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Home My WebLink About6-14-21 Budget Adoption PH Presentation��ay�a■:ice_ � yJ r6 lulia ir Ar IWO mr � � �' �: _ ��jj . I �f �f�� `'�� ff� _ � `� '•fir .�'�_ � � J I ' � � ,u'��I' �n. 1'S i 'j�(a¢rJ�.,,' �'+ 1 y ti� ' 4 • tl _ y/; PROPOSED OPERATING and CAPITAL IMPROVEMENT BUDGET FISCAL YEAR 2021-22 BUDGET DEVELOPMENT PROCESS •]11►,too Iw►yiv.�\►,I xeia;aaw ka • Council evaluates the progress in meeting strategic objectives. Departments ensure operations are such that day-to-day is maintained and Council's strategic objectives are met. OVA a Community elects representatives to City Council City Manager enacts Council policy and directs the plan to achieve the strategic objectives Council sets the policies and establishes strategic objectives • Develop a 5 -year financial forecast for the General Fund -Study feasibility of reducing City's pension liabilities and other LTD • Review revenue generated from Measure BB, history of expenditures and spending plan !,NA -Assess the existing phone system and propose replacement • Develop an IT Master Plan • Prepare and present assessment of City's development review and permitting process • •I • Improve communication with the community -Compile results of community outreach and present scope, project costs and financing options for the Community Pool • Work with stakeholder committee to present design concept for Downtown street/sidewalk enhancements -Engage in community discussion about possible restaurant at the end of the Pier • Consider keeping Parklets on Main Street after COVID-19 • Update the Housing Element • Draft a Local Costal Plan • Assess capital improvement needs at City Facilities • Sand Replenishment Plan -Address Staffing Needs •COVID-19 related programs and activities • Financial software upgrade F1 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 CHALLENGES • General Fund revenue is showing strong 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 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 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 A FY 2021-22 PROPOSED BUDGET GENERAL FUND Amended Adopted $ % Budget Budget Increase/ Increase/ Description FY 2020-21 FY 2021-22 (Decrease) (Decrease) Revenues $ 34,8487028 $ 377464,500 $ 27616,472 8% Operating Expenditures 35,423,451 37,185,300 1,761,849 5% Net Operating Surplus/(Deficit) (575,423) 279,200 Transfer Out - CI P 3,6837757 750,000 (2,933,757) -80% Net Surplus/(Deficit) $ (4,259,180) $ (470,800) Proposed using $470,800 of available fund balance from cost reductions in FY 19/20 to address items that were deferred in prior years. FY 2021-22 PROPOSED BUDGET ALL FUNDS Amended Adopted $ % Budget Budget Increase/ Increase/ Description FY 2020-21 FY 2021-22 (Decrease) (Decrease) Revenues $ 617 229, 867 $ 53, 537, 000 $(7,692,867) -13% Operating Expenditures 57, 017, 931 51, 954, 300 (5,063,631) -9% Net Operating Surplus/(Deficit) 4,211,936 1,582,700 Capital Improvement Program 22, 392, 833 10, 000, 000 (12, 392, 833) -55% Net Surplus/(Deficit) $ (18,180,897) $ (8,417,300) 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) • Eliminate FT Electrician • Add FT Management Analyst to ensure compliance with new regulations • 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 Department - ,ost Increases $15,000 • Add Crossing Guard at McGaugh Elementary ADDITIONAL ITEMS TO NOTE • Cost Allocation Plan and Fee Study for Community Development and Public Works expected to be completed in July/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 PROPOSED CAPITAL IMPROV 1V PROGRAM BUDGET / 23Bp a5fp i 1850 e20 � P• / 7 40 9 O '50 7Bp 950 83p ap o' e 0 B90 m 'Sp 15sp o` Q ^� o fSS a z7n ry a 0*6 March 2021 Strategic Planning WorkshlRp General Fund CIP Projects / - • CM Recommendation: Assessment to Tennis Center : be conducted to evaluate Clubhouse Restroom Renovation and Locker Room solutions • General Fund Cost = TBD Main Street Corridor Improvements • CM Recommendation: Continue to work with Steering Comm. to determine scope • General Fund Cost = $1-$1.5 million March 2021 Strategic Planning Workshop General Fund CIP Projects • CM Recommendation: Conduct Pier Restaurant ; :_. community outreach Feasibility General Fund Cost = TBD; $1.4M earmarked from insurance recoveries Pool Project Lifeguard Headquarters L: • CM Recommendation — Re-evaluate mos viable option that the City is able to afford from a capital and operating cost perspective • General Fund/Debt Financing Cost = TBD, • CM Recommendation - Evaluate restoration possibilities before we recommend rebuild options • General Fund/Debt Financing Cost = TBD PROPOSED CIP PROJECTS -General/Tideland Funds - New Projects* Project # Project Title PB2201 Pier Concrete Abutment Restoration PB2202 Pier Restroom Restoration Carryover funds $500,000 $250,000 Many annual maintenance programs were moved to the operating budget (Main Street Pavers, Tree Planting, Tennis Court Rehab, Playground Replacement) PROPOSED CIP PROJECTS -Restricted Funds= e Street Projects: Almond Avenue Pavement Rehabilitation v Slurry Seal, Local Paving and Striping ADA Improvements (PW right-of-way repairs) v Citywide Traffic Signal Improvements Additional funding for Lampson Bike Trail Gap Closure Project • Water and Sewer Projects*: v Additional funding for Sewer Pump Station 35 Additional funding for Bolsa Chica Water SupplyWell Facility Rehabilitation v Additional funding for SCDA Improvements Additional funding for Lampson Wellhead Treatment Facility Annual maintenance programs were moved to the operating budget such as the citywide meter replacement, sewer manhole rehabilitation, and water valve replacement programs FY 2021-22 OVERVIEW 0 Proposes using $47o,800 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 Focuses on City Council's highest priority projects and bringing back recommendations for scope and funding 19 0 TI F qp— b_ � , L -.A W�aa U