Loading...
CC 2015-03-16_FY 2015-17 Biennial Budget Process MEMORANDUM TO: CITY COUNCIL FROM: BOB MC FALL, INTERIM CITY MANAGER STEVE ANNIBALI, CHIEF OF POLICE GEOFF ENGLISH, DIRECTOR OF PUBLIC WORKS STEVE LIEBERMAN, FIRE CHIEF DEBBIE MALICOAT, DIRECTOR OF ADMINISTRATIVE SERVICES TERESA MC CLISH, DIRECTOR OF COMMUNITY DEVELOPMENT JOHN ROGERS, DIRECTOR OF RECREATION SERVICES KELLY WETMORE, DIRECTOR OF LEGISLATIVE & INFORMATION SERVICES SUBJECT: PRESENTATION ON STATUS OF FISCAL YEAR 2014-15 BUDGET AND TRENDS IN PREPARATION OF THE FISCAL YEAR 2015-16 AND 2016-17 BIENNIAL BUDGET DATE: MARCH 16, 2015 RECOMMENDATION: It is recommended the City Council receive a general overview of the Fiscal Year 2014-15 Budget, updates on future revenue and operational trends, and discussion on Council goals and priorities. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no direct cost impact from the recommendations at this time. There are significant costs and staffing impacts associated with budget goals, however those will be identified and addressed as part of the budget process. BACKGROUND: The City is beginning the process of preparing the Fiscal Year 2015-16 and Fiscal Year 2016-17 Biennial Budget. Establishing budget goals is one of the first steps in the process, which provides for initial City Council input to assist staff in preparing the budget. It does not address funding availability, but provides staff with direction on how to prioritize the proposed allocation of available funding. Goals that cannot be achieved in the biennial budget will be identified as needs in the long-range financial forecast. In January 2013, as part of the FY 2013-14 and 2014-15 Biennial Budget, the City Council reaffirmed a number of citywide goals and actions presented in the Critical Needs Action Plan. At that time, the City Council adopted the following Major Citywide Goals:  Complete design and pursue approval of State and Federal funding for the Brisco Road Interchange project. Item 4.a. - Page 1 PRESENTATION ON STATUS OF FISCAL YEAR 2014-15 BUDGET AND TRENDS IN PREPARATION OF THE FISCAL YEAR 2015-16 AND 2016-17 BIENNIAL BUDGET MARCH 16, 2015 PAGE 2  Fully fund and construct the pavement management program to establish and maintain a schedule of improving all streets in the City on a 7-year cycle.  Continue an escalated sidewalk repair program.  Address the Police Department’s facility needs.  Address the Corporation Yard facility needs.  Implement recommendations to address the City’s water needs through a combination of conservation measures, potential recycling efforts and additional water supply sources that may become available.  Implement a City Charter planning process.  Develop and implement recommendations to enhance customer service. In addition to Major Citywide Goals, a number of Departmental Project Goals, Ongoing Department Service Level Goals, and Service Level Increases and/or New Funding Items were presented to the Council. At that time, goals were based on an assumption of maintaining existing service levels. Prior budget reductions and organizational restructuring was instrumental in reducing staffing while minimizing reductions in service levels. As the City emerges from the economic recession, it will be important to address the changing financial circumstances and prioritize actions that will lead to the sustainability of the City. Some actions that were taken in the past, under recessionary economic circumstances, were necessary and prudent in the short term, but may not be sustainable in the long term. As additional resources become available, it will be critical for the City to prioritize the use of those resources and balance the ongoing needs of the organization to provide day-to-day services as well as plan for the future. In order for the City Council to make decisions regarding goals and priorities, staff must provide information about the current status of achieving the adopted goals and initiatives, trends that are foreseen