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Proposed Budget FY 2016-17
City of Seal Beach California FISCAL YEAR 2016-2017 BUDGET CITY COUNCIL Sandra Massa-Lavitt, Mayor Mike Varipapa, Mayor Pro Tem Ellery Deaton, Council Member Gary Miller, Council Member David Sloan, Council Member EXECUTIVE OFFICERS Jill R. Ingram, City Manager Craig A. Steele, City Attorney ADMINISTRATIVE PERSONNEL Joe Bailey, Marine Safety Chief Jim Basham, Director of Community Development/ Interim Director of Public Works Victoria L. Beatley, Director of Finance/City Treasurer Patrick Gallegos, Assistant City Manager Robin Roberts, City Clerk Joseph Stilinovich, Chief of Police Prepared by Finance Department Victoria L. Beatley Director of Finance/City Treasurer Cover photos courtesy of: Clinton Ino, MPA Student (Cal State Long Beach) TABLE OF CONTENTS FY 2016-2017 TABLE OF CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i BUDGET MESSAGE Transmittal Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 BUDGET SUMMARIES Organizational Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Position Allocation Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Ten Year Financial Trend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Summary of Revenues and Expenditures Charts of All Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Summary of Revenues and Transfers In All Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Summary of Expenditures and Transfer Out All Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Operating Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . 16 Total Sources and Uses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 REVENUE Revenue Summary by Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Analysis of Major Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 GENERAL FUND Fund Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Analysis of General Fund Unassigned Fund Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Summary of Revenues and Expenditures Charts General Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Revenue Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Expenditure Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 General Fund Transfer Out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 GENERAL GOVERNMENT City Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 City Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 City Clerk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Legal Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 Risk Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 Non-Departmental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Information Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Special Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 Seal Beach Cable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 PUBLIC SAFETY Police - Emergency Services Bureau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Police - Field Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Police - Support Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Police - Detention Facility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 Police - Parking Enforcement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Fire Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 West Comm JPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Police - Supplemental Law Enforcement Services Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 i TABLE OF CONTENTS FY 2016-2017 Police - Inmate Welfare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Asset Forfeiture - State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 Asset Forfeiture - Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 Pension Obligation Bond - Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Fire Station Bond - Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 Police Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 COMMUNITY DEVELOPMENT Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Building and Neighborhood Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Community Development Block Grant (CDBG) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131 PUBLIC WORKS Mission Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 Senior Bus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 Administration and Engineering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 Storm Drains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Street Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 Fleet Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 Refuse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 Building/Facility Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157 Air Quality Improvement Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 Park Improvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164 Gas Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 Measure M2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 Parking In-lieu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172 Traffic Impact AB1600 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174 Citywide Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 COMMUNITY SERVICES Parks and Landscape Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 Sports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 186 Park and Recreation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188 Tennis Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190 MARINE SAFETY Mission Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193 Aquatic Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 196 Marine Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 198 Beach and Pier Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 201 SPECIAL ASSESSMENT DISTRICTS Street Lighting Assessment District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206 Community Facilities District - AD94-1 Redemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208 Community Facilities District - Landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210 Community Facilities District - Heron Pointe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212 Community Facilities District - Pacific Gateway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 ii TABLE OF CONTENTS FY 2016-2017 Community Facilities District - Heron Pointe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216 Community Facilities District - Pacific Gateway. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218 Community Facilities District - Heron Pointe 2015. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 Community Facilities District - Pacific Gateway 2016. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 222 Community Facilities District - Heron Pointe. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224 Community Facilities District - Pacific Gateway. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226 PROPRIETARY FUNDS Water Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 229 Water Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 Vehicle Replacement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236 Sewer Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 Sewer Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242 CAPITAL PROJECTS FUND Capital Improvement Projects Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 245 Capital Improvement Projects Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246 Capital Projects Fund 045 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248 SUCCESSOR AGENCY TO SB RDA Mission Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 251 Retirement Fund - Riverfront Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252 Retirement Fund - Debt Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254 Retirement Obligation Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256 APPENDIX Appropriations Limit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259 Long Term Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260 Description of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262 Glossary of Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 iii June 2, 2016 To: Honorable Mayor and Members of the City Council From: Jill R. Ingram, City Manager Re: Fiscal Year 2016-2017 Budget Message I am pleased to present the proposed annual budget for Fiscal Year 2016-2017 for the City of Seal Beach. The City’s budget is balanced with General Fund operating revenues exceeding operating expenditures by $7,900 for Fiscal Year 2016-2017. The revenue budget has been prepared using the projected revenues for the last three fiscal years as a base. The base has been adjusted for known one-time events and then projected to increase or decrease based upon expected trends. The personnel services portion of the Fiscal Year 2016-2017 expenditure budget has been prepared by projecting wages and salaries by position at current levels and adjusted in consideration of existing labor contracts with a 2.0% CPI and merit increases for the Executive, Mid-Management, SBSPA, OCEA, POA, and PMA. The maintenance and operations, and capital outlay/improvements portions of the Fiscal Year 2016-2017 expenditure budget have been prepared by using historical data to estimate costs, in addition to including estimates for new programs and projects. Fiscal Year 2016-2017 expenditures include amounts estimated for the previous year and incorporates known significant changes, such as increases in contract costs, where applicable. To better illustrate trends and changes, in virtually every section of the budget document, you will see a column indicating FY 2014-2015 actual operating results, followed by both the amended budget and estimated FY 2015-2016 year end amounts. The final column is the FY 2016-2017 proposed budget amounts. The program descriptions in each section of the budget generally include the mission statement, primary activities, and objectives of each respective program. In addition, 1 the program explanations provide detailed information about each of the budget line items to help the reader understand what constituents are receiving for their money, as well as, to assist City staff in charging items to the appropriate budget line item. It is crucial that the City continue to stay the course and maintain the present package of core services for our residents, businesses, and visitors, and protect all essential municipal services that contribute to the high quality of life in Seal Beach. As previously mentioned, the proposed budget is balanced and provides for the continuation of municipal services to residents, during a continued slow economic recovery, without the reduction in programs or services. The following is a list of key features provided in the Fiscal Year 2016-2017 budget: • To assist with fiscal management, the proposed budget offers a clear presentation of what is proposed to be funded, including funding sources and amounts. • To ensure that the “big picture” is understandable, the summary pages provide a snapshot of the City’s finances for general fund revenues of $29.9 million and expenditures of $29.9 million, excluding capital projects for FY 2016-2017 of $8.4 million. The General Fund balance is projected to be $27.8 million at June 30, 2016. This amount includes reserves and assigned fund balances of $12.2 million, leaving an unassigned fund balance of $7.3 million. • To ensure that the “details” are understandable, the budget is organized by operational departments; city attorney, city clerk, city manager, city council, community services, community development, finance, fire, human resources, marine safety, police, and public works. General Fund Budget Highlights The General Fund budget presented includes operating expenditures of $38.3 million and capital project expenditures of $8.4 million (includes a transfer to Tidelands of $2,680,000). The capital project expenditures are to be funded out of General Fund reserves with the exception of $50,000 for two projects: $30,000 City-wide Court Rehabilitation; and $20,000 for the Street Tree Planting Program. The revenues projected for the next year are conservatively estimated to reflect the current state of the economy. Total General Fund revenues are estimated at $29.9 million for Fiscal Year 2016-2017, with a $.3 million increase from the estimated FY 2015-2016 revenues. In Fiscal Year 2016-2017, the projected revenue increase is primarily due to improvements in property tax, transient occupancy tax, and licenses and permits. General Fund expenditures in the FY 2016-2017 budget are estimated to be $38.3 million. This amount includes transfers for capital projects in the amount of $8.4 million 2 for Fiscal Year 2016-2017. The current General Fund reserves are projected to be approximately $12.2 million at the end of Fiscal Year 2016-2017. Capital Improvement Plan The Capital Improvement Plan (CIP) is included as part of the proposed budget. This program identifies specific projects that are planned for construction in the City. Improvements to the water, sewer, buildings, streets, and other facilities are discussed in the CIP. During Fiscal Year 2016-2017, the Public Works department is expected to spend approximately $24.8 million. Of the $24.8 million, $12.8 million is being carried over from the FY 2015-2016 adopted budget and will be funded with reserves of fund balance. The CIP being funded out of the General Fund is $8.4 million (includes a transfer to Tidelands of $2.7 million), with $5.7 million funded out of reserves. Acknowledgment The Executive Management Team of the City deserves special recognition for their diligent efforts in developing realistic revenue and expenditure projections that continue to meet the needs of the community. The City extends a special thank you to the staff in the Finance Department for their commitment in completing the budget while simultaneously managing a growing number of significant projects. Their leadership, dedication, long hours, and necessary teamwork required to bring this budget to completion is greatly appreciated. Conclusion In summary, the budget incorporates funding recommendations from the professional City staff that are responsive to the City Council’s core priority of providing, and preserving, quality services to the residents of Seal Beach. The budget has been prepared with the City Council’s fiscal policies in mind and is based upon Federal, State, and City Council mandates. In that regard, we continue to be prudent and conservative in our approach to budgeting. We are strongly committed to our community and make every effort to achieve operational efficiencies and cost reductions without impacting quality of life. In 3 doing so we believe that our residents will continue to receive the same level of quality services they have come to expect. The staff and I welcome comments from both the City Council and the community on the spending plans for Fiscal Year 2016-2017. Respectfully submitted, Jill R. Ingram City Manager 4 5 6 7 8 9 10 11 12 Summary of Revenues and Expenditures All Funds 46% 21% 3% 12% 18% General Fund - $29,916,800 Special Revenue Funds - $13,357,500 Successor Agency Funds - $2,008,200 Proprietary Funds - $7,487,000 Capital Projects Fund - $11,596,500 Projected Summary of Revenues and Transfers In FY 2016-2017 - $64,366,000 44% 16% 2% 25% 13% General Fund - $38,261,800 Special Revenue Funds - $13,423,400 Successor Agency Funds - $1,473,000 Proprietary Funds - $21,520,000 Capital Projects Fund - $11,596,500 Projected Summary of Expenditures and Transfers Out FY 2016-2017 - $86,274,700 13 14 15 16 17 18 REVENUE SUMMARY BY FUND FY 2016-2017 2015-2016 2016-2017 Revenue 2014-2015 Amended 2015-2016 Projected Source Actual Budget Estimated Budget GENERAL FUND - 001 Taxes and Assessments: Property Tax 001-000-30001 Property Taxes Secured 6,268,317$ 6,639,000$ 6,732,200$ 6,961,100$ 001-000-30002 Property Taxes Unsecured 243,645 239,500 239,500 240,000 001-000-30003 Homeowners Exemption 47,067 50,000 46,800 47,000 001-000-30004 Secured/Unsecured Prior Year 54,360 100,000 55,000 55,000 001-000-30005 Property Tax - Other 454,594 300,000 343,200 350,800 001-000-30006 Supplemental Tax Secure/Unsecure 180,689 141,100 150,000 150,000 001-000-30009 Prop. Tax-In Lieu VLF 2,342,404 2,236,000 2,450,000 2,500,000 001-000-30013 Property Tax Transfers 107,757 125,000 120,000 120,000 Total Property Tax 9,698,833$ 9,830,600$ 10,136,700$ 10,423,900$ Sales Tax 001-000-30016 Sales/Use Tax 3,111,094$ 3,350,300$ 3,991,000$ 4,250,100$ 001-000-30017 Sales Tax "Back-Fill"862,853 1,116,700 215,300 - 001-000-30023 Public Safety Sales Tax 272,132 270,000 270,000 270,000 Total Sales Tax 4,246,079$ 4,737,000$ 4,476,300$ 4,520,100$ Utility Users Tax 001-000-30015 Utility Users Tax 4,646,434$ 4,900,000$ 4,450,000$ 4,500,000$ Total Utility Users Tax 4,646,434$ 4,900,000$ 4,450,000$ 4,500,000$ Transient Occupancy Tax 001-000-30014 Transient Occupancy Tax 1,525,723$ 1,252,500$ 1,525,000$ 1,550,000$ Total Transient Occupancy Tax 1,525,723$ 1,252,500$ 1,525,000$ 1,550,000$ Franchise Fees 001-000-30100 Electric Franchise Fees 278,048$ 275,400$ 282,000$ 287,600$ 001-000-30110 Natural Gas Franchise Fees 50,102 50,000 40,100 50,000 001-000-30120 Pipeline Franchise Fees 147,169 180,000 150,000 150,000 001-000-30130 Cable TV Franchise Fees 481,499 510,500 500,000 500,000 001-000-30140 Refuse Franchise Fees 206,777 331,500 207,000 207,000 Total Franchise Fees 1,163,595$ 1,347,400$ 1,179,100$ 1,194,600$ Other Taxes 001-000-30011 Excise Tax 385$ 500$ 500$ 500$ 001-000-30012 Barrel Tax 344,404 350,000 250,000 200,000 Total Other Taxes 344,789$ 350,500$ 250,500$ 200,500$ Total Taxes and Assessments 21,625,453$ 22,418,000$ 22,017,600$ 22,389,100$ Licenses and Permits: 001-000-30200 Animal License 28,761$ 20,000$ 20,400$ 25,000$ 001-000-30210 Building Permits 310,162 280,000 300,000 300,000 001-000-30215 Business Licenses 548,649 561,000 550,000 561,100 001-000-30220 Contractor Licenses 162,284 125,000 160,000 160,000 001-000-30230 Electrical Permits 33,252 28,000 28,000 25,000 001-000-30235 Film Location