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HomeMy WebLinkAboutItem 1b - Adoption of the 2017-18 Fisal Year Budgets Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 1of 16 DATE:June 6,2017 TO:Honorable Mayor and City Council FROM:Dominic Lazzaretto, City Manager Hue Quach, Administrative Services Director SUBJECT:ADOPTION OF THE 2017-18 FISCAL YEAR BUDGETS RESOLUTION NO.7170ADOPTING ABUDGET FOR FISCAL YEAR 2017-18AND APPROPRIATING THE AMOUNTS SPECIFIED THEREIN AS EXPENDITURES FROMTHE VARIOUS FUNDS Recommendation: Adopt RESOLUTION NO. 7171ADOPTING A CAPITAL IMPROVEMENT AND EQUIPMENT PLAN FOR FISCAL YEARS 2017-18THROUGH 2021-22 Recommendation: Adopt SUMMARY Sections 1204 and 1205 of the Arcadia City Charter require a public notice and a public hearing for consideration of the proposedOperating Budget and Five-Year Capital Program for the ensuing fiscal yearwhich is required to be adopted by July 1.The recommended actions are necessary to implement the budget for Fiscal Year 2017-18. This year’s budget process began in February with an all-day planning and goal setting workshop and included oneBudget Study Session with the City Councilon the draft documents.Based on the input received, the FY 2017-18Preliminary Budget was distributed to the City Council on May 16, 2017. Submitted for the City Council’s review were all operating funds including General, Special Revenues, Enterprise, and the Successor Agency.Additionally, the City Council received the Capital Improvement and Equipment Replacement Fund budgets in a separate document. All funds total $109.5 million in expenditures, of which the General Fund’s budget is $59.8million(excluding Transfers Out noted below).As Special Revenues, Enterprise, and Debt Service funds are restricted to specific purposes and are generally self-sustaining, this report will primarily focus on the General Fund’s Operating Budget. As presented, the proposed FY 2017-18General Fund Operating Budget anticipates Total Operating Revenues of $62.2million and Operating Expenses at $62.2 million, Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 2of 16 including new programs added for FY 2017-18.It also includes approximately $1.5 million in transfers to major capital funds to fund future significant maintenance and replacement needs. Based on this, the ending Operating General Fund Balance will slightlyincrease by $57,500, with anending Operating Fund Balance of $7,274,800. FY 17-18 Budget Beginning Fund Balance:$ 7,217,300 Total Revenues62,237,500 Total Expenditures60,680,000 Subtotal:1,557,500 Total Fund Transfers(1,500,000) Ending Fund Balance:$ 7,274,800 The proposed budget is essentially a steady state budget, with several minor savings and efficiencies identified in the operations and maintenance portion of the budget. Added to the City’s overall Operating Budget this year are a number of new programs totaling $130,600 to the General Fundto respond to the evolving needs of the organization.Key new programsinclude: Creating an in-house Information Technology (IT) Manager position to manage and develop a technological long-range plan for the City. The current IT Division is completely outsourced. The proposed staffing cost would be partially offset by reducing the existing contractual consultant service cost. Enhancing the Fire Department’s advanced life supportservices by upgrading three Firefighters to Firefighter/Paramedics. This will allow all responders stationed at Fire Station 106 to have Paramedic certifications so that whichever unit arriveson scene first would have a Paramedic on board. Roughly 70% of calls for service are now medical emergency service callsand this allows for better response times and higher quality service. Establishing a passport services programat the Library.The pilot program will be open to the public on an appointment basis approximately 20 hours per week. The cost of this program is expected to be fully recoverable from fees for services. Other significant requests include the addition of a second K-9 officer and establishing an on-call arborist service to review tree permits. Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 3of 16 The proposed budget continues to includethe transfer of funds to the Capital Improvementand Equipment Replacement Funds.Although the average demand requires atotal of $3.0 million annually to sustainthose funds, the modest growth in revenuesand significantly rising pension costshave limited thosetransfers to a total of $1.5million, which will beallocated as follows: Capital Improvement Fund -$750,000 Equipment Replacement Fund -$750,000 The Capital Improvement Fund provides the majority of funding for such basic services as pavement rehabilitation, building repairs, and parks maintenance. The proposed FY 2017-18Capital Improvement Fund budget–comprisedof GeneralFund, Special Revenues, and Enterprise funding–totals $11.8 million. The General Fund portionof that totalis $4.2 million. Key focusin the coming year will be in the area of street maintenance, whichconsistsof roughly half of the year’s capital improvement projects. Inaddition, the City will complete thesecond phase of the Median Turf Reduction Program tomodernizethe City’s signature boulevard medians,making them more drought-tolerant while ensuring they remain a major community aesthetic component. This phase of the project is estimated at $1.5 million,with the final phase anticipatedfor next Fiscal Year with asimilar expected cost. The Equipment Replacement Fund provides funding for essential equipment such as computers, vehicles, and major office equipment. The proposed FY 2017-18 Equipment Replacement Fund budget totals $2.4 million. Unlike the Capital Improvement budget, 87%,or $2.1 million,of this year’s proposed budget is funded fromthe General Fund. Major purchases include upgrading obsolete computers and related software, such as the replacement of the Police Department’s computer aided dispatch system.Significant vehicle purchases include four Police patrol vehiclesand an aerial truck for the Street Light crew. In conclusion,the proposed Budget has been prepared with an eye towardsexpanding the already high level of service in Arcadia, but with consideration for cost effectiveness. This is accomplished throughidentifying cost cutting measures and operational efficiencies wherever possible. While the FY 2017-18 Proposed Budgetis balanced, with a smallincreaseof $57,500 to the General Fund’sfund balance, the City will continue to look for opportunities to add additional funding toits Capital and Equipment Replacement Funds throughout the Fiscal Year.It is, therefore, recommended that the City Council adopt the proposed Budget documents. Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 4of 16 DISCUSSION The Budget reflectsslow butcontinuing improvements tothe local economy, which are outpaced somewhat by significant increases in pension costs as well as the continuing impact of raising the minimum wage.The City’s major taxrevenues–property, sales, utility users, and hotels–are forecast for modest growth, similar to recent Fiscal Years. While there are notable downward trends in Service Charges and Feesas a result of the slowing of new housing developmentin the community, the City’s well diversified revenue basecontinues to place Arcadia in abetter position than many citieswithin Los Angeles County. Summarized in the table below is the General Fund Operating Budget for: FY 2016-17 Year Ending Estimates, FY 2017-18Proposed Budget for Adoption, and a FY 2018-19 Preliminary Budget Outlook. Please note that FY 2018-19is not proposed for adoption as the City adopts its Operating Budget annually. GENERAL FUND FY16-17FY17-18FY18-19 EstimatesBudgetBudget Beginning Fund Balance7,193,8007,217,3007,274,800 Estimated Revenue58,239,10058,499,40060,193,200 Proposed Expenditures57,756,80059,813,50061,335,200 Revenue over Expenditure482,300(1,314,100)(1,142,000) Fund Transfers Transfers-In from other funds4,678,4003,738,1003,672,800 Transfers-Out to other funds(5,137,200)(2,366,500)(2,398,300) Net Transfers(458,800)1,371,6001,274,500 Subtotal Operating Balance23,50057,500132,500 Ending Fund Balance7,217,3007,274,8007,407,300 As shown bythe table above, the City’s ending General Fund Balance will improvebya smallincrementof $57,500to address unforeseen needs.Per City Council direction, the Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 5of 16 City also maintains an Emergency Reserve at 20% of annual operating expenditures, which is currently fully funded. FY 2017-18Proposed General Fund Revenues Recreation Library Charge Current 2% Other Revenue 0% Services 4% 5% Revenue from Other Agencies 12% Use Money & Property Property Taxes 2% 27% Fines & Penalties 1% License & Permits 7% Franchises 2% Transient Taxes 7% Sales Taxes Utility Taxes 19% 12% For FY 2017-18, total General Fund revenues are expected to increase by a small marginof 0.45%when compared with the FY 2016-17year ending estimates.The largest revenue source ofthe General Fund is from Property Tax, Sales Tax, Transient Occupancy Tax, Utility Users’ Tax, and Motor Vehicle License Fees. Their projected receiptsare shown in the table below. Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 6of 16 FY 2017-18 FY 2016-17 DescriptionProposed Difference% Change Estimates Budget Property Tax$13,723,500$14,409,800$686,3005.0% Sales Tax$11,066,700$11,398,600$ 331,9003.0% Transient Occupancy Tax$3,725,000$3,874,000$149,0004.0% Utility Users’ Tax$ 6,657,800$ 6,858,000$ 200,2003.0% Motor Vehicle License Fees$ 6,461,500$ 6,796,500$ 335,0005.2% Property Tax:The City expects to continue to benefit from the recent growth in new home sales. Although annual home valuationsmay have leveled off from itspeak in 2014,recent home renovations and sale activities continuetoproduce higher overall valuations. This is not only due to an increase in home sizes in the communitybut also to the inflationarycontrols provided by Proposition 13, whichkeep long-held homes at an artificially low assessed value until they resell.As such, the City expects to continue to see a growth in property tax receipts in the range of 5.0%,or $686,300,for FY 2017- 18. Sales Tax:Sales taxes are projected to increase 3.0%,or $331,900, in comparison to FY 2016-17. Overall strong employment data, greater consumer confidence, and a measuredinflation provide abasisfor the expected increase.Locally, thecontinued strength of the Westfield Santa Anita Malland a full year’soperation of the expanded Rusnak Mercedes-Benz showroom and service centerare expected to help improve tax receipts. Transient Occupancy Tax:This tax categoryis also expected to benefit from the low unemployment rateas it suggests an increase to business and recreational travels. The projection for FY 2017-18is $3.9million, a 4.0%,or $149,000,increase over the previous Fiscal Year. Utility Users’ Tax:Utility Users’ Tax (“UUT”)is projected to increase by 3.0%,or $200,200,when compared to the FY 2016-17year ending estimate. Part of the growth will come from anincrease in water usagecaused by the State’s easing of drought regulations as well as the anticipated increase in water rates.Additionally, Southern California Edisonischanging their tier rate planand the estimated increase of 3.7% for residential accounts, which will also lead to an increase in UUT revenues. Motor Vehicle License Fees(“VLF”):This tax is projected to increase by 5.2%,or $335,000, to $6.8million. Revenues from this line item are largely linkedto annual propertyassessed valuation. Other major revenue categoriessuch as Licenses and Permits are expected to decrease greatlywhen compared to FY 2016-17.Unlike the peak of FY2013-14, Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 7of 16 Building and Plan Check fees are expected to return to their “normal” levelsof approximately $800,000in each fee area.Since plan check services are largely contracted out, expenditures in this area have been commensurately reduced. All other revenue categories for the General Fund are expected to have modest growth for the comingFiscal Year. FY 2017-18Proposed General Fund Expenses Library & Museum Services 6.5% General Government 6.3% Police 35.2% Development Services 8.0% Public Works Services 7.2% Administrative Services 5.6% Recreation & Community Services 5.3% Fire 25.8% Total operating expenditures are expected to grow 2.5%to maintain the same high level of servicesto the community. Where possible, line items have been reduced to reflect efficiencies that have been implemented over time and to remove any potential for waste. The notable increases relateto the labor agreement contracts (salaries & medical benefits)and the rise of employer pension contributions to make retirement funding more sustainable. As with the prior Fiscal Year, the proposed budget also includes an ongoing$650,800 contribution into the Other Post Employment Benefit (“OPEB”)Trust Fund. The OPEB Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 8of 16 Trust Fund allows the City to save today for known medical and associated retirement benefits costs in the future. Overtime, the increase in value of the funds invested reduces the City’s overall costs of providing these benefits. The combination of significant pension reforms put into place in 2011 and the prepayment of these legacy benefits will provide greater financial security to the community. While some new services have been added to meet community demands and some natural inflationary increases have been included–mostly due to increases in the labor costand rising healthcare costs for private businesses that contract with the City –the majority of the increases arenegligible and haveno material effects to the overall operating expenditures. Newly Proposed Programs New programs and expenditures are anticipated from various departments to respond to