HomeMy WebLinkAboutAgenda Report - June 6, 2018 H-01TM
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
N-1
AGENDA TITLE: Adopt Resolution Approving the Fiscal Year 2018/19 Financial Plan and Budget
and Approving the Fiscal Year 2018/19 Appropriation Spending Limit
MEETING DATE: June 6, 2018
PREPARED BY: Deputy City Manager/Internal Services Director
RECOMMENDED ACTION: Adopt resolution approving the Fiscal Year 2018/19 Financial Plan
and Budget and approving the Fiscal Year 2018/19 appropriation
spending limit
BACKGROUND INFORMATION: Staff presented information to Council regarding the FY 2018/19
budget at the Shirtsleeve meetings held on May 8, May 15 and May
22, 2018. Staff published the budget document on May 22, 2018.
The full proposed budget document is available on the City's webpage at
http://www.FociLgovifinance/pdf/2018 19DraftBudget. pdf.
The Budget presented to Council this evening is consistent with the draft released on May 22 and the
information presented at the Shirtsleeve meetings. Council was informed at the May 22 shirtsleeve
meeting that the expenditures presented for Parks, Recreation and Cultural Services has increased from
$6,196,480 to $6,224,990, an increase of $28,510 for maintenance of Rose Gate Park. Additionally, a
project to replace the projection screen with monitors in the Council Chambers for $26,000 is being
added to the Equipment Replacement Fund. These updates are reflected in this staff report and will be
included in the finalized budget document.
The General Fund for FY 2018/19 is balanced at $51,300,380 for both revenues and expenses. No draw
on reserves is budgeted. The June 30, 2019 fund balance is projected to be $8,848,826 which fully funds
both the Catastrophic Reserve and Economic Reserve of approximately $4.1 million each.
The budget proposed 390 full time employees, a net reduction of three over the prior year. The
recommended changes are shown in the table below:
Classification —
Department
Change
Fund
Cost/(Savings)
Neighborhood Services
Manager
Community Dev.
Eliminate
280
($163,054)
Battalion Chief
Fire
Eliminate
100
($232,148)
Budget Manager
Internal Services
Re -class
100
$13,807
Program Coordinator
PRCS
Re -class
200
($19,259)
Engineering Aide
Water Services
Eliminate
560
($83,877)
Water Services Technician
Water Services
Add
560
$77,686
TOTAL
$406,845
APPROVED:
ephen Sc wa
uer, City Manager
Adopt Resolution Approving the Fiscal Year 2018/19 Financial Plan and Budget and Approving the Fiscal Year 2018/19
Appropriation Spending Limit
June 6, 2018
Page 2 of 2
The total cost savings of the above staff changes is approximately $406,845. The General Fund net
savings is $218,341. Savings associated with position changes in Community Development ($163,054),
PRCS ($19,259) and Water Services ($6,190) are reflected in those funds. It should be noted that
positions being eliminated are vacant.
Significant capital project included in the budget are:
• Electric Utility ($4 million)
o Underground system improvements, facility improvements, distribution capacity program,
industrial SF6 circuit breaker replacement, street light maintenance and LED retrofit.
• Water Utility ($2.4million)
o Water meter phase 8, well habilitation, design and pump modifications, PCE/TCE
management and oversight activities.
• Wastewater Utility ($6.6 million)
o White Slough storage pond expansion, SCADA and electrical upgrades, White Slough
blowers upgrade, #7 main replacement, facility improvements.
• Street Maintenance ($3 million)
o Pavement resurfacing, sidewalk repairs, Lower Sacramento median repair, signal
improvements, bicycle and pedestrian improvements.
A resolution adopting the Financial Plan and Budget is attached. Included in the budget resolution is the
adoption of the Appropriation Spending Limit for the 2018/19 fiscal year. This limit represents the
maximum spending authority for the City based upon population and inflation changes over the last year.
The 2018/19 Appropriation Limit is $105,753,512, an increase of $5,586,825 from the prior year. Details
of the calculation are included in Attachment A.
The City continues to struggle with rising pension costs. A long term General Fund Long Range Financial
Plan is included in the budget (pages 16-22) that shows the City's General Fund reserves declining
rapidly beginning in FY 2019/20 in line with increasing pension costs. City staff will continue to discuss
long term remedies to maintain City services with the Council throughout the year.
