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HomeMy WebLinkAboutFiscal Year 2015/16 Proposed Budget for City of Huntington B i �►31 M � mm T '%T 13 � 2015 h .7 1 <t FY 201- 5/16 PROPOSED BUDGET ---- -- - - W !", s _Fem y�ct cm ' "Making it Count" 4`f 17v���P5✓/V��11414�� ILL G4fIt'1f`K55 WOg7{.O r2tGC1f1G6' F _ f � }`' Yi -j'tY �1 {�,1, ti I�•4," M1 k ♦Y. 11. ��.pr� °",�M'�1� R k 'Ik a 7 OFFICIALLY d� Q Q BAiUR4]AY,Jl1N��4 19Aht•Nl4hUN r#.iN�rrvc�rtwr bErta:n s�dr,�x.rmi sum 1 1: b FY 2015/16 PROPOSED BUDGET Overview FY 2015/ 16 Proposed Budget Highlights CIP and Infrastructure Budget Summary Status of General Fund Reserves Discussion of Unfunded Liabilities FY 2015/ 16 State Budget Impacts � FY 2015/ 16 Budget Calendar �K� "Making It Count" Every financial decision made today will have lasting impact for generations to come FY 20 T 51 1 6 Proposed Budget maximizes limited resources by funding areas needing it most: • Public Safety • Quality of Life Programs • Financial Sustainability • Infrastructure LJ f it - „ FY 2015/16 Proposed Budget The Proposed All Funds Budget totals $344.4 million, a $2.2 million or 0.6% increase from the FY 2014/15 Adopted Budget The Proposed General Fund Budget totals $216.5 million, a $6.6 million, or 3 . 1 % increase from the FY 2014/ 15 Adopted Budget Nil , fY .r. Yu1Sfy FY 2General Fund Highlights NEW —w-MI General Fund revenues $207.0 $216.5 Set-Asides* $3.4 $0.0 Total Sources of Funds 210.4 $216.5 General Fund Expenses 209.9 $216.5 Surplus/(Deficit) $0.5 $0.0 *Reflects the use of set asides Senior Center c ons'tr ne ion. FY 2015/16 General Fund Overview Balanced General Fund Budget for FY 2015/16 A General Fund revenue increase of 4.6% is projected A 2% labor adjustment is included (full-time only) Fixed cost increases such as PERS, Workers' Compensation, insurance premiums and utilities are included Equipment replacement funding is increased by $500,000 for a total of $5 million Increased funding and staffing for Public Safety and related capital equipment and technology investments ($4.0 million) 0 FY 20General Fund Revenue rtr��+ k-�ne�, anrj - �F_M1}S^!A `;�`+: J �F,t,- Tot-al o 1' 216. N,'I l l l()rl Charges for Services_ Other Revenue $25,248,978 $1,238,931 Non-Operating Transfers Revenue from Other $794,156 Agencies $2,728,148 4_ Property Tax Use of Money& Property $84,071,925 $16,724,527 Fines& Forfeitures $4,442,688 License&'Permits $9,622,507 Utility Users Tax $20,674,384 Transient occupancy Tax 510,300,000 Franchise Sales Tax $7,441,308 $33,196,815 General Fund Revenue Summ ary Total General Fund projected revenue is $216.5 million, reflecting a 4.6% increase from the current year Property Tax is estimated at $84. 1 million, an increase of $4. 1 million Transient Occupancy Tax continues to grow,, reaching an estimated $10.3 million next year, an increase of $ 1 .5 million Sales Tax is projected at $33.2 million, an increase of $4.4 million including a one-time accrual of $2.0 million Planning licenses and permits are down by - 14.7% as revenues related to Pacific City are being paid in FY 2014/15 The annual Gas Tax transfer to the General Fund of-$900,000 Is cl 1 m inated due to State cuts in Highway Users' Tax revenue Water U­UT revenue is proJected to decline by over -20% due to the State's water restriction mandate M FY 2 Fund Highlights FY 2014/15 Adopted Budget (minus one-times)* $206.2 PLUS. CaIPERS First Year of 5-Year Cost increases 3.0 Merits, Skill Pays, Longevity, Increases, 0.5 ➢ Workers' Compensation Increases 0.2 ➢ Citywide Utilities Cost Increase 0.4 Two Police Officer positions 0.5 y Increase in Debt Service and Tax Sharing Agreements 0.5 )�w Equipment Replacement and C:IP Budget Increases 0.7 ,1=Departmental Supplementals 1 .5 2% Labor Cost Adjustment 3.0 FY 2015/1+6 Baseline $216.5 Increase to Baseline from FY 2014/15 * FY 2014/15 Adopted Budget of$209.9 minus $3.4 million in one-times Making It Count >. t ��»�sb, ��'� �—' 7 '•t� S .