HomeMy WebLinkAbout17- Finance Altp��
�= Public Hearing
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City of San Bernardino
Request for Council Action
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Date: June 7, 2017
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To: Honorable Mayor and City Council Members 0
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From: Mark Scott, City Manager o
By: Andrea M. Miller, Assistant City Manager and Interim Public
Works Director }
Brent A. Mason, Finance Director
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Subject: Proposed 2017/18 Operating Budget and Capital Improvement
Program N
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Recommendation Ln
Conduct a Public Hearing to receive comments from the public relative to the ProposedCo
2017/18 Operating Budget and the Capital Improvement Program (CIP) and provide
direction to staff.
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Background
Section 701 of the City Charter provides that the City Manager shall prepare and submit
to the Mayor and City Council a proposed budget for the ensuing fiscal year and
indicate major changes from the current year including changes in financial policies,
expenditures, revenues and the reasons for the changes. The budget shall provide a
complete financial plan of all City funds and activities for the upcoming fiscal year and
include a multi-year capital plan. The City's budget and CIP will strive to achieve the
best practice standards set by the Government Finance Officers Association for Y
distinguished budget presentation.
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The Charter also provides that a general summary of the budget and CIP shall be co
published, and the Mayor and City Council will hold a public hearing on the proposed
budget. After that public hearing, the budget and CIP may be adopted, as they may be N
amended, by the City Council before the beginning of each fiscal year. This evening's
meeting was noticed as a public hearing for the purpose of receiving public input on the �-
proposed budget. The Proposed 2017/18 Operating Budget and Capital Improvement U
Program will be presented to the Mayor and City Council for further review and U_
recommended adoption on June 21, 2017, in advance of the new fiscal year.
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On May 8, 2017, the Mayor and City Council participated in a budget workshop where
the proposed operating budget was presented. The City Manager discussed items that cc
were included in the budget and those that were not able to be included based on
funding limitations. Staff then made individual presentations by department highlighting
items that were either material to the departmental budget and/or that had changed
from the prior year. The Mayor and City Council asked various questions throughout
and staff from the various City departments responded to those inquiries. m
The CIP, and the efforts being made by the City Departments to critically review the
capital projects identified over the last several years, leading to the development of a o
realistic, achievable CIP, were discussed with the Mayor and City Council at the 00
January 23, 2017, meeting. At this meeting, the Mayor and City Council reviewed the ti
FY 2016/17 draft CIP document, which had been modified to provide greater detail with N
respect to the projects to be completed and more accurate cost estimates and project
timing. While significant work remains to be completed, the FY 2017/18 CIP focuses on }
the projects that will be able to be delivered in the upcoming fiscal year given the
continued limitations on funding and resources. y
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Discussion
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Since the May 8 meeting, minor changes/corrections have been made to the proposed o
Operating Budget, totaling approximately $597,000. A corresponding reduction to total a
PERS cost was able to be made to absorb this entire amount and add an additional Ln
$2,000 to the original proposed surplus. The savings in PERS cost arose from a o
decision to early-pay the fixed piece of the PERS payment in July rather than payment
throughout the year. The interest lost on those funds is minor at roughly 1% but the o
savings offered by PERS for the early-pay is about 3.5%. w
The additional cost items are primarily related to refined numbers from the property a
manager for the maintenance of the Santa Fe Train Depot and the Transit Center
(opening in June 2017). Additionally, Police staffing detail required adjustment from that
presented on May 8, amounting to an increase of approximately $140,000. Lastly, staff
had neglected to include the expenditure related to a $66,000 grant awarded to the
Library but had included the revenue. These items were offset by the removal of a
position in the City Manager's office that had been included in the numbers presented
on May 8; this offset the above items by $136,000. The Proposed 2017/18 Operating
Budget is included as Attachment 1. o
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Any further changes directed by the Mayor and City Council at this evening's public
hearing will be incorporated prior to presenting the proposed Operating Budget for N
adoption at June 21, 2017, meeting.
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Included as Attachment 2 is the proposed FY 2017/18 CIP. Over the last several
months, the City has continued to further define the scope of the proposed projects, An
establish more accurate cost estimates and project completion schedules, and identify
funding sources. Emphasis has been placed on those projects and/or project phases E
that can realistically be completed in the upcoming fiscal year. The multi-year CIP will s
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continue to refined and presented for further review, analysis and direction by the Mayor
and City Council over the next few months. A presentation on the projects that will be
the focus of the City in FY 2017/18 will be made by the City Manager and Public Works
staff at this evening's meeting. Adequate funding exists for all of the proposed projects.
Fiscal Impact -�
The Proposed 2017/18 Operating Budget is approximately $160 million with offsetting m
revenues of $159 million. The difference is made up from existing resources on hand,
primarily in the Gas Tax Fund. Adequate resources exist to support the proposed
operating budget and CIP. a
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The General Fund component is balanced at approximately $120 million, with a modest
$108,649 surplus.
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Conclusion }
It is recommended that the Mayor and City Council conduct a Public Hearing to receive
public comment regarding the Proposed 2017/18 Operating Budget and CIP projects. N
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Attachments N
Attachment 1 Proposed 2017/18 Operating Budget o
Attachment 2 Proposed 2017/18 CIP a
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Ward: N/A
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