FISCAL IMPACT:
AK:svb
The 2018/19 budget provides an expenditure plan for all funds. The All -Funds
expenditure budget is project to be $200,979,370, a decrease of $3.4 million from
prior year. General Fund revenues and expenditures are projected at $51,300,380
Andrew Keys, Dep* City Manager
RESOLUTION NO. 2018-112
A RESOLUTION OF THE LODI CITY COUNCIL
ADOPTING THE CITY OF LODI FINANCIAL PLAN AND
BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2018
AND ENDING JUNE 30, 2019, AND APPROVING THE 2018/19
APPROPRIATIONS SPENDING LIMIT
WHEREAS, the City Manager submitted the 2018/19 Financial Plan and Budget to the
City Council on May 22, 2018; and
WHEREAS, the 2018/19 Financial Plan and Budget was prepared in accordance with
the City Council's goals, budget assumptions, and policies; and
WHEREAS, the City Council conducted public budget meetings on May 8, May 15, and
May 22, 2018, at the Carnegie Forum; and
WHEREAS, the City Council is required to adopt the Appropriations Spending Limit for
2018/19; and
WHEREAS the Appropriations Spending Limit and the annual adjustment factors
selected to calculate the Limit are part of the Financial Plan and Budget.
follows:
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Lodi as
1. That the 2018/19 Financial Plan and Budget, as proposed by the City Manager be
approved as follows:
Budget
Police Department
$20,852,850
Fire Department
$12,088,480
Internal Services Department
$4,231,320
Non -Departmental
$4,152,490
Parks, Recreation and Cultural Services
$3,881,960
Public Works
$2,491,940
Library
$1,337,700
City Clerk
$738,420
City Attorney
$540,280
Economic Development
$501,500
City Manager
$483,440
Total General Fund
$51,300,380
Other Funds
Electric Utility
$75,129,490
Water Utility
$13,500,210
Wastewater Utility
$19,541,930
Transit Fund
$4,611,640
Streets
$6,282670
Community Development
$2,229,990
Parks, Recreation & Cultural Services
$6,224,990
Other Funds, continued
Department
Library
$1,437,700
Fleet Services
$2,021,030
Transportation Development Act
$60,000
Community Development Block Grant
$1,233,920
Public Safety Special Revenue
$315,000
Capital Outlay
$1,660,340
Vehicle Replacement & Equipment
$486,000
Debt Service
$1,757,440
Benefits
$8,926,960
Self -Insurance
$4,176,680
Trust and Agency
$83,000
Grand Total
$200,979,370
2. That the funds for the 2018/19 Financial Plan and Budget are appropriated in the
document on file in the City Clerk's Office; and
3. That the positions additions and deletions are approved as shown in the table below
effective July 1, 2018:
Classification
Department
Change
Neighborhood Services
Manager
Community Dev.
Eliminate
Battalion Chief
Fire
Eliminate
Budget Manager
Internal Services
Re -class
Program Coordinator
PRCS
Re -class
Engineering Aide
Water Services
Eliminate
Water Services Technician
Water Services
Add
4. That the Appropriations Spending Limit be increased by $5,586,825 from the
2017/18 level of $100,166,687 to the 2018/19 level of $105,753,512 in accordance
with the calculations on Attachment A.
Dated: June 6, 2018
I hereby certify that Resolution No. 2018-112 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held June 6, 2018, by the following vote:
AYES: COUNCIL MEMBERS — Chandler, Johnson, Kuehne, and Mounce
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Mayor Nakanishi
ABSTAIN: COUNCIL MEMBERS — None
NNIFER
City Clerk
2018-112
FERRAIOLO
Attachment A
2018/19 FINANCIAL PLAN AND BUDGET
APPROPRIATIONS SPENDING LIMIT
titin.: . • ► -:iii iir
AMOUNT
Last Year's Limit 100,166,687
Adjustment Factors
Total Adjustment %
Annual Adjustment
Adjustments
Total Adjustment
18':
1 Population % 1.0184
2 Inflation % 1.0367
NDING. Li
1.0558
5,586,825
None
5,586,825
2018-19 Appropriations Subject to Limi a bn
Proceeds of Taxes
Exclusions
Appropriations subject to limitations
Current Year Limit
, ER (UNDER) LIMIT
AMOUNT
39,885,778
39,885,778
105,753,512
Fiscal Year 2018-19 Budget and
Financial Plan
Andrew Keys, Deputy City Manager
GENERAL FUND
Agenda
• General Fund
• Special Revenue Funds
• Utility Funds
• Position Changes
• Questions?
