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HomeMy WebLinkAboutPowerPoint Budget Adoption 2018-19BUDGET OVERVIEWFISCAL YEAR 2018-19JUNE 19, 2018 BUDGET GOALS•Maintain core services•Police and fire protection•Keeping public areas safe, clean and well-lit•Repairing streets and roads•Prepare for the City’s long-term financial viability•Exploring options on revenue enhancement and expense reduction, including securing additional funding from the State or other agencies•Be transparent and accountable with how taxpayer dollars are spent FY17-18GENERAL FUND ESTIMATESBeginning Fund Balance8,166,100$ Revenue & Sources 62,699,600$ Expenses & Uses 59,857,100Revenue over Expenses 2,842,500$ Transfer to Equipment Replacement Fund (1,400,000)Transfer to Capital Improvement Fund (1,400,000)Subtotal Operating Balance 42,500Ending Fund Balance8,208,600$ Originally $750,000 eachOriginally $750,000 each FY17-18GENERAL FUND REVENUE Property Taxes8.2%Sales Taxes1.8%UUT 1.8%VLF 6.9%License & Permits -22.6%TOT -7.2%Charges for Services -0.5%Franchises -2.5%Recreation7.4%-25.0%-20.0%-15.0%-10.0%-5.0%0.0%5.0%10.0%0246810121416MillionsFY16-17 ActualFY 17-18 Estimates FY17-18GENERAL FUND EXPENSES-1.4%-4.6%-2.5%-5%-5%-4%-4%-3%-3%-2%-2%-1%-1%0%051015202530354045Personnel O&M ExcludingEquipmentSuppliesMillionsFY 17-18 BudgetFY 17-18 Estimates FY18-19 GENERAL FUND PROPOSED BUDGETBeginning Fund Balance 8,208,600$ Revenue & Sources 64,389,800$ Expenses & Uses 63,288,600Revenue over Expenses 1,101,200$ Transfer to Equipment Replacement Fund (1,800,000)Transfer to Capital Improvement Fund (2,400,000)(3,098,800)Ending Fund Balance 5,109,800$ Subtotal Operating Balance FUND TRANSFERSAnnual Contributions From General Fund starting in FY2018-19Equipment Replacement Fund $ 1,800,000 Capital Improvement Fund $ 2,400,000 Interest rate Assumption 3%Inflation Assumption3%Annual Paramutuels Revenue $ 700,000 Using the average of prior 5 years actuals as annual costs starting in FY2023-24CITY OF ARCADIAFUND BALANCE SCENARIOS(5.5)(3.5)(1.5)0.52.54.56.58.510.52017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-262026-27 2027-28 2028-29 2029-30MillionsCapital Improvement Fund BalanceEquipment Replacement Fund Balance GENERAL FUND REVENUE BUDGET$64,389,800Property Taxes 4.5%Sales Taxes2.5%UUT 1.5%VLF 4.0%License & Permits 13.4%TOT -3.0%Charges for Services -1.3%Franchises1.0%Recreation9.6%-10.0%0.0%10.0%20.0%30.0%40.0%50.0%0.02.04.06.08.010.012.014.016.0MillionsFY 17-18 EstimatesFY 18-19 Budget REVENUE AFFECTED BY PROPERTY VALUE0246810121416180510152025FY08-09FY09-10FY10-11 FY 11-12FY 12-13FY 13-14FY 14-15FY 15-16FY 16-17FY 17-18FY 18-19BillionsMillionsAssessed ValueVLFProperty Taxes REVENUE AFFECTED BY ECONOMY45,00046,00047,00048,00049,00050,00051,00052,00053,00054,00055,0000246810121416FY08-09 FY09-10 FY10-11FY 11-12FY 12-13FY 13-14FY 14-15FY 15-16FY 16-17FY 17-18FY 18-19MillionsGDP Per CapitaTOTSales Taxes LICENSE AND PERMITS - 1 2 3 4 5 6 7FY08-09 FY09-10 FY10-11 FY 11-12FY 12-13FY 13-14FY 14-15FY 15-16FY 16-17FY 17-18FY 18-19Millions UTILITY USER TAXES4.04.55.05.56.06.57.07.5FY08-09 FY09-10 FY10-11 FY 11-12FY 12-13FY 13-14FY 14-15FY 15-16FY 16-17FY 17-18FY 18-19Millions GENERAL FUND EXPENSE BUDGET$62,386,800General