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Home My WebLink AboutAgenda Report - June 5, 2019 H-01AGENDA ITEM H-l Cmv or Lonr CouNcrr ConnMUNIcATIoN ÏM AGENDA TITLE: MEETING DATE: PREPARED BY: Adopt Resolution Approving the Fiscal Year 2Q19l20 Financial Plan and Budget and Approving the Fiscal Year 2019/20 Appropriation Spending Limit June 5,2019 Deputy City Manager/lnternal Services Director RECOMMENDED ACTION Adopt resolution approving the Fiscal Year 2019/20 Financial Plan and Budget and approving the Fiscal Year 2019/20 Appropriation Spending Limit BACKGROUN D INFORMATION Staff presented information to Council regarding the FY 2019120 budget at the Shirtsleeve meetings held on May 14 and May 21, 2019. Staff published the budget document on May 21,2019. The full proposed budget document is available on the City's webpage at http://www. lod i. govlArch ive. aspx?AM I D=4 1 The Budget presented to Council this evening is consistent with the draft released on May 21 and the information presented at the Shirtsleeve meetings. The General Fund for FY 2019120 is presented with revenues of $59,605,690 and expenditures of $59,328,360. The excess $277,300 is earmarked as year one of a three year allocation to bring Measure L reserves to the 16% reserve level called for in the City's Budget and Fiscal Policy. The June 30, 2020 fund balance is projected to be $11,499,780. The budget proposes 407 'îull time employees, a net increase of five from FY 19. The recommended changes are shown in the table below: Classification Department Cost Neighborhood Services Manager Community Dev $1 67,1 50 Customer Service Representative I nternal Services Department $77,175 AssistanVAssociate Civil Engineer Public Works - Engineering $130,970 Facility Superi ntendent Public Works - Facilities $124,220 Librarian l/ll Library $98,080 Significant capital project included in the budget are: . Electric Utility ($6.5 million) APPROVED Stephen S , City Manager a Facility renovation; McLane Substation renovation;12kV overhead/underground maintenance; 230kV interconnection; 1 267 feeder extension Water Utility ($8.3 million)o Water meter phase 8; granular activated carbon well projects; water meter shop construction; water taps/main replacements; PCE/TCE program. Wastewater Utility ($3.3 million)o Main replacement #8; upgrade blowers; wastewater taps/relocations; collection system enhancement. Street Maintenance ($+.S million)o Church Street diet; Lockeford Street reconstruction; GuildA/ictor traffic signal; bike detection improvement; pavement maintenance; sidewalk maintenance. a a A resolution adopting the Financial Plan and Budget is attached. lncluded in the budget resolution is the adoption of the Appropriation Spending Limit for the 2019120 fiscal year. This limit represents the maximum spending authority for the City based upon population and inflation changes over the last year The 2019/20 Appropriation Limit is $1 1 1 ,801 ,873, an increase of $6,048,361 from the prior year. Details of the calculation are included in Attachment A. FISCAL IMPACT:The 2019/20 budget provides an expenditure plan for all funds. The All-Funds expenditure budget is project to be $220 ,667 ,170, an increase of $770,155 from the current revised FY 18119 budget. General Fund revenues are projected at $59,605,690 and expenditures at $59,328,360. Andrew Keys, Deputy Manager Attachments cc: City Attorney AGENDA ¡TEM t{-l Clrv or Lou C ouxcrr, C ovTMUNICATIoN TM AGENDA TITLE: MEETING DATE: PREPARED BY: Adopt Resolution Approving the Fiscal Year 2019/20 Financial Plan and Budget and Approving the Fiscal Year 2019/20 Appropriation Spending Limit June 5,2019 Deputy City Manager/lnternal Services Director RECOMMENDED ACTION Adopt resolution approving the Fiscal Year 2019/20 Financial Plan and Budget and approving the Fiscal Year 2019/20 Appropriation Spending Limit BACKGROUND INFORMATION: On May 1, 2019, City Council adopted resolution 2019-70 accepting the San Joaquin Continuum of Care Homeless Emergency Aid Program (HEAP) grant and further appropriated funds in the