• Consideration/Adoption
FY 18-19 Revenues
$51,300,380
■ Sales Tax - $12,172,600
■ Property Tax - $11,121,750
Lodi Electric PILOT - $7,197,380
■ Property Tax in Lieu - $5,374,070
Cost of Services - $4,994,780
Franchise Fees - $2,369,000
■ Rent & Investment - $1,647,830
Revenue Trends
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
YE Est Proj
♦Property Tax - 14% Growth
♦Sales Tax - 76% Growth
—•—Property Tax In Lieu VLF - 19%
Growth
Revenue Trends
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
YE Est Proj
--TOT - 140% Growth
--Business Tax - 32% Growth
FY 18-19 Expenses
$51,300,380
FY 18-19 Expenditures by Function
■ Gov't and Admin -
$2,263,640
■ Internal Services -
$4,231,320
■ Police Department -
$20,852,850
■ Fire Department -
$12,088,480
FY 18-19 Expenses
$51,300,380
FY 18-19 General Fund Expenditures by Type
■ Salary - $21,036,930
■ PERS Normal Cost -
$2,788,360
PERS UAL - $5,522,420
■ Other Benefits -
$7,067,090
■ Operations -
$11,165,480
Key Inputs FY 18-19
• Fire Engine 1 browned out 50%
• Police $100,000 to Vehicle Replacement
• Fire $250,000 to Vehicle Replacement
• Fire $170,000 to Equipment Replacement
• Continued $1.3m MOE to Measure K
• $435,000 Capital Contribution
• $265,000 IT Infrastructure Contribution
• $130,000 for 2018 elections costs
$867,444 $27,540 $143,020 $894,984 $1,656,873 ($761,889)
$97,739 $0 $0 $97,739 $165,537 ($67,798)
Vehicle Replacement Fund
Vehicle
Re • lacement Funds
Comm. Dev
FY 16/17
Fund
Balance
FY 17/18
Est Rev
FY 17/18
Est Ex
FY 17/18
YE Est
Fund
Tar • et *
Over/
(Under)
Tar • et
$42,694 $21,000
$0 $63,694
$23,308 $40,386
$264,229 $100,000 $0 $364,229 $2,314,554 ($1,950,325)
PRCS
PW - GF
$384,636 $61,700 $60,000 $446,336 $974,772 ($528,436)
Grand Total
$1,656,742 $210,240 $203,020 $1,866,982 $5,135,044 ($3,268,062)
* Fund Target is the annualized depreciated value of vehicle stock that should be set aside for future
replacements using Fleet Services estimated useful life expectancies by vehicle type.
