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Home My WebLink AboutCC Resolution 10245 (5-yr Financial Forecast)RESOLUTION NO. 10245 A RESOLUTION OF THE SAN RAFAEL CITY COUNCIL APPROVING THE FIVE YEAR FINANCIAL FORECAST. WHEREAS, the City Manager has submitted to the San Rafael City Council a "FIVE YEAR FINANCIAL FORECAST" in order to meet one of the financial priorities identified by the City Council; and WHEREAS, after examination, deliberation and due consideration, the San Rafael City Council has reviewed the information and results contained in the "FIVE YEAR FINANCIAL FORECAST"; and WHEREAS, a copy of the "FIVE YEAR FINANCIAL FORECAST' is attached hereto and made a part hereof and is designated as EXHIBIT "A". NOW, THEREFORE, BE IT RESOLVED by the San Rafael City Council that the certain document entitled "FIVE YEAR FINANCIAL FORECAST', is hereby adopted and approved. G I {fit+l oTy I, JEANNE M. LEONCINI, 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 Mondav , the 6th day of Julv , 1998 by the following vote, to wit: AYES: COUNCILMEMBERS: Cohen, Heller, Miller, Phillips and Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None JEANNE M. LEONCINI, City Clerk 44 rypiRIT A CITY OF SAN RAFAEL FIVE YEAR FINANCIAL FORECAST REPORT DATE: April 30, 1998 REPORT PERIOD: Fiscal Years 1997-98 though 2001-02 Prepared By: Ken Nordhoff, Assistant City Manager Submitted By: Rod Gould, City Manager CITY OF SAN RAFAEL FIVE YEAR FINANCIAL FORECAST TABLE OF CONTENTS SUMMARY SECTION City of San Rafael Financial Forecast 1-9 Redevelopment Agency Financial Forecast 10-11 Challenges, Opportunities and Recommendations 12-15 DETAIL SECTION General Fund Summary 17-21 General Fund Revenues 22-23 Taxes 24-25 Property Tax 26-27 Sales Tax 28-29 Business License Tax 30-31 Hotel Tax 32-33 Franchise Tax 34-35 Property Transfer Tax 36-37 Other Taxes 38-39 Licenses and Permits 40-41 Fines and Forfeitures 42-43 Interest and Rentals 44-45 Other Government Agencies 46-47 Charges for Services 48-49 Other Revenues 50-51 CITY OF SAN RAFAEL FIVE YEAR FINANCIAL FORECAST r TABLE OF CONTENTS Recreation and Child Care Funds 53-56 Parking Services District 57-61 Street and Gas Tax Funds 63-67 Storm Drain Funds 69-73 Capital Improvement Fund 75-78 Redevelopment Agency 79-81 Supplemental Section 83 Inflation Assumptions 84 Building Repair Schedule 85 Park Repair Schedule 86 League of California Cities Financial Analysis of Funding Municipalities 87-97 i 1 Wi CITY OF SAN RAFAEL WHY ATTEMPT LONG TERM FINANCIAL FORECASTING: FIVE YEAR FINANCIAL FORECAST 0 Financial stability - much like the private sector, long term financial planning is essential to completing the City's mission. Although local government is rooted in the development of budgets in twelve month cycles, many changes in service, whether improving or eroding, are the result of decisions over many years which culminate into a current fiscal condition. Financial planning provides an opportunity to look ahead, make course corrections, and build long term solutions which can improve San Rafael s overall financial health 0 Quality of life - the San Rafael citizens and businesses have high standards and expectations for the community and those who serve it. Maintaining and improving quality of life issues (public safety, cultural and recreational opportunities, etc.) comes from strategic decisions based upon community consensus. Fiscal impacts must be an integral part of any discussion and decision making which could either improve or adversely impact San Rafael's quality of life. 0 Need to know - modern day public sector administration and management requires elected officials and staff to know what's coming and plan accordingly. No one likes to be caught by surprise. Community leaders demand the City to take action on many fronts. Future planning allows opportunities for citizens, staff and the Council to address foreseen circumstance before they become difficult problems. 3 Y CITY OF SAN RAFAEL w FIVE YEAR FINANCIAL FORECAST THE OBJECTIVES OF LONG TERM FINANCIAL FORECASTING To demonstrate the fiscal impacts of maintaining existing service levels over a five year period, within the constraints of existing resources. To comply with the City's approved financial management policies . Specifically, "the City shall examine its financial condition periodically by forecasting several years into the future. In this way, adverse trends can be anticipated and better managed". This forecast also addresses the City policies regarding infrastructure funding, cost recovery and cash management. To identify the City's capital and infrastructure needs, and to make observations and recommendations regarding proper maintenance levels and adequate funding for streets, sidewalks, storm drains, and other major city assets. �- To document actions which need to be taken, in priority order, so that areas of challenge in the forecast can be properly resolved in a timely, well though out manner. This Forecast will serve as a nice compliment to the budgeting cycle in future years. Two year budgeting is slated for the 1999- 2001 period. Issues raised in this Forecast should be used in conjunction with the development of budgets. Hopefully, the budget development and five year plan can be created and updated in alternative years. Actions in the budget should reflect directions taken as part of this report. This Forecast is intended to be a discussion and dialogue tool. This report is not a capital improvement program, which are in existence in many communities. Nor is this a document that is fully complete. Over time, demographic information, detailed economic trends, housing, and other data could round out this Forecast. Clearly, any suggested recommendations for action will take considerable discussion and development prior to implementation. If the actions suggested are taken, and some are ultimately successful, then the Forecast will have improved the future of San Rafael's financial condition. 4 CITY OF SAN RAFAEL FIVE YEAR FINANCIAL FORECAST THE ASSUMPTIONS USED IN THE FIVE YEAR FINANCIAL FORECAST: ✓ Maior Operations - Only the major operations of the City, which provide the vast majority of services, have been used in this Forecast. All mayor revenues and expenses related to San Rafael programs are identified in the following operating funds: General Fund Parking District Fund Child Care Fund Recreation Fund Gas Tax/Street Maintenance Fund Street Cleaning Fund Storm Drain Maintenance Fund Capital Improvement Fund ✓ Constant Service Levels - Levels of service in place as of January 1998 form the basis for future projections. Any adjustments to these services are so noted throughout the Forecast. ✓ Twelve Year Cvcle - Historical revenues and expenses are presented for a seven year period. Current fiscal year (1997-98) figures are stated based upon adopted numbers from last July and including budget amendments through January 1998 Four fiscal years are projected as the basis for discussion. ✓ Resources - Revenues are forecasted based upon historical trends, current laws, and expected economic cycles. Presentations are conservative by nature. Where appropriate, adjustments have been made for new development, changes in law, or other actions which possible limit or enhance future resources. .� Outflows - Expenses incorporated into the Forecast are two fold; operating and capital. Operating expenses are projected based upon existing labor bargaining agreements, budget development requirements for 1998-99, and anticipated changes in the cost of doing business in future years. Capital expenses are based upon Public Works and other Department calculations, business cost study data, and reasonable amortization periods. To the extent possible, maintenance of currently owned infrastructure assets are segregated from acquiring new or expanding existing assets. ✓ Entities - Even though the City and San Rafael San Rafael Redevelopment Agency are separate legal entities, their financial operations are deeply intertwined. The length of operating the Agency, which remains the economic development engine for the City, is critical to the long term financial stability of both entities To the extent possible, issues impacting both entities are identified in this report. 5 CITY OF SAN RAFAEL _ _ _ _ _ FIVE YEAR FINANCIAL FORECAST SUPERFICIAL RESULTS - CASH FLOW MEASUREMENT OF FINANCIAL CONDITION Cash Flow Definition - As is required and practiced under current acceptable accounting and budgeting standards, the City measures financial performance in twelve month increments. In essence, we account for revenues and expenses in a cash flow cycle. Revenues received are used to pay current operating costs (salaries, benefits, supplies and services). The private/business practices of accounting for assets (land, buildings, streets, storm drains) and long term debt (bonds, loans, leases) are ignored. This greatly limits a look at the true overall financial picture. Cash Flow Results - The graph below presents the annual cash flow excess or deficit. This is measured by taking total revenues and deducting both operating expenses and funded capital projects. Cash Flow Proiections - Based upon forecasted increases in revenues, and expected cost inflators for expenses, the City of San Rafael should be able to adequately pay for its operating expenses over the next four years. Clearly, the City's largest resources are driven by economic conditions, whether good of bad. Sales. Business License, Property Transfer and Hotel taxes go through periods of strong growth, no growth and even decline. The graph projects only the current levels of fundina for street, sidewalk, public faculties and storm system oroiects. This type of forecasting can be useful to measure cash flows, but lacks the full financial resource requirements to properly fund and maintain all City services. The graph indicates that over a twelve year cycle the City has lived within its annual resources and is projected to do so for the next four years. Current available resources are able to meet outflow (service) demands. Cash Flow Realitv Check - In reality, the current booming economy is going to take a turn downward in the coming years. Presently, San Rafael has not structured its finances to anticipate this decline. Too much of our current resources are earmarked to pay for services which the public has come to expect. Some actions are recommended as part of the Five Year Forecast to mitigate the economic downturn. P. CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST ALL OPERATIONS 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Summary Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected All City Operations Cash Flow - Five Year Projection S45,000 540.000 S35.000 f — - i S30000 S25000 S20000 O S1500D 1 S10000 $5.000 m n c� cq c M to C& m m rn m m o: T riM c u1 (a r m m m 0 o m cv 0 0 o II m rn (S5,000 e� m m rn m C7, m m o> m m rn m m Fiscal Year m rn m rn o 0 N n0i D Total Operating Expendlhues 0 Total Funded Capital Projects Total Revenue -,"—Cash Row Excess (Deficit) CITY-OF SAN RAFAEL REAL RESULTS - THE FULL FINANCIAL PICTURE FIVE YEAR FINANCIAL FORECAST ® The graph illustrated with this section represents the comprehensive financial picture for the City of San Rafael. The major change from the previous cash flow discussion is the inclusion of all unfunded capital oroiects. This picture puts into perspective one on the major issues identified by the Budget Oversight Committee and the Ayres report. s> ON AVERAGE, THE CITY OF SAN RAFAEL IS UNDER FUNDING NECESSARY MAINTENANCE OF CITY ASSETS BY MORE THAN $5.6 MILLION DOLLARS PER YEAR. ® This situation exists largely due to a decline in tax resources, which started with the passage of Proposition 13 and includes such recent initiatives such as Proposition 218 and the property tax shifts to the State which began in 1992. ® The "gap" did not first appear nor begin in 1990-91. The City has under funded its infrastructure for decades. The `gap" is depicted this way to illustrate a the compounding effect of not addressing infrastructure. a:, This picture represents the radical funding needs for infrastructure as though this problem occurred in a linear, objective manner. In reality, funding in future years, if available on July 1. 1998, would only pay for proper maintenance on assets which had been adequately maintained in prior years. A major infusion of cash is needed to correct past deficiencies so that proper planning and management of all City resources can be achieved in the next century. a> Although the future looks cloudy, San Rafael is not unique in this situation. Numerous California and national cities are in similar predicaments to varying degrees. In the appendix of this report, I have included information prepared by the League of California Cities. The League information identifies the struggle of local communities to keep up with the cost of business and demand for service. Although the problem appears insurmountable, when broken down, improvements can be made to the City's situation. 8 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST ALL OPERATING FUNDS 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Summary Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected Total Revenue 528,073 S28,667 S29,049 S29,590 ' S31,218 S33,263 S35,075 $37,099 S37,934 S39,155 540,659 541,462 Operating Expenses S26,746 S27,460 S27,138 S26,648 S29,592 S31,088 S32,370 S34,869 S35,988 S37,092 S38,159 539,287 Funded Capital Projects 51,366 S1,038 S678 S101 S762 S1,043 $1,497 S2,739 52,048 52,130 S2,212 S2,234 Unfunded Capital Projects $6,572 $6,607 $6,826 $7,447 $6,829 $6,594 $6,187 $4,946 $5,715 $5,680 $5,645 $5,717 Total Expenditures S34,683 S35.105 534,642 S34,195 S37,184 S38,725 S40,054 542,554 543,752 S44,902 S46,016 S47,239 Excess (Deficit) ($6,611) ($6,438) ($5,593) ($4,606) ($5,965) ($5,462) ($4,979) ($5,455) ($5,818) ($5,746) ($5,356) ($5,777) Cumulative Excess (Deficit) ($6,611) ($13,048) ($18,641) ($23,247) ($29,212) ($34,674) ($39,654) ($45,109) ($50,927) ($56,673) ($62,030) ($67,806) OPERATING DEFICITS - REQUIRED CITY SERVICES $120000 5100.000 I S60000 N 9 N 7 O N 360,000 340 000 - S20.000 v n v v m rn ® Cumulative Impact -Expenses. rn FISCAL YEAR --I-Total Revenue 0 n o 0 0 CITY -OF SAN RAFAEL THE REDEVELOPMENT AGENCY - HOW LONG CAN IT REMAIN? FIVE YEAR FINANCIAL FORECAST M Background - Currently, the San Rafael Redevelopment Agency is providing the major force behind a number of projects in the Downtown and East San Rafael areas. Over the past three years, numerous projects have been completed. In excess of 40 are at some stage of development, construction or consideration for approval. Clearly, new property and sales taxes coming to the City are the direct result of redevelopment efforts over the past few years. Structure - The Agency has funded successful projects via the issuance of separate bond issues in 1992 and 1995. Proceeds have been used to pay for capital infrastructure needs in downtown, land acquisition, and construction related costs More importantly, the Agency currently spends over $500,000 per year to support staff and operating costs, plus $250 000 to pay for engineering and administrative support. Based upon agreements reached with the County, colleges and schools as part of facilitating the bond issues, the Agency only receives tax increment in two amounts: The 20% portion required by State law to be used for affordable housing, and Tax increment sufficient to pay for the principal and interest payments on the bonds. Currently, the Agency has generated in excess of $9,000,000 in annual tax increment revenues. However, the Agency actually receives less than $3,000,000 per year for bond payments and housing set aside funds. The remaining $6,000,000 is divided up between the County, Schools and local college. Situation - Operating expenses noted above have no dedicated funding source. In addition, only a small sum remains for capital projects from the $19,000,000 of original bond proceeds. Lastly, the Agency has been used as the economic vehicle to pay for a variety of projects (sidewalks, undergrounding) that would have been better supported had an adequate replacement program (and the necessary funding) been in place with the City. Forecast - NO CAPITAL PROJECT DOLLARS HAVE BEEN ALLOCATED TO FUTURE YEARS. IF LUCK HOLDS, MAYBE EXISTING OPERATING COSTS COULD BE CARRIED OUT FOR ANOTHER FOUR YEARS. LACK OF SIGNIFICANT RESTRUCTURING OF COSTS OR THE CREATION OF A NEW ONGOING REVENUE STREAM, WILL LIKELY REQUIRE THF AGFNCY TO RADICAL REDI_lPt= OR ELIMINATE ITS ROLE AS THE c1T1r1q ECONnMIC ENGINE. Housing will remain the Agency's only area of activity, primarily due to dedicated resources which can be used to stimulate revitalization efforts. 