Staff recommends that City Council approve the FY 2022-23 Mid-Year Budget Appropriations as outlined in Exhibit “C” attached to this staff report.

Each year the City Council adopts a budget, which commits finite resources to accomplish goals and objectives. The City's FY 2022-23 Mid-Year Budget Report and Presentation will provide an overview of the following items:

• Recommending strategic allocations of one-time PSVS funds.
• Recommending one new authorized position related to illegal dumping from the existing budget.
• Not recommending any new appropriations of general funds or other enterprise funds.
• Remaining funds to be set aside as contingency or reserves for the next fiscal year.

The following summary is intended to provide an overview of the various PSVS additions that staff will be recommending as part of the mid-year update. Staff will be seeking the Citizens Oversight Committee’s recommendation on these items and plan to include these as part of the comprehensive mid-year budget update that will be provided to the City Council on March 8, 2023.

The City’s FY 2021-22 year-end General Fund available balance is $6 million. The City’s FY 2021-22 year-end PSVS balance is $18 million. These figures are comprised of revenues that exceeded revised projections, savings from positions that were vacant for any part of the year ending June 30, 2022, and appropriations within operating budgets that were not encumbered or expended by June 30, 2022.

Fiscal Year 2022-23 Mid-Year Budget Adjustments and Appropriations:

PUBLIC SAFETY & VITAL CITY SERVICES (PSVS) FUND:  Total:  $7,676,813

Staff will be recommending the use of these one-time funds to allocate to several major City Strategic Programs being proposed - $7,676,813 (Additional detail in Exhibit “A”).

•  $600,000 allocation for the Police Department Training Facility Payment 
• $300,000 allocation to the Family Reunification Initiative
• $1.1 million allocation for Private Security Services
• $150,000 allocation to the Clean City Teams Software System Purchase
• $2,626,813 allocation towards Affordable Housing Trust Fund
• $300,000 allocated toward a Shopping Cart Containment Subsidy Program
• $1.6 million allocation to the City Rainy-Day/Cash Basis Reserve Fund
• $300,000 allocation for the Animal Shelter Operating & Capital Improvement Projects
• $300,000 allocation to the Park Amenities and Renovation Improvements (PARI) Fund
• $400,000 allocation to Support Funding for Endangered Species Act (ESA) Compliance

Based on revenue trends, City staff, and our outside revenue consultant are estimating that the General Fund Bradley Burns sales tax will meet projected revenues. However, staff is conservatively estimating PSVS revenues will not meet the projected revenue of $101 Million. It is estimated that actual revenues will be $3 to $4 million below the originally budgeted amount. Fortunately, there is the capacity to address this deficit through a greater than anticipated fund balance in PSVS available due primarily to higher vacancy rates.

Staff will be providing additional context and background for each of these items as part of the presentation to the PSVS Citizens Oversight Committee. Additionally, staff will be seeking the recommendation from the Committee on these items finding that they are consistent with the projects, programs, and services described within the PSVS Measure.

DEVELOPMENT SERVICES DEPARTMENT MID-YEAR ADJUSTMENT:  Total:  $100,282

Development Services Department Mid-Year Adjustment:

The Development Services Department will be recommending one new FY 2022-23 Mid-Year Budget authorized full-time position related to illegal dumping from the City’s existing budget that directly correlates with City Council goals, covered in more detail in Exhibit “B”.:

 Code Enforcement Officer I/II:  $107,406 Salary/Benefits (Annual Cost)/ $35,802 four-month cost plus an additional $64,480 for one-time start-up costs of a new vehicle, computer, and equipment.

Development Services Department Funding Sources:  Grand Total $100,282

•  $85,961: Kern County Illegal Dumping Funds
•  $14,321: State Waste Tire Enforcement Grant Funds

RECREATION AND PARKS DEPARTMENT MID-YEAR APPROPRIATION:  Total:  $1,329,389

Recreation and Parks Department Mid-Year Appropriation:

The Recreation and Parks Department requests that an additional appropriation in the amount of $1,329,389 be approved for the Land and Water Conservation Fund grant for the Kaiser Permanente Sports Village Phase 4 project. No additional funds are required from City sources. Additional information is included in Exhibit “B”.