HomeMy WebLinkAboutMinutes - May 14, 2019 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, MAY 14, 2019
The Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council of Tuesday,
May 14, 2019, was cancelled due to lack of a quorum. An informal presentation was made on the
topic - Receive Presentation Regarding Fiscal Year 2019/20 General Fund and Measure L
Budget and Five -Year General Fund and Measure L Forecast - with background materials and
PowerPoint presentation on file in the City Clerk's Office.
ATTEST:
Jennifer M. Ferraiolo
City Clerk
1
TM
CITY OF LODI
COUNCIL COMMUNICATION
AGENDA ITEM
AGENDA TITLE: Receive Presentation Regarding Fiscal Year 2019/20 General Fund and Measure
L Budget and the Five -Year General Fund and Measure L Forecast
MEETING DATE: May 14, 2019
PREPARED BY: Andrew Keys, Deputy City Manager
RECOMMENDED ACTION:
Receive presentation regarding Fiscal Year 2019/20 General Fund
and Measure L Budget and the five-year General Fund and
Measure L forecast.
BACKGROUND INFORMATION: Staff has planned a series of presentation to provide the Council
and public an opportunity to review and comment on basic
assumptions within the FY 2019/20 budget to be proposed to
Council later this month. The budget will be released and made available for public review at City Hall
review at City Hall, the Library and online once the draft is finalized. This session is designed to provide
information on the general economic circumstances facing City staff and Council in allocating resources
to most effectively deliver services, with particular focus on the General Fund and Measure L.
Included in the presentation will be discussion of Fiscal year 2019/20 Measure L and General Fund
expenditures and the Measure L and General Fund five-year forecast. The forecast is a critical planning
tool for staff and Council to use to anticipate future resource or service level adjustments. The forecast
presented will include a baseline scenario that keeps normal operations with no change in service levels.
Future Council budget presentations will focus on other aspects of the City's budget beyond the General
Fund and Measure L. The first opportunity for the City Council to adopt the Fiscal Year 2019/20 budget
will be at its regular meeting on June 5, 2019.
FISCAL IMPACT: There is no impact from this informational presentation.
FUNDING AVAILABLE: The draft General Fund and Measure L budgets for Fiscal Year 2019/20 is
projected at $59,605,690 in revenues and $59,328,360 in expenditures.
Andrew Keys, Deputy City Manager
APPROVED:
Stephen Sch abauer, City Manager
Fiscal Year 2019/20 Budget
General Fund Forecast
Presented by Andrew Key, Deputy City Manager
• Fiscal Year 2019/20
- Assumptions
- Revenues
- Expenses by Department
- Expenses by Type
• Key Inputs
• Five Year Forecast
- Assumptions
- Projection
- Risks/Known Challenges
- Opportunities
FY 2019/20 Revenues
$59,605,690
2.7%
3.4%
8.1111111111
7%
9.
496
11111111111111111.0
101
■ Sales Tax - $12,922,370
■ Property Tax - 11,430,730
■ Lodi Electric Pilot - $7,273,890
■ Cost of Services - $5,155,010
■ Property Tax In -Lieu - $5,574,000
■ Measure L - $5,200,000
■ Franchise Fees - $2,023,000
■ Rent & Investments - 1,580,000
■ All Other Revenue - $7,435,690
Revenue Trends
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
f
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
YE Est Proj
—0—Property Tax - 35% Growth
—0—Sales Tax - 88% Growth
- Measure L
f Prpoerty Tax In lieu -27% Growth
Revenue Trends
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
YE Est Proj
—0—Business Tax - 54% Growth
TGT - 162% Growth
019-20 Expenses
59,605,690
General Fund Expenditures by Function
■ Police - $24,066,860
■ Fire - $14,218,300
■ Internal Services - $5,146,260
■ Parks, Rec. & Cultural Srvs -
$4,925,550
■ Gov't & Admin - $3,522,410
■ Public Works - $2,719,280
■ Library - $1,546,840
■ Other/Misc. - $2,183,100
■ Debt - $999,760
FY 2019-20 Expenses
$59,605,690
General Fund Expenditures by Type
■ Salaries - $23,788,520
■ PERS Normal Costs $2,538,820
■ PERS UAL - $6,509,700 *
■ Other Benefits - $6,530,160
■ Supplies & Services - $8,053,150
■ Insurances - $1,044,670
■ Operating Transfer Out -
$9,888,640
■ Capital Projects - $974,700
* General Fund represents 71% of the city-wide UAL costs. UAL Represents
12% of all General Fund expenses when Measure L is removed.
