Title
Budget Workshop for Fiscal Year 2024-25 Proposed Mid-Cycle Budget Update to Provide Direction on Funding Changes that Will Be Incorporated into Midcycle Budget Adoption Materials for City Council Consideration on June 18, 2024. [City Council/SACIC] (Finance 10024054)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
This Mid-Cycle Budget Update incorporates funding updates and departmental proposals for changes in service levels for fiscal year (FY) 2024-25 since the FY 2023-25 Biennial Budget was adopted by City Council in June 2023. The City Manager is proposing a General Fund budget of $144.57 million in FY 2024-25. The total proposed budget for all funds is $324.43 million and includes funding for 3 new positions.
Staff is seeking direction from the City Council on these proposed service level and workforce changes, and other funding changes in order to align the City’s spending plan for FY 2024-25 with the City Council’s strategic plan priorities.
BACKGROUND
On June 20, 2023, City Council approved Resolution No. 61060 which adopted the FYs 2023-25 Biennial Budget. On February 20, 2024, City Council adopted Resolution No. 16135 which adopted midyear changes to the FY 2023-24 budget, some of which resulted in ongoing expenditure impacts to future budgets. Those impacts are incorporated in the FY 2024-25 Adjusted Baseline Budget.
The budget workshop on May 21, 2024, provides City Council and the community an opportunity to discuss the factors that make up the overall City budget and consider proposals for changes in service levels and capital improvements.
During the workshop, staff will provide highlights of the Proposed Mid-Cycle Budget and answer questions on budget projections and departmental funding changes that are outside of the Adjusted Baseline Budget estimates. City Council may also provide direction to staff on funding changes to incorporate into the FY 2024-25 budget to be considered for adoption in June 2024. Additionally, staff seeks City Council direction on the inclusion of a number of major one-time expenditures for capital projects, equipment and a CalPERS unfunded liability payment that are not included in the Proposed FY 2024-25 Midcycle Budget .
The proposed FY 2024-25 budget aligns with the City’s FY 2023-26 Strategic Plan priority, Practice Fiscally Responsible, Equitable and Inclusive Governance. As part of the Strategic Plan monitoring, the Annual Progress Report is also attached as Exhibit 3 and provides a status report of each project in the Strategic Plan with modifications to schedules, as needed, and one new project based on a City Council referral.
DISCUSSION
The Proposed FY 2024-25 Mid-Cycle Budget provides the City Council with an update to the Adjusted Baseline Budget, which includes updated revenue projections for the General Fund and Special Revenue Funds as well as necessary expenditure adjustments. Additionally, the proposed Midcycle Budget includes funding requests submitted by departments and funding changes recommended by the City Manager in order to maintain existing services, control future obligations, and align spending with City Council’s strategic priorities to:
1. Enhance Community Safety & Services
2. Build Resilience to Climate Change & Water Level Rise
3. Invest in Alameda’s Transportation, Infrastructure and Economy
4. House All Alamedans and End Homelessness
5. Practice Fiscally Responsible, Equitable and Inclusive Governance
The FY 2024-25 Adjusted Baseline Budget incorporates $2.32 million of expenditure changes to the FY 2024-25 Baseline Budget based on amendments adopted for the FY 2023-24 Midyear Budget as well as necessary personnel adjustments, technical corrections, cost allocation adjustments, and $5.70 million of anticipated revenue adjustments that include increases for fees for services, taxes and one-time transfers into the General Fund from other funds. (Exhibit 1, See Subtotal Revenue Adjustments and Subtotal Expenditure Adjustments)
When City Council adopted the FY 2024-25 General Fund Budget, the Budget contained a forecasted use of $6.05 million of residual fund balance to fund a variety of one-time operating and capital expenditures. (Table 1)
Table 1- General Fund
|
Fiscal Year 2024-25 |
Expenditures |
Revenues |
Budgeted Use of Fund Balance |
|
Baseline Budget (approved June 2023) |
$140.33 |
$134.28 |
($6.05) |
|
Adjusted Baseline Budget |
$142.65 |
$139.97 |
($2.68) |
As reflected in Table 1 above, the General Fund Adjusted Baseline Budget, reduces reliance on use of residual fund balance to $2.68 million, of which $1.39 million is a necessary technical adjustment of FY 2022-23 miscategorized revenues received from the Monsanto class action lawsuit settlement. These revenues must be removed from the General Fund fund balance and transferred to the Stormwater Fund (Fund 264), for use on green infrastructure improvements in the public right-of-way/transportation safety improvement projects.
