HomeMy WebLinkAboutFin Budget FY2016-17CITY O
Agenda Item No: 5.b
Meeting Date: June 6, 2016
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE
Prepared by: Mark Moses City Manager Approval:
Finance Director
TOPIC: FINAL PROPOSED BUDGET FOR FISCAL YEAR 2016-2017
SUBJECT: RESOLUTION ADOPTING THE CITY OF SAN RAFAEL BUDGET FOR
FISCAL YEAR 2016-2017
RECOMMENDATION: ACCEPT REPORT AND ADOPT RESOLUTION AS
PRESENTED.
SUMMARY: This report presents the final proposed City-wide budget for fiscal year
2016-2017. It was presented in preliminary form on May 2, 2016, for public and City Council
review and comment. Ongoing General Fund operational expenditures are supported by current
period revenues, and the spending plans of all other funds are supported by projected revenues
and accumulated resources in their respective funds. Proposed appropriations City-wide total
$106,673,115.
BACKGROUND: The purpose of this report is to provide the City Council and community
with the proposed City-wide budget for fiscal year 2016-2017 which has been prepared for
adoption based on the direction provided at the City Council Meeting of May 2, 2016.
The budget is both a spending plan for the City's available financial resources and the legal
authority for City departments to spend these resources for public purposes. Through these
resources, services are provided to meet the needs of city residents. The City Council and City
staff respond to the community's needs in part through the budget which is intended to balance
not only revenues and costs, but also community priorities.
The City Council received an operating budget report and financial update at its meeting of
April 18, 2016, and discussed the preliminary fiscal year 2016-2017 budget at that time and
again, in greater detail on May 2, 2016. The Finance Committee reviewed the preliminary budget
assumptions and tentative results at its meeting of April 28, 2016, and this final proposed budget
at its meeting of May 10, 2016. These reports and discussions included the presentation of key
fiscal issues and financial assumptions that shaped the development of this annual operating
budget.
FOR CITY CLERK ONLY
File No.: 8-5
Council Meeting: 06/06/2016
Disposition: Resolution 14131
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
The preliminary General Fund Operating budget for fiscal year 2016-2017 that was presented on
May 2 marked the fourth consecutive year in which the planned ongoing expenditures for the
year are fully covered by current projected revenues. In addition to funding the current
operational service levels, the proposed budget includes provisions for the Homeless Initiative,
massage ordinance enforcement, Marin County Major Crimes Task Force, and enhanced
economic development.
Consistent with the direction provided by the City Council in May 2014, the additional one-
quarter percent sales tax revenues provided by Measure E, effective April 1, 2014 through
March 31, 2034, are being set aside to fund major construction and improvements to public
safety facilities (also referred to as the San Rafael Essential Facilities project).
Following its review of the preliminary City-wide budget for fiscal year 2016-2017, the City
Council directed staff to return with this budget for adoption.
This report will focus on the following:
1. Brief status of fiscal year 2015-2016 budget performance.
2. Proposed budget presented for all City funds for fiscal year 2016-2017.
ANALYSIS:
FISCAL YEAR 2015-2016
General Fund
Revenues: There have been no significant changes to fiscal year 2015-2016 revenues since the
May 2, 2016 report.
Expenditures: As fiscal year 2015-2016 draws to a close, the General Fund -supported activities
are performing within their respective budgets as amended by the City Council throughout the
year. If operational savings are identified through the fiscal year end process, we will return to
the City Council for direction on the disposition of those funds.
Other Funds
The evaluation of other funds will continue through May 2016, with recommended adjustments,
if any, being presented to the City Council prior to fiscal year-end. At this time, no major
adjustments are anticipated.
FISCAL YEAR 2016-2017 CITY-WIDE BUDGET
HIGHLIGHTS
Citywide Budget: The total proposed FY2016-2017 budget for the City is
$106,673,115. This sum reflects all funds and operations for the City, inclusive of
$4,807,372 in new appropriations for capital projects. These appropriations are supported
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
by FY2016-2017 revenue and other sources projected at $105,031,599 as well as by
funds retained from previous periods for capital projects.
❖ General Fund Budget: The General Fund portion of the City budget is balanced in that
FY2016-2017 appropriations, totaling $75,708,091, are fully supported by FY2016-2017
General Fund revenues and transfers in, projected at $75,725,520, and supplemented by
planned uses of accumulated sources of $809,500 ($742,500 designated by City Council
and $67,000 accumulated by the Police Department).
❖ Program funding: Included in the expenditure budgets are provisions for the following:
o Employee retirement obligations are fully -funded in accordance with actuarially -
determined contribution levels
o The Homeless Initiative Program is incorporated into the FY2016-2017 budget
o Enhanced Massage Ordinance Enforcement continues
o Major Crimes Task Force participation continues
❖ State Budget Impacts: As this staff report is being prepared, the State budget does not
rely on any new actions that would have a significant detrimental impact on the City's
budget.
