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HomeMy WebLinkAboutBudget Presentation FY 2018-19 Mayor and City Council Meeting May 17, 2018 Fiscal Year 2018/19 Proposed Budget �Qt`tllAkqA O w• , s City Manager's Office and �U,v ., Finance Department Introduction City Manager's Opening Remarks Q� xARD�h S� �9 Proposed Budget Overview - All Funds Total Proposed Operating and Capital budget — $212 , 815,712 FY 2018/19 Capital Improvement Program - $4670647277 FY 2018/19 Budgeted Expenditures - $16677517435 Increase from prior year of $6.7 million 725 employees proposed citywide Reflects decrease of 21 positions and addition of 2 position Vacant positions (many for a year or more) Contracting where fiscally prudent Q� xARDh S� �9 •�oU`�f►E'D 1131g0 Proposed Budget Overview - General Fund • FY 2018/19 Budgeted Revenues - $ 12679907500 Increase of $7M from prior year adopted budget Initial deficit of $5 million FY 2018/19 Budgeted Expenditures - $ 12679777184 Also increase of $7M from prior year adopted budget Balanced with a $ 13, 316 surplus More work to be done to create greater margin to allocate resources to the Goals and Objectives Still working to ensure existing resources AR° llocated to the right things •�oU`f►E'D 1131g0 Overview of Key City Revenues City has many different revenue sources — some intended for operations and some for capital Most support the General Fund and are unrestricted in nature — others accounted for separately due to their unique spending restriction Review of the more significant revenues sources within the General Fund and the restricted funds Q��xARDh S� �9 •�oU`f►E'D 1131g0 Overview of Key City Revenues Sales Tax ($36.75M in FY 2018/19) Largest source of revenue 1 % piece of the local 8% tax applied to the sale of goods and some services Use a firm to help monitor/manage the state's allocations to the City — errors occur and get corrected • Project based on known trends in the regional and state economy — forecast at 4% for FY 2018/19 Q��xARDh S� �9 •�oU`�f►E'D 1131g0 Overview of City Revenues Measure Z ($8.6M in FY 2018/19) Voter-approved .25% transaction tax added to the local sales tax rate of 7.75% for a total local rate of 8% Expires April 1 , 2022 — a 15 year tax Functions exactly like sales tax, except for purchase of large vehicles (cars, trucks, aircraft, boats) — only assessed on City of San Bernardino residents' purchases State Board of Equalization has a tool to facilitate Same firm assists with monitoring Measure Z revenues Forecast in same way as Sales Tax — only 2% growth for FY 2018/19 based on correcting misallocations by local vendor Q��xARDh S� �9 •�oU`�f►E'D 1131g0 Overview of City Revenues Utility Users' Tax ($25.25M in FY 2018/19) Second largest City revenue source Generated by a 7.75% tax on residents' utilities by the service provider and remitted to the City All utilities except for cell phone, satellite TV service Makes projections more complicated as different industries have different trends/issues — landlines diminishing, weather patterns, satellite vs. cable Conservatism applied — forecasting a 1 % increase for FY 2018/19 Q��xARDh S� �9 •�oU`�f►E'D 1131g0 Overview of City Revenues Vehicle License Fee ($15.8M in FY 2018/19) Property tax money swapped by the State when they cut the car tax Grows like regular property taxes, benefitting when overall assessed value increases Subject to the "VLF Sharing Agreement" with County, recently amended in City's favor — City receives 73.5% of total VLF revenue County provides indication of what total VLF will be in subsequent year — typically very conservative • Forecasting 5% growth in the VLF revenue for FY 2018/19 Q� xARDh S� �9 •�oU`�f►E'D 1131g0 Overview of City Revenues • Franchise Fees ($9.6M in FY 2018/19) Collected from various utility service providers (not municipal water/sewer) Compensates for the costs City incurs to have them operate within the City's public right of way Rates vary by utility from 2% to 5% Like with UUT, difficult to project because of industry factors/trends Solid Waste is largest piece of this revenue (70%) — it's growth allows for a forecast of overall 4% growth in FY 2018/19 Q� xARDh S� �9 •�oU`�f►E'D 1131g0 Overview of City Revenues • Transient Occupancy Tax ($4.9M in FY 2018/19) • Also called the "Hotel Tax" — 10% • Assessed on guests of hotels/motels for overnight stays • City's proximity to local airport and position along the 10/215 corridors has generated very good growth in recent years — sustained over 5% • Demand for rooms is high • Room rate per night strengthened • Forecast growth for FY 2018/19 is 4% AR U�D 'D ll3 Overview of City Revenues • Fees and Charges ($4.5M in FY 2018/19) Collected for services provided to residents, businesses and guests — many different services Development oriented fees from Community Development and Public Works are largest portion Other fee centers are P, R & CS, Police and Library Finalizing an update to the current level of fees — not adjusted in many years — to be completed summer 2018 Anticipate proposed increases to reflect increased