and anticipated needs or challenges. ANALYSIS OF ISSUES: Governmental Budget Overview As displayed on the chart on the next page, approximately 55% of all revenue is derived from taxes, with property tax, sales and use tax, and transient occupancy tax being the largest of those sources. An additional 36% of citywide revenues are for services provided, such as water, sewer, recreation programs and planning fees. Item 4.a. - Page 2 PRESENTATION ON STATUS OF FISCAL YEAR 2014-15 BUDGET AND TRENDS IN PREPARATION OF THE FISCAL YEAR 2015-16 AND 2016-17 BIENNIAL BUDGET MARCH 16, 2015 PAGE 3 The General Fund is the City’s primary operating fund and most of the City’s basic services are included here, such as general government, community development, police, public works, recreation and the cost of fire services. The General Fund is primarily supported by taxes and assessments, notably property tax and sales tax, and is also supported by user fees, licenses and permits, franchise fees and interest income. In addition, the General Fund provides services, such as payroll, building maintenance and information technology support to other funds and approximately 17% of General Fund revenues are transfers from other funds for these services, as shown below. Taxes comprise the largest source of revenue in the General Fund; therefore, fluctuations in the amount of taxes received can have profound impacts on the City’s ability to provide services. As shown below, General Fund tax revenues reached their recessionary lows in Fiscal Year 2009-10 and have been slowly recovering since that time. Other Taxes & Assessments 24% Property Tax 16% Sales & Use Tax 12% TOT 3% Aid from Other Governments 5% Charges for Services 36% Other Revenues 4% Revenue Taxes & Assessments 71% Licenses & Permits 2% Charges for Services 6% Other Revenue 4% Transfers 17% General Fund Revenue 2014-15 Item 4.a. - Page 3 PRESENTATION ON STATUS OF FISCAL YEAR 2014-15 BUDGET AND TRENDS IN PREPARATION OF THE FISCAL YEAR 2015-16 AND 2016-17 BIENNIAL BUDGET MARCH 16, 2015 PAGE 4 Citywide, the two largest uses of money are for employee salary and benefits and the investment in capital improvements, each of these comprising approximately 36% of total expenses, as shown in the chart below. An additional 26% is spent on current expenses, such as contracts for dispatching services from the Sheriff’s Office, fire and life safety services from Five Cities Fire Authority, supplies, travel and training, utilities and insurance. As presented by the Central Coast Economic Forecast and Beacon Economics, California is one of the stronger economies in the nation, and economic growth is expected to continue to accelerate through 2015. Incomes are starting to grow, interest rates are going to stay low and unemployment will continue to be at historic lows. Tourism, particularly - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 In T h o u s a n d s Fiscal Year General Fund Tax Revenue Property Tax Sales & Use Tax Transient Occupancy Tax Franchise Fees Other Taxes Salaries and Benefits 36% Current Expenses 26% Debt Service 1% Capital Improvement 36% Operating Equipment 1% Expenses Item 4.a. - Page 4 PRESENTATION ON STATUS OF FISCAL YEAR 2014-15 BUDGET AND TRENDS IN PREPARATION OF THE FISCAL YEAR 2015-16 AND 2016-17 BIENNIAL BUDGET MARCH 16, 2015 PAGE 5 from international travelers is steadily increasing, and California is outpacing the rest of t he nation in this area. In our County, tourism is still leading the economic recovery, but health industries are growing. On the flip side, Beacon Economics believes that there are still structural challenges remaining: pensions are still underfunded, the State is behind on infrastructure investments, short on housing, needs more spending for education and there are likely to be pressures from public employee unions for pay increases. In their opinion, it’s time to begin focusing on longer-term issues. Recent revenue measures that were approved at the November