5 Year Forecast - Revenue
Revenue Projections
Revenue
FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24
YE Est. Proposed Projected Projected Projected Projected Projected
Property Taxes - Secured
Property Taxes - CFD
Property Taxes - Other
Sales & Use Taxes
Other Taxes
EU Pilot
Licenses & Permits
Fines & Forfeitures
Use of Money
Misc Revenues
Property Tax in Lieu VLF
Intergovernmental - Other
Charges for Services
New Cost of Services
Transfer In
10, 026, 300
43,700
390,000
12, 368,100
3,892,000
7,158, 850
80,320
1,328,500
1,553,200
406,660
5,142, 654
600,310
1,885,310
2,019,232
4,295,640
10,341,750
150,000
390,000
13,122, 600
3,984,000
7,197, 380
101,970
1,447,050
1,647,830
400,660
5,374,070
644,310
1,503,980
168,370
4,826,410
10, 725, 000
262,000
397,000
13, 386, 000
4,064,000
7,234,000
105,000
1,476,000
1,681,000
401,000
5,573,000
645,000
1,520,000
0
4,827,000
11,122, 000
379,000
404,000
13, 654, 000
4,146, 000
7,271,000
108,000
1,506,000
1,715,000
401,000
5,780,000
645,000
1,536,000
0
4,827,000
11, 534, 000
511,000
412,000
13, 928, 000
4,229,000
7,308,000
111,000
1,537,000
1,750,000
401,000
5,994,000
645,000
1,552,000
0
4,827,000
11,961,000
618,000
420,000
14, 207, 000
4,314,000
7,345,000
114,000
1,568,000
1,785,000
401,000
6,216,000
645,000
1,568,000
0
4,827,000
12, 404, 000
710,000
428,000
14, 492, 000
4,401,000
7,382,000
117,000
1,600,000
1,821,000
401,000
6,446,000
645,000
1,584,000
0
4,827,000
Total Revenue
51,190, 776 51, 300, 380 52, 296, 000 53, 494, 000 54, 739, 000 55, 989, 000 57, 258, 000
Revenue Growth [1]
N/A
4.0% 2.3%
2.3% 2.3%
2.3% 2.3%
5 Year Forecast
Expenses and Fund Balance
FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24
YE Est. Proposed Projected Projected Projected Projected Projected
Salaries
PERS Normal Cost
PERS UAL
Other Benefits
Operations
Debt
Transfers
Pension Stabilization (PARS) [1]
20, 632, 380 21, 036, 930 21, 458, 000 21, 888, 000 22, 326, 000 22, 773, 000 23, 229, 000
2,648,120 2,788,360 3,325,990 3,720,960 3,795,420 3,871,410 3,948,930
4,503,000 5,522,420 6,517,012 7,237,053 8,162, 025 8,974,363 9,535,328
6,722,800 7,067,090 7,386,000 7,719,000 8,067,000 8,431,000 8,811,000
10,555,500 10,997,110 11,492,000 12,010,000 12,551,000 13,116,000 13,707,000
1,002,070 1,101,430 999,760 999,310 1,002,560 998,250 998,480
2,303,400 2,618,670 2,632,000 2,646,000 2,660,000 2,674,000 2,688,000
2,019,230 168,370
(4,030,760) (5,659,738)
Total Ex•enditure
50, 386, 500 51, 300, 380 53, 810, 762 56, 220, 323 58, 564, 005 56, 807, 263 57, 258, 000
Ex •enditure Growth Tess PARS
N/A
5.7%
5.2% 4.5%
4.2%
3.9%
3.4%
Revenue - Expenditure (less PARS) 804,276
0 (1,514,762) (2,726,323) (3,825,005) (4,849,023) (5,659,738)
Total Fund Balance (w/o PARS) 8,884,353 8,884,353 7,369,591 4,643,268 818,263
0
0
[1] Negative is a draw to pay for pension costs in that Fiscal Year.
5 Year Forecast
Available Resources
Category
FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24
Catastrophic Reserve [2]
Economic Reserve [2]
Pension Stabilization Fund [3]
DIVCA
3,933,724 4,090,561 4,183, 680 4,279,520 818,263 0 0
3,933,724 4,090,561 3,185, 911 363,748 0 0 0
9,200,000 10, 740, 000 11, 410, 000 12,120, 000 12, 870, 000 9,390,000 3,960,000
364,528 382,000 403,000 426,000 452,000 480,000 508,000
Available Resources
17, 431, 975 19, 303,122 19,182, 591 17,189, 268 14,140, 263 9,870,000 4,468,000
Fund Balance % [4]
16.0%
16.0%
14.1% 8.7%
1.5%
0.0% 0.0%
[2] Per policy, this is set at 8% of revenue, catostrophic reserves are prioritize, then economic reserves, then unassigned.
[3] Note this reserve is held in an IRS Section 115 Trust account for pensions only. It is assumed to earn 6.25% annually.
[4] Calculated as % of Revenue using the economic and catstrophic reserves only. The target is 16%.