amount of $1,250,000. The timing of the draft budget document excluded this project from budget appropriations for FY 2019120. Staff desires to include this project in the FY 2019120 Financial Plan and Budget so as not to delay any progress. Attached are the updated Capital lmprovement Program summary and the project details sheet. All other necessary changes to the budget document effected by this change will be updated prior to publishing the final document. FISCAL IMPACT The 2019/20 budget provides an expenditure plan for all funds. The All-Funds expenditure budget is project to be $221 ,917,170, an increase of $2,020,155 from the current revised FY 18119 budget. General Fund revenues are projected at $59,605,690 and expenditures at $59,328,360. Andrew Keys, Deputy City Manager Attachments cc: City Attorney APPROVED: auer, City Manager BLUE SHEET City of Lodi Annual Budget FY 2019-2020 FY 2019 Capital lmprovement Plan Project Title:Homeless Emergency Aid Program (HEAP)#84 Section I Description ProjectLengthi os/o!/rs-06/30/2r High Purchase of land for the purpose of building liny homes to assist the homeless community transitioning into mainstream society in conjuction with the Housing Authority of the County of San Joaquin T he City 0f Lodl is experiencing a cr¡sis with its homeless population. Or,er the last few years, the City has seen an increase in the num ber of sheltered and Manyof those ¡n temporaryshelters have diffìcultyfìnding affordable and safe permanent housinqunsheltered homeless individuals. Addltlonal lnformation , along with input from the town hall meeting and serreral homeless service providers, potential projects thatwould assist Lodi's homeless uidelines. The Committee recommended thatthe Citypursue a tiny-homes permanentsupportive ho the San Joaquin Continum of Care announced HEAP notice of ng prorcment Com m ittee mem bers reviewed and population while fitting within the il $$$ FY19/20 ) FY20n1 FY 21n2 Budget lGapital Costs FY FY $ $1,250,000 ,000,250 ilt of Flnancing $ Total 1,250,000 Pr¡or Yearg FY 23n4 1,250,000 FY $ FY $ $ ding rce(s) $ 1,250,000 Total Project Financing CommmunityDe\¡elof ' FY 18/19 Budget Section lV Operatlng Bud $$ (savings) Pe¡sonnel Other Operat¡ng Costs or Prior Years FY19n0 FY23n4 Totel $ i-*- Operating lmpact $ $ FY 18fi9 Budget City ot t orli Annual Budgel tY )o19 .)r,)) (') ThebelowsummarizestheCity'sCapitallmprovementProject(ClP)programfortY2OIgl20. Projectsare organizedbyFundTypeandarenumbered for easy reference on the detail sheets that follow this summary. The five-year CIP program is a work in progress and will continually be updated in future budget years. Capital Outlay Fund - Funds 402 - 439; Measure L 103 Fund # Fund # Proiect Title Pr¡or Years tY 18/L9 tY L9/2O Fy 2O/2t tY 27/22 FY 22123 FY 23/24 Totals 3 4 5 6 6 7 8 9 10 T7 T2 1J 13 74 15 16 18 18 19 20 21 22 23 434 Arts Projects 103 Playground Replacements 103 Park Tree Trimming 205 Blakely Sports F¡elds 432 Blakely Sports Fields 431 Animal Shltr Kennels 431 Carnegie Basement 431 Civic Center Cameras 431 Fire Stat¡on #1 Kitchen 431 Fire Station #2 Cameras 431 HSS Energy Mgmt 431 HSS Roof Phase 1 432 HSS Roof Phase 1 431 Police HVAC replacement 431 Police lntercom Repl 437 DeBenedetti Park Devel 205 Lodi Lake Erosion 103 Lodi Lake Erosion 402 Network lnfrastructure 103 Lodi Lake Southshore 205 Lodi Lake Nature Area 103 HSS Pool Climate Control 103 Park Restrooms Demo Totals 402 lnformation Systems Repl 431 GF Capital lmp 432 Parks Capital lmp 434 Arts ln Public Places IMF 437 Parks IMF Totals streets - Funds 300 - 312 Fund å Proiect Title 44,000 763,700 80,000 882,340 30,000 s0,000 20,000 82,000 6,000 10,000 180,000 100,000 278,500 20,000 40,000 2,O70,000 72I,500 4s0,000 3s,000 s,000 920,000 80,000 30,000 160,000 1,000,000 862,s00 80,000 100,000 160,000 1,150,000 209,s30 44,O00 2,s46,200 400,000 882,340 60,000 s0,000 20,000 82,000 6,000 10,000 180,000 360,000 160,000 20,000 40,000 4,945,O00 1,000,000 1,000,000 450,000 1,150,000 249,530 373,750 488,750 80,000 80,000 2,875,000 373,750 488,750 313,500 5,554,540 