Government$4,051,500 7%Administrative Services$3,298,700 5%Police$22,651,600 36%Fire$15,863,000 26%Public Works Services$4,162,400 7%Development Services$5,032,400 8%Recreation & Community Services$3,358,700 5%Library & Museum Services$3,968,500 6% GENERAL FUND EXPENSE BUDGET4.7%4.7%0.3%0%1%1%2%2%3%3%4%4%5%5%05101520253035404550Personnel O&M Excluding Equipment SuppliesMillionsFY 17-18 BudgetFY 18-19 Budget VACANCY RATE BUDGETED AT 3%$1,430,000 IN FY2018-193.54%3.31%5.57%4.90%5.14%4.36%0.0%1.0%2.0%3.0%4.0%5.0%6.0%20253035404550FY2012-13 FY2013-14 FY2014-15 FY2015-16 FY2016-17 FY2017-18MillionsBudgetActualExtra 0.5% = $238,333 NEW PROGRAMSRevenueAdditional CostsAnnual FY18-19PolicePolice Special Enforcement Team (SET) 70,100 64,100 Accurint Crime Analysis 13,800 13,800 Interagency Communications Interoperability System65,000 65,000 FireUpgrade one (1) Firefighter Position to a Firefighter/Paramedic11,100 11,100 DevelopmentEnerGov - Phase 2 for Mobil Devices and iG Workforce Apps48,800 6,900 Contract Inspector for the Le Meridien Hotel Project100,000 0 RecreationElementary Summer Playgrounds 10,600 0 0 Saturday Adult Basketball League 9,100 8,900 8,900 City ManagerGovernment Transparency upgrade 40,000 5,000 Administrative ServicesNeoGOV - HR Recruitment Process 11,000 4,000 $19,700 $368,700 $178,800PROPOSED NEW PROGRAMSOngoing Annual CostsTotal General Fund SPECIAL ENFORCEMENT TEAM (SET): $70,100•Re-establish SET Team in Detective Bureau•Disbanded 2011•Increase surveillance, apprehension of wanted suspects, criminal case investigations and filings, and host regional taskforces•Focus on community problems •Burglaries, gangs, organized retail crime ACCURINT CRIME ANALYSIS:$13,800•Upgrade to current system •Adding secure online dashboard •Features:•Data sharing, pattern analysis, crime mapping, predictive analytics, and reporting•Unlimited access for sworn personnel•Benefits investigators assigned to regional taskforces INTERAGENCY COMMUNICATIONS INTEROPERABILITY (ICI) SYSTEM: $65,000•Radio system with regional coverage•Interconnected•Wide area coverage •For cost of small municipal system•Covers subscription and licensing for ICI•Would participate in ICI beginning 1/1/19 UPGRADE ONE (1) FIREFIGHTER POSITION TO A FIREFIGHTER/PARAMEDIC: $11,100•Enhancement of Paramedic Service ModelDepartment’s ongoing efforts to transition its Firefighter positions to Firefighter/Paramedic positionsTimeline−1973– Implementation of the City’s Paramedic Program (1 RA)−1980– Second paramedic ambulance was placed in service (2 RAs)−2005– Engine 107 assigned as Paramedic Assessment Engine−2017– Upgraded Engine 106 to a Paramedic Assessment Engine−2018– Proposal to upgrade one (1) Firefighter position to a Firefighter/Paramedic ADVANTAGES OF UPGRADING FF TO FF/PM POSITIONS•To provide a paramedic on scene in the event the Paramedic rescue was delayed •To allow paramedic staff to maintain their firefighting skills•To retain and utilize the Department’s existing Firefighters who already posses paramedic certification ENERGOV, PERMIT TRACKING PHASE 2: $48,800•The deployment of mobile devices for field personnel for permit tracking and management•View daily inspections with map interface•Upload photographs and notes, sign