2019 MAYOR'S STATE OF THE CITY ADDRESS City of Sierra Madre The - - PowerPoint PPT Presentation

2019 MAYOR'S STATE OF THE CITY ADDRESS

City of Sierra Madre

The Golden Age of Sierra Madre

AGENDA

Finances The Golden Age of Sierra Madre City Services

Public Safety Library Public Works (Water, Sewer)

Stewardship

Clean Power Alliance

State of the City: Fiscal Health

• COMPREHENSIVE ANNUAL FINANCIAL

REPORT (CAFR)

• 2019-2020 FISCAL YEAR BUDGET
• FUTURE COSTS AND LIABILITIES

State of the City: Fiscal Health Moorlach Report

180 142 120 97

20 40 60 80 100 120 140 160 180 200 2017 2018 2019 2020

Sierra Madre Ranking of Fiscal Soundness (of 482 California Cities)

State of the City: Fiscal Health Moorlach Report

$570 $(618) $(929) $(1,437) $(1,661) $(2,050) $(2,510) $(3,145) SIERRA MADRE (97) SAN MARINO (313) SOUTH PASADENA (361) AZUSA (414) ARCADIA (430) SAN GABRIEL (455) PASADENA (462) MONROVIA (469)

SIERRA MADRE AND PEER CITIES UNRESTRICTED NET POSITION PER CAPITA

General Fund Reserves of $6.9M or 67.6% of GF expenditures

COMPREHENSIVE ANNUAL FINANCIAL REPORT 2018-19:

Sewer Fund position increased from $240,000 Water Fund Infrastructure: $2.3M in 2020 budget $5.3M in 2017-19 budgets

State of the City: Fiscal Health

BUDGET

TOTAL EXPENDITURES OF $22.25M IN FY 19-20

• Reduces spending by $816,000 from FY 18-19 ($23.06M, 3.5% reduction)
• Reduces spending by $3,332,000 from 17-18 ($25.58M, 12% reduction)

TOTAL GENERAL FUND EXPENDITURES OF $10.2M

• Reduces spending by $1.1M from FY 18-19 ($11.3M, 10.3% reduction)

GENERAL FUND SURPLUS OF $1.84M (18%) ALL FUNDS SURPLUS OF $2.86M (12.8%)

State of the City: Fiscal Health

$(3,000,000) $(2,000,000) $(1,000,000) $- $1,000,000 $2,000,000 $3,000,000 $4,000,000 14-15 15-16 16-17 17-18 18-19 19-20

State of the City: Fiscal Health (Budget) Deficit/Surplus: All Funds FY 15/16 - 19/20

State of the City: Fiscal Health (Budget)

FURTHER REDUCES ALLOCATIONS/TRANSFERS TO GENERAL FUND FROM UTILITY FUNDS

• Water Allocation to General Fund reduced to $480,300

from $997,000 in FY17-18

• Sewer Allocation to General Fund reduced to $128,700

from $304,400 in FY17-18

FURTHER INCREASES IN INFRASTRUCTURE EXPENDITURES IN WATER

• Water Fund will invest $2.3M in infrastructure, up from

$300,000 total in FY16-17

SECOND CONSECUTIVE YEAR ALL FUNDS ARE BALANCED WITH A SURPLUS

State of the City: Fiscal Health (Future) CalPERS Obligations 2016

$- $735,681 $840,844 $1,000,681 $1,160,629 $1,265,222

$- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 15-16 16-17 17-18 18-19 19-20 20-21

$- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000

16- 17 17- 18 18- 19 19- 20 20- 21 21- 22 22- 23 23- 24 24- 25 25- 26 26- 27 27- 28 28- 29 29- 30 30- 31 31- 32 32- 33 33- 34 34- 35 35- 36 36- 37

Annual Payment

Unfunded Pension Obligations

$- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000

16- 17 17- 18 18- 19 19- 20 20- 21 21- 22 22- 23 23- 24 24- 25 25- 26 26- 27 27- 28 28- 29 29- 30 30- 31 31- 32 32- 33 33- 34 34- 35 35- 36 36- 37

Annual Payment

Unfunded Pension Obligations

$- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000

16- 17 17- 18 18- 19 19- 20 20- 21 21- 22 22- 23 23- 24 24- 25 25- 26 26- 27 27- 28 28- 29 29- 30 30- 31 31- 32 32- 33 33- 34 34- 35 35- 36 36- 37

Annual Payment

Unfunded Pension Obligations

Fiscal Health: CalPERS Obligations

Pension Obligations w/ No Council Action Pension Obligations After First Additional Payment Pension Obligations After Second Additional Payment

Sierra Madre Historic Funding Ratio

74.20% 69.35% 72.05% 71.25% 82.35% 90.00% 70%

60% 65% 70% 75% 80% 85% 90% 95% 100% FY2015 FY2016 FY2017 FY2018 FY2019 (EST.) FY2020 (PROJ.)

