Budget Presentation Outline All Fund & GF Budget Overview FY - - PDF document

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City of Alameda Budget Study Session May 28, 2013

City of Alameda Budget Study Session – May 28, 2013

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Budget Presentation Outline

• All Fund & GF Budget Overview FY 13/14 & 14/15
• General Fund Budget: Revenue / Expenditure Projections
• Options for Addressing Projected Budget Deficits
• Proposed Capital Improvement Program FY 13/14 & 14/15
• Other Budget Considerations
• Budget Challenge
• Council Direction on Proposed Budget

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FY 13/14 Proposed Expenditures by Fund Type - $162 Million

Note: AMP is not included in the above.

FY 13/14 Proposed Expenditures by Department – All Funds - $162 Million

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FY 13/14 Proposed Expenditures Personnel by Department – 409 positions

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General Fund Budget Overview FY 13/14 & 14/15

• April 2013 – 1st Budget Presentation to Council:
• Initial forecast deficit of $2.7 million for FY13-14

and $4.4 million for FY14-15 absent corrective actions

• Initial projected ending available fund balance of

$18.6 million (25% of budget) for FY13-14 and $14.2 million (18% of budget) for FY14-15 absent corrective actions

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General Fund Budget Overview FY 13/14 & 14/15

• May 2013 – 2nd Budget Presentation to Council:
• Revised forecast deficit of $3.5 million for FY13-14

and $5.2 million for FY14-15 absent corrective actions

• Initial projected ending available fund balance of

$18.5 million (24% of budget) for FY13-14 and $13.3 million (17% of budget) for FY14-15 absent corrective actions City of Alameda Budget Study Session – May 28, 2013

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General Fund Budget Overview

(continued)

Ending Available Fund Balance assumes no cost-saving measures are taken.

13-14 14-15 15-16 16-17 17-18

Revenues 72.8 $ 73.9 $ 75.0 $ 76.3 $ 77.7 $ Expenses 76.3 79.1 81.7 83.8 86.0 Deficit For Year (3.5) $ (5.2) $ (6.7) $ (7.5) $ (8.3) $ Ending Available Fund Balance 18.5 $ 13.3 $ 6.6 $ (0.9) $ (9.2) $ % of Expenses 24% 17% 8%

• 1%
• 11%

5 Year Projections for FY13-14 through 17-18 (in millions) Without proposed changes

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General Fund Budget

Major Revenue Sources - $74 Million FY13-14

(after proposed revenue offsets)

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General Fund Revenues 5-Year Plan Annual Assumptions

 Property Tax – 2.2% annually through 17-18  Sales Tax – 6% 13-14, 4% 14-15, 3% thereafter  Utility Users Tax – Flat thru 14-15, 1% thru 17-18  Franchise Taxes – Drop 13-14, 0-1% thru 17-18  Other Taxes – 1-2% through 17-18  Departmental Revenues–1% thru 17-18

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General Fund Budget Major Expenditure Categories FY13-14

(after proposed cuts)

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General Fund Budget Major Expenditure Categories

(after proposed cuts)

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General Fund Budget Personnel by Department – 284 positions

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Closing the Gap for FY13-14 and 14-15: Summary of Proposed Reductions/Revenue Offsets

Department Category 2013-14 2014-15 Administration 831,000 $ 833,000 $ Police 341,000 334,000 Fire 180,000 180,000 Central Services 49,000 49,000 Library 100,000 100,000 Recreation 60,000 60,000 General Fund Capital Projects 602,000 1,427,000 Parking Meter Rates 285,000 380,000 One Time Revenues 320,000 Total 2,768,000 $ 3,363,000 $

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Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)

• A. Administration: $831K FY13-14, $833K FY14-15
• City Manager / Information Services ($311K / $324K)
• Elimination of the Following Positions:
• ½ of a Office Assistant
• Senior Management Analyst
• Administrative Management Analyst (IT)
• City Attorney ($90k / $94k)
• Elimination Administrative Technician I

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Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)

• A. Administration (continued):
• Human Resources ($202K / $204K)
• Implement the Following Staff Changes:
• Eliminate the Human Resources Director position
• Establish a Human Resources Manager position
• Eliminate two Senior Administrative Management Analysts
• Downgrade one Senior Administrative Management Analyst to

an Administrative Management Analyst

• Reduce other operational costs by $30K
• City Clerk ($88K / $89K) - Reallocate Cable Television

Administration program to Cable Internal Service Fund

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Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)

• A. Administration: $831K FY13-14, $833K FY14-15
• Finance ($201K over two years)
• Implement the following staffing changes:
• Reclassify Controller as Finance Director
• Change Accounting Technician position to Accountant I
• Eliminate Purchasing/Payables Coordinator Position
• Create second Finance Supervisor position
• Eliminate Accountant II position
• Create Intermediate Clerk position
• Increase Business License processing fee $5
• Increase penalties for delinquent licenses