10 SAN RAFAEL REDEVELOPMENT AGENCY - FIVE YEAR FINANCIAL FORECAST San Rafael Redevelopment Agency 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Administration and Capital Projects Actual Actual Budget Projected Projected Projected Projected Interest and Rents $1,009 $626 $537 $240 $129 $97 $62 Other Agencies $0 $4,167 $4,600 $0 Charges for Services $0 $3 $0 $100 $100 $100 $100 Other $203 $575 $4,740 $4 r N Bond Proceeds $8,895 $0 $0 $0 Land Sales Proceeds $0 $0 $2,553 $0 Total Revenue $10,107 $5,371 $12,429 $344 $229 $197 $162. Salaries and Wages $0 $0 $237 $310 $320 $329 $339 Fringe Benefits $0 $0 $53 $62 $62 $62 $63 Operating Expenses $1,280 $1,252 $916 $223 $229 $236 $236 Engineering & Admin Support $0 $0 $430 $243 $250 $258 $266 Capital Outlay $0 $16 $0 $3 $3 $3 $3 Operating Expenses $1,280 $1,268 $1,635 $840 $864 $888 $906 Capital Projects and Cost of Land $1,885 $10,727 $16,704 $0 $0 $0 $0 Total Expenditures $3,165 $11,995 $18,339 $840 $864 $888 $906 Excess (Deficit) $6,942 ($6,624) ($5,910) ($496) ($636) ($692) ($744), Cumulative Excess (Deficit) $17,013 $10,389 $4,479 $2,572 $1,937 $1,245 $501 Beginning Balances $10,071 Reserves Held for Corporation Yard $1,410 Redevelopment Agency - Projection- $20000 rojection: $20000 $10,000 C pip \CP 9 O C7 co 0) m O O r N N ($10,000) Fiscal Year OOperating Expenses Capital Projects and Cost of Land 'Total Revenue 'Excess (Deficit) '] —Cumulative Excess (Deficit) 11 CITY OF SAN RAFAEL SUMMARY - THE CHALLENGES FIVE YEAR FINANCIAL FORECAST All is not doom and gloom. The City is currently able to pay for established, on going services and a small portion of infrastructure maintenance requirements. However, substantial deficiencies exist in funding the real and true costs of all City assets and services. Required annual sums, projected for 1998-99, are needed as follows: Maintaining existing storm drain systems $1,663.000 Sidewalks, curbs and gutters $ 920,000 Information and Communication Systems $ 560,000 Implementing new storm drain systems $ 484,000 Traffic Signals and Signs $ 375,000 Streets overlays and reconstruction + bridges $ 350,000 Park Equipment/Irrigation $ 318,000 Public Facilities $ 261,000 City Hall Expansion/Remodel ng $ 250,000 Parkways and Medians $ 171,000 Street tree replacement $ 133,000 Parking District lots, garage and meters $ 103,000 Office Equipment (excluding computers) $ 58,000_— TOTAL ANNUAL REQUIREMENTS $ 5,646,000 Despite the significant number of projects recently completed or currently under way, the City will never grow or develop to a point where existing resources can properly pay for long term maintenance of all City assets. Even though mitigation fees can be used to offset expansion, routine resources can not be considered adequate to sustain the quality of life in San Rafael. = > Major tax resources, with the exclusion of some franchise fees, are almost 100% dedicated to the cost of paying for services in a cash flow, year to year cycle. Presently, no financial plan is in place where revenues collected in boom economic periods (now) are set aside to mitigate downward cycles (early nineties and ??). This sets the City up for having to reduce or eliminate services when the next slow down period occurs. The San Rafael Redevelopment Agency is on a short life. Unless new sources of revenues are achieved, or costs reduced, the major economic tool which creates new revenues for the City will likely disappear sooner than this forecast projects. 12 CITY OF SAN RAFAEL FIVE YEAR FINANCIAL FORECAST SU�`UI--';''- - T�- E OPPORTUNITIES: e Cost Pecovery - Efforts have been taken to make certain that individuals or groups are paying for the full cost of whatever services these citizens or businesses have chosen to receive. As costs are projected to increase, continued updates and recommendations from the business cost study module are imperative. Where practical, adjust fees and fines accordingly. Also, if taxes can be implemented or increased, strategic planning should be used to determine to what extent the community is willing to pay more for services. , - Some advantages could be gained by making long term program restructuring. For example, if the Parking District were to become a self funding enterprise, including payment for infrastructure maintenance, staff should jointly develop a work plan to achieve this objective. To the extent a portion of revenues can be permanently directed to asset maintenance, deterioration of public lots and garages can be reduced or avoided. The challenge included in this approach is to not shift a problem from one place (Parking District) to another (General Fund). - Several opportunities may exist which could improve the Agency's chances of staying alive well into the next century. This may include some combination of directing costs associated with economic development away from redevelopment, and taking new Agency generated revenues to pay for these expenses. Bonds could be restructured. New agreements with the County, schools and college are mandatory so that the Agency can reap the benefits from its efforts. Tax increment must be partially directed to pay for future Agency management functions. - Careful consideration must be given to creating new assets (i.e. new parks) when it is clear that the current assets can not be adequately maintained. Traditionally, new public amenities have been constructed with little regard for the ongoing cost of maintenance and operations. To the extent grants or other one time sources of funds are received, long term planning should include potential expiration of grants and the cost to keep up existing services. 13 CITY OF SAN RAFAEL FIVE YEAR FINANCIAL FORECAST SUMMARY - POSSIBLE ACTIONS TO BE TAKEN On this page are a number of actions which may be considered to improve the City's overall long term financial health. Some ideas may bear fruit, others not. The Council and staff should work with the community in exploring these options. Specific solutions could be: Issuance of general obligation or other bonds to correct the under funding of infrastructure maintenance of years gone by and set a path for proper levels of future maintenance. Broader uses of competitive bidding to make sure quality contracted services and supplies are procured for the least possible cost. Fee increases as allowed per law and in conjunction with the business cost study. Creation of a separate fund to track the cost of the Paramedic/Emergency Medical Services Program. This program should be self funding pursuant to voter approval. Paramedic tax and billing changes could eliminate a subsidy of approximately $500,000 of general taxes to this program. This would change the per parcel rate by about $15 per dwelling unit. Development of a resource allocation plan that allocates current revenues between operations and capital needs, in both good and bad economic times. till Negotiating a new, more equitable tax increment sharing arrangement with the County, schools and college. All agencies, including the San Rafael Redevelopment Agency, should mutually benefit from redevelopment project efforts. Study certain services, which may be able to be provided by private sector sources at less cost, while still retaining high value for tax dollar paid. Study consolidation of assets, where appropriate. If disposal were to occur, this could provide a one time infusion of cash. plus reduce ongoing operating expenses. Form new partnerships with the business community, non profit and social service agencies who can help share in both the delivery. and the cost of services. Several new revenue options could be explored. Although likely to be controversial, these represent the opportunity for significant new moneys to deal with the deficits outlined in this Forecast. Options could include: Community Facilities Assessment District Utility Users Tax Expanded Development Impact Fees Localized or City wide special benefit assessment districts Franchise Fees for Vehicle Storage and/or Towing Creation of a Downtown Merchants District Drainage Bond Issue Generating overhead charges to activities, consistent with the business cost study, in order to pay for the cost of support services (City Clerk, City Attorney, Finance, Information Services, Human Resources, etc.) Assign a computer recovery fee to those service where new system conversion or upgrades are required. This is already in place for Community Development fees, but could be expanded into Recreation, Child Care, Engineering and Public Safety. These resources would be specifically directed toward Departmental computer solutions. 14 CITY OF SAN RAFAEL FIVE YEAR FINANCIAL FORECAST THE SUBSEQUENT PAGES This portion of the Forecast has presented the summary background, results and suggested actions. Supporting details of these summary figures are presented in the following pages. Each major fund is analyzed, with specific concerns, assumptions and issues identified where appropriate. Specific concerns and recommendations may be noted, and should be considered an integral part of the overall summary section The data is presented not with the purpose of blowing the user away with tables, graphs and numbers. It is intended to educate the reader about the variety of issues that make the City's finances a complex puzzle containing pieces of many shapes and sizes. This is San Rafael's first attempt at long term financial planning. We would like to express our gratitude to the Budget Oversight Committee, which provided valuable input and comment. Also, sincere thanks to the City Council which patiently has awaited the arrival of this Forecast. Most certainly, an update to this document will occur, and is presently targeted to be completed in the spring of the year 2000. We would welcome suggestions for areas of improvement or modification as this Forecast unfolds in the next millenium. Rod Gould City Manager Ken Nordkoff Director of Administrative ices 15 16 17 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST GENERAL FUND SUMMARY Description: By definition, the General fund accounts for all services which are not required by law or administrative policy to be accounted for separately. The General Fund picture represents a series of tax and other revenues measured against the cost of a variety of programs, including Police. Fire, Public Works, Library, Community Development and Administration Background: Changes have been made as part of an accounting restructuring which occurred beginning in 1997-98. Revenues raised by Departments are now classified in those activity centers. Expenses to run programs are broken down on an activity level basis. Tax support for Recreation, Street and Storm Drain services are identified in the chart below. This is critical to developing the true cost of services picture, holding aside unfunded capital infrastructure needs. Outlook: In spite of State takeaways of property tax and the recession, the City has continued to live within its means. Each year, the budget has been prepared in a practical, conservative manner. Major Trends: Like any large employee organization, personnel costs drive the expenses in the General Fund. To the extent compensation and cost of living adjustments are required to pay for current services, expanded tax bases and fees are needed. Changes in just salaries and benefits alone are projected to grow by 8800,000 in 1998/99. If sales tax alone were to carry this cost, we would have to generate $80,000,000 in new sales, or about 7% per annum increases. How the economy goes will dictate the stability of the General Fund. Looking ahead, some balance needs to be achieved between operations and capital and infrastructure requirements. By no means should we use up increase resources by always establishing new or enhanced programs which require ongoing resources. A balance needs to take place over a longer cycle so good economic years can be used to carry years where downturn occurs. The forecasted annual deficits are based upon moderate growth in revenues and known or expected cost of living changes to salaries and operations. Currently levels of support for other programs are also increased for these same reasons. Funding of facilities, completed in 1997-98 out of one time sources of funds, is built into future years. Although inadequate, this level of service will have to be weighed against other priorities in order to sustain a balanced General Fund in the future. Any "Excess" is the result of cash flow cycles and actual audit results achieved in prior years and projected forward. Excesses are held, in accordance with City policy, to maintain a 10% reserve for emergencies and temporary downward economic periods. This sum is not available to meet future ongoing expenses. ku CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST General Fund 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Current level of services Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected Taxes $19,530 $19,580 $19,404 $19,321 $20,608 $21,372 $22,521 $23,954 $24,794 $25,705 $26,847 $27,342 All Other Revenue Sources $5,521 $5,708 $6,160 $6,377 $6.458 $7,374 $7,514 $8,068 $7,838 $7,983 $8.175 $8,372 Total Revenue $25,051 $25,288 $25,564 $25,698 $27,066 $28,746 $30,035 $32,022 $32,632 $33,688 $35,022 $35,714 Salaries/Benefits $18,403 $18,924 $18,144 $18,507 $20,105 $21,004 $21,422 $22,395 $23,153 $23,909 $24,660 $25,438 Supplies/Services/Operating Costs $4,464 $4,493 $4,668 $3.797 $4,845 $5.355 $5,985 $6.776 $6,985 $7,195 $7,367 $7,570 Funded Capital Projects $866 $538 $115 $0 $0 $98 $264 $361 $147 $147 $147 $147 Recreation supplement - taxes $566 $534 $529 $481 $602 $684 $617 $691 $708 $734 $760 $787 StreetMaintenencesupplement - taxes $1,004 $1,039 $839 $925 $562 $563 $694 $1,376 $1,354 $1,380 $1,407 $1,435 Storm Drain Mtce supplement - taxes $357 $367 $402 $339 $589 $611 $507 $556 $573 $588 $604 $620 Total Expenditures $25,660 $25,894 $24,697 $24,049 $26,723 $28,315 $29,489 $32,154 $32,921 $33,953 $34,945 $35,997 Excess (Deficit) ($609) ($607) $867 $1,648 $344 $431 $546 ($132) ($290) ($265) $77 ($284) Cumulative Excess (Deficit) ($609) ($1,216) ($348) $1,300 $1,644 $2,075 $2,620 $2,489 $2,199 $1,934 $2,011 $1,727 General Fund - Five Year Projection $40,000 $35,000 $30,000 m $25,000 • e 'n V N / j r $20,000 ~ $15,000 F j01 0 $5,000 / / j F j F// j $o . Fiscal Year N n v in m r m w o a c� c� c) M c> w o 0 0 o N M c in m r co M c M M N ii Salaries/Benefits Supplies/Services/Operating Costs O Funded Capital Projects Recreation supplement - taxes O Street Maintenence supplement - taxes Storm Drain Mice supplement - taxes • Total Revenue 19 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST General Fund Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected Expenses by Dept. 