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Home My WebLink AboutCC AG PKT 2014-05-29 #2CITY OF SEAL BEACH BUDGET STUDY SESSION FISCAL YEAR 2014 -2015 OVERVIEW FY 2014 -2015 Budget Study Session -- Schedule -- Thursday - May 29th 5:30 General Government and Safety Public comments at the end of the presentation Monday - June 2nd 5:30 Capital Improvement Program Public comments at the end of the presentation Monday - June 9th Budget Adoption - FY2014 -2015 Budget Workshop — May 29, 2014 OVERVIEW FY 2014-2015 Budget Process February 2013 City Council and Executive Team Goal Setting Workshop March 2014 Expense and personnel worksheets are released Revenue information begins to be compiled Finance staff coordinates deadlines for receiving information from departments Department Heads meet with City Manager to discuss budgetary needs and supplemental requests Preliminary budget is developed April Et May Staff meets individually with Council Members May Proposed budget is completed and includes supplemental requests as appropriate Budget study sessions June Budget adoption FY2014 -2015 Budget Workshop — May 29, 2014 OVERVIEW FY 2014-2015 Budget Process Budget development: Zero -based budgeting Developed based upon Federal, State, and City Council Mandates Supplemental requests FY2014 -2015 Budget Workshop — May 29, 2014 4 OVERVIEW FY 2014-2015 Budget Process Budget development (cont.): Revenue - Based upon the prior 3 years' actual receipts Adjusted for one -time events and known trends General Fund revenue Expenses - Based upon historical costs Adjusted for one -time events and known price increases Personnel - Based upon existing agreements FY2014 -2015 Budget Workshop — May 29, 2014 OVERVIEW FY 2014-2015 Budget Process Budget development (cont.): Capital - Project costs use Engineer's estimates Reserves - Based upon adopted Fiscal Policies FY2014 -2015 Budget Workshop — May 29, 2014 6 City Council Goals LIMaintain and Improve Public Assets and Infrastructure LIMaintain Public Safety and Quality of Life LJEnsure Long -Term Financial Stability ❑ Preserve service levels ❑Exercise Fiscal Discipline in decision making ❑Maintain reserve requirements FY2014 -2015 Budget Workshop — May 29, 2014 City Council Goals LIFoster Economic and Community Development LIEnhance Public, Media, and Intergovernmental Relations LIEnhance Organizational Development and Customer Service FY2014 -2015 Budget Workshop — May 29, 2014 8 Budget Goals ✓Present balanced budget ✓Preserve current service levels ✓Preserve core work force ✓Maintain 20 -25% fund balance ✓Incorporate Community Organization requests for funding FY2014 -2015 Budget Workshop — May 29, 2014 9 REVENUE PROJECTIONS FY2014 -2015 Budget Workshop — May 29, 2014 10 Revenues Revenues: Top 3 Changes in Projections: ➢Sales Tax - ($623,000) ➢ Property Taxes - $386, 000 ➢ Franchise Fees - $142)000 FY2014 -2015 Budget Workshop — May 29, 2014 11 General Fund Revenues Fiscal Year 2014 -2015 Proposed Revenues - $28,643,300 Charges for Services 3,054,200 11% Intergovernmental 393,600 1% Licenses and Permits 1,200,400 4% Other Taxes_/ 303,000 1% Franchise Fees 1,129,000 4% Fines and Forfeitures 1,045,900 4% Transient Occupancy Tax 1,200,000 4% Use of Money and Property 420,000 1% Utility Users Tax 5,300,000 19% FY2014 -2015 Budget Workshop — May 29, 2014 12 Other Revenue 499,500 2% Transfers 350,000 1% Sales Tax 4,679,000 16% Property Tax 9,068,700 32% Major Revenue Sources FY2014 -2015 Budget Workshop — May 29, 2014 13 1. Sales Tax, Property Tax, and Utility User's Tax make up 67% of Revenue 2. Revenue assumptions are conservative, based on historical trends and current economic information 9,000,000 4,000,000 - 1,000,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 FY2014 -2015 Budget Workshop — May 29, 2014 14 Sales Tax 2006 -2015 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 FY2014 -2015 Budget Workshop — May 29, 2014 Utility Users Tax 2006 -2015 FY2014 -2015 Budget Workshop — May 29, 2014 UUT Annual Review FY 2014 -2015 Budget June 2011 - Ordinance 1610 amended the Municipal Code to provide for annual review of UUT in conjunction with the annual budget Estimated