Fiscal Year 18/19 Proposed Budget Budget Overview General Fund - - PowerPoint PPT Presentation

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

Fiscal Year 17/18 Adopted Estimated (1) 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

$- $2 $4 $6 $8 $10 $12 $14

FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 Est. FY 18/19 Est Millions Unassigned Assigned Approximately $331,000 above threshold

Fiscal Year 18/19 Reserve Target: 35%

General Fund Projected Revenues: $23 million

Taxes 83% Licenses and permits 2% Intergovern. revenues 1% Charges for services 7% Fines and forfeitures 1% Interest, rents and concessions 2% Other revenues 4%

Expenditures

General Fund Revenues

Source Adopted Estimated Proposed Change

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)

$0 $1 $2 $3 $4 $5 $6

FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY17-18 Est. FY 18-19 Proposed Millions

Commercial Residential

Property Tax Trends

Projected growth at 4%

$0 $1 $2 $3 $4 $5 $6 $7 $8 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 Est. 18/19 Proposed

Millions

Sales Tax Trends

$3.1 $3.3 $3.5 $3.3 $4.1 $3.6 $3.6 $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 Est. FY 18/19 Proposed Millions

General Fund Expenditures & Transfers: $25 million

Salaries and Benefits 39.6% Unfunded PERS Liability 8.0% Debt Service - POB 7.9% Services, Supplies, Other 31.7% Special Programs 0.2% Transfers 4.4% Capital Projects 7.6% Capital Outlay 0.6%

Combined Salaries and Benefits: 47.6%

Expenditures

General Fund Expenditures

Adopted Estimated Proposed Change

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

$1.7 $2.2 $2.7 $3.0 $3.5 $3.9 $4.1

$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24

Millions

Projections Based on 2016 Actuarial Valuation

PER Sensitivity Rates

$2.2 $2.7 $3.1 $3.7 $4.2 $2.2 $2.7 $3.5 $3.9 $2.2 $2.7 $3.0 $3.3 $3.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 Millions Variances Based on 2016 CalPERS Actuarial Valuation Report 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

General Fund 31% Sewer Fund 11% Capital Contributions - Library 28% ASBS Grant 10% Measure X 8% Road Maintenance and Rehabilitation Account (RMRA) 4% Other Funds 8% Detailed Projects on Budget Pages: 146-172

Select Major Projects

Detailed Projects on Budget Pages: 146-172

Project Title Amount Congress Avenue Road Rehabilitation $ 908,000 Stormwater Capture and Diversion, ASBS Grant 640,000 Annual Street Rehabilitation 630,000 14th 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

Five-Year Forecast

$18 $19 $20 $21 $22 $23 $24 $25 $26 $27

FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23

Millions

Revenues & Transfers Operating Expenditures, Transfers, and Capital Outlay Expenditures (No Capital Outlay)

Funding gap prior to capital outlay FY 22/23: $1 million Drawdown of fund balance for capital

• utlay and one-time purchases

Funding for reserves and carry-forwards

Estimated Five Year Deficit: $2.2 million

Ten Year Forecast

(Excludes capital outlay)

Pension Obligation Bond is retired in FY 28/29 20 22 24 26 28 30 32

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

Millions

Revenues at base Expenditures Revenues with $1 million Revenues with $1.37 million

• Misc. Employee Portion of Pension

Obligation Bond is paid Revenues begin to exceed

• perating expenditures

Enterprise Funds

Beginning Fund Balance Revenues Expenditures / Transfers Projected Ending Fund 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 Fund Balance Revenues Expenditures / Transfers Projected Ending Fund 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

Questions