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 percentage increase 0.94% -4.29% -2.71% 11.86% 6.04% 4.59% 6.72% 2.55% 3.19% 2.95% 3.05% Police 7,194 7,728 7,268 6,907 7,900 8,293 8,634 9,431 9,758 10,079 10,411 10,756 Fire 6,989 6,921 7,060 6,884 7,710 8,163 8,420 8,723 9,041 9,373 9,682 10,006 Public Works 3,489 3,496 3,376 3,294 3,785 4,077 4,280 4,365 4,501 4,626 4,753 4,885 Community Development 1,224 1,113 1,040 1,087 1,123 1,179 1,225 1,643 1,692 1,737 1,783 1,830 Library/Cultural 967 952 927 946 928 1,057 1,071 1,244 1,283 1,317 1,353 1,390 Elected and Manager 827 878 817 881 921 956 1,053 1,150 1,186 1,219 1,253 1,289 Administration 1,474 1,542 1,454 1,359 1,513 1,630 1,784 2,005 2,068 2,125 2,182 2,243 Insurance and Other 703 787 870 946 1,069 1,004 940 610 610 628 610 610 Capital Projects 866 538 115 0 0 98 264 361 147 147 147 147 Capital Projects GENERAL FUND EXPENSES BY SERVICES/DEPARTMEN Insurance and Other Administration Community Development Elected and Manager .µ - 30,000 Library/Cultural I Public Works � 20.000. f/G/iii/i�a..iWero F Fire 10,000 ; HIM Police 1 I Fiscal Year 0 w m ori m m ori rn C a)i @ o 0 0 rn rn m m m aa)i a�°i rn m C) ai 01 o 6 N N O Police O Fire 0 Public Works © Community Development O Library/Cultural O Elected and Manager O Administration D Insurance and Other COM -0 Capital Projects Property & Sales Tax Totals 23,733 23,955 22,927 22,304 24,950 26,458 27,671 29,531 30,286 31,251 32,174 33,155 Property Tax Sales Tax Property & Sales Tax 5,106 5,336 5,048 4,639 5,474 5,218 10,705 10,100 9,894 10,016 10,249 11,099 $15,811 $15,436 $14,942 $14,655 $15,723 $16,317 20 5,228 5,367 5,529 5,762 5,959 6,033 11,519 12,169 12,668 13,213 14,020 14,300. $16,747 $17,536 $18,198 $18,974 $19,979 $20,333 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST General Fund Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected Expenses by Category 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 percentage increase 0.94% -4.29% -2.71% 11.86% 6.04% 4.59% 6.72% 2.55% 3.19% 2.95% 3.05% Personnel Expenses 18,403 18,924 18,144 18,507 20,105 21,004 21,422 22,395 23,153 23,909 24,660 25,438 Operating Expenses 4,464 4,493 4,668 3,797 4,845 5,355 5,985 6,776 6,985 7,195 7,367 7,570 Capital Projects 866 538 115 0 0 98 264 361 147 147 147 147 40,000 - 30,000 N V C 20,000 O L H 10,000 Totals GENERAL FUND EXPENSES BY CATEGORY Capital Projects N V to 1- W t� Fiscal Year 13 Personnel Expenses O Operating Expenses 0 Capital Projects 23,733 23,955 22,927 22,304 24,950 26,458 27,671 29,531 30,286 21 31,251 32,174 33,155 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST TOTAL GENERAL FUND REVENUES Description: Seven major categories of revenue are presented as part of the overall General Fund picture. These groupings are consistent with national standards for budgeting and financial reporting. Specific account codes are established to track each major revenue within a category. This allows for budget development and comparative analysis over a period of many years. Background: See respective revenue category, tax summary, or specific tax revenue of General Fund. Outlook: Of course the bulk of the General Fund revenues are tied to taxes. Many of these taxes are tied to economic cycles. Looking closely at the graph one can see an actual decline in total taxes in 1992-93 and 1993-94. Unless dramatic shift in tax collection and distribution occur, taxes will be the primary source of revenue to pay for general fund services. Major Trends: Looking at the data below the graph, taxes over a twelve year period have generally accounted for 3/ of all General Fund revenues. What is not evident in this graph, but which can be identified by looking at the "Tax Summary" is that sales taxes are becoming more and more important, and property taxes less so. Since 75% of our current revenues structure could never be improved without Proposition 218 compliance, it is likely this ratio will stay the same for many years to come. One area of modest improvement has been in Charges for Services. Now that the community, staff and Council are fully aware of the cost of services, changes have been made to improve the long term collections in this category. Since these services are exempt under Proposition 218, continued used of a cost recovery approach will strengthen long term financial stability for San Rafael. 22 CITY OFSAN RAFAEL-FIVE YEAR FINANCIAL FORECAST General Fund 1090'91 1991-92 1902-93 1993-94 1994-95 1995-96 1886-87 1957-98 1908-09 1999'00 2000'01 2001'02 All Revenues Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage inovaone 0.0596 1.0996 0.52% 5.3396 6.2196 4.4896 4.6596 3.8296 3.24% 3.8696 1.97Y6 Taxes 19.530 19.580 19.404 19.321 20.608 21.373 22.521 23.954 24.794 25.705 26.847 27.342 Licenses/Permits 342 373 461 464 419 640 585 548 564 581 589 617 Fines 642 463 456 476 371 422 533 670 714 728 743 758 Interest and Rents 304 277 233 335 385 364 429 393 401 366 372 378 Other Agencies 2.875 2.704 3.534 3.570 3.534 3.775 3.889 3.509 3.579 3.652 3.725 3.801 Charges for Services 1.090 1.320 1.147 1.068 1.536 1.357 1.939 2.275 2.495 2.569 2.647 2.726 Other 268 481 270 464 213 216 139 82 84 87 SD 83 Total General Fund Revenues History and Projection 40,000 ns.00u|---------------------- -------------------------------- 30,000 --- | 25,000 - - 20,00m 15,000-- e.mm1o,0oo=,0"" 10,000-- kkk1100---------------- 5,000 � o TOTAL 25,051 35,288 25,564 25,898 27,068 28,746 30,035 31,431 96 of total in taxes 77.9696 77.43% 75.9096 75.18% 76.14% 743596 74.98Y6 762196 %nftotal all others 22.04% 22.57% 24.10% 24.82% 23.86% 25.65% 25.02% 2379% 23 32,632 33,888 35,022 75.98% 76.30Y6 76.66% 35,714 76.56% - - kkk1100---------------- �2 � �2 Fiscal Year � E3 Taxes omOther Agencies 0 Charges for Services E3 Fines 0 Licenses/Permits 13 Interest and Rents oOther TOTAL 25,051 35,288 25,564 25,898 27,068 28,746 30,035 31,431 96 of total in taxes 77.9696 77.43% 75.9096 75.18% 76.14% 743596 74.98Y6 762196 %nftotal all others 22.04% 22.57% 24.10% 24.82% 23.86% 25.65% 25.02% 2379% 23 32,632 33,888 35,022 75.98% 76.30Y6 76.66% 35,714 76.56% CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST TOTAL GENERAL FUND TAXES Description: The facing table and graph summarizes all of the major tax categories for the General Fund. The graph lists the taxes in order of highest to lowest number. These taxes are used to pay for general City functions such as police, fire suppression, engineering, library, parks, facilities, vehicle maintenance, human resources, legal, City Clerk and administrative services. Background: See respective tax category Outlook: As illustrated by the percentage increase, overall tax revenues suffered under the recession and State property tax shifts of the early nineties. Recoveries have been strong over the last two years. Moderate levels of increase are expected from these combined tax sources over the projected four years. Major Trends: Over time, the City has become more and more reliant on sales tax to sustain general services. New laws and restructuring of tax distributions by the Governor and Sacramento have rewarded poor land use policy whereby sales tax is a big winner and other viable development (industrial, housing) adds little revenue value. When you consider other major sources such as business licenses and hotel taxes are also tied to a strong economy, it is likely that San Rafael tax sources will flow up and down in a parallel cycle with regional, national and international trends. A threat looms that is even greater than the ups and downs of the economy. Continually each year, the Legislature makes new attempts at either reducing, redistributing or eliminating locally generated tax revenues. The State may have a surplus of anywhere from $3 to $7 billion dollars by June 1998. Little mention is made of returning cities lost property taxes. Surpluses will likely be used for more jails, improved education, TAX CUTS and a whole list of actions with a stronger voice than the return of local government taxes. As of this Plan's completion, the are no guarantees that local resources are protected. An initiative may be placed on the November 1998 ballot protecting the current resources via an amendment to the California Constitution. Approval by California voters would still not get the lawmakers out of our pockets for good. Should the initiative fail, San Rafael should expect to monitor all local taxes each year with great scrutiny. Consider the possibilities if the State should go through another deficit and needed to balance its budget again! 24 General Fund All Taxes percentage increase Property Sales Business License Hotel Franchise Transfer Other 30.000 20,000 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected 0.26% -0.90% -0.43% 6.67% 3.71% 5.38% 6.36% 3.51% 3.68% 4.44% 1.84% 5,106 5,336 5,048 4,639 5,474 5,218 5,228 5,367 5,529 5,762 5,959 6,033 10,705 10,100 9,894 10,016 10,249 11,099 11,519 12,169 12,668 13,213 14,020 14,300 1,200 1,221 1,238 1,264 1,319 1,387 1,457 1,460 1,489 1,519 1,549 1,580 726 985 994 1,117 1,139 1,159 1,402 1,495 1,525 1,555 1,587 1,618 542 596 607 627 621 632 638 1,179 1,238 1,250 1,263 1,276 395 342 602 626 604 593 862 848 865 882 900 918 856 1,000 1,021 1,032 1,202 1,284 1,415 1,436 1,479 1,523 1,569 1,616 General Fund Total Taxes - History and Projection 10,000 Sales 0 m m m rn m m m Co m o 0 0 C) rn m m m rn m m m m o 0 W 01 W W N N Fiscal Year r Sales 0 Property O Business License ❑ Hotel O Other m Franchise O Transfer TOTAL 19,530 19,580 19,404 19,321 20,608 21,372 22,521 23,954 24,794 25,705 26,847 27,342 25 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST PROPERTY TAX REVENUES Description: Property tax is imposed on real property (land and permanent improvements) as well as tangible personal property (furniture. fixtures and equipment). The general levy tax rate is 1% of assessed value, adjusted by an annual inflation factor not to exceed 2%. Property is assessed by the Marin County Assessor's office, except for certain public utility property, which is assessed by the State Board of Equalization. Background: Growth in property tax revenues is realized from either increased valuation occurring when property is sold and subsequently reassessed, or from the 2% annual increase allowed under Proposition 13. Since 1992-93, the State has redirected 26% of local San Rafael taxes into its own budget. Secured taxes are paid on land, building and structural improvements (real property). Unsecured taxes are collected on furniture and equipment. Supplemental taxes are primarily paid by new property owners who receive a bill for taxes due between the sale date and the remainder of the Assessor's tax year. Prior to fiscal year 1994-95, the City was paid only for taxes collected by the County. Beginning in 1994-95, the City adopted the "teeter" plan which allows the City to receive 100% of its property tax, regardless of when the taxes are paid. This change in payment is reflected in the "Prior Year Secured" tax shown in the adjacent table. Outlook: The graph below takes on two elements. The first bar shows the actual and estimated 1% levy revenues for the City. It includes new taxes generated from economic and redevelopment efforts as discussed below. The forecasted 1998-99 through 2001-02 represent a combination of reassessed values based upon property turnover and the 2% inflator allowed under Proposition 13. A portion of the 1996-97 unsecured taxes ($215,000) are being held in the General Fund pending the outcome of a county wide settlement with the local cable provider. The additional bar shows the amount of money lost to the State via tax redistribution. The City receives approximately 12% of each property tax dollar paid by residents and businesses, net of redistribution to the State. When projected from 1992-93 through 2001-02, the City will have lost $10,052,000 over this 10 year period. No amount of new projects can make up for this significant loss. Major Trends: San Rafael Redevelopment Agency (SRRA) efforts will translate into new property taxes. Unfortunately, receiving only 12% of the 1% annual levy does not translate into significant new dollars. Major activities factored into the graph are taxes expected from the Kaiser Medical, Walgreen's, Macy's reuse project, Shamrock Center development, Oacis/Garden Court and Fair Isaac. Smaller contributors include the Fishpeddler restaurant, San Rafael Theater and Maxwell the Cleaners. Overall, SRRA projects are expected to generate $283,000 in new property taxes to the City. By comparison, these same efforts contribute $1,252,000 to local schools and $827,000 to the County. It is unlikely that all these projects will occur as projected. Nonetheless, the economic boom is contributing to major downtown revitalization. The City will reap the benefits of this upward expansion cycle. 26 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST General Fund 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Property Taxes Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase 5.28% -4.44% -4.32% 10.73% 0.88% 2.68% 2.71% 3.00% 3.00% 3.00% 3.00% BASE - Secured 4,413 4,646 4,439 4,248 4,703 4,745 4,872 5,004 5,154 5,309 5,468 5,632 Prior Year Secured 271 275 262 48 445 23 1 3 0 0 0 0 Unsecured 230 227 226 205 196 313 214 220 225 230 235 240 Supplemental 192 188 121 138 130 137 141 140 140 140 140 140 Shoreline Center 62 Shamrock Center 10 Other SRRA Projects 10 73 54 21 General Fund Property Taxes - History and Projection 8,000 , 7,000 - - - - - - - - - - - - - N 'O C 76,000 C - _------ ------ - - - --_ Losses to State r H 5,000 1 Property Tax to City 4,000 m in m T rn m rn m m 9 0 9 O rn m N m M m Q rn N (D m m h M OD m a) m O o 0 m m rn m m m m 9! m9 N H Fiscal Year Property Tax to City 03 Losses to State TOTAL 5,106 5,336 5,048 4,639 5,474 5,218 5,228 5,367 5,529 5,762 5,959 6,033 Losses to State 0 0 439 841 854 1,066 1,091 1,107 1,129 1,152 1,175 1,198 Cumulative Losses 439 1,280 2,134 3,200 4,291 5,398 6,527 7,679 8,854 10,052 2)7 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST SALES TAX REVENUES Description: Sales and use tax is imposed upon most retail transactions. The Marin County rate reflects only the basic tax as charged by the State. Of the total 7.25%, 1.00% is returned to San Rafael. The remainder is allocated to the State's General Fund (5.00%) and the County for transportation, public safety and other programs (1.25%). Background: Estimates of taxes outlined in the graph below illustrate only the 11% allocation remittances received by the City for each year. Legislative efforts in 1996 provided a change to treat motor vehicle lease "use taxes" as point of sales revenue. This eliminated the County pool approach of prior years. Since San Rafael has a number of auto dealerships, we have received a positive result from this change in reporting. Outlook: As you can see from the graph, the recession of the early nineties had a substantial impact on the City's largest revenue source. The solid line reflects the amount of revenue over an twelve year period had sales tax grown a modest 2% per year. The recent boom in the economy provides for a 5.64% increase in 1997-98 over the prior year. Average increases of 2%, excluding new retail projects, are projected over the next four years. This projection is conservative, and reflects changes in pricing, coupled with trends in retail buying noted below. Major Trends: Much like property taxes, redevelopment projects will contribute substantially to new sales tax dollars. Shoreline Center could bring $353,000 from two strong retailers in front of Home Depot. The Comp USA based Shamrock site could add an additional $362,000. These resources are truly necessary to keep up with the cost of running City operations. Internet