2,190,000 2,562,030 3,817,500 80,000 74,577,570 Capital Outlay/Meausre L Summary 103 Measure L 205 Parks State Grants 313,500 843,700 1,608,840 450,000 s08,000 30,000 44,000 2.070.000 2,000,000 160,000 30,000 2,092,500 209,530 100,000 160,000 942,500 80,000 2,875,000 5,958,700 2,737,870 450,000 768,000 220,000 44,OOO 4,94s,000 313,500 5.554,540 2,190,000 2þ62,030 3,817,500 80,000 74,5!7,570 #PriorYears F\ 78/t9 FY 79/20 FY 20/2I FY 2t/22 FY 22/23 Fy 23/24 Totals 26 26 27 27 28 29 30 31 a1 33 34 35 36 37 38 38 39 40 4T 307 Lockefore Street Reconst 302 Lockefore Street Reconst 312 Lower Sac Median Rep 300 Lower Sac Median Rep 305 Pavement Maint 303 Streets Project Plânning 303 Reverse Frontage Wall rep 308 Guild/Victor traffic signal 305 Annual Street Striping 304 Pavement Repair 303 Sidewalk Grinding 303 Sidewalk Repair 303 Signal Preventative Maint 303 Church St Diet 309 Bike Detection lmp 305 Bike Detection lmp 303 Bike Lane lmp 305 Pavement Crack Seal 300 Grapestake Fence Rep 36,000 497,400 10,000 50,000 50,000 100,000 25,000 25,000 764,000 80,000 220,000 100,000 70,000 90,000 t,622,750 447,OO0 118,000 76,000 s0,000 50,000 497,400 10,000 s0,000 50,000 100,000 25,000 25,000 800,000 80,000 220,000 100,000 70,000 90,000 1,622,1s0 447,O00 118,000 76,000 s0,000 s0,000 City of Lodi Annual Budget FY 2019-2020 42 300 Downtown Concrete Cln Totals 20.000 20,000 36,000 4.464.550 4,500.550 Street Fund Summary 300 Streets 302 - Gas Tax 2103 303-MeasureKFund 304 - Gas Tax 2031 305-TDA-Streets 307- Federal Streets 308 - IMF Regional Streets 309 - State Bikelane Fund 312 - Fence & Landscape Maintenance 36,000 120,000 10,000 2,008,1s0 220,000 348,000 497,400 764,000 447,000 50,000 10,000 2,008,150 220,O00 348,000 497,400 800,000 447,000 50.000 Totals TDA - Fund 330-331 # Fund å Proiect Title 36,000 4.464.550 4,380,550 PriorYears tY 18/79 FY I9/2O tY 20/27 F\ 2t/22 FY 22/23 FY 23/24 Totals 35 331 Sidewalk Repair Totals 30,000 30,000 30,000 30,000 CDBG - Fund 350 # Fund # Project T¡tle Pr¡orYeârs FY t8/t9 FY 79/20 FY 20/27 FY 2t/22 FY 22/23 tY 23/24 Totals 25 84 350 FY 20 Program 350 Homeless Emerg Aid Prgm Totals 1,650,000 1.250.000 1,650,000 1.250,000 2.900,000 2,900,000 Electric Utility - Funds 501-508 # Fund # Proiect Title Prior Years FY 18/19 FY 79/20 F\ 20/2t FY 21122 FY 22/23 tY 23/24 Totals 43 44 45 4b 47 48 49 50 51 52 53 54 55 56 57 58 501 12KV Overhead 501 12kV Underground 501 Streetl¡ght Maint 501 Work for Others 501 230kV lnterconnection 50t t267 Feeder Ext 501 LEU Fac¡lity Reno 505 Henning Getaway 501 Henning Substation Reno 501 LEU Security lmp 501 Mclane Feeder 1220 501 McLane Substat¡on Reno 501 LEU Operatinos Vid Wall 501 SF6 Breaker Replac 501 Killelea Bank 2 Power 501 LED Streetlight lmp Totals 150,000 300,000 1,400,000 1,579,685 90,000 250,000 86,266 9,7t3 100,000 1,100,000 90,000 100,000 60,000 300,000 1,100,000 50,000 350,000 s00,000 600,000 2,000,000 300,000 1,100,000 50,000 350,000 35,000 800,000 120,000 800,000 250,000 300,000 1,100,000 50,000 550,000 19,200,000 300,000 1,100,000 50,000 550,000 10,800,000 300,000 1,100,000 50,000 550,000 1,400,000 375,000 1,600,000 6,600,000 340,000 2,450,000 30,646,266 600,000 2,759,773 1,100,000 1,400,000 105,000 7,425,000 1,700,000 120,000 675,000 800,000 2,669,685 35,000 62s,000 1,100,000 35,000 300,000 250,000250,000 t,675,664 1,990,000 6.5s0.000 3.80s.000 22,IL0,OOO 14,485,000 3,775,000 54,390,664 Wastewater Funds - 531-559 # Fund # Proiect Title Prior Years FY 18/19 F\ 79120 tY 2O/2I FY 2t/22 FY 22/23 FY 23/24 Totals 26 59 60 6L 62 63 64 65 66 531 Lockeford Street Reconst 531 Upgade Blowers 531 W.S. Main Bld Rollup Door 531 W.S. Control Rm Roof Rep 531 WW Taps/Relocation 531 Main Replacement #8 531 Lincoln Storm Pump Rehab 531 Collection Sys Enhance 531 Misc Projects Totals 20,680 750,000 18,000 50,000 75,000 2,600,000 75,000 200,000 100,000 20,680 750,000 18,000 s0,000 75,000 2,600,000 75,000 200,000 100,000 3.888.680 3,888,680 Clty of Lodi Annual Budgel F\ )OI9 )O70 Water Funds - 561-599 # Fund # Project T¡tle PriorYears FY 78/tg tY t9/20 FY 20/21 tY 27/22 tY 22/23 