- 0 Measure L Expenses
$5,200,00
Measure L Expenditures by Function
2%
■ Police - $2,095,810
■ Fire - $1,885,070
■ Parks Capital - $843,700
■ Reserve - $277,330
■ Library - $98,090
0 Measure L Expenses
$5,200,00
Measure L Expenditures by Type
■ Salaries - $2,417,410
■ PERS Normal Costs $203,160
PERS UAL - $0
■ Other Benefits - $685,380
■ Supplies & Services -
$ 570,180
■ Insurances - $82,840
■ Capital Projects - $963,700
■ Reserve - $277,330
• 3 new position recommendations:
- Associate Engineer $130,970
- Facilities Superintendent $124,220
- Librarian $98,080 (Measure L funded)
• Police: $236,000 to Vehicle Replacement
$100,000 to Equipment Replacement
• Fire: $570,000 to Vehicle Replacement
$170,000 to Equipment Replacement
• Continued $1.3m MOE to Measure K
• $435,000 Capital Contribution
• Revenues: $5,200,000
• Expenditures: $4,922,670
• Reserves: $277,330
• Measure L Position Funding:
Measure L Funded Approved Requested Moved Moved to Total for
Positions Mid Year FY 2019/20 from GF GF FY 2019/20 Cost:
Police Officers
Firefighters
Fire Battalion Chief
Librarian
Total
6
0 4 0 10 $1,296,360
3 0 5 0 8 $840,000
1 0 0 1 0 $0
0 1 0 0 1 $98,080
10 1 9 1 19 $2,234,440
• Supplies, Materials and Capital
- Police Equipment $523,430
- Two Police Patrol Vehicles $120,000
- Parks Tree Maintenance and Playground Replacements
$843,700
Vehicle Replacement Fund
Vehicle Replacement
Funds
Comm. Dev
Fire Dept.
Police Dept.
PRCS
PW -GF
Grand Total
FY 17/18
End Fund
Balance
FY 18/19
Est Rev
FY 18/19
Est Exp
FY 18/19 YE
Est Fund Bal
FY 19/20
Proj Rev
FY 19/20
Proj Exp
FY 19/20
Proj Fund
Bal
Fund
Target*
Over/(Under)
Target
$63,694 $21,000
$0 $84,694 $0 $0 $84,694 $57,953
$434,229 $250,000
$0 $684,229 $570,000 $870,000 $384,229 $2,701,445 ($2,317,216)
$899,870 $127,166 $240,700 $786,336 $236,000 $279,000 $743,336 $1,667,504 ($924,168)
$401,482 $61,700 $55,000 $408,182 $68,300 $224,000 $252,482 $998,061 ($745,579)
$97,739 $25,000 $23,572
$99,167 $0 $0 $99,167 $222,156 ($122,989)
$1,897,014 $484,866 $319,272 $2,062,608 $874,300 $1,373,000 $1,563,908 $5,647,119 ($4,083,211)
*Fund Target is the straight line depreciation value of vehicle stock that should be set aside for future replacements using Fleet
Services estimated useful life expectancies by vehicle type.
Vehicle
Replacement
Funds
Comm. Dev
Fire Dept.
Police Dept.