and distribute inspection results CONTRACT INSPECTION SERVICES: $100,000•Special contract inspection services for the Hotel/Mixed-Use development on the Santa Anita Inn site•Direct communication with the developer, to ensure timely and detailed inspections SATURDAY ADULT BASKETBALL LEAGUE:REVENUE $10,600•This new program will operate for three seasons out of the year with six teams per season•Almost the entire cost of the program will be offset by the revenue the program generates ELEMENTARY SUMMER PLAYGROUNDS:NET REVENUE $200•This popular program each summer serves approximately 1,100 children at two sites over the summer•The program will remain free; however this material fee of $20 will bundle the cost of the add-on activates such as crafts, snacks and themed events for each week GOVERNMENT TRANSPARENCY UPGRADE: $40,000•Upgrade the City's website and content management system to include features of modern website technology, including enhanced translation tools which will expand our reach to all of our City’s diverse constituencies•Professional multimedia services to enhance our efforts to fully inform and engage the public in all aspects of our services and decision-making NEOGOV RECRUITMENT SYSTEM: $11,000•Technology leader in the HR software for the public sector•System automates the various components of the recruit/hiring process:•Job posting•Communication with candidates•Eliminate redundancies & streamline processes•Provide for a defendable recruitment process •Updates help ensure continued recruitment of highly qualified service providers to serve our community’s needs SERVICE LEVEL SHORTAGES & OPPORTUNITIES RESTORING SERVICES: $2,088,500Police Sergeant Police FY 2011 $176,600Maintenance Contract Officer PublicWorks FY 2010 $107,0005 Police Officers Police FY 2008 $751,800Management Analyst Admin. Svs. FY 2008 $106,400Library Technician Library FY 2007 $66,000Administrative Captain (Former Div.Chief)Fire FY 2005 $244,0003 Firefighters Fire FY 1998 $636,700 ENHANCE PUBLIC ENGAGEMENT AND INFORMATION: $440,300Public Information Officer- Centralize and broaden the public information functionCM Office $139,100GEOgraphic Information Systems (GIS) Analyst- To support citywide GIS mapping requestsDev. Svs. $106,400Management Analyst- Budget administration and special project supportRecreation $106,400Building Maintenance Technician- To Assist with City facility’s maintenance requestsPublic Works$88,400 SERVICE ENHANCEMENTS: $424,400Transportation Analyst- To support a full service transportation systemDev. Svs.$106,400Print & Electronic Resources Materials-Additional collateral and offerings for Library patronsLibrary $98,000Special Events Coordinator- Provide citywide coordination of special eventsCM Office $75,0000.5 FTE Part-Time Librarian- To support additional demand for Children’s ServicesLibrary $50,000Façade Improvement Program-Grant program to assist businesses with façade upgradesDev. Svs. $50,0001.44 FTE Part-Time Field Attendants-Assist with field allocations; 6 positions totalRecreation $45,000 MODERNIZATION OF CITY PROCESSES: $1,570,000New Finance System - Full replacement of the City’s financial accounting system to ensure responsible fiscal practicesAdmin. Svs.