�f.x< _ - _. ` 9��x�35 Public ire ells, 0 4, F��JNDED �► __ ��` '� � i ^k-R y�: Making it Count Public Saf t Public Safety Represent's 53 "/o of General Fund City, Pity 01v Cily Library Council Clerk hlana;gea At(nrney Services Finance 1).2„o 11,4"/4) 0"/u I.1`"/o 2.1"/: 2.70% Iluman City Resources Information I reasu rcr 2 + Services 3.2%) Community Develalrmcni Police 3.20/4 32.5% is A ��['omnnmity - Services 4.4%, i Public Works 10.4ON, Dire Non-Departmental 20.7i6 /© 15.6%i Public Safety Highlights The FY 2015/16 Proposed Budget contains a creative funding approach that essentially adds five Police Officers to sworn and patrol related duties: i3First, it adds funding for two Police Officer positions; and ci Adds funding for three Community Services Officers, thereby freeing up three more Police Officers to patrol related activities Increases Police dispatch operations by two FTEs (offset by a commensurate reduction in Overtime) Adds $50,1000 for a new Standard of Cover evaluation in Fire Increases funding for the Junior Lifeguard Program Provides for a new lease to purchase Fire Truck Emergency One M Public Safety Fund Two Additional Police Officer Positions + uniform &. equipment 456,530 Fund Three Community Services Officers 304,512 Fund Two Communication Operators (Cost Neutral) - Police Officer and. Parking Control Officer to General Fund 2011578 CSC Animal Control Contract Increases 1009000 Aircraft Upgrades and Increased Helicopter Fuel 5951)933 Server Upgrades including Computer Forensic Lab 655203 Fleet Replacement (26 units) 9551000 CIP — Police Dept Lobby Security Project 2501000 Various transfers, exchanges to personnel costs 26,437 Total 299559193 Public S .fet Lease Financing; for new $775,000 Fire Engine; Year One 165,000 � Increase Junior Lifeguard Program 50,000 Standards of Cover Evaluation 5000 Increase Metro Cities Joint Powers Agreement 83,895 Medical Billing Contract Increase 21 ,132 Equipment and Supplies - SCUBA Dry Suits, Fire Hose, Defibrillators 190,160 Lifeguard Towers 103,000 Refurbish [ail Wells 1051400 Mobile Data Computers (35 units) 1499377 CIP — Fire Station. 8 — Heil Renovation 1585100 Total $190769064 Making It Count Quality Life -� � S D - + caMMnNIYr SEItVICIS GUIDE lbt DMtiri3l Co1v0l l rawUrie id � �� la'H� diucss a�r,if Rarrc�Allurs NrQq�r ms am9 s�iucr,ibt�rra� - Beach r , � �� Mak FBIs 1 h w `I 10 tTHIS ISSURt e �, �^ k! HD t k gt]@SrsusT AINABLE Greece Quality of Life Re-title Planning and Building Department to Community Development Department Establishes a Deputy Director position (with no net increase in the Table of Organization) Provides funding to improve the beachgoing experience by increasing restroom cleaning during off-peak periods and providing new trash enclosures ($66,825) Increases funding for tree trimming — new prevailing wage ($ 111 ,000) Renovates Central Library interior and entry doors, replaces 70 obsolete computers and increases materials budget ($335,000) Sand Replenishment at Huntington Harbor Beaches ($60,000) Making It Count aOEM- Economic Se Financial G . 