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Home My WebLink AboutPOWERPOINT - WORK STUDY - FY 20-21 DRAFT OPERATING BUDGETDraft Operating Budget FISCAL YEAR 20-21 City Council Meeting May 19, 2020 Agenda •Community Engagement •Revenue Outlook and Trends •Department Supplemental Budget Requests - Highlights •FY 20-21 Draft General Fund Budget •FY 20-21 Restricted Revenues and Other Funds •FY 19-20 Capital Projects Budget and FY 20-21 Capital Improvement Plan •Next Steps 1 Documents Attached to Agenda •Measure X Citizen Oversight Committee –Summary of Recommendations & Comprehensive Annual Report •Community Comments and Questions on Proposed FY 20-21 Budget •FY 20-21 Workforce Changes •FY 20-21 Proposed Miscellaneous Fees Schedule Changes 2 Community Engagement 3 Community Input COVID-19 •Funding from Federal stimulus package •Impact on City revenue •Purchasing Personal Protection Equipment for police officers •Impact on CALPERS investments •Impact on service levels Youth •Development of Youth Strategic Plan to include an assessment and evaluation of current programs •Utilization of cannabis revenue for investment in youth programs Homelessness •Address Homeless population exposed to COVID-19 •Evaluate measures successful to combat homelessness •Provide additional resources and collaborate with SAUSD •Debris removal Other •Increase patrol to improve park safety •Investment in City parks •Funding for street improvements (Ex: Bristol St widening) •Programing for Senior citizens •Jail module operations/funding 4 -21 questions/comments received via phone/YouTube comments during Community Budget Meeting -11 questions/comments received via Budget Office email –email continues to remain open for any additional budget questions Revenue Outlook and Trends 5 Revenue Outlook –FY 19 -20 6 Per Budget Update at City Council Meeting –April 21, 2020 Potential Impacted Revenue Sources FY19-20 Budget FY19-20 NEW Estimate FY19-20 Estimated Loss Sales Tax $111,509,900 $108,550,600 $2,959,300 Hotel Visitors’ Tax $9,500,000 $6,700,000 $2,800,000 Business License Tax $13,000,000 $11,000,000 $2,000,000 Permit & Plan Check Fees $7,881,000 $5,381,000 $2,500,000 Zoo, Recreation & Library Fees $2,691,000 $1,900,000 $791,000 Parking Fines $5,245,700 $3,945,700 $1,300,000 $12,350,300 Total Estimated Loss Revenue Outlook –FY 20 -21 7 Potential Impacted Revenue Sources FY19-20 Budget FY20-21 Potential April 21 Apirl 2020 FY 20-21 Estimated Loss FY20-21 Update May 19 FY 20-21 Estimated Loss Sales Tax $111,509,900 $107,132,000 $4,377,900 $104,202,500 $7,307,400 Hotel Visitors’ Tax $9,500,000 $6,500,000 $3,000,000 $5,730,000 $3,770,000 Business License Tax $13,000,000 $9,750,000 $3,250,000 $9,000,000 $4,000,000 Permit & Plan Check Fees $7,881,000 $5,381,000 $2,500,000 $5,381,000 $2,500,000 Zoo, Recreation & Library Fees $2,691,000 $2,000,000 $691,000 $2,000,000 $691,000 Parking Fines $5,245,700 $4,000,000 $1,245,700 $4,000,000 $1,245,700 $15,064,600 $19,514,100 Total Estimated Loss Sales Tax Assumptions 8 March 2020 -25% decline in Sales Tax April –June 2020 -25.8% decline 3.0 times historical “Great Recession” percent decline July –September 2020 -17.2% decline 2.0 times historical “Great Recession” percent decline October –December 2020 –12.9% decline 1.5 times historical “Great Recession” percent decline January –March 2021 –8.6% decline Historical “Great Recession” percent decline City’s Historical “Great Recession” percent decline was 8.6% Sales Tax Outlook 9 Fiscal Year 2019-2020 Fiscal Year 2020-2021 FY 20-21 Estimate at 4/21/20 FY 20-21 Current Estimate Sales Tax 46,682,800 45,371,422 Sales Tax - Measure X 60,449,200 58,831,083 107,132,000 104,202,505 FY19-20 Budget FY19-20 Estimate at Mid-year FY19-20 Current Estimate Sales Tax 51,509,900 52,150,000 48,970,817 Sales Tax - Measure X 60,000,000 61,100,000 59,579,783 111,509,900 113,250,000 108,550,600 Sales Tax (Bradley-Burns) 10 Property Tax (includes VLF in-lieu) 11 Department Supplemental Budget Requests –Highlights 12 Clerk of the Council 1 •Funding for Election Costs of $430,000 to coordinate and execute all post-nomination Election Day planning and logistics. (One-Time) 13 Community Development Agency 1 •Continued outreach and engagement services for individuals experiencing homelessness of $75,000. 