Permits 1,620 5,000 5,000 5,000 001-000-30240 Oil Production Licenses 14,220 15,000 14,000 14,000 001-000-30245 Parking Permits 184,371 200,000 200,000 200,000 001-000-30250 Other Permits 15,560 14,000 25,000 20,000 001-000-30255 Plumbing Permits 20,758 18,000 23,000 20,000 001-000-30256 Issuance Permits 55,331 50,000 55,000 55,000 001-000-30270 Arbor Park Dog License 220 400 - - Total Licenses and Permits 1,375,188$ 1,316,400$ 1,380,400$ 1,385,100$ Account Number 19 REVENUE SUMMARY BY FUND FY 2016-2017 2015-2016 2016-2017 Revenue 2014-2015 Amended 2015-2016 Projected Source Actual Budget Estimated Budget Account Number Intergovernmental: 001-000-30500 Motor Vehicle In-lieu 10,659$ 13,000$ 10,000$ 10,000$ 001-000-30841 Inmate Fee - Other Agency 2,615 5,000 3,000 3,000 001-000-30950 SB90 Mandates Reimb.8,823 - - - 001-000-30975 Grant Reimbursement 6,977 - 38,100 - 001-000-30980 Other Agency Reimbursements 263,210 6,100 3,000 5,800 001-000-30981 POST Reimbursement 6,078 20,000 10,000 22,000 001-016-30990 Senior Bus Program - OCTA 71,880 65,000 65,000 65,000 Total Intergovernmental 370,242$ 109,100$ 129,100$ 105,800$ Charges for Services: 001-000-30430 Parking Meters 111,335$ 100,000$ 110,000$ 110,000$ 001-000-30620 Rec/Lap Swim Passes 39,972 45,700 40,000 40,000 001-000-30630 Swimming Lessons 53,570 52,000 53,500 53,500 001-000-30640 Recreation Service Charges 2,483 4,000 2,500 2,500 001-000-30665 Swimming Pool Rentals 7,283 6,000 7,300 7,300 001-000-30670 Recreation Program Insurance 450 4,000 - - 001-000-30690 Recreation Cleaning Fees 7,214 8,000 8,000 8,000 001-000-30700 Reimb. For Miscellaneous Services 69,573 100,000 75,000 75,000 001-000-30800 Alarm Fees 34,682 40,000 35,000 35,000 001-000-30810 Election Fees 175 - - 200 001-000-30815 Inspection Fees - - 100 - 001-000-30820 Planning Fees 25,879 12,500 35,000 15,000 001-000-30825 Plan Check Fees 116,095 110,000 115,000 120,000 001-000-30835 Film Location Fees 3,350 - 8,500 4,000 001-000-30837 Transportation Permit Fees 3,872 2,500 2,500 2,500 001-000-30842 Inmate Self Pay 339,043 320,000 350,000 320,000 001-000-30843 Booking Fees 6,002 5,000 5,000 6,000 001-000-30870 Traffic Impact Fees 433 5,000 500 29,700 001-000-30872 Environmental Fees - 2,000 - 2,000 001-000-30873 Engineering Inspection Fees 38,258 30,000 30,000 30,000 001-000-30900 Bus Shelter Advertising 46,803 69,200 50,000 50,000 001-000-30935 Returned Check Fee 700 700 700 700 001-000-30945 Sale Printed Material 9,496 14,000 10,000 10,000 001-000-30946 Sale Printed Material - CIP only 5,279 5,000 5,000 5,000 001-000-30955 Special Events 6,686 6,000 6,000 6,000 001-000-30961 Admin Fee - Constr/Demo 18,684 20,000 15,000 20,000 001-000-30992 Charging Station Revenues 2,278 2,000 2,500 2,200 001-016-30993 Senior Nutrition Transportation 6,168 8,700 8,700 8,700 001-016-30994 Senior Transport - Thurs. Shop 20,487 18,000 18,000 18,000 001-022-30701 Subpoena Fees 1,650 - - - 001-023-30946 Traffic Report - electronic 4,510 5,000 5,000 5,000 001-030-30313 Plan Check Code Compliance - - 15,000 15,000 001-030-30314 Plan Check Energy Code Compliance - - 15,000 15,000 001-030-30316 Plan Review Soils and Geotechnical - - 1,500 1,500 001-031-30311 Administrative Citation 4,000 1,500 500 1,500 001-031-30874 Special Services Fee 10,580 7,000 10,000 10,000 001-042-30801 DPW Permit Application Fees 1,943 - 4,000 4,000 001-042-30815 Engineering Inspection Fee - - 500 500 001-042-30825 Engineering Plan Check - - 4,000 4,000 001-042-30873 Engineering Permit Fee - - 1,000 1,000 001-044-30720 Street Sweeping Svcs 44,921 54,000 45,000 45,000 001-049-30730 Tree Trimming Services 37,902 38,600 38,600 38,600 001-051-30740 Refuse Svcs 1,181,605 1,217,500 1,217,500 1,234,900 001-070-30703 Reimb. For Special Events - - 2,000 - 001-071-30641 Youth Sports - - - 11,400 001-071-30650 Sport Fees 17,898 19,000 19,000 19,000 20 REVENUE SUMMARY BY FUND FY 2016-2017 2015-2016 2016-2017 Revenue 2014-2015 Amended 2015-2016 Projected Source Actual Budget Estimated Budget Account Number 001-072-30600 Recreation Facilities Rent 127,072 135,000 135,000 137,700 001-072-30610 Leisure Program Fees 280,023 350,000 350,000 331,600 001-074-30645 Tennis Center Services 208,369 289,000 289,000 294,900 001-074-30646 Pro Shop Sales 2,123 25,000 25,000 7,000 Total Charges for Services 2,898,846$ 3,131,900$ 3,171,400$ 3,158,900$ Fines and Forfeitures: 001-000-30310 Municipal Code Violations 1,379$ 2,000$ 2,000$ 2,000$ 001-000-30315 Parking Citations 983,793 865,000 865,000 900,000 001-000-30325 Vehicle Code Violations 129,122 204,000 160,000 160,000 001-000-30963 Unclaimed Property 843 2,200 1,000 2,200 Total Fines and Forfeitures 1,115,137$ 1,073,200$ 1,028,000$ 1,064,200$ Use of Money and Property: 001-000-30420 Interest on Investments 188,398$ 275,000$ 275,000$ 275,000$ 001-000-30421 Other interest income 11,098 - 10,000 - 001-000-30423 Unrealized Gain/Loss on Invest 45,848 - - - 001-000-30455 Rental of Property 96,540 105,000 35,000 30,000 001-000-30457 Rental of Telecomm. Property 288,618 265,800 290,000 290,000 001-043-30455 Rental of Property - Ironwood 28,500 36,000 36,000 36,000 Total Use of Money and Property 659,002$ 681,800$ 646,000$ 631,000$ Other Revenues: 001-000-30300 DUI Cost Recovery -$ 1,000$ -$ -$ 001-000-30400 Commissions 52 - - - 001-000-30435 Fuel Royalties 21,493 54,000 50,000 20,000 001-000-30910 Cash Over/Short 83 - - - 001-000-30920 Damaged Property 25,539 - - - 001-000-30940 Sale of Surplus Property 10,030 10,000 10,000 10,000 001-000-30960 Miscellaneous Revenue 19,624 60,000 85,000 50,000 001-000-30964 Unclaimed Refund Checks - - 2,000 - 001-000-30971 Settlement/Court Judgement - - 1,800 - 001-000-31660 Sewer Overhead 54,000 54,000 54,000 54,000 001-000-31662 Water Overhead 324,500 324,500 324,500 324,500 001-019-30977 Prior Year Revenues 69,300 - 71,300 82,100 001-021-30960 Miscellaneous Revenue 2,400 - 21,200 - 001-022-30300 DUI Cost Recovery - - 1,000 1,000 001-022-30701 Subpoena Fee - 1,000 2,000 1,000 001-023-30312 Citation Sign Off 80 100 200 100 001-023-30947 Vehicle Release 