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Home My WebLink About5-13-2021 Budget Workshop - Operating��a.��a■:ice_ - 9* i I � yJ r6 77 r - Vwto :.M STOP tf � � J Ie Ai PROPOSED OPERATING BUDGET WORKSHOP FISCAL YEAR 2021-22 FY 2020-21 BUDGET OVERVIEW • In FY19/2o, all departments pulled back in hopes of preventing overspending as a result of the drastic decreases in revenues. • In FY 20/21, the budget was presented with without the use of reserves because at that time, we weren't sure how impacted we would be from the economic slowdown • To accomplish this, departments pulled back even further on proposed expenditures and deferred many items that were priorities before COVI D-19 • Made reductions that did not affect personnel such as furloughs, pay cuts, layoffs and hiring freezes • The goal was to maintain the same excellent level of service to the community FY 2021-22 BUDGET OVERVIEW • Budget approach was to move towards a post-COVID-19 environment and focus on improvement and taking on many of the projects that were deferred in the two prior fiscal years • Includes increased funding for building and park maintenance to address deferred items due to COVID-19 • Includes funding the Information Technology Replacement Reserve for the first time • Includes payment of City's utility accounts totaling $195,800 • Incorporates $750,000 in CIP recommendations using FY 2021-22 revenues FY 2021-22 BUDGET CHALLENGES • General Fund revenue is seeing a 8% recovery but some revenues are still below pre -pandemic levels with TOT being the slowest to recover • With facilities reopening, deferred maintenance will need to be addressed; this was one area where we achieved savings during pandemic • CIP projects that were already planned may cost more due to the rising cost of construction • Incorporating CIP costs within the current revenue estimates FY 2021-22 BUDGET CHALLENGES • Some cost increases are unavoidable • 2% increase in base salaries for already negotiated contracts • 14% increase in PERS costs • 17% increase in insurance premiums (gen liab, workers' comp and property) • 4.6% increase in OCFA contract costs • Increase in contract costs for contracts that were already negotiated in prior years AL Wf4 ��• •i• .�`. J.....;•...•.... ;••••_ , • MO � 1 1 11 i 1 t 1 ! • a i 4 1 11 1 1 1 1 1 ■ 1 1 1 1 ll 1 1 1 1 , r • 1 1 , l t 1 1 1 1 1 ! ♦ 1 1 I i v 1 1 1 1 1 1 1 1 1 1 11 1 I 1 1 IL I f I + 1 I I - ' - - I I 1 1 1 1 t 1 1 � 1 t l 1 1 E It 1 1 1 I '• 1 t � _ Ir ` 1 i 0o 01 1111 1 • • • • i S. 1+ 11, `IT 1 -1-- Fy l� CP 91 0 PROPOSED FY 2021-22 GENERAL FUND REVENUES 0 Amended Estimated Proposed $ % Revenue Actual Budget Actual Budget Increase/ Increase/ Source FY 2019-20 FY 2020-21 FY 2020-21 FY 2021-22 (Decrease) (Decrease GENERALFUND General Fund - 001 Taxes Property Tax $ 12, 358, 062 $ 12, 453, 700 $ 13, 012, 300 $ 13, 336, 500 $ 882,800 7% Sales/Use Tax 3,898,735 3,670,000 4,000,000 4,271,500 601,500 16% Transactions/Use Tax - Meas. BB 4,923,324 4,798,000 5,288,000 5,623,000 825,000 17% Public Safety Sales Tax 286,275 260,000 295,900 291,900 31,900 12% Utility Users Tax 3,941,877 4,120, 000 4,130, 000 4,151, 000 31,000 1% Transient Occupancy Tax 1,298,707 1,005,000 775,000 998,000 (7,000) -1% Franchise Taxes 1,034,280 1,059,000 1,100,800 1,086,000 27,000 3% Business License Tax 569,397 520,000 510,000 520,000 - 0% Excise Tax 1,575 200 1,000 1,000 800 400% Barrel Tax 153,882 193,800 135,000 160,000 (33,800) -17% Total Taxes 28, 466,114 28, 079, 700 29, 248, 000 30, 438, 900 2,359,200 8% Total Licenses and Permits 979,453 988,700 909,200 889,300 (99,400) -10% Total Intergovernmental 633,662 367,300 202,300 150,000 (217,300) -59% Total Charges for Services 2,669,448 2,988,200 2,440,500 2,623,300 (364,900) -12% Total Fines and Forfeitures 1,239,154 1,220,500 1,445,500 1,388,500 168,000 14% Total Use of Money and Proper 1,719,497 593,400 