election are projected to produce $630 million over the next 8-12 years in this County. This means public sector spending will increase and infrastructure projects are the primary way these funds will be spent. This is certainly true for the bond measure in Grover Beach, which will be focused on street improvements. In addition, there are a number of private developments across the County that are underway or planned, from new hotels to housing and retail. The economic recovery is broad based and wide spread throughout the County. Ten Year General Fund Forecast and Ten Year Local Sales Tax Fund Plan The City updates the Ten Year General Fund forecast each year, which aids in making financial decisions and looking at the long term impacts of those decisions. In addition, staff prepares a ten year spending plan for the use of the local sales tax that was approved by the voters in 2006. The City has been diligent in using the local sales tax funds for the four purposes identified: infrastructure improvements, including the street, drainage and creek systems; transportation projects; public safety needs; and facility upgrades to meet Americans with Disabilities Act (ADA) requirements. It is important to note that this is not the budget; it does not establish priorities or determine the value of services provided. It is just a tool that helps provide a framework for understanding the financial environment that the City is operating within. It can be a very useful tool in understanding long term impacts of decisions made today, but at the end of the day, it is not the budget. Because economic cycles happen and another recession will likely occur, both plans assume revenue growth for the first six years, followed by three years of recessionary declines similar to the declines experienced in the last recession. Revenue growth is higher in the early years of the plan, approximately 4%, tapering to 1% and then revenues decline by FY 2021-22. This is consistent with the Central Coast Economic Forecast assumption that growth will continue to accelerate through 2015. Expenditures for non-staffing related costs are assumed to grow by 1.5% to 3.0% by 2017- 18 followed by lower growth assumptions in future years. Staffing related costs, exclusive of CalPERS retirement costs, are anticipated to increase by 2.0% to 3.5%. CalPERS retirement costs are currently projected to grow by amounts provided by CalPERS and will be refined by the City’s contract actuary, if different . CalPERS costs are a significant Item 4.a. - Page 5 PRESENTATION ON STATUS OF FISCAL YEAR 2014-15 BUDGET AND TRENDS IN PREPARATION OF THE FISCAL YEAR 2015-16 AND 2016-17 BIENNIAL BUDGET MARCH 16, 2015 PAGE 6 component of the General Fund’s costs and are projected to increase at a rate higher than revenue growth, increasing the challenges in the General Fund. Results of the General Fund Forecast indicate that there will be very little capacity to add new services or programs, unless other efficiencies or reductions take place or new revenue sources are created. In fact, assuming today’s expenditure levels combined with the known increases to pension costs, the General Fund will need to use nearly $300,000 in reserves in FY 2015-16. Without corrective action, the forecast predicts that expenditures will continue to outpace revenues and at the end of the ten year period, the General Fund would have no remaining fund balance. Prudent budgeting and financial planning will prevent this from actually occurring, but as the graph below illustrates, in order to achieve financial sustainability, a combination of expenditure containment and revenue expansion are necessary in the long term. The Local Sales Tax Fund is in a slightly different position. Much of the funding is targeted toward capital improvements or one-time projects and is not impacted by the increase in CalPERS costs, allowing additional revenue generated to provide the ability to fund additional projects or programs. As shown in