Economic Environment
The California economy continues to rebound from the recession. Although the 5.8%
unemployment rate remains above the national average of 5.0%, it continues on a path towards
convergence with the national average. Personal income has rebounded over the past few years,
and the State continues to prosper from the flow of capital into the technology companies who
are attracted to California. Notwithstanding the State's $11.5 billion in projected reserves
(predicated on a preliminary $3.6 billion surplus for the upcoming fiscal year), major challenges
persist. The "wall of debt" which, when pension and retiree medical liabilities are considered,
reaches into the hundreds of billions of dollars.
Locally, the 3.2% Marin County unemployment rate is among the lowest in the State. According
to the Marin Economic Forum, the County added 3,000 payroll jobs and gained approximately
220 payroll businesses in 2015. Real personal income is projected to grow at an average rate of
2.5% over the next few years after inflation, and Marin County's taxable sales per capita are the
third highest in the State. Marin County median home prices are over $1.1 million and continue
to rise, while the recovery of commercial real estate has led to stable rents averaging $2.60 per
square foot.
General Fund
The City's General Fund accounts for most of the major services to residents and businesses
(such as police, fire suppression and prevention, planning, building, library, parks, streets,
engineering, traffic enforcement and management, cultural programs). The General Fund
operating -related appropriations for fiscal year 2016-2017 total approximately $71.7 million.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4
In addition, $4.0 million in non-operating transfers are anticipated for the San Rafael Essential
Facilities project, funded by Measure E Transactions and Use Tax (TUT) revenues. An
allocation of $260K is estimated to maintain the Emergency and cashflow reserve at its target
level. Finally, the City Council has directed the use of prior period funds in the amounts of
$742,500 and $67,000 for one-time, limited term operating needs.
The following table summarizes the detailed information provided in Exhibit I of the Resolution,
and presents the proposed fiscal year 2016-2017 budget with a comparison to the projected
ending performance for fiscal year 2015-2016. The proposed budget projects approximately $1.4
million, or 1.8%, in additional resources and approximately $3.0 million, or 4.4%, in additional
uses, compared to the projected results of the current fiscal year. The year -over -year increase in
revenues is impacted by $1.6 million in one-time revenues received in fiscal year 2015-2016.
The uses for fiscal year 2015-2016 included a one-time transfer of $1.0 million to support the
Capital Improvement Program.
Figure 1
Projected
Proposed
Change from
Change
General Fund
FY 2015-16
FY 2016-17
previous
from
year
previous
year
Revenues (ongoing sources)
$71,689,861
$74,513,000
$2,823,139
3.9%
Revenues (special/one-time)
$1,550,000
P.O. Rollover
32,255
Transfers in
1,095,000
1,212,520
Total Resources
$74,367,116
$75,725,520
$1,358,404
1.8%
Expenditures (baseline)
$66,979,801
$69,732,000
$2,752,199
4.1%
Measure E Operational Spending
83,410
0
Transfers out — operating
1,431,250
1,700,000
Transfer out — Homeless/MCCMC
160,000
236,091
Total Uses
$68,654,461
$71,668,091
$3,013,630
4.4%
Operating Results
$5,712,655
$4,057,429
Allocations
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 (Council)
(32,255)
(742,500)
Use of prior period funds (PD)
(67,000)
Net After Allocations
$215,320
$566,929
SAN RAFAEL CITY COUNCIL AGENDA REPORT / PaLye: 5
Revenue Trends and Assumptions:
Sales Tax:
After peaking above 10% during fiscal year 2014-2015, sales tax growth has plateaued. The
expected increase in fiscal year 2015-2016, when one-time adjustments are excluded, is
approximately 2.5%. With the assistance of the City's sales tax consultants, recurring sales tax
revenues are estimated to increase by 4.0% to $21.9 million in fiscal year 2016-2017.
Sales taxes account for 29% of General Fund revenues.
Property Tax:
The City's second largest tax generator is property tax. While the City did not experience the
level of property value declines seen in other areas of the state, revenues have stagnated for the
past several years. Based on the most recent county property tax roll information and property
transfer tax trends, we are projecting an increase of 4.75% to $17.5 million in fiscal year
2016-2017. Property taxes account for 24% of General Fund revenues.
Transaction & Use Tax (Measure E):
Revenues from this tax, which applies to most local retail sales are projected to reach
$12.1 million in fiscal year 2016-2017. One-third of these funds are allocated to public safety
facilities construction and improvements. Measure E revenues account for 16% of General Fund
Revenues.
Other General Fund Revenues:
Other revenues (including business tax, transient occupancy tax, development fees, Vehicle
License Fee backfill, permits, and charges for services) are expected to experience moderate
growth (i.e., 2 - 4%) over the next year. These revenues account for 31% of the budget.
Other, 311.
General Fund Revenues - $74.5 million
Sales Tax, 29%
...............
'f
Measure E.
(TUT), 1690 Property Tax,
24%
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 6
Expenditure Trends and Assumptions:
Expenditures are projected to grow by 4.1% in fiscal year 2016-2017. The annual expenditure
plan includes provisions for continued support of the Homeless Initiative, enhanced police patrol,
participation in the Major Crimes Task Force, and continued massage enforcement. The growth
in expenditures is also fueled by increases in personnel costs, including step increases,
contractual labor commitments, and a minor increase in the Marin County Employees
Retirement Association (MCERA) employer contribution rate. MCERA pension costs will
increase in fiscal year 2016-2017 by approximately $600 thousand. With respect to the City-wide
budget, MCERA contributions represent approximately 18% of total expenditures.
