858,600 4,336,500 (522,100) -10.75% Library 76,000 82,500 6,500 8.55% Recreation 1,367,500 1,558,300 190,800 13.95% Other Revenue 2,255,500 2,390,000 134,500 5.96% Total Revenue $ 83,823,200 $ 84,831,700 $ 1,008,500 1.20% For FY 2023-24, total General Fund revenues are expected to increase 1.20% when compared to FY 2022-23 Year-End Estimates. The largest revenue source to the City’s General Fund is from Taxes and Fees. The key revenues under these two groups are: Sales & Use Tax, Property Tax, Utility Users’ Tax, Transient Occupancy Tax, and Motor Vehicle License Fees. Their projected receipts are shown in the table below. Description FY 2022-23 YE Estimates FY 2023-24 Proposed Budget Difference % Change Sales and Use Tax $ 24,181,100 $ 24,422,900 $ 241,800 1.00% Property Tax 19,045,200 19,524,300 479,100 2.52% Utility Users’ Tax 8,683,900 8,423,000 (260,900) -3.00% Transient Occupancy Tax 4,395,800 4,461,700 65,900 1.50% Motor Vehicle License Fees 8,640,000 8,856,000 216,000 2.50% Sales and Transaction Use Tax: Recent economic data suggests the possibility of a slowing economy and a potential recession. The full impact of transferring ownership of the Shops at Santa Anita from an international market leader to a locally-owned single- entity is also unknown. It is important to note that accurately predicting the timing of a recession is difficult. However, there are positive signs indicating that a slowdown may be further away than initially expected. Factors such as low unemployment, increasing wages, and consistent consumer spending habits contribute to this perspective. Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 9 of 22 Nevertheless, it is essential to acknowledge the challenges in the overall economic landscape, including the growing reliance on credit cards for consumer spending and a decline in savings. While sales tax could be affected by a recession, recent data indicates that these revenue streams may still experience growth albeit at a slower pace. For Sales and Transaction Use Tax, the total projection for the upcoming Fiscal Year is $24.4 million, reflecting a 1.0% increase compared to the previous year’s revenues. This projection takes a conservative approach, considering the potential for a slower economy in the latter half of FY 2023-24. Property Tax: Arcadia's status as a desirable community coupled with its highly regarded public school district, contributes to the City's expectation of ongoing growth in home valuation. However, it is worth noting that home sales and development activities in high- value areas like Arcadia have normalized compared to previous years. Forecasts nevertheless indicate that home sales in California will likely reflect higher price points due to supply scarcity across all price ranges. That being said, factors such as the recent increase in interest rates and other uncertainties could potentially lead to a slowdown in home sales activities. To account for this, conservative revenue projections are planned for next FY 2023-24, allowing flexibility to respond if downward trends emerge. The City anticipates a continued growth in Property Tax receipts, estimated at approximately 2.5%, or around $479,100, for FY 2023-24. Utility Users’ Tax: The projected revenue from the Utility Users' Tax (UUT) is $8.4 million, representing a 3.0% decrease compared to the Year Ending Estimate for FY 2022-23. The demand for water, electricity, and gas is expected to remain consistent with the previous year’s usage; however, a slight reduction in billings is anticipated due to the easing of unusually high demand factors observed in electricity and gas prices as a result of unprecedented cold and wet conditions this past winter. Transient Occupancy Tax (“TOT”): The TOT revenue projection for FY 2023-24 represents a 1.5% increase compared to the previous year, resulting in expected revenue of $4.5 million. Compared to the prior year's ending estimate of $4.4 million, this is a conservative growth estimate for this revenue category. Motor Vehicle License Fees (“VLF”): The Motor Vehicle License Fees ("VLF") tax is projected to increase by 2.5%, generating $8.9 million in revenue next Fiscal Year. In recent years, the demand for automobiles has outpaced supply, resulting in significantly higher prices for both new and used vehicles, producing more VLF revenue. Current trends are expected to continue and the City should continue to benefit from higher vehicle prices into the next Fiscal Year and strong growth in this revenue stream. Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 10 of 22 FY 2023-24 Proposed Expenses The proposed FY 2023-24 Operating Budget sets total operating expenditure at $79.0 million, representing a 3.1% increase compared to the previous year's Revised Budget of $76.6 million. It is important to highlight that the FY 2023-24 Operating Budget remains largely unchanged, apart from contractual increases from multi-year service agreements and the salary and benefits impacts of the final year of a three-year labor agreement. Furthermore, the budget allocates higher funds for "prefunding" long-term benefit accounts, including the City's Retiree Medical Benefit (Other Post Employee Benefit liabilities) and the Advance Discretionary Payment to CalPERS, with the aim of achieving a higher funding status. These two-line items amount to $2.9 million, representing an increase of approximately $1.2 million compared to the previous year. As the City transitions back to a more normalized state, the proposed budget balances inflationary increases and the addition of new services by implementing