The General Fund is projected to begin the 2024-25 fiscal year with a residual fund balance of $29.34 million. This starting residual fund balance already excludes the following two approved appropriations:
1. $6.05 million use of fund balance adopted as part of the June 20, 2023 Biennial Budget adoption; and
2. $15 million assigned for construction of the Aquatic Center.
As reflected in Table 2 below, available residual funds can change from year-to-year depending upon local economic conditions. The dramatic increase in FYs 2020-22 is due in large part to historical staffing vacancies in Public Safety and significant increases in General Fund revenues derived from property transfer taxes. For example, in FY 2021-22, the City received $21 million in transfer taxes, while in FY 2022-23 the City received $11.11 million.
Table 2
City Council has previously authorized use of General Fund residual fund balance for critical City infrastructure, equipment and capital projects including street safety improvements (Resolution No. 16087, $2 million), improvements to the Civic Center parking garage ($1 million), city facilities improvements ($5.61 million), construction of an Aquatic Center ($15 million), and various public safety equipment purchases ($1.5 million). These expenditures are already accounted for in the total General Fund residual fund balance of $29.34 million.
It is important to note that residual fund balance is separate from the City’s policy mandated General Fund reserves that currently totals $39.08 million and is available for use in the event of a catastrophic emergency.
Since adoption of the FY 2023-25 Biennial Budget in June 2023, economic headwinds have impacted some General Fund ongoing revenue categories, specifically property transfer tax (-$2 million) and sales and use taxes (-$0.56 million), and slowed the growth of others, namely sales and property taxes. (Table 3) These revenue declines were also addressed at the FY 2023-24 Midyear Budget adoption.
Table 3
Unfortunately declines in these revenue categories and a lack of growth in others are forecasted to continue through FY 2024-25, resulting in a minor structural imbalance of $782,000 for the FY 2024-25 Adjusted Baseline Budget. (Table 4)
Table 4
The FY 2024-25 Midcycle Budget revenue decline is largely due to the impact of current interest rates on mortgages, construction and auto loans. The largest decline is seen in Property Transfer Tax and Sales & Use Taxes, which result in a combined total -$2.56 million. The proposed FY 2024-25 Midcycle Budget changes will increase the structural imbalance to -$2.45 million, which is less than the current decline in the ongoing revenues affected by these economic impacts. The City has sufficient residual fund balance to weather this economic downturn and preserve existing services in the near-term, carrying the imbalance through FY 2024-25 without a need to tap General Fund 25% policy reserves or cut existing service levels.
Overall, General Fund revenues are expected to increase by 4.24% in FY 2024-25 from the June 2023 Biennial Budget forecast, while General Fund expenditures are expected to increase by 2.32% in FY 2024-25 above the Adjusted Budget.
I. General Fund Revenues
For FY 2024-25, the General Fund is forecasted to have a starting residual fund balance (RFB) of $29.34 million, which is in addition to policy reserves of $39.08 million. The starting RFB is net of reserves required by policy and previously approved adopted use of fund balance. FY 2024-25 General Fund revenues, including transfers-in, are estimated to increase by $5.07 million, from the previous projection of $134.28 million, to $139.97 million (Exhibit 1, Budget Summary). Of this increase $4.44 million is ongoing revenue and $1.25 million is considered one-time. Property tax is the City’s largest source of General Fund revenue and is experiencing a slow-down in growth when compared to growth rates from previous years due to fewer property transfers in both residential and commercial real property markets. This impact is also resulting in sharp reductions in the City’s property transfer tax. Sales tax (1% Bradley-Burns) is reflecting flat growth, while the City’s transaction and use tax (Measure F) is experiencing significant negative growth.
To maintain service delivery of General Fund funded programs, such as emergency response services and recreation programs, the Proposed Midcycle Budget incorporates proposed changes to the City’s Master Fee Schedule (File No. 2024-4013). If increases to Master Fee Schedule General Fund fees are not adopted, City Council will need to direct staff to return with proposed General Fund program reductions in the proposed budget expenditures or require additional use of the General Fund reserve.
