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Home My WebLink AboutStudy Session #1 - Fiscal Year 2017/18 Proposed Budget, "Tak City of Huntington Beach FISCAL YEAR 2017j18 PROPOSED BUDGET "Taking Care of Business" 8/21/2017 August 21,2017 Presented by the Finance Department Overview A ends � Overview of the FY 2017/18 Proposed Budget � Fiscal Year 2017/18 CIP • City Council Chambers Audio Visual Upgrade • Library Wayfinding Project • Downtown Wayfinding Project (or alternatives) � Expanded Sunday Library Hours z SUPPLEMENTAL COMMUNICAPON :l Date: "Taking Care of Business" The FY 17/18 Proposed Budget takes care of business by: ✓ Committing 55% of Budget to Public Safety ✓ Dedicating 15% of the General Fund to Infrastructure ✓ Being Proactive by Preparing for Rising Pension Costs ✓ Budgeting in a Conservative Manner to Promote Long- Term Financial Health ✓ Keeping the Citywide Head Count Flat ✓ No Across-the-Board Salary Increases FY 2017/18 Proposed Budget The FY 2017/18 Proposed All Funds Budget totals $360.0 million, a $14.5 million, or 4.0% increase from the FY 2016/17 Adopted Budget ✓ Of this amount,$12.5 million is due to technical accounting adjustments for three new operating transfers Net of these operating transfers, the increase to the All Funds budget is only$2.5 million, or 0.7 percent The FY 2017/18 Proposed General Fund Budget totals $224.0 million, a $3.6 million, or 1.6% increase from the FY 2016/17 Adopted Budget FY 2017/18 General Fund Highlights N 2016/17 FV 2017/38 Adopted Budget Proposed Budget $Change Description %Change General Fund Revenues 8/21/2017 General Fund Expenses t D- rr $0.0 $0.0 00% FY 2017/18 General Fund Overview Balanced General Fund Budget for FY 2017/18 • A modest General Fund revenue increase of 1.6% is projected • Committing 55%of Budget to Public Safety • No increases to Citywide headcount are included in the budget • Fixed cost increases such as PERS ($1.2 million), insurance premiums($600,000),and contracts are included ($1.2 million) • Equipment replacement funding totals$4.7 million • The 15%Charter requirement for Infrastructure is met • Strong financial and emergency reserves of$60 million • To prepare for future pension cost increases, no significant enhancements are included in the Budget at this time 6 Public Safety Police and Fire = 55°/D of General Fund Polke Fire-MMIcalProgram Dispat[h/Property Fire-Marine$ale[y Evidentt/C51/Recortls/ $gA39,593 $9,999,811 Atlmin&Training $35,9gg,fAB Fire-Prevention_ _ �i{re�EOC/Admin $1,053,931 � � $1.10g,28] Polls Investigations $35R63A)6 fireEmergency Response $33,092,]16 Poe[e-ummrm $aay29,13s ] Public Safety — Police 8/21/2017 Police Department Amount Animal Control Services 300,000 Increased funding for a Police Officer previously funded by grant 110,000 Contract Security Services at Library,Community Centers and Beaches 11 111 Equipment Replacement—Aircraft Upgrade* 550,000 Equipment Replacement—Fleet Vehicles* 111 Lower80,000 8/21/2O17 Metro Cities JPA 51,200 Central Net Operations Authority Training 33,500 Fire Suppression and Junior Lifeguard Uniforms 60,000 Equipment Replacement—New Firefighter Turnouts* 140,000 Equipment Replacement—Fire Station 8 Apparatus Bay Entry- 125,000 Equipment Replacement—New Ambulance- 225,000 Equipment Replacement—Two Lifeguard Tower Replacements' 90,000 Equipment Replacement—(air bottles,fire hoses,scuba equipment, 128,200 watercraft and all terrain vehicles)" Total $852,900 Quality of Increase funding for • temporary due to popular demand of 1 1 1 Increase of •r Center Instructor payments for , activities($156,000)which is largely net neutral NourishmentBeach • 111 Park Improvements w Central Park East ($127,011 a Sports Complex Turf Replacement ($196,000) �7 5 Economic and Financial Sustainability • Provides funding for the City's annual Workers'Compensation costs • The$11.4 million