18,765 15,000 18,000 18,000 001-023-30977 Prior Year Revenues 9,839 - - - 001-050-30977 Prior Year Revenues 220 - - - 001-070-30962 Donation- 5k/10k 9,000 - - - 001-073-30977 Prior Year Revenues - - 7,100 - 001-080-30977 Prior Year Revenues 75,781 - - - Total Other Revenues:640,706$ 519,600$ 648,100$ 560,700$ Transfers: 001-000-31500 Transfers In From Other Funds 421,658$ 630,000$ 630,000$ -$ 001-000-31502 Transfers In - Operations - - - 622,000 Total Transfers 421,658$ 630,000$ 630,000$ 622,000$ Total General Fund Revenues 29,106,232$ 29,880,000$ 29,650,600$ 29,916,800$ 21 REVENUE SUMMARY BY FUND FY 2016-2017 2015-2016 2016-2017 Revenue 2014-2015 Amended 2015-2016 Projected Source Actual Budget Estimated Budget Account Number SPECIAL REVENUE FUNDS Street Lighting Assessment District - 002: 002-000-30001 Property Taxes Secured 141,266$ 143,000$ 143,000$ 141,700$ 002-000-30004 Secured/Unsecured Prior Year 427 1,000 500 500 002-000-30005 Property Tax Other 464 200 200 200 002-000-31500 Transfer In 40,038 50,300 50,800 - 002-000-31502 Transfer In - Operations - - - 52,100 Total Street Lighting 182,195$ 194,500$ 194,500$ 194,500$ Special Project - 004: 004-211-39500 Salon Meritage 24,268$ -$ -$ -$ 004-211-39501 Centennial 197,870 - - - 004-211-39502 State of the City 500 3,000 8,050 5,000 004-223-39501 BSCC Grant - PD - - 4,500 - 004-228-39500 5k/10k - Marine Safety 5,765 - - - 004-230-39500 Cottage Donations - - 7,750 - 004-231-39500 Plan Archival - Building 7,993 10,000 10,000 10,000 004-231-39501 General Plan - Building 49,249 40,000 48,000 45,000 004-231-39502 GIS - Building 35,515 30,000 35,000 35,000 004-231-39504 Technical Training - - 2,500 2,500 004-231-39505 Automation - - 3,000 3,000 004-244-39500 Benches - Pub. Works Yard 7,926 - 3,300 - 004-249-39500 Tree Replacement - Pub. Works Yard - - 200 - 004-270-39500 Scholarship - Recreation 1,800 - - - Total Special Project 330,886$ 83,000$ 122,300$ 100,500$ Supplemental Law Enforcement Services - 009: 009-000-30420 Interest On Investments 268$ 300$ 500$ 300$ 009-000-30977 Prior Year Revenues 23,412 - - - 009-000-39075 Grant Reimbursement 92,499 100,000 110,000 100,000 Total Supplemental Law Enforcement 116,179$ 100,300$ 110,500$ 100,300$ Detention Facility - 010: 010-000-30400 Commissary 10,847$ 10,000$ 10,000$ 10,000$ 010-000-30960 Other Revenue 106 - 100 - Total Detention Facility 10,953$ 10,000$ 10,100$ 10,000$ Asset Forfeiture Fund (State) - 011: 011-000-30420 Interest on Investments 27$ -$ -$ -$ 011-000-30990 Asset Forfeiture - - 1,600 - Total Asset Forfeiture 27$ -$ 1,600$ -$ Air Quality Improvement Program - 012: 012-000-30420 Interest on Investments 21$ -$ -$ -$ 012-000-35000 AB2766 Revenues 30,510 30,000 30,000 30,000 Total Air Quality Improvement 30,531$ 30,000$ 30,000$ 30,000$ Asset Forfeiture Fund (Fed) - 013: 013-000-30990 Asset Forfeiture -$ 300,000$ 75,000$ 150,000$ Total Asset Forfeiture -$ 300,000$ 75,000$ 150,000$ Park Improvement - 016: 016-000-30420 Interest on Investments 267$ 200$ 600$ 300$ 016-000-30865 Quimby Act Fees 20,000 - 10,000 - Total Park Improvement 20,267$ 200$ 10,600$ 300$ 22 REVENUE SUMMARY BY FUND FY 2016-2017 2015-2016 2016-2017 Revenue 2014-2015 Amended 2015-2016 Projected Source Actual Budget Estimated Budget Account Number Pension Obligation D/S - 027: 027-000-31500 Transfer In 1,141,248$ 1,177,900$ 1,181,400$ -$ 027-000-31502 Transfer In - Operations - - - 1,221,700 Total Pension Obligation 1,141,248$ 1,177,900$ 1,181,400$ 1,221,700$ Fire Station D/S - 028: 028-000-31500 Transfer In 565,982$ 579,700$ 550,500$ -$ 028-000-31502 Transfer In - Operations - - - 535,000 Total Fire Station 565,982$ 579,700$ 550,500$ 535,000$ Tidelands Beach - 034: 034-000-30425 Off-Street Parking 604,064$ 709,500$ 715,000$ 709,500$ 034-000-30630 Swimming Lessons 90 15,000 - - 034-000-30700 Reimb Miscellaneous Services 9,074 11,000 11,000 10,000 034-000-30835 Film Location Fees - - 300 - 034-000-30959 Adopt A Highway 6,250 - 3,100 - 034-000-30962 Donated Revenue - 4,600 - - 034-000-30980 Other Agency Revenue 97,339 100,000 100,000 100,000 034-000-31500 Transfer In - CIP 1,412,040 1,905,000 798,400 2,680,000 034-000-31502 Transfer In - Operations - - - 1,683,800 034-000-31600 Landing Fees 163,203 160,000 160,000 160,000 034-000-31700 Junior Lifeguard Fees 199,278 225,000 225,000 182,700 034-072-30610 Leisure Program Fees 65,581 - 75,000 65,000 034-863-30455 Rental of Property 39,490 - 40,000 40,000 Total Tidelands Beach 2,596,409$ 3,130,100$ 2,127,800$ 5,631,000$ Gas Tax - 040: 040-000-30420 Interest on Investments 6,998$ 3,500$ 7,800$ 6,000$ 040-000-32499 Gas Tax 2103 275,214 129,000 129,000 189,100 040-000-32500 Gas Tax 2105 154,181 148,600 148,600 154,200 040-000-32525 Gas Tax 2106 103,201 81,400 81,400 80,100 040-000-32530 Gas Tax 2107 198,546 204,200 204,200 214,100 040-000-32535 Gas Tax 2107.5 12,000 6,000 6,000 6,000 Total Gas Tax 750,140$ 572,700$ 577,000$ 649,500$ Measure M2 - 042: 042-000-30420 Interest on Investments 7,774$ 3,800$ 8,000$ 6,000$ 042-000-33500 Local Fairshare 394,297 450,000 450,000 450,000 Total Measure M2 402,071$ 453,800$ 458,000$ 456,000$ Parking-In-Lieu - 048 048-000-30865 Parking-In-Lieu 11,500$ -$ 30,000$ -$ Total Parking In-Lieu 11,500$ -$ 30,000$ -$ Traffic Impact AB1600 049-000-30420 Interest on Investments 5,116$ 3,800$ 6,500$ 6,000$ 049-000-30976 Traffic Impact Fees AB1600 2,904 - 2,900 213,500 Total Measure M2 8,020$ 3,800$ 9,400$ 219,500$ Seal Beach Cable - 50: 050-000-30131 PEG Fees Publ Access, Edu, Gov 115,836$ 90,000$ 90,000$ 90,000$ 050-000-30420 Interest on Investments 1,344 2,000 2,000 2,000$ Total Seal Beach Cable 117,180$ 92,000$ 92,000$ 92,000$ 23 REVENUE SUMMARY BY FUND FY 2016-2017 2015-2016 2016-2017 Revenue 2014-2015 Amended 2015-2016 Projected Source Actual Budget Estimated Budget Account Number Community Development Block Grant (CDBG) - 072: 072-000-30988 Other Agency Revenue 180,000$ 180,000$ 182,409$ 180,000$ Total CDBG 180,000$ 180,000$ 182,409$ 180,000$ Police Grants - 075: 075-442-30975 Grant Reimb - BPV 801$ 5,000$ 6,500$ 5,000$ 