several cost control measures. In addition, this budget includes higher annual transfers of $3.4 million Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 11 of 22 each to the Capital and Equipment Replacement Funds, allowing the City to make vital capital investments it has previously deferred with its surplus revenues. Through careful cost management, the budget maintains a balanced approach, resulting in negligible impacts on the overall operating expenditures. Proposed New Programs New programs and expenditures are presented from various departments to respond to emerging operational needs as well as to respond to direction received at the City Council Study Session and City Council meetings. New programs proposed for the FY 2023-24 budget total $1,003,900 and are described in the following section. Administrative Services Department: Accountant ($113,100): Currently, the Finance Division comprises 1 Senior Accountant, 1 Accountant, 1 Accounting Specialist (Payroll), and 2 Sr. Account Technicians. Previously, there were 3 Sr. Account Technicians, but one position was transferred to Public Works Services as part of the utility billing transition for water and sewer service. While the billing responsibilities shifted to Public Works Services, certain aspects of the position remained with Finance, primarily revenue interface and receivables reconciliation. Moreover, the department has experienced significant increases in controller billings resulting from inspections and false alarms. The billing volume has risen from 1,400 to approximately 3,400 per year, necessitating additional time to address inquiries and collections. Grant compliance and audit requirements have also increased due to the City's successful acquisition of a higher volume of grants in recent years. Given the increased workload in Finance and the upcoming implementation of a new Enterprise Resource Planning (ERP) system, it is essential to introduce a new Accountant position. This addition would provide ongoing support, particularly during the ERP implementation phase, ensuring continuity of operations throughout the year. Administrative Services Department: Full-Time Administrative Assistant (Conversion Cost $54,600): The Human Resources Division currently has a temporary part-time Administrative Assistant position. This role provides support for various Human Resources functions, including data entry, counter and phone coverage, mail distribution, filing, and assistance with billing reconciliation. Additionally, the Administrative Assistant assists the entire Administrative Services Department by redirecting phone calls and addressing basic inquiries from customers. However, the part-time nature of this non-benefited position imposes limitations on both Human Resources and the Department as a whole. With less than 20 hours per week, the Administrative Assistant's role is underutilized and results in many of their tasks being distributed among the rest of the team for completion each day. The existing level of administrative support is insufficient when compared to the needs of the Department and its customers, requiring existing staff members to work inefficiently and perform duties Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 12 of 22 that can be handled by an Administrative Assistant. Expanding this position to correspond with the Department’s workload allows the team to provide a higher level of support to all City departments and external customers. City Manager Office: Arcadia Community Survey ($30,000): Conducting regular surveys of residents and customers is a common practice for local governments. These surveys provide vital data to understand satisfaction levels with City services and the overall quality of life in the community. This budget request is to allocate funds for a one- time, statistically-valid survey that gathers input from a representative sample of Arcadia residents. The allocated funding would cover various aspects of the survey, including the creation and administration of surveys through mailed invitations for both paper and digital formats. Additionally, it would encompass the analysis and presentation of summary results, benchmark data, geographic breakdowns as well as the ability to include custom questions and track trends over time. It is worth noting that Arcadia has never undertaken a community survey of this magnitude and that survey materials will be translated into simplified Chinese to encourage participation from all residents. The survey data will offer valuable information to City leadership regarding resident satisfaction levels with core services such as public safety, parks and recreation, community events, retail opportunities, arts and culture, jobs and economic development, transportation, mobility, access to government services, communication and engagement, transparency, and overall quality of life in Arcadia. These findings will establish a baseline understanding of residents' attitudes, beliefs, and opinions, serving as a reference point for future evaluations and comparisons. This data-driven approach will help the City align services and initiatives with community needs and aspirations, ensuring continuous improvement and informed decision-making into the future. Development Services: EnerGov Phase 2 – e-Reviews for Plan-Check and Business License Module ($82,330): Since its implementation in 2017, the EnerGov permitting system has been successfully utilized by the Development Services Department and Public Works Department. Building on this success, the Departments are now prepared to embrace the eReviews