HomeMy WebLinkAboutFin Preliminary Budget FY2016-17CITY OF
Agenda Item No: 7.b
Meeting Date: May 2, 2016
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Mark Moses, Finance Director City Manager Approval:
SUBJECT: PRELIMINARY CITY OPERATING BUDGET FOR
FISCAL YEAR 2016-2017
RECOMMENDATION: ACCEPT REPORT AND PROVIDE DIRECTION TO STAFF
TO RETURN WITH FINAL BUDGET FOR ADOPTION
BACKGROUND: The purpose of this report is to provide the City Council and community with an
update on the City's general fund fiscal status, the status of other key funds, and a preliminary
operating budget for fiscal year 2016-2017.
Staff presented the City Council with a five-month budget review of the General Fund on
December 7, 2015, and a subsequent nine-month budget review of all City funds on April 18, 2016,
covering the status of current year (FYI5-16)fiscal performance and proposing certain budget
adjustments. During these two reviews, General Fund sources were increased by $615,000,
primarily from the true -up of the revenue baseline, following the closing of the books of the
previous fiscal year. This represented a 0.8% increase to the original projections set at
$73.8 million.
At the City Council meeting of December 7, 2015, the City Council approved several
recommendations presented by the City Manager that emerged from the City Council's public
workshop of October 26, 2015. These recommendations addressed needs in the areas of
homelessness, public safety, massage enforcement and technology. The provisions for a director -
level position to address homelessness issues, two fixed -term police officers, additional police
patrol on Fourth Street, and the continuation of enhanced massage enforcement, extend into fiscal
year 2016-2017 and are incorporated into the preliminary budget.
As this report is being prepared, it does not appear that the State budget will have any significant,
detrimental impacts on the City's budget. This report will cover the following:
1. Update on current year (fiscal 2015-2016) financial performance
2. Preliminary, fiscal year 2016-2017 General Fund operating budget
3. Preliminary, fiscal year 2016-2017 budgets for other City Funds
4. Next steps for adoption of fiscal year 2016-2017 budget.
FOR CITY CLERK ONLY
File No.: 8-5
Council Meeting: 05/02/2016
Disposition: Accepted Report
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paue: 2
The key elements, assumptions and recommendations contained in this report were reviewed and
discussed at the Finance Committee meeting of April 26, 2016. The Finance Committee requested
that staff bring this report to the City Council for consideration.
ANALYSIS: The City's financial position continues to improve; although the rate of revenue
growth, approximately four percent, has slowed from its peak of twelve percent in fiscal year
2012-2013. The City entered the current fiscal year with its minimum General Fund emergency
reserve level (10% of expenditures) met for the first time in a decade. The City continues to
maintain the actuarially -established reserve levels for worker's compensation and general liability
claims and has been fully funding its employee and retiree benefit costs with current revenues since
fiscal year 2012-2013.
Following years of deferring critical maintenance and upkeep of City facilities, the City has
executed approximately $3.2 million over the past four years in projects designed to maintain and
extend the life of its facilities. This included the City Hall HVAC upgrade, and other facility
improvements to City Hall, B Street Community Center and Boro Community Center. During the
same period, the City has invested substantially in the replacement of critical vehicles and
equipment. Although a number of needs remain inadequately funded, particularly in the area of City
buildings, public infrastructure, and technology, the passage of Measure E has provided additional
revenues of which the City Council has dedicated a portion (1/4 percent from the 3/4 percent
transactions and use tax) to address critical public safety buildings and infrastructure needs through
the newly established San Rafael Essential Facilities project. By June 30, 2016, the City is projected
to have raised $8.5 million towards the project.
Operationally, while the number and complexity of City programs has increased over the past
several years, the City's staffing level is equivalent to that of the late 1990s, and its technology short
of current industry standards. These issues are being addressed incrementally, and within the
confines of available resources.
PROJECTED FISCAL YEAR 2015-2016 OPERATING RESULTS
Fiscal Year 2015-2016 is projected to close with positive General Fund operating results of
$5.7 million, of which the City Council has dedicated $3.8 million to the Measure E set-aside for
public safety facilities, $1.0 million to the fiscal year 2015-2016 Capital Improvement Program,
$0.4 million to maintain the Emergency reserve above its minimum target, and $0.4 million to other
public safety infrastructure, leaving approximately $215K unallocated.
Other Funds are on target to finish the year within their current budgeted appropriations.
