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Home My WebLink AboutAgenda Report - June 3, 2020 H-02AGENDA ITEM þ{-z Crrv or Lonr C ouNcrr, C oivrMUNrcATroN TM AGENDA TITLE: MEETING DATE: PREPARED BY: Adopt Resolution Approving the Fiscal Year 2020121 Financial Plan and Budget and Approving the Fiscal Year 2020121 Appropriation Spending Limit June 3, 2020 Budget Manager RECOMMENDED ACTION:Adopt resolution approving the Fiscal Year 2020121 Financial Plan and Budget and approving the Fiscal Year 2020121 Appropriation Spending Limit BACKGROUND INFORMATION:Staff presented information to Council regarding the FY 2020121 budget at its regularly scheduled meeting May 20, 2020. Staff published the budget document on May 15,2020. The full proposed budget document is available on the City's webpage at http://wunv. lod i.qov/CivicAlerts. aspx?Al D= 1 82 The Budget presented to Council this evening is consistent with the draft released on May 15th and the presentation at the May 20th Council meeting with the following corrections or changes: The General Fund for FY 2020121 is presented with revenues and expenditures of $59,659,490. The June 30, 2021 Íund balance is projected to be $1 0,277 ,274. Staff is recommending a temporary suspension of the year end PARS contribution as required in the fiscal policies due to the unprecedented uncertainty of the COVID-19 impacts. Staff will stay diligent in monitoring the economic forecast and will report back to Council as more data is made available. ñR- stÈñ-sc¡wìÈË'/er (t¡ay zt,zozo tstit po¡j 325 Police 10030001'76220 Transfer Out will be reduced by $92,750 and moved to Police Salaries 10032000.71001 to fund an officer position. 273 Equipment Replacement 40100000.5000L Transfer ln reduced by 592,750 to reflect reduction in transfer from Police to fund officer 376-323; 33s Economic Development; lnternal Services; Non-Depa rtmental Fourth of July Funding: 7OOIOL02.726O5 Fireworks will increase by S16,000; 100IOt02.72750 Fourth of July increase by 521,000; t0020202J23t5 Conference reduce by 58,750; 70020202.72358 Training reduce by 56,750;10020203.71,002 Overtime reduce by 55,000; 10020300.72315 Conference reduce by $3,000; 10020300.72358 Training reduce by S+,000; ],0020400.72358 Training reduce by 54,500; L0095000.72215 Refuse reduce by $5,OOO 135 Streets 30300000.51033 Measure K revenue projection was missed; entry will be corrected to s1,200,000. *Charts, summaries and descriptions effected by the above line item changes will be updated to reflect accurate figures APPROVED Stephen Schwabauer, City Manager The budgets for both Library and Parks, Recreation and Cultural Services (PRCS) were developed pre- COVID-19. As of this writing, the Library remains closed and many PRCS programs and facilities remain closed by public health orders. Corresponding staff is furloughed. Adopting pre-COVID-19 budgets for these two departments allow for flexibility and rapid return to operations as the County's Public Health Officer permits. Staff will monitor and the City Manager will only authorize expenditures or hires for programs permitted under public health guidelines. The budget proposes 412full time employees, a net increase of two from FY 20. The recommended changes are shown in the table below: Classification Department Cost Electrician Wastewater $136,350 Senior Transit Planner Transit $119,960 Additionally, six vacant police officer positions and one vacant dispatcher/jailer position are recommended to remain authorized but unfunded. A change in the method of budgeting for capital improvement projects occurred in fiscal year 2019120. Projects are now budgeted for the life of the project rather than re-budgeted