FY 23/24 Totals 26 67 68 69 70 71 72 73 74 75 76 76 76 76 76 77 77 77 77 561 Lockefore Street Reconst 561 Granular Act Carbon 561 Water Meter Shop 561 WaterTaps/Main Repl 561 Well#28 GAC Sys Design 561 Well#27 GAC Sys Proj 561 Well #22 Rehab 561 Well #7 Elect Upgrade 561 Water Meter Phase 8 590 PCEÆCE Sys Decommish 565 PCE/TCE Oversight 590 PCEÆCE Oversight 591 PCE/|CE Oversight 593 PCEÆCE Oversight 594 PCEITCE Oversight 590 Plume Groudwater Monit 591 Plume Groudwater Monit 593 Plume Groudwater Monit 594 Plume Groudwater Monìt Totals Water Fund Summary 56l-Water Capitol Outlay 565-PCE Rate Abatement 590-Central Plume 591-Southern Plums 593-Nothern Plume 594-South Central Western Totals 48,250 300,000 200,000 125,000 80,000 820,000 166,000 175,000 5,980,000 220,000 60,000 10,000 10,000 10,000 10,000 25,000 2s,000 25,000 25.000 48,250 300,000 200,000 125,000 80,000 820,000 166,000 175,000 s,980,000 220,000 60,000 10,000 10,000 10,000 10,000 25,000 25,000 25,000 2s,000 8,3t4,250 8,3L4,250 7,894,250 60,000 255,000 35,000 35,000 3s.000 7,894,250 60,000 2s5,000 35,000 3s,000 35.000 8.314.250 8.314,250 Transit - 600-640 # Fund å Proiect T¡tle PriorYears FY 18/19 tY 79/20 FY 20/2I FY 27122 FY 22/23 FY 23/24 Totals 78 79 80 81 82 83 601 Blower Assmb for Bus Wash 605 Trans Station Repairs 601 Transit Fac Upgrades 602 Farebox Equip 601 Fleet Equipment 601 Parking Garage Elevator Rep Totals Transit Summary 601-Transit-Ca pitol 602-Transit Prop 1B 605-Prob 18 State of Good Totals 120,000 160,000 300,000 109,810 50,000 20.000 120,000 160,000 300,000 109,810 50,000 20,000 759.810 759,810 490,000 109,810 160.000 490,000 109,810 160,000 759,810 Capital lmprovement Totals L,675,664 2,339,500 32,461,830 5,995,000 24,672,030 18,302,500 3,855,000 89,3OL,524 759,810 RESOLUTION NO. 2019-95 A RESOLUTION OF THE LODI CITY COUNCIL ADOPTING THE CITY OF LODI FINANCIAL PLAN AND BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1,2019 AND ENDING JUNE 30,2020, AND APPROVING THE2O19I2O APPROPRIATIONS SPENDING LIMIT WHEREAS, the City Manager submitted the 2019120 Financial Plan and Budget to the City Council on May 21,2019; and WHEREAS, the 2019120Financial 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 14 and May 21,2019, at the Carnegie Forum; and WHEREAS, the City Council is required to adopt the Appropriations Spending Limit for 2Q19120', and WHEREAS the Appropriations Spending Limit and the annual adjustment factors selected to calculate the Limit are part of the Financial Plan and Budget. NOW, THEREFORE BE lT RESOLVED by the City Council of the City of Lodi as follows: 1. ïhat the 2019120 Financial Plan and Budget, as proposed by the City Manager be approved as follows: Budget Police Department $24,066,860 Fire Department $14,218,300 lnternal Services Department $5,146,260 Non-Departmental $4,578,230 Parks, Recreation and Cultural Services $4,925,550 Public Works $2,719,280 Library $1,546,840 City Clerk $610,930 City Attorney $577,140 Economic Development $547,710 City Manager $391,260 Total General Fund $59,328,360 Other Funds Electric Utility $74,441,290 Water Utility $19,327,810 Wastewater Utility $16,968,080 Transit Fund $4,557,830 Streets $7,661,190 Community Development $2,558,000 Parks, Recreation & Cultural Services $7,663,660 Library $1,535,480 Fleet Services $2,1 19,370 Transportation Development Act $30,000 Community Development Block Grant $2,900,000 Public Safety Special Revenue $301,000 CapitalOutlay $4,261,840 Vehicle Replacement & Equipment $2,103,000 Debt Service $1,753,310 Benefits $9,246,710 Self-lnsurance $5,084,240 Trust and Agency $76,000 Grand Total $221,917,170 2. That the funds for the 2019120 Financial Plan and Budget are appropriated in the document on file in the City Clerk's Office; and 3. That the position additions are approved as shown in the table below effective July 1,2019. Classification Department Change Neighborhood Services Manager Community Development Add Customer Service Representative f nternal Services Department Add AssistanVAssociate Civil Engineer Public Works - Engineering Add Facility