FISCAL YEAR 2016-2017 GENERAL FUND BUDGET DEVELOPMENT
The preliminary fiscal year 2016-2017 budget projects approximately $2.8 million in additional,
ongoing resources and approximately $3.0 million in additional, planned operational spending
(uses), compared to the projected results of the current fiscal year. In addition to the operational
uses, the City anticipates transferring all of the accumulated Measure E — Public Safety Facility
funds to the San Rafael Essential Facilities project as construction commences during the year. It is
anticipated that these funds will be supplemented by a bond issuance prior to the end of the fiscal
year.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 3
The following table presents the projected, current year activity (FY2015-16) and provides a
comparison to the preliminary General Fund budget for the upcoming year (FY2016-17):
Figure 1
General Fund Projected
FY 2015-16
Revenues (ongoing sources) $71,689,861
Revenues (special/one-time)
$1,550,000
P.O. Rollover
32,255
Transfers in
1,095,000
Total Resources
$74,367,116
Expenditures (baseline)
$
$69,732,000
Preliminary
Change from
Change
FY 2016-17
previous
from
(rounded)
year
previous
Total Uses
$68,654,461
year
$74,513,000
$2,823,139
3.9%
1,212,520
$3,764,590
$4,040,000
$75,725,520
$1,358,404
1.8%
Expenditures (baseline)
$67,079,801
$69,732,000
Measure E Operational Spending
83,410
0
Transfers out — operating
1,431,250
1,700,000
Transfer out — Homeless
60,000
200,000
Total Uses
$68,654,461
$71,632,000
Operating Results
$5,712,655
$4,093,520
Measure E set-aside &
$3,764,590
$4,040,000
SREF Capital Transfers
Emergency reserve
365,000
260,000
CIP & Infrastructure
1,400,000
Use of prior period funds
(32,255)
(742,500)
Net After Allocations
$215,320
$536,020
$2,652,199 4.0%
A detailed schedule of revenues, expenditures, and transfers in and out for the General Fund is
attached to this report (Exhibit I).
Revenue Factors
In fiscal year 2016-2017, General Fund revenues from ongoing sources are projected to grow by
$2.8 million, or 3.9%, over those of the previous year, reflecting local economic growth. The
overall year -over -year resource growth is only 1.8%, due to $1,550,000 of special, one-time
sources. These items impact fiscal year 2015-2016, but will not repeat in future years. The two most
noteworthy of these are (1) deferred sales tax payments of $1.2 million stemming from the "Triple
Flip" and delayed payments of approximately $200,000 for pre -2004 State mandates generated
these funds.
Property Tax (including property transfer taxes) is projected to increase by approximately 4.75% in
fiscal year 2016-2017, and provide $795 thousand in additional revenues over the current year.
Sales Tax from ongoing sources is projected to increase by approximately 4.0%, and contribute an
additional $846 thousand. Transactions and Use Tax (Measure E) is projected to increase by
approximately $462 thousand, or 4.0%. All other revenues, including business tax, franchise tax,
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 4
charges for services and permit fees are expected to experience modest year -over -year increases
ranging from 2.0-4.0%.
Ex enditure Factors
Expenditures are projected to grow by 4.0%, or $2.7 million, in fiscal year 2016-2017. The growth
in expenditures is fueled by personnel costs, including step increases and other contractual
commitments, of $1.9 million. Non -personnel expenditures, including supplies, contractual services,
internal services and utility costs are projected to increase by $0.6 million, or 4.1% over the
previous year. The increase was primarily driven by ongoing technology replacement and support
costs, and utility costs and increased funding requirements for the risk management program.
MCERA pension contribution rates are expected increased by approximately 0.3% of eligible
payroll, or approximately $ l OOK. Total contributions to MCERA are expected to increase by
approximately $600K, as a result of increasing payroll costs.
Measure E set-aside for public safety facilities
In May 2014, the City Council directed staff to establish a reserve within the General Fund for
public safety facilities improvements. This reserve is to be funded by the additional one-quarter
percent transactions and use tax (TUT) provided by the Measure E (three-quarter percent TUT) over
that of Measure S (one-half percent) which Measure E supplanted on April 1, 2014. As of
June 30, 2016, this reserve is projected to have collected $8.5 million. The collections represent tax
proceeds collected since April 1, 2014, and the expenditures are limited to those in direct support of
the San Rafael Essential Facilities project. It is estimated that during FY16-17, an additional $4.0
million will be collected and transferred to the project. Project construction will be funded from a
combination of accumulated funds and the issuance of debt. Any debt issued will be repaid from
future Measure E revenues.
