HomeMy WebLinkAboutWS - BUDGET PRESENTATION FY 13-15PROPOSED 2-YEAR BUDGET
Presented May 20, 2013
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Historical Budget Overview
Policy Assumptions Going Forward
Budget Assumptions
2013-15 Budget Overview
One-Time Revenues & Term Specific Expenditures
Capital Improvement Program (CIP)
Departmental Presentations
Next Steps
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Worst Economic Decline Since The Great Depression
City of Santa
Ana (Stats & High’sLow’sCurrently
Figures)
Unemployment 15.5% 7.1% 9.1%
Rate
(Jan2010)(Jan2008)(April 2013 Prelim)
Assessed $21.9 Billion $19.8Billion$20.3Billion
Valuation
(FY08-09)(FY10-11)(FY12-13)
(Fiscal Year)
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Significant Declines in Major Revenue Sources
Sales Tax revenues declined by 26%
(approx. $11.6M from FY07-08 to FY09-10)
Property Tax revenues declined by 11.5%
(approx. $6.7M from FY07-08 to FY10-11)
$58.4
$58.3
$60
$53.0
$53.1
$52.3
$51.7
$55
Millions
$50
$44.6
$45
$38.4
$38.0
$37.0
$40
$35.8
$33.0
$35
$30
$25
$20
FY07-08FY08-09FY09-10FY10-11FY11-12FY12-13**
Property Tax*Sales Tax
*Includes Property Tax In-Lieu VLF
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**Projected
Pre-negotiated Salary/Benefit Contractual Obligations
Rising Pension Contribution Rates
State Budget Impacts:
Dissolution of RDA and loss of Tax Increment Dollars
Loss of resources for Economic Development
Loss of Motor Vehicle License Revenues ($1.2M)
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Labor Concessions
Negotiations during closed contracts
Use of One-time Funds and Reserves
Reductions in Staffing Levels
Managing vacancies
Outsourcing & Reorganizations
Other Cost Reduction Strategies
Moratorium on training and travel
Limited capital purchases
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$260
$243.1 M
$240
$220
Millions
$196.5M
$200
$180
$160
$140
$120
$100
FY08-09FY12-13
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FY 12-13
Positions%
Vacant
DEPARTMENT
FY 08-09*FY 12-13DeletedChange
Positions
City Manager's Office10 9 1-10.0%2
City Attorney's Office18 13 5-27.8%2
Clerk Of The Council5 4 1-20.0%0
Community Development Agency112 81 31-27.7%19
Finance & Management Services141 110 31-22.0%20
Fire Department**283 N/A283N/AN/A
Parks, Recreation & Community Services149 70 79-53.0%10
Personnel Services34 26 8-23.5%5
Planning & Building Agency110 71 39-35.5%30
Police Department718 669 49-6.8%96
Public Works Agency205 151 54-26.3%29
Totals1,7851,204581-32.6%213
*Peak Position Count; Estimated 272 vacant positions in FY08-09
**City Contracted Fire & Medic Services on 4/20/12
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Defining a balanced budget
Recurring revenues to meet recurring expenditures
Use of one-time funding for one-time expenditures
Establishing adequate reserve levels
In accordance with the Government Finance Officers Association (GFOA)
GeneralFund Unassigned Balances
Millions
$42.9
45.0
40.0
$36.4
35.0
$32.2
$30.0
$29.5
$29.3
30.0
$26.2
15% of
Operations
25.0
$19.3
20.0
15.0
$11.1
9.8% of
10.0
$6.7
Operations
$3.0
5.0
0.0
FY 05-06FY 06-07FY 07-08FY 08-09FY 09-10FY10-11FY11-12FY12-13FY13-14FY14-15Goal
ProjectedForecastForecast
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1.Adopt a 2-year budget
2.Provided labor strategy authority
3.Supported restructuring of departments’ organizations and services
provided based on the dollars available
4.Supported review of Police Dept. operations to identify financial savings
5.Continued support of Fiscal Policy & appropriate reserves
6.Supported appropriating Property Tax from former RDA
7.Supported the preparation of assessment studies for CIP infrastructure
needs, deferred maintenance issues and planning needs
8.Modernizing the UUT
9.Supported studying the reduction of the water transfer
10.Provided direction on budget outreach and communication
11.Supported the development of strategic plan
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10 Council and Public Workshops
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1.Departments to reorganize structure based on what City can
afford
2.Implements the expiration of the compensated deferrals
(approximately $7.4M)
3.No new programs or services
4.Continues to evaluate public safety costs
5.No new increases in negotiated compensation
6.Increases in CalPERS and medical costs are included
7.Capped costs for services and supplies
8.No additional general fund contributions to CIP
9.Honors Council approved Fiscal Policy
10.Assumes moderate growth in revenue sources
11.Returns former redevelopment Property Tax to General Fund
12.Risks to significant revenues identified but not included
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Revenues
Expenditures
$428.1M
$428.1M
*
1.0%
0.2%
3.5%
4.7%
3.6%
4.0%
6.0%
6.5%
7.4%
7.1%
5.6%
48%
51.2%
6.9%
8.9%
11.1%
12.4%
11.9%
General FundWater EnterpriseOther Enterprise Funds
Capital Projects-GrantsHousing AssistanceSpecial Revenue Fund
CDBG and Other GrantsSuccessor AgencyGF Related Special Revenues
* Includes $26.5M in prior year balances for non-general funds.