sales, an emerging phenomenon, could have long term consequences to point of sales tax revenue. Computer system security issues have held down sales. Local municipal efforts, via legislation, will need to be enacted soon to prevent "tech n o-reta i lers" from inflicting significant losses to sales tax. Total internet sales hit $2.4 billion in 1997. For comparison, catalog and direct mail orders were $53 billion ... all retail was $1.9 trillion. ** Regional and national trends impact sales tax. The auto market has just come through a boom period. Trucks and sport utility vehicles are doing well, automobiles are soft. Overseas, recessions in Asia can and will impact local business. Results have not been evidenced by either of these cycles. However, net long term growth could be impacted by these events. Legislation continues to pose threats. However, one new opportunity exists for expansion of local sales tax. Continually, the State passes special interest bills which reduce or eliminate various taxpayer groups from being subject to the Sales Tax Code. This hurts our overall ability to generate revenue, and usually occurs under the radar screen. Fortunately, SBI 10 was passed in 1997. In a nutshell, large employers who make substantial ($500,000) purchases of equipment and furnishings would be eligible to have the tax treated as point of sale (San Rafael) rather than having the vendor pay taxes remitted into the statewide pool for distribution. Implementation of S6110 is under way, pending administrative hearings by the State Board of Equalization. Through the cooperative City/Chamber relationship, the City may benefit from this new legislation in future years. No provision has been made in the projections for SB110 outcomes. ** - Source: Kiplinger California Newsletter of January 1998. General Fund Sales Tax percentage increase Base Sales tax Shoreline Center Shamrock Center Other SRRA Projects 16,000 14,000 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected -5.65% -2.04% 1.23% 2.33% 8.29% 3.78% 5.64% 2.00% 2.00% 2.00% 2.00% 10,705 10,100 9,894 10,016 10,249 11,099 11,519 12,169 12,412 12,922 13,477 14.300 543 181 181 75 110 General Fund Sales Tax - History and Projections 10,000 10,000 rn m rn rn m rn NM R (n (O M 0) Im 0) M Co M o 0 m a)O M N 0 O O N Fiscal Year 0 Sales Tax - -2% projections Sales Tax 10,705 10,100 9,894 10,016 10,249 11,099 11,519 12,169 12,668 13,213 14,020 14,300 2% projections 10,705 10,919 11,137 11,360 11,587 11,819 12,056 12,297 12,727 13,173 13,634 14,111 How diversified is our sales tax base ? or top 5 = $1,071 9% top 10 = $2,042 18% top 25 = $3,902 34% 29 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST BUSINESS LICENSE TAX REVENUES Description: Business License Tax is imposed on all business for the privilege of conducting business within the City. Most retail, wholesale, professional and service industries pay this tax on a gross receipts basis. A small portion of businesses pay a tax rate based upon the number of employees. Apartments pay a tax based upon the number of rental units. Charitable institutions, fund raising events, educational, governmental and military operations are specifically exempt from taxation under local ordinance. Background: The tax rates are identified in Municipal Code Section 10.04, subject to indexing for inflation. The rates were last modified in 1991. Future rate restructuring would likely fall under Proposition 218 voter approval requirements. Estimated tax revenues are based upon a combination of inflation factors, business expansion and retention, turnover and desk and field audits. Outlook: This source of revenues is sensitive to economic fluctuations. As such, it suffered during the recession of the early 1990's. The tax is expected to grow modestly over the next four years. Major Trends: The taxes collected are largely driven by economic factors. Base rates are changed, subject to inflation limits. Since the bulk of taxpayer's file business license on a gross receipts basis, regional and national, as well as local economic cycles will impact the changes in this resource. Currently, new applicants pay an administrative fee for review of their application. This is reflected in the "Charges for Services" category. There exists an option to implement a fee for the renewal processing. This would require Council action, and is not reflected in the related graph. R11 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST General Fund 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Business Licenses Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase 1.75% 1.39% 2.10% 4.35% 5.16% 5.05% 0.21% 2.00% 2.00% 2.00% 2.00% Business Licenses 1,200 1,221 1,238 1,264 1,319 1,387 1,457 1,460 1,489 1,519 1,549 1,580 General Fund Business LicenseTax - History and Projections 2,000 -- 1,500 - - - - - - - - - - 7.�._ N C 1,000 - T ----------------------------------------- 0 L F- 500 - - - - - - - - - - - -- ---------------- 0 -- rn rn rn m rn to rn OD m rn g o 0 rn rn m rn rn 0) rn 0) m 9 (n o N N Fiscal Year --M—Business Licenses Business Licenses 1,200 1,221 1,238 1,264 1,319 1,387 1,457 1,460 1,489 1,519 1,549 1,580 31 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST HOTEL TAX REVENUES Description: Hotel tax, also referred to as occupancy tax, is imposed on occupants of hotels, inns, motels and other lodging facilities unless such occupancy is for a period of 30 or more consecutive days. The tax is applied to a customer's lodging bill. Taxes are remitted either monthly or quarterly for all approved lodging operators. Background: The current hotel tax rate is 10%. It was last modified in 1988. Factors that influence this revenue source include room rates, occupancy levels, the number of rooms available for lodging, business retention, new business development and tourism. Outlook: The acquisition of Holiday Inn by Wyndham Gardens in fiscal year 1995-96 was a plus for the City. A period of remodeling pulled down potential revenues in that year. However, in 1996-97, Wyndham had a full year of reportable operations and exceeded estimated tax figures. For 1997-98, hotel taxes are expected to climb a healthy 6.63%. In the next four years, transient occupancy taxes are expected to increase about $30,000 per annum, or 2% per year. Major Trends: Based upon actual collections for 1996-97, the City's two largest hotels (Embassy Suites and Wyndham Gardens) combined to generate 85% of the total occupancy tax of $1.402 million. The remaining seven hotels/motels accounted for the other 15% of revenues. Marin has become an active regional visitor destination center. Occupancy levels are extremely high, translating into solid tax collections. Tourism and business customers can fluctuate with economic cycles, both good and bad. A continued strong economy should allow for expansion in this resource. No new San Rafael hotels are projected over the five year period. Development of new hotels in Corta Madera and Novato could have some adverse impact on San Rafael hotel taxes. No provision for new neighboring hotels is incorporated into the projections. 32 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST General Fund 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Hotel Taxes Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase 35.67% 0.91% 12.37% 1.97% 1.76% 20.97% 6.63% 2.00% 2.00% 2.00% 2.00% Hotel (Occupancy) 726 985 994 1,117 1,139 1,159 1,402 1,495 1,525 1,555 1,587 1,618 2,000 0 C R N 7 0 L F 0_ W � O O�1 � Hotel Taxes 726 General Fund Hotel Tax History and Projections M 0) m co 0 Co m O O O Fiscal Year x= Hotel Taxes 985 994 1,117 1,139 1,159 1,402 1,495 1,525 1,555 1,587 1,618 33 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST FRANCHISE TAX REVENUES Description: San Rafael imposes a fee on the distribution and sales of public utility services. City Charter Article XIV provides regulations concerning franchised agencies and businesses. Currently, the City charges PG&E a franchise fee of 1% for gas and 1/2% for electricity. The local cable provider, TCI, pays a 5% franchise fee on a quarterly basis to San Rafael. Background: In 1997, the City adopted a new franchisee fee for refuse services. The 10% rate takes effect July 1 and is imposed on Marin Sanitary Service for refuse and recycling services provided in the franchisee's service area (all of the City, except North San Rafael). For the other public utilities, the current rates are applied to revenues generated within the City limits. Outlook: The graph below takes on two elements. The first bar shows the franchise fees on utility companies only (PG&E and TCI Cable). The second portion shows the new franchise fee for refuse. $539,000 is expected from this new source. Per Council direction, $485,000 of this resource will be used for street repavement work "below the hill". Major Trends: Utility deregulation took effect in California in March of 1998. Across the board cuts of 10% were provided to Pacific Gas and Electric customers. Although beneficial to consumers, deregulation could hurt one portion of the City's franchise tax. Because of deregulation, and the uncertainty about pricing for electricity, a 2.5% decline in utility franchise taxes is forecast for 1998-99. This decline is projected to remain in effect for the succeeding three years. The refuse franchise fee increases in 1998-99 to reflect the first full year of collections (1997-98 collections did not begin until August of last year). Modest increases in the cost for refuse services, if approved by the City Council at annual meetings, should provide small increases to the refuse franchise fee in 1998-99 and outer years. 34 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST General Fund 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Franchise Taxes Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase 9.96% 1.85% 3.29% -0.96% 1.77% 0.95% 0.31% -2.50% 0.00% 0.00% 0.00% Utility Franchises 542 596 607 627 621 632 638 640 624 624 624 624 Refuse Franchise 0 0 0 0 0 0 0 539 614 626 639 652 General Fund Franchise Tax History and Projections 1,500 0 Total Franchise fV M In V LO [O I,- co T m O O T O O O r N O O O W O O O T m m Ln m T O m !A O W m O O O N N Fiscal Year j o Utility Franchises O Refuse Franchise 542 596 607 627 621 632 638 1,179 1,238 1,250 1,263 1,276 35 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST PROPERTY TRANSFER TAX REVENUES Description: Property transfer tax is imposed on any conveyance of real property when a change in "deed" is filed with the County of Marin. Background: The City's Real Property Transfer Tax regulations are laid out in Municipal Code Section 3.22. San Rafael's tax is imposed at the rate of two dollars for each thousand dollars or fractional part of one thousand dollars in sales value. This revenue source was last modified in 1990, resulting in an increase in rates from $1.10 to $2.00 per thousand dollars of value. This rate change is reflect in the chart below. Outlook: This resource, like many tax revenues, is tied to the overall economic vitality of the City. The change in ownership over the past few years has been relatively moderate. The recent boom in market activity translated to a whopping 45.36% 1996-97 increase over fiscal year 1995-96. Given this dramatic change, no growth is anticipated in 1997-98. Major Trends: Pricing explosions are resulting in significant increases in this resource. As presented in the graph, 1996-97 was a boom year for housing sales. Prices have continued to climb in 1997-98, yet the supply of home for sales has not grown substantially. This resource is directly linked to economic viability. The future projections assume only moderate rates of home sales pricing increases. Annual sales volumes consistent with those of 1997-98 form the additional basis for marginal gains in this resource. Given this to be an imposition of a tax, any change in rates would require compliance with Proposition 218 (subject to voter approval). 36 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST General Fund 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Transfer Tax Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase -13.42% 76.02% 3.99% -3.51% -1.82% 45.36% -1.62% 2.00% 2.00% 2.00% 2.00% Property Transfer Tax 395 342 602 626 604 593 862 848 865 882 900 918 1,000 800 N 600 ---- m N 7 r400rY+---- F- 200 -- - - - - - - O N M m O O O 01 N O O W 6T General Fund Property Transfer Tax- History and Projections v in 01 � (7 � Transfer Tax 395 342 602 626 m r� m O LD (0 m m Fiscal Year Transfer Tax 604 593 3 ro rn O T T O r. -CD 0) m m m R O O O OO N N 862 848 865 882 900 918 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST OTHER TAX REVENUES Description: This section consists of two primary tax sources. The first, and largest source of taxes, is the Paramedic Tax. It is used to pay for emergency medical services (paramedics) in both incorporated City limits as well as County contracted service areas. The second tax is a Property Development Excise Tax. Commonly known as a Commercial Development Tax, a charge is imposed upon construction and occupancy of commercial and industrial development within the City. Background: Paramedic Tax: Based upon tax reductions under Proposition 13, plus strong citizen demand for a fully operational paramedic program in San Rafael, the voters overwhelmingly approved a special service tax in 1979. As initially adopted, the Paramedic Special tax was imposed on the "owner of a living unit" as shown on the County Assessor's tax rolls. Pursuant to Municipal Code Section 3.28.040, the Tax was initially approved at $12 per living unit. The tax rate can change, per Municipal Code, for changes in the cost of service. Subsequently, the tax has been adjusted to reflect changes in charges and costs of the program. In 1988, voters approved an amendment to the Tax, extending such levy to the owners of "nonresidential classified structures". The non-residential levy is 5 cents per square foot, with a flat tax maximum of $500 for each one (1) cent per square foot of tax levied. Practically speaking, a 50,000 square foot building would pay $500 for each cent of tax levied, or a maximum annual tax of $2,500. Currently, levied taxes for commercial are capped out at $1,785. Ordinance 1699, approved July 15, 1996, set the following rates which remain in effect today: Residential - $40 per living unit; Nonresidential - $.0357 per square foot. A maximum per square foot rate of $.05 was approved by the voters as part of the 1988 amendment. No maximum tax rate for residential living units has been set by the voters. Prooertv Development Excise Tax: Pursuant to Municipal Code Section 3.26, the City imposes an "excise tax" on all building permits issued for commercial and industrial development in San Rafael. The tax is levied at 6 cents per square foot for industrial development, and 12 cents per square foot for commercial projects. Outlook: Minor increases in the number of housing units and commercial/industrial development have provided some increase to this tax in 1997-98 when compared to the last rate setting of 1996. Property Excise Taxes are predicated on new commercial and industrial development. Since economic expansion is buzzing currently, this tax is up as illustrated in the table below. Major Trends: County areas served by City of San Rafael paramedic units will be asked to re -ratify this tax at a special election in November. Currently, the cost of our program is paid for by both this tax and third party billing (contained in the "Charges for Services" section of the Plan). As part of this voter approval process, San Rafael may want to consider reviewing the full cost of service allowed under the Municipal Code and seek tax changes for paramedic services as appropriate. Property Excise Taxes will continue a dynamic cycle as new industrial and commercial projects are approved for development. 