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HomeMy WebLinkAboutProposed Budget - 100 Years of Surfing - Fiscal Year 2014/20 t ! 1 -101 1 NUNTINOTON , SURF CIT"Y USA r untin ton Beale nF _ EAR 2014/ 15 PROPOSED • • FY 2014/ 1 5 Propose u ge Years Of Sur•fin FY 2014/15 Proposed Budget Overview General Fund Budget Highlights CIP and Infrastructure Budget Summary Status of General Fund Reserves Discussion of Unfunded Liabilities FY 2014/ 15 Budget Calendar 100 YEARS OF SURFING V z 100 Years of Surf n A Centur of Excellence, 11 51 Years Later 66 Years Later Facts & Figures _IV 1965 1980 2014 Population 815 75,053 172,200 193,616 Land Area (square miles) 3.57 * * 28 Budget—Citywide (in millions) * $6.5 $62.4 $339.9 Budget—General Fund (in millions) * $5.1 $42.1 $208.9 Number of Businesses * * 2,555 5,400 Number of Employed * * 43,747 115,100 Assessed Valuation ( in millions) * $189.8 $1,122.0 $31,198.3 *Data not available 3 Building the Foundation for the Next 100 Years — The Strategic Plan The Six Pillars: Enhance and Maintain Public Safety Enhance Quality of Life Enhance Economic Development Improve the City's Infrastructure Develop, Retain and Attract Quality Staff Improve Long-Term Financial Sustainability 11 0 YEARS OF SURFING i HUNTINGTON BEACH CA `. � 4 FY 2014/15 Proposed Budget 1 0 YEARS OF SURFING HUN TIN GTON BEACH CA Overview FY 2014/ 15 Proposed Budget The Proposed All Funds budget totals $339.9 million, a $26. 1 million or 8.3% increase from the FY 2013/14 Adopted Budget The Proposed General Fund budget totals $208.9 million, a $ 15 .4 million, or 7.9% increase from the FY 2013/14 Adopted Budget � V. -, wpm a.. ry s� 6 I Y 2014/1 5 General Fund Overview ► Balanced General Fund Budget for FY 2014/15 ► A General Fund revenue increase of 7.0% is projected ► Negotiated contract costs are factored in ► City Council authorized contract costs also factored in for units not yet finalized ► Fixed cost increases including PERS, Workers' Compensation, insurance premiums, and other costs ► Certain discrete fund balance reserves are used to fund high priority capital projects such as the Senior Center ► Equipment replacement funding is increased by $500,000 1 0 YEARS OF SURFING i HUNTINGTON BE C A A CH 7 FY 2014/15 General Fund Revenue � iE Total General Fund projected revenue is $207.0 million, reflecting a 7 .0% increase from current year Property Tax is estimated at $80.0 million, an increase of 6.4% ► Transient Occupancy Tax continues to grow, reflecting an increase of 15% ► Planning and Building revenues still robust and are expected to increase by over 20% ► However, Sales Tax is projected at $28. 8 million, a slight increase of only 1 %, due to increased online sales Major industry groups continue to improve our local W. economy LY 014/15 General Fund Hi hli hte Amount Description i General Fund Expense $208.9 General Fund Revenue $207.0 Difference ( 1 .9) Senior Center and LeBard Reserves $2.4 Surplus/(Deficit) $0.5 c 9 ;l 4 FY 2014/1 5 General Fund Highlights ► Labor adjustments totaling $7.5 million are included ► A total of $4.0 million is included for the new Senior Center ► Two newly funded Police Officer positions are added bringing the number of sworn positions to 214 FTEs ► This represents an increase of 7 sworn FTEs since FY 2012/13 ► Two new Senior Permit Technicians in Fire and Planning ► New plans to help pay down unfunded liabilities ► Year one payment for the LeBard School site acquisition ► Restoration of funding for lifeguard services at Dog