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Revenues
Expenditures
$390.9M
$390.9M
*
0.4%
0.2%
4.9%
3.7%
3.7%
3.9%
4.0%
4.8%
8.0%
2.3%
7.8%
3.0%
9.5%
52.3%
54.2%
11.1%
13.2%
13.0%
General FundWater EnterpriseOther Enterprise Funds
Capital Projects-GrantsHousing AssistanceSpecial Revenue Fund
CDBG and Other GrantsSuccessor AgencyGF Related Special Revenues
* Includes $13.7M in prior year balances for non-general funds.
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Note: Reduction in budget primarily tied to reduced Capital Improvement Funds
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Expenditures
Revenues
$205.7M
$205.7M
2.1%
1.4%
1.5%
2.5%
3.5%
4.1%
4.5%
5.1%
5.0%
6.3%
7.0%
7.4%
50.5%
8.3%
71.2%
19.5%
6 Major Tax RevenuesUse Of Money & Property
Police DepartmentFire Services
Parks & RecreationAll Others (Gen. & Admin. Services)
Other Revenue & TaxesLicense, Permits & Fees
Debt ServicePlanning & Building
Charges for Services & FeesIntergovernmental
Public Works AgencyFinance & Management Services
Franchise Fees
Reserves
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Expenditures
Revenues
$204.5M
$204.5M
2.2%
2.6%
1.4%
0.1%
3.6%
3.6%
4.5%
5.2%
5.1%
6.3%
6.3%
8.5%
7.4%
52.2%
71.6%
20.1%
6 Major Tax RevenuesUse Of Money & Property
Police DepartmentFire Services
Parks & RecreationAll Others (Gen. & Admin. Services)
Other Revenue & TaxesLicense, Permits & Fees
Debt ServicePlanning & Building
Charges for Services & FeesIntergovernmental
Public Works AgencyFinance & Management Services
Franchise Fees
Reserves
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Since FY08-09 full-time workforce count has decreased over 41%
1,900
1785
1,700
1635
1513
1510
1,500
1,300
1204
1,100
10491049
900
700
500
FY08-09FY09-10FY10-11FY11-12FY12-13*FY13-14FY14-15
*Includes the transfer of Fire Department personnel to OCFA
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Net Reduction of 155 FT Positions
Reallocation of 12 Positions
No Unfunded Positions
Filling of 74 Vacancies
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2.7% CPI –LA/Riverside/Orange County Services Index
Ten New Fees:
FMSA -
Return Payment Service Fee
-Utility Service Set-up Fee
-Business License Related Fees Effective 10/1/13:
Hearing Service, Auto Registration, Audit Service,
Inspection/Collection Service, Transfer Service and
Recording Service
PRCSA
-Santa Ana Stadium/Commercial Events/Non-Spectator
-Adult Baseball Surcharge
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Modifying six existing fees:
FMSA –Extend Credit Card Charge Moratorium though June 2014
CDA –Enterprise Zone Hiring Credit Application Processing Fee
PRCSA –Santa Ana Stadium –Television Rights
PRCSA –Santiago Lawn Bowling Greens
PD –Police Security Services
PWA –Residential Parking Permit
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Development of the City’s Strategic Plan
Development of Capital and deferred maintenance needs
assessment
Update the General Plan and Zoning Code
Continue to identify for reorganization & cost efficiency
opportunities
Development of an Information Services Strategic Plan
Preparation of Citywide Economic Development Strategy
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May 28 –City Council Workshop
•
May 29 -Community Budget Forum
•
June 3–1st Public Hearing
•
June 17-2Public Hearing & Adoption
nd
•
July 1 –New Fiscal Year Begins
•
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