File #: 22-348    Version: Name:
Type: Presentation Status: Agenda Ready
File created: 9/27/2022 In control: City Council
On agenda: 11/8/2022 Final action: 11/8/2022
Title: Communication from the City Manager and Finance Director/Comptroller with a Request to Hold a DISCUSSION on the 2023 REVISED BUDGET.
Attachments: 1. 2023 Revised Budget - 10 11 22 HANDOUT, 2. 10182022 HANDOUT - 2023 Revised Budget Presentation, 3. 2023 Budget Report Back 1, 4. 2023 Budget Report Back 2, 5. Site Selectors Guild Review of Greater Peoria Fam Tour, 6. CIP 2023 sheet - Kickapoo Terrace Access Road, 7. Report Back #3 Attachments, 8. 2023 Budget Motions w Total - 110822, 9. Budget Report Back 3, 10. 2023 Budget Report Back 3 rev

ACTION REQUESTED: 

Title

Communication from the City Manager and Finance Director/Comptroller with a Request to Hold a DISCUSSION on the 2023 REVISED BUDGET.

 

Body

BACKGROUND:  The 2023 Revised Budget is on the table for initial discussion and review by council.  Some of the highlights include:

 

                     Total revenues increase 11.7% or $27,725,802 from the 2023 Adopted Budget to $264,944,626, with considerable increases in state shared revenues.  Local Sources are estimated to increase 3.2% or $4,821,977 from the 2023 Adopted Budget.

 

                     Local Sources are estimated to increase 3.2% or $4,821,977 from the 2022 Adopted Budget

 

                     State Sources were estimated last year at $59,363,192 for the 2023 Adopted Budget.  2022 projected state revenues are estimated at $80,059,943, significantly higher than the 2023 Adopted Budget. 

 

                     Federal Sources were estimated at $18,344,525 in the 2023 Adopted Budget. 

 

                     Expenses for fiscal year 2023 are recommended at $265,343,229, an increase of 9.6% from the 2023 Adopted Budget. 

 

                     Personnel Services - the salaries and wages for all City employees (including the Library) - total $72,331,924, an increase of 3.6% or $2,484,382.

 

                     Benefits - Police Pension costs increase 8.1% from $14,553,557 to $15,734,522 in 2023.  Fire Pension costs increase 17.8% from $13,234,528 to $15,592,186 in 2023. 

 

                     Contractual Services decrease in 2023 due to slightly lower ARPA spending on contractual services. In 2023, contractual services are $66,729,732 or $2,457,035 less than the 2023 Adopted Budget, a decrease of 3.6%.

 

                     Supplies and Materials increase $784,415 (19.7%) to accommodate inflationary increases and higher fuel costs. 

 

                     Capital expenses increase 17,104,740 (37.5%) over the 2023 Adopted Budget to $62,775,732. 2023 is the second year of a planned increase to Capital spending following the pandemic. 

 

FUND BALANCES

The economic recovery has assisted the City in replenishing fund balances.  Currently, the projected unobligated fund balance in the General Fund at the end of 2022 will be $54,220,845 or 50.0% of operating expenses.  Due to anticipated growth in pension obligations, excess fund balance will be assigned for future pension payments.  Fund balances grow 29.4% in total during 2022.

 

In 2023, the use of fund balance for capital projects, notably within the Capital Fund, Stormwater Utility Fund and TIFs will be offset by increases in the General, OPEB, and Sewer Funds.  Overall use of fund balance in 2023 totals $398,603 (0.3%). 

 

 

 

Budget Timeline

11-Oct   Proposed 2023 Revised Annual Budget Placed on File in the City Clerk's Office for Public Viewing

               

11-Oct   Proposed 2023 Revised Annual Budget Operating / Capital Budget document to City Council (Regular Meeting)

               

14-Oct   Publish Notice of Public Hearing for 2023 Revised Annual Budget (at least 10 days before hearing)

               

18-Oct   Budget discussions (Operating & Capital) with the City Council (Special Meeting)

               

18-Oct   Estimate of Levy to Council (not less than 20 days before adoption)

               

21-Oct   *Publish Notice of Truth-In-Taxation Hearing for Tax Levy (if necessary)

               

25-Oct   Public Hearing for Budget - Start @ 6:00 p.m. (Deferred 2 weeks)

               

25-Oct   Continue Budget discussions (Operating & Capital) with the City Council (Regular Meeting)

               

1-Nov    Truth in Taxation Hearing (if necessary)

               

1-Nov    Continue Budget discussions (Operating & Capital) with the City Council (Special Meeting)

               

8-Nov   Public Hearing for Budget - Start @ 6:00 p.m.

 

8-Nov    Finalization of 2023 Revised Annual Budget (Regular Meeting)

               

15-Nov ***RESOLUTION Adopting the 2023 Revised Annual Budget for the City of Peoria and Ordinance Approving 2022 Tax Levy  (Special Meeting)

               

18-Nov File 2022 Tax Levy with Peoria County and Annual Budget with Peoria County

               

December           Publish Final 2023 Revised Annual Budget Documents

 

 

 

 

FINANCIAL IMPACT:  The City is required to have a balanced budget.

 

NEIGHBORHOOD CONCERNS:  The budget has direct impact upon services delivered in City neighborhoods.

                     

IMPACT IF APPROVED: N/A

 

IMPACT IF DENIED:  N/A

 

ALTERNATIVES:  Alternatives will be discussed.

 

EEO CERTIFICATION NUMBER: N/A

 

WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?

 

1. Financially Sound City                     

2. Safe Peoria

3. Grow Peoria

4. Beautiful Peoria

 

 

WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?

 

1. Reduce crime.                     

2. Improve District 150.                     

3. Grow employers and jobs.                     

4. Invest in our infrastructure and transportation.

5. Support sustainability.

6. Reinvest in neighborhoods.

7. Keep taxes and fees competitive.

8. Have an efficient government.

 

 

DEPARTMENT: City Manager's Office