38 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST General Fund 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Other Taxes Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase 16.63% 2.02% -0.79% 19.88% 6.92% 8.42% 1.44% 3.00% 3.00% 3.00% 3.00% Paramedic Tax 848 989 1,009 1,001 1,200 1,283 1,391 1,411 1,453 1,497 1,542 1,588 Commercial Tax 8 11 12 31 2 1 24 25 26 27 27 28 General Fund Other Taxes - History and Projections 2,000 II 1,500 C R Fiscal Year 13 Paramedic Tax 17 Commercial Tax Other Taxes 856 1,000 1,021 1,032 1,202 1,284 1,415 1,436 1,479 1,523 1,569 1,616 39 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST LICENSE AND PERMIT REVENUES Description: As part of General Fund services, a variety of permits are required related to the development, use and administration of property in San Rafael. Permits are issued in order to maintain public safety and demonstrate compliance with local and State requirements. Background: Historically, permits have been required by several City functions. By far the largest portion of License and Permits belongs to the Building Division. They are responsible for the issuance, and inspection, of permits for building expansion or modification, electrical, and plumbing projects. The Planning Division of Community Development generates use permits for commercial, industrial and home occupations, as well as new business applications and reviews. Police is responsible for burglar alarm permits. Lastly, the Engineering Division of Public Works issues trip permits, provides occupancy and grading permits, plus inspections related to public works projects, and performs street cut permit and inspection services on behalf of public utility requests. Outlook: The majority of permits are driven by economic development and expansion. Of the $547,000 of budgeted Licenses and Permits revenues, $395,600 are tied to building, electrical and mechanical permits issued by Building and Safety. The implementation of the business cost study in 1997 demonstrated that the City was collecting full costs on most major permitting activities. No changes in rates were made to these service areas. Major Trends: Not much change is projected in this category. Annual cost study updates should validate whether full cost recovery continues. To the extent some services fall below current recovery policies, changes can be proposed to rates in future years. Any increases must be balanced against developer sensitivity and maintaining a business friendly atmosphere for San Rafael. Modest increase in revenues are forecasted for the next four years, based upon existing permit rate structures. 40 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST General Fund 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Licenses & Permits Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase 9.06% 23.59% 0.65% -9.70% 52.74% -8.59% -6.32% 3.00% 3.00% 3.00% 3.00% Baseline Permits 342 373 461 464 419 640 585 548 564 581 599 617 General Fund Licenses and Permits History and Projections o --- - N f7 V' In (0 h c0 O O N 61 T T m T O T O O O C M co M o rn rn rn M m M M g rn rn rn rn rn rn m M Cn rn o Fiscal Year 0 Baseline Permits Total Permits 342 373 461 464 419 640 585 548 564 581 599 617 41 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST FINES AND FORFEITURES REVENUES Description: Vehicle Code and Parking infractions, delinquent Library materials and Code Enforcement violations can lead to the imposition of fines. These categories make up the Fines and Forfeitures for the City's General Fund. Background: Historically, Fines and Forfeitures was driven by the collection of a number of State and local Municipal moving and parking violations. In 1997, the City began a comprehensive code enforcement program by employee three staff to make certain deficient housing, safety and other occupancy deficiencies have been brought up to City standards. To the extent violations occurred, pre -citations warnings were provided to property owners and managers. If not corrected, Administrative Citations were issued to the owner. Fines must be paid and remedies implemented in order to prevent further enforcement actions. Also, changes in the distribution of court fines were approved by the State legislature in 1997. Traffic violation remittances to the County were increased. San Rafael expects to see $40,000 more in vehicle and moving violations beginning in 1998-99. The City also expects to continue paying $5.00 per citation as part of the cost of collection and administering our parking citation program. Outlook: Revenues from citations are new for 1997-98. An administrative hearing officer is in place to insure compliance with health and safety, fire and other codes. This is not expected to be a large revenue generator. Instead, the program is designed to make certain all San Rafael residents live in safe, secure living units. Traffic fines, and the enforcement thereof, are becoming more of a concern for local residents and businesses. The revenue projections are based upon current levels of enforcement activity. Major Trends: Vehicle code violations are set by State law. San Rafael, as a local municipality, must charge only established fines. Parking citations, adopted and approved locally, can be set by Council action. During the last cost study, an expired meter violation was increased by $1.00. Based upon total parking citation issued, $28,000 was included in the 1997-98 Vehicle/Parking Fines total of $647,000. Revenue estimates assume modest changes to State violations and no change in local parking infractions. Any new increased enforcement efforts would impact projections favorably in outer years. Code enforcement violations are set pursuant to Municipal Code. Presently ranging from $50 to $500 dollars, no increases are projected over the next four years. More time in this program will dictate to what extent any of the fines should be modified. Library Fines are established as an incentive to return materials and not raise revenue. Adjustment to these are not expected through 2002. If they do occur, change to the forecast would be almost transparent. 42 General Fund Fines/Forfeitures percentage increase Vehicle/Parking Fines Admin. Citations New Fines - Traffic 1990-91 1991-92 Actual Actual 1996-97 -27.88% 642 463 0 0 0 0 1,000 750 - � - N C M� 500 '1 23 O vaveaoeoeay... voovvvovoaovam F Qavvvvaooaoavn� �me" oovaoonvvm Qa QQ v n o oaanoaQ 250 °oc°v°v°o°oo°ao°o°v°va oovvvvvovooavvaoavavvvvvva g 000aonan0000n00000aooaona 0 ovoavvvvvovnovv000vvvavvv m rn rn CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected -1.51% 439% -22.06% 13.75% 26.30% 21.39% 2.00% 2.00% 2.00% 2.00% 456 476 371 422 533 647 660 673 687 700 0 0 0 0 0 23 14 14 15 15 0 0 0 0 0 0 40 41 42 42 General Fund Fines and Forfeitures - History and Projections New Fines - Traffic ` to .ovvooaoouoea'oo'av- a QQov'nana000conavoa000oac0000ve000ua000n0000aoovnui wvvveoov0000vcvvvvvvv000`oavvvvanvvovvaovvaoavv000avvvvoaoavvvvvvvnvvvvvv000i �oov00000000000cvoavavvaa000avoa0000aoov0000vov000aoaovvvonvOn00000aoovnnaam vvvaav000000vooaaovavvvvvavav voovvavvvovvavavvvvvvovnvoi vvvavvavoaoovvvovvvvvvvvvooav VehlCle/Parking Fines vvvoovavvvoavvvve000aovvvm Iv IO vQvQQQvaavoonaavonvoQvaaoaavvaooavvavoaoavvQvvaaQvOvQ oa as vv0aoaQ0-0a-na-nnQ-n-QQ-QQ-nOnn-QQ-aO-QQ-na-QQ-aQ-nnQ-aa-n-nn- QQaO.goo nnnaQaaaQ aa0QQa QQQQnQQQQQOQQQQQQaanaaaaaaa IvovovovvvnavQQJOOaaQQaaaavaaQaQaQaQaQonQa avaavaoQaaoQQvvvnnQvoQnQQvvaQQaaQvvanavvnvaOvQQQvvOQaovQQavvQQQneQQavoQQavvQaQvvQQQvvnQQvvOaQovnQaoiIIIl LO to ovvvvvvvvvvvvavnaavovavvvvovovvPvvovvvevvavvovoaovovvovaavvovvvavoovvvvvvvol no M LO co no M M LO co co Fiscal Year O Vehicle/Parking Fines D Admin. Citations 13 Portion to County O New Fines - Traffic Admin. Citations ------ ' ]aa0aaaUna0000I 1aaQ13000Qaaon.. �ovvvvvvvvvvaan wa nonavavo r 0 O N N Fines & Forfeitures 642 463 456 476 371 422 533 670 714 728 743 758 Portion to County 193 139 137 143 111 126 165 0 0 0 0 0 NOTE: Up through fiscal year 1996-97, the Vehicle Code Fines revenue were recorded net of charges due to Marin County. Beginning in fiscal year 1997-98, the Vehicle Code Fines are shown based upon total collections. Charges to the County are treated as appropriations of the General Fund. 43 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST INTEREST AND RENTALS REVENUES Description: This category of revenue represents interest earned on pooled investments and loans, plus rents received for the use of City owned assets. Background: Idle cash and reserves are pooled for all funds and administered in accordance with the City's investment policy. Priority is given to a safe return of principal first, availability to meet expenses (liquidity) second, and finally rate of return (yield). Interest earned on State pooled funds and specific investment instruments is allocated to all funds based upon a quarterly weighted cash balance methodology. Rental income is received from leasing a portion of the Corporation Yard site to a gas station, outdoor bus shelter advertising, and City owned property adjacent to a yacht club. Interest on two loans is repaid in accordance with agreements established between the City and the borrowers. Rates of return are tied to the State pooled investment fund, and are adjusted annually. Outlook: No substantive change to this category is expected over the next four years. The General Fund is expected to continue holding a 10% operating emergency reserve. Since the budget is built on a cash flow cycle, projections for interest should remain consistent with current cash flow cycles. No major one time expenditures are anticipated to reduce reserves, thereby causing interest income to decline. Rental income will decline beginning in 1998-99 by $42,600 once the Corporation Yard is sold to Fair Isaac as part of their five building development. Major Trends: Economic forecasters for 1998 have predicted a continued period of strong employment, low inflation, well managed inventory levels and solid growth in construction. When combined, these factors will likely allow the Federal Reserve to maintain, or only slightly modify, its interest rate structure now in place. Since City yields are essentially tied to Federal Policy and U.S. Treasury rates, no change in Policy represents equivalent rates of return down the road. One new accounting change takes place in June of 1998. Known as GASB 31, the valuation of the entire investment portfolio must now be presented at market value rather that purchase price (cost). In 1997 and prior years, investments were presented at cost and only adjusted downward if a "significant decline" had occurred in market value of these assets. For fiscal year 1997-98, the June 30 1997 values must be restated to market and compared to June 30, 1998 market values. Changes will be recorded as unrecognized gains or losses (depending on which way the comparison goes). Bottom line - changes in market value will be reported in this category and spread across all funds which pool City cash. Since market value for June 30, 1998 can not be predicted, no provision in the forecast has been made for this change in accounting principle. 44 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST General Fund 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Interest and Rents Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase -8.88% -16.25% 44.40% 14.93% -5.45% 12.91% -11.44% 2.50% 2.25% 2.259/6 2.00% Interest and Rents 304 277 232 335 385 364 411 364 373 381 346 353 Interest on Loans 18 29 28 27 26 25 Lease Expiration (43) 500 1 N C 7 250 O t H General Fund Interest and Rents - History and Projections O_ •- ...n,-=.. ._:rte rn rn in rn 9 9 9 m 9 o 0 0 rn a) M rn M M rn M M M o 0 O] W O) O) O) O) m O) 4) O) N N r Fiscal Year O Interest and Rents O Interest on Loans Interest and Rents 304 277 232 335 386 364 429 393 401 366 372 378 NOTE: A change in accounting practices will require the City to record unrealized gains and losses beginning in FY 1997-98. No provision has been made for the market flucatation which will impact the unrealized portfolio gains and losses. Only realized interest and gains or losses are included in future projections. 45 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST OTHER AGENCIES REVENUES Description: Revenues from other governments are classified in the "Other Agencies" category for the General Fund. The bulk of these resources comes from four sources: Motor Vehicle In -Lieu Fees, Fire Protection Service, Charges to the San Rafael Redevelopment Agency and Proposition 172 sales tax. Background: The Motor Vehicle In Lieu Fees are paid, in lieu of property tax, by the registered owner of a vehicle. This fee is paid initially at the date of purchase on new or used vehicles. In second and subsequent years, it is remitted as part of the vehicle registration process. A two percent rate is applied to vehicle value annually. The 2% rate applies to the original sales value in the year of purchase. By State Statute, the valuation declines each year by 10% of the remaining value, leveling off at a 15% valuation factor in year 11. Of the total fees collected, approximately 17% are distributed to cities. As part of an agreement established in 1976, San Rafael provides Fire Protection Services to County residents. The City is reimbursed for the cost of personnel providing the services. Reimbursements are adjusted upward annually by the salary adjustments agreed to by the San Rafael Firefighters Association. In fiscal year 1993-94, pursuant to voter approval, the City now receives an additional .50% of what was the State's General Fund sales tax allocation. This action was done, in part, to soften the impact of the State's taking away of local property tax. The one half percent supports police and fire services. The City has traditionally billed the San Rafael San Rafael Redevelopment Agency (SRRA) for the cost of services provided to the Agency. Up through 1996-97, engineering time was included, along with administration, planning and vehicle usage, as part of the quarterly billing process. Beginning in 1997-98, engineer time was directly allocated as a cost to the Agency. The remaining services continue to be billed as necessary. Outlook: Because Motor Vehicle Fees represents taxation of vehicles, new auto sales are a critical component to growth in this revenue source. The lagging economy several years ago caused a rippling decline in this motor vehicle fees. The recent rise in auto sales translates to an estimated increase of 5.32% for 1997-98. The forecast is consistent with auto sales changes. CSA #19 Fire Protection Services are projected based upon existing fire labor agreements through June 1999. Outer years reflect estimated firefighter salary increases. Charges to the SRRA are flat. Concerns express below will need to be addressed by the Agency in order to sustain this resource over a five year period. Proposition 172 sales taxes is tied to the 1 % projections reflected on a separate graph. This source of funds is distributed by the County, and is more closely tied to State sales tax growth. Major Trends: The greatest possible impact to this source of funds is two tiered. Currently, bills are circulating in Sacramento to either reduce or eliminate Motor Vehicle Fees. This would be a crippling blow to local services. Torpedoing a $2,000,000 hole in the budget would require painful decision making regarding service priorities. San Rafael and other cities must never be asleep when it comes to Legislators tweaking local government revenue allocations. As discussed in more detail In the "AGENCY" section of the Plan, , the Agency is on a short