each fiscal year. A summary of the programmed capital improvement projects can be found starting on page 180 of the budget document. For fiscal year 2020121, projects totaling $14,396,540 are proposed to be added to the program. Some of these include: Electric Utility ($3.6m) o 12kV overhead/underground maintenance; streetlight maintenance and improvement; Henning feeder extension; substation load tap charger. Water Utility ($2.9 million)o Granular activated carbon well projects; well rehabs; MSC office remodel; water taps/main replacements; PCE/TCE program. Wastewater Utility ($3.7 million)o WSWPCF fan press replacement; digester #3 rehab; aeration diffuser replacement; storm drain trash handling; MSC office remodel; electrical roomer-roof; wastewater taps/relocations. Street Maintenance ($2.5m) o LodiAvenue and Mills Avenue resurfacing; Turner/Ca signal; signal preventative maintenance; pavement maintena nce ; sidewalk ma intenance. 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 2020121 fiscal year. This limit represents the maximum spending authority for the City based upon population and inflation changes over the last year ïhe 2020121 Appropriation Limit is $1 16,864,705, an increase of $5,029,885 from the prior year. Details of the calculation are included in Attachment A. FISCAL IMPACT The 2020121 budget provides an expenditure plan for all funds. The All-Funds expenditure budget is project to be $207,892,320, a decrease of $36,638,930 from the current revised FY 2019120 budget. General Fund revenues and expenses are projected at $59,659,490. (,l)r,^. L ^Andrew Keys (May 21,2ú10 ß:09 PDT) Attachments cc: City Attorney a a a Andrew Keys, Deputy City Manager AGENDA ITEM þ{-z Crrv or Loor Councrr, ConnMUNrcATroN IM AGENDA TITLE: MEETING DATE: PREPARED BY: Adopt Resolution Approving the Fiscal Yea¡ 2020121 Financial Plan and Budget and Approving the Fiscal Year 2020l2l Appropriation Spending Limit June 3, 2020 Budget Manager RECOMMENDED ACTION: Adopt resolution approving the Fiscal Yea¡ 2020t21 Financial Plan and flH,f" and approvlng the Fiscal Year 2020t21 Appropriation Spending BACKGROUND INFORMATION: Staff presented information to Council regarding the FY 2O2Ol21 budget at its regularly scheduled meeting May 20, 2020. Staff publlshed the budget document on May 15,2020. The full proposed budget document is available on the City's webpage at httuff,wwwJodì. spv/CtvioAlertc.as0x?Al Þ* 1 BQ The Budget presented to Council this evening is consistent with the drafr released on May 15th and the presentation at the May 20th Council meeting with the following corrections or changes: ïhe General Fund for FY 2020121 is presented with revenues of 959,t59,4g0 and expenditures of $59,659,490. The June 30,2021fund balance is projected tobet19,2771274 $9,777,274. SfafTis recommendlng uslng úåe PERS Rate Stablllzatlon Fund (PRS) to cover the $500,000 tmbatance. Staff is also recommending a temporary suspension of the year end PARS| PRS contribution as required in the fiscal policies due to the unprecedented uncertainty of the COVID-19 impacts. Staff will stay diligent ln monitoring the economic forecast and will report back to Council as more data is made available, Steve Schwabauer 47 Non-Depaftmentol l0O95Un.