Expectations for General Fund revenues in FY 2024-25 are summarized below and in Exhibit 1 to this staff report:
A2 Property tax is approximately 44.37% of General Fund revenues. Property tax is forecasted to increase by an estimated 4.44% from the FY 2023-24 projection of $59.09 million to $61.07 million in FY 2022-23.
A3 Property transfer tax (PTT) is estimated at $11 million, a decrease of $2 million from the adopted budget of $13 million. Although actual PTT receipts have ranged from $15.2 to $21 million in previous fiscal years, the fluctuation in revenues was due to the sale of large commercial properties. By its nature, revenues derived from the PTT are volatile and cannot in totality be considered ongoing revenues, thus must be forecasted and budgeted prudently. City Council may want to consider a policy defining excess property transfer tax revenues and their subsequent allowable expenditures.
A4 Sales and use tax revenues are dependent on consumer spending and on overall economic health. Sales tax is forecasted to remain relatively flat (no growth) through FY 2024-25, while the City’s transaction and use tax (TUT) is experiencing a decline and the forecast will be reduced $0.50 million. The reduction in both tax categories is due to reduced construction activity. The TUT reduction is largely due to a reduction in auto purchases and construction activity within the City.
A5 Transient occupancy tax (TOT) is forecasted to increase $0.10 million to $3.4 million in FY 2024-25.
A6 Utility user tax (UUT) is generated on use of cable television, telephone services, natural gas, and electricity. UUT is expected to increase from $9.21 to $9.75 million in FY 2024-25.
A7 Business license tax is forecasted to increase $0.25 million to $3.01 million due to improved collection efforts.
A8 Solid Waste Franchise, $197,000 technical correction to match actual billing according to the solid waste franchise agreement.
A9 Transfer in remaining fund balance of $453,101 from the FISC Fund (Fund 241).
A10 The impact of ongoing revenue adjustments of $123,000 at FY 2023-24 Midyear Adoption.
A11-13 Forecasted $1,680,400 increase in revenue collections from fee increases for allowable charges for ambulance transport services ($1.6 million), increased safety inspections, and enhanced collection activity.
A14 Plan check revenue and expenditures ($45,000) are being moved out of the General Fund and into the Planning, Building & Transportation Fund (Fund 209).
A15 Transfer of $1.55 million from Public Provider Ground Emergency Medical Transportation (PPGEMT) Fund (Fund 225) to offset Fire Department Expenditures.
A16 Forecasted increase of $791,000 in revenue received from recreation fees, based on projected services levels and proposed increased swim lesson fees that are comparable to other local swim lesson fees.
II. Expenditures
The information below describes the additional expenditures recommended by the City Manager and included in the FY 2024-25 Proposed Midcycle Budget across all funds, as shown in Exhibit 1 and categorized as follows:
• C1-C12 General Fund Workforce Changes, totaling $612,814
• C13-C24 Recreation & Parks General Fund requests, totaling $885,454
• C25-C31 One-time General Fund requests that may be reconsidered as
ongoing when the economy recovers, totaling $767,554
• C32-C41 All other General Fund requests, totaling $1,041,620
• D1-D50 Special Funds Requests
As described above, the amount of General Fund reserve needed between the FY 2024-25 Baseline Budget amount of $6.05 million adopted by City Council in June 2023 and the Adjusted Baseline Budget decreased by $3.37 million resulting in an adjusted use of reserves of $2.68 million, detailed on Page 1 of Exhibit 1 and summarized in Table 1 above. As part of the FY 2024-25 Proposed Midcycle Budget, staff is requesting an additional net use of reserves of $3.3 million in order to maintain existing service levels and prioritize community needs through the coming fiscal year, detailed on pages 2 and 3 of Exhibit 1. This results in the use of $5.98 million in General Fund reserve for the FY 2024-25 Proposed Midcycle Budget slightly less than what was needed in the adopted FY 2024-25 Baseline Budget.