Superintendent Public Works - Facilities Add Librarian l/ll Library Add 4. That the Appropriations Spending Limit be increased by $6,048,361 from the 2018119 level of $105,753,512 to the 2019120 level of $1 1 1 ,801,873, in accordance with the calculations on Attachment A. Dated: June 5, 2019 lhereby certify that Resolution No.2019-95 was passed and adopted by the City Council of the City of Lodi in a regular meeting held June 5,2Q19, by the following vote: AYES: COUNCIL MEMBERS - Johnson, Kuehne, Mounce, and Mayor Chandler NOES: COUNCIL MEMBERS - None ABSENT: COUNCIL MEMBERS - Nakanishi ABSTAIN: COUNCIL MEMBERS - None NIFER 2019-95 ity Clerk FERRAIOLO ATTACHMENT A 2Ot9l2O FTNANCTAL PLAN AND BUDGET APPROPRIATIONS SPENDING LIMIT !05,753,5L2Last Year's Limit Adjustment Factors 1 Population %1.018 1.03852 |nflaüon o/o Total Adjustment %L.0572 Annual Adjustment 6,048,36L Adjustments None otal Adjustment 6,048,361 Proceeds of Taxes 4L,747,96L Exclusions Appropriations subject to limitations 41,747,96L Current Year Limit 111,80L,873 t70,o53,912llpltr8 tuûþsnturr*fr Fiscal Year 2019/20 Budget Presented by Andrew Key, Deputy City Manager Overview •FY 2019/20 Annual Budget Changes •Changes Since Shirt Sleeve Presentations •Shirt Sleeve Recaps •General Fund Assumptions/Revenues/Expenses Key Inputs Five Year Forecast •Enterprise Funds Electric Water Wastewater •Special Revenue Funds Transit Streets Community Development Parks, Recreation and Cultural Services Library 2 •Draft document was made available on the front page of the City’s website www.lodi.gov on May 22nd Fiscal Year 2019/20 Annual Budget •New budget document look with added information Fiscal Year 2019/20 Annual Budget Fiscal Year 2019/20 Annual Budget •Budget At a Glance •Financial Organization Chart Fiscal Year 2019/20 Annual Budget Fiscal Year 2019/20 Annual Budget •Fund Structure Fiscal Year 2019/20 Annual Budget •Section information Fiscal Year 2019/20 Annual Budget •Capital Improvement Program Changes Since Shirt Sleeve Presentation •Additional Position Request in General Fund •Customer Service Representative $74,870 funded Reduction in Part-time hours and increase cost of services – net zero cost in FY 19/20 •Blue sheet on CIP project for HEAP tiny homes •$1.25 Million in HEAP grant funding for tiny homes land acquisition •Purchase of land will come back to Council for authorization 10 FY 2019/20 Revenues $59,605,690 Revenue Trends Revenue Trends FY 2019-20 Expenses $59,605,690 General Fund Expenditures by Function FY 2019-20 Expenses $59,605,690 General Fund Expenditures by Type * General Fund represents 71% of the city-wide UAL costs. UAL Represents 12% of all General Fund expenses when Measure L is removed. FY 2019-20 Measure L Expenses $5,200,000 Measure L Expenditures by Function FY 2019-20 Measure L Expenses $5,200,000 Measure L Expenditures by Type •4 new position recommendations: -Associate Engineer $130,970 -Facilities Superintendent $124,220 -Customer Service Representative $74,870 Reduction in Part-time hours and increase cost of services – net zero cost -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 Key Inputs •Revenues: $5,200,000 •Expenditures: $4,922,670 •Reserves: $277,330 •Measure L Position Funding: Measure L Measure L Funded Positions Approved Mid Year Requested FY 2019/20 Moved from GF Moved to GF Total for FY 2019/20 Cost: Police Officers 6 0 4 0 10 $1,296,360 Firefighters 3 0 5 0 8 $840,000 Fire Battalion Chief 1 0 0 1 0 $0 Librarian 0 1 0 0 1 $98,080 Total 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 Measure L Vehicle Replacement Fund Vehicle Replacement Funds 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 Comm. Dev $63,694 $21,000 $0 $84,694 $0 $0 $84,694 $57,953 $26,741 Fire Dept.$434,229 $250,000 $0 $684,229 $570,000 $870,000 $384,229 $2,701,445 ($2,317,216) Police Dept.$899,870 $127,166 $240,700 $786,336 $236,000 $279,000 $743,336 $1,667,504 ($924,168) PRCS $401,482 $61,700 $55,000 $408,182 $68,300 $224,000 $252,482 $998,061 ($745,579) PW-GF $97,739 $25,000 $23,572 $99,167 $0 $0 $99,167 $222,156 ($122,989) Grand Total $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 FY 19/20 Straight Line Depreciation Requirement FY 2019/20 Recommended Funding Annual Funding Surplus/(Shortage) Comm. Dev $6,598 $0 ($6,598) Fire Dept.