A more detailed summary of the preliminary General Fund budget is attached to this report.
OTHER FUNDS
Successor Agency
Prior to the State Legislature -initiated dissolution of the Redevelopment Agency in January 2012,
the City Council met as the Redevelopment Agency, and approved its annual budget as part of the
City-wide budget process. Under the current legislation, the Successor Agency is not required to
prepare an annual budget. All funding of the Successor Agency follows a different process specified
in the new law: Funding must be approved by the Successor Agency's Oversight Board and the
California Department of Finance for six month periods. The economic development -related
functions of the former Redevelopment Agency have been transferred to the General Fund. The San
Rafael Successor Agency Oversight Board has approved the minimum administrative expenses of
$250,000 annually for City staff time devoted to the dissolution of the former Redevelopment
Agency.
The General Fund continues to have some financial exposure to the activities of the Successor
Agency. The Successor Agency Oversight Board, the Department of Finance and the State
Controller's Office are charged with making decisions pertaining to the disposal of Successor
Agency assets as well as the resources allocated to future funding the administration of the
Successor Agency as it winds down. Thus far, decisions imposed on the Successor Agency have not
had a detrimental impact on the General Fund.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / PaLye: 5
Capital Improvement Program
The Capital Improvement Program (CIP) will be covered in a separate report presented by Public
Works. The appropriations to be carried -over into fiscal year 2016-2017 from previous years are
expected to equal approximately $10.0 million and will be combined with new appropriations from
special revenue, grants and other capital funding sources for the approved projects.
Special Revenue and Grant Funds
These funds have restricted uses, based on their respective sources. One significant fund in this
group is the Paramedic Fund, which is presented to the City Council as a separate item in order to
establish the Paramedic Tax rates for fiscal year 2016-2017. The fund has planned expenditures of
$7.1 million for the upcoming fiscal year, of which $4.4 million, or 62%, comes from the Paramedic
Tax. The balance of the funding of this activity comes from third -party billings and other cost
recovery for emergency medical response services.
The Homeless Initiative fund was established to fund the Downtown Streets Team and other efforts
to support the actions recommended by the Homelessness Ad hoc Subcommittee and approved by
the City Council. The source of funding includes contributions from the City, County of Marin and
other local organizations. Fiscal year 2016-2017 marks the fourth full year of operations for this
program and the first year with dedicated director -level oversight.
Measure A — Open Space is now in its third full year. Funding for this activity is primarily provided
by a nine-year, county -wide sales tax that is managed by the County of Marin, with the City
providing discretionary contributions as needed. The focus for fiscal year 2016-2017, for which
$440,000 in revenues is projected, remains on recreational facility improvements and open -space
enjoyment and safety. The fiscal year 2016-2017 Measure A — Open Space Workplan, will be
presented to the City Council separately on May 16.
Measure C, the Library parcel tax, is included in this group and is funded adequately to ensure
continuity of service levels in the next, and final, fiscal year. The purpose of the tax is to "augment
the capacity of the City of San Rafael to provide quality library services to its residents." A
successor measure to succeed this tax will be on the ballot in June.
The Recreation and Childcare Funds, operated by Community Services are anticipating spending
plans of $4.1 million and $4.0 million, respectively. Fee income covers approximately 68% of the
Recreation budget, while fee and grant income cover 97% of the Childcare/Preschool budget.
Other significant funds in this category include Gas Tax, Sewer Maintenance, Storm Water, and
Business Improvement District. These funds are adequately funded to execute their respective
spending plans for fiscal year 2016-2017.
Enterprise Fund (Parking Services)
The sole fund in this category is the Parking Services Fund. Currently, operations are funded via
parking fees and fines, and fund balance is the only resource with which to cover capital
improvements. The parking structures and lots have deferred maintenance issues that will need to be
addressed over the next few years, in order to preserve these revenue -generating assets. In 2014,
Public Works engaged an engineering firm to evaluate current conditions of the garage structures
and provide recommendations for repair and maintenance items to be addressed. The study
determined that the four city owned structures ( 3rd/Lootens, 3rd/A, 3rd/C, 5th/C) require significant
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 6
structural repairs due to deferred maintenance. For example, it is estimated that one of the locations
to be repaired, 3rd/Lootens, will cost approximately $525,000. The operating and capital expenditure
budgets for this fund are $4.5 million and $537 thousand, respectively.