$207 Lote Payñents - Utlllttes rcduced by 9500,ü)0 325 Pollce 10030001,76220fransfer Out wtll be reduced by 592,750 and m 10032000.71001 to fund an offlcer positlon. oved to Police Salarles 273 Equlpment Replacement 40100000.50001 Transfer ln reduced by $g2,ZSO to reflect reduction in transfer from pollce to fund offlcer 316"323; 33s Economlc Development; lnternal Servlces; Non-Departmentãl Fourth of July Fundlng: 100101O2.72605 Fireworks wlll tncrease by S16,OOO; tOOtOtOZ.TZTSO Fourth of July increase by $21,0O0¡ 10O2O2O2.72315 Conference reduce by 5B,7SO; 70020202,72358 frainlng reduce by 56,7S0; 10020203.71002 Overttme reduce by S5,000; 10020300.72315 Conference reduce by $3,fi)0; 10020300,72358 Training reduce by g4,OO0; 10020400.72358 Tralnlng reduce by $4,500; 10095000.72215 Refuse reduce by 95,000 135 Streets 30300000.51033 Measure K revenue proJection was missed; entry wlll be corrected to s1,200,000. lc]narlq, summaries and descrlptlons effected by the above llne ltem changes wlll be updated to reflect âccurãte flgures APPROVED: Stephen Schwabauer, City Manager The budgets for both Library and Parks, Recreation and Cultural Services (PRCS) were developed pre- COVID-19. As of this writing, the Library remains closed and many PRCS programs and facilities remain closed by public health orders. Corresponding staff is furloughed. Adopting pre-COVID-19 budgets for these two departments allow for flexibility and rapid return to operations as the County's Public Health Officer's permits. Staff will monitor and the City Manager will only authorize expenditures or hires for programs permitted under public health guidelines. The budget proposes 412 îull time employees, a net increase of two from FY 20. The recommended changes are shown in the table below: Classlfication Department Cost Electrician Wastewater $136,350 Senior Transit Planner Transit $119,960 Additionally, six vacant police officer positions and one vacant dispatcher/jailer position are recommended to remain authorized but unfunded. A change in the method of budgeting for capital improvement projects occurred in fiscal yeat 2O19l2O. Projects are now budgeted for the life of the project rather than re'budgeted each fiscal year. A summary of the programmed capital improvement projects can be found starting on page 180 of the budget document. For fiscal year 2020121, projects totaling $14,396,540 are proposed to be added to the program. Some of these include: Electric Utility ($3.6m)o 12kV overhead/underground maintenance; streetlight maintenance and improvement; Henning feeder extension; substation load tap charger. Water Utility ($2.9 million)o Granular activated carbon well projects; well rehabs; MSC office remodel; water taps/main replacements; PCE/TGE program. Wastewater Utility ($3.7 million)o WSWPCF fan press replacement; digester #3 rehab; aeration diffuser replacement; storm drain trash handling; MSC office remodel; electrical roomer-roof; wastewater taps/relocations. Street Maintenancê ($2.5m)o Lodi Avenue and Mills Avenue resurfacing; Turner/Ca signal; signal preventative maintenance; pavement maintenance; sidewalk maintenance. A resolution adopting the Financial Plan and Budget is attached. lncluded in the budget resolution is the adoption of the Appropriation Spending Limit for lhe 2020121 fiscal year. This limit represents the maximum spending authority for the City based upon population and inflation changes over the last year, The 2020t21 Appropriation Limit is $1 16,864,705, an increase of $5,029,885 from the prior year. Details of the calculation are included in Attachment A. FISGAL IMPACT:The 2020121 budget provides an expenditure plan for all funds. The All-Funds expenditure budget is project to be $207,892,320, a decrease of $36,638,930 from the current revised FY 2019120 budget. General Fund revenues and expenses are projected at $59,659,490. Andrew Keys Attachments cc: City Attomey a a a srgnature: A*¿"* Tr^à, Emai[; akeys@lodi.gov Andrew Keys, Deputy City Manager Fiscal Year 2020/21 Budget Presented by Andrew Keys, Deputy City Manager Overview •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 Page #Department Correction or change: * 47 Non-Departmental 10095000.53207 Late Payments - Utilities reduced by $500,000 325 Police 10030001.76220 Transfer Out will be reduced by $92,750 and moved to Police Salaries 10032000.71001 to fund an officer position. 