$1,500,000Business License Code Project- Modernize to business friendly permit process/streamline for applicantsDev. Svs. $40,000Purchasing Procurement Online Portal -Automation of purchasing workflow and functionsAdmin. Svs.$21,500Records Management Software - Streamline and automate records retention citywide for greater efficiencyCM Office $8,500 SERVICE LEVEL SHORTAGES & OPPORTUNITIESRestoring Services $2,088,500Better Engaging the Public $440,300Service Enhancements $424,400Modernization of City Processes$1,570,000Total $4,523,200 POTENTIAL BUDGET REDUCTIONS (3%) POTENTIAL BUDGET REDUCTIONS (3%)Department Budget ReductionPolice$ 698,600Fire$ 477,000Development Services$ 182,500 Public Works Services$ 123,100Recreation & Community Services$ 101,400 Library & Museum Services$ 96,000 Admin. Services$ 95,900 City Manager’s Office $ 68,800 Total$ 1,843,300 POLICEDescription/Account TitleBudget Reduction1 Sergeant's Positon $ 205,5002 Police Officer Positions $ 297,400 Youth Services Detective Position (High School Officer)$ 82,400 2 Police Cadet Positions $ 22,300Bait Car And GPS Tracker Program $ 16,200 Directed Enforcement Overtime Account $ 74,800Total$ 698,600 FIREDescription/Account TitleBudget ReductionTraining $ 21,100 Janitorial Services For Fire Headquarters (Station 105)$ 8,300 Landscaping Services From All 3 Fire Stations$ 9,400 Reserve Firefighters $ 7,000 Fire Prevention Aide's Position $ 15,000 Administrative Assistant Position $ 91,200 Deputy Fire Chief's Position $ 325,000 Total $ 477,000 DEVELOPMENT SERVICESDescription/Account TitleBudget ReductionEngineering Contract Services $ 22,500 Planning Contract Services $ 30,000 Economic Development Contract Services $ 53,000 Chamber of Commerce Support $ 77,000 Total $ 182,500 PUBLIC WORKSDescription/Account Title Budget ReductionPart-Time Non PERS Positions $ 23,500 Public Works Inspector Position $ 99,600 Total$ 123,100 RECREATION AND COMMUNITY SERVICESDescription/Account TitleBudget ReductionSnow Fest $ 26,500Summer Zone $ 6,700School Year Re-Zone $ 8,100 All City Track Meet $ 8,100Teen Egg Hunt $ 1,800 Eggstravaganza $ 3,700 Volunteen Program $ 3,200 Movies in the Park $ 16,000Concerts in the Park $ 27,300Total $ 101,400 LIBRARY AND MUSEUM SERVICESDescription/Account TitleBudget Reduction2 Part-time Front Desk Staff $ 20,000 Books $ 13,500 40% Reduction In Security Guard Services $ 10,500 Resources Such As Morningstar, Mango Languages $ 20,100Foreign Film, Book Discussions, Volunteer Support Program, English Conversation Class, Pasadena Symphony Series$ 13,000 Peacock Buzz Advertising $ 7,200 Library Catalog Access $ 3,300 Children’s Ebooks (Tumblebooks) $ 2,400 Historical Markers, Museum Artifacts, Museum Programming$ 6,000 Total $ 96,000 ADMINISTRATIVE SERVICESDescription/Account TitleBudget ReductionInvestment Management Services $ 16,000Safety/Management Physicals $ 20,000 Wellness Program $ 5,000 Ergonomics Equipment $ 15,000 Contract Services – State Mandate Claim Reimbursement Contract$ 9,000 Contract Services - Cost Allocation Program $ 7,000 Human Resource Clerk/Part-time $ 17,100Others $ 6,800 Total $ 95,900 CITY MANAGERDescription/Account TitleBudget ReductionBrochures $13,000 City Council Official Meetings $ 7,800 Program