Fiscal Year 18/19 Proposed Budget
Budget Overview • General Fund Overview ▫ Highlights ▫ Reserves ▫ Revenues and Expenditures PERS Unfunded Liability • Capital Outlay • Capital Improvements • Updated Multi-Year Forecast • Enterprise Funds • Internal Service Funds
Highlights • “Draft” Revised ▫ Replacement Pages ▫ Pending descriptions: Special revenue, internal service, other funds ▫ Establishment of a General Fund CIP Fund Facilitates stronger budgetary control ▫ Includes descriptive capital project sheets • General Fund Highlights ▫ Finances Revenues: $23 million Expenditures: $25.1 million Net impact to fund balance: $2.1 million Drawdown to fund capital projects or one-time expenditures ▫ Positions Addition of Recreation Program Manager to replace Senior Recreation Coordinator position Funding includes six-month overlap Reclassifications and minor restructuring: Police and Public Works Net annual impact for both departments at less than $12,000
General Fund Overview Estimated (1) Fiscal Year 17/18 Adopted Proposed Beginning Fund Bal. $10,329,000 $10,868,000 $10,133,000 Revenues 22,051,000 22,301,000 22,994,000 Expenses Operating 17,960,000 17,860,000 19,972,000 Capital Imp. / Outlay 1,870,000 1,361,000 2,060,000 Debt Service 1,973,000 1,954,000 1,973,000 Transfers Out 2,116,000 1,861,000 1,110,000 Total Expenses $23,919,000 $23,036,000 25,115,000 Net Difference (1,868,000) (735,000) (2,121,000) Ending Fund Bal. $8,461,000 $10,133,000 $8,012,000 (1) The Beginning Fund Balance was updated to reflect the audited financial statements for the General Fund Operating Fund. The sub-funds were excluded. They typically have minimal activity
General Fund Reserve Target Fiscal Year 18/19 Percent Amount Estimated ending general fund balance $8,012,000 Operating Expense $19,972,000 Debt Service 1,973,000 Subtotal $21,945,000 Less capital outlay - Net operating expenses $21,945,000 Reserve Calculation: Cash Flow 20% $4,389,000 Fiscal Stability 10% 2,194,000 Contingency 5% 1,097,000 Total Reserves 35% $7,681,000
General Fund Reserves $14 Millions Approximately $331,000 above threshold $12 Fiscal Year 18/19 Reserve Target: 35% $10 $8 $6 $4 $2 $- FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 Est. Est Unassigned Assigned
General Fund Projected Revenues: $23 million Fines and Intergovern. Interest, rents Charges for forfeitures revenues services and concessions 1% 1% 7% 2% Licenses and Other revenues permits 4% 2% Taxes 83%
General Fund Revenues Source Adopted Estimated Proposed Change Expenditures Property Taxes $6,573,000 $6,892,000 $7,071,000 $498,000 Sales & Use Tax 3,460,000 3,636,000 3,630,000 170,000 Franchise Tax 1,015,000 834,000 892,000 (123,000) TOT, License, Fees 5,173,000 5,774,000 5,886,000 713,000 Utility Users Tax 1,675,000 1,837,000 1,995,000 320,000 Business licenses 332,000 344,000 351,000 19,000 Other Taxes 156,000 156,000 156,000 - Intergovernmental 244,000 - 50,000 194,000 License,permits, imp. 511,000 642,000 600,000 89,000 Fines, Forfeiture 136,000 123,000 124,000 (12,000) Charges for Services 1,451,000 1,406,000 1,462,000 11,000 Interest, rents, conc. 377,000 232,000 287,000 (90,000) Other revenues 948,000 423,000 490,000 (458,000) Total $22,051,000 $22,299,000 $22,994,000 $943,000
Transient Occupancy Tax Trends (Excludes licenses and application fees) Millions $6 $5 $4 $3 $2 $1 $0 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY17-18 FY 18-19 Est. Proposed Commercial Residential
Property Tax Trends Projected growth at 4% $8 Millions $7 $6 $5 $4 $3 $2 $1 $0 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 18/19 Est. Proposed
Sales Tax Trends $4.5 Millions $4.1 $4.0 $3.6 $3.6 $3.5 $3.3 $3.3 $3.5 $3.1 $3.0 $2.5 $2.0 $1.5 $1.0 $0.5 $- FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 Est. Proposed
General Fund Expenditures & Transfers: $25 million Capital Outlay Salaries and 0.6% Benefits 39.6% Capital Projects 7.6% Transfers Combined 4.4% Salaries and Special Benefits: Programs 47.6% 0.2% Unfunded PERS Liability 8.0% Services, Debt Service - Supplies, Other POB 31.7% 7.9%