emergingoperational needs,as well as to respondto direction received at City Council study sessions and City Council meetings. The new programs total $130,600 and include: Temporary Part-time GIS Employee (No additional budget appropriation): The Planning Division is seeking a Temporary Part-Time Geographic Information System (“GIS”) Employee to perform very specific GIS tasks related to the development and implementation of the new permit tracking system (EnerGov) and to update the datasets within the City’s GIS system. This temporary position will be funded from the remaining balance of the GIS/Energov project.Other duties performed by the position would include: o Assist in migrating Laserfiche into the GIS Viewer so that a property owner and/or staff can view all permits that have been issued to a property. o Add the assessor parcel number to parcel-related documents and rename all 30,000+ documents for the GIS system in order to transfer the same data to GIS and EnerGov. This would allow the user to see everything that was approved or pending from building, planning, and code services. On-Call Arborist Services($15,000):The City Council adopted a revised Tree Ordinance last year,greatly expanding the number of trees that are subject to preservation. This has led to an increase in the number and complexityof reviews to determine whether certain trees are diseased, damaged, or in need of special protective measures. The use of an on-call Certified Arborist would ensure the City is using a fully trained professional to conduct tree inspections andwould serve as a valuable source of information to City Staff. Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 9of 16 In-House IT Manager($73,000):Over the last 20 years, the City’s IT Division has been completely outsourced. As information technology continues to evolve with constant development in hardware, software, mobile devices, and with concerns of cyber securityon the rise, it has been determined that there is a need to have an in-house IT Manager. The Manager would work with City's consultants to explore technology options and select technology that will fit the needs of the organization. The Manager would also coordinate and monitor project activities to ensure their timely completion and work with consultants to develop a technology long-range master plan for the City. Some of the other key duties include: supervising IT workers, managingand coordinatingupgrades of systems and software, negotiatingwith product vendors, and ensuringthe security of the City's IT infrastructure. Cost of this full-time position will partially beoff-set by the current IT Management Services contract. Expanded Police Service Dog K-9 Program ($23,800):To enhance the effectiveness and capabilities of the Police Department, a second police K-9 would be to patrol operations and support services. The added K9 resource will be funded by the Arcadia Police Foundation, which will pay start-up costs for supplies and training totaling $39,000, as well as recurring maintenance costs of $4,000annually. The K-9 handler will be selected from existing personnel resources; therefore, an additional employee is not required. The costs associated with this new program will be for stipends to take care of the K-9 off- duty as well as actual call-outs and usage during non-scheduled hours (i.e., overtime).Annual cost applied to the City’s General Fund for this expandedK-9 program is $23,800 and includes overtime, other personnel costs, and training. Enhancement of the Paramedic Service Model ($31,000): Given the continued rise of medical/rescue incidents over the past decade, the Fire Department is proposing to increase thenumber of Paramedics on duty daily. This would be accomplished by upgrading three current Firefighter positions stationedat Fire Station 106 to Firefighter/Paramedics. No new or additional employees would be required to accomplish this goalas the Firefighters already possess the required certifications. Fire Station 106 has been selected because it has the highest volume of medical calls in the City. This program would provide a paramedic on every piece of equipment responding from that Station, meaning that whichever unit arrived first on scene would have a licensed paramedic to immediately begin advanced lifesaving activities.This is especially important because, as hospitals have become increasingly busy, it is far more common for paramedic personnel on the ambulance to be delayed at these facilities.This program will also aid in employee retention and recruitment and may save money over time due to eliminating the need to send Firefighters to Paramedic school, since most employees will now have that certification when initially hired. Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 10of 16 Upgrade of Public Works Inspector Position($5,100):The State Water Resources Control Board Division of Drinking Water requires that anyperson making decisions on the installation of new water systems hold water operator certifications. Due to the type of water system the City of Arcadia has, the inspector must have a valid Grade 3 Water Distribution Operator certification and Grade 2 Water Treatment Operator certification. In order for the City to maintain staff with the proper certification, the current specification for Public Works Inspector will need to be updated to include the requirement of these water certifications andto designate this position in the flexibly staffing series as a Senior Public WorksInspector. Provide Passport Service by Appointment (Net revenue of $17,500): The Library and Museum Services Department proposes to run a pilot passport service program. Based on comparable services provided by neighboring cities, this service would yield net revenue of $17,500 after all costsare computed.The cost forstaffing,start-up equipment,and supplies totals $62,500. Two new part- time staff would work a total of 30hours per week –20 hours for appointments only service and 10 hours for processing and mailing. It is estimated that $80,000 in feescan be generated from this service. BeyondFY 2017-18 While the City’s 5-Year Financial Forecast indicates that most revenues and expenditures will continue to grow modestly, the Forecast also anticipates sharply rising pension costs.Despite major reforms put in place by the City in 2011 and the State in 2013, recent policy changesby the CalPERS Board of Administration addan additional layer of challengesto the budget. In December 2016, the CalPERS Board of Administration approved lowering the CalPERS discount rate assumption, the expectedlong-term rate of return, from 7.5% to 7.0% over the next three years.Lowering the discount rate means pension plans will see increases in both the normal costs (the cost of pension benefits accruing in one year for active members) and the already accrued liabilities. These increases will result in higher required employer contributions. The projected increase, using the current preliminary informationthat is available, is estimated to average $1.9millionannually, beginning in FY 2018-19 through FY 2022-23. Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 11of 16 14.065% PROJECTED PERS CONTRIBUTIONS 60% MISCELLANEOUS 12.0 55% 10.0 50% Highest Projected Rates 8.0 45% $ Millions 6.0 40% Lowest Projected Rates 4.0 35% Expected Rates Before Change 2.030% 2018-192019-202020-212021-222022-23 14.0 PROJECTED PERS CONTRIBUTIONS 80% SAFETY 12.0 Highest Projected Rates 70% Lowest Projected Rates 10.0 60% 8.0 Expected Rates Before Change 50% 6.0 $ Millions 40% 4.0 2.030% 2018-192019-202020-212021-222022-23 In order to maintain a balanced budget, it will be essential for the City to not only continue its history of conservative spending,but also to eitherfindsubstantial new revenue sources or modify its service deliveryto reduce costs significantly.The staff will work with the City Council and the community in the coming year to fully explore all available options in both of these arenas to ensure the long term health of the organization. Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 12of 16 Capital Improvement and Equipment Replacement Funds Unexpectedly strong revenues and the underspending of authorized budgets over the past several years have allowed the City to transfer a significant amount of funds into the Capital Improvement and Equipment Replacement Funds. It isstillimportantfor the City to continue a steady deposit into these funds, whichwere not replenished for many yearsduring the last economic downturn.The FY 2017-18 Budget proposes a transfer of $750,000 from the General Fund. As shown in the chart below, the 5-Year Financial Forecast anticipates that the City will be able to transfer an annual depositofjust $750,000from its General Fund Operating Budgetinto the Capital Improvement Fund.Asexpenditures are also expected to exceedthose annual transfers,the Capital Improvement Fund is projectedto maintaina $957,000 balanceby the end of FY 2021-22,against an average annual demand closer to $3.0million.This presentsa concern and challenge to find a revenue mechanism to sustain thoseneeded infrastructure improvements. Capital Improvement Fund Balance (in $ millions) 12 Capital Project Costs Additional Funding Capital Improvement Fund Balance 10 8 6 4 2 0 2012-132013-142014-152015-162016-172017-182018-192019-202020-212021-22 The FY 2017-18Capital Improvement Plan proposes 40projects totaling $11.8million in expenditures, of which $4.2million would be paid for from the Capital Improvement Fund. The remaining $7.6million would come from grants, state subventions, and local special funds such as the Prop C Transportation Fund. The table below summarizes some of the major proposed projects. Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 13of 16 FISCAL YEAR 2017-18MAJOR CAPITAL IMPROVEMENT PROJECTS Project DescriptionProject BudgetFunding Source Capital Improvement Annual Slurry Seal Program$750,000 & Gas Tax Funds Capital Improvement Median Turf Reduction Program$1,535,000 & Water Funds Annual Meter Replacement Program$350,000Water Fund Valve Replacement Program $195,000Water Fund Huntington Drive Sewer Capacity $455,000Sewer Fund Improvement Project Well Inspection and Rehabilitation Program$225,000Water Fund Capital Improvement Pavement Rehabilitation Program $1,530,000 & Measure R Funds Fire Station 105 Roof Restoration Project $300,000Capital Improvement Capital Improvement, Arterial Rehabilitation Program / Huntington $2,000,000Prop C, Dr.from Santa Clara to Fifth Ave. & Transportation Funds Sunset Blvd. at Fairview Ave. Traffic $450,000Transportation Funds Signalization Project Council Chamber Restroom Renovation$150,000Capital Improvement Fund As shown in the table below, the Equipment Replacement Fund will achieve a more sustainable balance through FY 2021-22than the Capital Improvement Fund, but is still shown to decrease steadily based on available funds to deposit. This fund is projected to have a balance of $2.6million at the end of FY 2021-22. However, this is based on an economy thatwill not falter in the next few years and an expectation that the organization will not significantly expand in other areas. Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 14of 16 Equipment Replacement Fund Balance (in $ millions) Equipment Purchase/Replacement 12 Additional Funding Equipment Replacement Fund Balance 10 8 6 4 2 0 2012-132013-142014-152015-162016-172017-182018-192019-202020-212021-22 The Equipment Plan proposes 40different equipment purchases totaling $2.4million in expenditures,of which $2.1million would be paid for from the Equipment Replacement Fund. The table below summarizes some of the major proposed equipment purchases. FISCAL YEAR 2017-18MAJOR EQUIPMENT REPLACEMENT PURCHASES Replacement Equipment Replacement DescriptionBudgetFunding Source Equipment Replacement Water and Sewer Billing Program $142,500 & Water Fund City Firewall –Intrusion Prevention System, logging, and application $39,400Equipment Replacement Fund control across City network Police Dept. Vehicle Replacement: 4new Patrol vehicles; Installation of communication, emergency, & $228,800Equipment Replacement Fund fueling transmitter packages Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 15of 16 FISCAL YEAR 2017-18MAJOR EQUIPMENT REPLACEMENT PURCHASES Replacement Equipment Replacement DescriptionBudgetFunding Source Street Division Vehicle Replacement: 1new Aerial Lighting Lift Truck; 1 new ½ ton 4x4 PU Truck; Installation $163,000Equipment Replacement of communication, emergency, and fueling transmitter packages Dispatch Center Radio Console Replacement$600,000Equipment Replacement Library Furniture Replacement $132,900Equipment Replacement It is imperative that the City have the discipline to continue depositing funds into these accounts at or above the minimum required contributions to help them approach sustainablelevels. CONCLUSIONS The FY 2017-18General Fund Operating Budget, as proposed, is balanced and provides funding to meet ongoing equipment and capital needs. This is based on Total Operating Revenues of $62.2million,Operating Expenses of$60.6million, including new programs, and transfers of $1.5million to the Capital and Equipment Replacement Funds in order to continue replenishing those essential accounts. The proposed Budget reflects a continuation of the slow, but steady,revenue growthseen in recent fiscal years and near-term expenditure growth that is fairly constrained. However, special care and attention needs to be given to future years as pension costs will grow at a rate considerably higher than previously expected. The proposed FY 2017-18Operating Budget is a sound financial plan that allows the City to continue its critical infrastructure improvements and maintain exceptional service levels to our community. The Budget meets the City Council’s