Workers' Compensation unfunded liability is increasing • The Proposed Budget continues the 20-22 year funding plan, however, if claims are higher next year,this may not be achieved - The current year budget will need to increase 6y$450k due[o larger claims - Next year's budget is being re-evaluated as a result - Moreover,liability is increasing by$5.8 million based on newest actuarial • The Proposed Budget also provides sufficient funding for the General Liability Fund to address both annual and long-term liabilities • The budget increased by$600k for higher annual insurance premiums • The budget also provides$250k in recurring annual funding for the City's 8/21/2017 share(20-25 percent)of BICEP payouts to member agencies The budget also contains a General Fund appropriation for an assumed 25 percent cut to Federal CDBG funds as a contingency ss Fee Modifications • Modify Adventure Playground fee for Residents and Non-Residents/Groups per person from$3.00 per day to$4.00 per day • Modify the Surf Class Parking Pass from$5.00 per year to$5.00 per semester • Fire(CUPA) Fees-modify to 100%cost recovery • Fire(Junior Lifeguard) modify F-142 and F-143 fee to 100'Yo cost recovery • Fire Prevention-modify F-241 to 100%cost recovery • Fire-R1&R2-fee restructure-cost neutral • Fire Inspection Fees-F-99, F-S00, F-101 and F-102 to 75`Y•cost recovery* • Electric Vehicle Charging Station Fees-modify[0 100%cost recovery** • NEW-Summer Parking Meter Rates of$1.75 per hour to year round CaIPERS Discount Rate Change J The CaIPERS Board has decided to reduce the estimated earnings rate of its investment portfolio from 7.5%to 7.0% U The additional cost to the City may be $4.5 million to $6 million more per year U This equals a potential$23 million -$29 million increase in pension costs over the next six years I:J The phase-in begins with the rates effective July 1, 2018 U As a result,the City needs to start planning for these increased costs as soon as possible U A plan will be presented in the Fall of 2017,with the Long-Term Financial Plan Update Capital Improvement Program (All Funds) $23,683,764 InirasWclure Funtl Water Funtl Sewer Funtlsl ' —__ 1T% RMRA 5% Measure M__ 1 Pz. Park Fantle Gratis/Other i6% 3�' General Fund \GaslProp 42 1"h 14% i• Capital Improvement Program (All Funds) • FY 2017/18 Proposed CIP includes$23.7 million in projects(All Funds) • Included in the CIP is$3.3 million for concrete,arterial roadway,sand replenishment, beach replenishment,park improvements,Sports Complex turf replacement and other projects • At the July 17,2017 Study Session,City Council requested additional information regarding: 8/21/2017 • Downtown Signage for$150,000(In-Lieu Parking Fund) City Council Chambers Audio Visual Project for of off (General Fund) • Options for Expanded Sunday Hours at the Library • Central Library Directional Signage for$50,000(General Fund) Downtown Parking Structure Wayfinding Plan 16 Downtown Parking Structure Wayfinding Project • The FY 17/18 Proposed CIP initially included $150,000 from the Parking In-Lieu Fund 308 • After further review, it is recommended to be removed from the CIP • Visit HB has agreed to fund this project Council Chamber F� Audio/Video Technology Upgrade Project Overview Improves the quality of City Council and Planning Commission meetings for staff, voting members and the public by providing improved Audio and Visual technology services. • Replaces antiquated audio and video infrastructure implemented over 20 years ago,that has been piecemeal to sustain operations. Updates failing equipment with modern, affordable, and durable equipment that is integrated from the dais,to the Executive Seating,to the Audio/Visual control room, and to the ancillary rooms into which the meetings are broadcast. Audio/Video Technology Challenges NvbllitVol prexentationa antl OmtlatMeaprajrttlon LlmitMtecM1rolop•InPut Ati waled and tnP«wlN,in[hamber mJ aPYom lar Vitltas and stall n 9 Moad[aatM 1echrolagV ematians umlaumenlM equipment •per . � `'�� e r��Y �!