Workforce Changes - General Fund Expenditures
Staff are recommending the addition of three new positions, the downgrade or deletion of two positions and the conversion and upgrade of six positions. New positions are requested in City Attorney’s Office, Recreation and Parks (ARPD), Public Works, and Information Technology (IT) departments. Details are in both Exhibit 1 and 2.
C1 $14,000 City Attorney Investigator position to the Rent Program.
The City Attorney’s Office is proposing to convert an existing part-time position to a full-time Investigator position for the Rent Program. This request assumes a January 1 start date and offsetting use of part-time pay. The position is anticipated to cost $130,653 fully loaded across all funding sources. This position funding will be allocated 60% Rent Review and Stabilization Fund (Fund 207), 15% General Liability Fund (Fund 611), 5% Worker Compensation Fund (Fund 610) and 20% General Fund. This will be a new classification which will perform duties that are currently performed by part-time employees. Converting the position from part-time to full-time will ensure that there is a consistent workforce to complete the work needed to support the Rent Program and other functions. The function is currently being performed by a part-time employee working a full-time work load. Continued utilization of part-time resources for work that meets or exceeds full-time work load is undesirable. Discontinuation or reduction of this function could lead to cost increase associated with paying outside vendors to perform the function.
C2 & C3 $29,455 Administrative staff reorganization for the City Manager’s Office and adding a full-time Information Technology (IT) Department Executive Assistant
The City Manager’s Office (CMO) proposes to reorganize staffing by upgrading one executive assistant to a principal executive assistant and downgrading one executive assistant to an office assistant. Additionally, one CMO executive assistant currently performs IT administrative work with associated position funding from the IT Fund (Fund 606). This funding and workload are proposed to be fully moved to the IT Fund to create a full-time executive assistant for the IT Department. This creates efficiencies for the entire IT Department so other IT staff can focus their time on IT tasks, rather than administrative work.
C4 & C5 $375,000 Net adjustment to vacancy savings citywide and in the Police Department.
As was the case during the FY 2023-24 Midyear budget, there is a need to further reduce vacancy savings in the police department by $600,000 due to successful hiring efforts, which will be partially offset by a $300,000 increase in city-wide General Fund vacancy savings.
C6 & C7 $178,945 Upgrades to existing positions in the Police Department.
In an effort to improve span of control and curb the need for future overtime increases that will burden the General Fund, staff proposes upgrading one police lieutenant to a captain, and three sergeants to three lieutenants.
C8 $69,068 Upgrade one Admin Services Coordinator to an ADA Coordinator. Public Works is requesting to upgrade an Administrative Services Coordinator to an ADA Coordinator. This position will be housed in the Facilities Maintenance Fund (Fund 603), with the General Fund bearing $69,068 in ongoing expenses, and will address projects and services identified in the City’s ADA Transition Plan.
In addition, Public Works is requesting upgrade of one Senior Clerk to an Administrative Technician II as the result of a classification Study.
C9 - C12 $53,644 net savings to the General Fund for Recreation and Parks position changes.
Recreation and Parks is requesting to upgrade an existing Recreation Services Manager to an Assistant Recreation and Parks Director to improve recruitment opportunities and the quality of the candidate pool. The Department is also requesting to add two Recreation Assistant positions and offsetting the cost by downgrading one vacant Recreation Services Specialist position and reducing the part-time budget.
The proposed position allocation by department is below:
Table 5
General Fund Operations and Maintenance (O&M)
Recreation & Parks
C13-C24 Total increase of $884,454 offset by $791,000 in ongoing revenues for the Recreation and Parks Department
The $884,454 increase includes $779,580 ongoing and $105,874 one-time General Fund expenses. Staff is requesting an increase of $453,250 for the aquatics program due to increased programming offered to the community and the impact of providing all aquatic programs at Encinal High Swim Center while the Alameda High School Swim Center is closed for renovation. This increased programming cost is offset by additional revenues. In addition, park restrooms are currently cleaned by contractors and for efficiency and improved service, Recreation and Parks staff is proposing for Parks Maintenance staff to resume that service. This results in an increase of $122,200 to part-time pay and janitorial supplies which is offset by a $55,000 reduction in the department’s cost allocation to the Facilities Maintenance Fund. Additionally, there is a need to correct the budget for utilities, as well as one-time requests for additional staff training, and payments to Alameda Unified School District for Encinal High Swim Center access and utilities.