Attachment 2, the current ten year plan anticipates additional capacity to fund projects in the next several years. Staff will be reviewing the current ten year plan and will make appropriate recommendations for the best use of any available resources during the upcoming budget process. Current status of reserves The Council has adopted fiscal policies related to reserves, or minimum fund balances. In 13,000 14,000 15,000 16,000 17,000 18,000 19,000 In t h o u s a n d s Forecast General Fund Revenue vs Expense Gap Rev Exp Item 4.a. - Page 6 PRESENTATION ON STATUS OF FISCAL YEAR 2014-15 BUDGET AND TRENDS IN PREPARATION OF THE FISCAL YEAR 2015-16 AND 2016-17 BIENNIAL BUDGET MARCH 16, 2015 PAGE 7 the General Fund, the policy is to maintain a minimum reserve of 15% with a goal of 20% of expenditures. As reported in the FY 2014-15 Mid-Year Budget Review, the General Fund is projected to end FY 2014-15 with reserves equal to 27% of expenditures. The Water Fund and Sewer Fund also have reserve policies equal to 90 days of operating expenses plus $500,000. Both funds are projected to meet or exceed these reserve minimums at fiscal year end. Per capita comparisons to surrounding cities Looking at how the City compares on a per capita basis to surrounding cities can assist in providing a perspective on the City’s operations and may help in identifying revenue opportunities. The following charts compare a number of key revenues among nearby cities as well as total revenues and total expenses. $110 $122 $125 $264 $281 $297 $488 $533 $- $100 $200 $300 $400 $500 $600 Sales Tax Per Capita $147 $277 $282 $285 $379 $440 $473 $544 $- $100 $200 $300 $400 $500 $600 Property Tax Per Capita $21 $27 $28 $48 $117 $133 $273 $1,037 $- $200 $400 $600 $800 $1,000 $1,200 TOT Per Capita $21 $27 $28 $48 $117 $133 $273 $- $50 $100 $150 $200 $250 $300 TOT Per Capita - without Pismo Beach Item 4.a. - Page 7 PRESENTATION ON STATUS OF FISCAL YEAR 2014-15 BUDGET AND TRENDS IN PREPARATION OF THE FISCAL YEAR 2015-16 AND 2016-17 BIENNIAL BUDGET MARCH 16, 2015 PAGE 8 These graphs demonstrate that the City operates with one of the lowest costs per capita in the area. That also means that expense budgets are very lean and any additional reductions in expenses will result in service level reductions. They also demonstrate that there is revenue growth potential and focusing efforts on revenue generation, through a variety of tactics, would likely yield positive results. In order to see how the various communities may have changed over time, the following charts look at total revenues and total expenses ten years ago. These graphs show that on a per capita basis, nearly all of the communities have experienced overall growth in revenues. The large growth in Pismo Beach is nearly all attributed to Transient $1,020 $1,094 $1,461 $1,529 $1,913 $2,312 $2,519 $4,245 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 Total Revenues Per Capita $845 $944 $1,290 $1,423 $1,726 $2,133 $2,424 $3,594 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Total Expenses Per Capita Item 4.a. - Page 8 PRESENTATION ON STATUS OF FISCAL YEAR 2014-15 BUDGET AND TRENDS IN PREPARATION OF THE FISCAL YEAR 2015-16 AND 2016-17 BIENNIAL BUDGET MARCH 16, 2015 PAGE 9 Occupancy Tax (TOT), which increased from $603 to $1,037 per capita during the 10 year period. Growth in San Luis Obispo was predominately driven by sales tax and secondarily by TOT. In raw numbers, Paso Robles has seen revenues increase over the period; however their population has also increased, so the per capita revenue has remained relatively unchanged. Growth in Arroyo Grande has come from TOT and property tax primarily. $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 Revenues Per Capita - Current & 10 yrs ago $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Expenses Per Capita - Current & 10 yrs ago Item 4.a. - Page 9 PRESENTATION ON STATUS OF FISCAL YEAR 2014-15 BUDGET AND TRENDS IN PREPARATION OF THE FISCAL YEAR 2015-16 AND 