� LmN of able nanMemem VmlabM auEio ggenion Non uanpLum AOA aao«tl NrmavAM Old vmm6aM call (wlVmeldurinR meeVnds Imrnmp,.V'•^m o.lx'ak ayem 30 City Council Chamber Audio/Video Technology Upgrade Presentation Video Phase 1 $113,000 Wall Build Out Phase 1 15,000 1 Presentation Control System Display WallPhase 1 25,000 t -< 1 �Equipment Rack ' ILI and Power Distribution Phase 1 8,000 Aj_ 1 A/V Room '^ _ .%of Performance Bond Phase 1 9,000 IN i;i Old Voting Audio System System Phase II 65,000 Antiquated Mill Work Phase 11 25,000 Audio -. - .J' System Contingency Phase I&II 20,000 1 111 21 a 3 JV f J A• i� Library Sunday Hours Options 22 History of Sunday Hours • In 1997,City Council approved funding of$101,000 to add Sunday hours. • From 1997 to 2009,the Central Library was open from 1 p.m.to 5 p.m. • In 2009,the Great Recession hit the City forcing the Central Library to cease Sunday operating hours. • In 2010,further staffing reductions were made to the Library Budget. • In 2016,City Council requested that City staff evaluate the operating hours and options to bring back Sunday service. • In 2017,a Study Session was held to discuss possible alternatives,the 8/21/2017 related costs and required funding amounts • Three options are proposed for consideration �3 Tuesday Existing Operating Hours Current Hours Total Operating #of Storytime Hours rr . 11 • Thursday 11 a.m.totl • Friday r1 11 • Saturday 11 a.m.to 11 Sunday • -• r 1 .1 St.iOin�;of 28 FiF 12 za 8/21/2017 Scenario • . . 4 Hours on Sunday Current&Proposed Hours �® Monday 1:00 p.m.to 9:00 p.m. 8 0 Tuesday 9:00 a.m.to 9:00 p.m. 12 2 Wednesday 9:00 a.m.to 9:00 Thursday 9:00 a.m.to 9:00 p.m. 12 3 �� Scenario Friday 9:00 a.m.to 5:00 p.m. 8 2 Saturday 9:00 a.m.to 5:00 p.m. 8 3 Sunday 1:00 p.m.to 5:00 p.m. 4 0 � 64 12 i Potential Cost $137,950 • Shifting • Current Hours �® Monday 10:00 a.m.to 8:00 p.m. 10 Tuesday 10:00 a.m.to 8:00 p.m. 10 Wednesday 10:00 a.m.to 8:00 p.m. 30 1 26 Thursday 30:00 a.m.to 8:00 p.m. 10 Friday 9:00 a.m.to 5:00 p.m. 8 2 Saturday 9:00 a.m.to 5:00 p.m. 8 3 Sunday 1:00 p.m.to 5:00 p.m. 4 0 60 SO Potential COY[Y $55,450 13 Scenario #3 — Reduce Hcurs Proposed Operating Hours Total Operating #of Storytime 8/21/2017 Hours Tuesday 1 11 11 . Thursday tt . tt . Friday a l 11 . Saturday al II r Sunday 1 P.M. 11 Potential Costs 11 Impatl-Net loss of 1 storytlme(143 people per week)antl s[utly hours(1,74]people Ver week) 2) 14 Options for Council to Consider Add Sunday to Existing Operating Hours $137,950 Shift Hours (Scenario #2) $55,450 Reduce Hours (Scenario #3) $27,450 Keep As Is $0 Library Directional Signage and Wayfinding Project 29 Overview • Since 2010, the City has been working on improving the overall User experience at the Central Library. • Challenge—handling volume of use and activity with previous staffing and budget reductions: — 1 million library items circulated a year(three times collection) — Annual visits between 750,000—800,000 annual;this year on track for over 800,000 visitors — Staffing reduced from 37.75 FTE in 2008 to 28.25 FTE in 2017 • Technology and physical improvements were studied. • Solutions implemented to date include: — Self Service Checkout Kiosks — Automated Book Sorting • Directional system is the next step in the process and builds on the work already done. — Cost is$50,000 Central Library • Large, complicated building — 115,000 sq ft; multiple floors and poor directional signage that is over 40 years old. • Library staff answer on average 184 purely directional questions a day: — "Where are the rest rooms?" — "Where is study room A?" — "Where is the Talbert room?" — "How do I get out of here?" Directional Signage Phases • The Concept Design scheme is included the FY 2016/17 CIP, after extensive review and discussion with the Library Board, City Administration and the Public Works Commission. • Proposed project is the second year of the project, and should help to get about 50— 60% of the implemented system in place. — Ensures ADA compliance — Designs key components — Installation of 75 key signs throughout the building • The City is requesting that the Friends of the Library help supplement and possibly support additional elements in the system. 