General Fund Summary
• Continued strong growth
• Prudent financial planning has enhanced the long term
outlook
• Vacancies continue to provide Pension Stabilization
funding
• Fiscal stewardship by of staff has led to strong budget
results
• PERS continues to grow faster than revenues
• Recession will substantially impact fiscal sustainability
— -1% revenue in 2018/19 has a $2.3 Million impact on
revenues over 5 years
— A sustained -1% drop has $10.5 Million impact
SPECIAL REVENUE FUNDS
Transit Overview
Estimated Changes in Fund Balance
For the Fiscal Year Ended June 30, 2019
With Estimated Actuals for FY 2015-16 and FY 2016-17 and Comparative Budget FY 2017-18
Transit Fund
Fund Balance (Net Assets)
Beginning Fund Balance (Net Assets) Unreserved
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Estimated
2015-16 2016-17 2017-18 2017-18 2018-19
Actuals Actuals Budget Actuals Budget
4,027,483 4,837,355 5,477,163 3,785,949 5,486,449
4,541,888 3,879,088 7,338,440 7,460,940 5,292,480
3,732,016 4,930,494 7,469,817 5,760,440 4,611,640
809,872 (1,051,406) (131,377) 1,700,500 680,840
Fund Balance (Net Assets)
Ending Fund Balance (Net Assets) Unreserved 4,837,355 3,785,949 5,345,786 5,486,449 6,167,289
Fund Balance as a percentage of revenue: 107% 98% 73% 74% 117%
Transit Highlights
• Revenues and expenses are down due to bus
purchases and associated grant revenues
• FY 18/19 Planned capital projects include:
— Facility improvements (cameras, fencing and
miscellaneous improvements) - $500,000
— Passenger amenities (bus shelters, benches, trach
receptacles) - $200,000
— Fair collection equipment - $200,000
— Transfer station design — $30,000
Streets Overview
Estimated Changes in Fund Balance
For the Fiscal Year Ended June 30, 2019
With Estimated Actuals for FY 2015-16 and FY 2016-17 and Comparative Budget FY 2017-18
Street Fund
Fund Balance
Estimated
2015-16 2016-17 2017-18 2017-18 2018-19
Actuals Actuals Budget Actuals Budget
Beginning Fund Balance 3,192,312 3,789,808 3,181,006 5,755,119 6,522,099
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Fund Balance
Ending Fund Balance
8,709,537 12,158,164 9,139,110 9,321,720 7,770,130
8,112,041 10,192,853 12,068,827 8,554,740 6,282,670
597,496 1,965,311 (2,929,717) 766,980 1,487,460
3,789,808 5,755,119 251,289 6,522,099 8,009,559
Fund Balance as a percentage of revenue: 44% 47% 3% 70% 103%
18
Streets Highlights
• First full year of SB1 "New Gas Tax" revenues
— Total Gas Taxes are 907k higher than the previous
year
— Staff will continue to monitor SB1 repeal effort
• Revenues and expenditure are lower due to
the completion of the Harney Ln. overcrossing
and associated grants in FY 17/18
• Cost of services includes the 50% of FY 17/18
cost of service not assessed in FY 17/18
Streets Capital Projects
• Vehicles - $160,000
• Pavement resurfacing - $1,540,000
• Signal improvements/maintenance - $880,000
• Lower Sacramento Rd median repair - $100,000
• Bike/pedestrian signal detection/improvements
$90,000
• Lower Sacramento Rd resurfacing design -
$50,000
• Miscellaneous maintenance (crack seals, fog seal,
sidewalk/fence/landscape repairs) - $345,040
Community Development Overview
Estimated Changes in Fund Balance
For the Fiscal Year Ended June 30, 2019
With Estimated Actuals for FY 2015-16 and FY 2016-17 and Comparative Budget FY 2017-18
Community Development Fund
Fund Balance
Be
Revenues
Expenditures
Estimated
2015-16 2016-17 2017-18 2017-18 2018-19
Actuals Actuals Budget Actuals Budget
1,474,880 2,423,363 3,033,371 3,824,752 2,240,502
2,584,987 3,140,917 2,560,600 2,505,600 2,586,100
1,636,504 1,739,528 4,158,860 4,089,850 2,229,990
Net Difference (Revenues Less Expenditures) 948,483 1,401,389 (1,598,260) (1,584,250) 356,110
Fund Balance