The following chart summarizes the fiscal year allocation of planned General Fund Expenditures
by major function. Additional detail is provided in Exhibit I.
Administration,
Technology,
Internal
Services; 12%—,-"
General Fund Expenditures - $69.7 million
Police; 34%
Council,
Manager, Clerk,
Attorney; 7% — •` `IIIIIIII"""" ""'
.\\\\\ ..., niii.....................�
.�"""""'IIIIIIiiiiiiiiiiiiiiiiiiii4Rj
Fire; 26%
Community-,//��\\\\\\\\\:::::::::::......:�I���
Development; / \ .... .........,
5% Public Works;
16%
Other Funds
Successor Agency
Prior to the State Legislature -initiated dissolution of the Redevelopment Agency in January
2012, 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. Funding for 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 fully transferred
to the City Manager's office. The San Rafael Successor Agency Oversight Board has approved
the minimum allowable administrative expenses of $250,000 annually for City staff time and
other costs associated with the dissolution of the former Redevelopment Agency.
Capital Improvement Program (CIP)
In a separate report to the City Council on March 16, 2015, Public Works staff presented a three-
year Capital Improvement Program for fiscal years 2015-2016 through 2017-2018. This
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7
document identified projects that impact all segments of San Rafael's infrastructure, including
but not limited to City -maintained roads, pedestrian and bicyclist facilities, traffic control
networks, drainage systems, buildings, parks, parking facilities, etc. The report specifically
identified the projects planned for fiscal year 2015-2016. Since that time, there have been
changes to the timing of projects caused primarily by other unanticipated projects, unsuccessful
bidding processes, project reprioritization due to unanticipated staff allocation for regional
projects related to SMART, and unanticipated staffing shortfalls. The CIP, as presented at that
time, was challenged by capital project funding shortages beyond the first year of the CIP and
the ability to ensure that grant -supported projects have sufficient project management and
matching funds to take full advantage of grants. Once the CIP is updated, in early fiscal year
2016-2017, additional recommendations may be brought forward with respect to the use of
unprogrammed funds.
Special Revenue and Grant Funds
These funds have restricted uses, based on their respective sources. One significant fund in this
group is the Emergency Medical Services/Paramedic Fund (EMS), which was presented to the
City Council on May 2, 2016, 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 primarily from third -party recovery for emergency medical response and transport
services. The spending plan will not require an increase for taxpayers in San Rafael, County
Services Area #13, or County Services Area #19, who pay $89 per residential living unit. In the
other area served, Marinwood CFD, rates will remain at the tax rate cap of $85 per residential
living unit.
The EMS fund is projected to accumulate approximately $1.7 million in fund balance by
June 30, 2017. Staff recommends that $1 million be retained as an operating reserve to mitigate
unexpected revenues shortfalls as the primary revenue services include revenue sources whose
long-term status is uncertain.
Of this balance, staff recommends that $700 thousand be allocated to capital improvements
(e.g., temporary relocation of staff displaced by the need to renovate facilities used to deliver
emergency medical services, replacement or upgrade to ambulance bays at fire stations, etc.)
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 Council Subcommittee
and approved by the City Council. The source of funding includes contributions from the City
and a number of local organizations. Fiscal year 2016-2017 marks the fourth full year of
operations for this program, and includes provisions for the recently hired Director of Homeless
Policy and Outreach, ongoing mental health outreach and additional enforcement resources from
the Police Department, as well as the continued commitment to a series of contributions to the
Marin County Council of Mayors and Councilmembers Community Homeless Fund. A new
contract for the Downtown Streets Team will be brought to the City Council prior to the
expiration of the current contract on June 30, 2016.
The Measure A Open Space Program is in its third 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
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 8
which $440 thousand 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 is was presented separately at the City Council meeting of May 16, 2016.
The Measure C Library parcel tax is included in this group and is funded adequately to ensure
continuity of service levels in the next fiscal year. In June 2010, the citizens of San Rafael passed
Measure C in order to "augment the capacity of the City of San Rafael to provide quality library
services to its residents." In fiscal year 2016-2017, the final year of this tax, projected revenues
of $877 thousand will be dedicated to library hours, equipment, materials, and services for
children, teens and adults. Since the inception of Measure C, $541 thousand has been set aside in
the capital reserve. The allocation of these special tax proceeds is consistent with the long-term
strategic recommendations presented by the Library Director in December 2012. A successor
measure will be on the ballot on June 7, in order to provide a continuity of resources upon the
expiration of Measure C.
The Recreation and Childcare Funds, operated by Community Services, are anticipating
spending plans of $4.4 million and $3.9 million, respectively. Fee income covers 68% of the
Recreation budget, while fee and grant income cover 97% of the Childcare budget. The
additional funding for these programs is provided by the General Fund.
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.
Parking Fund
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 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 budget
for this fund is $4.8 million.