Expenses $ 5,500 City Volunteer Program $ 4,000 Special Events $ 3,500 City Beautiful Commission $ 1,500 Reduce Hours Of Records/Legal Technician $14,000 Reduce Legal Fee Budget $ 9,500 Total $ 68,800 FUTURE BUDGET CHALLENGES ESCALATING PERS COSTS0%10%20%30%40%50%60%70%80%02468101214162013-14 2015-16 2017-18 2019-20 2021-22 2023-24MillionsMisc $Safety $Misc %Safety % PERS FUNDING STATUS30-Jun-15 30-Jun-16Miscellaneous PlanAccrued Liablilty (Projected) 133,929,705 139,784,811 Market Value of Assets 94,952,165 93,110,320 Unfunded Accrued Liability 38,977,540 46,674,491 Funded Ratio 70.9% 66.6%Safety PlanAccrued Liablilty (Projected) 223,960,685 234,127,732 Market Value of Assets 142,070,931 138,550,802 Unfunded Accrued Liability 81,889,754 95,576,930 Funded Ratio 63.4% 59.2% PERS FUNDING STATUS50%60%70%80%90%100%110%SafetyMiscPERF AVERAGE UNFUNDED OPEB ACCRUED LIABILITYOPEB LIABILITYTotal OPEB Liability, valuation as of 6/30/17 19,707,399$ Market Value of Assets in the Trust, 5/1/18 3,022,474$ Unfunded Accrued Liability 16,684,925$ Funded Ratio15.3%Included in the FY2018-19 BudgetRetiree Medical Costs 812,700$ OPEB Trust Contribution 911,600$ TOTAL1,724,300$ POST EMPLOYMENT HEALTH CARE BENEFITS (OPEB)•Have taken steps to:I. Contribute to an OPEB Trust and built this cost into the annual Operating BudgetFY2015-16 $1,351,650 FY2016-17 $ 650,800 FY2017-18 $ 650,800 FY2018-19 $ 911,600II. Deposits & investment earnings will reduce the unfunded liability and eventually reach 100% funding level. 5-YEAR FINANCIAL MODEL 5-YEAR FINANCIAL FORECAST BASELINE SCENARIO – 2% INCREASE50556065707580FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23MillionsRevenue & SourcesExpenditures &Transfers 5-YEAR FINANCIAL FORECAST W/ADDITIONAL SALES TAX5055606570758085FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23MillionsRevenue & SourcesExpenditures &Transfers OPERATING RESERVES$23,166,100General Fund$7,809,800Self-Insurance Fund$3,509,000Emergency Reserve$10,147,000PERS Fund Reserve$1,351,600Medical/Dental Fund $348,700ESTIMATED AS OF JUNE 30, 2019 OPERATING RESERVES$21$24$24$25$22$23$23$23 - 5 10 15 20 25 30 - 5 10 15 20 25 30FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19MillionsGeneral FundSelf-Insurance FundEmergency ReservePERS Fund ReserveMedical/Dental Fund Total CAPITAL RESERVES$9$7$13$16$22$22$13$12 - 5 10 15 20 25 - 5 10 15 20 25MillionsCIPEquipmentCityHall Reserve FY18-19 GENERAL FUND BUDGET Beginning Fund Balance 8,208,600$ Revenue & Sources 64,389,800$ Expenses & Uses 63,288,600Revenue over Expenses 1,101,200$ Transfer to Equipment Replacement Fund (1,800,000)Transfer to Capital Improvement Fund (2,400,000)(3,098,800)Ending Fund Balance 5,109,800$ Subtotal Operating Balance CAPITAL IMPROVEMENT AND EQUIPMENT REPLACEMENT BUDGET CAPITAL IMPROVEMENT PROJECTSStreet Maintenance$4,502,800 31%Traffic Signal Improvement $175,000 1%Park Improvement$1,799,100 13%Facility Improvement$1,747,000 12%Water Related Improvement$3,458,000 24%Sewer Related Improvement$1,140,000 8%Greenscape Improvement$1,571,000 11%TOTAL $14,392,900 CAPITAL IMPROVEMENT BUDGETCapital Improvement Fund$4,092,100 29%Prop C Local Return$900,000 6%Sewer Fund$1,203,900 8%Water Fund$4,036,500 28%Transportation Impact Fees$250,000 