Beach, summer camp for 5- 12 year olds, Shipley Nature Center, Art Center, library materials and tree trimming, ► New Commercial Revolving Loan Fund of $200,000 ► A surplus of $500,000 is included to reduce unfunded liabilities fthftkkk� 10 7FiF1Y 2014/15 General Fund Expenditures FY 2013/14 Adopted Budget Baseline, Plus $ 193.5 ➢Deletion of One Time Items (0.5) ➢Labor Adjustments (PERS Pickup for Wage, 2% Raises, and Other) 7.5 ➢Senior Center Funding (including $1 M annual debt service) 4.0 ➢Workers' Compensation True-Up (Plus Plan to Reduce Liabilities) 1 .4 ➢Fixed Costs and Tax Sharing Agreements 1 .4 ➢Funding for 6.5 additional FTEs 0.8 ➢LeBard School Site Payment — GF Only Year One 0.3 ➢Equipment Replacement Increases 0.5 FY 2014/15 Proposed Budget $ 208.9 Increase from FY 2013/14 +$15.4 lit Citywide Table of Oranzat All Funds 1,200.00 1,143.00 1,141.30 1,150.00 1,100.00 1,050.00 1,000.50 0.5% 1,000.00 972.00 972.75 977.25 960.00 950.00 900.00 850.00 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 FY 2012/13 FY 2013/14 FY 2014/15 kftftmm 12 FY 2014/1 5 Staffing Highlights OrganizationTable of Total Department Title Police Police Officer 0.00 2.00 Police Property Officer 1.00 1.00 Fire Administrative Secretary (0.5) (0.5) Fire Senior Permit Technician 1.00 1.00 Subtotal 1.50 3.50 Planning& Building Senior Permit Technician 1.00 1.00 Public Works* Supervisor/Utilities/Water 1.00 1.00 Public Works* Field Services Representative 1 .00 1.00 Total 4.50 6.50 wi6 the Water Enterprise Fund. 13 Enhance and Maintain Public Safe --l— Police Department , Fund Two Additional Police Officer Positions (Sworn to 214 FTEs) 440,000 Convert a Police Officer into a Sergeant Position 33,000 Increase Animal Control and Crossing Guard Services Contracts 364,610 Increase computer equipment and software maintenance contracts 110,000 Add one Property Officer position(Non-Sworn) 90,109 Increase equipment and supplies for new Police Officers 41,678 Increase Supplies for Mounted Enforcement Unit 25,000 Replace 20 Police vehicles 783,528 Fund Helicopter Repairs, Gun Range Study, Lobby and ADA Improvements 850,060 Total 297379985 14 nhance and Maintain Public Safety Fire Depart Add one Senior Permit Technician 53,464 Add one Part-Time Nurse 48,221 Transfer one Administrative Secretary from Community Services to Marine Safety 87,916 Medical supplies for 51h ambulance, scuba, physical fitness equipment 40,000 Replace two lifeguard towers and junior lifeguard rollup doors 150,000 Replace Fire Department's emergency and computer equipment 137,202 Replace specialty vehicles and emergency alerting system 51,300 Lease financing for new $1.4 million Fire Truck 300,000 Fire Station 8 —Heil Renovation 190,900 Refurbish Oil Wells, Metro Cities JPA and Oil Royalties 128,517 Total 191879520 b"WIM 15 1tn.h,a,n. c11e1..and Maintain Public Safety City Clerk City Manager City Attorney 0.4% 1.0% 1.1% Finance City Council Library Services 2 6 0.1% 2.2/° % Human Resources 2.5% City Treasurer Information Services 0.1% 3.2% Planning and Building Police �- 3.3% 32.2% Community Services 4.4% Public Works n 10.5% Fire 21 0°/ Non-Departmental 15.4% 1G Enhance Quality of Life Increase beach restroom cleaning during the summer peak periods ($39,200) New summer day camp program for children between 5 to 12 years old ($35,600) ► Increase maintenance at Shipley Nature Center ($ 10,000) ► Increase book budget at public libraries ($25,000) ► Increase animal control services contract with the County ($312,500) ► Increase crossing