Internal Service Funds and Capital Replacement Funds
These funds are used to manage services that are delivered within 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 capital replacement funds (vehicles, City facilities) remain
underfunded with respect to the City's long-term needs.
Status of Pension Funding
The City's Pension Funding Policy requires that the Finance Director and City Manager report
on the status of pension funding as part of the annual budget adoption process.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 9
The most recent pension actuarial valuation was prepared as of June 30, 2015 and presented to
and approved by the MCERA Board on April 13, 2016. This valuation was used to determine the
contribution rates for fiscal year 2015-2016. The composite rate for the City of San Rafael will
be 60.95 percent, a 0.28 percent increase from the current rate of 60.67%. The budgeted pension
contribution for fiscal year 2016-2017 provides full funding for the required contribution.
Staff believes that increases in contribution rates are likely in fiscal year 2017-2018, as it appears
that MCERA will fall short of the investment target of 7.25% in fiscal year 2015-2016. Aside
from adjustments due to investment performance, the relatively stable rates are expected for the
next few years. The City has dedicated a portion of its employee retirement reserve to buffer the
impact of unexpected increases. This reserve, which currently totals $2.1 million, is also used to
accumulate payments for debt service on the $4.5 million pension obligation bonds, issued in
2010; and supplementary payments to MCERA.
Fund Balances and Reserves
All funds are projected to have a positive fund balance as of July 1, 2016, as well as
June 30, 2017, under the proposed budget. General Fund Emergency Reserves are projected to
increase from $6.5 million to $6.8 million, or 10% of General Fund expenditures, maintaining
the minimum target reserve levels. There are sufficient funds retained in the general liability and
workers compensation reserves to fund projected claims in those respective areas.
Citv-wide Summary
The following table summarizes the appropriations found in Exhibit II of the Resolution, which
provides the schedule of consolidated fund activities for fiscal year 2016-2017. Staff will return
to the City Council with any amendments prompted by the final disposition of the Capital
Improvement Program. Additionally, there may be adjustments needed once new MOUs are
established with the City's labor bargaining groups, which will return to the City Council via the
budget amendment process.
Figure 2
Projected
Sources
Uses
Projected
Fund
Balances
(Revenues and
(Expenditures
Balance
July 1, 2016
Transfers)
and Transfers)
June 30, 2017
General Fund
$16,000,229
$75,725,520
$75,708,091
$16,017,658
Special Revenue/Grant
25,627,610
26,439,007
27,176,916
24,889,701
Enterprise (Parking)
1,663,489
5,051,500
4,805,418
1,909,571
Assessment Districts
466,361
430
0
466,791
Capital Project Funds
866,046
4,043,070
4,040,000
869,116
Fiduciary Funds
487,434
0
0
487,434
Internal Service/Replacement
7,531,225
13,331,550
14,502,168
6,360,607
Adj for ISF Charges/Transfers
0
(19,559,478)
(19,559,478)
0
City-wide Totals
$52,642,394
$105,031,599
$106,673,115
$51,000,878
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paye: 10
Staffing and Organizational Cai)acity:
For the past few years, most staffing additions have been either fixed -term positions, or based on
the elimination of other positions in order to keep expenditures from exceeding revenues, while
attempting to address some of the operational staffing challenges we face. The proposed changes
by the Fire Department strategically address the increasing need for training and skill in the
department, as the department continues to lose experienced staff to retirement, and provides a
more efficient use of resources for fire prevention outreach and education activities, in addition
to more routine inspection. This request offers a neutral impact on headcount and costs.
Figure 3
Department Personnel Action General Fund Funding
Net Add'l Costs Source(s)
Fire Eliminate 1.0 FTE Deputy Fire Marshal
Eliminate 1.0 FTE Fire Prevention Inspector II None General Fund
-------------------------------------------- EMS Fund
Add 1.0 FTE Fire Prevention Specialist
Add 1.0 FTE Battalion Chief / EMS Training
One of the proposed personnel changes will require the creation of the following new
classification:
Classification Salary Range* Bargaining Unit
Fire Prevention Specialist $4,991 - $6,066 per month. SEIU Local 1021
* - Subject to adjustment based on outcome of negotiations.
The proposed changes by the Police Department (1) address a temporary need to resolve a
backlog of evidence storage and management in preparation for the relocation of the evidence
room to the new public agency facility, and (2) convert to regular status a police officer patrol
position that was added as a fixed -term position three years ago as part of the Homeless Initiative
and that has since been incorporated into the Police Department's ongoing operating budget.
Figure 4
Department Personnel Action
Police Add 1.0 one-year, fixed -term Police
Evidence and Property Technician
(budgeted at 32 hours per week)
Convert 1.0 Fixed -term police officer to 1.0
regular, ongoing term.
General Fund
Net Add'l Costs
FY15/16 - $67,700
FY 16/17- $0
FY16/17- $0
Funding
Source(s)
unused
department
funds from
FY15-16
The proposed actions increase the full-time, regular FTE headcount by 1.0 to 391.15. Fixed -term
positions remain constant at 12.26. The history and detail for all authorized positions is presented
in Exhibit III of the Resolution.
