BRIEFING OVERVIEW OF THE 2017/18 OPERATING BUDGET & CAPITAL - - PowerPoint PPT Presentation

BUDGET BRIEFING

OVERVIEW OF THE 2017/18 OPERATING BUDGET & CAPITAL IMPROVEMENT PROGRAM JUNE 2017

PURPOSE OF THE OPERATING BUDGET & CIP

• Establish/review highest

priorities for municipal service delivery to meet unique community needs

• Identify, plan for and

fund one-time capital needs

DANVILLE’S MISSION

Deliver municipal services that make people’s live better.

We:

• Keep residents, businesses and property safe
• Provide well‐maintained public facilities
• Protect our environment, preserve our history and retain the special

character

• Provide opportunities that support residents’ growth and enrichment
• Promote and support economic vitality and growth
• Represent and promote Danville’s best interests
• Celebrate community through family oriented special events
• Engage and communicate with residents and businesses effectively

SERVICE DELIVERY STRUCTURE

DANVILLE’S APPROACH = FISCAL SUSTAINABILITY

• 1. Focus on Vision, Mission & Priorities
• 2. Combine approaches to deliver service
• 3. Invest in partnerships & technology
• 4. Minimize borrowing; maintain healthy reserves
• 5. Look out 10 years - estimate conservatively

OPERATING BUDGET & CIP INCLUDES

REVENUES – BY TYPE AND SOURCE ONGOING SERVICES/EXPENDITURES (OPERATING = ONGOING) COMPARISONS TO PRIOR YEAR FUND TRANSFERS (TO CIP) 10-YEAR FORECASTS/FISCAL SUSTAINABILITY CAPITAL PROJECTS – PRIORITIES AND FUNDING (CAPITAL = ONE-TIME)

REVENUES

FACTORS AFFECTING CITY REVENUES

• Economy
• Growth
• Trends
• Local Policy
• State Actions

May change from year to year

TYPES OF REVENUE

• Taxes: “General” (T.O.T., U.U.T., B.L.T.) versus “Special”

(Transportation, education…) – different voter requirements

• Fees: charge for a service (Development impact, franchise,

building permit)

• Assessments: levied based upon direct benefit received

(LLAD, Clean Water, Mello Roos…) – require property

• wner approval
• Intergovernmental: received for specific purpose from
• ther gov’t agencies, primarily state and federal (SLEFS,

gas tax, grants…)

• Other: locally-raised (utilities, facility rentals, recreation

classes, etc.)

PURPOSE OF REVENUE

• General Purpose (General Fund) – 74%

The main operating fund of the Town May be used for any purpose

• Special/Restricted Purpose (Special Revenue) – 26%

May be used only for purpose for which it was collected Examples: LLAD, permit fees, gas tax, Measure J

TOP REVENUE SOURCES

Source Budgeted General Fund Property Tax $13,041,067 Sales Tax $5,314,000 Parks & Recreation $2,581,657 Franchise Fees $2,378,874 Other G.F. $1,933,623 Special Revenue Lighting & Landscape (LLAD) $3,120,682 Planning & Building $2,752,600 Gas Tax $1,211,992 Measure J $742,857 Other S.R. $938,716 TOTAL $34,016,068

2017/18 REVENUES

Town General Fund $25,249,221 (+4.8%) Special Revenue $ 8,766,847 (+5.2%) Total Town $34,016,068 (+4.9%) Successor Agency $ 2,181,597 (-2.6%) GRAND TOTAL $36,197,665 (+4.4%)

TOP REVENUE SOURCES

PROPERTY TAX DISTRIBUTION

Cities/ Towns 21% Counties 27% Schools 45% Special Districts 7% TYPICAL CITY DANVILLE Schools 52% Special Districts 23% County 15% Town 7% Other 3%

Countywide Transportation – Measure J, 0.5% County Health and Welfare, 0.5% Local (City or County), 1.0% State: General Fund 5.0% State: Local Public Safety Fund (Prop 172), 0.5% State: Local Revenue Fund, 0.5% State 6.5%

SALES TAX DISTRIBUTION

PAID ON RETAIL SALES, VARIES BY CITY IN CALIFORNIA BASE RATE IN CONTRA COSTA COUNTY @ 8.5%

Breakdown of State’s Portion of Sales Tax from Contra Costa County (6.0%)

REVENUE TRENDS

• General Fund
• Growth has averaged 4% annually last 15 years.
• Largely driven by property Tax/ Property Values
• Sales tax eroding
• Future forecast estimated @ 1.7% annually
• Special Revenue
• Growth has averaged 2.5% annually last 15 years.
• Future forecast estimated @ about 1.25% annually
• Total Revenue
• Growth has averaged 3.6% annually last 15 years.
• Future forecast estimated @ about 1.6% annually

PROPERTY & SALES TAX COMPARISON – 2016/17 BUDGETS

$85 $129 $318 $319 $324 $321 $265 $214 $264 $308 $513 $755

$- $200 $400 $600 $800 $1,000 $1,200 Danville San Ramon Walnut Creek Livermore Dublin Pleasanton

Sales Tax Property Tax

Population

42,865 78,363 70,018 88,368 57,349 74,982

Sales & Property Tax

$17.0 M $26.9M $40.8M $55.4M $48.0M $80.7M

EXPENDITURES

REVENUE TRENDS

2016/17 2017/18 +/-

GENERAL GOV’T. $ 1,792,873 $ 1,933,215 $ 140,342 POLICE $ 9,251,269 $ 9,644,494 $ 393,225 ADMINISTRATIVE SERVICES $ 3,601,723 $ 3,888,736 $ 287,013 DEVELOPMENT SERVICES $ 4,284,881 $ 4,453,198 $ 168,317 MAINTENANCE SERVICES $ 7,289,945 $ 7,554,321 $ 264,376 RECREATION, ARTS & COMMUNITY SERVICES $ 3,973,279 $ 4,237,893 $ 264,614 TOTAL $30,193,970 $31,711,857 $ 1,517,887

TOWN EXPENDITURES

General Government 6% Police 29% Administrative Services 12% Development Services 14% Maintenance Services 23% Recreation Services 13% Successor Agency 3%

2017/18 Changes in Operating Expenditures – By Department

Program/Function $ Change from 16/17 Purpose General Government +$140,342

Increased software maintenance costs; increased personnel costs

Police Services + $393,225

Increase in contract cost for sworn personnel; increase in contract cost for animal services

Administrative Services +$287,013

Increased liability insurance premiums; increased vehicle replacement costs; increased personnel costs

Development Services + 168,317

Increased software maintenance costs for Energov; increased consultant costs; increased personnel costs

Maintenance Services + $264,376

Increased contract and utility costs in Roadside and Park Maintenance; increased personnel costs

Recreation, Arts, & Community Services +264,614

Increased instructor/ contract services costs in Cultural Arts and Youth Services; increased personnel costs

2017/18 Changes in Operating Expenditures – By Purpose

Category $ Change from 16/17 Purpose Employee Expenses +$449,325

Pay for Performance and Benefit costs

Temporary Salaries + $32,362

Increased hourly cost for temporary staff – all departments

Administration +$61,723

Increased pass through and training costs

Materials and Supplies + 56,581

Increased software maintenance costs

Contract Services + $585,895

Police Services; Building Plan Check; Landscape Maintenance and Recreation, Arts and Community Services

Equipment +$31,331

Increased vehicle replacement costs

Program Activities +363,782

Increased liability insurance costs; increased utility costs

• Total operating expenditures have increased by an

average of 4.5% annually over past 15 years Future forecast estimated at 2.25% annually

• Personnel costs have increased by an average of 5.2%

annually over past 15 years Future forecast estimated at 2.0% annually

• Police costs have increased by an average of 6.25%

annually over past 15 years Future forecast estimated at 3.5% annually

EXPENDITURES TRENDS

PER CAPITA OPERATING EXPENDITURES– 2016/17 BUDGETS

Total Budget $31.4M $70.9 $89.6 $85.0 $70.8 $206.1 Population (2016) 42,865 78,363 88,138 70,018 57,349 74,982

$733 $905 $1,017 $1,214 $1,235 $2,748 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 Danville San Ramon Livermore Walnut Creek Dublin Pleasanton

• Staffing levels:
• 94.75 FTE permanent
• 30.0 FTE contract (sworn

police officers)

• 36.0 FTE part-time temporary
• Total employee expenses:

$11,598,838 (4.0)

• Merit-based salary adjustment
• No unfunded pension liabilities

STAFFING & EMPLOYEE COSTS

PERSONNEL FUNDING SOURCES

General Fund $6,917,983 60% Building & Planning $1,901,459 16% Gas Tax $692,723 6% LLAD $1,430,709 12% Measure J $218,520 2% CIP $80,748 1% Engineering $209,369 2% Clean Water $147,327 1%

Last 20 years – Personnel Costs = 34-37% of Operating Budget

• BAY AREA CPI

+17%

• EMPLOYEE MEDICAL COVERAGE

+50-59%

• EMPLOYEE SALARY RANGES

+13%

• PAY FOR PERFORMANCE

+20-37%

2011-2017

• Identifies current and future

capital needs, and sources of funding for projects categorized as:

• General Improvements
• Parks and Facilities
• Transportation
• 47 separate projects

recommended for 2017/18 with appropriations totaling $12,722,191

CAPITAL IMPROVEMENT PROGRAM

LOOKING AHEAD

• Increased expectations/demands in

digital age

• Erosion of revenues- expenses
• utpacing revenue growth
• Increased Public Safety costs
• Over $200 million in infrastructure to

maintain

• Need to balance Capital and

Operating expenses

• Increasing medical and benefit costs

UPCOMING CHALLENGES

• Operating costs carry over; capital

costs don’t

• At current levels, expenditures
• utpace revenues by 1.5% annually
• Will need to continue to carefully

balance

• Ten-year forecasts updated annually

TEN-YEAR PICTURE

QUESTIONS?