273 Equipment Replacement 40100000.50001 Transfer In reduced by $92,750 to reflect reduction in transfer from Police to fund officer 316-323; 335 Economic Development; Internal Services; Non-Departmental Fourth of July Funding: 10010102.72605 Fireworks will increase by $16,000; 10010102.72750 Fourth of July increase by $21,000; 10020202.72315 Conference reduce by $8,750; 10020202.72358 Training reduce by $6,750; 10020203.71002 Overtime reduce by $5,000; 10020300.72315 Conference reduce by $3,000; 10020300.72358 Training reduce by $4,000; 10020400.72358 Training reduce by $4,500; 10095000.72215 Refuse reduce by $5,000 135 Streets 30300000.51033 Measure K revenue projection was missed; entry will be corrected to $1,200,000. *Charts, summaries and descriptions effected by the above line item changes will be updated to reflect accurate figures Changes to Draft Budget 3 •Covid-19 impact uncertainties •Sales Tax estimates 11.5% less than mid-year •Business License Tax 20% less than mid-year •Transient Occupancy Tax 50% less than mid-year •Late fees adjusted to 50% of projection ($500,000 reduction) •Expenditures kept at FY 20 original budget levels •7 unfunded but authorized positions in Police (correction from draft document of 8 unfunded) •Temporary suspension of year end PARS contribution as required in fiscal policies General Fund Assumptions 4 FY 2020/21 General Fund Revenues $59,659,490 5 Tax Revenues Revenue from Others Operating … Charges for Services Investment & Property Revenues Fines & Forfeitures Other Revenues and Licenses & Permits Fund Balance Contribution Revenue Categories Budget 2020-21 Tax Revenues $41,304,850 Revenue from Others $6,465,880 Operating Transfers In $6,256,620 Charges For Services $1,984,650 Investment & Property Revenues $1,849,840 Fines & Forfeitures $775,100 Other Revenues and Licenses & Permits $522,550 Fund Balance Contribution $500,000 Grand Total $59,659,490 General Fund Expenditures $59,659,490 6 Police Department Fire Department Non-… Internal Services Department Public Works (General Fund) Department City Clerk City Attorney City Manager Economic Development Library (from Measure L) General Fund Expenses by Department Budget 2020-21 Police Department $24,921,930 Fire Department $14,461,600 Non-Departmental $9,628,300 Internal Services Department $5,304,350 Public Works (General Fund) Department $2,891,680 City Clerk $770,040 City Attorney $615,140 City Manager $547,650 Economic Development $408,860 Library (from Measure L)$109,940 Grand Total $59,659,490 General Fund Fund Balance Estimated 2017-18 2018-19 2019-20 2019-20 2020-21 General Fund Actuals Actuals Budget Actuals Budget Fund Balance Beginning Fund Balance Unreserved 11,042,366 9,903,471 11,984,074 11,984,074 10,277,274 Revenues 51,541,719 54,271,560 61,839,700 59,905,690 59,159,490 Expenditures 52,680,614 52,190,958 60,341,180 61,612,490 59,659,490 Net Difference (Revenues Less Expenditures)(1,138,895) 2,080,603 1,498,520 (1,706,800) (500,000) Fund Balance Ending Fund Balance Unreserved 9,903,471 11,984,074 13,482,594 10,277,274 9,777,274 Fund Balance as a percentage of revenue:19%22%22%17%17% Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2021 With Actuals for FY 2017-18 and FY 2018-19 and Comparative Budget FY 2019-20 7 •7 unfunded positions in Police –6 officers and 1 dispatcher/jailer ($975,000) •No transfer for Capital Outlay projects ($435,000) •No transfer for Information Systems