PRCS
PW -GF
Grand Total
FY 19/20 Straight
Line Depreciation
Requirement
FY 2019/20
Recommended
Funding
Annual Funding
Surplus/(Shortage)
=1117,5%iii
•
$0
$182,711
$570,000
$387,289
$210,820
$236, 000
$25,180
$48,681
$68, 300
$19,619
$13,689
$0 ($13,689)
$462,499
$874,300
$411,801
5 Year Foreca
Summary
• Base case operations are sustainable
• Does not address labor negotiations
• No new positions beyond what's recommended in FY 20
• Status quo services
• Opportunity exists in Pension funding policies, PERS
"fresh start", debt refinancing and new
development
• Risks abound in PERS earnings,
maintaining/enhancing competitiveness in labor
market and service model sustainability
5 Year Forecast - Assumptions
Revenue Category FY 19120 B FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Property Taxes - Secured
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
Transfers In
Property Taxes - CFD
Measure L
4.0% 31* 31* 31* 31% 31%
3.5% 2.0% 2.0% 2.0% 2.0% 2.0%
2.8% 1.5% 1.7% 2.0% 2.0% 2.0%
5.0% 2.0% 2.0% 2.0% 2.0% 2.0%
1.1% 0.5% 0.5% 0.5% 0.5% 0.5%
- 8.0% 0.0% 0.0% 0.0% 0.0% 0.0%
- 1.3% 0.0% 0.0% 0.0% 0.0% 0.0%
0.3% 2.0% 2.0% 2.0% 2.0% 2.0%
- 51% 1.0% 1.0% 1.0% 1.0% 1.0%
4.0% 31% 31% 31% 31% 31%
- 1.4% 0.0% 0.0% 0.0% 0.0% 0.0%
- 7.7% 1.5% 1.5% 1.5% 1.5% 1.5%
23.4% 12% 12% 12% 12% 12%
99% 42% 31% 31% 15% 14%
N/A 1.5% 1.7% 2.0% 2.0% 2.0%
Expense Category FY 19/20 B FY 20/21 FY 21/22 FY 22/23 FY 23124 FY 24/25
Salaries [1]
PERS Normal Cost [1] [2]
PERS UAL [2]
Other Benefits [1] [3]
Operations
Debt [4]
Transfers
11.8% 1.0%
- 32% 11.5%
222% 112%
17.3% 2.5%
27.5% 2.0%
- 02% -0.3%
- 6.9% 0.5%
1.3%
1.3%
11.3%
2.5%
2.0%
-8.5%
0.5%
1.1 %
1.1%
8.6%
2.5%
2.0%
-0.4%
0.5%
0.8%
0.8%
4.8%
2.5%
2.0%
0.0%
0.5%
0.0%
0.0%
41%
2.5%
2.0%
-02%
0.5%
5 Year Forecast - Assumptions
• FY 19/20 based on current labor agreements
• New positions from 18/19 adopted budget:
• Mid Year Approvals: 6 Police Officers, 3 Firefighters, 1
Battalion Chief, 1 Risk Technician, 1 Confidential Admin.