2016-17 BIENNIAL BUDGET MARCH 16, 2015 PAGE 10 Status of Critical Needs Action Plan items and Citywide goals  Complete design and pursue approval of State and Federal funding for the Brisco Road Interchange project. Status: On March 10, 2015, Council received an update on addressing deficiencies at the Brisco Road/Route 101 Interchange. $6.4 million has been programmed in State Transportation Improvement Funds toward construction of the project. There are two options for consideration in the Project Approval and Environmental Document (PA&ED) that is anticipated to be released in Summer 2015. Construction is currently programmed in FY 2017/18.  Fully fund and construct the pavement management program to establish and maintain a schedule of improving all streets in the City on a 7-year cycle. Status: We are currently on Year six (6) of the Pavement Management Program. In Years 1 through 5 we performed approximately 42 miles of Street Resurfacing (Slurry Seal, Micro-surfacing) and 5 miles of Asphalt Paving. The City has a total of 65 miles of roadway in inventory. We anticipate completing street resurfacing work on all City streets by year seven (7), the last year of the program. Staff will be evaluating the condition all City streets in FY 15/16 and will present the City Council with an updated Pavement Management program.  Continue an escalated sidewalk repair program. Status: Approximately 15,000 square feet of sidewalk, curb and gutter, and driveway approaches over the last three years. Sidewalk repair efforts, although addressing the most significant displacement locations, are not sufficient to meet the substantial backlog of sidewalk repair needs.  Address the Police Department’s facility needs. Status: The Police Station remodel project is nearing completion, with substantial completion anticipated by March 31, 2015. There are a number of items that will need to be finalized before the department can reoccupy the building, which is expected to take the month of April. Department relocation is currently anticipated to occur by June 1, 2015.  Address the Corporation Yard facility needs. Status: The Corp Yard building is currently under construction and is on schedule to be substantially complete by July 1, 2015. The construction of the new Public Works Administration building is the first phase of the addressing departmental needs and improvement at the Public Works Yard. Future rehabilitation of the existing buildings and ADA improvements are still necessary.  Implement recommendations to address the City’s water needs through a combination of conservation measures, potential recycling efforts and additional water supply sources that may become available. Status: On June 10, 2014, the Council approved a comprehensive strategy to address the City's long-term water supply needs. The primary objective of the program was to address long-term projected water demand through increased water conservation measures, to protect existing water supply by pursuing a project that will use recycled Item 4.a. - Page 10 PRESENTATION ON STATUS OF FISCAL YEAR 2014-15 BUDGET AND TRENDS IN PREPARATION OF THE FISCAL YEAR 2015-16 AND 2016-17 BIENNIAL BUDGET MARCH 16, 2015 PAGE 11 water to prevent seawater intrusion, and to coordinate with neighboring jurisdictions to manage the overall water supply in the most effective manner possible. On March 10, 2015 Council received an update that the City’s water conservation programs were on track.  Implement a City Charter planning process. Status: A City Charter ballot measure was placed on the ballot in November 2014 and was not successful.  