075-460-30975 Grant Reimb - DUI Checkpoint 32,700 - - - 075-466-30975 BSCC Grant 4,282 13,000 13,000 5,000 075-467-30975 DUI -38 13,352 - - - 075-470-30975 OTS Step Grant 34,163 80,000 80,000 - 075-471-30975 OTS 15/16 - 80,000 80,000 - 075-472-30975 Grant Reimb - DUI - 140,000 140,000 - Total Police Grants 85,298$ 318,000$ 319,500$ 10,000$ Prop 1B - 077: 077-000-30980 Other Agency Revenue 318,000$ -$ -$ -$ Total Prop 1B 318,000$ -$ -$ -$ City Wide Grants - 080: 080-361-30975 Grant Reimb - OCTA 6,404$ 586,700$ 586,700$ 231,000$ 080-363-30975 Grant Reimb - ECP Tier 1 - OCTA - 50,000 - 30,000 080-364-30975 Grant Reimb - BCI - OCTA 472,229 1,000,000 500,000 2,600,000 Total City Wide Grants 478,633$ 1,636,700$ 1,086,700$ 2,861,000$ Ad 94-1 Redemption Fund - 101: 101-000-30001 Property Taxes Secured 16,442$ 150,000$ -$ -$ 101-000-30004 Secured/Unsecure Prior Year - 1,300 100 - 101-000-30005 Property Tax Other 167 300 100 - Total Ad 94-1 Redemption Fund 16,609$ 151,600$ 200$ -$ CFD No. 2002-02 SB Blvd/Lampson Landscape - 201: 201-000-30001 Property Taxes Secured 161,583$ 140,200$ 177,000$ 140,200$ 201-000-30420 Interest on Investments 3,189 2,500 2,500 2,500$ Total CFD SB Blvd/Lampson Landscape 164,772$ 142,700$ 179,500$ 142,700$ CFD No 2002-01 Heron Pointe - 202: 202-000-30001 Property Taxes Secured 275,662$ 200,000$ 135,200$ -$ 202-000-30004 Secured/Unsecured Prior Year 11,184 1,200 - - 202-000-30005 Property Tax Other 1,029 2,200 - - 202-000-30420 Interest on Investments 622 600 - - Total CFD Heron Pointe 288,497$ 204,000$ 135,200$ -$ CFD Pacific Gateway Bonds - 203: 203-000-30001 Secured Property Tax 563,453$ 500,000$ 332,700$ -$ 203-000-30420 Interest on Investments 336 200 200 - Total Pacific Gateway Bonds 563,789$ 500,200$ 332,900$ -$ CFD Heron Pointe Admin Expense - 204: 204-000-30300 Administrative Expense Reimb 25,000$ 25,000$ 25,000$ -$ 204-000-30420 Interest On Investments 471 300 400 - Total Heron Pointe Admin Expense 25,471$ 25,300$ 25,400$ -$ 24 REVENUE SUMMARY BY FUND FY 2016-2017 2015-2016 2016-2017 Revenue 2014-2015 Amended 2015-2016 Projected Source Actual Budget Estimated Budget Account Number CFD No. 2005-01 Pacific Gateway - 205: 205-470-30001 Secured Property Tax 48,242$ 50,000$ 39,000$ -$ 205-470-30420 Interest On Investments 1,746 1,200 1,300 - 205-480-30300 Administrative Expense Reimb 25,000 25,000 25,000 - Total Pacific Gateway 74,988$ 76,200$ 65,300$ -$ CFD Heron Pointe Refunding 2015 - 206: 206-000-30001 Property Taxes Secured -$ -$ 102,000$ 244,900$ 206-000-30004 Secured/Unsecured Prior Year - - 1,200 - 206-000-30005 Property Tax Other - - 2,200 - 206-000-30302 Cost of Issuance Reimb - - 600 - Total CFD Heron Pointe -$ -$ 106,000$ 244,900$ CFD Pacific Gateway Refunding 2016 - 207: 207-000-30001 Secured Property Tax -$ -$ 230,800$ 478,600$ Total Pacific Gateway Bonds -$ -$ 230,800$ 478,600$ CFD Heron Pointe 2015 Admin Expense - 208: 208-000-30300 Administrative Expense Reimb -$ -$ -$ 25,000$ Total Heron Pointe Admin Expense -$ -$ -$ 25,000$ CFD Pacific Gateway 2016 Lnd/Admin- 209: 209-480-30300 Administrative Expense Reimb -$ -$ 213,384$ 25,000$ Total Pacific Gateway -$ -$ 213,384$ 25,000$ PROPRIETARY FUNDS Water Operations - 017: 017-000-30420 Interest on Investments 39,686$ 31,000$ 45,000$ 31,000$ 017-000-30960 Miscellaneous Revenue 799 1,000 1,200 1,000 017-000-30964 Unclaimed refund checks 343 - - - 017-000-30977 Prior Year Revenues - - 15,000 - 017-000-34000 Water Revenue 1,961,610 2,077,400 2,077,400 2,000,000 017-000-35000 Residential Water 1,046,952 1,138,500 1,138,500 1,100,000 017-000-35020 Commercial Water 54,275 64,700 64,700 64,700 017-000-35500 Water Turn On Fee 7,306 6,000 6,000 6,000 017-000-35510 Late Charge 38,364 36,500 36,500 36,500 017-000-35520 Door Tag Fee 1,470 1,000 1,700 1,000 017-000-35530 Water Meters - - 600 - 017-000-35590 Fire Service 64,096 62,500 62,500 62,500 017-000-35591 Fire Water Flow Test 2,000 1,000 1,000 1,000 Total Water Operations 3,216,901$ 3,419,600$ 3,450,100$ 3,303,700$ Water Capital - 019: 019-000-30420 Interest on Investments 28,039$ 18,500$ 45,000$ 25,000$ 019-000-35042 Water Connection Fee 6,004 5,000 15,000 5,000 019-000-37000 Water Capital Charge 1,373,924 1,378,100 1,378,100 1,380,000 019-000-37000 Reimbursement 142,086 - - - Total Water Capital 1,550,053$ 1,401,600$ 1,438,100$ 1,410,000$ Vehicle Replacement - 021: 021-000-30940 Sales of Surplus Property 14,052$ -$ -$ -$ 021-000-31500 Transfer In 310,000 310,000 310,000 - 021-000-31502 Transfer In - Operations - - - 310,000 Total Vehicle Replacement 324,052$ 310,000$ 310,000$ 310,000$ Sewer Operations - 043: 25 REVENUE SUMMARY BY FUND FY 2016-2017 2015-2016 2016-2017 Revenue 2014-2015 Amended 2015-2016 Projected Source Actual Budget Estimated Budget Account Number 043-000-30420 Interest on Investments 11,925$ 10,300$ 15,000$ 10,300$ 043-000-30725 F.O.G. Discharge Permit Fee 28,580 25,000 25,000 25,000 043-000-30946 Sale of Printed Material-CIP Only 275 - - - 043-000-30960 Misc. Revenues 114 - - - 043-000-30977 Prior Year Revenues 2,442 - - - 043-000-36000 Sewer Fees 721,728 700,000 700,000 700,000 Total Sewer Operations 765,064$ 735,300$ 740,000$ 735,300$ Sewer Capital - 044: 044-000-30420 Interest on Investments 29,931$ 17,800$ 35,000$ 23,000$ 044-000-35042 Sewer Connection Fee 5,819 5,000 35,000 5,000 044-000-37150 Sewer Capital Charge 2,008,955 1,700,000 1,700,000 1,700,000 Total Sewer Capital 2,044,705$ 1,722,800$ 1,770,000$ 1,728,000$ Retirement Fund Debt Service - 302: 302-000-31500 Transfers In 719,204$ 775,400$ 775,400$ -$ 302-000-31502 Transfers In - Operations - - - 767,300 Total Retirement Fund Debt Service 719,204$ 775,400$ 775,400$ 767,300$ Retirement Obligation Fund 304-000-30018 SA Tax Increment 1,084,135$ 1,314,000$ 1,314,000$ 1,240,900$ 304-000-30420 Interest On Investments 423 - - - 304-000-30423 Unrealized Gain/Loss on Invest.