$182,711 $570,000 $387,289 Police Dept.$210,820 $236,000 $25,180 PRCS $48,681 $68,300 $19,619 PW-GF $13,689 $0 ($13,689) Grand Total $462,499 $874,300 $411,801 •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 - Summary 5 Year Forecast - Assumptions 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 5 Year Forecast - Expenses 5 Year Forecast – Fund Balance 5 Year Forecast – PSF Fiscal Year 2019/20 Budget Utility Fund and Special Revenue Presentation Presented by: Andrew Keys, Deputy City Manager Electric Utility Overview 30 Estimated 2016-17 2017-18 2018-19 2018-19 2019-20 Electric Utility Enterprise Fund Actuals Actuals Budget Actuals Budget Cash Balance Beginning Cash Balance 21,911,186 28,133,768 29,951,255 36,848,018 40,853,108 Revenues *70,840,461 74,937,150 73,615,090 73,262,910 72,440,580 Expenditures 64,617,879 66,222,900 75,301,153 69,257,820 74,441,290 Net Difference (Revenues Less Expenditures)6,222,582 8,714,250 (1,686,063) 4,005,090 (2,000,710) Cash Balance Ending Cash Balance 28,133,768 36,848,018 28,265,192 40,853,108 38,852,398 Fund Balance as a percentage of expenses:44%56%38%59%52% * Includes changes in GOR Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2020 With Actuals for FY 2016-17 and FY 2017-18 and Comparative Budget FY 2018-19 •Revenues are $1,174,510 lower than FY 2018/19 budget Customer charges - $1,587,010 lower Operating Transfer In - $250,000 lower Environmental compliance - $160,180 higher Work for others - $384,500 higher Development impact fees - $155,050 higher Electric Utility 31 •Expenses are $859,860 lower than FY 2018/19 budget Salary & benefits - $312,560 lower Supplies, materials & services - $937,120 lower Debt service - $1,534,880 lower Capital projects & equipment - $2,054,340 higher Electric Utility 32 •Electrical Utility Facility Renovation - $2,000,000 •12kV Overhead - $300,000 •12kV Underground - $1,100,000 •230kV Interconnection - $500,000 •Streetlight Maintenance - $50,000 •Work for Others - $350,000 •1267 Feeder Extension - $600,000 •McLane Substation Renovation - $1,400,000 •LED Streetlight Improvements - $250,000 Electric Utility Capital Projects 33 Electric Utility Reserves 34 Purpose Basis 2019/20 Target Operating Reserve 90 days cash 16,973,000 Capital Reserve Largest distribution system contingency 1,000,000 NCPA General Operating Reserve NCPA identified items 4,538,881 Total Target 22,511,881 Estimated FY 2019/20 Reserve 38,852,398 35 Water Utility Overview Estimated 2016-17 2017-18 2018-19 2018-19 2019-20 Water Utility Enterprise Fund Actuals Actuals Budget Actuals Budget Cash Balance Beginning Cash Balance 5,567,984 4,743,509 4,611,635 5,154,246 8,346,876 Revenues 13,818,330 14,461,227 14,448,540 14,660,850 15,194,660 Expenditures 14,642,805 14,050,490 15,346,327 11,468,220 19,327,810 Net Difference (Revenues Less Expenditures)(824,475) 410,737 (897,787) 3,192,630 (4,133,150) Cash Balance Ending Cash Balance 4,743,509 5,154,246 3,713,848 8,346,876 4,213,726 Fund Balance as a percentage of expenses:32%37%24%73%22% Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2020 With Actuals for FY 2016-17 and FY 2017-18 and Comparative Budget FY 2018-19 •Revenues are $746,120 higher than FY 2018/19 Charges for services - $522,980 higher Development impact fees - $300,000 higher Water Utility 36 •Expenses are $3,981,480 higher than FY 18/19 budget Salary & benefits - $58,640 lower Supplies, materials & services - $82,280 higher Capital projects & equipment - $3,923,130 higher Water Utility 37 •Water Meter Phase 8 - $5,980,000 •Granular Activated Carbon (GAC) at 2 sites - $300,000 •Wells #’s 7, 22, 27, 28 rahab/GAC systems - $1,241,000 •Water meter shop construction - $200,000 •Water taps/main replacements - $125,000 •Lockeford Street reconstruction - $48,250 •PCE/TCE programs - $420,000 Water Utility Capital Projects 38 •Target is 25% of operating