Develop and implement recommendations to enhance customer service. Status: In 2012, the Council adopted an update to the City’s Econom ic Development Element of the General Plan to provide direction for future decisions regarding land use, capital improvements and resource allocation. It set forth a number of specific goals to help the City better streamline processes, become more business friendly and encourage investment. Additional efforts comprised customer service enhancements including the launching of a more user-friendly website, a new Voice Over IP (Shoretel) telephone system, and implementation of CitizenServe software for business licenses, building and planning permits. Overview of current Capital Improvement Program The Current Five-Year Capital Improvement Program (CIP) includes nearly $3 million per year in upgrades, maintenance and replacements to the City’s infrastructur e. This includes $800,000 to $1.3 million per year of investment in water and sewer projects identified in the respective Master Plans, such as reservoir maintenance activities, lift station maintenance, and sewer line rehabilitation. In addition, over $800,000 per year in Local Sales Tax funding is allocated toward the City’s pavement management program. There are projects that will be improving the Bridge Street bridge, Traffic Way bridge and Swinging Bridge programmed in the CIP. The two most significant CIP projects currently in progress are the Police Station remodel and the Corporation Yard renovation. Not only do these represent significant financial investments in the City’s infrastructure, they represent significant progress in achieving two Citywide goals. Other projects of note that are completed include the undergrounding of utilities on East Grand Avenue, improvements to drainage and pavement on Larchmont Street, and improvements to the Old Ranch Road properties. Issues the City will be facing in the next few years There are a number of challenges that each department in the City will be facing in the near term as well as the long term. Department Directors will address these in greater detail in a presentation to the Council at the March 16, 2015 meeting, but highlights include:  Increased reliance on technology and increased need for technology support  Recruitment and retention of employees  Aging equipment/infrastructure and deferred maintenance  Service level expectations of community  Facility needs  Increased regulatory requirements Item 4.a. - Page 11 PRESENTATION ON STATUS OF FISCAL YEAR 2014-15 BUDGET AND TRENDS IN PREPARATION OF THE FISCAL YEAR 2015-16 AND 2016-17 BIENNIAL BUDGET MARCH 16, 2015 PAGE 12 ALTERNATIVES: The following alternatives are provided for City Council consideration: 1. Provide direction to staff. ADVANTAGES: The advantages of receiving status information related to current goals, programs and projects as well as potential future needs is that the City Council is able to make well informed decisions. DISADVANTAGES: There are no disadvantages identified to receiving this information. ENVIROMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted in front of City Hall on Thursday, March 12, 2015. The Agenda and report were posted on the City’s website on Friday, March 13, 2015. No public comments were received. Attachment(s): 1. General Fund ten year forecast 2. Local Sales Tax Fund ten year plan Item 4.a. - Page 12 General Fund Ten Year Financial Plan (Minimum 15% Fund Balance Policy/20% Fund Balance Goal)Attachment 1 Actual Projected In Thousands 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 REVENUES & OTHER SOURCES Sales Tax - General 3,401$ 3,399$ 3,535$ 3,659$ 3,768$ 3,881$ 3,920$ 3,960$ 3,841$ 3,649$ 3,393$ 3,393$ Sales Tax - Proposition 172 142 110 114 118 122 126 127 128 124 118 110 110 Property Tax 3,981 4,056 4,218 4,387 4,541 4,699 4,770 4,865 4,719 4,578 4,440 4,440 Transient Occupancy Tax 841 857 891 927 955 983 1,013 1,043 1,043 1,043 1,043 1,043 Business Licenses 86 85 87 89 92 95 98 101 104 107 110 113 Franchise Fees 595 570 581 593 605 617 629 642 655 668 681 695 Real Property Transfer Tax 105 80 82 84 87 89 92 95 98 101 104 107 Motor Vehicle In Lieu 1,268 1,361 1,415 1,472 1,524 1,577 1,601 1,633 1,584 1,536 1,490 1,490 Other Subventions & Grants 161 119 121 123 125 128 130 133 135 138 141 144 Recreation Fees 733 626 642 658 678 698 719 741 763 786 