Ge ne ra l F und a nd Me a sure Z F Y 2018- 2020 T wo- Ye a r - PDF document

1/4/2018 Ge ne ra l F und a nd Me a sure Z 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 City Co unc il Ja nua ry 16, 2018 1 Rive rside CA.g ov Rive rside CA.g ov BACKGROUND 1. De c e mb e r 2015 – City Co unc il a ppro ve d the mo ve to a two -ye a r b udg e t in the c o nte xt o f a five -ye a r pla n. 2. Se pte mb e r 2017 – sta ff b e g a n pla nning fo r the 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. 3. June 2018 – a do ptio n o f the Citywide F Y 2018-2020 T wo -Ye a r Budg e t a nd Ge ne ra l F und F Y 2018-2023 F ive - Ye a r Pla n a re a ntic ipa te d. 2 Rive rside CA.g ov 1

1/4/2018 PL ANNING PROCE SS F Y 2018- 2023 F IVE - YE 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  F ina nc ia l de c isio ns a re 2.1 S trate g ic Plan and F ive -Ye ar Capital I mpro ve me nt Plan ma de in the c o nte xt o f the F ive -Ye a r F ina nc ia l Pla n. F Y 2018- 2020 T wo- Ye a r Budg e t  Co mpre he nsive ve tting b y Budg e t E ng a g e me nt YE AR 3 YE AR 4 YE AR 5 YE AR 1 YE AR 2 F Y 20- 21 F Y 21- 22 F Y 22- 23 F Y 18- 19 F Y 19- 20 Co mmissio n, a pplic a b le T wo- Ye a r T wo- Ye a r T wo- Ye a r T wo- Ye a r T wo- Ye a r c itywide Bo a rd a nd Budg e t Budg e t Budg e t Budg e t Budg e t Co mmissio ns, City Co unc il a nd the Rive rside Co mmunity.  Qua rte rly re ve nue , F o c us o n de ta ile d Mid-Cyc le Upd a te d Annua lly e xpe nditure , de b t a nd b udg e t re vie w to de ve lo pme nt fo r inc o rpo rate inve stme nt re vie ws a re two -ye a rs with five - upda te s to c o nduc te d. ye a r fina nc ial Rive rside 2.1 a nd fo re c a sts. re fine me nts to Inc o rpo ra te F ive -Ye a r Rive rside 2.1. F ina nc ial Pla n. 3 Rive rside CA.g ov F Y 2018- 2020 BUDGE T T HE ME S F Y 2018- 2020 KE Y BUDGE T ARY T HE ME S Promise s Ma de , F ina nc ia l Ma inta ining T ra nspa re nt & Promise s Ke pt F ina nc ia l Ac c ura c y Re sponsibility & E sse ntia l Se rvic e s Pa rtic ipa tory Disc ipline a nd Infra struc ture Proc e ss E xe c utive F inanc ial re spo nsib ility I n c o nc e rt with the T hro ug h c re atio n o f the With the ado ptio n o f the F ive -Ye ar manag e me nt se e s a re q uire s Re spo nsib le S pe nding Budg e t E ng ag e me nt Me asure Z Spe nding Plan in May c o mpre he nsive data ac kno wle dg ing and Visio n Ple dg e (Oc t. Co mmissio n (BE C), the 2016, the City made financ ial and c o lle c tio n and fully disc lo sing the 2016), the City will find City c o mmitte d to a o pe ratio nal pro mise s to the analyzatio n e ffo rt to City’ s c ritic al funding ways to addre ss the pub lic ve tting o f its ac hie ve ac c urate re q uire me nts, inc luding c halle ng e s in funding financ e s. T he two -ye ar Rive rside c o mmunity. Staff is financ ial targ e ts and unfunde d ne e ds. its e xisting pro g rams b udg e t pro c e ss c o mmitte d to b uilding o n the pro je c tio ns as a c o re F isc al disc ipline and se rvic e s, and inc lude s many financ ial suc c e sse s o f F Y 2016-2018 te ne t, e sse ntial fo r the de mands City ide ntifying re ve nue s fo r o ppo rtunitie s fo r the b y pre se rving se rvic e s and finding City’ s future fisc al De partme nts o pe rate the c ritic al ne e ds that Rive rside c o mmunity to additio nal e ffic ie nc ie s to e nsure fo undatio n. within the ir b udg e t. have b e e n unfunde d c o ntrib ute , inc luding Manag e me nt ac tio n fo r ye ars, inc luding City Co unc il, BE C, and the City’ s c o ntinue d financ ial c alls fo r time ly re pair, mainte nanc e ward-spe c ific suc c e ss and ac hie ve me nt o f its re c o mme ndatio n to and re plac e me nt o f me e ting s. Additio nally, Rive rside 2.1 strate g ic initiative s. City Co unc il to addre ss o ur b uilding s, ro ads re ade r-frie ndly b udg e t any financ ial issue s and side walks, pub lic atio ns will b e c o nfro nting the City. stre e tlig hts, and fle e t made availab le . inc luding first re spo nde r ve hic le s. 4 Rive rside CA.g ov 2

1/4/2018 ST RONG F OUNDAT ION ST RONG  Ge ne ra l o b lig a tio n F INANCIAL F OUNDAT ION b o nd ra ting inc re a se d fro m A+ to AA– b y S&P Me a sure Z •  F F Y 2016-2018 b udg e t Y 2017-2018 pro je c te d • re duc tio ns Ge ne ra l F und re se rve o f Budg e t E ng a g e me nt • Co mmissio n mo re tha n 20% T wo -ye a r b udg e t a nd • five -ye a r pla n 5 Rive rside CA.g ov BOT T OM L INE F latte ning o f Re ve nue s • Annua lize d g ro wth ra te in c o re re ve nue so urc e s c o ntinuing to slo w ; 1.5% - o 2% a s c o mpa re d to 7% fro m F Y 2013-14 to F Y 2014-15 Me asure ZCo ntrib utio n • I n F Y 2017-18, $20.5M to Ge ne ra l F und. Sta ff a ntic ipa te s c o ntrib utio ns o f o $13.2M in F Y 2018-19 a nd $18.3M in F Y 2019-20 Pe rso nne l Co sts • Mo re tha n 80% o f to ta l e xpe nditure s, c o nsiste nt with o the r full-se rvic e c itie s o I nc re a sing Ca lPE RS c o sts o Manag e d Saving s • I mple me nting pe rma ne nt re duc tio ns will e limina te the ma jo rity o f pro je c te d o sho rtfa lls in the F Y 2018-2020 T wo -Ye a r Budg e t Ge ne ral F und Sub sidie s • Stre e t L ig hting Asse ssme nt Distric t, c ro ssing g ua rd c o ntra c t, a nd o the rs o 6 Rive rside CA.g ov 3

1/4/2018 BASE L INE ASSUMPT IONS - RE VE NUE S Sale s T ax • Slo wing ; 2% F Y 2018-19, o 1.5% F Y 2019-20 Pro pe rty T ax • Gro wing ; 3.7% pe r ye a r o pro je c te d fo r F Y 2018-20 Utility Use r T ax • F la t sinc e F Y 2012-13 o Ge ne ral F und T ransfe r • Me a sure Z o E le c tric & wa te r o Othe r Re ve nue s • Mo stly fla t o 7 Rive rside CA.g ov HOW DOE S RIVE RSIDE COMPARE ? Rive rside re ve nue • re c o ve ry a t just 97.3% o f pre -re c e ssio n le ve ls, in line with o the r c itie s Co ntinue d e c o no mic • 97.3 unc e rta inty Riverside Slo wing re ve nue s in • po st-re c e ssio n pe rio d “T he drastic e c o no mic and te c hno lo g ic al c hang e s o c c urring in the mo st re c e nt re c o ve ry pe rio d, as we ll o ve r 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 owth during pe rio ds o f e c o no mic e xpansio n.” - Natio nal L e ag ue o f Citie s 2017 “City F isc al Co nditio ns” - Natio nal L e ag ue o f Citie s 2017 “City F isc al Co nditio ns” 8 Rive rside CA.g ov 4

1/4/2018 BASE L INE ASSUMPT IONS - E XPE NDIT URE S • Cha rg e s a nd T ra nsfe rs • Pe rso nne l o Ne w Co st Allo c a tio n Pla n o Pa rtne rship Co mpe nsa tio n Mo de l • Sub sidie s o Ca lPE RS • No n-Pe rso nne l o I nc re a se s b a se d o n histo ric a l CPI • De b t Se rvic e o F Y 2016-17 BAN re fina nc ing re duc e d Ge ne ra l F und de b t 9 Rive rside CA.g ov PE RSONNE L COST S • 7% a nnua l inc re a se in Pe rso nne l c o sts pe r ye a r F isc a l Ye a rs 2018-2023 • Ca lPE RS la rg e st c o st drive r, o utpa c ing sa la rie s • Pa rtne rship Co mpe nsa tio n Mo de l tie s pa y ra ise s fo r mo st re pre se nte d e mplo ye e s to c o re re ve nue so urc e s 10 Rive rside CA.g ov 5

1/4/2018 PE RSONNE L COST S 11 Rive rside CA.g ov NON- PE RSONNE L COST S • L o we r tha n prio r ye a rs o Co st sa ving s e ffo rts o Sta ff re c o mme nds pe rma ne nt imple me nta tio n o f c o sts re duc tio ns a c hie ve d in prio r ye a rs thro ug h “ma na g e d sa ving s” o I nc re a se fro m F Y 2017-18 la rg e ly due to c o ntrib utio ns to Se lf-I nsura nc e F und • Disc re tio na ry vs. no n- disc re tio na ry o Re vie w e xisting c o ntra c ts 12 Rive rside CA.g ov 6

1/4/2018 OT HE R E XPE NDIT URE S • Spe c ial Pro je c ts o 3% - appro ximate ly $8 millio n pe r ye ar • Mino r Capital o <1% - appro ximate ly $2 millio n pe r ye ar • E q uipme nt o <1% - $400,000 pe r ye ar • De b t o $24.4 millio n in F Y 2018-19 o $23.2 millio n in F Y 2019-20 13 Rive rside CA.g ov CHARGE S AND T RANSF E RS Cha rg e s T o/ F rom T ra nsfe rs • Co st Allo c a tio n Pla n (CAP) • Spe c ia l Distric ts re va mpe d o Stre e t L ig hting Asse ssme nt Distric t o Co mpre he nsive re vie w a nd upda te o f a llo c a tio n b a se s • E nte rta inme nt F unds o Ge ne ra l F und re struc turing o Co nve ntio n Ce nte r, Munic ipa l o So me dire c t c ha rg e s mo ve d to CAP Audito rium, F o x, e tc . • Cha ng e to Ge ne ra l F und o Ha ve tra ditio na lly re q uire d Ge ne ra l F und sub sidie s whe n o F Y 2018-19 $7 millio n a dditio na l a llo c a tio ns to o the rs re ve nue s fa ll sho rt o f o pe ra ting o F Y 2019-20 $462K a dditio na l e xpe nditure s a llo c a tio ns to o the rs (in line with c o st inc re a se s) 14 Rive rside CA.g ov 7