648,500 650,000 56,600 10% Total Other Revenues: 3,224,214 499,700 538,900 797,400 297,700 60% Total Transfers 642,245 110,528 108,000 106,600 (3,928) -4% Total General Fund - 001 $ 39,573,787 $ 34,848,028 $ 35,540,900 $ 37,044,000 $ 2,195,972 6% FY 2021-22 GENERAL FUND APPROPRIATIONS - BY CATEGORY Amended Estimated Proposed $ Actual Budget Actual Budget Increase/ Description FY 2019-20 FY 2020-21 FY 2020-21 FY 2021-22 (Decrease) Personnel Services Maintenance and Operations Capital Outlay Total Operating Expenditures Transfer Out - Cl P Total Capital Expenditures Total Expenditures $ 15,150,153 $ 16, 688, 200 $ 15, 851, 900 $ 17, 770, 500 $ 1,082,300 17, 839, 804 18, 727, 751 18, 321, 900 19, 029, 900 302,149 12,632 7,500 7,500 - (7,500 Increase/ Decrease 6% 2% -100% 33,002,589 35,423,451 34,181,300 36,800,400 1,376,949 4% 1,210,761 3,683,757 1,433, 200 750,000 (2,933,757) -80% 1,210,761 3,683,757 1,433,200 750,000 (2,933,757) -80% $ 34, 213, 350 $ 39,107, 208 $ 35, 614, 500 $ 37, 550, 400 $0,556,808) -76% FY 2021-22 GENERAL FUND APPROPRIATIONS - BY DEPARTMEN Department/Category City Council City Manager City Clerk City Attorney Fi nance Non -Departmental Police Fire Services Community Development Public Works Community Services Marine Safety Actual FY 2019-20 Amended Budget FY 2020-21 Estimated Actual FY 2021-22 Proposed Budget FY 2021-22 $ 102,672 $ 199,867 $ 190,600 $ 132,300 4,330,107 4,884,859 4,850,300 5,269,900 280,797 316,900 297,600 314,000 380,962 436,000 362,000 436,000 771,221 840,700 829,000 943,400 4,409,459 6,512,258 4,211,200 3,470,600 12, 462, 250 12, 986, 900 12, 719, 200 13, 470, 200 6,093,156 6,372,800 6,372,800 6,683,500 1,022,784 1,435,700 1,080,400 1,165,100 3,406,562 3,935,124 3,814,500 4,320,100 775,021 949,600 666,100 1,108,100 178,359 236,500 220,800 237,200 Increase/ (Decrease) $ (67,567) 385,041 (2,900) 102,700 (3,041,658) 483,300 310,700 (270,600) 384,976 158,500 700 Total Appropriations $ 34, 213, 350 $ 39,107, 208 $ 35, 614, 500 $ 37, 550,400 $(1,556,808 Non -Departmental includes transfers out for CIP projects for the Capital Improvement Projects Fund (045) Tidelands CIP (034) Increase/ Decrease -34% 8% -1% 0% 12% -47% 4% 5% -19% 10% 17% 0% -4% FY 2021-22 GENERAL FUND SUMMARY Description Revenues Operating Expenditures Net Operating Surplus/(Deficit) Actual Budget Actual Budget FY 2019-20 FY 2020-21 FY 2020-21 FY 2021-22 $ 39, 573, 787 $ 34, 848, 028 $ 35, 540, 900 $ 37, 044, 000 33, 002, 589 35, 423, 451 34,181, 300 36, 800, 400 Transfer Out - CIP Net Surplus/(Deficit) $ 6,571,198 (575,423) 1,359,600 243,600 - 1,210,761 3,683,757 360,437 $ (4,259,180) $ 1,433,200 750,000 73, 600) $ (506,400 Proposed using $506,400 of available fund balance from cost reductions in FY 19/20 to address items that were deferred in prior years. FY 2021-22 MEASURE BB USES Revenues: Appropriations: Personnel (5 Officers and 1 Crossing Guard) Management Analyst (PD - Reclass) Fire Services PD Information Technology (CIP BG2005) Lifeguard Headquarters and Tower (CIP) Police Department Vehicles (Police Department) Marine Safety Department IT Services Citywide (CIP BG2002) Staffing: (CD Dir., Exec. Asst., Mgmt Analyst, Mech., and Maint. Srvc Sup.) Fire Station #44 Generator PD Headquarter Building/Site Upgrade Maintaining Essential Services Street Sweeping Contract Landscaping Contract City Facility Maintenance Tree Trimming Pressure Washing Park Maintenance CDBG Consultant Senior Transportation Program IT Projects Total Appropriations Estimated Surplus/(Deficit) Amended Amended Proposed Budget Budget Budget FY 2019-20 FY 2020-21 FY 2021-22 $4,603,000 $4,798,000 $ 5,623,000 (874,000) (933,500) (1,190,800) (56,600) (61,900) (150,000) (302,800) (596,900) (907,600) (820,000) (80,000) - (160,000) (60,000) - (727,000) (909,300) (926,900) (209,800) (127,766) - (168, 900) (108, 800) (120, 900) (208, 