810 835 Permits & Licenses 263 304 312 319 329 339 349 360 371 382 393 405 Community Development Charges 179 175 178 180 184 188 191 195 199 203 207 211 Other Service Charges 27 58 59 60 61 62 63 65 66 67 69 70 Fines & Forfeitures 45 50 51 52 53 54 55 56 57 58 59 60 Use of Money & Property 320 295 299 304 310 316 323 329 336 342 349 356 Other Revenues 368 168 103 105 108 112 115 118 122 126 129 133 Transfers Transfer from Local Sales Tax Fund 150 193 220 225 229 234 238 344 348 353 358 365 Personnel, Cost & Operating Transfers 2,240 2,235 2,240 2,244 2,249 2,305 2,363 2,422 2,483 2,545 2,608 2,674 Total Revenues 14,905 14,741 15,148 15,599 16,019 16,503 16,796 17,229 17,047 16,800 16,496 16,645 EXPENDITURES & OTHER USES Salary & Benefits 8,521 9,084 9,935 10,270 10,754 11,105 10,815 11,144 11,345 10,600 10,723 10,814 Pre-fund Retiree Medical Costs 200 200 239 239 239 239 239 239 239 239 239 239 Operating Programs 4,281 5,004 4,851 4,948 5,096 5,249 5,406 5,569 5,708 5,851 5,968 6,027 Reductions in services (200) (200) (200) (200) Debt Service 192 249 248 248 248 77 77 77 77 77 77 77 Capital Outlay 455 980 150 200 225 225 225 250 250 250 250 250 Vehicle Replacements 250 260 270 280 290 300 310 Technology Replacements 150 160 170 180 190 200 210 Total Expenditures 13,649 15,517 15,422 15,905 16,562 17,295 17,183 17,719 17,879 17,297 17,556 17,727 Revenues Over (Under) Expend.1,256 (776) (274) (306) (544) (791) (387) (490) (832) (497) (1,060) (1,082) Fund Balance Goal-20% Expenditures 2,730 3,103 3,084 3,181 3,312 3,459 3,437 3,544 3,576 3,459 3,511 3,545 FUND BALANCE START OF YEAR 3,687 4,943 4,453 4,479 4,482 4,260 3,801 3,743 3,592 2,760 2,262 1,202 END OF YEAR 4,943 4,453 4,479 4,482 4,260 3,801 3,743 3,592 2,760 2,262 1,202 120 FUND BALANCE POLICY - Excess/(Gap)2,213 1,349 1,394 1,301 948 342 306 48 (816) (1,197) (2,309) (3,425) Ending Fund Balance %36%29%29%28%26%22%22%20%15%13%7%1% n Retiree Medical Cost is based on Actuarial estimates (not including FCFA ARC) TEN YEAR FINANCIAL PLAN Page 1 of 2 Item 4.a. - Page 13 PROJECTION FACTORS 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 DEMOGRAPHICS Population 1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0% Housing Units 1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0% Inflation 1.5%1.5%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0% Compound Pop & Inflation 2.5%2.5%3.0%3.0%3.0%3.0%3.0%3.0%3.0%3.0% KEY REVENUES Sales Tax 4.0%3.5%3.0%3.0%1.0%1.0%-3.0%-5.0%-7.0%0.0% Property Tax 4.0%4.0%3.5%3.5%1.5%2.0%-3.0%-3.0%-3.0%0.0% TOT 4.0%4.0%3.0%3.0%3.0%3.0%0.0%0.0%0.0%0.0% Business License/Tax Franchise Fees 2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0% Motor Vehicle In Lieu 4.0%4.0%3.5%3.5%1.5%2.0%-3.0%-3.0%-3.0%0.0% Development Review Fees Recreation Fees EXPENDITURES Part Time Salary & Non-PERS Benefits 2.0%2.0%2.5%2.5%3.0%3.5%3.0%2.5%2.0%1.0% Operating Programs 1.5%2.0%3.0%3.0%3.0%3.0%2.5%2.5%2.0%1.0% Debt Service 2014-15 Projection Plus Compound Population and Inflation 2014-15 Projection Plus Compound Population and Inflation Based on Lease Purchase Contract for Vehicle Replacement TEN YEAR FINANCIAL PLAN PROJECTIONS 2014-15 Projection Plus Compound Population and Inflation Page 2 of 2 Item 4.a. - Page 14 Attachment 2 Item Total FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 22-23 Castillo Del Mar $50,000 $100,000 $0 $0 $0 $0 $0 $0 $0 $0 East Branch Streetscape $50,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Fair Oaks/Orchard Intersection Imp.