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
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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
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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
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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
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