guard services ($52, 100) ► Increase funding for tree trimming ($ 100,000) 100 YEARS OF SURFING MUNTING70N BEACH CA hftftb,�Ihs 17 Enhance Economic Development s For the first time since the economic crisis, the FY 2014/15 Proposed Budget includes funding for a new Commercial Revolving Loan Fund This new $200,000 fund will assist in enhancing business retention and development strategies The Proposed Budget also includes an increase of $460,000 for Tax Sharing Agreements Sales Tax Agreement with Pinnacle Hotel Tax Agreement with Visit HB The Budget also includes $54,000 for the implementation of the new Economic Development Strategic Plan �f t:; 18 Improve the City 's Infrastr°uctuft Capital Improvement Program FY 2014/15 New Appropriations by Funding Source $42,792,777 Sewer Funds nfrastructure Fund Water Funds TIF 6% 3% j 10% Measure M 1% 5% Prop 42 5% � --`Park Funds 1 4% lGasTax 7% Grants/Other 44% General Fund 15% I� 19 Irn rove the City ' s Infrastructure FY 2014/15 CIP includes $42 . 8 million in projects This budget exceeds the 15% Infrastructure requirement Included in the CIP is $3 .0 million in recurring, structural General Fund support for infrastructure New State-of-the-Art Senior Center Project totaling $21 . 5 million from a variety of funding sources LeBard School Site funding of $667,000 for Year One (split funding from GF and other sources) Worthy Park improvements of $ 1 .3 million a`: 20 Senior Center Project Construction costs are estimated at $21 .5 million The FY 2014/15 Proposed Budget includes $3 .0 million in the CIP from the General Fund for the project A General Fund-backed bond will address the remaining funding gap of $ 15 .0 million The Proposed Budget also includes $ 1 .0 million in the operating budget for the first year of debt service on bond rM ^` Concept Rendering of East Elevation t view looking from Goldenwest Street 21 Develop, Retain and Attract Quality Staff It has taken five to seven years for the economy to recover During the Great Recession employee groups provided significant concessions The FY 2014/15 Proposed Budget includes $7.5 million in labor adjustments (including contracts awaiting finalization) This will help retain quality and experienced staff ,,. :. 22 Improve Long-Term Financial Sustainability The Proposed Budget continues funding for the City's award-winning 3-pronged approach to reduce unfunded liabilities: The "25 to 10" Plan for Retiree Medical ■ The " 16 to 10" Plan for Retiree Supplemental CalPERS "One Equals Five" Plan The Proposed Budget provides full funding for the City's annual Workers' Compensation Costs Also includes a new plan for reducing the $ 10.4 million Workers ' Compensation unfunded liability 23 „ \ � . General Fund Balance (In Thousands Audited Estimated Estimated Economic Uncertainties* $ 24,011 $ 24,011 $ 24,011 Litigation Reserve 900 900 900 Equipment Replacement 8,295 8,295 7,673 Redevelopment Dissolution 1,323 1,323 1,323 Retiree Medical Unfunded 698 698 698 General Plan Maintenance 720 720 720 Capital Projects Reserve 7,136 71136 6,801 Senior Center 2,000 2,000 - CalPERS One Equals Five Plan 500 500 500 Other Fund Balance** 81924 8,924 8,924 Total Fund Balance $ 54,507 $ 54,507 $ 51,550 *i equal two months of General Fund expenditures of$34.8 million. Pre paid Insurance,Encumbrances,Non-Spendable and other Restricted Items. 24 TCaIPERS Increases Total Ca1PERS costs will increase from $26. 