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Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)

• B. Police: $361K FY 13-14, $354K FY 14-15
• Propose an increase in parking citations, estimated to

generate $379K annually, staff report to follow at tonight’s meeting

• Reallocate $100K of COPS funds for equipment

replacement

• Request the addition of Part Time staff for parking

enforcement and an IT person for the implementation of a new CAD/RMS system

• Reduce base budget by $228K over two years

through reduced booking fees from the County

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Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)

• C. Fire: $180K
• Reduce purchases of equipment,

materials and supplies

• Reduce overtime budget
• Increase in Fire Prevention Services revenue

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Closing the Gap for FY13-14 and 14-15: Proposed Changes

(continued)

• D. Recreation and Parks: $60K
• Reductions in the following:
• Hardball Field (College of Alameda) ($3,500)
• Swim Center Facility Maintenance ($43,500)
• Other Administrative Contractual Services ($13,000)
• Implementation of Park Ranger Program

(no net additional costs)

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Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)

• E. Library: $200K over two years
• Change closing time on Thursday from 6 pm to 5 pm, to

align with operating hours on Friday and Saturday, with an offsetting increase in the materials supplies budget

• Reduce General Fund contribution by $200K over two

years through the use of remaining Measure O bond funds to fund capital outlay for both years

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Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)

• F. Public Works: $49K
• Represents an increase in the billing rates for fleet

maintenance services to Alameda Municipal Power and Alameda Unified School District

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Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)

• G. Reduction in General Fund Contributions

for Capital Projects of $602K in FY13-14 and $1.427 million in FY14-15)

• Reductions in Building Maintenance Renovations funded

annually by the General Fund from $860K to $400K to match staffing levels (FY13-14)

• Use $200K from Capital Project Fund reserves (one-time)

(FY 14-15)

• Use $764K from Facility Maintenance Internal Service Fund

(on-going)

• Reduce other GF projects by $142K (GF still contributes

$889,000 for FY 13-14 and $64K for 14-15)

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Voluntary Layoff Program Preliminary Results

Funding Source Employees Cost for FY 12-13 General Fund 4 82,000 $ Other Funds 2 40,000 $ AMP 3 60,000 $ Totals 9 182,000 $

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Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)

• H. Proposed Increase for Parking Meter Rates to

Regional Standard

• Increase meter rates by $.50 per hour
• Increase parking garage rates by $.25 per hour
• Estimated to generate $380K annually
• Staff Report to follow as part of

tonight’s Council meeting

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Closing the Gap for FY13-14 and 14-15: Use of One-Time Funds

• Receive repayment of funds due from Bayport

Assessment District for prior years for public safety services ($320K FY13-14 only) $45K annually in future years

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Closing the Gap for FY13-14 and 14-15: Use of One-Time Funds

• Use of carryover of projected budget savings FY12-13

($700K 13-14 and $1.8 million FY14-15), including:

• Police ($456K due to vacancies)
• Fire ($275K due to overtime savings)
• Facilities Maintenance ($160K due to vacancies)
• City Clerk ($220K Election Costs Savings / Reallocation

Cable Operation Costs)

• Refund of County of Property Tax Admin Fees ($360K)
• One Time COPS Grants $200K for Equipment

Replacement (from FY 11-12/12-13 collections)

City of Alameda Budget Study Session – May 28, 2013

28 General Fund 5 Year Projections FY13-14 to 17-18 (in Millions) with Proposed Changes

13-14 14-15 15-16 16-17 17-18

Revenues 73.9 $ 74.8 $ 75.9 $ 77.2 $ 78.6 $ Expenses 74.6 76.6 79.2 81.3 83.5 Budget Carryover from FY12-13 0.7 1.8 New PERS Rates - Safety 0.4 0.7 1.3 New PERS Rates - Miscellaneous 0.1 0.3 0.4 Deficit For Year

• $
• $

(3.8) $ (5.1) $ (6.6) $ Ending Available Fund Balance 21.3 $ 19.5 $ 15.7 $ 10.6 $ 4.0 $ % of Expenses 29% 25% 20% 13% 5% Projected additional costs of new PERS rates assumes PERS continues to earn its assumed annual rate of return of 7.5%.