expenses •Target for FY 2019/20 equals $2,747,140 •FY 2019/20 estimated reserve is $4,213,726 Water Utility Reserves 39 40 Wastewater Utility Overview Estimated 2016-17 2017-18 2018-19 2018-19 2019-20 Wastewater Utility Enterprise Fund Actuals Actuals Budget Actuals Budget Cash Balance Beginning Cash Balance 17,462,307 19,473,784 20,601,484 22,795,135 22,803,825 Revenues 16,940,258 16,479,477 19,820,600 20,122,940 17,359,130 Expenditures 14,928,781 13,158,126 27,498,730 20,114,250 16,968,080 Net Difference (Revenues Less Expenditures)2,011,477 3,321,351 (7,678,130) 8,690 391,050 Cash Balance Ending Cash Balance 19,473,784 22,795,135 12,923,354 22,803,825 23,194,875 Fund Balance as a percentage of expenses:130%173%47%113%137% Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2020 With Actuals for FY 2016-17 and FY 2017-18 and Comparative Budget FY 2018-19 •Revenues are $2,461,470 lower than FY 2018/19 budget Customer accounts - $104,360 higher Development impact fees - $747,210 higher State grant - $3,130,000 lower Wastewater Utility 41 •Expenses are $10,530,650 lower than FY 2018/19 budget Salary & benefits - $343,000 higher Supplies, materials & services - $71,100 higher Capital projects & equipment - $10,828,120 lower Wastewater Utility 42 •Replace one truck - $40,000 •Main replacement #8 – $2,600,000 •Upgrade blowers - $750,000 •Collection system enhancements - $200,000 •Lincoln storm pump rehab - $75,000 •White Slough facility repairs - $68,000 •Taps/relocations - $75,000 •Lockeford Street reconstruction - $20,680 Wastewater Utility Capital Projects 43 •Target is 25% of operating expenses •Target for FY 2019/20 equals $3,193,600 •FY 2019/20 estimated reserve is $23,194,875 Wastewater Utility Reserves 44 Transit Overview 45 Estimated 2016-17 2017-18 2018-19 2018-19 2019-20 Transit Fund Actuals Actuals Budget Actuals Budget Fund Balance (Net Assets) Beginning Fund Balance (Net Assets) Unreserved 4,844,101 3,792,695 5,486,449 4,326,294 3,533,034 Revenues 3,879,088 5,353,595 5,292,480 5,663,530 4,952,760 Expenditures 4,930,494 4,819,996 6,876,154 6,456,790 4,557,830 Net Difference (Revenues Less Expenditures)(1,051,406) 533,599 (1,583,674) (793,260) 394,930 Fund Balance (Net Assets) Ending Fund Balance (Net Assets) Unreserved 3,792,695 4,326,294 3,902,775 3,533,034 3,927,964 Fund Balance as a percentage of revenue:98%81%74%62%79% Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2020 With Actuals for FY 2016-17 and FY 2017-18 and Comparative Budget FY 2018-19 •Revenues are $399,720 lower than FY 2018/19 budget Transportation Dev Act - $182,230 higher State grants - $84,800 higher Federal grants - $93,830 lower Prop 1B - $429,190 lower Miscellaneous revenues - $83,730 lower Transit Revenue 46 •Expenses are $2,318,325 lower than FY 2018/19 budget Supplies, materials & services - $79,970 lower Capital projects & equipment - $2,430,640 lower Transit Expenditures 47 •Blower assembly for bus wash - $120,000 •Transit station repairs - $160,000 •Transit facility upgrades – $300,000 •Farebox equipment – $109,810 •Fleet equipment - $50,000 •Parking garage elevator repair - $20,000 Transit Capital Expenditures 48 49 Streets Overview Estimated 2016-17 2017-18 2018-19 2018-19 2019-20 Street Fund Actuals Actuals Budget Actuals Budget Fund Balance Beginning Fund Balance 3,789,808 5,375,119 6,522,099 6,461,848 8,802,878 Revenues 11,778,164 9,366,209 7,770,130 7,944,900 9,951,200 Expenditures 10,192,853 8,279,480 9,701,351 5,603,870 7,661,190 Net Difference (Revenues Less Expenditures)1,585,311 1,086,729 (1,931,221) 2,341,030 2,290,010 Fund Balance Ending Fund Balance 5,375,119 6,461,848 4,590,878 8,802,878 11,092,888 Fund Balance as a percentage of revenue:46%69%59%111%111% Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2020 With Actuals for FY 2016-17 and FY 2017-18 and Comparative Budget FY 2018-19 •Revenues are $2,181,070 higher than FY 2018/19 budget Gas taxes - $108,530 higher State grants - $447,000 higher Federal Grants - $1,182,280 higher Development impact fees - $288,300 higher Streets Revenue 50 •Expenses are $2,040,160 