2012 1 = 'ertt 2ceae risk su r r nrrhu11"ill D stingui hed ;- �Acbicvenlerlt Budget Popular Annual FisilT.wj-,El Rep0'ithl g Financial Reporting iv 1 ,rird Economic and Financial Sustainability The Proposed Budget continues funding for the City's 3-pronged approach to reduce unfunded liabilities: N The "25 to 10" Plan for Retiree Medical a The " 1 6 to 1 a" Plan for Retiree Supplemental CalPERS "One Equals Five" Plan the Ca it r 's The Proposed Budget provides full funding f y annual workers' Compensation Costs Includes $250k towards reducing the $9.2 million Workers' Compensation Unfunded liability Plans above will help maintain AAA Fitch Rating 'M Economic and Financial Sustainability Mir MIAMI r _`. ►. To ensure compliance with Federal, IRS, Affordable Care Act, PERS and State laws (e.g. AB1522),, a Senior Payroll Technician position is added An increase of $210,000 is included for Tax Sharing Agreements due to increased revenues. Sales Tax Agreement with Pinnacle Motel Tax Agreement with Visit SIB If i ' s General Fund Balance (in Thousands) Economic Uncertainties $24,011. $ 24,0 l 1 $25,011 $25,011 Litigation Reserve 900 900 900 900 Budget Stabilization 3,100 - - - PARS Obligation 4,701 - - - Equipment Replacement 6,913 8,295 8,295 8,295 Redevelopment DisSollltion - 1,323 1,323 823 Retiree Medical Unfunded Liability 698 698 - - General Plan Maintenance 323 720 720 720 Capital Improvement Reserve(CIR) 5,970 7,136 7,136 7,136 Senior Center Debt Service Reserve - 2,000 2,000 - Ca1PERS "One Equals Five Plan" - 500 1,500 500 Ca1PERS Rate Increase - - 1,287 1,287 Cityview Replacement - - 695 - Otber Fund Balancell-Encumbrance* 7,819 8,924 12,187 9,643 Total Fund Balance $54,435 $54,507 $61,054 $54,315 *Ocher Hind H alcance includes Pre paid insuratif , lsncumbrunccs, Non-Stvitcicable and 01hEr Restricted Wins. MakingIt Grunt st� s �� � ��1 f T38��_,-��.�3.: ♦ , �--�Y aT�Ls.� '.'+ t �Y M`r`�'p�-. CIP/Infrastructure al r k Beare BICYCLE MASTER PLAN 17 ,After City of Huntington Beach,California ,r Capital Improvement Program ,All Funds Capital Improvement Program FY 2015/16 New Appropriations by Funding Source $27,450,830 Server Furies 10.52% T1F 2.21%_,, Measure M-� w Water Funds _8.57%fl I Prop 42 r -` 0.58% GasTax Grants/Other "� ! `20 2fq [3� e z p D 33.45% ins '\_General Fund 11.84% Capital Improvement Program (All Funds) FY 2015/16 CIP includes $27.5 million in projects (All Funds) Continuing appropriations for the new Senior Center for amounts remaining to be spent Warner Avenue Gravity Sewer ($2.6 million) Police Department Lobby Security Project ($250,000) Pier Piling Inspection, Cleaning & Maintenance ($200,000) Concrete, arterial roadway, sand replenishment, campground expansion, and other projects Clegg Stacey Park playground improvements to replace 25- year old equipment and meet ADA requirements Infrastructure Section 617 of the Charter requires that the City spend 15 percent of General Fund revenue on infrastructure This calculation is based on a 5-year rolling average The FY 2015/16 General Fund Budget exceeds the 15 percent requirement The General Fund contains approximately $3 5. 1 million in spending for infrastructure improvements and maintenance Included in this amount is $3 .2 million in new capital projects for concrete, arterial roadway, sand replenishment, campground expansion, and other projects Roadway projects help to maintain the PCI of 76 or "Good" MakingIt Count �`- M 1 .ter A a i. s - 5-;i'--• f g e �i t ot.� -s.' Yi-fi�tj.u.�.�tf'?:1 _ .-t.