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Home My WebLink AboutFY 2012-2013 Proposed Budget Presentation Overview - Study S City of Huntington Beach Proposed Budget FISCAL YEAR 2012/2013 July 16, 2012 ' a i FY 2012/13 Proposed Budget i�i L Presentation Overview - 7/16/2012 o Strategic Plan Goals and Objectives o FY 2012/13 Proposed Budget Overview ➢Revenue and Expenditure Projections SUPPLEMENTAL ➢CIP and Infrastructure Commitments ➢Proposed Staffing and Operating Reductions ➢Financial Reserves o FY 2012l13 Budget Calendar z COMMUNICATION Meeting D. Agenda Item No. 5nA-o v • A Roadmap to Success — The Shategic Plan '= o Improve Long-Term Financial Sustainability ` o Enhance Economic Development o Maintain Public Safety ' o Improve the City's Infrastructure o Develop, Retain and Attract Quality Staff 3 FY 2012/13 Proposed Budget An Overview 4 A Roadtnap to Success- The Strategic Plan o Huntington Beach has risen to the challenge of these tough economic times o Over$26.5 million in cuts over past four yyeazs—total of 183 FTEs eliminated,and an additional 37 defended,for a total of 220 FTEs o $2.5 million General Fund budget challenge identified with abolishment of Redevelopment on February 1,2012 k o In general,revenues have improved in the past year in several areas including,sales tax,TOT,parking and planning and building fees o Departments have proposed structural reductions in personnel(12 FTEs and 10.75 part-time reductions)and operating expenses to presentthis balanced budget In addition,three positions are defended,for a total workforce uction of 15 FTEs and 10.75 part-time eliminations s FY 2012/13 Proposed Budget 'o The Proposed All Funds budget totals $293.8 million, a 6.0%decrease from the Adopted FY 2011/12 budget o The Proposed General Fund budget totals $186.2 million, a 1.4% increase from the Adopted FY 2011/12 budget N FY 2012/13 General Fund Budget Expenditures$186,174,437* Revenues $182,897,667 Deb Revenue Operating Capital3% Servico- Ag�ies <I°/a �% IV�eu of Money and 8% - I'crznnnel •l.J million Jirnded,(rom Purs Obliga(ion Set-Aside. and$l.7mi!lion/rmn the ClH 7 Enhance Econon�ic Developme ' o Property Tax - o Reflects a slight increase of 0.25%for Secured Property Tax as values had _ stabilized;yet reflects a decline in Supplemental and Unsecured Property Taxes due to recent poor perfomtance o Sales Tax o Budgeted at about a 5%increase over last year's Adopted Budget with an additional$1.0 million due to new businesses in HunLngton Beach such ` Costco,Dick's Sporting Goods and Nordstrom Rack o Transient Occupancy Tax o Budgeted at about a 7%increase over last year's Adopted Budget due to r continued success by the travel and lodging industry o Development Licenses and Permits o Budgeted at I5%over last year's Adopted Budget due to continued commercial and residential development throughout the City 8 General Fund Expenditures o Continues the elimination of 183 FTEs from the Table of Organization made in previous fiscal years o Continues 37 previously defunded positions,for a total workforce reduction in funding of 220 FTEs as a starting point o Proposes 12 additional FTE eliminations from the Table of Organization o Defends an additional 3 positions(two sworn police personnel and a Community Services Recreation Coordinator) o Eliminates an additional 10.75 part-time positions o Reduces Operating expenses by an additional$60Q000 o On a positive note,three Police Officer positions have been retained that were initially recommended for reduction in June 2012 s Highlights of Proposed Reductio o Fire—Conversion of Deputy Fire Marshal to a civilian position o Information Services- Elimination of vacant Telecommunication Specialist position o Planning and Building—Reduction in professional services whit provide for unanticipated Environmental Impact Reports 7/16/2012 o Police—Reduction in two(2) Motor Unit positions,as well as, elimination of three(3)custodian positions o Public Works—Reduction in citywide maintenance which will affect parks and right-of--way landscaping;also proposed is the elimination of an Office Assistant and Landscape Maintenance Leadworker io i Highlights of Proposed Reductions �< 7/16/2012 . � o City Clerk—Elimination of contracted minutes preparation for City Council, Housing Authority, Successor Agency and Public Financing Authority resulting in slower processing times for City Attorney minutes o City Attorney—Reduction