(273) - - - Total Retirement Obligation Fund 1,084,285$ 1,314,000$ 1,314,000$ 1,240,900$ Capital Project - 045: 045-000-31500 Transfer In -$ 10,574,897$ 2,289,397$ 11,596,500$ 045-000-31501 Sucessor Agency Project 4,577,487 - - - Total Capital Project 4,577,487$ 10,574,897$ 2,289,397$ 11,596,500$ Total Revenue of All Funds 51,867,628$ 60,096,297$ 50,195,590$ 64,366,000$ 26 Analysis of Major Revenues The total estimated revenues and transfers in from other funds for all City Funds for FY 2016-2017 is $64.4 million, of which $29.9 million is General Fund. General Fund revenues are not restricted and therefore can be used to fund the operating expenditures of the City such as fire services, police services, public works, recreation, and general government administration. The Special Revenue Funds, Capital Project Fund, Enterprise Funds, and Successor Agency Funds revenues are restricted and cannot be used for general operating expenditures. Analysis of Major General Fund Revenues Property Taxes Property Taxes account for 34.8% of FY 2016-2017 General Fund revenues. In 1978, the California voters adopted Proposition 13 that changed the definition of taxable value for all real property in the state. Proposition 13 defines the taxable value of real property as factored base year value or market value on lien date (January 1st), whichever is lower. The base year value of property acquired before March 1, 1975 is the 1975 assessed value and the base year value of property acquired on or after March 1, 1975 is usually the market value when the property was transferred and/or purchased. The factored base year value of properties that have not changed ownership since the prior January 1st is calculated by adding the value of any new construction and the Consumer Price Index (CPI) increase but no more than 2% per year. Included in Property Taxes, other than secured, are unsecured property taxes, supplemental assessments, homeowner’s exemption, property tax in-lieu of vehicle license fees, and property tax related to penalties and interest. Budget Assumptions – As the above information illustrates, property taxes continue to be a stable revenue source for the City. The projection for FY 2016-2017 shows an increase in expected revenue, but at a slower rate than 2015-2016. The reason for the increase is that in FY 2015-2016 additional property taxes were received as a result of the overall improvement in the Orange County real estate market. Property Tax Amount % change 2013/149,148,948 2014/159,698,8336.0% 2015/1610,136,7004.5% 2016/1710,423,9002.8% 8,500,000 9,000,000 9,500,000 10,000,000 10,500,000 2013/14 2014/15 2015/16 2016/17 Property Tax 27 Analysis of Major Revenues Utility Users Tax Utility Users Tax (UUT) accounts for 15.0% of FY 2016-2017 General Fund revenues. The Utility Users Tax rate is charged to customers of electric, natural gas, and telecommunications companies to raise revenue for general governmental purposes of the City. The Utility Users Tax rate, which was lowered by the voters in 2014, is currently 10% of the customer’s applicable monthly charges. Beginning in January 2016 retailers that sell pre-paid wireless plans are required to collect the UUT at the point of sale. The rate for pre-paid wireless is capped at 9%. The utility companies collect the tax and remit them to the City. Budget Assumptions – The chart above illustrates the Utility Users Tax revenues continue to be a relatively stable and predictable revenue source. The City has a senior citizen exemption program for the Utility Users Tax. For the current fiscal year the revenue is expected to increase due to the collection of UUT on pre-paid wireless plans. Sales and Use Tax Sales and Use Tax account for 15.1% of FY 2016-2017 General Fund revenues. The sales tax rate is 8.00% as of January 1, 2013. All goods sold within the City are subject to sales tax except non-prepared food and prescription drugs. The City receives 1% of all sales tax collected. Sales tax revenue for the City is projected to decrease in FY 2016-2017 because of continued sales declines in the petroleum products industry. Budget Assumptions – Estimated revenues for Sales and Use Tax for FY 2015-2016 and projections for FY 2016-2017 were provided by Hinderliter, de Llamas and Associates, a consulting firm that specializes Utility Users Tax Amount % change 2013/144,644,217 2014/154,646,4340.0% 2015/164,450,000-4.2% 2016/174,500,0001.1% 4,000,000 4,200,000 4,400,000 4,600,000 4,800,000 5,000,000 2013/14 2014/15 2015/16 2016/17 Utility Users Tax Sales Tax Amount % change 2013/144,742,859 2014/154,246,079-10.5% 2015/164,476,3005.4% 2016/174,520,1001.0% 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 2013/14 2014/15 2015/16 2016/17 Sales Tax 28 Analysis of Major Revenues in sales and use tax analysis based on sales tax information provided to them by the State of California Board of Equalization. Licenses and Permits Licenses and Permits account for 4.6% of FY 2016-2017 General Fund revenues. With an enforcement program that began in FY 2004-2005, this revenue source has become a significant source of funding to support General Fund activities A slight increase is projected in FY 2016-2017 due to a greater level of oversight and monitoring of Business Licenses issued in the City. Other Revenues Franchise Fees are imposed on various public utilities and account for 4.0% of FY 2016-2017 General Fund revenues. The franchise grants the public utilities the right to use public property for system infrastructure such as lines and pipes. It also grants exclusive rights to provide cable television within the City. Transient Occupancy Tax (TOT) (i.e. Hotel Occupancy Tax) accounts for 5.2% of FY 2016-2017 General Fund revenues. The approved rate for Transient Occupancy Tax is 12%. Charges for Services account for 10.6% of FY 2016-2017 General Fund revenues. Charges for services are used to recover costs of programs for specific end users. Programs provided through Community Services are typically subsidized by the General Fund to encourage participation. ANALYSIS OF SPECIAL REVENUE FUNDS MAJOR REVENUES State Gas Tax The State of California collects 39.5¢ per gallon for vehicle fuel which is allocated to the State, Counties and Cities. The