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Resolution Number 23-06-20-07 1 RESOLUTION NO. 23-06-20-07 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA ADOPTING THE FISCAL YEAR 2023-24 OPERATING AND CAPITAL IMPROVEMENT BUDGET AND AUTHORIZING EXPENDITURES AND APPROPRIATIONS RELATED THERETO WHEREAS, at its regular meetings on May 2 and 16, 2023, the City Council of the City of San Juan Capistrano held a Budget Workshop to review the recommendations for the Proposed Fiscal Year 2023-24 Operating Budget and the Proposed Seven-Year Capital Improvement Program for Fiscal Years 2023-24 through 2029-30; and, WHEREAS, the Proposed Fiscal Year 2023-24 Operating and Capital Budget are the basis for the financial and economic implementation of the City’s General Plan; and, WHEREAS, the Proposed Fiscal Year 2023-24 Operating and Capital Budget provide for service levels necessary to respond to the needs of the community and which are deemed appropriate by the City Council, and concurrently provides a work force to fill these service needs; and, WHEREAS, the City Council recognizes that the Proposed Fiscal Year 2023- 24 Operating and Capital Budget will require adjustments from time to time, and accordingly, the City Manager is authorized to execute necessary transfers to carry out the scope of services as approved. NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan Capistrano does hereby determine as follows: 1. That the Proposed Fiscal Year 2023-24 Operating and Capital Budget as shown in Exhibit A attached hereto and incorporated by reference herein, after giving effect to any amendments authorized by City Council in the regular City Council meeting held on June 20, 2023, are adopted as follows: 2 Operating Expenditures Capital Expenditures Transfers Between Funds Total General Fund 35,488,422$ 14,428,000$ -$ 49,916,422$ Other Governmental Funds 5,459,183 10,743,594 754,000 16,956,777 Enterprise Funds - - - - Internal Service Funds 7,937,945 100,000 - 8,037,945 Total All City Funds (1)48,885,550$ 25,271,594$ 754,000$ 74,911,144$ Fiscal Year 2023-24 (1) Totals do not include the San Juan Public Financing Authority and San Juan Capistrano Housing Authority (See Exhibit A to the Resolution). 2. That total appropriations for each fund may only be increased or decreased by the City Council by amending the budget, except as provided herein. 3. That the legal level of budgetary control is at the fund level. Budgets may not legally be exceeded at the fund level without appropriate authorization by the City Council. Budgeted amounts for individual classifications within a fund may be exceeded as long as the total annual budget for that fund is not exceeded. 4. That the following controls are hereby placed on the transfers of budgeted funds: a. The City Manager may authorize transfers of funds from account to account within any operating department. b. The City Manager may authorize transfers of funds from department to department within any fund up to $50,000. c. The City Manager may delegate the authority to make budget transfers and adjustments up to $10,000. d. The City Manager may authorize budget adjustments involving offsetting revenues and expenditures; the City Manager may authorize increases in an appropriation for a specific purpose where the appropriation is offset by unbudgeted revenues, which are designated for said specific purpose; the City Manager may authorize year end budget adjustments as may be needed to reflect final allocations of internal service fund expenditures to the various departments. 5. That all appropriations for outstanding encumbrances and projects currently underway and remaining unexpended at June 30, 2023, as approved by the City Manager or his designee, are hereby appropriated to the Fiscal Year 2023-24 Operating Budget. 