CITY MANAGER’S BUDGET MESSAGE
Improvement District (HID) will also be shifted to stay within the City and administered by a new HID Board to provide economic development services and attract more people to Irvine.
General Fund Expenditures The General Fund expenditures budget in FY 2023-24 is at $253.5 million, a $18.5 million, or 7.9 percent increase from the FY 2022-23 Adjusted Budget of $235 million (after removing one-time prior year surplus adjustments). The City faces the challenge of rising costs due to inflation and cost of services as we remain vigilant in enhancing and maintaining the high-quality of services for the community. The City implemented a reorganization plan to emphasize capital project delivery, sustainability efforts, and health/wellness activities throughout Irvine.
Salaries & Benefits are the heart of the City as it equates to the essential services we provide to residents and businesses in Irvine. In FY 2023-24, Salaries & Benefits (including Overtime) represents 65.5 percent of the General Fund expenditures with a budgeted cost of $166.1 million. The increases include the latest Memorandum of Understanding (MOU) agreements with the City’s labor groups and citywide enhancements by upgrading 14 positions from Part-Time to Full-Time. The upgraded positions are driven by the City’s growth and serve in the following areas: traffic improvements, facilities maintenance, public outreach, community engagement, recruitment, youth outreach, recreation, special events, athletics, disability services, and the Animal Care Center. We also added 7 new Full-Time positions for Public Safety, emergency services, Great Park support, and economic development. The City also continues to make additional payments to CalPERS to lower future pension costs. In FY 2023-24, Contract Services are budgeted at $31.3 million, an increase of $5.8 million, or 22.6 percent, from the FY 2022-23 Adjusted Budget of $25.5 million. Increasing costs of construction, labor, and materials have resulted in higher expenditures in contracts, especially in the City’s largest contracts, such as streets, landscape, and facilities maintenance services. The increase in Contract Services for the General Fund are also attributed to reallocation of facilities rehabilitation services from Special Funds to the General Fund as previous one-time revenues are no longer available. Supplies & Training are based on the need to run and operate the City, and to invest in City staff and development in-order to continue to provide the high-quality level of services in Irvine. The majority of other expenditures is from Internal Services, w hich are key internal services to support the City’s departments, such as information technology, mail services, duplicating services, facility operations, and
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FY 2023-25 Adopted Budget
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