life cycle. Bond proceeds will disappear in the next couple of years. Without significant new resources and County agreement restructuring, the likelihood of continuing Agency billing for services is remote at best. MCI CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST General Fund 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Other Agencies Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase 2.04% 5.05% -3.97% 4.01% 7.66% 4.57% 5.32% 2.00% 2.00% 2.00% 2.00% Motor Vehicle Fees 1,670 1,704 1,790 1,719 1,788 1,925 2,013 2,120 2,162 2,206 2,250 2,295 CSA #19 Fire Service 574 602 620 638 690 715 762 796 820 844 870 896 Other Agencies 410 397 1,160 851 804 729 851 334 334 334 334 334 Prop 172 Sales Tax 0 0 0 156 180 214 200 208 212 216 221 225 Grants 85 26 17 206 21 141 12 0 0 0 0 0 Cigarette taxes 136 65 7 0 0 0 0 0 0 0 0 0 Motor Vehicle Offset 0 0 0 0 51 51 51 51 51 51 51 51 General Fund Other Agencies Revenue - History and Projections 4,000 Prop 172 Sales Tax Gra Motor Vehicle Offset IV Cigarette taxes 3,000 c m N 0 0 L F- 2,000 Other Agencies r CSA #19 Fire Service Other Agencies i N ('7 V In O h CoO O N 9 CA O) 0) CP O O O m ON1 CA CA m O0) m (m T T m @ A NA A o O N Fiscal Year 10 Motor Vehicle Fees D CSA #19 Fire Service D Other Agencies O Prop 172 Sales Tax ® Grants D Cigarette taxes ® Motor Vehicle Offset 2,875 2,794 3,594 3,570 3,534 3,775 3,889 3,509 3,579 3,652 A- 3,725 3,801 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST CHARGES FOR SERVICES REVENUES Description: Activities provided on a "fee for service" basis are the backbone of the Charges for Services revenue category. Examples of these services include design review, Falkirk classes, appeal fees, third party billing for medical transportation services, and payment received from the San Rafael Sanitation District (SRSD). Background: Of the $2,275,000 projected for 1997-98, the bulk of the charges come from SRSD ($698,000) and third party billing ($800,000). Pursuant to an agreement between the City and SRSD, the City is reimbursed for the full cost of operating and maintaining the District's system. Cost reimbursement includes salaries, benefits, operating expenses, overhead and rent for District administrative staff. This service fully recovers all costs. City operations are included as part of District charges to sewer customers. Third party billing is managed by the Fire Department. Insurance carriers are charged for transportation from a paramedic response site to the local hospital. Insurance providers pay established rates to a billing service, who in turn remit collections to the City. The remainder of services have been studied as part of a business cost recovery program initiated in 1997. Finance staff determine the full cost of providing these services, and identify the number of units provided in conjunction with line Departments. Proposals are made to the City Council for percentages of cost recovery for each service. Outlook: Based upon recommendations of the initial cost study approved last October, fees were increased in a number of services. Most of the impact occurred in Planning services. Changes approved reflect recovering 100% of the cost for services, excluding appeal fees. Approval of the new rates is split over two years and is reflected in the accompanying table. Mayor Trends: As new services are identified, cost recovery proposals can be prepared to recommend to what extent the users of the services should "pay their own way." These services would not include taxes, assessment and other revenues required to be voter approved under Proposition 218. Continual updates to existing service costs, coupled with annual recovery recommendations, is an integral part of sustaining this revenue source over the next five years. Negotiations with SRSD will be based upon recovering the full cost of providing sewer services to the District. The projections shown are based upon this assumption. W 5 YEAR PROJECTION General Fund 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Charges for Services Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase 22.32% -14.34% -23.79% 74.95% 39.83% -3.49% 5.69% 3.50% 3.00% 3.00% 3.00% Base Fees 690 844 723 551 964 1,348 1,301 1,375 1,632 1,825 1,880 1,937 New Fees -Cost Study 202 140 Sanitation District 400 476 424 517 572 609 638 698 722 744 766 789 General Fund Charges for Services - History and Projections 3,000 2,500 2,000 New Fees -Cost Study c 1,500 0 r 1,000 500 0 Base Fees Sanitation District It LO l0 r co O O N 0 d) 0 0 O9 9 0) O O O m lA m m 0 Ort m 001 O O 0 0 O) 0 0 O) 0) 0) 0) 0) N N Fiscal Year 0 Base Fees O New Fees -Cost Study O Sanitation District Totals 1,090 1,320 1,147 1,068 1,536 1,957 1,939 2,275 2,495 2,569 2,647 2,726 49 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST OTHER GENERAL FUND REVENUES Description: This category serves as a catch all for revenues which do not fit into any of the primary categories. Examples include the sale or real or personal property, damage recoveries, and reimbursements to the City. These sources of funds are erratic by nature and are the least predictable of all General Fund revenue sources. Fortunately, they also represent the least amount of revenues. This means volatility in these sources has little impact on the overall performance of General Fund revenues. Background: Assets which are disposed of, including land, equipment and furniture, are accounted for as sale of real and personal property. Reimbursements for damaged City property are billed back to the responsible party. Should the City require reimbursement for a specific expenditure within a Departmental activity, the revenue generated is accounted for in this grouping. Up through 1996-97, some "Charges for Services" and "Other Agencies" revenues were captured within the "Other Revenues" category. A thorough review of the entire City revenue account structure in 1996-97 produced changes in accounting which were incorporated into the budgeting system for 1997-98. The regrouping has placed collections of various revenues into the appropriate categories for future forecasting and tracking. Outlook: Given the variety of miscellaneous sources of receipt, the forecast is to maintain the current fiscal year level of Other Revenues for the next four years. Major Trends: None 50 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST General Fund 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Other Revenues Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase 79.48% -43.87% 71.85% -54.09% 1.41% -35.65% -41.01% 3.00% 3.00% 3.00% 3.00% Other Revenues 268 481 270 464 213 216 139 82 84 87 90 92 General Fund Other Revenues - History and Projections 500 - 450 + 400 350 N 300 250 r 200 - 150 - 100 Other Revenues 50 - 0 ni cn v LO m n m rn rn rn rn rn m 9 rn o cv T o 0 0 C> 01 rn m Cl) rn rn m m m T W rn 0) m m o 0 62 Q7 N N Fiscal Year D Other Revenues Totals 268 481 270 464 213 216 139 82 84 87 90 51 92 32 53 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST RECREATION AND CHILD CARE PROGRAMS Description: Separate revolving account activities are maintained for Recreation and Child Care Programs. The cost of operating three community centers, including both program as well as administrative functions, is included in the Recreation Fund. Child Care accounts for programs offered at eleven school sites reflecting a combination of pre-school and after school programs. Background: Both activities currently operate on a premise of collecting fees to pay for programs offered to the community. Child Care was believed to be self funding, based upon fees paying for direct costs of programming (salaries, benefits, operational costs). Recreation, driven by private sector competition and market conditions, set fees at appropriate levels to cover the expenses for a variety of youth, adult and senior services. In addition, rents were established for the use of community centers and other public facilities. Outlook: As demonstrated in the graph, payment for the cost of operations should largely be covered off by fees. The growth in the cumulative surplus is due to collections of child care fees exceeding the costs of this program. Recreation should continue to receive approximately a 50 to 55% recovery in their direct cost of programming. Given the market sensitivity to rates for recreation activities, percentage of cost recovery changes are not likely to change significantly overtime. Major Trends: A couple of opportunities exist to enhance the City's overall financial picture. First, a specific plan could be developed which would support a policy decision of rate subsidies for overall Recreation programs. Whether this is identified as a specific dollar sum, a percentage of cost, or some other formula, a defined solution would stabilize tax subsidies and require the Recreation staff to work their programs within the remaining budgets. Surpluses generated from one year could be carried to offset periods where costs were more than fees could generate. Second, the Child Care programs should be able to support the cost of general administration and building related maintenance. Again, working with Child Care management, a means of partially or wholly funding these indirect program expenses, as pointed out in the business cost study, would free up General Fund dollars to be directed toward high level needs. Child Care in Marin County, and specifically San Rafael, is a valued service that will continue well into the next century. One last thought. Both programs could use sufficient funding for computer system application overhauls. One suggestion would be to add a nominal fee to each child care bill, class program fee and room rental to be set aside to fund a major system conversion. Although not likely to cover all the necessary application costs, this new revenue should generate a consistent source of funds to pay for technology requirements associated with service delivery. 54 Recreation/Child Care Summary Recreation Fees Child Care Fees General Tax Dollars - Recreation General Tax Dollars - Childcare Total Revenue Recreation Programs Child Care Programs CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected $715 $683 $687 $760 $770 $703 $734 $753 $774 $790 $805 $821 $1,149 $1,316 $1,359 $1,582 $1,808 $1,793 $1,952 $1,914 $1,990 $2,030 $2,071 $2,112 $523 $524 $529 $481 $602 $684 $610 $685 $708 $734 $760 $787 $43 $9 $7 $6 $2,430 $2,533 $2,575 $2,823 $3,180 $3,180 $3,303 $3,358 $3,473 $3,553 $3,636 $3,721 $1,238 $1,207 $1,216 $1,241 $1,372 $1,387 $1,344 $1,438 $1,483 $1,523 $1,566 $1,609 $1,193 $1,325 $1,359 $1,558 $1,735 $1,728 $1,889 $1824 $1,881 $1,933 $1,986 $2,041 Total Expenditures $2,431 $2,532 $2,576 $2,799 $3,107 $3,115 $3,232 $3,262 $3,363 $3,456 $3,552 $3,650 Excess (Deficit) ($1) $0 ($0) $24 $73 $65 $70 $96 $109 $97 $84 $71 Cumulative Excess (Deficit) $0 $0 $0 $24 $97 $162 $233 $329 $438 $535 $620 $691 Beginning Child Care Balance 1 $4,000 - $3,500 $3,000 m $2,500 v $2,000 o $1,500 L ~ $1,000 $500 $0 ($500) M m N m of Recreation direct costs paid by fees i' �kl c u� Co m m m in m m m rn Fiscal Year Recreation/Childcare Programs - Five Year Projection f Total Revenue OTotal Expenditures 'Excess (Deficit) 5774% 56.58%, 56.48% 61.24% 56.13% 50.68% 55 01 9 O a5 01 in m N O O 6 N N Cumulative Excess (Deficit) 54.62% 52.38% 52.21% 51.83% 51.44% 51.06% projected twelve year average 54.37% CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST Recreation Programs 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Revenues Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Pro,I �ected Projected percentage increase 7.24% 2.35% 14.47% 10.08% -3.18% 7.61% -0.71% 2.06% 2.00% 2.00% 2.00% Recreation Program Fees 715 683 687 760 770 703 734 746 768 790 805 821 Childcare Program Fees 1,149 1,316 1,359 1,582 1,808 1,793 1,952 1,860 1,952 2,030 2,071 2,112 Cost Study Increases 0 0 0 0 0 0 0 61 44 0 0 0 Recreation and Child Care Revenues - History and Projectior 3,000 Cost Study Increases H 2,000 M i m Childcare Program Fees N 7 O L ►- 1.000 Recreation Program Fees o - T CP T in T � Co T o O N M Q N CD Co 0) m QI to T T Fiscal Year O Recreation Program Fees O Childcare Program Fees D Cost Study Increases TOTAL 1,864 1,999 2,046 2,342 2,578 2,496 2,686 2,667 2,764 Cost Study - Recreation Changes 7 6 Cost Study - Child Care Changes 54 38 61 44 56 0 0 N N 2,820 2,876 2,934 57 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST PARKING DISTRICT SERVICES Description: The Parking Services District encompasses several services into one fund. The District represents a geographic area in downtown San Rafael that provides concentrated police and parking enforcement services. Three police officers patrol the downtown area during peak business hours. Parking enforcement staff are charged with monitoring parking regulations on District streets as well as parking garages and lots. One Account Clerk in the Administrative Services Department handles all of the billing and collection of parking citations. Public Works parks and facilities staff are also charged to this fund and provide maintenance and cleaning services to publicly owned properties. Lastly. part time employees staff the garage. The Economic Development Director for the San Rafael Redevelopment Agency administers these staff positions and oversees the daily operating costs (utilities) of the lots and garage. Background: Collections from coin operated parking meters and rents paid on the garage are put into this fund. Over time, the increased cost of operations and additional foot patrol staffing have exceeded the revenues necessary to pay for all expenses. Although rate increases in the meters has occurred in prior years, they have not kept up with the additions of staff added to this service center. Outlook: This activity really needs restructuring. If this service could be constructed as a self funding enterprise, then all costs, including proper lot maintenance, garage repair and meter replacement could be accomplished. This fund not only has a problem funding infrastructure needs, but just meeting its current operating expenses. Parking tickets and bails, totaling about $500.000 annually, are generated as part of meter violations are put into the general fund. According to cost study results, approximately 95% of all parking tickets issued are tied to the downtown District. Putting this resource into the General Fund represents a lack of matching the costs (enforcement personnel) with revenues. Realize that shifting parking fines to this fund would resolve a problem here, but would create a budget problem elsewhere. Major Trends: Clearly, some policy decisions need to be reached with identify to what extent the District services are paid through coin collection, lot rents and ticket revenues. A plan should be developed to make this service self funding so that the infrastructure is maintained at a high quality level. This is particularly true when these lots will be adjacent to a number of new, high quality projects currently under development in downtown. Foot beat staff may need to be treated as a cost of service to the General Fund, just like any other patrol function. Shifting this cost of service back to the General Fund may be necessary in order to focus District revenues on more directly related expenses. Long term, it is likely new structures or lots are going to be required to accommodate all downtown activities, If this fund could be revamped to show a positive revenue stream, it may be possible to issue bonds to construct needed amenities and repay the debt out of future revenues. One last solution could be those dreaded words - assessment district. Several types of Business Improvement Districts can be formed to support a variety of existing and/or new services for downtown merchants. WN CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST Parking District 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Summary Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected Meter and Garage Revenues $336 $433 $500 $525 $499 $512 $629 $636 $669 $682 $696 $710 Interest Earnings $18 $15 $12 $12 $14 $16 $7 $14 $12 $12 $12 $12 General Tax Support $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Revenue $354 $448 $512 $537 $513 $528 $636 $650 $681 $694 $708 $722. District Operating Expenses $297 $352 $580 $422 $560 $555 $670 $742 $768 $793 $818 $845 Billing Support $4 $5 $0 $0 $0 $0 $72 $65 $67 $69 $71 $73 Unfunded Lot/Garage Structure Mtce $77 $79 $80 $82 $84 $85 $87 $89 $89 $89 $89 $89 Unfunded Meter Replacement $12 $12 $13 $13 $13 $13 $14 $14 $14 $14 $14 $14 Total Expenditures $390 $448 $673 $517 $656 $654 $843 $910 $938 $965 $993 $1,021 Excess (Deficit) ($36) $0 ($161) $20 ($143) ($126) ($207) ($260) ($257) ($271) ($285) ($300) Cumulative Excess (Deficit) $95 $95 ($66) ($46) ($190) ($315) ($523) ($783) ($1,040) ($1,311) ($1,596) ($1,895) Beg. Balance - Parking District Fund $131 Parking District - Five Year Projection $1.500 "- $1000— - rT $500 aF111", F1 `tApf6 III ��, p CO Of O $0N 1�/1' W I., rn O O O OOi T m T W q C r ($SOO) o� O o F N N ($1,000) FISCAL YEAR ($1,500) ($2,000) ®Total Revenue I Total Expenditures —*---Excess (Dericit) --X—Cumulative Excess (Deficit) 59 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST Parking District 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Expenses Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected '3.25% Projected percentage increase 18.72% 64.69% -27.19% 32.51% -0.82% ' 20.75% 10.76% 3ANo 3.24% 3.26%' Operating Budget 297 352 580 422 560 555 670 742 768 793 818 845 Billing Support 4 5 0 0 0 0 72 65 67 69 71 73 Unfunded Lot Mtce 77 79 80 82 84 85 87 89 89 89 89 89 Unfunded Meter Repl. 12 12 13 13 13 13 14 14 14 14 14 14 Parking District Expenses History and Projection 1.000 Unfunded Meter Repl. - �- 800 Unfunded Lot Mtce - - - = ' ........ .:. Billing Supports '. N 600 V) N 7 . r 400 Operating Budget 200 0 0 rn m in C) rn Co aj o 0 0 it Gf m D7 oNi O) Cm n 01 IT Q) in m m o^i rn m ai o N 0 N Fiscal Year 0 Operating Budget 13 Billing Support 17 Unfunded Lot Mtce C3 Unfunded Meter Repl. Totals $390 $448 $673 $517 $656 $654 $843 $910 $938 $965 $993 $:.021 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST Parking District 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Revenues Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase 26.55% 14.29% 4.88% -4.47% 2.92% 20.45% 2.20% 2.00% 2.00% 2.00% 2.00% Parking Meters/Garage 336 433 500 525 499 512 629 607 649 682 696 710 Interest Earnings 18 15 12 12 14 16 7 14 12 12 12 12 Cost Study Increases 0 0 0 0 0 0 0 29 20 0 0 0 Parking District Revenues History and Projections 1,000 Cost Study Increases 750 -------------------- Interest Earnings - = S C I N 500 3 o i L ~ 250 Parking Meters/Garage . D N fh l[) Co Oom O N rn m m m m m m m m o o O rn rn rn m rn rn rn rn Co rn o 0 O O O O m m m m m m N N r O Parking Meters/Garage TOTAL 354 448 512 537 Fiscal Year 9 Cost Study Increases E3 Interest Earnings 513 528 636 650 681 61 694 708 722 62 63 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST STREET AND RIGHT OF WAY MAINTENANCE SERVICES Description: Cities are allocated a share of gas taxes collected by the State. Section 2106(a) of the Streets and Highways Code provides that each city shall receive a fixed monthly apportionment of 8400 (or $4,800 per year). In addition to this fixed amount, a portion of the overall taxes are allocated to cities after counties receive their respective sum. Gas Taxes are broken into several distinct taxes as noted below. Streets and Highways Code Section 2107 provides for a monthly apportionment to each city based upon a population distribution formula. Cities receive $.00725 of the motor vehicle license tax calculated for San Rafael. Also, in accordance with SB 215 adopted in 1981 and amended as recently as 1993, cities receive an additional S.09 per gallon. Section 2106 and 2107 resources can only be spent on construction, improvement and maintenance of public streets. Section 2107.5 of the State Code allows cities to receive a fixed sum to be paid based upon population. Cities with populations ranging from 50.000 to 75,000 (San Rafael's category), get tax revenues of $7,500 per year. Section 2105 provides for cities receiving a sum, distributed per capita, equal to the net revenues derived from 11.5 percent of the highway users tax in excess of $.09 per gallon. $350,000 of gas tax funds are used annually to support Street Maintenance road repairs. The balance remains in this fund to pay for street resurfacing projects. $485,000 of franchise fees are earmarked from 1997-98 and subsequent years to pay for additional street resurfacing projects in the southern portion of the City. The final current funding source is $100,000 of General Fund support to pay for ADA related projects. Prioritized on a list , most of the ADA funds have been earmarked to pay for sidewalk ramping for disabled access. Background: Gas tax revenues have not kept up with the cost of maintaining city streets. Although gas prices have increased, taxes are levied on a per gallon basis and have not kept up with inflation. Gas taxes by themselves can no longer meet a significant backlog of capital projects for streets. curbs and gutters. Outlook: Once again, infrastructure drives the financial picture. For a long time, insufficient funds have resulted in substantial deferred maintenance on City streets, sidewalks, curbs, gutters and bridges. After paying for operating costs, about $1.2 million is available for street resurfacing. Although this may seem adequate, this only pays to overlay about 10 miles of the City's 136 mile of roads. And some portion of this money must be used to meet reconstruction on major arterial and other aged avenues. The larger need is adequate sidewalk replacement, which should be done in cooperation with street tree replacement. Major Trends: Street resurfacing requires about $1.5 million per year to reconstruct and overlay numerous streets. This assumes that they most streets are resurfaced every 20 years. Funding for streets is still about $300,000 short per year. Under current law, no new major revenue opportunities exist to solve this situation, with the exception of voter approved solutions. In addition, the graph shows the effects of maintenance over 20 year cycles. Lack of sufficient efforts in prior years results in needing a major one time infusion of cash to bring roads and sidewalks up to an appropriate maintenance level. The passage of a county wide transportation tax in November could provide a partial solution to this situation. By no means will this generate the $1.250 million needed annually to solve this situation. 64 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST Street Maintenance 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Summary Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected Gas Tax Revenues $770 $910 $904 $979 $1,026 $1,018 $1,079 $1,060 $1,081 $1,103 $1,125 $1,147 Interest on Gas Tax Funds $34 $22 $23 $34 $35 $38 $38 $36 $36 $36 $36 $36 General Tax Support $1,004 $1,039 $839 $925 $582 $563 $694 $1,376 $1,354 $1,380 $1,407 $1,435 Total Revenue $1,808 $1,971 $1,766 $1,938 $1,643 $1,619 $1,811 $2,472 $2,472 $2,519 $2,568 $2,618 St. Maintenance/Painting/Cleaning $1,226 $1,264 $1.189 $1,275 $932 $913 $1,044 $1,152 $1,174 $1,194 $1,215 $1,236 Funded Street Projects $500 $500 $563 $101 $662 $665 $784 $1,647 $1,216 $1,238 $1,260 $1,282 Funded Sidewalk Projects $0 $0 $0 $0 $100 $100 $100 $100 $100 $100 $100 $100 Unfunded Street Projects $1,030 $1,030 $967 $1,429 $868 $865 $746 ($117) $314 $292 $270 $248 Unfunded Sidewalks/Curbs/Gutters $1,020 $1,020 $1,020 $1,020 $920 $920 $920 $920 $920 $920 $920 $920 Unfunded Bridge Projects $36 $36 $36 $36 $36 $36 $36 $36 $36 $36 $36 $36 Total Expenditures $3,812 $3,850 $3,775 $3,861 $3,518 $3,499 $3,630 $3,738 $3,760 $3,780 $3,801 $3,822. Excess (Deficit) ($2,004) ($1,879) ($2,009) ($1,923) ($1,875) ($1,880) ($1,819) ($1,266) ($1,289) ($1,261) ($1,233) ($1,204) Cumulative Excess (Deficit) ($1,875) ($3,754) ($5,763) ($7,686) ($9,561) ($11,441) ($13,260) ($14,527) ($15,815) ($17,077) ($18,309) ($19,513), Beginning Balance - Gas Tax $$ $129 Streets/Curbs/Gutters/Sidewalks/Bridges - Five Year Projection 55.000 �' 1 50 n ' i " F1, fl, �_ gin.. ,...,..,.. ,' -- - yLr) .......,.._... m m o ...T- m 0 0 T 9 (55,000) c r N N m 0 0 F. (510,000) X (515,000) FISCAL YEAR ($20,000) ®Total Revenue OTotal Expenditures ommilIP""Excess (Deficit) w Cumulative Excess (Deficit 65 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST Street Maintenance 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Expenses Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase 0.00% 0.00% 9.25% -34.06% -5.03% 17.96% -0.70% 1.91% 1.71% 1.73% 1.75% Street maintenance 985 1,002 944 1,032 680 646 762 757 771 785 798 812 Street cleaning 120 140 114 93 129 131 140 151 154 156 159 162 Street painting 121 122 131 150 122 136 143 178 182 185 188 191 Street Projects -Funded 500 500 563 101 662 665 784 1,713 1,284 1,307 1,330 1,354 Street Maintenance Expenses - History and Projection 3,000 - 2,500 2,000 Street painting Street Projects -Funded c 1,500 1,000 4 �„ ^ry .�N■�kN :: + �LwLur+irir+ur�n.®o.... , . , , ,�� J� rr rraairrgrrr rrrrraf -:_^_.. , ....w..�� Street cleaning.: _ 500 Street maintenance 0 m ami rn ori m ori m o q o rn m m m m T rn it Co Q1 0) Co m o 0 N CqO Fiscal Year E3 Street maintenance OStreet cleaning ©Street painting 0Street Projects -Funded 6 Totals $1,726 $1,764 $1,752 $1,376 $1,594 $1,578 $1,828 $2,799 $2,390 $2,432 $2,475 ^ $2,519 CITY OF SAN ItAFAEL - FIVE YEAR FINANCI L FORECAST Street Maintenance 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Revenues Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase 15.92% -0.54% 9.28% 4.74% -0.47% 5.78% -1.88% 2.00% 2.00% 2.00% 2.00% Gas Taxes 770 910 904 979 988 1,008 1,079 1,060 1,081 1,103 1,125 1,147 Interest Earnings 34 22 23 34 35 38 38 36 36 36 36 36 Other 0 0 0 0 38 10 0 0 0 0 0 0 1,500 No 1 000 c N 7 O 500 Street Maintenance Revenues - History and Projections Other Interest Earnings Gas Taxes Alk 0 N M 'd' In (C) r` OD O O N 01 O O O O CA T O O O O O N MC LO (O OD m O QOj m C)1 m Cm m O O O m O O CA Cn fA O O CA O O O M N N Fiscal Year CI Gas Taxes C] Interest Earnings 17 Other TOTAL 804 932 927 1,013 1,061 1,056 1,117 1,096 1,117 1,139 1,161 1,183 6- 68 A M. CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST STORM DRAIN SYSTEMS AND MAINTENANCE SERVICES Description: Beginning in 1993-94, the City implemented the "San Rafael Clean Stormwater Activity Fee" program. Rates were established based upon runoff units. which were calculated according to runoff factors tied to land use types. The fee is levied to pay for maintenance and repair costs, as well as capital improvement expenses, for the City's stormwater drainage facilities. Background: For a number of years, the City had been unable to designate necessary moneys to pay for storm drain facility maintenance. Adoption of the Runoff Fee allows for dedicated resources to partially meet local requirements. In addition, $115.000 is pooled with other local agency moneys to meet the requirements under the National Pollution Discharge Elimination System (NPDES) act mandated, but not funded, by Congress. NPDES requires municipalities to plan, monitor and mitigate toxic and other substances from entering into regional drainage channels. Outlook: This graph and table are broken into two major areas. The operating budget represents the Storm crews who work in Public Works. They have been supported by General Fund taxes for years, are expected to continue to be paid from this source in future years. The second component is capital projects. Once again, fees in place are not sufficient to pay for proper maintenance and care of our existing systems. Also, no funds are available to correct major system deficiencies or implement needed systems. Continuation of this problem will only compound in the future if actions are not taken to bring revenues in line with infrastructure requirements. Major Trends: The unfunded capital has two elements. The first is the management of $112,400,000 worth of existing drainage systems. When amortized over a fifty year life cycle, $2.248,000 is needed each year to sustain our current assets. Also, $23,475,000 of new systems are necessary. Over a similar period of time, $470,000 would be needed to pay for improvements and enhancements to out current drainage capacity. The unfunded maintenance section represents the $2.2 million noted, less portions that are currently funded out of the Stormwater runoff fee. Few options exist which could change the projected situation. One might be to consider approval of an increased fee to pay for the true cost of storm systems. Lack of new funds will results in further deferred maintenance on drainage systems, which ultimately will cost more to replace than if they had been adequately maintained over time. Liability expenses will continue to remain high until replacement and new systems can mitigate problem areas throughout San Rafael 70 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST Storm Drain 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Summary Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected Storm Water Fees $0 $0 $0 $0 $0 $437 $601 $664 $740 $815 $893 $910 General Tax Dollars $357 $367 $402 $339 $589 $611 $507 $556 $573 $588 $604 $620 Total Revenue $357 $367 $402 $339 $589 $1,048 $1,108 $1,220 $1,312 $1,403 $1,496 $1,530 Operating Budget $357 $367 $402 $339 $589 $726 $622 $751 $774 $795 $816 $839 Capital Projects $0 $0 $0 $0 $0 $180 $349 $631 $585 $645 $705 $705 Unfunded Mtce Projects $2,294 $2,294 $2,294 $2,294 $2,294 $2,114 $1,945 $1,617 $1,663 $1,603 $1:543 $1,589 New Systems $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 $470 New Systems Mtce $14 $14 $14 $14 $14 $14 $14 $14 $14 $14 $14 $14 Total Expenditures $3,134 $3,144 $3,179 $3,116 $3,366 $3,503 $3,399 $3,483 $3,506 $3,527 $3,548 $3,616 Excess (Deficit) ($2,777) ($2,777) ($2,777) ($2,777) ($2,777) ($2,455) ($2,291) ($2,263) ($2,193) ($2,124) ($2,052) ($2,086) Cumulative Excess (Deficit) ($2,777) ($5,555) ($8,332) ($11,110) ($13,887) ($16,343) ($18,634) ($20,897) ($23,090) ($25,214) ($27,266) ($29,317) Storm Drain Program - Five Year Projection $5.000 — M Ip t` b M O N C V C It] f0 f+ p O O m O 0) G) ($5,000) O Q) 0) O) O) M O O c� w o W a� m rn m � m o 0 N n N 7 O F=- ($15,000) ($20,000) ($25,000) ($30,000) Fiscal Year C]Total Revenue Notal Expenditures ""'Excess (Deficit) Cumulative Excess (Deficit) 71 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST Storm Drain 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Expenses Actual Actual Actual Actual Actual Actual Actual Budget cted Projected Pr1.71 Projected Projected percentage increase 0.00% 0.00% -15.67% 73.75% 23.26% -14.33% 20.74% 3.06% % 2.716/. 