1 million in FY 13/14 to $49.3 million by FY 21/22 (eight years), an 89% increase ► Safety rate increases from 38.8% to 55.2% in eight years ► Miscellaneous rate increases from 21 .4% to 34.7% in eight years ► These estimates DO NOT include the cost of recently negotiated or yet to be negotiated contracts ► Employee compensation currently totals almost three quarters of the General Fund Budget (71 %) 25 „ , 8-Year CaIPERS rn to er Rate ncreases_:_ $60.0 89% (In Millions) $50.0 $40.0 19. 20. 18. 16. $30.0 15. Misc 13. ■Safety 11. $20.0 10. $10.0 FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 $26.1 $27.1 $29.5 $33.9 $37.7 $41.7 $45.8 $48.1 $49.3 *Projections do not include fiscal impact of new negotiated contracts. Plan to Address PERS Liabilities The City will be facing significant increases in PERS Employer contribution rates starting in FY 2015/16 The Proposed Budget includes a $500,000 surplus It is recommended the surplus be coupled with the $500k in the "One Equals Five" set-aside to create a $ 1 million plan to address PERS costs (choose one): Fund the "One Equals Five Plan" (each $ 1 M saves $5M); OR Create a PERS Rate Stabilization Fund (minimize volatility); OR Reduce amortization of Public Safety Plan from 27 to 22 years 27 t� T u sled Costs on the Horizon __- Non- low, WW Discretionary Discretionary 8 Additional Police Officers 1,600,000 PERS, Rate Increases in FY 15/16 and FY 16/17 6,800,000 800 MHz Project 9,000,000 Workers' Compensation Unfunded Liabilities Plan 754,000 Extended Library Hours 184,500 LeBard School Site Funding Gap (Years 2 — 5) 667,000 Class One Trail and Bicycle Boulevards TBD Project Self Sufficiency 58,300 Tree Trimming for a 6 Year Cycle 150,000 Annual Funding to Reduce Public Safety PERS Amortization 5 Years 500,000 Unfunded Staffing Requests (14.5 FTEs) 1,800,000 Unfunded Equipment Requests 1,100,000 fthwwlw� 28 9 FY 2014/15 Proposed Budget Recap Funds a new State-of-the-Art Senior Center Restores funding for two additional Police Officers, for a total of 7 new Police Officers since FY 2012/13 Provides added funding for quality of life programs ► Eliminates two of the City's three retirement unfunded liabilities in 10 years* ( 15 years and 6 years ahead of schedule based on the plan) Restores funding for arts, culture and recreation Features a $500,000 surplus to help pay down our PERS costs/liabilities *Pending market conditions, no additional changes in actuarial methodologies, etc. � 29 Budget Calendar -Proposed Date July 21 , 2014 FY 2014/15 Proposed Budget Study Session August 4, 2014 FY 2014/15 Proposed CIP and Infrastructure Study Session August 18, 2014 FY 2014/15 Proposed Budget Study Session (Part 2) September 2, 2014 FY 2014/15 Budget Hearing and Adoption September 15, 2014 FY 2014/15 Budget Hearing and Adoption (as needed) September 30, 2014 Charter Deadline to Adopt the FY 2014/15 Budget October 1 , 2014 New Fiscal Year Begins bs ` 30 Awards and Accolades LIFORNIA �_"CIETY�jMUNICIPAL �'ANCE OFFICERS e ' ' e ' of ' . ' i*MwniripnlFiiwririalMgnggeqimt Certificate till 1% DIStinguisbed 201q Presented to 1 City of Huntington Beach �nnoroa�ion �ward 2014 Budgeting & Finance Presented to the CITl( OF CITY OF HUNTINGTON BEACH CITY OF HUNTINGTON BEACH HUNTINGTON BEACt FOR THE YEAR ENDED SEPTEMBER 30, 2012 FISCAL YEAR 2013/2014 Unfunded Liability Plan " A chievement IF [ YItYlYlYT i O! l7ICllLlNOl INPopular Annual •N!i■NI ATION Findncial Reporthq Financial ReportingAward 1100 OF u EAR a � HUNTINOTON B EACX CA 1*1 100 Years of Surfi _. y • `. :,ate• .wY'.d!�T> .. _�__. «..��..__._.:� .S2'_ ..-_s "�:;.._. _,E¢��-. � ➢ N S f?