City of Cerritos Draft Budget for 2022-23 FY

1. CITY OF CERRITOS SPECIAL MEETING
CITY COUNCIL/SUCCESSOR AGENCY
MAY 16, 2022
Preliminary Combined Financial Program
Fiscal Year 2022-2023
1

2. 2
City of Cerritos - Budget Document Organization
FY 2022-23
1 Introduction & Message
2 Fund Balance Statements
3 Revenues
4 Expenditure Summaries
5 Departmental Budgets
6 Positions and Salaries
7 Capital Improvement Program
8 Successor Agency
9 Appendices
Preliminary
Budget

3. Budget Highlights & Objectives
Fiscal Year 2022-2023
3

4. • Protect the General Fund reserves and
restore all City services
• Manage personnel and operating
expenditures in reopening facilities
• Manage the costs of law enforcement
without reducing crime prevention
• Address City infrastructure needs and
deferred maintenance through the CIP
4
Summary of Budget Objectives
FY 2022-23

5. 5
2021-2022 2021-2022 2022-2023
BUDGET ESTIMATED FORECAST
Revenues 113,861,146 126,873,037 123,954,427
Operations 94,465,971 97,245,685 107,156,590
Capital Improvement Prgm. 18,243,780 25,959,151 14,682,280
Surplus / (Deficit): 1,151,395 3,668,201 2,115,557
Estimated Balance: 114,538,494 123,813,357 129,488,269
City Budget Overview - All Funds
FY 2021-22 through FY 2022-23

6. 6
2021-2022 2021-2022 2022-2023
BUDGET ESTIMATED FORECAST
Revenues 81,314,818 86,727,050 86,703,738
Expenditures 64,925,947 66,812,745 75,622,619
Transfers In / (Out) (11,567,333) (14,740,211) (7,111,925)
Surplus / (Deficit): 4,821,538 5,174,094 3,969,194
Estimated Balance: 73,730,406 79,548,070 84,540,910
City Budget Overview - General Fund
FY 2021-22 through FY 2022-23

7. 7
City All Funds - Est. Balances
FY 2022-23 Proposed Year End* (in millions)
$129.5M
*Does not include receivables

8. Funds Overview
Fiscal Year 2022-2023
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9. 9
City Government Funds - Est. Balances
FY 2022-23 Proposed Year End* (in millions)
$125.7M
*Does not include loan receivables

10. 10
City Enterprise Funds - Est. Balances
FY 2022-23 Proposed Year End* (in millions)
$3.8M
*Does not include debt service or internal loan payables

11. 11
Source: Cerritos ACFR for year-ending June 30, 2021 and Budget Data FY 2022-23
City Governmental Revenues vs Expenditures
Public Service Funding, 8-Year Actuals (in millions)
FY 2020-
21
Surplus
$6.5M
$11M
one-time
purchase of
former CRA
properties

12. 12
City Enterprise Revenues vs Expenses
Business-Type Activity, 8-Year Actuals (in millions)
Source: Cerritos ACFR for year-ending June 30, 2021 and Budget Data FY 2022-23
FY 2020-
21
Deficit
$(2.6)M

13. 13
City Enterprise Funds - Gen. Fund Loans
3-Year History and FY 2022-23 Forecast (in millions)

14. City Revenues
Fiscal Year 2022-2023
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15. 15
City Combined Revenues
10-Year History and Forecast (in millions)
Source: Cerritos ACFR for year-ending June 30, 2021 and Budget Data FY 2022-23

16. 16
City Combined Revenues
FY 2022-23 Composition (in millions)
$124.0M

17. 17
City General Fund Revenues
FY 2022-23 Composition (in millions)
$86.7M

18. 18
City Recurring Revenues - Top 10 Aggregate
FY 2021-22 through FY 2022-23
Top 10 is
69%
of total
forecast

19. 19
City Governmental Revenues
FY 2022-23 Public Service Funding (in millions)
$103.1M