lower than FY 2018/19 budget Salaries/benefits - $99,760 higher Supplies, materials & services - $51,860 higher Capital projects & equipment - $2.1m lower Streets Expenditures 51 •Church Street diet - $1,622,150 •Guild/Victor traffic signal - $764,000 •Lockeford Street reconstruction - $507,400 •Bike detection improvements - $565,000 •Pavement projects - $370,000 •Sidewalk projects - $170,000 •Lwr Sacramento Road median repair - $100,000 •Signal maintenance - $90,000 •Street striping - $80,000 •Miscellaneous maintenance projects - $196,000 Streets Capital Projects 52 53 Community Development Overview Estimated 2016-17 2017-18 2018-19 2018-19 2019-20 Community Development Fund Actuals Actuals Budget Actuals Budget Fund Balance Beginning Fund Balance Unreserved 2,423,363 3,824,752 2,240,502 2,975,494 3,048,384 Revenues 3,140,917 2,886,196 2,586,100 2,586,100 2,587,800 Expenditures 1,739,528 3,735,454 2,515,790 2,513,210 2,558,000 Net Difference (Revenues Less Expenditures)1,401,389 (849,258) 70,310 72,890 29,800 Fund Balance Ending Fund Balance Unreserved 3,824,752 2,975,494 2,310,812 3,048,384 3,078,184 220%80%92%121%120% Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2020 With Actuals for FY 2016-17 and FY 2017-18 and Comparative Budget FY 2018-19 Fund Balance as a percentage of expense •Revenues are $1,700 higher than FY 2018/19 budget Permits - $6,300 lower Planning fees - $160,000 higher Federal grants- $164,000 lower Community Development Revenue 54 •Expenses are $42,210 higher than FY 2018/19 budget Salary & benefits - $191,320 higher Adding Neighborhood Services Manager position Supplies, materials & services - $180,140 lower Operating transfers - $28,7000 higher Community Development Expenditures 55 56 Parks, Recreation and Cultural Services Overview Estimated 2016-17 2017-18 2018-19 2018-19 2019-20 Parks, Recreation & Cultural Svcs Fund Actuals Actuals Budget Actuals Budget Fund Balance Beginning Fund Balance Unreserved 387,390 694,672 217,754 774,303 669,153 Revenues 6,249,422 6,364,934 6,153,300 6,308,400 7,672,990 Expenditures 5,942,140 6,285,303 6,349,990 6,413,550 7,663,660 Net Difference (Revenues Less Expenditures)307,282 79,631 (196,690) (105,150) 9,330 Fund Balance Ending Fund Balance Unreserved 694,672 774,303 21,064 669,153 678,483 11%12%0%11%9% Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2020 With Actuals for FY 2016-17 and FY 2017-18 and Comparative Budget FY 2018-19 Fund Balance as a percentage of revenue •Revenues are $1,519,690 higher than FY 2018/19 budget •Operating transfer in - $1,039,590 higher •Rents - $36,510 higher •LUSD after school services - $40,030 higher •City after school programs - $160,000 higher •Programs - $187,950 higher •Box office - $55,000 higher Parks, Recreation and Cultural Services Revenue 57 •Expenses are $1,313,670 higher than FY 2018/19 budget •Operating transfers – $1,010,190 higher •Salaries & benefits - $314,180 higher 58 Parks, Recreation and Cultural Services Expenditures 59 Library Overview Estimated 2016-17 2017-18 2018-19 2018-19 2019-20 Library Fund Actuals Actuals Budget Actuals Budget Fund Balance Beginning Fund Balance Unreserved 670,790 457,902 6,049 23,161 148,431 Revenues 1,457,057 2,411,977 1,494,934 1,497,930 1,547,750 Expenditures 1,552,578 2,846,718 1,536,418 1,372,660 1,535,480 Net Difference (Revenues Less Expenditures)(95,521) (434,741) (41,484) 125,270 12,270 Fund Balance Ending Fund Balance Unreserved 575,269 23,161 (35,435) 148,431 160,701 39%1%-2%10%10%Fund Balance as a percentage of revenue Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2020 With Actuals for FY 2016-17 and FY 2017-18 and Comparative Budget FY 2018-19 •Revenues are $15,670 higher than FY 2018/19 budget •Operating Transfer In - $11,050 higher •Grants - $34,890 lower 60 Library Revenue •Expenses are $940 lower than FY 2018/19 budget •Operating transfers - $11,050 higher •Salaries & benefits - $72,120 higher* •Capital projects - $90,230 lower *New Librarian position funded in General Fund and not reflected in above figures. 61 Library Expenditures 62 Questions?