staff costs over the years Projection for FY 2018/19 is relatively flat, though the outcome of the Fee Study may increase that mid-year Q��xARDh S� �9 12 Overview of City Revenues • Licenses and Permits ($9.9M in FY 2018/19) • Revenue collected from residents/businesses for the right to conduct an activity or build something in the City • Business Registration collections represent 79% of the total revenue • Fairly static revenue source as the municipal code has no CPI adjustment built in — vote of the citizens to change • Development related permits makes up the other significant piece of this revenue • Projected relatively flat for FY 2018/19 AR 13 U�D 'D ll3 Overview of City Revenues • Restricted Revenue Sources (Non-General Fund) Housing and Urban Development Funds CDBG, HOME, ESG, NSP programs More than $6M in FY 2018/19 funding Funds to be used to target blighted areas meeting certain economic criteria Gasoline Tax (including the new Gas Tax funding) City's share of the per gallon fuel tax paid by purchasers Over $9M in FY 2018/19 funding Restricted for use on street maintenance and construction projects Q��xARDh S� �9 •�oU`�f►E'D 1131g0 Overview of City Revenues Measure I Funds Generated from a half-cent Countywide sales tax Also restricted for use on street maintenance and construction projects Subject to annual audit Nearly $4M projected in FY 2018/19 Development Impact Fees Various fees assessed to new development to recover estimated cost of the impact of new development Restricted to projects that relieve the impact associated with new development Do not forecast development impact fees — conservative }��glARp�o o� �9. • Updated study to begin Summer 2018 15 Departmental Budget Reviews — City Attorney Consists of 1 Division - Municipal Legal Services 14 FTE's proposed for FY 2018/19 Budget Highlights: Reduction of 5 FTE 7s (savings of $498,000) Administrative Analyst II (2 years) Investigations Supervisor (3.5 years) Deputy City Attorney 1 (2 months) Sr. Deputy City Attorney (3 months) Office Assistant (3 years) Q��xARDh S� �9 16 Departmental Budget Reviews — City Attorney (cont.) • Budget Highlights: Addition of $250,000 for office modernization Addition of $100,000 for City Prosecutor Increased funding for outside counsel and costs to defend the anticipated increase of cases (lifting of the automatic stay) - $3507000 If 5 FTE's funded and contract cost eliminated, budget increased by $1487000 • If 2 attorney FTE's funded and contract cost eliminated — departmental budget reduced by $937000 Q��xARDh S� �9 •�oU`f►E'D 1131g�0 Departmental Budget Reviews — City Clerk • Consists of 3 Divisions — Administration, Elections, and Records Management. Passport Acceptance Facility operated through the Administration Division. 5 FTE's proposed for FY 2018/19 Budget Highlights: Reduction of 1 FTE (savings of $92,000) Records Management Specialist (2 months) Addition of $100,000 for November 2018 election costs Q��xARDh S� �9 •�oU`�f►E'D 1131g0 Departmental Budget Reviews — City Manager • Consists of 6 Divisions— Administration; Administrative Services; Air Quality & Rideshare; Communications, Community Relations & CATV; Customer & Neighborhood Services; and Violence Intervention 15 FTE's proposed for FY 2018/19 Budget Highlights: Reduction of 1 FTE (savings of $60,000) Call Taker (1 year) • Includes contracts budgeted in General Government previously (VIP Program and grants contract) Enhancements to the Violence Intervention Program • Includes new Communications contract for City xARD rebranding, marketing, and public relations •�oU`�f►E'D 1131g0 Departmental Budget Reviews — Community Development - Consists of 4 Divisions — Administration, Building & Safety, Land Development and Planning 23 FTE's proposed for FY 2018/19 Budget Highlights: Reduction of 4 FTE 7s (savings of $240,000) 2 Counter Techs (2 months); Executive Assistant (2 months); Senior Plans Examiner (3.5 years) Provides funding for FEMA plan review — $507000 Provides funding for public outreach regarding Unreinforced Masonry Building Ordinance — $757000 Provides funding for Environmental/CEQA review of Carousel Mall and the new Cannabis Ordinance — ARp�o $1007000 }��gl • Funding for Verdemont and Downtown Specific Plans •�oU`�f►E'D 1131g�0 Departmental Budget Reviews - Economic and Housing Development • Consists of 3 Divisions — Economic Development, Housing, and Successor Agency 7 FTE's proposed for FY 2018/19 Budget Highlights: Reduction of 1 FTE (savings of $86,000) Economic Development Analyst (1 year) • Increased HUD allocations for CDBG and HOME Funding included for maintaining City-owned properties formerly owned by the Redevelopment Agency Q��xARDh S� �9 21 Departmental Budget Reviews - Finance Consists of 5 Divisions — Administration, Accounting, Budget, Business Registration, and Purchasing 27 FTE's proposed for FY 2018/19 Budget Highlights: Reduction of 1 FTE (savings of $42,000) Accounting Assistant (4+ years) Professional/Contractual Services reduced due to improved pricing for the City's annual audit and discontinued contract with third-party