One-time Departmental Service Changes
C25 $200,000 - Base Reuse and Economic Development (BRED)
To continue the Special Event Grants program for one more pilot year. This program funds permit fees and costs for city staff time for non-profit organizations’ special events.
C26 $47,563 - City Attorney’s Office
Increase in the General Fund personnel budget for staff part-time. This increase is balanced by reductions in part-time expenditures in the General Liability category, and reflects redeployment of part time resources from general liability to prosecution to meet current needs.
C27 $50,000 - City Manager’s Office - Housing and Human Services Division
To fund extended days for the 2024-25 winter warming shelter.
C28 $185,000 - City Manager’s Office - Housing and Human Services Division
Funding for a homelessness prevention services pilot program for including part-time case management staff.
C29 $185,554 - City Manager’s Office
Additional funds to maintain services at the Alameda Animal Shelter.
C30 $25,000 - Fire Department
Additional mental health services for Fire Department staff.
C31 $74,437 - Public Works (General Fund portion)
Increased Fleet Maintenance allocation for collision repair for uninsured motorists.
Other O&M Changes
C32 $200,000 - City Attorney
Transfer to the Golf Fund for ongoing litigation expenses.
C33 $185,700 - City Attorney
Increase the cost allocation in Worker Compensation and General Liability Funds principally due to increases in city-wide insurance rates. While all insurance rates are appreciably increasing, the greatest two contributors to such increases are the City's Property and General Liability insurance lines. The anticipated increases are consistent with general insurance market conditions. The proposed amounts are best estimates based on current conditions and preliminary rate estimates. The City could not officially bind its coverages until late June.
C34 $25,000 - Fire Department
Professional services increase for improved data analytics application. The Analyst Application can interface with AFD’s Computer Aided Dispatch (CAD) system, Electronic Healthcare Reporting (EHR) system, and the Department's Fire Records Management System (RMS) platform. It will update data automatically so that it is always current and presented in an intuitive and easy-to-use interface for expanded utilization by all AFD Supervisors and Managers.
C35 $43,820 - Fire Department
Necessary increase for dispatch services provided by Alameda County. The Alameda Fire Department contracts with the Alameda County Regional Emergency Communication Center (ACRECC) to provide Fire dispatch services, Emergency Medical triaging, and pre-arrival instructions for Alameda residents. The FY 2023-25 budget provided to the City by ACRECC reflects a cost-of-service increase of $43,820 above AFD’s existing budget.
C36 $240,000 - Fire Department
One-time increase in overtime for training.
C37 $22,000 - Fire Department
Ongoing request to increase part-time pay for fire inspection. This request is tied to offsetting revenue generation of $62,200 (Revenue item A12 above)
C38 $150,000 - Fire Department
Upgrades to the Accela inspection software. This request will maximize the software and improve inspection efficiencies.
C39 $165,000 - Police Department
One-time increase for improvements at the Police Administration Building. The Police Department Administration building needs flooring replacement and new paint. The new flooring and paint will provide a sanitary and easily cleanable surface.
C40 & C41 $10,100 - Planning, Building and Transportation
Ongoing request for professional development and training for the Sustainability Division and to fund CASA (Community Action for a Sustainable Alameda) interns.
Requested Budget Changes - Special Funds
D1 & D2 Aggregate $69,296 Fund 207 Rent Stabilization
Staff is forecasting an increase in revenue of $111,500, which will help offset the partial cost of $42,204 for the requested Investigator position discussed in the Workforce section above.
D3 & D4 Aggregate $93,757 Fund 209 Planning, Building and Transportation
Staff proposes transferring 0.50 FTE to the Alameda Point Fund (Fund 290) and accepting reassignment of both revenues and expenditures for Fire Department plan checks from the General Fund.
D5 - D6 Aggregate $90,361 Fund 211 Gas Tax
Staff is requesting a transfer out to the CIP (310) for the Vision Zero action plan and funding for the reclass and upgrade of Admin Services Coordinator and Administrative Technician mention above in the workforce section above (C8).
D7 - D8 Aggregate $125,000 Fund 250 Golf
Increasing the revenue forecast by $175,000 for revenues received from activities at the golf course and proposing a one-time transfer in from the General Fund of $200,000, which will be used to offset an anticipated increase in litigation expenses of $500,000.