Internal Service Funds and Capital Replacement Funds
These funds are used to manage services that are delivered throughout the organization. For
example, computer replacement, employee benefits, workers compensation, general liability and
vehicle replacement are funded via internal charges to the funds that utilize these respective
services. These funds have sufficient resources to support services for fiscal year 2016-2017. The
technology internal service fund and the capital replacement funds (e.g., building maintenance,
equipment and vehicle replacement) remain underfunded with respect to the City's long-term needs,
but are adequately funded in the short-term.
CITY-WIDE FUND SUMMARY
The following table shows the projected July 1, 2016, beginning balance for all major fund
classifications, and incorporates the projected revenues and planned expenditures that have been
incorporated into this preliminary budget.
Figure 2
STAFFING
The City's current level of regular staffing, 390 FTE (full-time equivalent regular positions), is
12 percent below the peak of 445 FTE that was supported in fiscal year 2007-2008. The erosion of
staffing levels has significantly reduced the City's organizational capacity, and leaves few resources
available to proactively manage emerging issues, or to ensure smooth and consistent continuity of
services. The management team has considered the impact of the severe restructuring on the City's
ability to effectively and sustainably deliver services upon which the residents depend.
To address the most severe capacity deficiencies while tempering long-term operating
commitments, the City has 9.26 full-time equivalent fixed -term positions. Three of these positions
Projected
Sources
Uses
Projected
Fund
Balances
(Revenues
(Expenditures
Balance
July 1, 2016
and
and
June 30, 2017
Transfers)
Transfers)
General Fund
$16,000,229
$75,725,520
$75,672,000
$16,053,749
Special Revenue/Grant/Trust
24,932,883
26,034,173
27,271,015
23,696,041
Enterprise (Parking)
1,663,489
5,051,500
4,795,418
1,919,571
Internal Service /
5,980,610
13,318,240
17,222,212
2,076,638
Capital Replacement
Assessment Districts
166,023
430
0
166,453
Misc Capital Project Funds
1,166,385
4,043,070
4,040,000
1,169,455
Adj for ISF Charges/Transfers
0
(19,472,377)
(19,472,377)
0
City-wide Totals
$49,909,619
$104,700,556
$109,528,268
$45,081,907
STAFFING
The City's current level of regular staffing, 390 FTE (full-time equivalent regular positions), is
12 percent below the peak of 445 FTE that was supported in fiscal year 2007-2008. The erosion of
staffing levels has significantly reduced the City's organizational capacity, and leaves few resources
available to proactively manage emerging issues, or to ensure smooth and consistent continuity of
services. The management team has considered the impact of the severe restructuring on the City's
ability to effectively and sustainably deliver services upon which the residents depend.
To address the most severe capacity deficiencies while tempering long-term operating
commitments, the City has 9.26 full-time equivalent fixed -term positions. Three of these positions
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 7
were added as of January 1, 2016: two police officers authorized for two and one-half years, and a
Director of Homeless Planning & Outreach, authorized for three years.
In addition to the continued implementation of these changes, two personnel -related
recommendations are being presented for consideration:
The Fire Department is proposing to reallocate resources to strategically address the increasing need
for training and skill department, as the Department continues to lose experienced staff to
retirement. Currently, half of the operations staff has fewer than five years of experience. The
addition of a Battalion Chief / EMS Training Officer will help address this need. The funding for
this position is expected to be neutral, given that an existing vacant Deputy Fire Marshall position
will be eliminated. In addition, a vacant Fire Prevention Inspector II will be eliminated in favor of a
less expensive Fire Prevention Coordinator.
The Police Department is requesting a one-year, this fixed term position to purge evidence that no
longer needs to be maintained in the evidence room of the Police Department or at off-site storage
facilities. This evidence needs to be purged before the move into the new public safety facility, in
order to avoid moving extraneous materials. The person hired for this position will release or
destroy property and evidence in accordance with applicable laws and court orders. The person will
maintain logs, records and files of property and evidence, which will help protect the City of San
Rafael from possible claims where property is returned or destroyed. There will be sufficient
savings in the current year (i.e., fiscal year 2015-2016) Police Department operating budget to fund
this position.