2 •Deleting two positions of Economic Development Specialist II/III to fund an Economic Development Manager to lead marketing and business outreach efforts, oversee the arts and culture program, Downtown District and WORK Center. 14 Finance & Management Services 1 •Temporary staffing for payroll system upgrades $50,000 (one-time) 15 Information Technology 1 •Replacement of Land Management System (SAPIN)- $2,500,000 2 •Update to Data Center Facility including Backup Equipment, Fire Suppression System and Air Conditioning. -$490,000 3 •Implementation of a timekeeping system -$300,000 4 •Purchase Cybersecurity Protection software/equipment. - $175,000 16 Funding for these projects utilizing IT accumulated fund balance. Library 1 •Addition of a Library Operations Manager to assist in the day to day operations of the Library -$106,340 17 Parks, Recreation & Community Services 1 •$100,000 for the Park Master Plan, which will focus on capital development and improvement strategies that correspond to the community’s needs. (One-Time) 2 •Addition of a Zoo Curator of Education, Zoo Curator of Health, Zoo Education Specialists and Zoo Keeper.* 3 •Addition of eight Recreation program staff in continued support of youth programs.* 18 * Additional staff funded by the Cannabis Public Benefit Fund for youth programs and part-time staff savings. Planning and Building Agency 1 •Increasing contracted planning services in response to submission of large, complex and time consuming development projects. -$158,000 (One-Time) 19 Police Department 1 •$150,000 to contract for a Family Justice Center Director and Domestic Violence Advocate for the Family Justice Center as well as outreach/special events, and facility maintenance 2 •Increased funding of Quality of Life Team (QOLT) in response to Homelessness Efforts - $500,000 3 •Additional overtime funding Field Operations -$500,000 4 •Jail Medical Service Consultant -$50,000 •Jail Inmate Meal Cost Increase -$50,000 20 Public Works Agency 1 •$500,000 for increase of contractors dedicated to abatement and clean-up services as part of QOLT, in relation to homelessness efforts. 2 •$500,000 for sidewalk replacement throughout the City. 3 •$300,000 to maintain current contractual level of graffiti removal services. 4 •$200,000 for the development of a citywide comprehensive and cohesive strategic parking plan (One-Time) 5 •ADDITIONS OF EIGHT POSITIONS •Development Fees and CIP Restricted Monies: Accounting Assistant, Engineering Technician, Assistant Engineer, Principal Civil Engineer •Sanitary Sewer/Water Enterprise: Associate Engineer, Sr. Civil Engineer •Sanitation Enterprise: Street Maintenance Supervisor •General Fund: Engineering Technician 6 •Maintenance and repair of Citywide streetlights -$50,000 21 FY 20-21 Draft General Fund Budget 22 FY 20-21 General Fund Key Revenues 23 Department FY 19-20 Latest Estimate FY 20-21 Proposed Budget Sales Tax 48,970,817$ 45,371,420$ Sales Tax (Measure X)59,579,783 58,831,080 Hotel Visitor's Tax 6,700,000 5,730,000 Business License Tax 11,000,000 9,000,000 Property Tax (In Lieu of VLF)72,763,784 75,914,000 Utility Users' Tax 22,500,000 24,300,000 Jail Revenue 15,126,700 16,456,300 Medical Marijuana Tax 1,600,000 525,000 Adult Use Cannabis Tax 7,750,000 9,650,000 Commerical Cannabis Tax 1,480,000 500,000 Permits and Plan Checks 5,381,000 5,381,000 Sub-Total Key Revenues 252,852,084$ 251,658,800$ Other General Fund Revenues 59,729,750 61,622,770 Total General Fund Revenues $ 312,581,834 313,281,570$ FY 20-21 General Fund Expenditures 24 Department FY 19-20 Including Hiring Freeze and Franchise Fee Revenue FY 20-21 Proposed Budget City Manager's Office 1,922,399 1,727,881 Legislative 570,847 489,780 Unfunded Pension Liability 37,697,260 40,910,410 Debt Service Payments 9,334,580 9,336,460 Clerk of the Council 2,257,642 1,355,602 City Attorney's Office 2,916,625 2,950,264 Human Resources 2,453,195 2,897,794 Finance & Management Services Agency 9,038,932 9,060,521 Library 5,303,924 5,538,940 Bowers Museum 1,473,430 