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 balan...
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