Secretary
• Recommended: 1 Facilities Superintendent and 1
Assistant Civil Engineer
• Growth in PERS outpaces salaries due to final
discount rate drop and phase in of all three
discount rate drops
• Debt Service based on existing debt structure
5 Year Forecast - Revenue
Revenue
FY 18/19 E FY 19124 B FY 20/21 FY 21122 FY 2123 FY 23/24 FY 24125
Property Taxes - Secured
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
Transfer In
Property Taxes - CFD
Measure L
10,484,000
458,820
12,573,120
4,863,560
7,197,380
88,530
1,418,650
1,647,830
457,400
5,360,000
646,200
1,629,810
4,994,780
139,414
0
10,903,360
474,840
12.922,370
5.108,000
7,273,890
81,450
1,400,500
1,662,000
431,380
5,574,000
636,990
1,503,530
6,166,010
277,370
5,200,000
11,301,000
485,000
13,117,000
5,2:11,000
7,311,000
82,000
1,401,000
1,686,000
436,000
5,574,000
637,000
1,527,000
6,241,000
393,324
5,278,000
11,726,000
495,000
13,340,000
5,238,000
7,348,000
82,000
1,401,000
1,720,000
441,000
5,574,000
637,000
1,550,000
6,316,000
513,806
5,368,000
12,160,000
505,000
13,607,000
5,265,000
7.385,000
82,000
1,401,000
1,755,000
446,000
5,574,000
637,000
1,574,000
6,392,000
672,451
5,476,000
12,610,000
516,000
13,880,000
5,292,000
7,422,000
82,000
1,401,000
1,791,000
451,000
5,574,000
637,000
1,598,000
6,469,000
773,774
5,586,000
13,071,000
527,000
14,158,000
5,319,000
7,460,000
82,000
1,401,000
1,827,000
456,000
5,574,000
637,000
1,622,000
6,547,000
878,880
5,698,000
Total Revenue
51,959,494 59,605,690 60,686,324 61,149,806 62,931,451 64,082,114 65,263,880
Revenue Growth
3.86
14.8% 2.0%
1.9% 2.1% 2.n 6 2.0%
5 Year Forecast - Expenses
Expense Category
FY 18/19 E FY 19/20 B FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Salaries
PERS Normal Cost
PERS UAL
Other Benefits
Operations
Debt
Transfers
Measure L Capital
Measure L Fund Balancer]
Pension Stabilization (PARS)
21,269,350 23,788,720 24,037,000 24,359,000 24,621,000 24,810,000 24,820,000
2,622,630 2,538,830 2,832,000 2,870,000 2,901;000 2,924,000 2,926,000
5,329;040 6;509;700 7,239,320 8,055;600 8,745;520 9,167,880 9,597,960
6;881;700 8;073;630 8,276,000 8,483;000 8;696;000 8;914;000 9;137;000
11,010,580 14,036,500 14,318,000 14,605,000 14,898,000 15,196,000 15,500,000
1,101;430 1,098,940 1;095,330 1,002,560 998,250 998;480 996;150
2,618;670 2,438,340 2;451;000 2;464;000 2;477;000 2;490;000 2,503;000
843,697 155;674 - - - -
277,333 282;000 287:000 - - -
168.370
Total Expenditure
51,001,770 59,605,690 60,686,324 62,126,160 63,336,770 64,500,360 65,480,110
Expenditure Growth
7.8% 16.9%
1.8%
2.4%
1.9%
1.8%
1.5%
Revenue - Expenditure
957,724 (376,354) (405,319) (417,586) (216,230)
Total Fund Balance
19,54
79 19,606,360 19,188,774 18,972,545
5 Year Forecast— Fund Balance
Cat• ,0
FY 18/19 FY 19/20 FY 20121 FY 21/22 FY 22/23 FY 23/24 FY 24/25
Catastrophic Reserve [2] 4.142.833 4,352,455 4,432,666 4,510,544 4,596,436 4,679,742 4,765,270
Economic Reserve [2] 4.142.833 4,352,455 4,432,666 4,510,544 4,596,436 4,679,742 4,765,270
Measure L Catastrophic Reserve [3] 277,333 422,240 429,440 438,080 446,880 455,840
Measure L Economic Reserve [3] 137,093 416,893 438,080 446,880 455,840
Pension Stabilization Fund [4] 10,916,864 10,485,620 10,313,198 9,769,087 9,150,158 8,536,360 8,119,154
DIVCA. 339,170 351,170 363,170 375,170 387,170 399,170 411,170
Available Resources
19,541,700 19,819,033 20,101,033 20,011,679 19,606,360 19,188,774 18,972,545
General Fund Fund Balance %
16.0% 16.0% 16.0% 16.0% 16.0% 16.0% 16.0%
5 Year Forecast — PSF
Renison Stabilization Fund
Beginning Balance
8,787,132 10,916,864 10,485,620 10,313,198 9,769,087 9,150,158 8,536,360
Earnings
(Draws)/Additions
549,196 682,304 655,351 644,575 610;568 571;885 533.523
1,580,536 (1,113,548) (827,773) (1,188,686) (1,229;496) (1;185;683) (950,729)
Ending Balance
10,916,864 10,485,620 10,313,198 9,769,087 9,150,158 8,536,360 8,119,154
Questions?