in Temporary Salaries j o Library Services—Reduction in book purchases and database subscriptions resulting in fewer services for Library users o Community Services—Elimination of Art Curator position and three custodians at various City facilities o Finance—Elimination of Utility User Tax auditing firm and assuming the function in house n Proposed Staffing Reductions Department FTF. Vacant Fillet UetwldeJ Par[-Tim it to cy It 1 Community Services to Ity Se 1 1 1 Economic Development co om vc 1 1 It Human Resources 1 1 Information Services I1 1 1 Planning&Building (1.75) 1 1 1 11 Public Works 1 1 1 •Hrfle.ro'3 owom 4Juu✓ed om/vunr/rmJ w l'urml I'nu.i 3 nvrLm�rtdmrJ onAuue rreakr ar lS 12 City Council Memberships j FISCAL YEAR 2010/I1 Memberships/Dues Expenditures Santa Ana RiverF'lood Dues 1,100 OC Council of Governments* 5,000 Association of Califomia Cities 31,700 League of Califomia Cities 33,200 CaI State Fullerton/Demographic Research 4,100 OC Human Relations Commission 7,200 c SCAG 16,900 $99,200 *OCOG dues increased to$9,100 in current year and scheduled to increase to$11,400 � in FY 2UI2/13. - Alternatives to Consider o Applying higher cut to Fire Department: • Increase from $210,548 to$524,289 • Impacts would include: ✓F.IiminationofDeputyPireMarshallforTraining $229,000 ✓Reduction in SWAT Medics Program $ 52,000 ✓Transfer of Oil inspections to Hazmat and Fire Prevention $ 38,I00 ` � o Other Cuts as per"Program Budget" information • Program Budgets by Department will be provided this week for additional information and use 14 Maintain Public Safe Budget Allocations by Department: FY 2012/13 CM Council City Manager City Clerk <I% 1% <I% Community City Attorney// Scmas \ I /� 9°e City Treasurer I Econom' <1°e _Develop Public Works.-�,: I% w I I°a FitMe 3% uc ` ((ggyp i Wait Resources 3°0 y��af . � tbrary Services rf Planning and �17°�'' Building IN'ti mation J 3% Depanmeoml. Services _ ...t4% 3% s45 Improve the Cit), s Infi-astr•uctur o $3.0 million has been proposed in the Equipment Replacement Budget (reflects a "hold" on further increases due to fiscal challenges) o The Proposed Budget meets the 15% charter requiremen for infrastructure and adds $3.8 million to meet this goal o $1.7 million will be added to the CIP for various infrastructure projects (funded by the CIR) o $1.3 million from General Fund for a total of$3.0 millio o Plus a Transfer to the Infrastructure Fund of$640,000 $200,000 in additional infrastructure related equipment 16 Financial Reserves Strategic Use of Re Proposed FY 12/13 Budget increases commitment to: infrastructure - $1.7 million from the CIR €� Proposed FY 12/13 Budget recommends expediting the payout of the remaining PARS payments of$4.6 millio by September 30, 2013 o Maintains the $2.7 million contingency in the Economic Uncertainties Reserve added at FY 10/1 l Year End �a hrrprvve Long'.- r , Reserve Balances Fund Balance Category Audited Audited Estimated Estimated FY 09/10 FY' 10/11 F1' 11/12 FY 12/t3 Economic Uncertainties IM 10 co 7/16/2012 Economic ' 1 Added Contingency* dde on Litigation Reserve 'll 'll 'll 'll Equipment o et Capit• rojects 2,970 1 2,970 1 PARS Obligation. 1 Ili • 1 8,661 *!nclm4rd In Gcnnoreic(b+cenuinlfas Reerrve in nclunl f%k' Z0/0'll fAh7t `F "'P:-ruludee'Lnnd held fnr rrvufe of S5.�rnllllnn bmi.gfirrtd rn l mn Ihe,/r+rn+rr ltvdrvelopmem A�enn. 19 Develop, Retain arulAttrnct Qt.urlit�� Sta o In era of limited resources, improving training an ; education opportunities for existing staff is a priori o FY 12/13 Proposed Budget continues existing tuition " reimbursement programs, consortium training workshops and EAP contract training o The"POWER"team has taken the lead on promoting low/no cost programs,projects and opportunities to ance employee enrichment zo 7/16/2012 aiw • 1 . r r rAugust6,2012 ch-July 16,2012 Internal Budget Development and Finalization 16,2012 Proposed FY 2012/13 Budget to City Council CIP and Infrastructure Study Session/ FY 2012/13 Budget Study Session ust 20,2012 Pavement Condition and Blue Ribbon Committee/ p FY 2012/13 Budget Study Session September 4,2012 Proposed Budget Adoption Date—I° Meeting September 17,2012 Alternative Budget Adoption Date—2"d Meeting _ September 30,2011 Charter Deadline to Adopt the FY 2012/13 Budget October 1,2012 New Fiscal Year Begins November 6,2012 Election Day-Employee Tax Override Ballot Measure BeachCity of Huntington Proposed Budget 17