CC 2018-05-29_05b Preliminary FY 18-20 Biennial Budget_PP Presentation
Consideration of Preliminary Fiscal Years 2018-20 Biennial Budget
6/14/2019
1
Background
General Fund 10 Year Forecast – 1/23/2018
Expenditures exceed revenues
Without intervention, all Fund Balance depleted within 5 years
Major drivers: CalPERS costs, FCFA budget request
Budget Priorities – 2/13/18
Identify most important services to provide
Approved Budget Concepts
Endorsed Goals/Priorities
6/14/2019
2
Background
Budget Balancing Strategies – 4/24/18
Operating Savings
Revenue enhancements
CalPERS cost savings
Staffing Reductions
CIP and Local Sales Tax Fund Review – 5/22/18
Identified major capital projects
Directed reallocation of staffing related costs away from Local Sales Tax Fund
2/13/2018
3
Tonight
Preliminary Budget Recommendations
Opportunity to review expenditures and revenues in all funds
Look at the budget in an overall context
Provide additional direction to staff
Budget adoption is scheduled for June 12, 2018
2/13/2018
4
Highlights
Total Budget $85.9 million over two years
Operating (salaries/benefits, services, supplies, maintenance)
Debt payments
Capital items
General Fund approximately $20 million each year
Includes paying $5 million to CalPERS for unfunded liabilities
Balanced, reduces long term liabilities and maintains reserves at or above policy levels
2/13/2018
5
2018-19 Revenues by Source – Excluding CIP Fund
$34.9 Million
2/13/2018
6
2018-19 General Fund Revenues by Source
$17.8 Million
2/13/2018
7
General Fund Tax Revenue
2/13/2018
8
Expenditures by Function – All Funds
2/13/2018
9
Expenditures by Function – General Fund
2/13/2018
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Budget Assumptions - Revenues
Property Tax 4.25% ($200K)
Sales Tax 1% ($150K)
TOT 3% plus new hotel ($130K)
Building & Planning fees – steady activity, fee increases will take effect
Recreation activities – expect participation to decline 10% to 30% as fee increases take effect
2/13/2018
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Budget Assumptions - Expenses
Salaries & benefits based on current contracts
FCFA contribution is based on “strategic plan” budget
Significant CalPERS costs – offset by additional UAL payment of $3 million/$2 million
General 2% inflation (unless contract specifies)
Contingency of $25,000 built into Local Sales Tax Fund
2/13/2018
12
2/13/2018
*After accounting for the additional payment amount
13
Staffing Reductions
2/13/2018
*After accounting for mitigations, net savings from staffing is $447,000
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Changes from May 22
Supplement Gas Tax funding with LTF and General Fund sources
Increase Sales Tax funding for FCFA (Full Battalion chief and “strategic plan” costs)
Increase Sales Tax funding for pavement management program
Move Engineering Inspector position to General Fund
Retention basin maintenance moved from Sales Tax to General Fund
2/13/2018
15
Other Significant Changes
Tax measure consulting $25,000 in 2018-19
Technology automation solutions $66,000 in 2018-19
Server replacements $28,000 in 2018-19 and $65,000 in 2019-20
Analyst Position Reclassification $4,000 annually
2/13/2018
16
Other Significant Changes
Engineering Services $52,800 annually (fee recovery)
Building Inspection Services $39,000 annually (fee recovery
Street Light/Traffic Signal electricity $50,000 annually
Police Report Management System $85,000 in 2018-19
2/13/2018
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Other Actions
Fee increases
Will require separate action by council
Community development department adjustments
Implementation may require additional staff and/or council actions
Funding request from 5cities homeless coalition
2/13/2018
18
Specific Direction for FY 2018-20
Preliminary Budget Recommendations
Opportunity to review expenditures and revenues in all funds
Look at the budget in an overall context
Provide additional direction to staff
Budget adoption is scheduled for June 12, 2018
2/13/2018
19
2/13/2018
20
2/13/2018
21
General Fund by Department
2/13/2018
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