FISCAL IMPACT: By approving the Resolution as presented, the City Council is authorizing
the levels of expenditures, within funds, for the 2016-2017 fiscal year. The proposed budgets
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Paae: 11
reflect all assumptions outlined and incorporate direction received from the City Council through
its meeting of May 16, 2016.
The fiscal year 2016-2017 Budget Resolution also provides for the "roll over" of unspent capital
project funds from 2015-2016 (estimated at $10 million) for projects that will not be completed
by June 30, 2016. Capital project spending occurs each year by appropriating accumulated funds
(e.g., gas tax, traffic mitigation, etc.), in addition to new revenue sources. By carrying over the
unspent portion of a project's budget into the subsequent year, capital project budget
performance is easier to track because the same budget authority is not duplicated for unspent
funds. This also makes it easier to match budgeted costs with actual expenditures.
Similarly, the Budget Resolution provides for the "roll over" of active purchase orders that will
not be completed by year-end. This provides for operational continuity and avoids having to re -
budget expenditures that were previously authorized.
Staff will return to the City Council with two follow-up actions:
(1) Budget Amendments required to complete the business of fiscal year 2015-2016; and
(2) Adopt GANN appropriations limit for the fiscal year 2016-2017 adopted budget.
OPTIONS: The City Council can choose to either:
(1) Accept the reports, recommendations and Resolution as presented; or
(2) Make modifications to the recommendations and/or Resolution.
RECOMMENDATION: Staff recommends that City Council accept the report and adopt the
Resolution as presented.
ATTACHMENTS: Resolution and Exhibits I, II, III
WACouncil Material\Staff Reports\2016\FIN_16-17 Final City Budget06-06-16.doc
RESOLUTION NO. 14131
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL APPROVING THE CITY-WIDE BUDGET FOR THE FISCAL
YEAR 2016-2017 AND PROVIDING FOR THE APPROPRIATIONS AND
EXPENDITURE OF ALL SUMS SET FORTH IN SAID BUDGET IN THE
AMOUNT OF $106,673,115
WHEREAS, the City Manager has submitted to the San Rafael City Council a
Preliminary Budget for the fiscal year July 1, 2016 - June 30, 2017; and
WHEREAS, the City Council held public meetings on operational priorities, and
preliminary budgets for fiscal year 2016-2017, on April 18, 2016 and May 2, 2016, where all
interested persons were heard; and
WHEREAS, after examination, deliberation and due consideration of the
Preliminary Budget and staff recommendations, the San Rafael City Council provided direction to
the City Manager, and the City Manager has submitted a Proposed Budget; and
WHEREAS, it is the intention of this Council to adopt said Proposed Budget
submitted by the City Manager as the approved budget for the fiscal year 2016-2017; and
WHEREAS, it is the intention of this Council to carry forward unspent capital
projects resources funded in fiscal year 2015-2016 to complete the balance of these projects in the
2016-2017 fiscal year; and
WHEREAS, it is the intention of this Council to carry forward unspent operational
funds from fiscal year 2015-2016 encumbered through approved, active purchase orders to
complete the balance of these purchases in the 2016-2017 fiscal year.
NOW, THEREFORE, BE IT RESOLVED by the San Rafael City Council that:
The City Manager's Proposed one-year budget for the City of San Rafael for the fiscal year July
1, 2016 through June 30, 2017, is hereby adopted, with net appropriations of $106,673,115.
General Fund operational uses total $71,668,091 as presented in Exhibit I attached hereto and
incorporated herein. A total of $27,176,916 is appropriated for special revenue and grant
activities, $4,805,418 for the parking enterprise, $4,040,000 for capital projects, and
$14,502,168 for internal service funds and asset replacement as presented in Exhibit II attached
hereto and incorporated herein.
2. The sums of money therein set forth are hereby appropriated from the revenues of the City to
the departments, functions, programs and funds therein set forth for expenditure during the
fiscal year 2016-2017.
3. The budget provides funding for 401.41 of 403.41 full-time equivalent, authorized positions as
presented in Exhibit III attached hereto and incorporated herein.
4. The following personnel actions will be implemented, effective July 1, 2016:
A. Eliminate 1.0 Deputy Fire Marshall Position from budgeted headcount and add
1.0 FTE with the new position/classification of Fire Prevention Specialist, with
a salary range of $4,991 to $6,066, to be adjusted in a manner consistent with
the SEN Local 1021 July 1, 2016 Memorandum of Understanding; and
B. Eliminate 1.0 Deputy Fire Marshal position from the authorized positions and
add 1.0 FTE Battalion Chief; and
C. Add 1.0 fixed -term Police Evidence and Property Technician for one-year; and
D. Convert 1.0 fixed term Police Officer to 1.0 regular (ongoing term) Police
Officer.
5. The City of San Rafael will carry forward unspent operational funds from fiscal year 2015-2016
encumbered through approved, active purchase orders, and reappropriate these funds in fiscal
year 2016-2017 to be used solely to pay for the remaining portion of City Council authorized
expenditures in the originating funds.