Figure 3
Department Personnel Action
Fire
Police
Eliminate 1.0 FTE Deputy Fire Marshal
Eliminate 1.0 FTE Fire Prevention Inspector II
Add 1.0 FTE Fire Prevention Coordinator
Add 1.0 FTE Battalion Chief / EMS Training
General Fund
Net Add'1 Costs
none
Add 1.0 one-year, fixed -term Evidence Tech FY15/16 - $67,700
(budgeted at 32 hours per week) FY 16/17- $0
Funding
Source(s)
General Fund
EMS Fund
unused
department
funds from
FY15-16
The proposed actions maintain the full-time, regular FTE headcount at 390.15. Fixed -term positions
are increased under this recommendation by 1.00, from 9.26 to 10.26.
Staff is preparing to return to City Council at the meeting of May 16, 2016 with the final
Fiscal Year 2016-2017 City-wide Budget for adoption.
Following the adoption, staff will return to City Council in June 2016 with the following items.
1. Fiscal Year 2015-2016 Final Budget Adjustments (if necessary)
2. GANN Appropriations Limit
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 8
FISCAL IMPACT: The preliminary fiscal year 2016-2017 budgets have been prepared for all
funds. Funding sources are sufficient to support the preliminary spending plans presented. The
preliminary General Fund budget does not use borrowed monies or reserves as resources with
which to fund current period operational expenditures.
RECOMMEDED ACTION: Direct staff to return on May 16, 2016 with a final, City-wide budget,
incorporating modifications or changes discussed at this City Council meeting.
ATTACHMENT
General Fund Preliminary Budget FY 2016-2017
GENERALFUND
PROPOSED BUDGET FY 2016-2017
REVENUES & OTHER OPERATIONAL SOURCES
Taxes
Property Tax and related $ 17,528,000
Sales Tax / Triple Flip 21,883,000
Sales Tax -Measure E 12,121,000
Franchise Tax 3,456,000
Business Tax 2,887,000
Transient Occupancy Tax 2,825,000
Other Aaencies
CSA #19 Fire Service 1,702,000
VLF Backfill 4,990,000
Other Agencies (Prop 172, Owner Prop Tax, State Mandate, Other agencies) 1,402,000
Other Revenues
Permits & Licenses (buildina. electrical. encroachment, use. alarm) 2,361,000
Fine & Forfeitures (traffic. vehicle. etc.) 483,000
Interest & Rents (investment earninas. rents. etc.) 285,000
Charaes for Services (includes dev't fees and Dlan review) 2,124,000
---Qiher_Beyenualslamaste_reimizurs�noanls._misc,- inrmml---------------------------------------------- 466,000-
----------------------------------SLLb-iotal:Rev_enUes--------------------------------------------S-------74.51 00-0-.
TRANSFERS IN
from Gas Tax 400,000
from Parking Services Fund - Admin. cost 436,000
frontEtzl4y�� 13�ticementFund=_P_QB siel�tRaXmsnl---------------------------------------------------- 376,520.
----------------------------------Sub-ictal: Transfers n ------------------------------------------S---------1212 520--
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
ZGTA_ LzOP_ERATMOBA.L SQURCES-------------------------------------------------------------S-------75.7
- - - - - - - - - - - - - - - - - - -
520-.
EXPENDITURES AND OTHER OPERATIONAL USES
Expenditures by Department
Finance
2,411,787
Non -Departmental
2,967,646
City Manager/City Council
2,671,283
City Clerk
516,439
Mgt Serv: Adm,IT,HR,Pkg.Emg
1,155,912
City Attorney
926,710
Community Development
3,845,311
Police
23,374,866
Fire
17,800,521
Public Works
10,985,482
3,076,043
----------------------------------Sub_ atah-Emenditurea---------------------------------------- I------
6 9 7-32 0 0 0
OPERATIONAL TRANSFERS OUT
to Childcare Fund - Operating support -
to Recreation Fund - Operating support 1,700,000
14 Sp��iaJ_Be_v_en�a�F�ansL=_H9mels�s_Lniti�tiv�Prszle�f----------------------------------------------------200,000------------
----------------------------------Sub-total: Transfers -Out ---------------------------------------$--------19-011 Q0-0_.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
IMA_ L ORERATIONAI -U.SES-------------------------------------------------------------------5-------71-132 Q0-0_.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
.Hon--Onmiinra_Twnsfnrs_fMnasur-e_El_SanRafaeLE.asnntiaLEa-.iiitie..________________S-________4.A4A 00.0_.