20. 20
City Sales Tax Revenues
10-Year History and Forecast (in millions)
Source: Cerritos ACFR for year-ending June 30, 2021 and Budget Data FY 2022-23

21. 21
City Sales Tax Revenues
Budget to Actual Comparison, with Forecast (in millions)

22. 22
California Sales Tax Rankings
Calendar Year 2021
Followed by:
• Beverly Hills (50)
• Santa Monica (52)
• Pasadena (53)
• Thousand Oaks (57)
• Burbank (61)
• Fullerton (83)
Cerritos
43rd
of 539 Agencies
$43.4 Million

23. 23
City Motor Vehicle In-Lieu Revenues
10-Year History and Projections (in millions)

24. 24
City Ground Rent & Lease Portfolio Revenues
10-Year History and Projections (in millions)

25. 25
City Ground Rent & Lease Portfolio Revenues
FY 2022-23 Composition (in thousands)
$8.4M

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Cerritos Assessed Valuation
Calendar Year 2021
$10.9B
Source: LA County Assessor’s Office. Includes administrative adjustment of +3.7% in 2020 from 2019 valuation.

27. 27
City No-Low Property Tax Revenues
10-Year History and Projections (in millions)

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City CCPA Combined Revenues
10-Year History and Projections (in millions) Effect of
$4.2 M
one-time
SVOG
Revenues

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29
City CCPA Combined Direct Revenues
FY 2022-23 All Funds Composition (in millions)
$5.1M

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City Franchise-Trash Revenues
10-Year History and Projections

31. 31
Trash Rate Comparison
August 2021* Area Average - $22.77
Cerritos
$2.35
Below
Area
Average
* Does not include rates for recently State-mandated residential organics recycling programs

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City Enterprise Revenues
FY 2022-23 Business-Type Activity (in millions)
$20.8M

33. 33
City Water Enterprise Revenues
10-Year History and Projections (in millions)

34. 34
Water Rate Comparison - 36 Units
May 2022 Area Average - $171.67
Cerritos
$62.56
Below
Area
Average

35. City Expenditures Overview
Fiscal Year 2022-2023
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36. 36
City Combined Expenditures*
10-Year History and Forecast (in millions)

37. 37
City Operating Expenditures & Equipment
FY 2022-23 Composition by Department
$107.2M

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City Operating Expenditures & Equipment
FY 2022-23 Composition by Category
$107.2M

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City Operating Expenditures & Equipment Composition
FY 2019-20 through FY 2022-23 (in millions)

40. City Operating Expenditures - Community Support
FY 2021-22 Adopted to FY 2022-23 Proposed (page 1 of 2)
Community Support FY 2021-22 FY 2022-23
Cerritos Regional Chamber of Commerce 40,000 40,000
Community Family Guidance 22,500 22,500
Pathways Volunteer Hospice 13,500 13,500
Su Casa Crisis Shelter Hotline 9,000 9,000
Su Casa Crisis Transitional Housing/Outreach 9,000 9,000
Helpine Youth Counseling 7,200 7,200
Rabies Clinics 6,000 6,000
Los Cerritos YMCA 5,400 5,400
ARC of Southeast Los Angeles 3,600 3,600
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41. City Operating Expenditures - Community Support
FY 2021-22 Adopted to FY 2022-23 Proposed (page 2 of 2)
Community Support FY 2021-22 FY 2022-23
Community Services Series 3,600 3,600
Southern Calif. Rehab. Services 2,250 2,250
American Red Cross 2,250 2,250
Domestic Violence Prevention 1,710 1,710
1st Combat Engineer Battalion 1,500 1,500
Disinguished Young Women's Scholarship 1,130 1,130
Red Ribbon Campaign — 960
Soroptomist 450 450
Cerritos Legal Referral 180 180
Total Support: 129,270 130,230
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42. Capital Improvement Program (CIP)
Proposed Projects for
Fiscal Year 2022-2023
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43. 43
Capital Improvement Program (CIP)
FY 2021-22 Year-End Estimate and 5-Year Forecast (in millions)