1,473,430 Parks, Recreation & Community Services 21,514,216 22,367,068 Police Department 131,082,443 140,828,995 Fire Department 45,640,920 49,470,160 Planning and Building Agency 11,959,230 11,834,430 Public Works Agency 17,234,765 13,498,579 Community Development Agency 3,850,827 3,290,665 Other Non-Departmental and Transfers 7,627,923 10,228,400 Total General Fund 311,879,158 327,259,379 FY 20 -21 General Fund Strategies 25 Included in draft: •Implement a hiring freeze to maintain current vacancies, resulting in salary savings •Use available General Fund (amount in excess of Policy Reserves) •Use a portion of the Reserve for Economic Uncertainty •Eliminate one-time expenditures from the budget Additional strategies, if needed: •Refinance unfunded pensions liability •Seek concessions with City’s employee bargaining groups •Accelerated separation program for eligible employees General Fund Balance & Reserve Policy 26 Recommend using in FY 20-21 $2.1 million Economic Uncertainty Reserve $12.6 million Estimated Available General Fund (in millions) Beginning Balance $67.0 $67.0 $67.8 Revenue $323.2 $312.6 $313.3 Expenditures & Transfers to/from other ($323.0)($311.8)($327.3) Ending Balance $67.2 $67.8 $53.8 Operating Reserve (16.67% of Revenue)$53.9 $52.1 $52.2 Economic Uncertainty Reserve (1% of $3.2 $3.1 $1.0 Available Reserve $10.1 $12.6 $0.6 Ending Balance $67.2 $67.8 $53.8 FY 19-20 (Mid-Year Update on Feb 18, 2020) FY 19-20 Including Hiring Freeze and Franchise Fee Revenue FY 20-21 DRAFT Budget FY 20-21 Restricted Revenues and Other Funds 27 Restricted Revenue Highlights •Gas Tax –Approximate decrease of 20%, but accumulated fund balance is equal to one year of revenue. •Measure M2 –Potential decrease of 16%, more information to come from OCTA. •Parking Revenue –Marked decrease from FY 18-19 to FY 19-20 (Average of 56% decrease for the months of March and April) 28 Funds to Note 29 Fund Estimated Spendable Fund Balance (as of 06/30/2020) FY 20-21 DRAFT REVENUES (including Transfer In) FY 20-21 DRAFT EXPENDITURES Estimated Spendable Fund Balance (as of 06/30/2021) 027 - Parking Fund $ (84,555) $ 4,900,000 $ 5,487,330 $ (671,885) 067 - Regional Transportation Center (SARTC)* $ (1,908,294)2,123,400$ 1,961,920$ $ (1,746,814) 080 - Liability & Property Insurance Fund (Actuarial Liability: $13.6 million) $ 9,892,808 11,337,750$ 11,389,600$ $ 9,840,958 082 - Workers Compensation Fund (Actuarial Liability: $26.9M) $ 7,905,285 10,133,000$ 11,323,150$ $ 6,715,135 *Includes $1.1 Million Subsidy from the General Fund FY 19-20 Capital Project Budget and FY 20-21 Capital Improvement Plan 30 FY 19-20Anticipated Carryovers for Capital Funding 31 Adjusted CIP Budget ($5.9 million is General Fund)$191,055,514 Total Spent-to-Date (14% total spent of CIP Budget)($26,782,781) Remaining Appropriations*$164,272,733 * Staff will request a carryover of unspent appropriations. 97% of capital funds are restricted monies. Capital Projects Budget FY 20 -21 Capital Improvement Plan New Funding for FY 20-21 Street Improvements -$21.2m •Bristol Street Improvement and Widening: Warner to St Andrew, Civic Center to Washington •17th Street Rebab: Bristol to Flower, Fairview to Bristol •Other: Fairview Rehab, MacArthur Blvd. Rehab, Alton Ave Rehab, Flower St Rehab Traffic Improvements -$13.3m •SRTS –Kennedy Elementary and Villa Fundamental Intermediate •Protected Bike Lanes –Warner Ave, Standard Ave, McFadden Ave •Corridor Traffic Signal Synchronization –Segerstrom Ave/Dryer Road, Tustin Ave Municipal Facilities -$3.4m •Pacific Electric Bike Trail Lighting •Sandpointe Park and Morrison Park Security Lighting •Santa Ana Zoo Giant River Otter Habitat Public Utility/Drainage Improvements -$37.4m •Various Sewer Main Improvements –Flower St, South Main St, Washington Square, etc. •Various Water Main Improvements –Santa Ana Blvd Crossings, Warner Ave, Bristol St, etc. •Warner Ave Strom Drain Improvements –Main to Oak 32 Next Steps •June 2 –1st reading of Budget/Capital Improvement Plan/Miscellaneous Fees/Personnel resolutions •June 16 –2nd reading and adoption of Budget and Capital Improvement Plan •July 1 –Start of Fiscal Year 20-21 33