2.72% Operating Budget 357 367 402 339 589 726 622 751 774 795 816 839 Funded Projects 0 0 0 0 0 180 349 631 585 645 705 705 Unfunded Projects 2,294 2,294 2,294 2,294 2,294 2,114 1,945 1,617 1,663 1,603 1,543 1,589 New Systems 470 470 470 470 470 470 470 470 470 470 470 470 New Systems Mtce 14 14 14 14 14 14 14 14 14 14 14 14 Storm Drain Expenses - History and Projection 4,000 New Systems Mice New Sys 3.000 0 2,000�� F-Unfunded Projects 1,000 -_ -_ _ Funded Projects — - — Operating Budget 0 m C)m rn 9 rn m Co of o 0 in am m aMi W 0) W 0)m a^i a) a00i rn o N Fiscal Year ❑ Operating Budget ❑ Funded Projects ❑ Unfunded Projects 17 New Systems B New Systems Mtce Totals $3,134 $3,144 $3,179 $3,116 $3.366 $3503 $3,399 $3,483 $3,506 $3,527 $3,548 $3,616 7i CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST Storm Drain Fund 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Revenues Actual Actual Actual Actual Actual Actual Actual Budget Projected Projected Projected Projected percentage increase 0.00% 0.00% 0.00% 0.00% 0.00% 37.53% 10.48% 11.09% 10.33% 9.69% 2.00% Storm Water Fee 0 0 0 0 0 434 585 655 728 803 881 898 Interest Income 0 0 0 0 0 3 16 9 12 12 12 12 Storm Water Fee History and Projections 1,000 - Interest Income 0 Storm Water Fee C14 Cl) CP 00 M � 9 0 In co � C4 W m T 0) Q0j r 6�1 TOTAL 0 0 Base Residential Fee / Storm Water Fee LO 9 00 M � O O D 7 m In co � I�L W m m 0 o) O 0 r r N rY Fiscal Year UStorm Water FeeM Interest Income 0 0 0 437 601 664 740 815 893 910 $15.00 $20.00 $22.00 $24.00 $26.00 $28.00 $28.00 73 '74 75 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST CAPITAL IMPROVEMENT PROGRAMS Description: The Capital Improvement program was established by the setting aside two years ago of 81,500,000 to pay for the Police Department's portion of a County wide radio system replacement. Presented in this program are all capital, equipment and other assets which require annual levels of funding but are not identified elsewhere in the Forecast. Background: A second table is presented with this section to identify the level of funding required, the currently funded portion, and the remaining annual requirements. Much of this data was developed from the initial business cost study and priorities that Public Works had developed in cooperation with the Budget Oversight Committee, staff and other interest groups. A summary is as follows: Cateaory Facilities - cyclical plan Parks - cyclical plan Parkways and Medians Information Systems Communication Systems Office Furniture Traffic Signals and Signs City Hall Expansion Street Tree Replacement Amortization Period From 5 to 25 years From 5 to 20 years 25 Years 5 Years 5 Years From 5 to 10 Years From 10 to 50 Years 25 Years 75 Years Annual Fundina Needed 8408.436 $317.607 $171,000 8240,000 8320,000 858,000 8375,000 8250,000 8133,000 Outlook: This should be self explanatory. None of the unfunded needs have dedicated resources in place today. Each can be addressed in separately, or possibly combined with other solutions. Again, this is not just a problem today, but an ongoing problem going back as much as twenty years. Continued gaps in revenue related to needed funds can only compound this problem into the next century. Major Trends: Options exist to handle a number of these situations. Clearly. the City must move to a Facilities Maintenance Fund similar to its existing Vehicle Replacement program. Major ongoing building needs (painting, roofs. HVAC. lighting) should be calculated and charged back to user Departments in the form of rent. These funds should be set aside to pay for improvement in an organized, prioritized manner. 8147,000 is projected for 1998-99 and beyond. This is inadequate. The City must move away from the "wish list" approval to building management. Parks need work. Areas such as the Freitas park could cost up to 8250,000 alone just to bring it back to its prior level of service. It is unclear how doing so could impact maintenance costs, or how they would be funded. Before new parks are considered, proper maintenance of irrigation. sheds, tables and playground equipment should be given serious consideration. 76 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST Capital Improvement 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Expenses Unfunded Unfunded Unfunded Unfunded Unfunded Unfunded Unfunded Unfunded Projected Projected Projected Projected Facilities 0 0 246 369 376 286 127 253 261 273 286 299 Parks 276 282 287 293 299 305 312 318 318 328 337 347 Parkways and Medians 148 151 155 158 161 164 168 171 171 176 181 187 Information Systems 208 213 217 221 226 230 235 26 240 240 240 240 Communication Systems 278 283 289 295 301 307 314 320 320 320 320 320 Office Furn,ture 50 51 52 53 55 56 57 58 58 60 62 63 Traffic Signals and Signs 326 332 339 346 353 360 368 375 375 386 398 410 City Hall Expansion 217 221 226 231 235 240 245 250 250 250 250 250 Street Tree Replacement 115 118 120 123 125 128 130 133 133 137 141 145 Unfunded Capital Improvement Needs - Projection 2,500 Office Furniture 2,000StreTree t' et TReplacemen �— �` City Hall Expansion _r.__. N Z 1,500 fi .., Traffic Signals & Sig C ��. - - �,. w — - �As vvevvv3vvvvvvavv-c—n�Ovvvvvv ►\�— — vvvvvvvvvo Communication Systemavvvvvvv oacvvvvv avvvvvvvvvvvvv O a�vvvvvwavury vov„u v000vvavvvvavvvvvvvv� t cvevavvvvv� nvvvv�rtvvvvvvvvvvvvvvvvvvvvvvv H r5�G3RGBl�\l;:lcvavvvvvv Ira OCmahOn System; 1,000.navnvuvyOvv��vvvvvv I°onnoo°a°u°n°oo°nn°nvvvv al-wavA and 500 I Y �' i�lp 'll: I III I I Parks III III flAl�lillllllllllrl�ll�ll�1-ISI I �1 ��Illll, 0 OQDOQ��00I� • A Facilities o m m m m m m rn rn m o 0 0 Fiscal Year o N co v an Co n Co m o m a) m Orn m m m rn m o m 0 rn m rn a� m rn m m rn m N N O Facilities 13 Parks E3 Parkways and Medians 13 Information Systems MCommunication Systems E3 Traffic Signals and Signs OCity Hall Expansion E3 Street Tree Replacement E3 Office Fumiture NOTE Figures provided exclude storm drains, streets, curbs, gutters, sidewalks, bridges, vehicles and Parking District assets which are identified in other program areas Totals $1,619 $1,652 $1,932 $2,089 $2,132 $2,077 $1,955 $1,904 $2,126 $2,170 $2,215 $2,262 77 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST Capital Improvement 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1995-97 1997-98 1998-99 1999-00 2000-01 2001-02 Expenses Unfunded Unfunded Unfunded Unfunded Unfunded Unfunded Unfunded Unfunded Projected Projected Projected Projected Breakdown: GPI °k-> : 3.40% 3.00% 3.00% 3.00% Facilities: Required by PW 347 354 361 369 376 384 392 400 408 420 433 446 Paid out of GF 866 538 115 0 0 98 264 147 147 147 147 147 New cyclical $$ - Facilities 0 0 246 369 376 286 127 253 261 273 286 299 Parks: Required by PW 276 282 287 293 299 305 312 318 318 328 337 347 Paid out of GF 0 0 0 0 0 0 0 0 0 0 0 0 New cyclical $$ - Parks 276 282 287 293 299 305 312 318 318 328 337 347 Parkways and Medians 148 151 155 158 161 164 168 171 171 176 181 187 Information Systems.- ystems:Required Requiredby Strategic Plan 208 213 217 221 226 230 235 240 240 240 240 240 Paid out of GF 0 0 0 0 0 0 0 214 0 0 0 0 New cyclical $$ - IS 208 213 217 221 226 230 235 26 240 240 240 240 Communications Systems: 278 283 289 295 301 307 314 320 320 320 320 320 Office Furniture 50 51 52 53 55 56 57 58 58 60 62 63 Traffic Signals & Signs 326 332 339 346 353 360 368 375 375 386 398 410 City Hall Expansion 217 221 226 231 235 240 245 250 250 250 250 250 Street Tree Replacement 115 118 120 123 125 128 130 133 133 137 141 145 NOTES Information Technology based upon conversion requirement of $1.2 million over five years Communication Tech - PD radios funded, PW and FD radios are $1.6 million over five years W. 79 CITY OF SAN RAFAEL - FIVE YEAR FINANCIAL FORECAST SAN RAFAEL REDEVELOPMENT AGENCY Description: This table represents the Housing component of the San Rafael Redevelopment Agency. By State law adopted in 1986. 20% of the tax increment generated from the Agency must be put into a separate fund to support affordable housing efforts. Background: The City has maintained a housing fund for some period of time. Since so much energy has been put into other project priorities, housing has been able to set aside a fair amount of money for future needs. Outlook: This fund is sound and should have available resources to meet future projects. Priority will be given to those areas with the greatest needs. The modest growth in this source probably will not be sufficient to complete all identified needs in the Agency's boundaries. Major Trends: Partnerships with the community, and the development of a non-profit housing entity will enable the City to leverage its resources with others to maximize housing projects. The cost of living in Marin and San Rafael will be a catalyst to engage business partners in helping to develop workforce units for local workers. Unless legislation radically alters redevelopment law. this source of tax increment should continue to assist San Rafael in meeting housing policy objectives. 'APA1441C :X SAN RAFAEL REDEVELOPMENT AGENCY - FIVE YEAR FINANCIAL FORECAST San Rafael Redevelopment Agency 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Housing Activities Actual Actual Budget Projected Projected Projected Projected 20% Tax Increment - Agency $910 $330 $455 $466 $478 $490 $502 Interest and Rents $55 $39 $46 $125 $125 $125 $125 Other $13 $37 $0 $0 $0 $0 $0 Total Revenue $978 $406 $501 $591 $603 $615 $627 Salaries and Wages $0 $0 $54 $57 $59 $60 $62 Fringe Benefits $0 $0 $11 $12 $12 $12 $12 Operating Expenses $0 $0 $233 $47 $48 $50 $50 Capital Outlay $0 $0 $0 $0 $0 $0 $0 Operating Expenses $0 $0 $298 $116 $119 $122 $124 Capital Projects and Cost of Land $99 $164 $0 $0 $0 $0 $0 Total Expenditures $99 $164 $298 $116 $119 $122 $124 Excess (Deficit) $879 $242 $203 $475 $484 $493 $503 Cumulative Excess (Deficit) $1,983 $2,225 $2,428 $1,147 $1,631 $2,124 $2,627 Beginning Balances $1,104 Reserves Held for Loans $406 Reserves for Housing Projects $1,350 Redevelopment Agency Housing - Projections $3,000 — No $2,000 r� c R N 7 O F $1,000 r� �w �k Not rn rn rn rn o 0 0 M M rn oCOi rn o 0 Fiscal Year OOperating Expenses ®Capital Projects and Cost of Land "_" —Total Revenue L— 'Excess (Deficit) _ ---Cumulative Excess (Deficit) — — 91 H. N m INFLATION FACTORS REVENUES FIVE YEAR FINANCIAL FORECAST REVENUES Property Taxes Sales Tax Business Lic./TOT/Transfer Franchise Other Taxes/Paramedic Licenses and Permits Traffic/Parking Fines & forfs Interest Earnings/rentals Revenue from other agencies Charges for Services Other Revenues Parking District Rents and Coins Recreation/Child Care Revenues Gas Tax Resources Storm Drain Fees (based upon rate increases adopted + CPI) current rate - SFR new rate - SFR % change 5 VE AR PROJECTION 1998-99 1999-2000 2000-01 2001-02 ESTIMATE ESTIMATE ESTIMATE ESTIMATE 3.00% 3.00% 3.00% 3.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% -2.50% 0.00% 0.00% 0.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 2.00% 2.00% 2.00% 2.00% 2.50% 2.25% 2.25% 2.00% 2.00% 2.00% 2.00% 2.00% 3.50% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 11.09% 10.33% 9.69% 2.00% 22.00 24.00 26.00 28.00 24.00 26.00 28.00 28.00 9.09% 8.33% 7.69% 0.00% 911 BUILDING REPAIRS No. Facility Name Type Annual Cost ; 1 City Hall Building S56,088 2 Fire Station 1 Building S14,733 3 Fire Station 2 Building S6,367- 6,367- 4 4 Fire Station 3 Building ) S7,664 5 Fire Station 4 Building 57,237; 6 Fire Station 5 Building l S7,893; 7 -Fire Station 6 Building S8,745- 8,745-8 8 -Fire Station 7 Building S6,151 9 nPickleweed Community Center Building S27,031 10 Terra Linda Community Center Building 516,700' 11 -San Rafael Community Center I Building S31,586- 12 Corporation Yard = Building S13,999 13 flue House Building S7,099; 14 blue House Annex I Building S5,028; 15 Falkirk Building S21,088: 16 _Boyd House i Building S6,188' 17 Albert Field Grand Stand Building S11,077; 18 Albert Lane Park Building Building S7,403 19 bay Care - Pickleweed ' Building S8,212 ` = 20 bay Care - Glenwood Building S6,156 21 Day Care - San Pedro Building S2,576' 22 Day Care - Coleman Building S2,443: 23 Day Care - Dixie Building S5,099 24 Day Care - Mary Silvera I Building S5,096, 25 7L Pool Bathhouses Building S4,229 26 Library Building S30,862 ' Sub -total S326,7491 Design & Contract Preparation 10% S32,675 Inspection 5% S16,337 Contract Management 10% S32,675 TOTAL S408,4361 [:1'7 Comments PARK REPAIRS No. 1 Facility Name 1 Type 1 Annual Cost 1 1 Pickleweed Park Park $25,968 2 Albert Park Park $38,644 3 Gerstle Park Park $22,801 4 rreitas Park Park $15,170 5 Hillview Park Park $1,299 6 Hartzel Park Park $2,119 7 Terra Linda Recreation Center Park $23,153 8 Munson Park Park $1,931 9 Oleander Park Park $9,242 10 Arbor Park Park $1,874 11 Santa Margarita Park Park $13,161 12 Russom Park Park $8,216 13 Ba ride Park Park $1,722 14 Riviera Park Park $3,798 15 Schoen Park Park $3,945 16 Bernard Hoffman Field Park $5,585 17 Bret Harte Park Park $8,344 18 Sun Valley Park Park $12,165 19 Kerner Pond (wetlands) Park $3,391 20 Bayfront Park Park $5,640 21 Victor Jones Park Park $11,023 22 Peacock Gap Park Park $22,651 23 Yeakey Parkette Park $256 24 Laurelwood Court Parkette Park $132 25 City Hall Landscaping Park $9,380 26 Library Landscaping Park $2,477 27 Boyd Park Park $18,053 28 Fourth Street Mall Park $1,798 29 Falkirk Park $12,852 30 Spinnacker Green Belt Park $12,706 31 Spinnacker Wetlands Park $7,911 32 Glenwood Tennis Courts Park $957 Total: $254,086 Design & Contract Preparation 10% $25,409 Inspection 5% $12,704 Contract Management 10% $25,409 TOTAL $317,607' 92 Comments $5 0 E 0 .0 $4 0 $3 CL 0 0 V- $2 CL a a� ' $1 $o City Revenues Have Never Recovered from Prop 13 per $100 of personal income FY76 FY96 I Other Revenues Service Charges I Intergovernmental Taxes & Assessments Lea ue of California Cities Coleman Advisory Services mcoleman@ dcn.davis.ca.us 916-758-3952 87 NNW MINE NOW Ewn _� 13 Oct 97 a C 0 $0 -$100 -$200 -$300 -$400 -$500 -$600 -$700 -$800 -$900 _$1,000 State Cuts of City Revenues Cumulative annual 180 181 182 183 '84 185 186 '87 188 189 190 191 '92 '93 '94 195 '96 '97 198 ■ Permanent Reductions M One-time Reductions " . Restorations It ■■! Coleman Advisory Services mco League of California Cities loomw 1@ dcn.davis.ca.us 916-758-3952 ;IMMwL_ 3 Oct 97 1 7 W. $200 $180 $160 4 $140 A o $120 $100 3 $80 a $60 v $40 $20 $0 Intergovernmental Revenues to Cities since 1975 per capita adjusted for inflation i n Federal Federal I� State $ to Cities 1994-95 1974-75 1994-95 Leaq ue of California Cities visory Services mcoleman@ dcn.davis.ca.us 916-758-3952 :• Vehicle In - Lieu Taxes 50% NMWF iii iii MMM- 13 Oct 97 Counties Cities Special Dstf icts Loss from ERAY. Grab Annual Statewide $- $0.5 Coleman Advisory Services mcole $1.0 $1.5 Billions Leaq ue of Cali davis.ca.us $2.0 $2.5 rn is Cities 8-3952 $3.0 W ��IMi 3 Oct 97 Net Loss: E.R.A,F, and Prop 172 Annual Statewide ■■■■■'■■■■■■■■■■■■■■■■■�■ Proposition 172 Restoration Counties Net Loss $1.2B ■ (limited to "public safety" use) AdL $- $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Billions ls■■E It ■■S Lea ue of California Cities 11omw Coleman Advisory Services mcoleman@ dcn.davis.ca.us 916-758-3952 IN MMOL "om= 13 Oct 97 91 I Police & Fire 73% Fire Fire The S - Increasing Police & Fire Spending - Declining Taxes & State/Federal Transfers $600 City Tax & .0 $500 State Fed $ C 'o $400 'o $300 49 1 Fi re n. f $200 + CL Fire V, $100 Police 0 I Police $0 . - $0 1975-76 1985-86 1996; Leaque of California Cities Coleman Advisory Services mcoleman@ dcn.davis.ca.us 916-758-3952 94 J 13 Oct 97 Responses to "The Squeeze" • Cut discretionary general funded programs • General Government • Parks, Libraries, Museums, Planning ♦ Cut subsidies to fee based programs and raise user fees Coleman Advisory Services mcolema Leaa ue of California Cities i(@dcn.davis.ca.us 916-758-3952 moor Cos )13 Oct 97 Responses to "The Squeeze" ♦ Pare down reserves ♦ More debt financing • Raise taxes • Pursue sales fax generators Coleman Advisory Services mcole League of California Cities cn.davis.ca.us 916-75.839 11 MOF -t=j In ME INEMIr INEME ct 97 $70 r $60 0 $50 $40 :! M $30 a m $20 Parks and Rec Taking the $ Hit ■ ■ N ■ ■ ■ Parks & Rec -*-Museums, etc. • Libraries 0---* * * 0 0 FY91 FY92 FY93 FY94 FY95 FY96 esLeaaue of California tCities Coleman Advisory Services mcoleman@ dcn.davis.ca.us 916-758-3952 13 Oct 97