TITLE
Recommendation to receive and file the Fiscal Year 2023 (FY 23) Mid-Year Budget Performance Report providing an update on the City of Long Beach’s FY 23 financial status and projections and adjust appropriations in departments to reflect the funding where programs will be managed. (Citywide)
DISCUSSION
Overall Summary
This report includes information on the City of Long Beach’s (City) FY 23 budget performance through March 31, 2023 for all funds and provides FY 23 year-end estimates of expenditures based on department analysis of data for the first quarter of the fiscal year (the most recent available expenditure analysis). Year-end estimates of revenues incorporate the most recent actuals and analysis. The attachments show actual budget performance through March 31, 2023. Final year-end results (scheduled to be brought to the City Council in February 2024) may differ significantly due to the range of potential outcomes.
The FY 23 Budget for the General Fund was adopted in September 2022 projecting a $19.6 million structural shortfall, inclusive of an $8.5 million revenue loss related to the Measure M litigation, as well as $8.9 million of one-time uses. The funding gap for these structural and one-time uses was slated to be covered with funds made available through the Long Beach Recovery Act (Securing our City’s Future) and other reserves set aside for this purpose.
In March 2023, a fiscal outlook update projected a significant revenue update eliminating the impact of the pandemic on the forecast and improving the revenue projections by $40.1 million for FY 24 and each year beyond. This report reflects the same improvement for the current fiscal year. As a result of that update, combined with continued significant vacancy savings reflected in department expenditure year-end estimates, the General Fund is now projected to end FY 23 with an operating surplus of $20.5 million. A majority of these funds are proposed to be allocated for potential, cri...
Click here for full text