1. Budget adjustments are made twice each year to reflect changes in revenues and expenditure needs that occur after the budget is adopted.
2. The Second Supplemental of 2023 includes a total increase in the City’s 2023-24 appropriation for all funds of $150.4 million.

The second supplemental of 2023 includes administrative items, expenditures associated with new external revenues, adjustments to capital projects as well as a small number of other high priority items. 

The recommended expenditure appropriation increases for the City’s Operating and Capital funds included in the 2023 Second Supplemental Budget totals $150.4 million. An increase of $87 million relates to recommended changes in the Operating budget, with the remaining appropriation increase of $63.4 million representing changes in capital projects and supporting funding transfers. The Supplemental will result in utilizing $53.2 million in city resources; of that amount, the General Fund’s share is $9 million.

Appropriation increases to the General, Street and Fire funds total $44.3 million over the biennium. Major items are summarized below.

• Miscellaneous grants include: Justice Assistance Grants (JAG) for adult and child CPR training and leadership conferences; Internet Crimes Against Children Grant providing training and supplies; Fire Project Home Safe grants to support the zero-ignition fire initiative and risk reduction efforts within high-risk and vulnerable populations; State Homeland Security Program and Assistance to Firefighters grants for equipment and training; Department of Commerce (DOC) grant to conduct feasibility studies on solar and storage system; DOC grants to support climate policy development, middle housing code development and growth management act work; and Washington State Department of Transportation (WSDOT) grant to support Homeless Assistance and Resources Team (HART) outreach on WSDOT right of ways and operations of Safe Stay Communities.

• New administrative items include: reclassification of 56 Firefighters to Fire Engineers and other compensation changes consistent with the ratified 2023-25 Fire Suppression contract; increase of Clark Regional Emergency Services Agency (CRESA) fees in 2024, driven by the City's Public Safety needs; additional funding for street light materials and an upgrade of street lights in the Downtown; police callback and overtime increase due to all vacancies being filled and increased call volume; replacing/upgrading Public Order Specialist Team (POST) equipment; increase of health insurance rates in 2024, coupled with the City's one time contribution towards the cost increase for 2024; an appropriation for recording fees associated with leasing city-owned parcels for development (Waterfront Gateway Ground Lease); updated appropriation for Safe Parks and Safe Stay 1, 2, and 3, driven by a significant cost increase to manage the sites; one-time property acquisition funding for economic development and an increase for the Southwest Humane Society Contract.

The remaining appropriation increase relates to changes in other operating city funds. Major changes are summarized below:

• Significant increase in the City's 2024 health insurance rates; increase in 2023 Workers Compensation claims and the significant cost increase on liability insurance; increased costs to purchase or replace a number of large vehicles, including the Bucket Truck, TV Van, Easement Machine, Wastewater Pump Truck, Special Weapons and Tactics (SWAT) Bearcat vehicle, as well as an increase in appropriation for fleet maintenance parts; buy back of City Hall Permit Center Condo from the Building Fund; sale of half of 521 Chkalov Building to Building Fund; Construction Services relocation from East Precinct to a newly leased facility; and design funding to update the Water Center Exhibits.

The total net Capital Budget appropriation of $63.4 million (including capital funding) is included in the Second Supplemental of 2023. Expenditures by project are outlined in Attachment C to the ordinance. Capital funding transfers supporting the City's capital projects budget totals $17.7 million. Highlights of major capital changes are listed below:

• General Capital/Asset Management projects totaling $32.3 million:
  • Esther Short Park Bell Tower Remodel
  • Chkalov Building Remodel
  • Allocation of ARPA funds to specific Fourth Plain for All projects after extensive public outreach to residents Economic Development Acquisition
  • Economic Development Acquisition
  • Police Training Center Facility Evaluation
  • East Precinct Police Building Remodel
  • Howard House Roof Replacement

• Parks Capital projects totaling a $4.1 million reduction:
  • Vancouver Innovation Center Land Acquisition Increase
  • Shaffer Community Park Development Increase
  • Fisher Basin Community Park Sport Court Conversion
  • Bagley Community Park Development Cost Reduction

• Streets/Transportation Capital projects totaling $15 million:
  • Main Street – 5th to 15th (ARPA)
  • Fourth Plain for All (ARPA / Reallocation)
  • 137th Ave Corridor – 49th to Fourth Plain
  • Fourth Plain – 62nd – Andresen Multiuse Path
  • Main Street – 5th to 15th (ARPA)

• Water and Wastewater Capital projects totaling $2.1 million.

Attachment B of the ordinance outlines changes to full-time equivalent (FTE) employees, with an overall net new increase of 12.0 FTEs recommended in the 2023 Second Supplemental. Staffing changes are listed below:

• Updating Public Works FTE count to support the first phase of the reorganization, which includes adding a Deputy Public Works Director, a Wastewater Treatment Civil Engineer, and a Wastewater Operations Superintendent, as well as eliminating two vacant positions (Solid Waste Senior Support Specialist and Water Facilities Assistant).

• Converting seven part-time Customer Service Representatives to 3.5 FTEs within Parks, Recreation, & Cultural Services and converting two part-time Clark Vancouver Television Video (CVTV) Video Director/Editors and one Associate Video Producer to 1.5 FTEs.

• New (1.0 FTE) Transportation Planning Program Manager to better support new Complete Streets planning project needs.

• New (1.0 FTE) Police Records Specialist to support the additional public disclosure requests related to the footage captured by the body worn cameras within the Police Department.
• New (1.0 FTE) Plans Review Supervisor within the Development Review division of Community Development.

• New (1.0 FTE) Homeless Response Coordinator to support current and future homeless response programs.
• New (1.0 FTE) Capital Projects Manager in the Facilities Maintenance division of General Services to better manage smaller contractors working on City capital projects.
• New (1.0 FTE) Human Resources Analyst to support an upcoming City-wide classification and compensation project currently slated for 2024.

Attachment D to the Ordinance includes recommended 2024 adjustments to the non-union pay ranges. 

1. The proposed budget adjustments will ensure that the City remains in compliance with state statutes that require all City expenditures to have an appropriation approved by ordinance.
2. Appropriations are provided for important City programs, services, and capital projects.