This administrative report and three items before the City Council are related to the adoption of the Fiscal Year 2023-24 City of Bakersfield operating and capital improvement budgets.

The first item is a resolution adopting the FY 2023-24 budget, totaling $788,544,800. The budget is comprised of the operating budget, including transfers, totaling $695,384,796, and the capital improvement budget totaling $93,160,004. The proposed budget reflects the funding of the City’s operating cost, including $121,000,000 in Bakersfield Public Safety and Vital Services (PSVS) Measure appropriations and the funding of various capital improvements, including street and road resurfacing, park and recreation facilities, and improvements to other City-owned facilities for the 2023-24 fiscal year.

The budget proposed for City Council adoption makes significant, sustained investment in action items associated with all City Council Goals. Select highlights of the proposed budget include:

• Proposed addition of 4 new sworn Police positions
•  Proposed addition of 8 new civilian Police positions
• Continuation of private security services in strategic partnership with the Bakersfield Police Department
• Continued support of the Class II ISO-rated Bakersfield Fire Department through facility enhancement projects and specialized equipment acquisitions totaling $431,954 across all funds
• Continued operational PSVS Measure funding of $6.2 million for the 268-person capacity Brundage Lane Navigation Center (includes 119-bed expansion in FY 2022-23)
• Over $5.2 million was allocated across multiple funding sources to Recreation and Parks improvement projects and facility enhancements in all wards of the City
• Addition of 3 positions within the Code Enforcement Division to create a targeted Special Vacant Building Registry Program Team and Special Projects subsection within the division to focus on chronic nuisance properties
• Continued funding for the Economic Development Strategic Plan, business assistance tools, Economic Opportunity Areas and community revitalization.
• Operating and capital funding for local streets and right-of-way improvements across all funding sources totaling nearly $56.8 million (excludes proposed landscaping, dedicated multi-use path, and non-right-of-way infrastructure projects)
• $6.02 million of PSVS Measure funds for pavement rehabilitation from Panama Lane between Gosford and New Stine
• $4.25 million of PSVS Measure funds to rehabilitate Union Avenue from Columbus Street to Golden State Avenue
• $1.8 million of PSVS Measure funds for multi-modal demonstration projects
• $2 million of PSVS Measure funds for traffic calming projects
• Continued PSVS Measure funding for the Clean City Teams and Pop-Up Drop-Off Events as part of the Clean City Initiative
• Continued PSVS Measure funding for the downtown ambassador litter removal teams and waste removal program
• Continued PSVS Measure funding for the downtown private security and waste cleanup teams

As proposed, the budget includes the addition of 38 full-time positions throughout the operations, including the addition of 4 sworn Police positions and 8 new civilian police positions in direct response to the City Council’s priorities of enhancing public safety services. Additional positions included in the budget provide for the creation of a targeted Special Projects subsection within the Code Enforcement Division to focus on chronic nuisance properties. The budget also includes 4 positions within the City Manager’s Office to support the New Oracle Enterprise Resource Planning (ERP) system and expand the efforts of the California Violence Intervention & Prevention (CalVIP) program. Out of the 38 new positions included within this budget, 15 are funded by Public Safety and Vital Services Measure and 5 are proposed to be funded by historical general fund resources. The remaining positions are funded by enterprise funds or special funding sources.

Appropriations Limit

The appropriations limitation imposed by Proposition 4 (1979) and later amended by Proposition 111 (1990) creates a restriction on the amount of government revenue that may be appropriated in any fiscal year. The appropriations limit applies only to those revenues defined as “proceeds of taxes,” such as property tax, sales tax, and transient occupancy tax. The appropriations limit is based on actual appropriations during the base year (1986-87) and increases each year using specified growth factors. According to the Revenue and Taxation Code, Section 7910, local governments must establish their appropriations limit by resolution each year at a regularly scheduled meeting or a properly noticed special meeting. During any fiscal year, a government entity may not appropriate any proceeds of taxes received in excess of the appropriations limit.

The appropriations limit is different for each agency and the limit changes each year. For calculation purposes, the appropriations limit from the previous fiscal year is increased based on population growth and inflation factors as provided by the State Department of Finance.

A resolution adopting the Fiscal Year 2023-24 appropriations limit of $549,933,696 is included as part of the budget adoption process for Council consideration. The City’s appropriations which are subject to the limit total are $317,584,500. Therefore, the proposed appropriations are significantly below the maximum limit allowed by State law.

Publicly Available Pay Schedule

Recently, CalPERS provided notice to all member agencies of the requirement to have a publicly available pay schedule. The City has historically made this information available within its adopted budget document and on the City's website. However, CalPERS now requires the governing body of public agencies to approve and adopt this schedule at a regularly scheduled public meeting. Therefore, the approval of this item is necessary to comply with CalPERS regulations. The attached schedule reflects the most current pay schedule for all positions, inclusive of any rate adjustments as a result of previously approved labor agreements.