City allocation is distributed based on population. Licenses and Permits Amount % change 2013/141,369,275 2014/151,375,1880.4% 2015/161,380,4000.4% 2016/171,385,1000.3% 500,000 750,000 1,000,000 1,250,000 1,500,000 2013/14 2014/15 2015/16 2016/17 Licenses and Permits 29 Analysis of Major Revenues Tidelands Beach Fund – Transfer In – General Fund Subsidy The Tidelands Beach Fund is required by the State of California and is used to account for all revenues derived from beach and pier operations in the City. Unfortunately the revenues generated at the beach and pier, such as beach parking revenues and property rental do not fully cover the cost of operations. As a result, the Tidelands Beach Fund is subsidized by the General Fund as illustrated in the following graph. Budget Assumptions - The General Fund Subsidy varies significantly from one year to the next, but the increase for 2016-2017 is primarily related to the Pier Utility Upgrade Project. Measure M2 The Measure M “Local Turnback” revenues are part of the ½ cent sales tax increase approved by voters November 6, 1990 which would provide transportation funding through 2011. In November 2006, voters approved the continuation of the ½ cent sales tax through 2041. These funds can only be expended on street and highway improvements. The allocation of the ½ cent sales tax is based on the City’s population and on the City’s “Maintenance of Effort” and/or the minimum amount of General Fund funds expended on street and sidewalk maintenance. Each year the City must file a “Maintenance of Effort” report with the Orange County Transportation Authority (OCTA). The report itemizes the estimated expenses the City will spend with General Fund dollars on streets, storm drains and sidewalk repairs that include supplies, and salaries and benefits, and compares that figure with the County’s benchmark figure of minimum State Gas Tax Amount % change 2013/14801,228 2014/15750,140-6.4% 2015/16577,000-23.1% 2016/17649,50012.6% 0 200,000 400,000 600,000 800,000 2013/14 2014/15 2015/16 2016/17 State Gas Tax Tidelands Beach Fund - General Fund Subsidy Amount % change 2013/141,680,808 2014/152,596,40954.5% 2015/162,127,800-18.0% 2016/175,631,000164.6% 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 2013/14 2014/15 2015/16 2016/17 Tidelands Transfer in 30 Analysis of Major Revenues expenditures for street maintenance. The City’s “Maintenance of Effort” benchmark figure is $551,208. Failure to reach the $551,208 will affect the amount of Measure M2 - Local Fairshare and Gas Tax revenues the City receives. The City anticipates receipt of $450,000 of Measure M2 – Local Fairshare revenues for FY 2016-2017. ANALYSIS OF WATER AND SEWER OPERATIONS MAJOR REVENUE Water Revenue and Sewer Fees The City’s Water Rate Schedule is tiered and based on consumption and meter size. Revenues are projected to be $3,303,700 for FY 2016-2017, for the Operations Fund. Water Capital Fund revenues are projected to be $1,410,000. The Sewer Capital Fees are also tiered. Revenues are projected to be $735,300 for operations in the FY 2016-2017. Sewer Capital Fund revenues are projected to be $1,728,000. Measure M2 Local Fairshare Amount % change 2013/14406,280 2014/15402,071-1.0% 2015/16458,00013.9% 2016/17456,000-0.4% 0 100,000 200,000 300,000 400,000 2013/14 2014/15 2015/16 2016/17 Measure M2 -Local Fairshare 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 City of Seal Beach FY 2016-2017 DEPARTMENT:Marine Safety Account Code:034-828 FUND:034 Tidelands Beach 2015-2016 2016-2017 2014-2015 Amended 2015-2016 Proposed Actual Budget Estimated Budget Personnel Services 1,103,005$ 1,128,600$ 1,133,600$ 1,195,400$ Maintenance and Operations 171,753 163,313 155,400 165,800 Capital Outlay 24,967 30,000 30,000 586,000 TOTAL 1,299,725$ 1,321,913$ 1,319,000$ 1,947,200$ ACCOUNT NUMBER EXPLANATION 40001 Full-time Salaries Employee salaries costs 40003 Over-time Employee salaries costs 40004 Part-time Employee salaries costs 40006 Junior Lifeguard Sal Employee salaries costs 40009 Cell Phone Allowance Employee benefits costs 40010 Deferred Comp - Cafeteria Employee benefits costs 40011 Deferred Compensation Employee benefits costs 40012 PERS Retirement Employee benefits costs 40013 PARS Retirement Employee benefits costs 40014 Medical Insurance Employee benefits costs 40017 Medicare Insurance Employee benefits costs 40018 Life and Disability Employee benefits costs 40027 Vacation Buy/payout Employee benefits costs 40030 Unemployment Employee benefits costs 40100 Office Supplies Office Supplies 40300 Memberships and Dues United States Lifesaving Association, Orange County Lifeguard Chiefs Association, Seal Beach Lifeguard Association and California Boating Safety Officer Association 40400 Training and Meetings California Surf Lifesaving Association meeting, Emergency Medical Technician training, American Red Cross training, Certification fees, CA Dept. of Boating and Waterways class, United States Coast Guard Skipper class 40600 Marine Maint/Fuel Lifeguard Fuel, communications, boat maintenance, PWC maintenance ATV maintenance, and boat upgrade/repair 40700 Equipment/Materials Rescue equipment, fist aid supplies, uniforms, tower and headquarters maint., oxygen maint., paddle board, cleaning supplies, pest control repair of (2) Lifeguard Towers, and 800 Mhz radios 40701 Materials and Supplies-Jr Lifeguard Uniforms, office supplies, can buoys, banquet/Catalina food, paddle boards, field trip suppliles, EZ-ups, and body boards 40800 Special Departmental Class A uniforms, training rooms tables/chairs, Scuba maintenance, back-up generator, binoculars and equipment maintenance 40806 Special Dept-Jr Lifeguard USLA, buses for field trips, Catalina Express, Catalina Dive boat rental, Raging Water entry fee, banquet rentals, storage rental, movie, night rental, and campground 41000 Telephone Telephone 41020 Electricity Electricity 45000 Intergovernmental Rescue boat slip fees 48075 Intergovernmental Boat, Tacoma, and 2 ATVs 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268