direction to set aside funds to mitigate long-term liabilities.By implementing this Budget, the City’s staff will maintain its commitment to providing the Arcadia community with unsurpassed service in a fiscally responsible manner. Attached to this staff report are the following: Exhibit“A”:Summary of Sources and Uses of Funds for All Funds reflectingthe proposed Operating Budget presented to Councilfor adoption Adoption of the 2017-18 Operating Budget and CIP and Equipment Plan Resolutions June 6, 2017 Page 16of 16 Exhibit“B”:Summaryof the proposed Five-year CapitalImprovementand Equipment Replacement Plan RECOMMENDATION It is recommended that the City Council: 1)Adopt Resolution No.7170adopting a Budget for Fiscal Year 2017-18and appropriating the amounts specified therein as expenditures from the Funds; and 2)Adopt Resolution No. 7171adopting a Capital Improvement and Equipment Plan for Fiscal Years 2017-18through 2021-22. Attachments:Exhibit “A”–All Funds Budget Summary Exhibit “B”–Five Year Summary of Capital and Equipment Plan Resolution No. 7170 Resolution No. 7171 Exhibit A All Funds Budget Summary FY 2017-18 SOURCES OF FUNDSUSES OF FUNDS Beginning Ending Fund FundFund BalanceOutsideTransferTotalAppropriationTransferTotalBalance FY17-18SourcesInOutFY17-18 General Fund7,217,30058,419,4003,738,10069,374,80059,733,5002,366,50062,100,0007,274,800 Narcotic Seizure Federal369,3008000370,100148,9000148,900221,200 COPS257,300144,8000402,100150,1000150,100252,000 Local Law Enforcement084,000124,100208,100208,1000208,1000 Medical/Dental338,60004,055,6004,394,2004,055,60004,055,600338,600 IRS Task Force458,8001,0000459,800000459,800 Worker Compensation/Liability3,061,80030,6002,357,8005,450,2002,357,80002,357,8003,092,400 Homeland Security 010,000010,00010,000010,0000 Office of Traffice Safety Grant0104,4000104,400104,4000104,4000 Misc. P.E.R.S. Employee Retirement Fund1,351,600001,351,6000001,351,600 Emergency Reserve10,147,1000010,147,10000010,147,100 Parks & Recreation9,575,000947,900010,522,90024,300024,30010,498,600 Traffic Safety0220,0000220,000220,0000220,0000 Public, Educational/Governmental Access721,20092,2000813,400200,0000200,000613,400 Used Oil Grant22,50016,400038,9006,00006,00032,900 DOC Beverage Grant 26,30015,600041,90015,300015,30026,600 Solid Waste1,350,700505,70001,856,400405,000112,000517,0001,339,400 State Gas Tax78,4001,596,00701,674,4071,446,30001,446,300228,107 Air Quality Management District55,60073,0000128,60098,400098,40030,200 Community Development Block Grant0627,9000627,900627,9000627,9000 Santa Anita Grade Separation1,010,80010,10001,020,900230,0000230,000790,900 Transit0822,6791,521,6212,344,3002,344,30002,344,3000 Proposition A1,119,1181,072,25302,191,3711,150,37001,150,3701,041,001 Transportation Impact Fund1,222,700312,20001,534,9001,250,00001,250,000284,900 Proposition C126,644881,41601,008,060894,3000894,300113,760 TDA Article 3 Bikeway050,000050,00050,000050,0000 STPL & ITS Special Fund00000000 Measure R1,118,7361,621,30002,740,0361,690,05101,690,0511,049,985 Measure M0710,6930710,693000710,693 Capital Improvement7,649,2001,526,50009,175,7004,353,60004,353,6004,822,100 City Hall Reserve1,500,000001,500,0000001,500,000 Lighting Maintenance105,800494,900742,4001,343,1001,237,30001,237,300105,800 Kaitlyn Place Landscaping District2,500002,5000002,500 Water Fund19,154,50012,111,700031,266,20015,893,500015,893,50015,372,700 Sewer Fund4,843,3002,096,80006,940,1001,916,00001,916,0005,024,100 Equipment Replacement6,589,100825,90007,415,0002,142,20002,142,2005,272,800 Redevelopment Successor Agency02,957,20002,957,2002,957,20002,957,2000 General Obligation Bond 2012363,200418,0000781,200418,0000418,000363,200 General Obligation Bond 2011490,500597,40001,087,900597,8000597,800490,100 Total80,327,59889,398,74812,539,621182,265,967106,936,2212,478,500109,414,72172,851,246 Exhibit B CITY OF ARCADIA SUMMARY OF PROPOSED FIVE YEAR CAPITAL PROGRAMS FISCAL YEAR 2017-18 THROUGH 2021-22 ESTIMATEDESTIMATEDPROPOSEDESTIMATED FUND DESCRITPIONFUNDSFIVE-YEARFIVE-YEARFUNDS 7/1/2017REVENUEEXPENDITURE6/30/2022 7,649,2007,429,800 (14,121,500) 957,500 CAPITAL OUTLAY FUND GAS TAX FUND78,40010,676,447 (10,662,034) 92,813 126,6444,519,132 (4,630,000) 15,776 PROP C FUND 1,222,7001,522,800 (2,400,000) 345,500 TRANSPORTATION IMPACT FUND MEASURE R LOCAL RETURN1,118,7364,383,200 (4,528,642) 973,294 4,843,30011,801,600 (9,679,300) 6,965,600 SEWER FUND 6,589,1004,023,600 (8,035,400) 2,577,300 EQUIPMENT FUND 18,887,500(3,938,400) (9,282,800) 5,666,300 WATER FACILITY RESERVE 926,600821,200 (1,374,800) 373,000 WATER EQUIPMENT RESERVE 55,600366,800 (188,000) 234,400 AQMD