��3i� � ,• -; ���^tl:�'�Y• i$ ii � Challen- R-l-es and Om-% portunities :., , �..., -- , ,,,, : �� ;, to .. i�•� _ k b 5 FY 2015/16 State Budget One Times FY 2014/15 The FY 2015/16 State Budget includes $ 170 million in reimbursements to cities for unreimbursed State Mandates A total of $ 1 .6 million is expected by September 30, 2014 FY 2015/16 In addition, aone-time triple flip payment of $4.5 million is expected in FY 2015/16 Staff recommends to not appropriate until funds are received 0 Making it Count Recommendations: Outright purchase of Fire Truck and/or Engine to reduce annual debt service by up to $470k over next five years Outright payment of a portion of 800 MHz project ($9M) Utilizing all or a portion of these ffinds to reduce annual debt service for citywide Streetlight Retrofit Creation of a Section 115 Trust to expedite the paydown of unfunded liabilities thereby reducing annual Plan contributions Unfunded Liabilities Overview as of CAFR for 9/30/2014 CalPERS (Safety) 187,796 67.2% "1=5" Plan 25 years CaIPERS (Misc) 120,431 73.0% Standard PIERS Plan 30 years Subtotal 3089227 69.7% Retiree Medical (Misc) 5,900 100.0% Payoff as of 9/30/14 Now Retiree Medical (Safety)" 81924 TBD "25 to 10" Plan 10 years Retiree Supplemental 219563 62.7% "16 to 10" Plan 10 years Workers' Compensation 99205 46.3% 4`10 in 10" Plan 10 years TOTAL 3539819 Based on 2013 Data* *Total unfunded liability amounts are not constant and are subject to change for mark-et conditions,dernographics and actuarial Changes. "Retiree Medical I"I:HMCA Unfunded liability will be recognized in FY 2014/15 CAFR as per ne,,v requirement ol'ASOP No. 6. Funded FT vs YOY PER Costs "SMUMM f !"213 X Jt PIERS Costs 3,300.00 s Funded FTEs 3,000.00 4S, $32.2M 2,700.00 $28.9M 2,400.00 $27.4M o 0 o , 2,100.00 U $23.4M $23.6M $20.8M {L N F- a " 4A 1,800.00 $19.9M LU $19.2M 1,500.00 1,200.00 900.00 1,143.00 1,141.30 1,000.50 972.00 923.00 937.75 948.25 956-75 500.00 - ---— _ - FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13j14 FY 14/15 FY 15/16 CaIPERS Increases IMAM1151111 CalPERS costs will increase from $25 .0 million in FY 2013/14 to $49.3 million by FY 2021/22 (eight years), a 97% increase Safety rate increases from 38.8% to 55.2% in eight years Misc rate increases from 21 .4% to 34.7% in eight years These estimates ISO NOT include the cast of recently negotiated or yet to be negotiated contracts Decent CalPERS discussions regarding portfolio "Volatility" will increase employer costs beyond amounts identified above If the assumed earnings rate changes from 7.5% to 7.0%, that 50 bps change will cost an additional $3.5 million perms 8-Year CalPERS Employer Rate Increases* All Funds) 771"mg- (111Millions) S60.0 97(Vo $50.0 $2.3 $1.2 $4.0 $400 $3.8 $3.3 $300 $3.9 ON 1 i"C ■Safety $20,0 Year FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 F)" 19/20 FY 20/21 FY 21/22 $25.0 $28.9 $32.2 $33.9 $37.7 $41.7 $45.8 $48.1 $49.3 *Pr(jections do not includefiscal impact ofnew negotiated contracts. F Y 2015/1- 6 Proposed Budget Recap Increases funding for critical Public Safety services Essentially adds five Police Officers to sworn duties through a creative funding approach, plus two Dispatchers for a total of seven newly funded FTEs in the Police Department Provides funding for quality of life enhancements at libraries and beaches Eliminates two of the City's three retirement unfunded liabilities in 10 years* Funds infrastructure improvements to roadways, parks, facilities and other capital assets Enhances compliance with laws and regulations promoting further financial sustainability *Pending market conditions, rug additional changes in actuarial methodologies, etc. -budget Calendar M—T.-I-i I -1Z M LIM -MI July 6, 2015 FY 2015/16 Proposed Budget Delivered to City Council July 13, 2015 FY 2015/16 Strategic Planting Retreat Budget Update July 20, 2015 FY 2015/16 Proposed Budget Discussion August 17, 2015 Long Term Financial Plat September 8, 2015 FY 2015/16 Budget Adoption City Council Public Hearing September 21 , 2015 FY 2015/16 Budget Adoption (Alternate) October 1, 2015 Fiscal Year 2015/16 Begins �H �y 5 J�. s A WW ..utlw - T a T w