3 PASSED, APPROVED, AND ADOPTED this 20th day of June 2023. __________________________________ HOWARD HART, MAYOR ATTEST: ___________________________________ MARIA MORRIS, CITY CLERK STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, Maria Morris, appointed City Clerk of the City of San Juan Capistrano, do hereby certify that the foregoing Resolution No. 23-06-20-07 was duly adopted by the City Council of the City of San Juan Capistrano at a Regular meeting thereof, held the 20th day of June 2023, by the following vote: AYES: COUNCIL MEMBERS: Campbell, Taylor, Farias, and Mayor Hart NOES: COUNCIL MEMBERS: Bourne ABSENT: COUNCIL MEMBERS: None ____________________________ MARIA MORRIS, CITY CLERK ProjectedProjectedBeginning Operating CIP Transfers Transfers Proposed EndingBalance Revenues Expenditures Expenditures In Out Reserve Balance7/1/2023 (1)FY 2024 FY 2024 FY 2024 FY 2024 FY 2024 Adjustments 6/30/2024GENERAL FUNDSGeneral FundUnassigned6,452,993$ 38,062,000$ (35,488,422)$ (7,914,000) 754,000$ -$ (1,500,000)$ 366,571$ Reserve - Tuition Reimbursement Program35,000 - - - - - - 35,000 Reserve - Cash Flow5,000,000 - - - - - - 5,000,000 Reserve - Economic Uncertainty10,000,000 - - - - - - 10,000,000 Reserve - Contingency3,500,000 - - - - - 1,500,000 5,000,000 Reserve - Capital/City Hall Project- - - - - - 2,500,000 2,500,000 Reserve - Eastern Open Space Deficit2,500,000 - - - - - (2,500,000) - Reserve - Street Rehabilitation Program6,514,000 - - (6,514,000) - - - - Total General Fund34,001,993 38,062,000 (35,488,422) (14,428,000) 754,000 - - 22,901,571 Parking Maintenance FundAssigned-Parking Maintenance204,646 1,409,000 (1,507,930) - - - - 105,716 Successor Agency to the CRA/Housing Authority Administration Fund Unassigned(55,235) 196,510 (199,920) - - - - (58,645) Farm Operations FundAssigned-Farm Operations921,739 222,000 (74,000) (816,522) - - - 253,217 Eastern Open Space FundAssigned-Eastern Open Space Operations(1,241,776) 480,000 (263,490) - - - - (1,025,266) GENERAL FUNDS - TOTAL33,831,367$ 40,369,510$ (37,533,762)$ (15,244,522)$ 754,000$ -$ -$ 22,176,593$ Special Revenue FundsC&D Forfeited Bonds FundRestricted-Recycling Programs1,325,853$ 25,000$ (256,015)$ -$ -$ -$ -$ 1,094,838$ Road Maintenance and Rehabilitation Account (RMRA)Restricted-Streets and Roads Capital Projects(145,982) 865,000 - (719,000) - - - 18 Certified Access Specialist Program (C.A.S.P.)Restricted-CASP Program22,468 1,000 (8,700) - - - - 14,768 Permanent Local Housing Allocation (PHLA)Restricted-PHLA- 149,000 (148,700) - - - - 300 Systems Development/Ord. 211 FundRestricted-Streets and Roads Capital Projects1,761,430 245,000 - (1,829,621) - - - 176,809 CITY OF SAN JUAN CAPISTRANOFISCAL YEAR 2023/24BUDGET SUMMARYEXHIBIT A - Page 1 of 4 ProjectedProjectedBeginning Operating CIP Transfers Transfers Proposed EndingBalance Revenues Expenditures Expenditures In Out Reserve Balance7/1/2023 (1)FY 2024 FY 2024 FY 2024 FY 2024 FY 2024 Adjustments 6/30/2024CITY OF SAN JUAN CAPISTRANOFISCAL YEAR 2023/24BUDGET SUMMARYPark and Recreation FundRestricted-Parks and Recreation Capital Projects919,349 123,500 - (920,000) - - - 122,849 Drainage FundRestricted-Storm Drain Capital Projects(142,052) 105,000 - - - - - (37,052) Agricultural Preservation FundRestricted-Agricultural Preservation Projects564,478 119,000 - (683,478) - - - - Landscape Maintenance FundRestricted-Landscape Maintenance186,912 140,000 (193,955) - - - - 132,957 CDBG/HOME FundRestricted-Housing Rehabilitation for Low and 317,818 124,000 (294,865) - - - - 146,953 Moderate Income Housing PersonsGas Tax FundRestricted-Street Rehabilitation and Maintenance521,421 1,005,000 - (1,176,379) - (350,000) - 42 CCFP FundDeveloper Contributions for Specific Projects113,133 - - - - - - 113,133 Restricted-Streets and Roads Capital Projects9,907,118 3,079,000 - (550,000) - - - 12,436,118 Total CCFP Fund10,020,251 3,079,000 - (550,000) - - - 12,549,251 S.O.N.G.S. FundRestricted-Emergency Preparedness10,305 147,138 (147,138) - - - - 10,305 AQMD FundRestricted-Mobile Source Emissions Reduction Programs241,594 46,000 (5,000) - - (36,000) - 246,594 Measure M FundRestricted-Streets and Roads Capital Projects849,876 984,000 - (1,833,800) - - - 76 Housing In-Lieu Fee FundNon-Spendable - Noncurrent Receivables4,118,288 4,118,288 Restricted-Affordable Housing 7,234,766 23,000 7,257,766 Total Housing In-Lieu Fund11,353,054 23,000 - - - - - 11,376,054 Local Law Enforcement Grants FundRestricted-Law Enforcement- 161,000 - - - (161,000) - - Park and Open Space Grant FundRestricted-Capital Projects- - - - - - - - Street and Highways Grant FundRestricted-Capital Projects(67,592) 