replacements ($65,000) •Reduced transfers to Police and Fire Vehicle Replacement Funds ($475,000) •Operating budgets at FY 20 levels •Rising costs and falling revenue shift more positions to Measure L •Fireworks show remains funded •Use of PERS Rate Stabilization to cover $500,000 imbalance General Fund Key Inputs 8 •Revenues: $5,500,000 •Expenditures: $5,500,000 •Measure L Position Funding: Measure L Measure L Funded Positions FY 2019/20 Budget Moved from GF Total for FY 2020/21 Cost: Police Officers 10 8 18 2,536,080 Firefighters 8 0 8 1,007,610 Librarian 1 0 1 105,240 Total 19 8 27 3,648,930 9 Vehicle Replacement Fund Vehicle Fund PURCHASE PRICE 6/30/20 Est Fund Bal 2020/21 Est Rev 2020/21 Est Exp 6/30/21 Est Fund Bal Fund Target* Over/ (Under) Target Comm Dev $82,831 85,580 0 0 85,580 64,551 21,029 Fire $4,492,134 401,872 454,860 59,000 797,732 2,795,470 (1,997,738) Police $2,792,992 530,276 210,000 210,000 530,276 1,676,426 (1,146,150) PRCS $1,475,849 265,015 93,300 30,000 328,315 958,145 (629,830) PW - GF $297,727 100,638 0 0 100,638 167,250 (66,612) Grand Total $9,141,534 1,383,381 758,160 299,000 1,842,541 5,661,842 (3,819,301) *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 20/21 Straight Line Depreciation Requirement FY 2020/21 Recommended Funding Annual Funding Surplus/(Shortage) Comm. Dev $6,598 $0 ($6,598) Fire Dept.$299,842 $454,860 $155,018 Police Dept.$297,373 $210,000 ($87,373) PRCS $68,850 $93,300 $24,450 PW-GF $18,213 $0 ($18,213) Grand Total $690,876 $758,160 $67,284 10 •Unprecedented uncertainty in both the near term (0-6 months), mid and long term. •What will be allowed to be open? •What is the public’s willingness to utilize open businesses? •What is the public’s willingness to invest in both large personal and business expenditures, investments and improvements? •What impact will mandatory or suggested modifications have on business? •What will future unemployment and unemployment benefit levels be? •Base case operations are sustainable •Does not address labor negotiations •No new positions beyond what’s recommended in FY 20 •$1.7 Million in General Fund reserves are projected to be needed to balance the budget through 2023/24 •During this time, approximately $650,000 is added to the Measure L reserve balance during this time. 5 Year Forecast -Summary 11 •Forecast to be revisited quarterly at a minimum. •Authorized but not funded positions, General Fund, IT Capital and Measure L Capital do not return. •Based on full operations of currently furloughed departments receiving General Fund support (PRCS and Library). •Use of Pension Stabilization Reserves prioritized over use of local reserves. •Substantially reduced economic activity continues through the summer/fall with an increase in activity in late 2020 and early 2021. •Assessed valuations hold relatively stable in the current year. •Overall a 3.5% reduction in revenue from the Mid Year projections for FY 2020/21. 5 Year Forecast -Assumptions 12 5 Year Forecast -Assumptions 13 5 Year Forecast -Revenue 14 5 Year Forecast -Expenses 15 5 Year Forecast –Fund Balance 16 5 Year Forecast –PSF 17 Risks •Stay at Home Orders –duration, severity and COVID-19 resurgence (second wave) •Recession length and severity •Labor Negotiations •CalPERS UAL or other assumptions changes •Pace of Development Opportunities •Economic recovery •Revenue enhancement 5 Year Forecast – Risks/Opportunities 18 •With uncertainty, a quarterly revision of the forecast (and budget) is necessary. •Flexibility to act quickly, but caution is Staff’s recommended approach. •Authorize full operating budgets but only execute services in an financially sound manner. •Fund only mission critical vacancies as they arise. •Evaluate each recovery phase for its potential impact on both short and long term finances. 