Ending Fund Balance Unreserved 2,423,363 3,824,752 1,435,111 2,240,502 2,596,612
Fund Balance as a percentage of expenses:
148% 220% 35% 55% 116%
Community Development Highlights
• Revenues and expenses are both up reflecting
continued strong demand for new residential
housing
• Neighborhood Services Manager position has
been eliminated
— Work has been distributed, largely filled by
contract from PMC
• Annual cost of service levy continues
Parks, Recreation and Cultural
Services Overview
Estimated Changes in Fund Balance
For the Fiscal Year Ended June 30, 2019
With Estimated Actuals for FY 2015-16 and FY 2016-17 and Comparative Budget FY 2017-18
Parks, Recreation & Cultural Svcs Fund
Fund Balance
Beginning Fund Balance Unreserved
Estimated
2015-16 2016-17 2017-18 2017-18 2018-19
Actuals Actuals Budget Actuals Budget
229,264
387,392 224,442
694,674 217,754
Revenues 5,870,743 6,249,422 6,196,028 6,122,250 6,153,300
Expenditures 5,712,615 5,942,140 6,536,195 6,599,170 6,196,480
Net Difference (Revenues Less Expenditures) 158,128
Fund Balance
307,282 (340,167)
(476,920) (43,180)
Ending Fund Balance Unreserved 387,392 694,674 (115,725) 217,754 174,574
Fund Balance as a percentage of revenue net General
Fund Transfer:
17% 31% -5% 10% 8%
Parks, Recreation and Cultural
Services Highlights
• Revenues are lower due mostly to LUSD reducing
sites for after school programs from 13 to 10
• Camp revenues is projected higher due to high
demand for summer camps
• Other program revenue is up
• Expenses are down as there is no more fund
balance able to fund capital projects
• No capital projects are planned for FY 18/19 and
into the future
Library Overview
Estimated Changes in Fund Balance
For the Fiscal Year Ended June 30, 2019
With Estimated Actuals for FY 2015-16 and FY 2016-17 and Comparative Budget FY 2017-18
Library Fund
Fund Balance
Beginning Fund Balance Unreserved 264,822 670,790 199,950 575,269 6,049
Estimated
2015-16 2016-17 2017-18 2017-18 2018-19
Actuals Actuals Budget Actuals Budget
Revenues 1,774,766 1,457,057 1,687,990 1,690,990 1,484,700
Expenditures 1,368,798 1,552,578 2,231,948 2,260,210 1,437,700
Net Difference (Revenues Less Expenditures)
Fund Balance
Ending Fund Balance Unreserved
Fund Balance as a percentage of revenue net General
Fund Transfer:
405,968 (95,521) (543,958) (569,220) 47,000
670,790 575,269 (344,008) 6,049 53,049
24%
7%
19%
19% 10%
Library Highlights
• Revenues and expenses are down due to
completion of substantial capital projects in FY
17/18 and associated donations
• Continue to operate and the same level of
General Fund subsidy at approximately $1.3
Million annually
UTILTY FUNDS
Electric Utility Overview
Estimated Changes in Fund Balance
For the Fiscal Year Ended June 30, 2019
With Estimated Actuals for FY 2015-16 and FY 2016-17 and Comparative Budget FY 2017-18
Electric Utility Enterprise Fund
Cash Balance
Beginning Cash Balance 16,582,191 24,278,513 22,327,219 30,501,095 29,951,255
Estimated
2015-16 2016-17 2017-18 2017-18 2018-19
Actuals Actuals Budget Actuals Budget
Revenues 76,230,734 70,840,461 73,996,630 73,692,530 73,615,090
Expenditures 68,534,412 64,617,879 75,393,812 74,242,370 75,129,490
Net Difference (Revenues Less Expenditures) 7,696,322 6,222,582 (1,397,182) (549,840) (1,514,400)
Cash Balance
Ending Cash Balance 24,278,513 30,501,095 20,930,037 29,951,255 28,436,855
Fund Balance as a percentage of expenses: 35% 47% 28% 40% 38%
Electric Utility Highlights
• Revenues are lower,
— Elimination of solar surcharge
— Less work preformed for others due to City wide
capital plan for FY 18/19
• Expenses are lower due to lower forecasted
power costs
— PERS cost continue to increase driving up salary and
benefits
• Reserve is projected to end the year at 120% of
target (90 days operating cash)
Electric Utility Capital Projects
