Speaker 0: Her next item is number 29.
Speaker 1: Item 29 Report from Financial Management Recommendation to receive and file the Fiscal Year 2022 First Budget Performance Report. City.
Speaker 0: Thank you. Is there staff report?
Speaker 2: Yes. We'll have Grayson, the city's budget manager, make a presentation on this item.
Speaker 0: Hello, Grace.
Speaker 2: Hi. Good evening. Chair Austin and members of the City Council. This is a preview report of potential FY 22 year end projections. This report is based on early estimates from department and citywide revenue analysis, which we know can vary sometimes significantly by year end. Actual year end status will be reported in our normal year and performance report that comes to City Council in February. So first, to provide some context, the FY 22 budget was developed during the spring and summer of 2021 with a general fund structural shortfall of 27 million, plus a 3 million in one time uses. The plan was to utilize funds made available through the Long Beach Recovery Act to cover this $30 million need. Subsequent to the adoption of the FY 22 budget, we closed out FY 21 reporting that the overall fiscal impact of the pandemic was not as severe as originally anticipated, with key general fund revenue sources, such as sales tax rebounding very quickly and even surpassing pre-pandemic performance. Based on this, we were anticipating improvements to our FY 22 situation. This report reflects that anticipated improvement, with current estimates now showing general fund ending with a shortfall of approximately 18 million, a significant improvement from the original 30 million shortfall, again largely due to improved revenue projections. Also, it should be noted that this shortfall includes support from reserves that were set aside to cover the measure and litigation related revenue loss. Had we not had this reserve, the shortfall would have been about eight and a half million dollars worse, or at around 26 million. We're still planning on covering the shortfall through the Long Beach Recovery Act plan. On the general fund expenditure side, we are projecting some higher salary savings in the police department compared to typical years due to unfilled positions in this tight labor market that many organizations in the region are facing. The police department will be utilizing their savings to implement key initiatives that will provide higher level of transparency and operational efficiencies, as well as provide funding to other departments to support community crisis response initiative, violence prevention and citywide equity efforts. The report also provides notable updates on other funds. For example, Measure A is projecting about a $13 million surplus following some similar patterns with sales tax revenue. And these funds are being reviewed as part of the new five year measure plan to be included in the FY 23 budget. And the Tidelands Operating Fund is also projecting to be able to set aside 12 million for Tidelands capital improvement projects to be included in the proposed FY 23 budget. Lastly, these figures factor in an estimated revenue from higher oil prices and also includes potentially setting aside up to 25% more for oil well abandonment over what was previously planned to help build the city reserves to safely retire oil wells in the future. There are many variables that can impact these final figures, so the actual amount will be revisited at the end of the year. This concludes my staff report and I'm available for questions.
Speaker 0: Thank you for the report. I was trying to keep up with all of the the the figures here, but I know there in our staff report as well. You mentioned saving salary savings with LAPD and how those funds are going to be allocated. Can you can you just repeat that? Because I think that that's pretty profound. I mean, these are dollars that were going toward public safety, but they're going to be reinvested in other areas of community and public safety. Is that correct?
Speaker 2: Yes, Councilmember. That's correct. So with the greater salary savings that the police department is anticipating at the end of this fiscal year, they are putting some additional funding into areas of core services, of crime prevention and investigation, and implementing key initiatives for greater transparency, accountability and operational efficiencies within the police department. Also, they are able to reallocate some of their funds to other departments. This includes the Health Department, library, parks. And I think there's one other department that to support efforts such as violence prevention, racial reconciliation and equity needs, and also to support the community crisis response effort. And I think I have the departments here. Yes. So city manager department for the Language Access, Support, Parks and Recreation, Health and Library Services are also getting some funding from these police savings that are being anticipated.
Speaker 0: Great. And measure a I see there's a $13 billion surplus there.
Speaker 2: Yes, correct. There's about a $12.8 million projected operational surplus, as well as some additional cash that's made available by changing our Motorola debt service payment plan. And all of those are being factored into the requested new five year outlook plan that we are preparing with our public works department for measure that will be presented as part of the proposed FY 23 budget.
Speaker 0: Well, a few streets that I have in mind that I want to make sure that we have under consideration. Residential streets. This is great news. And there was one other question that I just wanted to just get some clarification on. You know, obviously, we're experiencing a lot of, I would say, imbalance with public safety in the community. And just wanted to understand how our our Recovery Act dollars are going to go toward our violence prevention plan, particularly as we are embarking on summertime.