5 Year Forecast –Conclusions 19 Electric Utility Overview Estimated 2017-18 2018-19 2019-20 2019-20 2020-21 Electric Utility Enterprise Fund Actuals Actuals Budget Actuals Budget Cash Balance Beginning Cash Balance 23,233,768 31,947,991 41,959,800 41,959,800 38,438,162 Revenues *74,937,150 74,499,971 75,563,780 75,563,780 74,567,680 Expenditures 66,222,927 64,488,162 78,899,725 79,085,418 75,492,570 Net Difference (Revenues Less Expenditures)8,714,223 10,011,809 (3,335,945) (3,521,638) (924,890) Cash Balance Ending Cash Balance 31,947,991 41,959,800 38,623,855 38,438,162 37,513,272 Fund Balance as a percentage of expenses:48%65%49%49%50% * Includes changes in GOR Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2021 With Actuals for FY 2017-18 and FY 2018-19 and Comparative Budget FY 2019-20 20 •Revenues are $996,100 lower than FY 2019/20 budget Customer charges -$218,750 lower Work for others -$534,500 lower Greenhouse gas -$251,360 lower •Expenses are $3,407,160 lower than FY 2019/20 budget Salary & benefits -$1,192,480 higher Supplies, materials & services -$370,580 lower Debt service -$441,000 higher Capital projects & equipment -$4,624,000 lower Electric Utility 21 Electric Utility Reserves Purpose Basis 2020/21 Operating Reserve 90 days cash 18,118,000 Capital Reserve Largest distribution system contingency 1,000,000 NCPA General Operating Reserve NCPA identified items 4,240,000 Total Target 23,358,000 Estimated FY 2020/21 Reserve 37,513,272 23 Water Utility Overview Estimated 2017-18 2018-19 2019-20 2019-20 2020-21 Water Utility Enterprise Fund Actuals Actuals Budget Actuals Budget Cash Balance Beginning Cash Balance 4,743,509 5,154,247 10,041,012 10,041,012 4,243,702 Revenues 14,461,228 15,509,164 15,620,803 15,440,260 13,871,580 Expenditures 14,050,490 10,622,400 21,879,125 21,237,570 13,290,500 Net Difference (Revenues Less Expenditures)410,738 4,886,765 (6,258,322) (5,797,310) 581,080 Cash Balance Ending Cash Balance 5,154,247 10,041,012 3,782,690 4,243,702 4,824,782 Fund Balance as a percentage of expenses:37%95%17%20%36% Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2021 With Actuals for FY 2017-18 and FY 2018-19 and Comparative Budget FY 2019-20 23 •Revenues are $1,749,220 lower than FY 2019/20 Charges for services -$1,480,740 lower Build America Subsidy -$622,000 lower Developer Impact fees -$397,650 higher •Expenses are $8,588,630 lower than FY 2019/20 budget Salary & benefits -$17,510 higher Supplies, materials & services -$231,950 higher Debt service -$896,110 lower Capital projects & equipment -$7,925,780 lower Water Utility 24 •Target is 25% of operating expenses •Target for FY 2020/21 equals $2,556,125 •FY 2020/21 estimated reserve is $4,824,782 Water Utility Reserves 25 Wastewater Utility Overview Estimated 2017-18 2018-19 2019-20 2019-20 2020-21 Wastewater Utility Enterprise Fund Actuals Actuals Budget Actuals Budget Cash Balance Beginning Cash Balance 19,473,784 22,795,135 25,273,157 25,273,157 23,638,417 Revenues 16,479,477 20,292,057 18,599,860 18,599,860 18,612,980 Expenditures 13,158,126 17,814,035 20,349,559 20,234,600 17,355,460 Net Difference (Revenues Less Expenditures)3,321,351 2,478,022 (1,749,699) (1,634,740) 1,257,520 Cash Balance Ending Cash Balance 22,795,135 25,273,157 23,523,458 23,638,417 24,895,937 Fund Balance as a percentage of expenses:173%142%116%117%143% Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2021 With Actuals for FY 2017-18 and FY 2018-19 and Comparative Budget FY 2019-20 26 •Revenues are $13,120 higher than FY 2019/20 budget Charges for services -$390,370 lower Development impact