• Vehicles - $264,000
• Underground system improvements - $1,100,000
• Facility improvements - $1,035,000
• Distribution capacity program - $960,000
• Industrial SF6 circuit breaker replace - $525,000
• New development infrastructure - $100,000
• Overhead system improvements - $100,000
• LED streetlight retrofit - $90,000
• Streetlight maintenance - $90,000
• 230kV interconnection project - $60,000
Water Utility Overview
Estimated Changes in Fund Balance
For the Fiscal Year Ended June 30, 2019
With Estimated Actuals for FY 2015-16 and FY 2016-17 and Comparative Budget FY 2017-18
Water Utility Enterprise Fund
Cash Balance
Beginning Cash Balance
Estimated
2015-16 2016-17 2017-18 2017-18 2018-19
Actuals Actuals Budget Actuals Budget
6,755,522 5,567,984 3,732,376 4,902,165 4,611,635
Revenues 13,760,559 13,818,330 14,722,520 14,458,430 14,448,540
Expenditures 14,948,097 14,484,149 21,799,725 14,748,960 13,500,210
Net Difference (Revenues Less Expenditures) (1,187,538) (665,819) (7,077,205) (290,530) 948,330
Cash Balance
Ending Cash Balance 5,567,984 4,902,165 (3,344,829) 4,611,635 5,559,965
Fund Balance as a percentage of expenses: 37% 34% -15% 31% 41%
Water Utility Highlights
• Revenues are slightly lower than current year
estimate
• Expenses are lower in FY 18/19 due to
extension of the water meter program
— PERS costs continue to rise
• Reserve target is 25% of operating expenses
— Year end projections is 203% of target
Water Utility Capital Projects
• Vehicles - $120,000
• Water meter phase 8 - $1.5m
• Wells/water taps - $440,000
• Facility improvements - $235,000
• PCE/TCE activities: $275,000
Wastewater Utility Overview
Estimated Changes in Fund Balance
For the Fiscal Year Ended June 30, 2019
With Estimated Actuals for FY 2015-16 and FY 2016-17 and Comparative Budget FY 2017-18
Wastewater Utility Enterprise Fund
Cash Balance
Beginning Cash Balance
Estimated
2015-16 2016-17 2017-18 2017-18 2018-19
Actuals Actuals Budget Actuals Budget
13,853,935 17,462,307 8,587,775 19,473,784 20,601,484
Revenues 16,939,087 16,940,258 18,950,180 16,970,750 19,820,600
Expenditures 13,330,715 14,928,781 19,195,084 15,843,050 19,541,930
Net Difference (Revenues Less Expenditures) 3,608,372
Cash Balance
2,011,477 (244,904)
1,127,700 278,670
Ending Cash Balance 17,462,307 19,473,784 8,342,871 20,601,484 20,880,154
Fund Balance as a percentage of expenses:
131% 130% 43% 130% 107%
Wastewater Highlights
• Substantial grant revenues programmed for
improvements to the pond at White Slough
drive revenue and expense increases
• Reserve target is 25% of operating expenses
• Target for FY 2018/19 equals $3,117,980
• FY 2018/19 estimated reserve is $20,880,154
—Substantial projects planned for FY 2020 and
beyond will significantly impact this reserve lev
Wastewater Utility Capital Projects
• Vehicles - $135,000
• Storage pond expansion - $4m
• Electrical upgrades/SCADA - $1.2m
• Upgrade blowers - $750,000
• Relocations, pump/equipment/facility upgrades -
$555,000
• Main #7 replacement - $200,000
• Collection system enhancement - $20,000
Field #5 road repair - $150,000
Northeast sewer lift station pipe replacement - $60,000
POSITION CHANGES
Position Changes
• Net Reduction of three full time positions
Classification
Department
Change
Fund
C ait (Savi n ys}
Neighborhood Services
Manager
Community Dev.
Eliminate
280
($163,054)
Battalion Chief
Fire
Eliminate
100
($232,148)
Budget Manager
Internal Services
Re -class
100
$13,807
Program Coordinator
FRCS
Re -class
.200
($10,25g)
Engineering Aide
Water Services
Eliminate
560
($83,877)
Water Services Technician
Water Services
Add
560
$77,886
TOTAL
$406,84-5
QUESTIONS?
Consideration for Adoption
• Staff recommends Council adopt the Fiscal
Year 2018-19 budget and financial plan as
presented