feature, which will streamline the submission and review process for structural plans by enabling online accessibility, file viewing, and permit issuance. This transition brings significant advantages to applicants as well, as they can conveniently review comments online and electronically resubmit plans without the need for printing or in-person submissions. This not only saves costs but also reduces turnaround time. As part of this change, plan-checkers in each department will need to upgrade their computer monitors to 43 inches, including the counter monitors. Moreover, certain divisions will make modifications to their work environment, such as implementing new computer systems, incorporating standing tables, and introducing dividers between Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 13 of 22 desks. These enhancements are necessary to facilitate efficient viewing of the structural plans. Furthermore, the transition to Energov will be completed with the inclusion of the Business License module, which will align all divisions within the Department on a unified platform. The software advancements made by the vendor will better support the Department's operations and further enhance efficiency and coordination across divisions. Development Services: Downtown Lighting and Image Improvements (ARPA Funding $150,000): Proposed use of ARPA funds to implement the following substantial improvements in the Downtown Commercial District of Arcadia: 1. Enhance Tree Lighting and Electrical Infrastructure: Allocate funds to replace the aging up-lights, tree-mounted power boxes, and electrical conduit for the 68 palm trees in Downtown Arcadia. These components were originally installed as part of the Downtown 2000 Beautification Project in the 1990s and have now reached the end of their lifecycle. This upgrade will ensure proper functionality, aesthetics, and safety. The estimated cost for this project is $75,000. 2. Installation of Over-the-Street Banners: Allocate funds to install a new permanent Over- the-Street Banner system on First Ave, spanning between Huntington Drive and Alta Street. This installation will serve as a dedicated space for the Downtown Arcadia Improvement Association (“DAIA”) and other community organizations to showcase banners and promote events, eliminating the need for temporary setups. This enhancement will contribute to the vibrancy and identity of the Downtown area. The estimated cost for this project is $25,000. 3. Streetscape Infrastructure Refresh: Allocate funds for miscellaneous improvements to refresh, repair, or replace elements of the existing streetscape infrastructure from the Downtown 2000 project. This may include improvements to planters, lighting fixtures, and signage, among other components. These enhancements will revitalize the streetscape, maintaining a visually appealing and welcoming environment for businesses, residents, and visitors alike. The estimated cost for this project will not exceed $50,000. Fire Department: Basic Life Support (“BLS”) Peak Hours Ambulance (General Fund $179,740 / Equipment Replacement Fund $731,600): The proposed program, "BLS Peak Hours Ambulance," aims to address the increased demand for medical services during peak hours in the City of Arcadia. Currently, the Fire Department's two Rescue Ambulances are often unavailable due to high call volumes and longer hospital bed wait times. To ensure timely response to additional medical incidents, the Fire Department plans to introduce a Basic Life Support (BLS) ambulance, which will primarily transport patients requiring BLS level care. By doing so, the availability of the Department's Advanced Life Support (ALS) rescue ambulances will be enhanced for incidents necessitating higher levels of medical care. Furthermore, during significant, larger scale incidents, the BLS ambulance will serve as an additional medical resource. Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 14 of 22 Introducing a BLS peak hours ambulance will improve the Fire Department's services to the community in several ways. Firstly, it will provide coverage for incidents that currently require assistance from neighboring jurisdictions, reducing the need for automatic aid responses. This will enable the Fire Department to maximize cost recovery generated by medical transport and minimize response times for incidents requiring an ambulance from outside the city. Additionally, the proximity of the BLS ambulance will result in a modest decrease in response times for City of Arcadia residents. The program proposes staffing two BLS ambulance operators for 12-hour shifts, from the hours of 8:00 a.m. to 8:00 p.m., seven days a week. Included in the program cost is the purchase of one new Rescue Ambulance, which totals $731,600 ($634,800 for the vehicle and $96,800 for upfitting costs) budgeted in the Equipment Replacement Fund. Some of these costs will be recovered through additional billings for the transportation of patients that were previously handled by other agencies supporting the City when necessary. Fire Department: Administrative/ Training Fire Captain Expanded to Full-Time Position ($248,270): This program aims to enhance the existing temporary Training Captain position approved for Fiscal Year 2022-23 by establishing a permanent Administrative/Training Fire Captain position. The need for this upgrade is driven by vacancies in the Firefighter and Fire Engineer ranks resulting from personnel departures. The Training Captain has played a crucial role in providing essential training to both probationary members and in-service personnel. In