fees -$858,120 higher State grant -$520,000 lower •Expenses are $2,994,100 lower than FY 2019/20 budget Salary & benefits -$250,850 higher Adding (1) Electrician position -$136,350 Supplies, materials & services -$156,060 higher Capital projects & equipment -$3,360,950 lower Wastewater Utility 2727 •Target is 25% of operating expenses •Target for FY 2020/21 equals $3,247,120 •FY 2020/21 estimated reserve is $24,895,937 Wastewater Utility Reserves 2828 Transit Overview Estimated 2017-18 2018-19 2019-20 2019-20 2020-21 Transit Fund Actuals Actuals Budget Actuals Budget Fund Balance (Net Assets) Beginning Fund Balance (Net Assets) Unreserved 3,792,695 4,326,294 3,082,159 3,082,159 2,208,549 Revenues 5,353,595 4,073,406 4,952,760 5,024,460 5,369,290 Expenditures 4,819,996 5,317,541 5,943,939 5,898,070 4,501,850 Net Difference (Revenues Less Expenditures)533,599 (1,244,135) (991,179) (873,610) 867,440 Fund Balance (Net Assets) Ending Fund Balance (Net Assets) Unreserved 4,326,294 3,082,159 2,090,980 2,208,549 3,075,989 Fund Balance as a percentage of revenue:81%76%42%44%57% Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2021 With Actuals for FY 2017-18 and FY 2018-19 and Comparative Budget FY 2019-20 29 •Revenues are $416,530 higher than FY 2019/20 budget Transportation Dev Act -$687,050 lower Federal grants -$1,177,180 higher Charges for services -$95,000 lower Prop 1B -$74,490 higher •Expenses are $1,442,090 lower than FY 2019/20 budget Salary & benefits -$92,700 higher Adding (1) Senior Transit Planner –$119,960 Capital projects & equipment -$1,609,980 lower Transit Revenue 30 Streets Overview 31 Estimated 2017-18 2018-19 2019-20 2019-20 2020-21 Street Fund Actuals Actuals Budget Actuals Budget Fund Balance Beginning Fund Balance 5,375,119 6,460,848 9,629,385 9,629,385 7,203,855 Revenues 9,365,209 8,471,106 9,951,200 8,558,710 7,431,660 Expenditures 8,279,480 5,302,569 11,212,880 10,984,240 6,021,030 Net Difference (Revenues Less Expenditures)1,085,729 3,168,537 (1,261,680) (2,425,530) 1,410,630 Fund Balance Ending Fund Balance 6,460,848 9,629,385 8,367,705 7,203,855 8,614,485 Fund Balance as a percentage of revenue:69%114%84%84%116% Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2021 With Actuals for FY 2017-18 and FY 2018-19 and Comparative Budget FY 2019-20 •Revenues are $3,719,540 lower than FY 2019/20 budget Gas taxes -$59,830 higher State grants -$447,000 lower Federal Grants -$2,984,290 lower TDA -$210,000 higher Developer impact fees -$277,880 higher •Expenses are $5,191,850 lower than FY 2019/20 budget Salaries/benefits -$43,330 higher Supplies, materials & services -$123,970 higher Capital projects & equipment -$5.3m lower Streets Revenue 32 Community Development Overview Estimated 2017-18 2018-19 2019-20 2019-20 2020-21 Community Development Fund Actuals Actuals Budget Actuals Budget Fund Balance Beginning Fund Balance Unreserved 3,824,752 2,975,494 3,612,425 3,612,425 3,944,265 Revenues 2,886,196 2,999,934 2,599,586 3,097,090 2,606,260 Expenditures 3,735,454 2,363,003 2,866,025 2,765,250 2,494,320 Net Difference (Revenues Less Expenditures)(849,258) 636,931 (266,439) 331,840 111,940 Fund Balance Ending Fund Balance Unreserved 2,975,494 3,612,425 3,345,986 3,944,265 4,056,205 80%153%117%143%163% Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2021 With Actuals for FY 2017-18 and FY 2018-19 and Comparative Budget FY 2019-20 Fund Balance as a percentage of expense 33 •Revenues are $6,670 higher than FY 2019/20 budget •Expenses are $30,420 lower than FY 2019/20 budget Salary & benefits -$24,650 higher Supplies, materials & services -$60,440 lower Community Development Revenue 34 Parks, Recreation and Cultural Services Overview