HomeMy WebLinkAboutItem 01 Budget Adjustment Discussion AGENDA ITEM SUMMARY Meeting Date: 1/25/2021
Meeting Type: Work Session
Staff Contact/Dept.: Nathan Bell
Staff Phone No: 541-726-2364
Estimated Time: 45 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Provide Financially
Responsible and
Innovative Government
Services
ITEM TITLE: BUDGET ADJUSTMENT DISCUSSION
ACTION
REQUESTED:
Provide direction to staff on adjustments to the fiscal year 2022 budget.
ISSUE
STATEMENT:
During a work session on June 8th, 2021, staff provided Council with a list of
proposed reductions in the General Fund to be incorporated into the adopted fiscal
year 2021 (FY21) budget. These reductions were proposed in response to the
financial impacts of the COVID-19 pandemic as well as the longer-term structural
imbalance in the General Fund. In the discussion that ensued, staff shared that this
was a first step in addressing these issues and that we would be coming back with
additional reductions as part of the FY22 budget process. Staff has prepared a list
of additional potential reductions to the General Fund to be considered for
incorporation into the FY22 proposed budget.
ATTACHMENTS: Attachment 1: General Fund Five-Year Forecast
Attachment 2: Ambulance Fund Five-Year Forecast
Attachment 3: General Fund Reduction Proposal
DISCUSSION/
FINANCIAL
IMPACT:
While working with the Executive Team (ET) on potential reductions to the
General Fund budget, staff prepared an updated five-year forecast for the General
Fund (Attachment 1) and Ambulance Fund (Attachment 2) to provide a context for
the need for additional reductions. These forecasts incorporate the continued
impacts of COVID-19 as well as any additional new information that affects the
major revenue and expenditure in the General Fund. The Budget Team, in
partnership with ET, has prepared a package of expenditure adjustments
(Attachment 3) for your consideration to be incorporated into the FY22 proposed
budget. In tandem with the FY21 reductions, these additional reductions will help
offset the impacts of the COVID-19 pandemic as well as place the City in a better
position to address the long-term structural imbalance in the General Fund. The
proposed reductions were considered in the context of their impact on outward
facing services and it was determined that it would be negligible.
However, in the coming months and years, City staff will continue to engage
Council in additional work sessions to address the financial challenges the City is
facing to maintain current service levels as well as fund a multitude of critical
unmet needs.
General Fund Five Year Forecast
Refresh Date: 1.12.21
Actual Actual Actual Actual FCST FCST FCST FCST FCST FCST
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26
Total Operating Revenue 35,936,676$ 37,128,696$ 38,206,005$ 40,006,281$ 39,510,255$ 40,125,550$ 41,914,627$ 42,913,717$ 44,041,475$ 45,234,925$
Personal Services 27,943,949 28,622,368 30,347,735 31,424,511 32,652,519 33,306,035 34,418,652 35,338,743 36,408,269 38,722,143
Material & Services 6,875,347 6,784,185 6,600,655 6,708,153 6,833,585 7,021,804 7,034,379 7,151,895 7,271,174 7,392,241
Capital Outlay 435,803 124,025 234,649 165,894 89,397 74,300 74,300 74,300 74,300 74,300
Total Operating Expenditures 35,255,098 35,530,578 37,183,039 38,298,558 39,575,501 40,402,139 41,527,332 42,564,938 43,753,742 46,188,684
Fiscal Transactions
Transfer to Street Fund (1)415,501 423,873 436,006 412,038 489,750 414,000 464,040 474,596 485,422 496,524