754,200 - (547,200) - (207,000) - (67,592) EXHIBIT A - Page 2 of 4 ProjectedProjectedBeginning Operating CIP Transfers Transfers Proposed EndingBalance Revenues Expenditures Expenditures In Out Reserve Balance7/1/2023 (1)FY 2024 FY 2024 FY 2024 FY 2024 FY 2024 Adjustments 6/30/2024CITY OF SAN JUAN CAPISTRANOFISCAL YEAR 2023/24BUDGET SUMMARYOther Grants FundRestricted-Grants(75,143) 1,342,737 - (1,267,594) - - - - Historic Depiction FundRestricted - Historic Depiction12,470 - - - - - - 12,470 Developer Deposits FundDeveloper Contributions for Specific Projects- 489,370 (489,370) - - - - - SPECIAL REVENUE FUNDS - TOTAL27,676,510$ 9,927,945$ (1,543,743)$ (9,527,072)$ -$ (754,000)$ -$ 25,779,640$ Debt Service FundDebt Service FundRestricted-Debt Service4,012,080$ 1,957,000$ (1,870,100)$ -$ -$ -$ -$ 4,098,980$ Capital Improvement FundsPublic Benefit Contributions FundAssigned - Capital Projects683,788 - - (400,000) - - - 283,788 CAPITAL PROJECTS FUNDS - TOTAL683,788$ -$ -$ (400,000)$ -$ -$ -$ 283,788$ GENERAL GOVERNMENTAL FUNDS - TOTAL66,203,745$ 52,254,455$ (40,947,605)$ (25,171,594)$ 754,000$ (754,000)$ -$ 52,339,001$ ENTERPRISE FUNDSSJC HOUSING AUTHORITYHousing Authority Administration FundUnrestricted Net Position-Available399,002$ 174,100$ (39,775)$ -$ -$ -$ -$ 533,327 Non-Spendable - Noncurrent Receivables & Prepaids5,297,813 - - - - - - 5,297,813 Investment in Capital Assets4,116,417 - - - - - - 4,116,417 Total Housing Authority Administration Fund9,813,232 174,100 (39,775) - - - - 9,947,557 Little Hollywood Rental Housing FundUnrestricted Net Position-Available652,478 280,000 (245,615) - - - - 686,863 Successor Agency Housing Bonds FundRestricted Net Assets-Affordable Housing Projects1,192,680 - - - - - 1,192,680 Non-Spendable - Noncurrent Receivables1,111,945 30,000 - - - - - 1,141,945 2,304,625 30,000 - - - - - 2,334,625 SJC HOUSING AUTHORITY - TOTAL12,770,335$ 484,100$ (285,390)$ -$ -$ -$ -$ 12,969,045$ ENTERPRISE FUNDS - TOTAL12,770,335$ 484,100$ (285,390)$ -$ -$ -$ -$ 12,969,045$ EXHIBIT A - Page 3 of 4 ProjectedProjectedBeginning Operating CIP Transfers Transfers Proposed EndingBalance Revenues Expenditures Expenditures In Out Reserve Balance7/1/2023 (1)FY 2024 FY 2024 FY 2024 FY 2024 FY 2024 Adjustments 6/30/2024CITY OF SAN JUAN CAPISTRANOFISCAL YEAR 2023/24BUDGET SUMMARYINTERNAL SERVICE FUNDSInsurance and Benefits FundUnrestricted Net Assets-Available2,771,682$ 5,556,000$ (5,556,000)$ -$ -$ -$ -$ 2,771,682$ Total Insurance and Benefits Fund2,771,682 5,556,000 (5,556,000) - - - - 2,771,682 Facilities Operations FundUnrestricted Net Position-Available (3)1,394,054 2,201,750 (2,381,945) (100,000) - - - 1,113,859 Unrestricted Net Position - Pension & OPEB Liabilities (2)(437,298) - - - - - - (437,298) Investment in Capital Assets1,677,621 - - - - - - 1,677,621 Total Facilities Operations Fund2,634,377 2,201,750 (2,381,945) (100,000) - - - 2,354,182 INTERNAL SERVICE FUNDS - TOTAL5,406,059$ 7,757,750$ (7,937,945)$ (100,000)$ -$ -$ -$ 5,125,864$ ALL FUNDS - TOTAL84,380,139$ 60,496,305$ (49,170,940)$ (25,271,594)$ 754,000$ (754,000)$ -$ 70,433,910$ Less:San Juan Capistrano Housing Authority 285,390 Total Appropriations Approved by City Council (48,885,550)$ (25,271,594)$ (754,000)$ Notes:(3) The City is required by the Governmental Accounting Standards Board (GASB) to report the unfunded actuarial liability (UAAL) for its pension plans (GASB Statement No. 68) and other-post employment benefits (GASB Statement No. 75). The City's General Fund (and other governmental funds) do not reflect such an amount in this schedule because this accounting and reporting standard is only applicable to the City's Enterprise and Internal Service Funds. The City's governmental funds' (i.e. General Fund, Capital Projects Funds, and Special Revenue Funds) portion of the City's total UAAL as of December 31, 2021 (date of actuarial valuation) was approximately $11.5 million for the City's pension plans and was approximately $3.2 million for the other post employment benefit plan as of July 1, 2021 (date of the actuarial valuation).(3) Available reserves for capital replacement.(1) Beginning fund balance is based on projected balances as of June 30, 2023. EXHIBIT A - Page 4 of 4