to generate $5.3 million in FY 2014 -2015 2nd or 3rd largest revenue source Used to fund General Fund capital projects Recommend no change to the current rate of 11 FY2014 -2015 Budget Workshop — May 29, 2014 BREAK FY2014 -2015 Budget Workshop — May 29, 2014 18 EXPENDITURE ESTIMATES FY2013 -2014 Budget Workshop - June 4, 2013 19 Fiscal Year 2014 -2015 General Fund Proposed Expenditures - $31,782,500 Transfer Out 6,072,300 19% Recreation and Community Services 1,222,200 \ 4% Public Works 4,167,300 13% Community Development 944,000 3% General Administration 4,082,600 13% Fire Protection Services 4,675,900 15% FY2014 -2015 Budget Workshop — May 29, 2014 20 Liability /Risk Management 790,600 2% olice Department 9,827,600 31% Fiscal Year 2014 -2015 General Fund Proposed Expenditures - $28,587,500 (Excluding CIP) Transfer Out 2,877,300 10% Recreation and Community Services _ 1,222,200 4% Public Works 4,167,300 15% Community Development 944,000 General 3% Administration 1 4,082,600 14°/ Fire Protection Services 4,675,900 16% FY2014 -2015 Budget Workshop — May 29, 2014 21 Liability /Risk Management 790,600 3% Department 9,827,600 35% Expenditures Expenditures: ➢Fire Station Bonds - $566,100 (principal and interest - 04/15/2024) ➢OPEB - $228,600 lifetime medical (Retirees) ➢ GASB 45 - scheduled to be paid one time at June 2014 (include $289,400 from Actuarial Report) ➢Pension Bond - $1,100,000 (principal and interest) ➢Police - (06/15/2019) ➢Created new program for West County Communications (WestComm) JPA FY2014 -2015 Budget Workshop — May 29, 2014 Expenditures Expenditures: ➢COLA - 1.4% for Executive, Mid - management, SBSPA, and OCEA ➢Non- police employee share of CalPERS increases to 6% ➢Part -time hourly rates ➢ PMA and POA will be paying 12% employee share of CalPERS FY2014 -2015 Budget Workshop — May 29, 2014 23 Council Discretionary Fund Review District 1: Allocated — Christmas Decorations $5,186 Hanging Flower Pots (hardware) $9,288 Hanging Flower Pots (plants) $ 880 Hand watering (April to July) $1,840 Replanting of Main Street Planters $1,200 (After the car show) District 2: Allocated —North Gate Road $10,000 Bicycle safety, landscape improvements College Park Drive $10,000 Landscape improvements FY2014 -2015 Budget Workshop — May 29, 2014 Council Discretionary Fund Review District 3: Allocated -Long Breach Transit $20,000 Bus Stop improvements District 4: Allocated -Seal Beach Tennis Center $ 89000 Drinking fountain replacement Lampson Avenue $12,000 Landscape improvements FY2014 -2015 Budget Workshop — May 29, 2014 Council Discretionary Fund Review District 5: Allocated - North Gate Road $201000 Bicycle safety, landscape improvements FY2014 -2015 Budget Workshop — May 29, 2014 26 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 Revenues vs. Expenses Excluding CIP 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 FY2014 -2015 Budget Workshop — May 29, 2014 27 Revenues Expenses GenerW Fund Summary (Operating Budget Only) FY 2014 -2015 Budget Revenues over Expenditures: Projected Revenues Projected Expenditures Estimated Surplus FY2014 -2015 Budget Workshop — May 29, 2014 28 $2816431300 (2895879500) 559800 Discussion FY2014 -2015 Budget Workshop — May 29, 2014 29 FUND BALANCE RESERVES FY2014 -2015 Budget Workshop — May 29, 2014 30 Beginning Fund Balance General Fund Total Fund Balance FY2014 -2015 Budget Workshop — May 29, 2014 31 General Fund Estimated Fund Balance Beginning Fund Balance Net Revenues (Expenditures) Estimated Ending Fund Balance Assigned for Encumbrances Assigned for Designations Assigned for Fiscal Policy Unassigned Fund Balance Total Estimated General Fund Balance FY2014 -2015 Budget Workshop — May 29, 2014 32 2014 -2015 $ 27, 867, 023 3,139,200 $ 241727,823 $ 1651728 813661153 7,146, 875 9,049,067 $ 2437273823 General Fund FY 2006 -2015 Fund Balance 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 2006 2007 2008 2009 2010 2011 2012 2013 FY2014 -2015 Budget Workshop - May 29, 2014 33 u 2014 2015 Projected Projected FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Prior year adjustment 4,032,093 365,794 RESERVED 772,053 677,599 182,500 211,000 30,300 102,500 353,098 