DECLARATION OF POSTING
On Wednesday, May 8, 2019, in the City of Lodi, San Joaquin County, California,
a copy of the May 14, 2019, Shirtsleeve Session agenda and May 15, 2019,
Regular City Council agenda (attached and marked as Exhibit A) were posted at
1311 Midvale Road, Lodi, California.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on May 13, 2019, at Lodi, California.
Posted by:
Jen 1E r M. Ferraiolo
ORDERED BY:
JENNIFER M. FERRAIOLO
CITY CLERK
/1
(Date)
DECLARATION OF POSTING
On Wednesday, May 8, 2019, in the City of Lodi, San Joaquin County, California,
a copy of the May 14, 2019 Shirtsleeve Session agenda and May 15, 2019
Regular Meeting agenda (attached and marked as Exhibit A) were posted on the
door of Room No. 50 of Fairmont Rehabilitation Hospital, 960 South Fairmont
Avenue, Lodi, California.
I declare under penalty of perjury that the foregoing is true and correct.
Executed on May 8, 2019, at Lodi, California.
den \och4+i.er
(Print nape here)
Fairmont Rehabilitation Hospital
(Person who posted the agenda)
ORDERED BY:
JENNIFER M. FERRAIOLO
CITY CLERK
bill9
(Date)
LODI CITY COUNCIL
Carnegie Forum
305 West Pine Street, Lodi
*and via conference call.
1311 Midvale Road
Lodi, CA 95240
Fairmont Rehab Hospital
960 S. Fairmont Avenue
Lodi, CA 95240
"SHIRTSLEEVE" SESSION
Date: May 14, 2019
Time: 7:00 a.m.
1
For information regarding this Agenda please contact:
Jennifer M. Ferraiolo
City Clerk
Telephone: (209) 333-6702
EX! -!IBI? �1
Informal Informational Meeting
A. Roll Call by City Clerk
B. Topic(s)
B-1 Receive Presentation Regarding Fiscal Year 2019/20 General Fund and Measure L Budget
and Five -Year General Fund and Measure L Forecast (CM)
C. Comments by Public on Non -Agenda Items
D. Adjournment
Pursuant to Section 54954.2(a) of the Government Code of the State of California, this agenda was
posted at least 72 hours in advance of the scheduled meeting at a public place freely accessible to the
public 24 hours a day.
111 (Te.f_Aa-GA
J iter M. 1'raiolo
C' Clerk
All staff reports or other written documentation relating to each item of business referred to on the agenda are on file
in the Office of the City Clerk, located at 221 W. Pine Street, Lodi, and are available for public inspection. If
requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as
required by Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132), and the federal rules
and regulations adopted in implementation thereof. To make a request for disability -related modification or
accommodation contact the City Clerk's Office as soon as possible and at least 72 hours prior to the meeting date.
Language interpreter requests must be received at least 72 hours in advance of the meeting to help ensure
availability. Contact Jennifer M. Ferraiolo at (209) 333-6702. Solicitudes de interpretacibn de idiomas deben ser
recibidas por to menos con 72 horas de anticipacibn a la reunion para ayudar a asegurar la disponibilidad. Llame a
Jennifer M. Ferraiolo (209) 333-6702.
1
J: \C I TYC L R K\AGENDA\S H I RTS L V\S H RT S LV. D O C