consultant HR/Payroll system conversion costs included Funding for electronic bidding system included Q��xARDh S� �9 22 Departmental Budget Reviews — General Government • Includes costs attributable to City as a whole Budget Highlights: Animal Control General Fund transfer - $1 .3 million Former contracts/expenses transferred to responsible City department - $838,000 Debt service payments - $1 .8 million Tax Sharing Agreements - $1 .5 million Cooperative Maintenance Agreements - $1 million Cultural Arts Grants - $3007000 Q� xARDh S� �9 23 Departmental Budget Reviews — Human Resources • Consists of 3 Divisions — Administration, General Liability and Workers' Compensation • 9 FTE's proposed for FY 2018/19 Budget Highlights: Funding shift for claims payments from General Liability to Workers' Compensation — budget neutral Anticipate savings in excess liability insurance premiums Increase to the Employee Recognition Program — $107000 Increase to the Tuition Reimbursement Program — $107000 Increase to the Employee Wellness Program — $57000 Q��xARDh S� �9 •�oU`�f►E'D 1131g0 Departmental Budget Reviews - Information Technology - Consists of 7 Divisions — Administration, Business Systems, Client Services, GIS & Office Automation, Network Services, Public Safety Systems and Print Shop 15 FTE's proposed for FY 2018/19 Budget Highlights: After staffing costs, 70% of budget funds the annual cost for software maintenance, hardware support agreements and phone/network expenses Support multiple system upgrades in FY 2018/19 Provides funding to continue the strategic replacement of the City's personal computers (approximately 80 new machines) - $1007000 Q��xARDh S� �9 25 Departmental Budget Reviews - Legislative Legislative Reconfigured organizational structure Consists of 2 Divisions — Office of the Mayor and Office of the City Council. 15 FTE's proposed for FY 2018/19 8 Elected Officials 3 FTE's Mayor's Office 4 FTE's City Council's Office Budgets largely consistent with prior year's level of expenditures Q��xARDh S� �9 26 Departmental Budget Reviews - Library Consists of 4 Divisions — Administration, Support Services, Central Library Services, Branch Library Services 11 FTE's proposed for FY 2018/19 Budget Highlights: Continues funding for existing level of service, including two literacy grants Includes a small increase in the funding for library materials (books, e-books, audio books, magazines) 90% of Wi-Fi expenses funded through a consortium grant Rowe branch library funded for a new roof (CDBG) Q� xARDh S� �9 •�oU`�f►E'D 1131g0 Departmental Budget Reviews — Parks, Recreation and Community Services • Consists of 4 Divisions — Administration, Parks, Recreation, and Community Services 31 FTE's proposed for FY 2018/19 Budget Highlights: Reduction of 1 FTE and addition of 1 FTE (net savings of $65,000) Delete Parks Maintenance Manager (1 .5 years); add Community Recreation Coordinator Increased scope of landscape maintenance contract to 7 days of trash service (form 4 days) Increased programming in youth leagues • Increased hours at the Hernandez Community Center }��glARp�o o� U�9�"• Increased art programming at five Community Centers H � •�oU`�f►E'D 1131g0 Departmental Budget Reviews - Police Police Consists of 5 Divisions — Administration, Investigations, Public Safety, Support Services, and Animal Control 449 FTE's proposed for FY 2018/19 Budget Highlights: Reduction of 1 FTE (savings of $67,000) Code Enforcement - additional contractual expenses for board-up services Reduced costs for outside security contract based on consolidation of efforts with other agencies Funding for to continue fleet replacement (marked and & unmarked vehicles) }��glARp�o o� U�9�"• Funding provided for technology upgrades •�oU`�f►E'D 1131g0 Departmental Budget Reviews — Public Works Consists of 5 Divisions — Administration, Operations & Maintenance, Engineering, Facilitates & Fleet, and Environmental 104 FTE's proposed for FY 2018/19 Budget Highlights: Reduction of 7 FTE 7s (savings of $460,000) Admin Svcs Spvr (I year); Const Insp II (1 year); Acctg Tech (1 year); Electrician 1 (4 years); Eng Asst (1 year); Lead Maint Wkr (1 year); Maint Wkr (1 year) New funding provided for critical resources consistent with essential infrastructure maintenance and project delivery Reallocation of funding within the budget to establish less }�tixARD.�.o reliance on the Gas Tax Fund for regular street maintenance — more funding for Capital Projects •�oU`�f►E'D 1131g0 Departmental Budget Reviews — Public Works Budget Highlights: Provides funding for new pothole patching and skin coating vehicles — $3607000 Increased funding for removal of dead trees and maintaining existing trees — $9567000 Increased funding for trip hazard mitigation (sidewalk grinding & ramping services) — $2007000 Increase for traffic studies, management, counts, calming and new signals - $2807000 Q��xARDh S� �9 •�oU`f►E'D 1131g�0 Conclusion - Next Steps Budget Study Session — Capital Improvement Program Budget Public Hearing — June 6th Budget Adoption — June 20th Q��xARDh S� �9 •�oU`f►E'D 1131g0