700) - - (546,100) (576,800) (675,410) - (30,000) - - (100,000) - - (180,000) (180,000) - (270,000) (295,000) - (299,112) (430,000) (100, 000) (185, 000) (205, 000) (60,000) (120,000) (120,000) - (190,000) (275,800) - (36,000) (36,000) - (168,800) (200,000) - (283,080) (50,000) $(4,233,900) $(5,316,958) $(5,763,410) $ 369,100 $ (518,958) $ (140,410) FY 2021-22 FUND BALANCE GENERAL FUND BEGENNING FUND BALANCE, July 1 Net Revenues (Expenditures) ENDING FUND BALANCE, June 30 CLASSIFICATIONS OF FUND BALANCE Assigned for: Fiscal Policy Economic Contingency College Park East Capital Projects Pier Restaurant Swimming Pool Capital Project Ongoing Capital Projects Street Improvement Projects Other Total Assigned Unassigned Fund Balance TOTAL FUND BALAN C E Unassigned FB as a % of Total Operating Exp Fiscal Policy Reserve as a % of Total Operating Exp Actual Projected Proposed FY 2019-20 FY 2020-21 FY 2021-22 $ 18, 435, 927 $ 23, 796, 364 $ 23, 723, 000 $ 5,360,437 $ (73,600) $ (506,400) $ 23, 796, 364 $ 23, 722, 764 $ 23, 216, 600 $ 8,235,831 $ 8,545,325 $ 9,200,100 1,750,000 1,750,000 1,750,000 477,000 477,000 477,000 1,395,638 1,395,638 1,395,638 4,548,048 4,548,048 4,548,048 1,939,171 2,500,000 1,500,000 117,167 117,167 117,167 1,528,102 1,309,472 1,413,471 19, 990, 957 20, 642, 650 20, 401, 424 3,805,407 3,080,114 2,815,176 $ 23, 796, 364 $ 23, 722, 764 $ 23, 216, 600 11.5% 9.0% 7.6% 25.0% 25.0% 25.0% FY 2021-22 STAFFING RECOMMENDATIONS • Eliminate FT Building Official and FT Building Inspector • Add FT Senior Building Inspector • Add FT Executive Assistant (currently shared with PW) PublicWorks Department Eliminate FT Electrician • Add FT Management Analyst to ensure compliance with new regulations r- Finance'Department • Add FT Financial Analyst to create a new purchasing and budget monitoring function • Add PT Office Specialist to enhance our customer service and have a resource that can be the first point of contact for the community Police D_pa _ • Add Crossing Guard at McGough Elementary FY 2021-22 STAFFING RECOMMENDATIONS Community Development Recommendation Tota I Classification Cost Elim FT Building Official $ (220,000) Elim FT Building Inspector (147,500) Add FT Senior Building Inspector 193,000 Add FT Executive Assistant 111,500 Net Increase/(Decrease) in Personnel Costs $ (63,000) Add Consulting Costs 120,000 Net Increase/(Decrease) in Total Costs 57,000 Public Works Recommendation Tota I Classification Cost Elim FT Electrician $ (140,000) Add FT Management Analyst 143,000 Net Increase/(Decrease) in Personnel Costs $ 3,000 FY 2021-22 STAFFING RECOMMENDATIONS Finance Recommendation Classification FT Financial Analyst $ PT Office Specialist _ Net Increase/(Decrease) in Personnel Costs $ Police Recommendation Tota I Cost 143,500 18,800 162,300 Tota I Classification Cost Add PT Crossing Guard $ 15,000 Net Increase/(Decrease) in Personnel Costs $ 15,000 ADDITIONAL ITEMS TO NOTE • Community Engagement Survey results will be discussed in the next Budget Workshop on May25t"when we discuss the 5 -year forecast and the CIP recommendations • Community Town Hall is scheduled for June 1st • Cost Allocation Plan and Fee Study for Community Development and Public Works expected to be completed in JUIy/AugUst 2021 • New Water/Sewer Rates will be implemented July 1, 2021; Water and Sewer Capital Funds will be consolidated with Operating Funds as of June 30, 2021 • City Vehicle Analysis is nearly completed and is expected to be completed in July/August 2021 FY 2021-22 FINAL TAKEAWAYS • Proposes using $5o6,500 in available fund balance from the General Fund from FY 19/20 savings to address items that were deferred in the two prior fiscal years • Includes funding the Information Technology Replacement Reserve for the first time • Includes payment of City's utility accounts totaling $195,800 • Incorporates $750,000 in CIP recommendations using FY 2021-22 revenues QUESTIONS &ANSWERS