addition to the responsibilities established in the previous year such as scheduling in- service training, conducting multi-company drills, and evaluating probationary examinations, the Administrative/Training Fire Captain will also take on additional administrative duties to assist the Fire Department's command staff with various projects. It is anticipated that this position will dedicate over 400 hours to training Department members and continue to serve as a consistent evaluator for probationary firefighters. Creating this position will also result in the promotion of one Fire Captain, while the added administrative support will help balance the workload of the command staff and enable them to focus on pursuing new projects that benefit both the Department and the City. Through careful planning and coordination of training exercises, this position will contribute to minimizing the impact on the community by reducing the amount of time crews spend out of service. With enhanced administrative support and collaboration with the command staff, the implementation of new projects will generate positive outcomes for the City and improve overall operations within the Fire Department. Fire Department: Addition of one Fire Prevention Specialist to the Fire Prevention Bureau (General Fund $99,900 / AQMD $54,000): To further enhance the Fire Prevention Bureau, the addition of one (1) Fire Prevention Specialist is being proposed. Over the years, the construction of multiple projects with increased density has led to a significant rise in the number of annual inspections, increasing from 1,470 in 2004 to Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 15 of 22 3,484 today; this represents a 137% increase in the workload for annual inspections. Furthermore, the complexity of these new buildings necessitates enhanced technical expertise within the annual inspection program. The introduction of a new Fire Prevention Specialist will play a vital role in ensuring that the City maintains an adequate level of fire and life safety. This request also includes the acquisition of one (1) new all-electric vehicle and the installation of a charging station. Both the vehicle and the charging station comply with the requirements set by the Air Quality Management District (“AQMD”) and will be fully funded using the allocated AQMD funding source. The total cost for the vehicle and charging station amounts to $54,000. Library & Museum: Third Party Notification System for Items Outstanding ($10,000): To enhance communication with patrons and ensure timely notifications, it is proposed to implement an SMS alert and messaging system. This system would be utilized to inform patrons about upcoming due items, items on hold, and even overdue materials. The intention is to address the limitations of the current email notification system within the Integrated Library System (“ILS”). Occasionally, emails sent through the system are blocked by recipients' email providers, resulting in patrons not receiving important notifications in a timely manner. By implementing an SMS alert and messaging system, electronic communication with patrons would be significantly improved. This would reduce the reliance on emails that may get blocked by third-party carriers, ensuring that patrons receive essential notifications without any disruptions. Additionally, this system would help reach patrons who prefer to receive updates through text messages, providing them with convenient and reliable means of staying informed about their library account and materials. By diversifying the notification channels and reducing the occurrence of blocked emails, the proposed SMS alert and messaging system will enhance the overall patron experience and improve the effectiveness of electronic communication within the library. Police Department: License to Carry a Concealed Weapon ("CCW") Psychological Testing ($25,500): As per the requirements outlined in Penal Code 26190(f)(1), Penal Code 26190(f)(2), and Arcadia Police Department Policy Section 218.4.2(b), the Chief of Police has the authority to mandate that CCW (Carry Concealed Weapon) applicants undergo psychological testing conducted by an authorized psychologist selected by the Department. This testing is an integral part of the evaluation process to determine the applicant's eligibility for a CCW license. The Department has established a contract with a licensed police department psychologist to administer the psychological tests, with each test costing $450. According to Penal Code 26190(f)(1) and 26190(f)(2), the CCW applicant can only be charged a maximum of $150 for the psychological test. Consequently, the City is responsible for covering the remaining cost of $300 that exceeds the applicant's payment. Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 16 of 22 Based on the recent influx of CCW applications following the ruling of New York State Rifle & Pistol Association v Bruen, 142 S. Ct. 2111 (2022), the Department anticipates receiving approximately 85 initial CCW applications per year. Considering that CCW licenses are valid for two years and require renewal, it is projected that an equal number of CCW renewal applicants per year will necessitate psychological testing starting in 2025. This adherence to the law and departmental policies ensures that the evaluation process for CCW applicants includes essential psychological testing, with the associated costs being appropriately managed and distributed between the applicants and the City. Public Works Services: Project Manager Position (General Fund $76,200 / Other Funds $76,200): The