EXHIBIT I
ROUTING SLIP / APPROVAL FORM
INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval
by the City Council. Save staff report (including this cover sheet) along
with all related attachments in the Team Drive (T:) --> CITY COUNCIL
AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT -
AGENDA TOPIC]
Agenda Item #
Date of Meeting: 5/2/2016
From: Mark Moses
Department: Finance
Date: 4/27/2016
Topic: PRELIMINARY CITY OPERATING BUDGET FOR FISCAL YEAR 2016-2017
Subject: REVIEW OF THE PRELIMINARY CITY OPERATING BUDGET FOR FISCAL
YEAR 2016-2017
Type: ❑ Resolution ❑ Ordinance
❑ Professional Services Agreement ❑ Other:
APPROVALS
® Finance Director
Remarks: Ready for Attorney & CM
❑ City Attorney
Remarks:
❑ Author, review and accept City Attorney / Finance changes
Remarks:
® City Manager
Remarks:
Preliminary Budget
Fiscal Year 2016-2017
City Council Meeting
May 2, 2 016
C I TY OF
Presentation Agenda
FY201 5-16 Budget Status
Anticipated adjustments
Preliminary FY201 6-1 7 Operating Budget
General Fund
Other Funds
What staff is seeking...
No action tonight
Review status of FYI 5-16 financial
performance
Review Preliminary FYI 6-17 Budget
assumptions and recommendations;
provide comment & direction
Fiscal Year 2015-2016
Update
PY 2015-2016 General Fund
Since April 18 review...
No adjustments to revenue
projections
No adjustments to expenditure
projections
FY 2015-2016 Other Funds
Future action needed on some funds...
Adjust revenues and appropriations based
on actual operating activity (Recreation)
Transfer actual amount needed for SREF
from Measure E
No other anticipated changes
Will return to Council for action
Recap of key
General Fund allocations
FY 2015-2016
$3.8 million for Measure E Priorities
>$4001( for homelessness
$400K to Infrastructure Reserve
$2501( to Technology
$2251( for two additional police officers (6 months)
$101Kto Major Crimes Task Force
General Fund Emergency Reserve
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
$1.3 million
0.0%
June 2012
6.8 million
June 2013 June 2014
June 2015 June 2016
Fiscal Year 2016-2017
Proposed Budget
FY 2016-2017 General Fund Revenues
Key trends and assumptions...
Property tax +4.75%
Sales Tax +4.0%
Business Tax +3.00%
Transient Occupancy +3.0%
Development -related +3.0-4.0%
Overall revenues: $74.5 million 1.7%
(+3.9% w/o one-time items)
General Fund Revenue Trends
85,000
80,000
75,000
70,000
N 65,000
c
N 60,000
0
�— 55,000
50,000
45,000
40,000
35,000
DO O�
Fiscal Year OrV
'1; D� h rri
Revenue History: 2001 - 2015
Projections 2015-2019
FY07-08
revenues
not exceeded
until FY13-14
v'
�1
Measur
Ell
I
I
I
I
I
I
I
I
I
I
Other GF Revenue Highlights
Measure E - Transactions & Use Tax
$4.0 million projected for FYI 6-1 7 (3rd full year)
Set aside for public safety facilities (SREF)
Recorded in General Fund (segregated)
FY 2016-2017 Budget
Expenditure trends and assumptions...
Homeless Initiative
Major Crimes Task Force
Use of prior period funds for...
Additional police officers (2)
Enhanced 4t" Street patrol
Massage Ordinance Enforcement
Limited personnel changes with ongoing
commitments
FY 2016-2017 Budget
Expenditure trends and assumptions...
Fire: adding 2 / deleting 2 positions
Police: pre -funding fixed -term evidence tech;
converting 1
fixed -term
police
officer
to regular
(established
in 2013)
Overall GF Expenditures: $69.7 million X4.0%
Other funds (FY 2016-2017)
Parking Fund: $4.5 million
Paramedic Fund: $7.1 million
Measure "A" Open space/parks: tbd
Measure "C" Library parcel tax: $8771<
CIP (Gas Tax, Stormwater, Grants) $19.2 million
Recreation Fund: $4.1 million
Childcare Funds: $4.0 million
Next Steps
May 16
Final, proposed
adoption for FY
City-wide budget
2016-2017 budget
June 20 orJuly 5
Resolution amending FY201 5-2016
GANN Appropriations Limit
OIlS��t`�►,5,,%,���1
�Q�ESTION
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