6. The City of San Rafael will carry forward unspent capital project funds from fiscal year
2015-2016 and reappropriate these funds in fiscal year 2016-2017 to be used solely to pay for
the remaining portion of City Council authorized expenditures for street, facility, storm drain,
traffic mitigation, park and other long-term capital projects started in the 2015-2016 or prior
fiscal years.
7. Transfers are authorized from the General Fund to the San Rafael Essential Facilities capital
project from current Measure E revenues and Measure E Public Safety Facility accumulated
funds, for the purpose of funding the San Rafael Essential Facilities project as necessitated by
actual authorized capital expenditures.
8. The sum of $700,000 will be set aside in the Emergency Medical Services Fund balance for the
purpose of funding future capital expenditures necessary to support the facilities used to deliver
emergency medical transportation and related paramedic services.
I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the
Council of said City on Monday, the 6th day of June 2016, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ESTHER C. BEMNE, City Clerk
GENERALFUND
PROPOSED BUDGET FY 2016-2017
REVENUES & OTHER OPERATIONAL SOURCES
Taxes
Property Tax and related
Sales Tax
Sales Tax -Measure E
Franchise Tax
Business Tax
Transient Occupancy Tax
Other Aaencies
CSA #19 Fire Service
VLF Backfill
Other Agencies (Prop 172, Owner Prop Tax, State Mandate, Other agencies)
Other Revenues
$ 17,528,000
21,883,000
12,121,000
3,456,000
2,887,000
2,825,000
1,702,000
4,990,000
1,402,000
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_[eimizurs�noanIs. _misC'_ inaQml-----------------------------------------------
466_000
----------------------------------SLLb o_tal:ReY_enues---------------------------------------------$-------7.4.513 QOQ_
TRANSFERS IN
from Gas Tax 400,000
from Parking Services Fund - Admin. cost 436,000
frontEtzl4y�a13�ti[ementFund=_P_QB siel�tRaXmsnl---------------------------------------------------- 376,520
----------------------------------Sub-ictal: Transfers n ------------------------------------------- $--------- 1.2.11.52Q_
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
ZGTA_ LzOP_ERATJNS_SOUROES-----------------------------------------------------------------$-------7.5.725
- - - - - - - - - - - - - - -
52Q_
EXPENDITURES AND OTHER OPERATIONAL USES
Expenditures by Department
Finance
2,411,787
Non -Departmental
2,081,073
City Manager/City Council
2,921,283
City Clerk
516,439
Mgt Serv: Adm,IT,HR,Pkg
1,155,912
City Attorney
926,710
Community Development
3,845,311
Police
23,621,427
Fire
17,989,258
Public Works
11,186,757
3,076,043
----------------------------------Sub-fatal - xamenditurea-----------------------------------------$-------Q9.732.Q0Q_.
OPERATIONAL TRANSFERS OUT
to Childcare Fund - Operating support -
to Recreation Fund - Operating support 1,700,000
236,091
14 �p��iaJ_Be_v_en�a�F�ansL=_H9mels�s_Lniti�tiv�Prszle�f----------------------------------------------------------------
----------------------------------Sub-total: Transfers -Out ----------------------------------------$---------1.9 Iz Q9t_.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
IOTA_ L-S?P_ERATING_llSES-----------------------------------------------------------------------$-------7.1.M9.Q9t_.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
.Nan--Onmiinra_Twnsfnrs_fMnasur-e_El_SanRafaeL.F.IsnntiaLEar.iiitiesl________________$________ A.0-40,0-0.11-
EXHIBIT I
EXHIBIT II
CITY OF SAN RAFAEL
CONSOLIDATED FUNDS
001
General Fund
$16,000,229
IL $74,513,000
$1,212,520
$75,725,520
$69,732,000
$5,976,091
$75,708,091
$16,017,658
SPECIAL REVENUE &
GRANT FUNDS:
205
Storm Water Fund
999,494
782,800
782,800
734,711
734,711 1
1,047,583
206
Gas Tax
3,671,899
2,969,985
2,969,985
3,462,220
400,000
3,862,220
2,779,664
207
Development Services
503,689
1,500
1,500
-
-
505,189
208
Child Care
864,561
3,876,537
3,876,537
3,770,333
100,000
3,870,333
870,765
210
Paramedic/EMS
1,479,837
7,389,243
7,389,243
7,138,379
7,138,379
1,730,701
217
State Lands Fund
490,606
31,500
31,500
457,000
457,000
65,106
218
General Plan Special Revenue Fund