Sierra Madre Pension Funding Ratio CalPERS Average Funding Ratio (current)

Funding Ratios of Comparable Cities

63.34% 67.77% 70.30% 71.06% 72.90% 74.40% 76.90% 90.00% 72.82%

60% 65% 70% 75% 80% 85% 90% 95% 100% ARCADIA CLAREMONT DUARTE* SOUTH PASADENA SAN MARINO SAN DIMAS* LA CANADA/ FLINTRIDGE* SIERRA MADRE PROJ.

Pension Funding Ratios of Comparable Cities Average

*Police and Fire Services are provided by LA County * City of Monrovia made an additional payment of about $98M to both Classic plans on December 2017. City of Monrovia issued 2017 Pension Obligation Bonds

• Sierra Madre is again ranked as one of the

top 20 safest cities in California

• 8,190 calls for service, with 4,648 calls
• fficer-initiated
• Priority 1 (Emergency) response time 2:34
• Transition to a Career Department

is now complete

Fire Department

• Trial period in Unified Response

and Automatic Aid has started

Police Department

State of the City: Public Safety

State of the City: Library

State of the City: Schools

State of the City: Water

State of the City: Water

WATER AVAILABILITY

• The 500 ft. rule (940 Acre Feet)

⚬ Local water capable of meeting 40.8% of water demand

• Raymond Basin Management Board Sierra Madre

Spreading Program ⚬ Imported water from District connection meets remaining demand

100 200 300 400 500 600 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Water Levels of East Raymond Basin

Feet Above Mean Sea Level Safe Operating Level

State of the City: Water

State of the City: Water

WATER AVAILABILITY Water Demand: 2,300 Acre. Ft./Annually Water Sources: Groundwater: SGVMWD/MET agreement: Arcadia Wheeling Agreement: Joint Well (Planned, 2022): 940 Acre Ft./Annually 2,500 Acre Ft./Annually (Up to) As necessary/requested 1,000 - 1,300 Acre Ft. Annually

State of the City: Water

WATER INFRASTRUCTURE 2016 WATER INFRASTRUCTURE 2020

• 64% of all water mains require

replacement

• 28% of water mains have failed
• Most pipes are 70 year beyond

useful life

• Water loss is 29%
• Infrastructure investment is less

than $300,000 Implemented Main Replacement Program ⚬ Invested $5.3M in FY2017-19 ⚬ Invested $2.3M in FY2019-20

• Converted 100% of users to AMI
• Water loss projected at less than

10% for 2020

State of the City: Water

WATER FINANCIAL PERFORMANCE 2020

• Refinanced debt and reduced payments from $420,000 to $230,000
• Budget surplus is projected each year into future (great for infrastructure!)
• Simplified water rates from 4 tiers to 2 tiers
• Excess water charges (penalties) eliminated
• Improved Bond Rating to "A" with an outlook of "stable" from "BBB" and

"Negative Watch"

Water Fund Infrastructure Investment FY 15/16 - 19/20

$2,309,500 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 15-16 16-17 17-18 18-19 19-20

Percent of Water Production Lost 2015 - 2019

29% 21% 17% 10%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2015 2016 2018 2019

$(400,000) $(300,000) $(200,000) $(100,000) $- $100,000 $200,000 15-16 16-17 17-18 18-19* 19-20*

State of the City: Wastewater Sewer Fund Deficit/Surplus FY 15/16 - 19/20

CLEAN POWER ALLIANCE

Clean Power Alliance is our new default electricity supply provider, offering clean, renewable energy at competitive rates to Sierra Madre.

What is Clean Power Alliance?

Your new option for electricity at your home or business

Your default selection

CLEAN POWER ALLIANCE

Successful service launch in Sierra Madre

• 95% of Sierra Madre residents kept Clean Power Alliance as their electricity supplier.
• 97% of Sierra Madre businesses kept Clean Power Alliance as their electricity supplier.
• These customers are experiencing greener energy (50% renewable) at no additional

cost compared to what they would pay to Southern California Edison.

• Customers always have the choice to opt to Lean Power (36% renewable) to take

advantage of cost savings…or to opt up to 100% Green Power show their commitment to sustainability.

• Stay tuned for new customer programs rolling out in 2020!

The Golden Age of Sierra Madre

THANK YOU