Transfer to Ambulance Fund (2)- - - - - 522,919 913,741 1,060,468 1,164,840 1,289,217
Transfer to Reserve for ADA Projects (3)- 13,250 - 100,000 100,000 - - - - -
Transfer to Building Preservation Reserve (4)- - - 400,000 400,000 - - - - -
Transfer to Special Revenue Fund (5)- - - 503,500 - - - - - -
Transfer to Development Assessment Capital Fund (6)- - - 64,293 56,311 56,311 56,311 56,311 56,311 56,311
Debt Service 532,103 - - - - - - - - -
Total Fiscal Transactions 947,604 437,123 436,006 1,479,831 1,046,061 993,230 1,434,092 1,591,375 1,706,573 1,842,052
TOTAL Expenditures 36,202,702 35,967,701 37,619,045 39,778,389 40,621,562 41,395,369 42,961,424 44,156,314 45,460,315 48,030,736
(266,026) 1,160,995 586,960 227,892 (1,111,307) (1,269,820) (1,046,797) (1,242,597) (1,418,840) (2,795,811)
Beginning Cash 8,666,256 8,574,037 9,735,032 10,321,992 10,549,884 9,438,577 8,168,757 7,121,960 5,879,363 4,460,523
Ending Cash 8,400,230$ 9,735,032$ 10,321,992$ 10,549,884$ 9,438,577$ 8,168,757$ 7,121,960$ 5,879,363$ 4,460,523$ 1,664,712$
Ending Cash as a Percent of Operating Expenditures 24%27%28%28%24%20%17%14%10%4%
Operating Expenditures
Current Operating Revenue over Expenditures
FISCAL TRANSACTIONS NOTES:
2.) This transfer is an estimate based on the level of need projected in the Ambulance Fund.
1.) Right of Way use fee charged by the Street Fund to the Stormwater and Sanitary Sewer Funds. The fee is 5% of total revenues in those funds but 3% is transferred to the Street Fund to support work in the ROW.
3.) Transfer to reserve in the Development Projects Fund 420 to fund projects listed as needed in the City's ADA transition plan.
4.) Transfer to a reserve in the Vehicle and Equipment Fund 713 to save for building maintenance and preservation projects at City owned buildings.
5.) Transfer to Special Revenue Fund of Tech Fee Reserve, Library grant award and CMO special events budget.
6.) Transfer to Development Assessment Capital Fund for BOARD software purchase.
Attachment 1, Page 1 of 1
Ambulance Fund Five Year Forecast
Refresh Date: 1.12.21
Actual Actual Actual Actual FCST FCST FCST FCST FCST FCST
FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26
Total Operating Revenue 6,030,814$ 5,440,704$ 6,219,367$ 6,232,684$ 5,946,925$ 5,972,125$ 6,081,138$ 6,193,295$ 6,306,008$ 6,421,045$
Expenditures
Personal Services 4,091,109 4,212,050 4,506,811 4,210,271 4,121,722 4,246,411 4,410,968 4,606,103 4,757,358 4,929,466
Material & Services 1,912,503 1,872,406 2,035,920 2,402,122 2,560,550 2,521,458 2,583,911 2,647,660 2,713,490 2,780,796
Total Expenditures 6,003,612 6,084,456 6,542,731 6,612,393 6,682,272 6,767,870 6,994,879 7,253,763 7,470,849 7,710,262
27,202 (643,752) (323,364) (379,709) (735,347) (795,745) (913,741) (1,060,468) (1,164,840) (1,289,217)
Beginning Cash 2,328,191 2,355,393 1,711,641 1,388,277 1,008,567 273,220 (522,525)(1,436,266)(2,496,734)(3,661,574)
Ending Cash 2,355,393$ 1,711,641$ 1,388,277$ 1,008,567$ 273,220$ (522,525)$ (1,436,266)$ (2,496,734)$ (3,661,574)$ (4,950,791)$
39%28%21%15%4%-8%-21%-34%-49%-64%
Change in Net Position
Ending Cash as a Percent of
Operating Expenses
Attachment 2, Page 1 of 1
FY22 General Fund Reduction Proposal
Description
Proposed
Reduction
City Manager's Office
FTE Reallocation 100,000$
Finance & Courts
Personnel and M&S Reduction 80,000
Information Technology
Personnel and M&S Reduction 100,000
Police
Community Service Officer (currently vacant) - permanent reduction 100,000
Records Specialist (currently vacant) - permanent reduction 90,000
SUBTOTAL 190,000
TOTAL 470,000$
Attachment 3, Page 1 of 1