Public Works Services Department (“PWSD”) plays a crucial role in maintaining and repairing the City's publicly-owned infrastructure and facilities. This encompasses a wide range of responsibilities, including the upkeep of City buildings, parks, trees, 147 miles of roadway, 138 miles of sanitary sewer system pipeline, and the City's water distribution system, which serves more than 56,000 residents through approximately 14,000 connections. To ensure the proper functioning of the City's infrastructure, the PWSD carefully schedules various annual improvement projects such as pavement rehabilitation, slurry seal improvements, water valve replacements, sewer-main replacements, water-main replacements, and facility enhancements. To enhance the efficiency of completing these construction projects, the PWSD is requesting the addition of a Project Manager to their team. By incorporating a dedicated Project Manager, the PWSD aims to streamline the execution of capital improvement projects. This role would focus solely on overseeing all aspects of project development and construction. The Project Manager would possess advanced knowledge in engineering and architectural design principles, practices, and procedures, as well as expertise in estimating and project accounting. This position would primarily focus on complex construction management for the City’s capital projects, with an emphasis on the construction phases of each project. The Project Manager cost is $152,400 starting in Fiscal Year 2023-24. The funding for this position would be allocated from various sources, with 50% from the General Fund, 25% from Water Fund, and 25% from Sewer Fund. Parks and Recreation: Arcadia branded items to sell at the Gift Shop ($7,500): The Arcadia Gift Shop is an exciting initiative that aims to offer a wide range of merchandise showcasing Arcadia's spirit and pride. The shop will feature a variety of items such as t- shirts, sweatshirts, hats, cups, bags, and more, all branded with Arcadia designs. To ensure smooth operations, the plan is to utilize existing staff members and volunteers who are dedicated to supporting the gift shop program. Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 17 of 22 In terms of revenue, the projected amount is $9,000. The pricing strategy will involve a markup ranging from 10% to 25% on the cost of the merchandise, ensuring a reasonable profit margin for the shop. Start-up costs for the Gift Shop should total about $7,500 and will cover essential expenses such as inventory acquisition, display fixtures, point-of-sale systems, and any necessary marketing materials or signage. Overall, the Arcadia Gift Shop presents an opportunity for residents and visitors to proudly display their connection to the City. It will not only generate revenue, but also foster a sense of community and belonging among individuals who choose to support and engage with the shop. FY 2023-24 Ongoing Annual Proposed New Programs Start Up Costs Costs City Manager Arcadia Community Survey 30,000$ -$ Administrative Services Accountant 113,100 117,600 Full Time Administrative Assistant 54,900 57,100 Police Concealed Weapon Psychological Testing 25,000 25,000 Fire New Fire Prevention Specialist 153,900 103,900 New Vehicle for Fire Prevention Specialist 54,000 - Expand Administrative/Training Captain Full Time Position 248,300 256,200 BLS Peak Hours Ambulance Operators 131,500 136,800 New BLS Peak Hours Ambulance 100,000 - New Fire Utility Truck 731,600 - Public Works Services Project Manager 152,400 158,500 Development Services EnerGov Phase 2 - e-Review for Plan Check and Business License 82,300 20,700 Parks and Recreation Arcadia Branded Merchandise 7,500 7,500 Library and Museum 3rd Party Notification System for Outstanding Items 10,000 10,000 Total New Programs 1,894,500$ 893,300$ Programs Funded by Equipment Replacement Fund (885,600) - Total New Programs (General Fund)1,008,900$ 893,300$ Capital Improvement and Equipment Replacement Funds In recent years, the City has successfully accumulated funds in the Capital Improvement and Equipment Replacement Funds to save for significant purchases that occur intermittently. The balance of each fund has grown through financial prudency and by transferring excess funds from the General Fund at the end of each fiscal year. Specifically, staff has a goal of transferring at least the 10-year average expenditure from each account from the General Fund. Despite the current balances, it remains crucial for the City to continue its practice of adding to these funds and avoid the precariously low- Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 18 of 22 levels that followed the Great Recession of 2008. To establish a sustainable fund balance for future purchases and projects, the FY 2023-24 Budget proposes a transfer of $6.8 million from the General Fund, with $3.4 million allocated to the Capital Improvement Fund and $3.4 million to the Equipment Replacement Fund. The FY 2023-24 Capital Improvement Plan entails 41 projects, with a total expenditure of $15.8 million. Of this amount, $6.2 million will be funded from the Capital Improvement Fund. The Capital Improvement Fund primarily supports crucial maintenance initiatives such as pavement rehabilitation, building repairs, and parks maintenance. The following table provides a summary of some major proposed projects scheduled for the year. FY 2023-24 MAJOR CAPITAL IMPROVEMENT PROJECTS Project Description Project Budget Funding Source Annual Slurry Seal Program $1,320,000 Capital Improvement Fund Advanced Metering Infrastructure (AMI)/ Meter Replacement