Estimated 2017-18 2018-19 2019-20 2019-20 2020-21 Parks, Recreation & Cultural Svcs Fund Actuals Actuals Budget Actuals Budget Fund Balance Beginning Fund Balance Unreserved 694,672 774,063 796,310 796,310 788,360 Revenues 6,364,694 6,397,079 7,697,990 7,716,760 7,643,330 Expenditures 6,285,303 6,374,832 7,674,540 7,724,710 7,771,830 Net Difference (Revenues Less Expenditures)79,391 22,247 23,450 (7,950) (128,500) Fund Balance Ending Fund Balance Unreserved 774,063 796,310 819,760 788,360 659,860 12%12%11%10%9% Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2021 With Actuals for FY 2017-18 and FY 2018-19 and Comparative Budget FY 2019-20 Fund Balance as a percentage of revenue 35 •Many programs and facilities remained closed by public health orders and corresponding staff is furloughed. •Budget is built on Pre-COVID -19 assumptions to allow for flexibility and rapid return to operations as PHO’s permit. •Staff will monitor and the City Manager will only authorize expenditures or hires for programs permitted under public health guidelines. •Revenues are $54,660 lower than FY 2019/20 budget •Operating transfer in -$45,100 lower •Charges for services –$2,860 lower •Expenses are $97,290 higher than FY 2019/20 budget •Salaries & benefits -$202,100 higher •Supplies & services -$75,710 lower Parks, Recreation and Cultural Services Revenue 36 Library Overview Estimated 2017-18 2018-19 2019-20 2019-20 2020-21 Library Fund Actuals Actuals Budget Actuals Budget Fund Balance Beginning Fund Balance Unreserved 457,902 23,161 241,313 241,313 248,433 Revenues 2,411,977 1,585,711 1,547,750 1,552,750 1,638,250 Expenditures 2,846,718 1,367,559 1,535,480 1,545,630 1,724,830 Net Difference (Revenues Less Expenditures)(434,741) 218,152 12,270 7,120 (86,580) Fund Balance Ending Fund Balance Unreserved 23,161 241,313 253,583 248,433 161,853 1%15%16%16%10%Fund Balance as a percentage of revenue Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2021 With Actuals for FY 2017-18 and FY 2018-19 and Comparative Budget FY 2019-20 37 •The Library remains closed at this time per PHO and many staff remain furloughed. •The budget is built on pre-COVID -19 assumptions to allow for maximum flexibility and rapid response in re-opening as PHO’s permit. •Staff will monitor and the City Manager will only authorize expenditures or hires for programs permitted under public health guidelines. •Revenues are $90,500 higher than FY 2019/20 budget •Operating Transfer In -$114,950 higher •Donations -$20,000 lower •Expenses are $189,350 higher than FY 2019/20 budget •Operating transfers -$94,950 higher •Salaries & benefits -$3,500 lower •Supplies & services -$38,000 higher •Capital projects -$60,000 higher Library 38 •FY 20 CIP Program: $43,332,027 •Incomplete projects will carry forward to FY 21 •FY 21 additions to CIP Program: $14,396,540 •CIP Program projection through FY 25: $152,178,397 Capital Improvement Program Capital Fund:FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 Totals Capital Outlay/Measure L/Library 5,424,671 718,500 4,703,230 5,137,500 982,500 120,000 17,086,401 Community Improvement Grants 2,903,500 314,990 3,218,490 Electric Utility 8,450,756 3,665,050 2,360,000 3,492,700 23,067,700 12,750,000 53,786,206 Street Fund 7,807,766 2,565,000 1,975,000 2,185,000 755,000 5,605,000 20,892,766 TDA 30,000 30,000 30,000 90,000 Transit 1,156,847 490,000 300,000 400,000 2,346,847 Wastewater Utility 6,948,484 3,692,000 5,466,200 7,200,000 8,450,000 25,000 31,781,684 Water Utility 10,610,003 2,921,000 2,120,000 4,500,000 800,000 2,025,000 22,976,003 Total Capital Program Plan 43,332,027 14,396,540 16,954,430 22,915,200 34,055,200 20,525,000 152,178,397 39 40 Questions? 40