General Fund Expenditures Adopted Estimated Proposed Change Expenditures City Council $367,000 $373,000 $409,000 42,000 City Manager 821,000 832,000 958,000 137,000 City Attorney 287,000 376,000 429,000 142,000 Finance / IT 1,493,000 1,407,000 1,700,000 207,000 Police 5,796,000 5,379,000 5,934,000 138,000 Fire 3,069,000 2,991,000 3,128,000 59,000 Public Works 2,539,000 2,789,000 3,056,000 517,000 Community Dev. 1,800,000 1,893,000 2,163,000 363,000 Library 994,000 1,002,000 1,214,000 220,000 Recreation 564,000 582,000 729,000 165,000 Museum 229,000 237,000 252,000 23,000 Subtotal $17,959,000 $17,861,000 $19,972,000 $2,013,000 Capital Outlay/Projects 1,870,000 1,361,000 2,060,000 190,000 Debt Service 1,973,000 1,954,000 1,973,000 - Transfers 2,116,000 1,861,000 1,110,000 (1,006,000) Total $23,918,000 $23,037,000 $25,115,000 $1,197,000
PERS Unfunded Liability Projections Based on 2016 Actuarial Valuation $4.1 $4.5 Millions $3.9 $4.0 $3.5 $3.5 $3.0 $3.0 $2.7 $2.2 $2.5 $2.0 $1.7 $1.5 $1.0 $0.5 $0.0 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24
PER Sensitivity Rates Variances Based on 2016 CalPERS Actuarial Valuation Report $4.5 Millions $4.2 $4.0 $3.9 $3.7 $3.5 $3.5 $3.5 $3.1 $3.3 $3.0 $3.0 $2.7 $2.7 $2.5 $2.7 $2.2 $2.2 $2.2 $2.0 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 3% Return Assumed Rate 11% Return
Capital Outlay: $905,000 • General Fund: 145,000 ▫ Voice Over IP System ▫ Information Equipment Data Closet ▫ Abrasive Cleaning Station ▫ CEDD Code Compliance Vehicle • Other Funds: $760,000 ▫ Sewer One-ton dump truck Vac-Con truck replacement ▫ Supplemental Law Enforcement Services Fund Police Department radios: 25 for officers, 5 for civil
Capital Improvements: $6.5 million Road Maintenance and Rehabilitation Account (RMRA) Other Funds 4% 8% Measure X General Fund 8% 31% ASBS Grant 10% Capital Sewer Fund Contributions - 11% Library 28% Detailed Projects on Budget Pages: 146-172
Select Major Projects Project Title Amount Congress Avenue Road Rehabilitation $ 908,000 Stormwater Capture and Diversion, ASBS Grant 640,000 Annual Street Rehabilitation 630,000 14 th Street Sewer Line Project 525,000 Lovers Point Coast Access Project/RTCAP 500,000 Pine Avenue Safety Project 300,000 Point Pinos Trail Project 250,000 Trash Enclosures at Fandango’s Parking Lot 125,000 Sewer Line, Bathroom: Monarch Butterfly Sanctuary 195,000 Library Renovation $ 2,050,000 Library renovation primarily funded through capital contributions and $200,000 General Fund contribution Detailed Projects on Budget Pages: 146-172
Five-Year Forecast Funding gap prior to capital outlay FY 22/23: $1 million $27 Millions Drawdown of fund balance for capital $26 outlay and one-time purchases $25 $24 Funding for reserves and carry-forwards $23 $22 $21 Estimated Five Year Deficit: $2.2 million $20 $19 $18 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 Revenues & Transfers Operating Expenditures, Transfers, and Capital Outlay Expenditures (No Capital Outlay)
Ten Year Forecast Pension Obligation Bond is retired in FY 28/29 (Excludes capital outlay) 32 Millions Misc. Employee Portion of Pension Obligation Bond is paid 30 Revenues begin to exceed operating expenditures 28 26 24 22 20 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Revenues at base Expenditures Revenues with $1 million Revenues with $1.37 million
Enterprise Funds Beginning Revenues Expenditures Projected Fund / Transfers Ending Fund Balance Balance Cemetery $ 272,000 $ 363,000 $ 422,000 $ 214,000 Golf 2,805,000 376,000 371,000 2,811,000 Local Water Project 376,000 532,000 488,000 420,000 Sewer 17,130,000 3,231,000 3,482,000 16,879,000 Combined $20,583,000 $4,502,000 $4,763,000 $20,324,000
Internal Service Funds Beginning Revenues Expenditures Projected Fund / Transfers Ending Fund Balance Balance Employee Benefits $ 113,000 $ 289,000 $ 306,000 $ 97,000 Liability 308,000 458,000 456,000 308,000 OPEB 222,000 101,000 - 322,000 Workers Comp 272,000 707,000 707,000 273,000 Combined $915,000 $1,555,000 $1,469,000 1,000,000
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