Program $1,200,000 ARPA Fund Bonita Park Concession Building Improvement Project $1,700,000 Park & Recreation Facilities Fund Pavement Rehabilitation Program $2,255,000 Capital Improvement $1.05Mil & RMRP (SB1) - $1.2Mil City Facilities Exterior Painting $300,000 Capital Improvement Fund Water Main Replacement Program $520,000 ARPA Fund City Facilities Reroof $1,500,000 Capital Improvement Fund Arterial and Pavement Rehabilitation $900,000 Prop C The Equipment Replacement Fund plays a critical role in funding essential equipment such as computers, vehicles, and major office equipment. To ensure the sustainability of the Equipment Fund, an annual transfer of $2.4 million from the General Fund was initially estimated. However, a recent review of this amount has revealed that an increased annual transfer of $3.4 million is now necessary to accommodate rising costs from inflation and the demand for new equipment. In the proposed budget, there is a higher number of vehicle replacements planned, specifically, heavy-duty vehicles used by the Public Works, Fire, and Police Departments. Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 19 of 22 The City follows a practice of extending the lifespan of vehicles beyond their typical expectancy, evaluating factors such as mileage and annual maintenance costs to determine when replacements are necessary. However, this year, an increased number of vehicles are budgeted for replacement due to manufacturing backlogs caused by the COVID-19 pandemic, resulting in projected waiting periods of up to 24 months. Consequently, most sedans, particularly Police Patrol vehicles, are being pre-ordered in anticipation of these delays. In addition to the sedans, the Water Division of Public Works will require the replacement of a heavy-duty valve truck, and the Streets Division will need a new CNG Street Sweeper. In addition to the proposed equipment replacements, the City is seeking to acquire a new Rescue Ambulance (“RA”) to support the proposed Basic Life Support (“BLS”) "Peak Hours" Program. The program addresses the increased call volume and longer hospital bed wait times experienced during peak hours. The new ambulance will be deployed during this period when the existing two RAs are unavailable to respond to additional medical incidents in the City. The Equipment Replacement Fund encompasses a comprehensive list of 41 equipment purchases, totaling $5.1 million. Eighty percent of the $5.1 million (or $4.1 million) will be funded by the Equipment Replacement Fund. The table below provides a summary of some of the significant equipment purchases proposed for the upcoming period. FY 2023-24 MAJOR EQUIPMENT REPLACEMENT PURCHASES Equipment Replacement Description Replacement Budget Funding Source Street Vehicle Replacements:  Heavy Duty Stake Bed Truck  ¾ Ton Pickup Truck (2)  CNG Street Sweeper  ¾ Ton Stake Bed Truck  ½ Ton Pickup Truck  Installation of equipment and accessories $1,460,700 Equipment Replacement Water Vehicle Replacements: • Dump Truck  ¾ Ton Pickup Trucks (3)  Installation of equipment and accessories $619,900 Water Fund Fire Rescue Ambulance & installation of equipment and accessories $731,600 Equipment Replacement Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 20 of 22 FY 2023-24 MAJOR EQUIPMENT REPLACEMENT PURCHASES Equipment Replacement Description Replacement Budget Funding Source Fire Dept. - Communication & Technology Equipment Replacement $280,000 Equipment Replacement Ensuring the steady deposit of funds into these vital accounts, at or above the minimum required contributions, is of utmost importance for the City in the coming years. With this approach, the City can maintain sustainable funding levels for these accounts. This proactive approach is crucial in preventing failure of the City's infrastructure system and ensuring staff has the necessary tools and equipment to carry out their essential duties. Taking these steps will contribute to a thriving and well-maintained cityscape, enhancing the overall quality of life for residents and supporting the efficient functioning of municipal services. ECONOMIC OUTLOOK The General Fund FY 2023-24 operating budget reflects a cautiously optimistic outlook following the recovery from the economic challenges brought about by the COVID-19 pandemic. Thanks to strong fiscal management and the successful implementation of a Transaction Use Tax in 2019, the City has been able to maintain the high level of services that the community has come to expect. These prudent financial practices have positioned the City favorably, leading to a projected surplus for FY 2023-24, despite the possibility of a moderate or stagnant economic environment that could impact revenue streams. While concerns about inflation, supply chain disruptions, and a slowing economy persist, the actual impact on the economy remains uncertain. Economic indicators suggest the potential for a recession, but accurately predicting its timing is difficult. Nonetheless, the City is prepared to navigate these challenges, leveraging its financial stability and proactive measures to adapt and thrive in any economic scenario. By maintaining a positive and proactive approach, the City remains well-equipped to overcome uncertainties and continue delivering excellent service to the community. Considering the aforementioned factors, a budget stress test was conducted to assess the potential financial trajectory of the City in the future. The stress test scenario assumed a recession would occur in the latter half of FY 2023-24, followed by a slow recovery that would require multiple years to normalize. Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 21 of 22 Recessionary Stress Test: 5-Year Budget Outlook The results of the stress test reveal a positive outlook, indicating that even in the event of a recession, the projected annual deficits would range from 0.9% to 5.5%, equivalent to approximately $640,000 to $4.9 million. These deficit figures are within manageable limits and can be addressed through feasible cost-saving measures, or if necessary, modest budget reductions. The City has consistently demonstrated its adaptability and ingenuity in maintaining critical services during challenging economic conditions, effectively delivering what residents and businesses value the most. Moreover, historical budget performance from previous years aligns with the projected deficit figures, further instilling confidence in the City's ability to navigate these uncertainties successfully. Finally, when more traditional recovery is anticipated, the stress test showed positive net operating balances over the 5-year projections. CONCLUSION The proposed FY 2023-24 General Fund Operating Budget demonstrates a balanced financial position, with a projected surplus of $3.1 million. This surplus is a result of Total Operating Revenues and Transfers In amounting to $90.9 million, net of Operating Expenditures and Transfers Out totaling $87.8 million. The City's commitment to conservative spending practices has allowed for the accumulation of savings, providing a cushion to navigate economic uncertainties in the short term. This prudent approach also enables the City to plan and execute long-term strategies effectively. By adopting this Budget, City staff will maintain their dedication to delivering exceptional services to the community while upholding fiscal responsibility. To move forward with the proposed budget and ensure effective financial planning, it is recommended that the City Council adopt the proposed Resolutions, which include 60 65 70 75 80 85 90 95 100 105 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 Mi l l i o n s Expenditures Revenue & Sources Adoption of the Operating Budget and CIP and Equipment Plans June 6, 2023 Page 22 of 22 enacting the FY 2023-24 Operating Budget as well as the Five-Year Capital and Equipment Replacement Plans. Attached to this staff report are the following: • Exhibit “A”: a summary of Sources and Uses for All Funds reflecting the proposed Operating Budget presented to Council for Adoption • Exhibit “B”: a summary of the proposed Five-Year Capital Improvement and Equipment Replacement Plan ENVIRONMENTAL ANLYSIS The proposed actions do not constitute a project under the California Environmental Quality Act (“CEQA”), based on Section 15061(b)(3) of the CEQA Guidelines, as it can be seen with certainty that they will have no impact on the environment. Thus, these matters are exempt under CEQA. Many individual budgeted items in the attached documents may require their own environmental reviews, which will be conducted when each project is brought forward for consideration. RECOMMENDATION It is recommended that the City Council: 1) Adopt Resolution No. 7500 adopting a Budget for Fiscal Year 2023-24 and appropriating the amounts specified therein as expenditures from various funds; and 2) Adopt Resolution No. 7501 adopting a Capital Improvement and Equipment Plan for the Fiscal Years 2023-24 through 2027-28. Attachments: Exhibit “A” – All Funds Operating Budget Summary Exhibit “B” – Five-Year Summary of Capital and Equipment Plan Resolution No. 7500 Resolution No. 7501 Attachment A Ending Fund Fund Beginning Outside Transfer Total Appropriation Transfer Total Balance Fund FY23-24 Sources In Out FY23-24 General Fund 24,667,900 84,831,700 6,091,200 115,590,800 80,026,300 7,786,200 87,812,500 27,778,300 Narcotic Seizure Federal 164,200 34,900 0 199,100 0 0 0 199,100 COPS 255,500 177,700 0 433,200 179,600 0 179,600 253,600 Medical/Dental 456,800 0 4,706,200 5,163,000 4,704,600 1,600 4,706,200 456,800 Local Law Enforcement 0 110,000 135,300 245,300 245,300 0 245,300 0 IRS Task Force 466,500 14,000 0 480,500 0 0 0 480,500 Worker Compensation/Liability 5,331,900 160,000 2,710,100 8,202,000 2,944,900 0 2,944,900 5,257,100 Homeland Security (23,600) 0 0 (23,600) 0 0 0 (23,600) Library State Grant 600 0 0 600 0 0 0 600 Homelessness Plan 0 355,000 0 355,000 355,000 0 355,000 0 Office of Traffic Safety Grant 3,600 79,300 0 82,900 79,300 0 79,300 3,600 California OES HSGP (39,800) 72,000 0 32,200 72,000 0 72,000 (39,800) Autotheft Prevention Taskforce 5,500 0 0 5,500 0 0 0 5,500 Misc. P.E.R.S. Employee Retirement Fund 0 0 0 0 0 0 0 0 Emergency Reserve 14,447,800 0 0 14,447,800 0 0 0 14,447,800 Emergency Response 2,792,000 0 0 2,792,000 0 0 0 2,792,000 America Rescue Plan Act 6,512,800 0 0 6,512,800 4,293,000 0 4,293,000 2,219,800 Public, Educational/Governmental Access 1,106,800 113,200 0 1,220,000 0 0 0 1,220,000 Parks & Recreation 8,637,700 1,659,100 0 10,296,800 6,061,100 34,200 6,095,300 4,201,500 Used Oil Grant 17,200 16,000 0 33,200 7,000 0 7,000 26,200 DOC Beverage Grant 71,300 16,600 0 87,900 14,500 0 14,500 73,400 Traffic Safety 0 152,000 0 152,000 0 152,000 152,000 0 Solid Waste 2,025,000 760,800 0 2,785,800 532,300 300,000 832,300 1,953,500 Measure W ‐ Safe Clean Water Program 1,813,300 1,074,400 0 2,887,700 621,000 0 621,000 2,266,700 Dow Settlement Fund 5,637,400 169,100 0 5,806,500 0 0 0 5,806,500 State Gas Tax (275,700) 1,609,500 0 1,333,800 0 1,400,000 1,400,000 (66,200) Road Maintenance/Rehabilitation Act 1,574,300 1,453,600 0 3,027,900 2,400,000 0 2,400,000 627,900 Air Quality Management