D9 & D10 Aggregate $593,000 Fund 261 City Waste
Staff forecasts a $50,000 increase in revenues to help offset a requested transfer of $643,000 transfer to the CIP (310) for Pavement Rehabilitation.
D13 $1,385,516 Fund 264 Stormwater
A necessary technical adjustment of FY 2022-23 miscategorized revenues received from the Monsanto class action PCB lawsuit settlement. These revenues need to be removed from General Fund fund balance and transferred to the Stormwater Fund for use on green infrastructure improvements in the public right-of-way/transportation safety improvement projects.
D14 & D15 Aggregate $7,000 Fund 281 CFD 17-1
Staff is adjusting the special assessment revenue forecast $50,000 and proposing expenditure increases of $57,000 for transportation demand management and landscaping.
D16 - D21 Aggregate $3,308,743 Fund 290 Alameda Point
Staff is proposing increasing the revenue forecast by $4 million and an expenditure decrease of $94,500, which will offset proposed acceptance of a 0.5 FTE planner ($93,757), a requested increase of $500,000 for litigation expenses, and $192,000 for tree maintenance.
D22 $200,000 Fund 305 DIF Transportation
Staff is proposing transferring $200,000 to CIP (310) for work on the Vision Zero Action plan.
D23 - D30 Aggregate $146,066 Fund 301 Capital Improvement Projects
Staff is proposing acceptance of transfers-in from other funds that were noted throughout this report and additional expenditures for the following capital improvement projects:
• $909,647 previously appropriated General Fund funds, move funding from the FY 2023-24 Fire Department Operating budget for hydrant replacements ($225,000), required upgrades to fire station alerting system ($478,000), and the Fire Station 3 memorial ($206,647) to the CIP.
• Pavement Rehabilitation ($643,000)
• Vision Zero Action Plan ($500,000)
• Playground repair/replacement at McKinley and Washington Parks ($114,146)
• Day Center and Safe Parking State earmark received in the amount of $1,250,000 that will be used for the program relocation
D31 - D34 Aggregate $988,031 Fund 601 Fleet Maintenance & Replacement
These costs include a one-time increase in interdepartmental charges of $100,000 to offset future repair costs resulting from uninsured motorists, advancing the replacement of an ARPD vehicle and canceling a transfer in from the General Fund of $922,468 to fund the purchase of a fire engine that was advanced to FY 2023-24.
D35 - D37 $38,519 Fund 603 Facilities Maintenance & Replacement
Staff is proposing adjustments to interdepartmental revenues and expenses ($55,000) resulting from ARPD moving janitorial services in-house, an increase in interdepartmental revenues to offset expenditure increase associated with the proposed ADA coordinator position, and an increase in non-general fund expenditures ($38,519)
D38 - D44 Aggregate $391,814 Fund 606 Information Technology (IT)
Staff is proposing several one-time increases, most of which will increase IT Department efficiencies, along with an aggregate expenditure increase of ($66,814) associated with the proposed workforce changes discussed earlier in this report to add an executive assistant to the IT Department and transfer 0.3 FTE from Fund 606 to the General Fund in the City Manager’s Office.
The one-time increases include:
• Additional cabling funding ($25,000)
• Funding for the IT Five-Year Strategic Plan ($100,000)
• SharePoint migration consultant ($75,000)
• Service Desk support consultant ($50,000)
• Temporary part-time service desk technician ($75,000)
D45 & D46 Aggregate $15,021 Fund 610 Worker’s Compensation
Expenditure increases associated with the proposed new Investigator position ($3,521) and an increase to part-time pay ($11,500).
D47 & D50 Aggregate $192,760 Fund 611 General Liability
Expenditure increases associated with the proposed new Investigator position ($10,554) and an associated part-time decrease ($54,500), increase to professional services ($8,800) and increases to insurance premiums ($227,906).
