Co mmunity Budg e t Wo rksho p F e b rua ry, 2018 1 Rive rside - - PowerPoint PPT Presentation
Introduc tion to Ba se line F Y 2018- 2020 T wo- Ye a r Budg e t a nd F Y 2018- 2023 F ive - Ye a r Pla n F ina nc e De pa rtme nt Co mmunity Budg e t Wo rksho p F e b rua ry, 2018 1 Rive rside CA.g ov Rive rside CA.g ov BACKGROUND
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F
b udg e t de ve lo pme nt fo r two -ye a rs with five - ye a r fina nc ia l fo re c a sts. I nc o rpo ra te Rive rside 2.1. Mid-Cyc le re vie w to inc o rpo ra te upda te s to Rive rside 2.1 a nd re fine me nts to F ive -Ye a r F ina nc ia l Pla n.
F Y 2018- 2023 F IVE
AR F INANCIAL PL AN with ke y c halle ng e s and so lutio ns ide ntifie d and linke d to Rive rside 2.1 Strate g ic Plan and F ive -Ye ar Capital I mpro ve me nt Plan
F Y 2018- 2020 T wo- Ye a r Budg e t YE AR 1 F Y 18- 19 T wo- Ye a r Budg e t YE AR 2 F Y 19- 20 T wo- Ye a r Budg e t YE AR 3 F Y 20- 21 T wo- Ye a r Budg e t YE AR 4 F Y 21- 22 T wo- Ye a r Budg e t YE AR 5 F Y 22- 23 T wo- Ye a r Budg e t
Upda te d Annua lly
ina nc ia l de c isio ns a re ma de in the c o nte xt o f the F ive -Ye a r F ina nc ia l Pla n.
ve tting b y Budg e t E ng a g e me nt Co mmissio n, a pplic a b le c itywide Bo a rd a nd Co mmissio ns, City Co unc il a nd the Rive rside Co mmunity.
e xpe nditure , de b t a nd inve stme nt re vie ws a re c o nduc te d.
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Promise s Ma de , Promise s Ke pt
With the ado ptio n o f the F ive -Ye ar Me asure Z Spe nding Plan in May 2016, the City made financ ial and
Rive rside c o mmunity. Staff is c o mmitte d to b uilding o n the financ ial suc c e sse s o f F Y 2016-2018 b y pre se rving se rvic e s and finding additio nal e ffic ie nc ie s to e nsure the City’ s c o ntinue d financ ial suc c e ss and ac hie ve me nt o f its Rive rside 2.1 strate g ic initiative s. F Y 2018- 2020 KE Y BUDGE T ARY T HE ME S
F ina nc ia l Ac c ura c y F ina nc ia l Re sponsibility & Disc ipline Ma inta ining E sse ntia l Se rvic e s a nd Infra struc ture
E xe c utive manag e me nt se e s a c o mpre he nsive data c o lle c tio n and analyzatio n e ffo rt to ac hie ve ac c urate financ ial targ e ts and pro je c tio ns as a c o re te ne t, e sse ntial fo r the City’ s future fisc al fo undatio n. F inanc ial re spo nsib ility re q uire s ac kno wle dg ing and fully disc lo sing the City’ s c ritic al funding re q uire me nts, inc luding unfunde d ne e ds. F isc al disc ipline de mands City De partme nts o pe rate within the ir b udg e t. Manag e me nt ac tio n c alls fo r time ly re c o mme ndatio n to City Co unc il to addre ss any financ ial issue s c o nfro nting the City. I n c o nc e rt with the Re spo nsib le Spe nding Visio n Ple dg e (Oc t. 2016), the City will find ways to addre ss the c halle ng e s in funding its e xisting pro g rams and se rvic e s, and ide ntifying re ve nue s fo r the c ritic al ne e ds that have b e e n unfunde d fo r ye ars, inc luding re pair, mainte nanc e and re plac e me nt o f
and side walks, stre e tlig hts, and fle e t inc luding first re spo nde r ve hic le s. T hro ug h c re atio n o f the Budg e t E ng ag e me nt Co mmissio n (BE C), the City c o mmitte d to a pub lic ve tting o f its financ e s. T he two -ye ar b udg e t pro c e ss inc lude s many
Rive rside c o mmunity to c o ntrib ute , inc luding City Co unc il, BE C, and ward-spe c ific me e ting s. Additio nally, re ade r-frie ndly b udg e t pub lic atio ns will b e made availab le .