41,586 165,728 165,728 UNRESERVED: DESIGNATED 10, 608, 292 10, 511, 000 12,183, 642 33,111, 042 23, 832, 405 17, 685, 550 18, 592, 975 18, 887, 580 17, 299, 817 15, 513, 028 U N DESI G NATED 11, 577, 412 14, 343, 264 21, 078, 687 3,143, 085 6,156,145 8,288,007 9,212,512 9,967,215 10, 401, 478 9,049,067 TOTAL FUND BALANCE 22, 957, 757 25, 531, 863 37, 476, 922 36, 465,127 30, 018, 850 26, 076, 057 28,158, 585 29, 262,175 27, 867, 023 24, 727, 823 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 2006 2007 2008 2009 2010 2011 2012 2013 FY2014 -2015 Budget Workshop - May 29, 2014 33 u 2014 2015 Reserve Summary YABudget Analysis \Executive Summary FY 2012- 2013.xlsx FY2014 -2015 Budget Workshop — May 29, 2014 34 General Fund Assigned Fund Balance Projections for Non=CIP FY 2014 -2015 Fiscal College Comp. City Clerk Policy Park East Economic Absences Encumb. Total Beginning Balance 0 6,988,664 477,000 1,750,000 740,035 165,728 10,121,427 Increase (Decrease) Year End Adjustment Total Expenditures Ending Balance Projected 158,211 158,211 0 158,211 0 0 0 0 158,211 7,146,875 477,000 1,750,000 740,035 165,728 10,279,638 FY2014 -2015 Budget Workshop — May 29, 2014 35 General Fund Assigned Fund Balance Projections for CIP FY 2014 -2015 Swimming Street Storm Pool Improvement Drain Buildings Old Town Total Beginning Balance 4,856,800 117,167 1,416,501 463,650 490,000 7,344,118 Projects BG0904 New Swimming Pool (400,000) ST1203 Main Street Lighting Improv. BG1204 City Hall Remodel (490,000) (400,000) (490,000) BG1401 Council Chamber Remodel (300,000) (300,000) BG1501 (25,000) (25,000) BG1502 (5,000) (5,000) BG1503 (25,000) (25,000) SD1401 College Park East Storm Drain Master Plan Improvement ST1205 SB Comprehensive Parking Mgmt Plan Total Expenditures Ending Balance Projected (400,000) 4,456,800 FY2014 -2015 Budget Workshop - May 29, 2014 117,167 36 (700,000) (700,000) (355,000) (490,000) 716,501 108,650 (700,000) (1,945,000) 5,399,118 Projected Assigned Ending Fund Balance Summary FY 2073 -2014 Assigned for Encumbrances College Park East Swimming Pool Economic Condition Old Town Improvement Street Improvement Storm Drain Buildings Compensated Absences Total Assigned Assigned for Fiscal Policy Estimated Beginning Proposed Balance Decreases $ 165,728 $ 477,000 4,856,800 1,750,000 490,000 117,167 1,416, 501 463,650 740,035 10,311,153 6,988,664 Estimated Ending Balance $ 165,728 - 477,000 (400, 000) (490, 000) (700, 000) (355, 000) (1,945,000) 158,211 4,456,800 1,750,000 117,167 716,501 108,650 740,035 8,366,153 7,146,875 Grand Total $ 17,465,545 $ (1,786,789) $ 15,678,756 FY2014 -2015 Budget Workshop — May 29, 2014 37 BREAK FY2014 -2015 Budget Workshop — May 29, 2014 38 Breaking News FY 2014 -2015 Budget Revenues Oil Production Revenue - $25,000 increase Fee Schedule Changes - $50,000 increase Expenses Insurance - ($50,000) decrease POA/PMA CaIPERS Contributions - ($247,800) decrease FY2014 -2015 Budget Workshop — May 29, 2014 39 Supplemental Supplemental Personnel Requests: ➢ FT Account Clerk (Cashier) iFT Corporal (in -lieu of Emergency Coordinator) ➢ FT Detective (Revenue neutral) FY2014 -2015 Budget Workshop — May 29, 2014 40 General Fund Interest 1,200,000 1,000,000 800,000 600,000 400,000 200,000 C] 2006 -2015 2006 2008 2010 2012 2014 FY2014 -2015 Budget Workshop — May 29, 2014 41 Additional Discussion Points 1. Council Compensation 2. OPEB Funding 3. Salon Meritage Memorial 4. Centennial FY2014 -2015 Budget Workshop — May 29, 2014 42 Adjusted General Fund Summary Net of General Fund CIP FY 2014 -2015 Budget Revenues over Expenditures: Projected Revenues Plus Revenue Adjustments Projected Expenditures Plus Expense Adjustments Estimated Surplus FY2014 -2015 Budget Workshop — May 29, 2014 43 $2816431300 751000 (28,587,500) 2971800 428.600 Adjusted General Fund Summary Net of General Fund CIP FY 2014 -2015 Budget Additional Adjustments: Supplemental Salon Meritage Centennial Estimated Surplus FY2014 -2015 Budget Workshop — May 29, 2014 44 ($80,500) ($80,000) ($150,000) 5118,100 Community Organization Grant Requests FY2014 -2015 Budget Workshop — May 29, 2014 45 QuVatmigna FY2014 -2015 Budget Workshop — May 29, 2014 46