Recommended Budget for Fiscal Year 2023
Fiscal Year 2023 Operating and Capital Budget
FY2023 Net Budget All Funds
The FY2023 net budget is $1,866,159,515. This represents a $64.1 million net increase from the FY2022 budget of $1,802,092,727 mainly due to:
- The General Fund increased approximately $65.5 million primarily due to increased personnel costs from negotiated labor contracts and higher benefit costs. Additional staff were added for administration and maintenance. Funds were added for fire safety gear, emergency rescue equipment, police equipment, and citywide technology improvements. The increase in the General Fund also includes the additional required contribution of $9.2 million to the community redevelopment areas.
- The Enterprise Funds increased by $146.3 million primarily due to increased personnel costs from negotiated labor contracts, and higher benefit costs; and expanding the Solid Waste capital project program funding over FY2022.
- The Special Revenue, Capital Projects and Trust & Agency Funds decreased by <$136.7> million from FY2022 primarily due to the loss of federal American Rescue Plan Act funding, transportation grants, and All For Transportation tax funds being offset by an increase in the community redevelopment agencies capital project programs.
- Other Funds overall decreased by <$11.0> million from FY2022 due to changes within the Debt Service and Internal Service funds. Debt Service funds decreased by a net <$21.3 > due to reductions related to refunding of Non-Ad Valorem and repayment of Downtown CRA bank notes being offset by issuance of Stormwater special assessment bonds and higher Utility Tax revenue bond payments. Internal Service funds increased by $10.3 million primarily due to higher fuel costs and additional vehicle funding within the Fleet Maintenance funds.
General Fund
The General Fund supports public safety, general government operations, parks and recreation, economic development programs and other non-enterprise related operations. Revenues such as property taxes, utilities services taxes, sales tax, electric franchise fees, communication services taxes and other revenues are used to pay for these programs. The General Fund increase of approximately $65.5 million is primarily due to increased personnel costs from negotiated labor contracts and higher benefit costs. Additional staff were added for administration and maintenance. Funds were added for fire safety gear, emergency rescue equipment, police equipment, and citywide technology improvements. The increase in the General Fund also includes the additional required contribution of approximately $9.2 million to the community redevelopment area trust funds. The General Fund expenditure increases are primarily supported by the FY2023 increase in property tax and half-cent sales tax revenue.
FY2023 General Fund Net Budget
Utilities Services Tax Fund
The City collects taxes levied on communications and utilities and uses these funds for general government operations, capital equipment and vehicles, capital projects, and debt service.
FY2023 Utilities Services Tax Fund Net Budget
General and Utilities Services Tax Fund Balance
The City has established a policy of maintaining a minimum fund balance amount equal to at least 20% of the budget for the combined General Fund and Utilities Services Tax Fund. A healthy fund balance greatly impacts whether the City receives favorable bond ratings which reduce interest costs on debt issued by the City. For the 16th consecutive year, the City has maintained a fund balance greater than the minimum 20% policy requirement.
FY2023 Other Governmental Funds Net Budget
Other Governmental Funds are used to support capital improvement programs, transportation operations, stormwater operations, economic development programs, and other operations. Revenues such as community investment taxes, local option fuel taxes, construction permitting fees, stormwater assessments and other revenues are used to pay for these programs. The FY2023 Other Governmental Fund net budget is $325.6 million, a decrease of <$136.7> million from the FY2022 budget. Increases to the Construction Services, Stormwater and Transportation Operation Funds for personnel costs related to negotiated labor contracts, increased pension contributions, health insurance expenses and other benefits; additional spending on technology improvements, and Community Redevelopment Agencies capital projects programs were offset by the losses of American Rescue Plan Act funding, transportation grants, and All For Transportation tax funding.
Enterprise Funds
The Enterprise Funds are comprised of the Water, Wastewater, and Solid Waste Departments, the Parking Division, and Golf Courses. The Enterprise Funds FY2023 net budget is $882.1 million, an increase of $146.3 million over the FY2022 budget. This is due to increases in Water and Solid Waste Departments operating funds and Solid Waste Department capital project spending.
Water fees are used to cover the costs associated with providing safe drinking water which includes planning, construction, operation and maintenance of the City’s water management systems. Water program increase of $33.6 million in FY2023 over FY2022 is primarily due to increased personnel costs related to negotiated labor contracts, higher benefit costs, higher water treatment costs; additional funding for new and replacement vehicles and equipment; debt service payments related to bonds supporting the capital improvement program; and a transfer to reserves.
Wastewater fees are used to cover the costs associated with providing sanitary sewer services including the planning, construction, operation and maintenance of the City’s wastewater systems. Wastewater program decrease of <$1.8> million in FY2023 from FY2022 is primarily due to higher personnel costs related to negotiated labor contracts, higher benefit costs, higher wastewater treatment costs; additional funding for new and replacement vehicles and equipment; and higher debt service payments; being offset by a reduced transfer to reserves.
Solid waste fees are used to cover the costs associated with providing collection and disposal of garbage, refuse and solid waste. Solid Waste program increase of $108.0 million in FY2023 over FY2022 is primarily due to higher personnel costs related to negotiated labor contracts, higher benefit costs, higher landfill costs; additional funding for new and replacement vehicles and equipment; and additional capital project funding for the McKay Bay Waste-To-Energy facility improvements, Solid Waste headquarters, and fleet facility relocation.
Parking fees are used to cover the costs associated with the planning, construction, operation and maintenance of the City’s parking assets. Parking increase of $6.0 million in FY2023 over FY2022 is primarily due to higher personnel costs related to negotiated labor contracts, pension contributions, higher benefit costs, increased spending on maintenance contracts and contractual parking agreements; and a transfer to reserves.
Golf course fees are used to cover the costs associated with operating the City's three municipal golf courses. Golf Course increase of $0.4 million is due to an increase in operations.
Other includes other departmental program costs budgeted within the Water and Solid Waste funds.