1,269,402
429,000
429,000
168,651
168,651
1,529,751
222
Recreation Revolving
48,272
3,001,389
1,700,000
4,701,389
4,389,658
4,389,658
360,003
223
Household Haz. Waste Fund
185,429
157,065
157,065
168,361
168,361
174,133
227
Sewer Maintenance
-
2,638,207
2,638,207
2,638,207
2,638,207
-
228
Hazardous Materials Fund
55,951
-
1,000
1,000
54,951
234
Pt. San Pedro Maintenance Portion
162,900
80,500
80,500
86,000
86,000
157,400
235
Baypoint Lagoons L & L District
226,948
26,200
26,200
5,386
5,386
247,762
236
Loch Lomond Assessment District
647,592
17,610
17,610
10,054
10,054
655,148
240
Parkland Dedication
458,663
4,000
4,000
37,301
37,301
425,362
241
Measure A Open Space
399,891
430,900
430,900
814,123
814,123
16,668
495
Low and moderate Income Housing Fund
535,537
78,300
78,300
210,000
210,000
403,837
LIBRARY AND FALKIRK:
214
Library Revolving
47,083
7,600
7,600
25,000
25,000
29,683
215
Library Special Assessment Fund
721,108
876,800
876,800
935,822
935,822
662,086
Library Fund
768,191
884,400
-
884,400
960,822
960,822
691,769
PUBLIC
SAFETY:
'
200
Abandoned Vehicle
7,226
70,000
100,000
170,000
173,801
173,801
3,425
202
Asset Seizure
38,026
100
100
-
-
38,126
204
Crime Prevention
9,033
-
-
-
-
9,033
230
Youth Services - Police
80,672
76,640
76,640
93,841
93,841
63,471
Public Safety Fund
134,957
146,740
100,000
246,740
267,642
267,642
114,055
TRAFFIC AND HOUSING:
243
Housing in lieu -City San Rafael
1,195,781
603,500
603,500
80,000
80,000
1,719,281
245
Housing in lieu
343,672
900
900
-
-
344,572
246
East S.R. Traffic Mitigation
10,473,270
32,000
32,000
-
-
10,505,270
Traffic & Housing Mitigation Funds
12,012,723
636,400
636,400
80,000
80,000
12,569,123
GRANT:
-
201
A.D.A.. Access Projects
22,463
-
-
-
-
22,463
211
Falkirk Revolving Fund
25,798
-
-
-
-
25,798
260
Pickleweed Childcare Grant
11,937
186,540
100,000
286,540
283,500
283,500
14,977
276
Falkirk Other Grants
11,011
-
-
-
-
11,011
281
Public Safety Grants
314,060
250,800
250,800
188,091
188,091
376,769
283
Grant -Other
325,800
283,300
236,091
519,391
805,477
805,477
39,714
Grant Funds
711,069
720,640
336,091
1,056,731
1,277,068
-
1,277,068
490,732
SPECIAL REVENUE & GRANT FUND TOTAL
25,627,610
24,302,916
2,136,091
26,439,007
26,676,916
500,000
27,176,916
24,889,701
EXHIBIT II
CITY OF SAN RAFAEL
CONSOLIDATED FUNDS
ASSESSMENT DISTRICTS:
302
Financing Authority 1997 Bonds
146,575
430
430
147,005
304
Peacock Gap Assessment District
2,875
-
-
2,875
306
Mariposa Assessment District
16,573
16,573
Var.
Assessment District Projects
300,338
-
-
300,338
ASSESSMENT DISTRICT TOTAL
466,361
430
430
466,791
CAPITAL PROJECT FUNDS:
401
Capital Improvement
669,577
2,700
2,700
672,277
405
Open Space Acquisition
118,373
370
370
118,743
406
Bedroom Tax
50,452
-
-
50,452
407
Parks Capital Projects
27,644
-
-
-
27,644
420
Measure E - Pulbic Safety Facility
-
- 4,040,000
4,040,000
4,040,000
4,040,000
-
CAPITAL PROJECT FUND TOTAL
866,046
3,070 4,040,000
4,043,070
4,040,000
4,040,000
869,116
ENTERPRISE FUND:
501
Parking Services
1,663,489
5,051,500
5,051,500
4,269,418
536,000
4,805,418
1,909,571
ENTERPRISE FUND TOTAL
1,663,489
5,051,500
5,051,500
4,269,418
536,000
4,805,418
1,909,571
INTERNAL SERVICE FUNDS:
600
Vehicle Replacement
753,523
1,222,283
1,222,283
1,141,000
1,141,000
834,806
601
P.C. Replacement
941,680
1,526,910
1,526,910
2,254,077
2,254,077
214,513
602
Fire Equipment Replacement
854,454
308,900
308,900
770,000
770,000
393,354
603
Building Improvement
235,600
503,500
503,500
250,000
250,000
489,100
604
Employee Benefits
615,648
706,200
706,200
744,789
744,789
577,059
605
Liability Insurance
55,000
1,659,380
1,659,380
1,360,111
1,360,111
354,269
606
Workers Compensation Insurance
504,342
2,053,697
2,053,697
2,329,016
2,329,016
229,023
607
Dental Insurance
191,467
502,521
502,521
501,600
501,600
192,388
608
Radio Replacement
382,123
689,811
689,811
673,499
673,499
398,435
609
Telephone
224,021
571,924
571,924
549,516
549,516
246,429
611
Employee Retirement
2,182,722
6,300
6,300
4,000
376,520
380,520
1,808,502
612
Retiree Health Benefit OPEB
418,662
3,500,124
3,500,124
3,468,040
3,468,040
450,746
613
Police Equipment Replacement Fund
171,983
80,000
80,000
80,000
80,000
171,983