$0 $50,000 $0 $0 $0 $0 $0 $0 $0 $0 Brisco/Halcyon Interchange $0 $0 $200,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 Subtotal Transportation $100,000 $150,000 $200,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 Pavement Management $632,432 $675,000 $700,000 $725,000 $750,000 $775,000 $800,000 $825,000 $850,000 $875,000 Sidewalks and Cross Gutters $100,460 $100,000 $105,000 $110,000 $115,000 $120,000 $125,000 $130,000 $130,000 $130,000 Street Maintenance $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 ADA Improvements $45,000 $75,000 $80,000 $85,000 $90,000 $95,000 $100,000 $105,000 $105,000 $105,000 Project Studies and Planning $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Construction Mgmt & Inspection (in-house)$30,000 $42,700 $43,554 $44,425 $45,314 $46,220 $47,144 $48,087 $49,049 $50,030 East Branch Paulding Wall $25,000 $50,000 $0 $0 $0 $0 $0 $0 $0 $0 Alpine Street $75,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Larchmont Street Improvements $243,055 $0 $0 $0 $0 $0 $0 $0 $0 $0 Underground Utilities $17,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Park Equipment Replacement $0 $25,000 $25,000 $30,000 $30,000 $35,000 $35,000 $40,000 $40,000 $45,000 Street Tree Trimming $0 $25,000 $25,000 $30,000 $30,000 $35,000 $35,000 $40,000 $40,000 $45,000 Swinging Bridge Reinforcement $40,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Traffic Way Bridge $8,147 $3,000 $45,000 $0 $0 $0 $0 $0 $0 $0 Le Point Street Parking Lot $260,293 $100,000 $100,000 $100,000 $100,000 $100,000 $300,000 $0 $0 $0 Le Point Street Parking Lot-Lease $49,317 $32,000 $32,000 $32,000 $32,000 $32,000 $0 $0 $0 $0 Subtotal Street/Park Improvements $1,635,704 $1,237,700 $1,265,554 $1,266,425 $1,302,314 $1,348,220 $1,552,144 $1,298,087 $1,324,049 $1,360,030 Drainage/Creek Protection Projects $78,350 $75,000 $100,000 $105,000 $110,000 $115,000 $120,000 $125,000 $125,000 $125,000 Retention Basin Maintenance $26,646 $27,179 $27,723 $28,277 $28,843 $29,420 $30,008 $30,608 $31,221 $31,845 Platino Lane & Oro Drive Inlet $50,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Stormwater Plan $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Subtotal Drainage Improvements $179,996 $127,179 $152,723 $158,277 $163,843 $169,420 $175,008 $180,608 $181,221 $181,845 Fire JPA $135,000 $137,700 $140,454 $143,263 $146,128 $149,051 $152,032 $155,073 $158,174 $161,337 Emergency Operations Center $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 Fire Apparatus $21,163 $21,163 $0 $0 $0 $0 $0 $0 $0 $0 Police Station Upgrade $595,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 Police Senior Officer Position $153,000 $167,734 $171,089 $174,510 $178,001 $181,561 $185,192 $188,896 $192,674 $196,527 Narcotics Task Force $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 $24,000 Police Firing Range $80,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Public Safety $1,011,163 $353,097 $338,043 $344,274 $350,629 $357,112 $363,724 $370,468 $377,348 $384,365 City Hall Upgrade $27,546 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 Council Chambers Remodel $25,000 $225,000 $0 $0 $0 $0 $0 $0 $0 $0 Facility Upgrades $0 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 Corporation Yard Repairs $241,155 $0 $0 $0 $0 $0 $0 $0 $0 $0 Server virtualization (14-15 Mid Yr)$50,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 Elm St. Community Center Upgrade $0 $25,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 Subtotal City Facilities $343,701 $295,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 $120,000 Transfer to Operations $0 $0 $0 $0 $0 $0 $100,000 $100,000 $100,000 $100,000 Annual Audit and Report $7,500 $7,500 $8,000 $8,000 $8,500 $8,500 $8,500 $9,000 $9,000 $9,000 Subtotal Other $7,500 $7,500 $8,000 $8,000 $8,500 $8,500 $108,500 $109,000 $109,000 $109,000 Total $3,278,064 $2,170,476 $2,084,320 $2,146,976 $2,195,286 $2,253,251 $2,569,376 $2,328,164 $2,361,617 $2,405,239 Projected Revenue 2,115,500 2,200,120 2,277,124 2,345,438 2,415,801 2,439,959 2,464,359 2,390,428 2,270,907 2,111,943 Annual Change to Fund Balance -1,162,564 29,644 192,805 198,462 220,515 186,708 -105,018 62,264 -90,711 -293,296 Balance $522,943 $552,586 $745,391 $943,852 $1,164,368 $1,351,076 $1,246,058 $1,308,322 $1,217,611 $924,315 Percentage of Programmed Expenditures 16%25%36%44%53%60%48%56%52%38% LOCAL SALES TAX REVENUE AND EXPENDITURE 10-YEAR PLAN Item 4.a. - Page 15 THIS PAGE INTENTIONALLY LEFT BLANK Item 4.a. - Page 16