District 132,400 78,500 0 210,900 108,400 0 108,400 102,500 Community Development Block Grant 0 323,900 0 323,900 323,900 0 323,900 0 Santa Anita Grade Separation 731,000 21,900 0 752,900 0 0 0 752,900 Transit 376,500 3,447,300 674,300 4,498,100 3,437,300 0 3,437,300 1,060,800 Proposition A 3,016,000 1,707,000 0 4,723,000 296,700 1,352,600 1,649,300 3,073,700 Transportation Impact Fund 106,400 183,700 0 290,100 614,300 0 614,300 (324,200) Proposition C 2,724,200 3,122,500 0 5,846,700 5,904,200 0 5,904,200 (57,500) TDA Article 3 Bikeway 6,200 0 0 6,200 0 0 0 6,200 STPL & ITS Special Fund 0 0 0 0 0 0 0 0 Measure R 1,873,200 931,200 0 2,804,400 1,480,300 901,700 2,382,000 422,400 Measure M 1,778,800 1,045,200 0 2,824,000 2,167,000 0 2,167,000 657,000 Capital Improvement 11,181,300 767,400 3,400,000 15,348,700 9,776,700 0 9,776,700 5,572,000 City Hall Reserve 100 0 0 100 0 0 0 100 Lighting Maintenance 173,700 1,383,000 868,000 2,424,700 1,446,600 0 1,446,600 978,100 Water Fund (3,003,500) 16,006,600 0 13,003,100 18,796,500 0 18,796,500 (5,793,400) Sewer Fund 5,277,400 2,691,300 0 7,968,700 2,932,700 0 2,932,700 5,036,000 Par 3 Golf Course Fund 1,895,600 1,982,800 0 3,878,400 1,245,000 0 1,245,000 2,633,400 Equipment Replacement 6,689,600 206,100 3,400,000 10,295,700 5,817,400 34,500 5,851,900 4,443,800 Redevelopment Successor Agency (6,942,300) 1,753,400 0 (5,188,900) 1,753,400 0 1,753,400 (6,942,300) General Obligation Bond 2012 396,800 428,900 0 825,700 406,300 0 406,300 419,400 General Obligation Bond 2011 450,500 435,800 0 886,300 522,100 0 522,100 364,200 Pension Obligation Bonds 2020 4,300 5,875,300 0 5,879,600 5,875,300 0 5,875,300 4,300    Total 102,517,200 135,250,700 21,985,100 259,753,000 165,440,000 11,962,800 177,402,800 82,350,200 USES OF FUNDSSOURCES OF FUNDS CITY OF ARCADIA SUMMARY BY FUND FISCAL YEAR 2023-2024 PROPOSED BUDGET ESTIMATED ESTIMATED PROPOSED ESTIMATED FUNDS FIVE-YEAR FIVE-YEAR FUNDS 7/01/2023 REVENUE EXPENDITURE 6/30/2028 CAPITAL OUTLAY FUND 11,180,400 22,906,400 (27,943,400)6,143,400 PARK AND RECREATION FUND 8,557,700 7,099,900 (6,244,300)9,413,300 MEASURE W CLEAN, SAFE WATER PROGRAM 1,782,700 5,552,200 (2,705,000)4,629,900 GAS TAX (HUTA) FUND (308,700) 8,080,900 (7,015,000)757,200 ROAD MAINTENANCE AND REHABILITATION PROGRAM 1,574,300 7,177,600 (7,200,000)1,551,900 AQMD 132,900 400,800 (198,400)335,300 PROP C LOCAL RETURN 2,935,200 8,445,600 (10,754,400)626,400 TRANSPORTATION IMPACT FUND 106,400 1,020,000 (1,514,300) (387,900) MEASURE R LOCAL RETURN 1,653,700 5,151,400 (6,519,600)285,500 MEASURE M LOCAL RETURN 2,391,300 7,396,900 (7,726,000)2,062,200 WATER FACILITY RESERVE 11,863,900 1,147,600 (11,454,500)1,557,000 WATER EQUIPMENT RESERVE (133,300)- (3,526,000) (3,659,300) SEWER FUND 5,079,000 13,747,900 (12,953,200)5,873,700 EQUIPMENT FUND 6,238,100 17,474,600 (26,424,900) (2,712,200) SUMMARY OF PROPOSED FIVE YEAR CAPITAL PROGRAMS FISCAL YEAR 2023-24 THROUGH 2027-28 CITY OF ARCADIA Attachment B RESOLUTION NO. 7500 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, ADOPTING A BUDGET FOR FISCAL YEAR 2023-2024 AND APPROPRIATING THE AMOUNTS SPECIFIED THEREIN AS EXPENDITURES FROM THE VARIOUS FUNDS WHEREAS, on June 6, 2023, the City Manager submitted to the City Council a proposed Budget for Fiscal Year 2023-2024, a copy of which is on file in the Office of the City Clerk; and WHEREAS, Section 1204 of the Arcadia City Charter requires notice and hearing for consideration of a proposed operating budget and its adoption by resolution; and WHEREAS, the aforementioned proposed Budget includes the budget for the ensuing Fiscal Year 2023-2024; and WHEREAS, notice of the public hearing on the proposed Budget and a summary of the proposed Budget were posted per Resolution No. 7483; and WHEREAS, the Fiscal Year 2022-23 General Fund operating results is projected to have a $9.8 million budget surplus; and WHEREAS, the duly noticed public hearing was conducted by the City Council on June 6, 2023. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. That certain "City of Arcadia Budget, Fiscal Year 2023-2024", as on file in the office of the City Clerk, together with any approved amendments thereto, is hereby adopted, in pertinent part, as the official budget of the City of Arcadia for the Fiscal Year 2023-2024 and the amounts specified therein as expenditures from the funds indicated are hereby appropriated for the purposes specified therein. 1 RESOLUTION NO. 7501 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, ADOPTING A CAPITAL IMPROVEMENT AND EQUIPMENT PLAN FOR FISCAL YEARS 2023-24 THROUGH 2027- 28 WHEREAS, on June 6, 2023, the City Manager submitted to the City Council a proposed plan entitled, "Capital Improvement and Equipment Plan, Fiscal Years 2023- 2028", a copy of which is on file in the office of the City Clerk; and WHEREAS, Section 1205 of the Arcadia City Charter requires notice and hearing for the consideration of a capital program and its adoption by resolution of the City Council; and WHEREAS, notice of the public hearing on the proposed Capital Improvement and Equipment Plan was posted per Resolution No. 7 483; and WHEREAS, the duly noticed public hearing was conducted by the City Council on June 6, 2023. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. That certain "Capital Improvement and Equipment Plan, Fiscal Years 2023-2028", as on file in the office of the City Clerk, together with any approved amendments thereto, is hereby adopted, in pertinent part, for Fiscal Year 2023-2024. SECTION 2. The City Clerk shall certify to the adoption of this Resolution. [SIGNATURES ON NEXT PAGE] 1