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General Fund Reserve Comparison Selected Cities – Fiscal Year 2012-13 History of Addressing Budget Deficits

(In Millions)

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Capital and Maintenance Projects for Fiscal Years 13-14 and 14-15

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Capital/Maintenance Project Summary $45 Million for FY13-14 and 14-15

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Capital/Maintenance Project Summary Listing of Major Projects for FY 13-15

(Combined two year totals)

Sewer

• Sewer Infrastructure Improvements - $15.55 million
• Sewer Infrastructure Maintenance - $1.1 million

Streets/Transportation

• Street Tree/Median Maintenance - $1.79 million
• Pavement Management Program - $5.64 million

Pedestrian/Bike

• Sidewalk Repair Program - $1.5 million
• Bikeways and Trails - $2.0 million

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Capital/Maintenance Project Summary Listing of Major Projects for FY 13-15

(Combined two year totals)

Drainage

• Storm Drain System Improvements - $2.5 million
• Storm Drain Maintenance - $488,000

General City Facility

• Fire and Police Station Improvements - $645,000
• Design of Emergency Operations Center - $600,000
• Veterans Court Wall Construction - $750,000
• Library Improvements - $188,000

Marine

• Marina Village Pier Repair - $472,855
• Estuary Crossing Shuttle - $643,000

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Capital/Maintenance Project Summary Listing of Major Projects for FY 13-15

(Combined two year totals)

Parks/Golf

• Swim Center Renovations – $390,000
• Beltline - $238,000
• Estuary Park Field Design - $66,000
• Golf Course Renovations - $1.0 million

Other

• Police Vehicle Replacement $550,000
• Fire Vehicle/Apparatus Replacement $1.1 million
• Citywide Records Management Software - $300,000
• Police CAD/RMS System Replacement - $1.0 million

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Capital/Maintenance Project Summary $45 Million for FY13-14 and 14-15

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Capital Project Summary Total Unfunded Projects - $258 Million

(Next Five Years)

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Other Budget Considerations

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Other Budget Considerations

• PW / ARRA staff (Non-General Fund) Changes
• Proposed Addition New Public Works Supervisor –

(CIP)

• Proposed Addition of an Associate Civil Engineer –

(Development)

• Proposed elimination of an Administrative Services

Coordinator in ARRA

• Update on Redevelopment/Successor Agency

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Other Budget Considerations (continued)

• No Incremental Advance of future years’ Franchise Fees

from AMP - $1 million will carryover from FY12-13

• Potential Bond Refinancing - $165K annual savings (est.)
• Lease and Debt Financing FY13-14 and FY14-15
• Future City OPEB and Pension Liabilities

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Projected Employer Portion of PERS Rates

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City of Alameda Budget Study Session – May 28, 2013

Projected new PERS rates assumes PERS continues to earn its assumed annual rate of return of 7.5%.

15% 16% 18% 20% 22% 23% 25% 40% 42% 44% 46% 48% 51% 54% 0% 10% 20% 30% 40% 50% 60% 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

Safety Misc

Cumulative Dollar Impact of Projected Increases in PERS Rates

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Fiscal Year Misc Safety Total 15-16 143,000 $ 368,000 $ 511,000 $ 16-17 285,000 $ 735,000 $ 1,020,000 $ 17-18 428,000 $ 1,330,000 $ 1,758,000 $ 18-19 571,000 $ 1,925,000 $ 2,496,000 $ 19-20 714,000 $ 2,519,000 $ 3,233,000 $

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OPEB Funding Levels FY11-12

OPEB Liability and % Funded

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Closing the Gap in Future Years Revenue Options

• Should the City poll residents to explore

their support for different City revenue enhancement options?

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Closing the Gap in Future Years Increasing Existing Taxes

1.

Sales Tax – 9.00% Increase .25%-.5% - $930,000 to $1.86 million 2. Utility User Tax – 7.5% Increase of 1% - $1.2 million

3.

Transient Occupancy Tax – 10% Increase of 1% - $100,000

4.

Property Transfer Tax – $12 per $1,000 of valuation Increase by $2 per $1,000 - $500,000 to $700,000

5.

Business Licenses – Rentals $20/Unit, Other $79-$155, Increase by $20 - $340,000 6. Parcel Tax - TBD

Sales Tax Per Capita of Selected Nearby Cities Estimated FY 12-13

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City of Alameda Budget Study Session – May 28, 2013

Budget Challenge Preliminary Survey Result

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Budget Challenge Revenue Preliminary Survey Results

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Budget Conclusions

 Projected better than expected revenues and

lower than expected expenditures for FY 12-13

 $45 million investment in City Maintenance and

Capital Projects for FY 13-15 combined

 Maintains and exceeds City Council’s 20%

reserve policy for two years

 No significant decrease in direct services to the

community

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Council Direction on Proposed Budget

• Proposed expenditure reductions
• Proposed changes to revenues
• One-time items and use of budget carryover
• Proposed capital and maintenance projects
• Other Budget / Revenue Considerations

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Next Steps

May 28, 2013 Possible adoption or defer to June 11th Master Fee Revisions to Parking Citations and Parking Meter Rates June 11, 2013 Council budget adoption if needed June 18, 2013 Adoption of Fee Study First Reading Update to Business License Ordinance

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Questions?