2%Measure M$1,175,000 8%Park Fund$1,158,800 8%RMRA $952,800 7%Grants$568,800 4%Others$55,000 0%FUNDING SOURCES EQUIPMENT REPLACEMENT PROJECTSOffice Machines & Furniture$163,700 5%Computers & Software$125,100 4%Field & Plant Equipment$520,000 17%Vehicles & Major Parts $1,853,900 61%Communication Equipment $398,600 13%TOTAL $3,061,300 EQUIPMENT REPLACEMENT BUDGET EQUIPMENT REPLACEMENT BUDGETCOSTS FUNDINGPolice 3 B/W Ford SUV PPV4 Used Vehicles for Detectives2 SUV for Administrative staffStreet 1 CNG Water Tanker Truck 300,000 ER/AQMD/Sewer/Water/GrantFire1 Chevrolet Tahoe50,000 ERTransit 8 Arcadia Transit Cutaways 640,000 FTA Grant/Prop AWater1 CNG Excavator 545,900 Water/AQMDPolice Radio Replacement 117,000$ ERPolice FARO Laser Scanner - 3D Diagramming 91,800 ERPublic Works Equipment including a Stump Grinder 144,000 ER/Water/SewerFire Cardiac Monitor Replacement Program 100,000 ERFire Radio and Mobil Computer Replacement 180,000 ERMicrosoft Operating System and Software Licensing 92,000 ER/WaterVehicle ReplacementOther Major Projects318,000$ ER DIMINISHING CAPITAL FUND BALANCE0.01.02.03.04.05.06.07.08.09.0(20.0)(15.0)(10.0)(5.0)0.05.010.015.0Capital Project CostsAdditional FundingCapital Improvement Fund BalanceANNUAL CONTRIBUTION OF $2.4M DIMINISHING EQUIPMENT FUND BALANCE0.00.51.01.52.02.53.03.54.04.5(6.0)(4.0)(2.0)0.02.04.06.08.010.012.02011-122012-132013-142014-152015-162016-172017-182018-192019-202020-212021-222022-232023-242024-252025-262026-272027-282028-292029-302030-312031-322032-332033-342034-352035-362036-372037-382038-392039-40MillionsMillionsEquipment Purchase/ReplacementAdditional FundingEquipment Replacement Fund BalanceANNUAL CONTRIBUTION OF $1.8M UNFUNDED CAPITAL PROJECTS: $92,195,000Parks Master Plan Improvements $47,000,000Stormwater Management Compliance $28,600,000Downtown Parking Lot Development $12,500,000Live Oak Right-of-Way Improvements $1,360,000Baldwin Business District Streetscape Improvements$1,000,000Parking Lot Resurfacing $950,000Huntington Drive Streetscape Improvements $600,000Wash Rack Biofilter $185,000 FY18-19 GENERAL FUND PROPOSED BUDGETBeginning Fund Balance 8,208,600$ Revenue & Sources 64,389,800$ Expenses & Uses 63,288,600Revenue over Expenses 1,101,200$ Transfer to Equipment Replacement Fund (1,800,000)Transfer to Capital Improvement Fund (2,400,000)(3,098,800)Ending Fund Balance 5,109,800$ Subtotal Operating Balance FY 2018-19 BUDGET SUMMARY•Budget Shows $3.1 million shortfall•Was anticipated due to PERS increases•Maintains full transfers to Capital/Equipment Funds•Meets Council’s Goals to set aside funds for future facility needs and mitigate long-term liabilities•Sufficient Reserves to cover deficit in short term•Use current year to fully assess alternatives•Service delivery models•Potential service reductions•Revenue enhancements RECOMMENDATIONS•Approve Resolution No. 7224 – adopting the Fiscal Year 2018-19 and appropriating the amounts specified therein as expenditures from the Funds•Approve Resolution No. 7225 – adopting a Capital Improvement and Equipment Plan for the Fiscal Year 2018-19 through 2022-23•Appoint Members to Citizen’s Financial Advisory Committee and begin full assessment of alternatives and community priorities QUESTIONS?