44. 44
Capital Improvement Program (CIP)
FY 2022-23 Composition by Classification (in millions)
$14.7M

45. 45
Capital Improvement Program (CIP)
FY 2022-23 Composition Percentage by Fund
* See Fund pages for General Fund transfer activity
$14.7M

46. 46
Government Buildings
FY 2022-23 CIP
$3.0 million
• $1.0M General Fund resources for various projects, including partial CPE
California Room improvements, Library carpet, phone systems, and security;
• $235k Measure "A" resources for partial CPE California Room improvements;
• $1.75M CCPA Endowment resources (part of SVOG savings) for CCPA roof
replacement and pro-tower upgrades
City-owned building located at 12616 183rd Street

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• $1M in restricted Housing Asset Fund reserves mandatory encumbrance for a
Proposed Mixed-Use/Residential Infill Development of affordable housing
• $381k restricted Street Fund reimbursements for Residential Pine Tree
Reforestation
• $30k Art in Public Places Fund resources for Sculpture Garden
Other Projects
FY 2022-23 CIP
$1.4 million
Cerritos Sculpture Garden

48. • $425k funded by the Measure "A" for Heritage Park and Skate Park
• $65k of General Fund resources for city-wide park and playground
improvements
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Parks and Open Space
FY 2022-23 CIP
$490 thousand
Cerritos Iron-Wood Nine Golf Course

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• $50k in restricted Measure "W" funding for rehabilitation of dewatering stations
city-wide
Sewer Improvements
FY 2022-23 CIP
$50 thousand
Carmenita Sewer Lift Station

50. 50
• $2.7M in Street Fund reimbursements for Del Amo Blvd. Bridge and Metro
Intersections (Hot Spots) project;
• $1.8M in combined RMRA and Measure "M" funding for Dumont Ave and
Residential Streets rehabilitation;
• $320k in CDBG and SB821 restricted funding for ADA curb ramps
Streets and Highways
FY 2022-23 CIP
$4.9 million
Bloomfield Avenue Street Improvements

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• $2.5M in restricted Measure "W" funding for a Regional Stormwater Capture
Facility, NPDES Implementation, and Civic Center Ground Water Remediation;
• $1.8M in restricted Water Fund resources (deferred WRD legal settlement) for
C-5 Water Well;
• $150k in General Fund resources for Valve Replacements;
• $200k Reclaimed Water Fund resources for various projects
Water Improvements
FY 2022-23 CIP
$4.8 million
Water Storage with Solar Panels, City of Cerritos Corporate Yard

52. Successor Agency to the
Cerritos Redevelopment Agency
Fiscal Year 2022-2023
52

53. Highlights
Acquired properties valued at over
$2.72 billion at end of ground leases:
• Cerritos Towne Center (89.2 acres)
• Lincoln Station (8.1 acres)
• Jaguar / Land Rover dealership (2 acres)
• Lamar / Kia dealership (4.5 acres)
Revenues
• Repayment of loans: $67 million
• FY 2022-23 $4.1M loan principal & $445k
interest
• FY 2022-23 annual lease revenues of
$7.3M (recurring)
53
Successor Agency Overview
Settlement Highlights & Revenues
Cerritos Towne Center Food Court

54. 54
2021-2022 2021-2022 2022-2023
BUDGET ESTIMATED PROJECTED
Revenues 15,820,454 15,820,454 15,951,584
Expenditures 15,820,454 15,820,454 15,951,584
RPTTF Net: — — —
LOAN OWED TO CITY: 50,760,034 50,760,034 47,055,664
Successor Agency Budget Overview - RPTTF
FY 2020-21 through FY 2022-23

55. Budget Document
Fiscal Year 2022-2023
Review by Section
55

56. 56
Preliminary Combined Financial Program
Fiscal Year 2022-2023
CITY OF CERRITOS SPECIAL MEETING
CITY COUNCIL/SUCCESSOR AGENCY
MAY 16, 2022