III. Expenditures for Council Consideration that Are Not in the Proposed Midcycle General Fund Budget
Staff identified a number of major items that were raised by City Council, staff and the community that City Council may consider funding with additional use of residual fund balance in FY 2024-25. (Table 6)
|
Table 6 |
(in millions) |
|
Starting Forecasted Residual Fund Balance |
$29.34 |
|
Considered Uses of Residual Fund Balance |
|
|
Day Center and Safe Parking Relocation |
$0.75 |
|
Vision Zero Action Plan General Fund Support |
$0.25 |
|
McKinley & Washington Park Playground Repair |
$0.12 |
|
Additional CalPERS Unfunded Liability Payment |
$3.00 |
|
Sweeney Railroad Building Repair |
$0.19 |
|
New Turn-Out Gear for Fire Fighters |
$0.25 |
|
Sidewalk Repairs |
$2.00 |
|
Subtotal Use of Residual Fund Balance |
$6.56 |
|
|
|
|
Remaining Forecasted Residual Fund Balance |
$22.78 |
Project Descriptions:
Day Center and Safe Parking Relocation - The existing site is located within the RESHAP development and will be demolished. Staff identify two potential sites for relocation at Alameda Point and will utilize the State earmark in the amount of $1.25 million but additional funds are anticipated due to the costly complexities of remediating hazardous materials and improving an old Navy building.
Street Safety / Transportation Improvements - These funds will address concerns raised by Bike Walk Alameda and fund additional work for daylighting, high visibility crosswalks and other street infrastructure. Staff also proposes to reserve $50,000 of the new funding specifically to address resident requests, evaluating SeeClickFix and other requests on a quarterly basis and elevating those with clear and pressing trends or immediate safety concerns for quick action.
McKinley Playground & Washington Park Repairs - These were unanticipated repairs to rebuild McKinley Park Playground due to a tree that fell and destroyed it during a storm plus a vehicle that ran into Washington Park, which required facility repairs.
Sweeney Railroad Building Repair - This project will repair the fire damage on the railroad building at Jean Sweeney Open Space Park as well as making the building more weather resistant, so it remains in good shape for future development. This includes replacing the roof and repairing walls and other damage.
New Turn-Out Gear for Firefighters - In recent studies, PFAS has been linked to causing negative health effects and is used in existing firefighter turn-outs gear as a fire-resistant compound. New turn-out gear is now available that does not include PFAS and is recommended for the safety of firefighters.
Sidewalk Repairs - Safe, accessible, and well-maintained sidewalks are fundamental to mobility, accessibility, and a healthy community. The proposed investment in sidewalks will quickly be deployed to address tripping hazards citywide. In addition, although the Alameda Municipal Code (AMC) identifies the adjacent property owner as being responsible for maintaining the sidewalk, curb, gutter, and driveway approaches, the City’s long-standing practice is to repair sidewalk damaged by street trees. The proposed investment will also go towards constructing solutions where there are street tree and sidewalk conflicts.
ALTERNATIVES
• Provide direction regarding staff recommendations on the proposed FY 2024-25 Mid-Cycle Budget. The City Council’s direction will be incorporated into the proposed budget for the City Council’s consideration and adoption planned for June 2024.
• City Council may also direct staff to incorporate into the budget additional uses of General Fund residual fund balance.
• Request additional information from staff.
FINANCIAL IMPACT
There is no impact to the General Fund or other funds as a result of this informational item.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is in conformance with the Alameda Municipal Code and all policy documents.
Receiving this report is in alignment with the City’s FY 2023-26 Strategic Plan under the priority to Practice Fiscally Responsible, Equitable and Inclusive Governance.
ENVIRONMENTAL REVIEW
This activity is not a project and is exempt from the California Environmental Quality Act (CEQA) pursuant to section 15378(b)(4) of the CEQA guidelines, because it involves governmental fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
CLIMATE IMPACT
There are no climate impacts associated with this action. City Council may provide direction to staff on funding priorities for implementation of the Climate Action and Resiliency Plan as part of the budget workshops.
RECOMMENDATION
Receive FY 2024-25 Proposed Mid-Cycle Budget report and provide direction to staff in preparation for the adoption of the Mid-Cycle Budget update planned for June 2024.
Respectfully submitted,
Margaret L. O’Brien, Finance Director
Exhibits:
1. Budget Requests and Recommendations
2. Workforce Change Requests and Recommendations
3. FY 2024-25 Strategic Plan Status Report