INTERNAL SERVICE FUND TOTAL
7,531,225
13,331,550
13,331,550
14,125,648
376,520
14,502,168
6,360,607
TRUST AND AGENCY FUNDS:
710
Business Improvement District
-
-
-
711
Recreation Fiduciary Fund
23,850
23,850
712
Library Fiduciary
463,584
463,584
TRUST & AGENCY FUND TOTAL
487,434
-
-
-
487,434
COMBINED FUNDS TOTAL
52,642,394
117,202,466 7,388,611
124,591,077
118,843,982
7,388,611
126,232,593
51,000,878
LESS:
INTERFUND TRANSFER
(7,388,611)
(7,388,611)
(7,388,611)
(7,388,611)
LESS:
INTERNAL SERVICE CHARGES
(12,170,867)
(12,170,867)
(12,170,867)
(12,170,867)
NET TOTALS FY2016-2017
52,642,394
105,031,599
=11RKIN111ga
106,673,115
1 . •
51,000,878
CITY OF SAN RAFAEL
Authorized Positions
Proposed
Revised Revised Final Revised Final Final Final Final Final Proposed Changes
Departments 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2016-2017
Regular
Community Development
29.50
27.50
21.75
20.75
18.25
18.25
17.80
17.80
19.80
19.80
Community Services
64.20
64.20
60.73
61.16
59.15
58.35
58.78
59.31
59.33
59.33
City Attorney
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
3.50
City Clerk
3.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
City Manager/Council
8.70
8.70
7.70
7.70
11.50
11.50
12.56
12.56
12.56
12.56
Economic Development (former RDA)
5.00
5.00
5.00
5.00
-
-
-
-
-
-
Finance
11.00
11.00
10.00
10.00
10.00
10.00
10.00
11.00
11.72
11.72
Fire
81.00
77.00
75.00
76.00
75.00
76.00
79.00
79.00
79.00
79.00
Library
20.22
21.97
20.61
26.68
21.74
21.74
23.41
23.41
23.41
23.41
Management Services
33.68
33.68
31.68
31.15
28.23
26.23
26.33
27.33
27.83
27.83
-
Police
105.00
104.00
90.00
90.00
87.00
87.00
87.00
88.00
89.00
90.00
1.00
Public Works
78.80
75.80
60.80
62.80
62.00
60.00
61.00
62.00
62.00
62.00
-
Sub - Total Regular Positions
443.60
434.35
388.77
396.74
378.37
374.57
381.38
385.91
390.15
391.15
1.00
Change from previous year
(9.25)
(45.58)
7.97
(18.37)
(3.80)
5.71
4.53
4.24
1.00
Fixed Term
City Manager/Council
-
2.00
2.00
-
Community Services
0.67
0.67
0.67
0.67
1.47
1.51
1.51
1.51
Economic Development (former RDA)
1.00
1.00
1.00
Finance
0.72
0.72
0.72
1.00
1.00
Fire
2.75
2.75
2.75
Library
1.48
2.23
1.48
1.31
Police
2.00
2.00
3.00
3.00
Sub - Total Fixed -Term Positions
1.48
3.23
3.15
2.98
0.67
1.39
4.19
6.98
10.26
10.26
-
Total Budgeted Positions
445.08
437.58
391.92
399.72
379.04
375.96
385.57
392.89
400.41
401.41
1.00
Authorized, unbudgeted - extended absence/no cost
1.00
2.00
2.00
Total Authorized Positions
445.08
437.58
391.92
399.72
379.04
375.96
385.57
393.89
402.41
403.41
1.00
General Notes:
The above -authorized positions are presented as full-time equivalent employees (FTE's) based on various workweek hours as negotiated in employee
agreements. The totals by department reflect a combination of full-time or permanent part-time, or fixed term positions that are entitled to all or pro-
rated benefits in accordance with the negotiated agreements for employees or individuals who are under contract. The totals reflected above, or in the
detail department program sections, do not include temporary or seasonal employees that are utilized for short-term or specific reasons during the
year.
2016-2017 Proposed changes (from above
1 -Eliminate one existing vacancy Deputy Fire Marshall; add one Battalion Chief/EMS Traning Officer. Eliminate one Fire Prevention Inspector II; replace with one Fire Prevention Specialist
2 -Convert one fixed -term police officer to regular employee
3 -Add one fixed -term Police and Evidence Technican (1 -year)
W:\Accounting and Budgeting\Budget\16-17\Personnel Authorizations FY16-17\1budgeted positions 6-30-2016
EXHIBIT III
lil
NO
2/3
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: 6/6/2016
From: Mark Moses
Department: Finance
Date: 5/19/2016
Topic: FINAL PROPOSED BUDGET FOR FISCAL YEAR 2016-2017
Subject: RESOLUTION ADOPTING THE CITY OF SAN RAFAEL BUDGET FOR
FISCAL YEAR 2016-2017
Type: ® Resolution ❑ Ordinance
❑ Professional Services Agreement ❑ Other:
APPROVALS
® Finance Director
Remarks:
® City Attorney
Remarks: LG -Approved 5/25/16 with minor suggested revisions.
® Author, review and accept City Attorney / Finance changes
Remarks: Final adjustments made. 5/31
® City Manager
Remarks:
