BUDGET OVERVIEW FISCAL YEAR 2018-19 JUNE 19, 2018
BUDGET GOALS • Maintain core services: • Police and fire protection • Keeping public areas safe, clean and well-lit • Repairing streets and roads • Prepare for the City’s long-term financial viability • Exploring options on revenue enhancement and expense reduction, including securing additional funding from the State or other agencies • Be transparent and accountable with how taxpayer dollars are spent
FY17-18 GENERAL FUND ESTIMATES Beginning Fund Balance $ 8,166,100 Revenue & Sources $ 62,699,600 Expenses & Uses 59,857,100 Revenue over Expenses $ 2,842,500 Transfer to Equipment Replacement Fund (1,400,000) Transfer to Capital Improvement Fund (1,400,000) Subtotal Operating Balance 42,500 Ending Fund Balance $ 8,208,600
FY17-18 GENERAL FUND REVENUE Property Taxes 16 10.0% 8.2% Millions FY16-17 Actual 14 FY 17-18 Estimates 5.0% Sales Taxes 1.8% 12 0.0% 10 -5.0% VLF 6.9% 8 License & UUT 1.8% Permits -22.6% Charges for -10.0% 6 Services - 0.5% TOT - Recreation -15.0% 7.2% 4 7.4% Franchises - 2 -20.0% 2.5% 0 -25.0%
FY17-18 GENERAL FUND EXPENSES -1.4% 45 0% Millions 40 FY 17-18 Budget -1% 35 -1% FY 17-18 Estimates -2% 30 -2% 25 -3% 20 -3% -4.6% 15 -4% 10 -4% -2.5% 5 -5% 0 -5% Personnel O&M Excluding Supplies Equipment
FY18-19 GENERAL FUND PROPOSED BUDGET Beginning Fund Balance $ 8,208,600 Revenue & Sources $ 64,389,800 Expenses & Uses 63,288,600 Revenue over Expenses $ 1,101,200 Transfer to Equipment Replacement Fund (1,800,000) Transfer to Capital Improvement Fund (2,400,000) Subtotal Operating Balance (3,098,800) Ending Fund Balance $ 5,109,800
GENERAL FUND REVENUE BUDGET $64,389,800 Property Taxes 4.5% 16.0 50.0% Millions 14.0 Sales Taxes FY 17-18 Estimates 40.0% 2.5% FY 18-19 Budget 12.0 30.0% 10.0 UUT 1.5%VLF 4.0% 8.0 Charges for 20.0% License & Services -1.3% Permits 13.4% 6.0 10.0% Franchises TOT -3.0% 4.0 1.0% Recreation 0.0% 2.0 9.6% 0.0 -10.0%
REVENUE AFFECTED BY PROPERTY VALUE 25 18 Millions Billions Assessed Value VLF Property Taxes 16 20 14 12 15 10 8 10 6 4 5 2 0 0 FY08-09FY09-10FY10-11 FY 11- FY 12- FY 13- FY 14- FY 15- FY 16- FY 17- FY 18- 12 13 14 15 16 17 18 19
REVENUE AFFECTED BY ECONOMY 16 55,000 Millions GDP Per Capita TOT Sales Taxes 54,000 14 53,000 12 52,000 10 51,000 8 50,000 49,000 6 48,000 4 47,000 2 46,000 0 45,000 FY08-09 FY09-10 FY10-11FY 11-12FY 12-13FY 13-14FY 14-15FY 15-16FY 16-17FY 17-18FY 18-19
LICENSE AND PERMITS 7 Millions 6 5 4 3 2 1 - FY08-09 FY09-10 FY10-11 FY 11-12FY 12-13FY 13-14FY 14-15FY 15-16FY 16-17FY 17-18FY 18-19
UTILITY USER TAXES 7.5 Millions 7.0 6.5 6.0 5.5 5.0 4.5 4.0 FY08-09 FY09-10 FY10-11 FY 11-12FY 12-13FY 13-14FY 14-15FY 15-16FY 16-17FY 17-18FY 18-19
Library & General Recreation & Administrative Museum Government Community Services Services $4,051,500 Services $3,298,700 $3,968,500 7% $3,358,700 5% 6% 5% Development Services $5,032,400 8% Public Works GENERAL FUND Services EXPENSE Police $4,162,400 BUDGET $22,651,600 7% $62,386,800 36% Fire $15,863,000 26%
GENERAL FUND EXPENSE BUDGET 50 4.7% 5% Millions FY 17-18 Budget 45 5% FY 18-19 Budget 40 4% 35 4% 30 3% 25 3% 20 2% 4.7% 15 2% 10 1% 5 0.3% 1% 0 0% Personnel O&M Excluding Equipment Supplies
Additional Revenue Ongoing NEW PROGRAMS Costs PROPOSED NEW PROGRAMS Annual Costs Annual FY18-19 Police Police Special Enforcement Team (SET) 70,100 64,100 Accurint Crime Analysis 13,800 13,800 Interagency Communications 65,000 65,000 Interoperability System Fire Upgrade one (1) Firefighter Position to 11,100 11,100 a Firefighter/Paramedic Development EnerGov ‐ Phase 2 for Mobil Devices 48,800 6,900 and iG Workforce Apps Contract Inspector for the Le Meridien 100,000 0 Hotel Project Recreation Elementary Summer Playgrounds 10,600 0 0 Saturday Adult Basketball League 9,100 8,900 8,900 City Manager Government Transparency upgrade 40,000 5,000 Administrative Services NeoGOV ‐ HR Recruitment Process 11,000 4,000 Total General Fund $19,700 $368,700 $178,800
RESTORING SERVICES: $2,088,500 Police Sergeant Police FY 2011 $176,600 Maintenance Contract Officer Public Works FY 2010 $107,000 5 Police Officers Police FY 2008 $751,800 Management Analyst Admin. Svs. FY 2008 $106,400 Library Technician Library FY 2007 $66,000 Administrative Captain (Former Div. Fire FY 2005 $244,000 Chief) 3 Firefighters Fire FY 1998 $636,700
FUTURE BUDGET CHALLENGES
ESCALATING PERS COSTS Misc $ Safety $ 16 80% Misc % Safety % 14 70% 12 60% 10 50% Millions 8 40% 6 30% 4 20% 2 10% 0 0% 2013-14 2015-16 2017-18 2019-20 2021-22 2023-24
PERS FUNDING STATUS 30 ‐ Jun ‐ 15 30 ‐ Jun ‐ 16 Miscellaneous Plan Accrued Liablilty (Projected) 133,929,705 139,784,811 Market Value of Assets 94,952,165 93,110,320 Unfunded Accrued Liability 38,977,540 46,674,491 Funded Ratio 70.9% 66.6% Safety Plan Accrued Liablilty (Projected) 223,960,685 234,127,732 Market Value of Assets 142,070,931 138,550,802 Unfunded Accrued Liability 81,889,754 95,576,930 Funded Ratio 63.4% 59.2%
PERS FUNDING STATUS 110% Safety 100% Misc 90% PERF AVERAGE 80% 70% 60% 50%
UNFUNDED OPEB ACCRUED LIABILITY OPEB LIABILITY Total OPEB Liability, valuation as of 6/30/17 $ 19,707,399 Market Value of Assets in the Trust, 5/1/18 $ 3,022,474 Unfunded Accrued Liability $ 16,684,925 Funded Ratio 15.3% Included in the FY2018 ‐ 19 Budget Retiree Medical Costs $ 812,700 OPEB Trust Contribution $ 911,600 TOTAL $ 1,724,300
POST EMPLOYMENT HEALTH CARE BENEFITS (OPEB) • Have taken steps to: I. Contribute to an OPEB Trust and built this cost into the annual Operating Budget FY2015-16 $1,351,650 FY2016-17 $ 650,800 FY2017-18 $ 650,800 FY2018-19 $ 911,600 II. Deposits & investment earnings will reduce the unfunded liability and eventually reach 100% funding level.
5-YEAR FINANCIAL FORECAST BASELINE SCENARIO – 2% INCREASE 80 Revenue & Sources 75 Expenditures & Transfers 70 Millions 65 60 55 50 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
5-YEAR FINANCIAL FORECAST W/ADDITIONAL SALES TAX 85 Revenue & Sources 80 Expenditures & 75 Transfers Millions 70 65 60 55 50 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
OPERATING RESERVES $23,166,100 Medical/ PERS Fund Dental Fund Reserve $348,700 $1,351,600 General Fund $7,809,800 Emergency Reserve $10,147,000 Self- Insurance Fund $3,509,000 ESTIMATED AS OF JUNE 30, 2019
OPERATING RESERVES 30 30 $25 $24 $24 $23 $23 $23 25 $22 25 $21 20 20 Millions 15 15 10 10 5 5 - - FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 General Fund Self-Insurance Fund Emergency Reserve PERS Fund Reserve Medical/Dental Fund Total
CAPITAL RESERVES 25 $22 25 $22 20 20 $16 Millions 15 $13 $13 $12 15 $9 10 10 $7 5 5 - - CIP Equipment CityHall Reserve
FY18-19 GENERAL FUND BUDGET Beginning Fund Balance $ 8,208,600 Revenue & Sources $ 64,389,800 Expenses & Uses 63,288,600 Revenue over Expenses $ 1,101,200 Transfer to Equipment Replacement Fund (1,800,000) Transfer to Capital Improvement Fund (2,400,000) Subtotal Operating Balance (3,098,800) Ending Fund Balance $ 5,109,800
CAPITAL IMPROVEMENT AND EQUIPMENT REPLACEMENT BUDGET
CAPITAL IMPROVEMENT PROJECTS Greenscape Improvement $1,571,000 Sewer Street 11% Related Maintenance Improvement $4,502,800 $1,140,000 31% 8% TOTAL Water Related $14,392,900 Improvement $3,458,000 24% Traffic Signal Improvement $175,000 1% Facility Park Improvement Improvement $1,799,100 13% $1,747,000 12%
CAPITAL IMPROVEMENT BUDGET Others RMRA $55,000 0% $952,800 7% Capital Improvement Grants Fund $568,800 4% $4,092,100 Park Fund 29% $1,158,800 8% Measure M $1,175,000 FUNDING SOURCES 8% Prop C Local Return Transportation $900,000 6% Impact Fees $250,000 2% Sewer Fund $1,203,900 Water Fund 8% $4,036,500 28%
EQUIPMENT REPLACEMENT PROJECTS Office Communication Machines & Computers & Equipment Furniture Software $398,600 $163,700 5% $125,100 4% 13% Field & Plant Equipment TOTAL $520,000 17% $3,061,300 Vehicles & Major Parts $1,853,900 61%
EQUIPMENT REPLACEMENT BUDGET
EQUIPMENT REPLACEMENT BUDGET Vehicle Replacement COSTS FUNDING Police 3 B/W Ford SUV PPV $ 318,000 ER 4 Used Vehicles for Detectives 2 SUV for Administrative staff ER/AQMD/Sewer Street 1 CNG Water Tanker Truck 300,000 /Water/Grant Fire 50,000 ER 1 Chevrolet Tahoe Transit 8 Arcadia Transit Cutaways 640,000 FTA Grant/Prop A 1 CNG Excavator 545,900 Water/AQMD Water Other Major Projects Police Radio Replacement $ 117,000 ER Police FARO Laser Scanner ‐ 3D Diagramming 91,800 ER Public Works Equipment including a Stump Grinder 144,000 ER/Water/Sewer Fire Cardiac Monitor Replacement Program 100,000 ER Fire Radio and Mobil Computer Replacement 180,000 ER Microsoft Operating System and Software Licensing 92,000 ER/Water
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