CC 2019-05-28_11b Revenue Presentation_PPP and VideoRevenue Generation
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Purpose
Requested conversation by Council
Make City budget information understandable, relatable, comparable, and comprehensible.
This is all in an effort to have an informed discussion about how money is raised and spent for enhanced services in our City.
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Series of Conversations
Past conversations –
Issue oriented such as fire and emergency services and Brisco interchange
Policy oriented such as the goals and strategic planning conversation at the last meeting
Change is the constant; always adjusting; reacting to outside influences
Recent change – Increasing expenses (CalPERS, Health Insurance, etc)
Without open and robust communication, solving problems will be difficult if not impossible.
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Current and Next Year’s Budget
Budget response – Fiscal sustainability, closing the $900,000 gap.
Core and essential, Right sized, More efficient services
Reduced operational costs
Reduced interest cost by pre-paying pension debt,
Increased cost recovery of certain City services
Reduced staffing levels by 7.4 fte’s
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Funding Spheres
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Focusing on Revenue
Budget actions (Implementation)
Economic development (On-going conversations)
Traditional government revenue sources
Previously identified revenue need for maintenance or replacement of public assets that are reaching their end of useful life
An exercise in spending revenues in the most efficient way.
More expenses by putting off maintenance (roads, buildings)
Public safety; Liability risk/expenses (sidewalks, roadways, bike lanes, play equipment
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PREVIOUS INFRASTRUCTURE ASSESSMENT REPORT
PARKS AND OPEN SPACE
Estimate of Total Improvements $4,881,775
Annual Depreciation / Set-Aside $ 209,907
FY 2018-19 Funding $ 86,000
Additional Funding Needed $ 123,907
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PREVIOUS INFRASTRUCTURE ASSESSMENT REPORT
GOVERNMENT BUILDINGS
Estimate of Total Improvements $4,684,874
Annual Depreciation / Set-Aside $ 121,588
FY 2018-19 Funding $ 0
Additional Funding Needed $ 121,588
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PREVIOUS INFRASTRUCTURE ASSESSMENT REPORT
DRAINAGE FACILITES
Estimate of Total Improvements $32,161,707
Annual Depreciation / Set-Aside $ 238,107
FY 2018-19 Funding $ 392,500
Additional Funding Needed $ 154,393
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PREVIOUS INFRASTRUCTURE ASSESSMENT REPORT
ROADS
Estimate of Total Improvements $ 180,000,000
Annual Depreciation / Set-Aside $ 3,023,584
FY 2018-19 Funding $ 1,164,500
Additional Funding Needed $ 1,859,084
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Infrastructure Assessment Reports - Sidewalks
Estimate of Total Improvements $ 34,912,500
Annual Depreciation / Set-Aside $ 232,750
FY 2018-19 Funding $ 110,000
Additional Funding Needed $ 122,750
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Must Read
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Fortunate
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Revenue Snapshot
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Distribution
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Property Tax
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Sales Tax Distribution
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Size of the need
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History of Success
It is hard to argue that the City of Arroyo Grande has not been incredibly successful in this mission.
Drinking water
Sanitary Sewers
Storm water and flood control
Police and Fire services
Paved roads
Sidewalks
Solid waste and recycling
Building safety
Quality built environment
Recreation opportunities
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Current Budget
Two year budget
Utilized forecasting to be more proactive
Focused on solving a forecasted imbalance
Focused on core and essential services
Proactive on prioritizing and making hard decisions for the long-term benefit of the community
Forward looking to enhanced revenue
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Tempus Fugit
FY 2018-19
July 1, 2018 – June 30, 2019
FY 2019-20
July 1, 2019 – June 30, 2020
FY 2020-21
July 1, 2020 – June 30, 2021
Election 2020
Start Budget Process FY 2020-22
Now
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Upcoming Notable Agenda Items
Brisco Halcyon Interchange preferred alternative
Five Cities Fire Authority Joint Powers Agreement
Mid year budget
Adoption of second year of budget (FY 2019-20)
Halcyon Streets Plan
East Grand Avenue Master Plan
Circulation Element
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Challenges
Outside influence
New regulations and requirements will impact staff resources
Underfunded maintenance will slowly decrease existing infrastructure and assets
Population growth and active reduction of discretion in land use decisions
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Outside Influence
Compete with core service funding
State Legislature
New Laws
Minimum Wage Increases
Partner Agencies
Economy
Health Care Costs
Pension Costs
Claims
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Population Growth
World Population - Growing at 2.5 people every second
National Population – Growing at 1 person every 18 seconds
State Population - Growing at 1 person every 1.7 minutes
County Population - Growing at 1 person every 2.44 days
City Population – Growing at 1 person every 10 days
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State Housing Requirements
The State wants us to permit 69.2 units per year
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The State’s Ideal Vision
State wants us to grow at 1 person every 2 days based on RHNA allocation and the state average of 2.81 persons per unit
Over 5 times as fast as what we did last year for the next 10 years
The State Legislature is taking away discretionary powers from local government to get the housing.
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107 Years of Success
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