3z Central Library ^r 'll N r. r Children's Program r 1 f i FY 2017/18 Proposed Budget Calendar August 21,2017 FY 2017/18 Proposed Budget Study Session(2) September 5,2017 FY 2017/18 Budget Adoption:City Council Public Hearing September 18,2017 FY 2017/18 Budget Adoption(Alternate Date) October 1,2017 fiscal Vear 2017/18 Begins November/December Workshops to Discuss Plans and Options for Increased 2017 Pension Costs February 1,2018 Ca1PERS ALM(Asset and Liability Management)Review FY 2017/18 PROPOSED 8/21/2017 BUDGET Fitch RatlA lw i;usl Z I, 2017 18 Estanislau, Robin From: Richardson Gray[richardson.gray@yahoo.com] Sent: Thursday, August 17, 2017 11:21 AM To: Estanislau, Robin Subject: Public Comment in Support of Increased Libraries Funding —City Council Study Session on August 21 st, 2018 City Budget Presentation, and City Council Public Hearing on September 5th, 2018 City Budget Dear City Clerk,Robin Estanislau: Please distribute this email to all seven City Council Members for two upcoming City Council Meetings. The first meeting is on August 21 st,for Study Session Item Number 1,concerning the 2018 City Budget. The second meeting is on September 51h,for the Public Hearing on the 2018 City Budget. I have owned my home in our Downtown neighborhood for over ten years,since retiring herein 2006, lam writing to all of our City Council Members to urge you to restore our City Public Libraries'funding to match its share of the City Budget before the Great Recession. Beginning with the Great Recession, our City made significant cuts to our Public Libraries'funding,and these cut have not yet been fully reversed. Huntington Beach has the largest collection of books in its public libraries of any City in Orange County. As such,our Public Libraries are one of our community's most impressive achievements for the quality of life for our residents. For families and seniors especially,the high quality of the Huntington Beach Public Libraries is a major reason for moving to Huntington Beach,and for then staying here and not leaving. From the perspective of many tens of thousands of our residents, it is crucially imponght that we maintain and enhance the quality of our City's Public Libraries in the 2018 City Budget and in the City Budgets throughout all future years. The Huntington Beach Public Libraries'funding still remains significantly below its level before the Great Recession, not accounting for inflation over the last ten years. For all of these reasons,I urge you to begin moving toward restoring our City's Public Libraries to a funding level that matches the share of the City Budget that our Public Libraries garnered before the Great Recession. As a telling example in 2011.63%of the voters in the City of Los Angeles approved Measure L,a referendum adopting a comparable policy for reversing Great-Recession cuts to Los Angeles'public libraries funding. A similar effort for the Huntington Beach Public Libraries is one of the most important things that our Council can accomplish to maintain and enhance our City's residential quality of life. Thank you for considering my views. And I hope that you will do all that you can to support the wonderful Huntington Beach Public Libraries. Richardson Gray 415 Townsquare Lane#208 Huntington Beach,CA 92648 714-348-1928(cell) richa rdso n.oravlrDvahoo oom SOPPLEMENTAL COMMUNICATION Ariinp I]aM: 2 r� 4oends Rem No.. SS 1