Speaker 2: Yeah. We have Theresa Chandler who can come up and talk a little bit more about the violence prevention. But as she comes up, one of the as we were just talking about before, some of the funds that are being redirected from police savings are going towards these programs and violence prevention programs that are currently existing as part of our Long Beach Recovery Act funds. So these funds will be going to support that. And the report has a list of those programs, a lot that can continue from this summer and into the future fiscal year. So I'll turn it up.
Speaker 0: I just think it's important that our public kind of hear about our efforts toward violence prevention. You know, we're we're in May schools going to be letting out in another few weeks. Um, summertime. We want to be, be ready to, to deal with what's, what's coming or.
Speaker 2: Yeah. Yeah. Thank you. So, you know, a lot of our city departments are is grace mentioned we're collaborating we've been covering for a long time around community safety, but we've really been focusing on our prevention efforts and really aligning with goal two and racial equity and reconciliation, which is designing and investing in the community safety and violence prevention. So really looking at our beefs, be safe programing and that's continuing. It's being funded by Albury and my hood, my city books and buckets. Whoops, After Dark, our teen volunteers, Outdoor Youth Connections, Teen Academy, Youth Substance Use and Mental Health Support and tech to-go. So all of these are programs that are continuing. They're in process already, but we're able to extend hours in the summer and expand opportunities in the summertime to keep activities for youth going.
Speaker 0: Would you please just just just give us an overview. There's a there's a line item here for reentry program, a pilot program. What does that look like?
Speaker 2: Sure. So outlined in reconciliation also is to really focus in on our reentry. I'm really looking at creating an advisory committee and then also we're trying to get like a one stop shop for reentry. So this is starting that process off. And then also there's going to be a summit that takes place later in the fall. So there's a lot of activities that are happening. There's already a lot of reentry work that's happening in Long Beach and it's just coupling along with the work that's already happening, but really honing in on the work that's happening and kind of being a connecting point within the city here.
Speaker 0: Thank you. Our health department is working overdrive and overtime to to address many of these concerns. And I'm just delighted that we have funding over the next couple of years to to address many of our critical concerns. Thank you. Councilmember, you want to give did you have any comment?
Speaker 5: No, but I'm very pleased with the the use of these funds to support some of these programs. I'm especially pleased to see that the Be Safe program is going to be funded at $250,000 level. That's great. Excellent program. Thank you.
Speaker 0: For any other comments. Councilmember Price.
Speaker 4: Thank you. I too, I want to echo the comments of my colleagues and I want to especially thank our police department for being a partner in just so many ways and being. Very active collaborators in understanding what council has been saying and the public has been saying and reinvesting and helping make us stronger as a city. I think it just shows how committed they are to the overall good of everyone. So thank you.
Speaker 0: Is there any public comment?
Speaker 1: Dave Shukla.
Speaker 3: Uh, good evening. Dave Shipley, third district. Um, thank you for the presentation and for the pretty detailed staff report. It's a curiosity and one that I'd like to pick out against that full 25% of the increase in oil and gas revenue should go exclusively to oil. Well, abandonment. Without further details, first of all, about which wells will be abandoned, how they will be permanently sorry, which abandoned wells will be capped, and how they'll be permanently capped. What the current rate of leakage is, what the plan is for retiring a lot of the existing gas piping instead of reinvesting in it. What the plan is for retiring. A lot of the existing drilling not using existing permits to experiment with the new drilling at the same site or to pay for even newer drill sites and drills for the tie group. Specifically, the 17% increase from fiscal year 21 revenues is a great figure, but it's it'd be more helpful to know specifically how much. Extra revenue the city has received since September of 2021 relative to what it had anticipated for oil and gas prices at that time. And with the measure m cap of 12% gross revenues in the gas fund group that cap for transfers, that is something that may have to be revisited, especially now that the combination of utilities, hopefully electricity as well is something that may become a eventuality. Thank you for your time.
Speaker 1: That concludes the public comment.
Speaker 0: So here in public comment members, please vote. On the item.
Speaker 1: Councilwoman Cindy has. The motion is.
Speaker 2: Carried.
Recommendation to receive and file the Fiscal Year 2022 (FY 22) First Budget Performance Report providing an update on the City of Long Beach’s FY 22 financial status and projections and adjust appropriations in departments to reflect the funding where programs will be managed.  (Citywide)