T ra nspa re nt & Pa rtic ipa tory Proc e ss
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Y 2016-18 b udg e t re duc tio ns
ng a g e me nt Co mmissio n
wo -ye a r b udg e t a nd five -ye a r pla n
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la tte ning o f re ve nue s
7% in fisc a l ye a rs 2013-15
n F Y 2017-18, $20.5M to Ge ne ra l F
Y 2018-19 a nd $18.3M in F Y 2019-20
nc re a sing Ca lPE RS c o sts – Sta te wide issue
nste a d o f va g ue a nd te mpo ra ry b udg e t me a sure s, pe rma ne nt b a la nc ing me a sure s will no w b e re q uire d
n-de pth re vie w to unde rsta nd a nd minimize impa c t o n dire c t se rvic e s
Y 2018-19; $6 millio n in F Y 2019-20
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Y 2018-19, 1.5% F Y 2019-20
fo r F Y 2018-20
la t sinc e F Y 2012-13
le c tric & Wa te r
The above chart represents the year-over-year increase or decrease in General Fund revenues. The drop in FY 2018-19 revenues is primarily due to a 35% decrease in the Measure Z fund transfer, from $20.5 million in 2017-18 to $13.2 million in FY 2018-19.
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“T he drastic e c o no mic and te c hno lo g ic al c hang e s
the past 30 ye ars, po int to the impe rative to re -e xamine the fie ld’ s c o nve ntio nal thinking ab o ut the ability of city finance s to buffe r against e conomic downtur ns and to captur e r e ve nue gr
e xpansio n.”
e ag ue o f Citie s 2017 “City F isc al Co nditio ns”
e ag ue o f Citie s 2017 “City F isc al Co nditio ns”
97.3
Riverside
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RS
nc re a se s b a se d o n histo ric a l CPI
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– Ge ne ra l F
und Ca lPE RS c o sts a re e xpe c te d to inc re a se mo re tha n $22 millio n o r 46%.
The ratio of CalPERS costs to Salaries will continue to narrow as salary increases tied to revenues level off. Some continued salary increases are projected in the form of merit pay, within the position salary range.
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Pa y ra te inc re a se s a re b a se d o n e stima te d pe rfo rma nc e o f the Ba la nc e d Re ve nue I nde x (BRI ). T he PE RS Give b a c k re pre se nts the shift o f City c o sts to the e mplo ye e . T he re a re no pa y ra te inc re a se s o r PE RS Give b a c ks a ssume d fo r F Y 2021-22 o r F Y 2022-23.
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nc re a se fro m F Y 2017-18 pro je c tio n la rg e ly due to c o ntrib utio ns to Se lf-I nsura nc e F und
inc re a se s b a se d o n CPI (2%) a nd histo ric a l tre nds
Non-Personnel costs have decreased significantly over the last few years due to cost-savings efforts and sound fiscal management. Heavy scrutiny of non-personnel costs will continue in the current budget cycle as we look for opportunities to reduce spending.
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func tio ns
impa c ts, pa rtic ula rly q ua lity
c o ntra c tua l a g re e me nts, o r a re c ritic a l to the o pe ra tio ns o f the City
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mpro ve me nt, L a ndsc a pe
Misc e llane ous $3,041,957 De ve lope r Ag re e me nts $1,132,000 Busine ss Improve me nt Distric ts $300,000 L a ndsc a pe Ma inte na nc e Distric ts $1,080,000
At a pproxima te ly 2% of Ge ne ra l F und spe nding , subsidie s tota l more tha n $5 million a nnua lly
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he City’ s va rio us funds, suc h a s Ge ne ra l F und, e le c tric , wa te r a nd se we r, ha ve a va ila b le funding in the m. T he a va ila b le funding , in line with a c c o unting sta nda rds, c o uld b e re stric te d b y a pplic a b le la ws a nd re g ula tio ns, o r de sig na te d fo r spe c ific purpo se s suc h a s pa yme nt o f de b t, e le c tric pla nt de c o mmissio ning , o r infra struc ture inve stme nts. T he funding tha t ha s no t b e e n re stric te d o r de sig na te d is a va ila b le to pa y b ills a nd pro vide a c ushio n in the e ve nt o f a n e me rg e nc y. T
his unre stric te d, unde sig na te d funding is typic a lly re fe rre d to a s “re se rve s”.
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Y 2018-19 & 2019-20 will ma inta in re se rve le ve ls a b o ve the po lic y re q uire me nt o f 15%
Y 2022-23
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– Re ve nue e nha nc e me nts – No n-pe rso nne l me a sure s (c o ntra c ts, sub sidie s, o the r disc re tio na ry)
– Re ve nue e nha nc e me nt
– Pub lic Sa fe ty – I
nfra struc ture
– Custo me r Se rvic e
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stima te d Re ve nue s o f $51.5 millio n
stima te d E xpe nditure s o f $47.2 millio n
RS) a re inc lude d
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ina nc ia l Disc ipline
und re se rve s
a nnua lly thro ug h F Y 22-23
unding GAP pe r Ge ne ra l F und F ive -Ye a r F ina nc ia l Pla n
a c ility Ca pita l Ne e ds
nc o rpo ra te d Co unc il a c tio n re la te d to Ne w Ma in L ib ra ry, Po lic e He a dq ua rte rs, a nd Muse um Re furb ishme nt pro je c ts
ife – no c ha ng e
e c hno lo g y
xte nde d thro ug h F Y 2022-23
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Rive rside CA.g ov/ Budg e t T HANK YOU
for pa rtic ipa ting in this Community Budg e t Workshop!