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Home My WebLink AboutFin Final Citywide Proposed Budget for Fiscal Year 2022-2023 and Legal Spending Limit PPTPROPOSED BUDGET FISCAL YEAR 2022-2023 CITY COUNCIL MEETING JUNE 21, 2022 PRESENTATION AGENDA FY 21-22 Update FY 22-23 Proposed Citywide Budget Recommend adoption of resolutions FY 22-23 Appropriations Limit Personnel and Childcare Fees Council Goals and Objectives FY 2021-2022 BUDGET STATUS •Updates from March 7, 2022 mid-year presentation •GF - Projected increase in total revenues – 0.3% •GF – Projected increase in total expense •Result of biannual actuarial studies to assess future liabilities •Transfers to City Worker’s Compensation and Liability programs in the amount of $2.1 million and $0.6 million, respectively •May request an increase in appropriations •Projected net result of $1.3 million for FY 2021-22 $1 million will be used to replenish the Emergency Reserve to appropriate levels FOLLOW UP FOR FY 2021-2022 •September 2022 – update on results (unaudited) •November/December 2022 – Year-end financial/audit reports MEASURING OUR GOALS & OBJECTIVES FY 2021-2023 CITY OF SAN RAFAEL POLICY FOCUS AREAS ECONOMIC RECOVERY RACIAL EQUITY HOUSING & HOMELESSNESS SUSTAINABILITY, CLIMATE CHANGE & DISASTERS Building back our economy stronger and more resilient than before Working to achieve racial equity and advance opportunities for all Reducing greenhouse gas emissions while mitigating and adapting to climate change Creating new housing, keeping people in their homes, and use a “Housing First” model In June 2021, the City identified the following needs: 1. To be able to measure progress towards our goals and objectives 2. To be able to measure impact of short- term project-based work OUR COMMITMENT TO MEASURING PROGRESS In June 2021, the City identified the following needs: 1. Measure progress towards our goals and objectives 2. Measure impact of short-term project- based work OUR COMMITMENT TO MEASURING PROGRESS To meet these needs the City has: 1. Socialized performance measurement among staff 2. Identified 15 key indicators to measure progress towards policy goals •What do we know about this topic? How will we know when we have achieved our goal? Bring in the data •How has the status changed over time? What is impacting this goal? How are we measuring progress? Ask, analyze, and learn •What is the plan of action to address this problem? How can we measure goal achievement in the short and long term? Set targets and take action •What further action needs to be taken to advance progress on this goal? Who is responsible for changing the course of action? Course correct and improve •What are the most important things we need to focus on this year? Identify priorities •What are we trying to achieve? What problem are we trying to solve? Clarify the goal Roadmap •What are the most important things we need to focus on this year? Identify priorities •What are we trying to achieve? What problem are we trying to solve? Clarify the goal •How has the status changed over time? What is impacting this goal? How are we measuring progress? Ask, analyze, and learn •What is the plan of action to address this problem? How can we measure goal achievement in the short and long term? Set targets and take action •What further action needs to be taken to advance progress on this goal? Who is responsible for changing the course of action? Course correct and improve •What do we know about this topic? How will we know when we have achieved our goal? Bring in the data Roadmap •What are the most important things we need to focus on this year? Identify priorities •What are we trying to achieve? What problem are we trying to solve? Clarify the goal •What do we know about this topic? How will we know when we have achieved our goal? Bring in the data •What is the plan of action to address this problem? How can we measure goal achievement in the short and long term? Set targets and take action •What further action needs to be taken to advance progress on this goal? Who is responsible for changing the course of action? Course correct and improve •How has the status changed over time? What is impacting this goal? How are we measuring progress? Ask, analyze, and learn Roadmap •What are the most important things we need to focus on this year? Identify priorities •What are we trying to achieve? What problem are we trying to solve? Clarify the goal •What do we know about this topic? How will we know when we have achieved our goal? Bring in the data •How has the status changed over time? What is impacting this goal? How are we measuring progress? Ask, analyze, and learn •What further action needs to be taken to advance progress on this goal? Who is responsible for changing the course of action? Course correct and improve •What is the plan of action to address this problem? How can we measure goal achievement in the short and long term? Set targets and take action Roadmap •What are the most important things we need to focus on this year? Identify priorities •What are we trying to achieve? What problem are we trying to solve? Clarify the goal •What do we know about this topic? How will we know when we have achieved our goal? Bring in the data •How has the status changed over time? What is impacting this goal? How are we measuring progress? Ask, analyze, and learn •What is the plan of action to address this problem? How can we measure goal achievement in the short and long term? Set targets and take action •What further action needs to be taken to advance progress on this goal? Who is responsible for changing the course of action? Course correct and improve Roadmap Economic Recovery Definition:Building back our economy stronger and more resilient than before Metric Description Foot Traffic Downtown Average number of times pedestrians use crosswalks on 4th street. This metric can be calculated daily, weekly, and/or monthly and shown as a time series. Number of Approved Business License Applications Number of business license applications approved by the City. This metric can be shown monthly, quarterly, or yearly, and shown as a time series. Revenue of Local Businesses Total annual revenue reported by businesses based in San Rafael when applying or renewing their business license. This metric could be broken down by business type. Occupancy Rate of Storefronts Percent of storefronts occupied over time in San Rafael. This metric can be broken down by neighborhood and calculated weekly, monthly, or quarterly. Racial Equity Definition:Working to achieve racial equity and advance opportunities for all Metric Description Community Resilience Estimates for Equity in majority POC census tracts vs. majority white census tracts A Census indicator created to measure the capacity of individuals and households within a community to absorb the external stresses of a disaster. The estimate is modeled using 10 resilience-related risk factors: Income to Poverty Ratio, single or zero caregiver household, crowding, communication barriers, employment, disability status, health insurance coverage, being aged 65 or older, vehicle access, broadband internet access. Diversity of City Workforce Self-identified race/ethnicity data of workforce submitted to HR upon hire. Average business revenue in majority white vs. majority POC Census Tracts Total annual business revenue divided by number of businesses in majority white vs. majority POC census tracts. Sustainability, Climate Change & Disasters Definition:Reduce greenhouse gas emissions while mitigating and adapting to climate change Metric Description Greenhouse gas emissions Percentage change in Greenhouse Gas Emissions in San Rafael relative to emissions in 2005. Percent of residents and businesses composting organics Percent of residents and businesses composting organics as reported for SB 1383. Percent of properties in compliance with Citywide standards to reduce wildfire risk Percent of properties in compliance with SRMC 4.12 Citywide Vegetation Standards based on individual property evaluations and reporting. Percent of residents signed up for emergency alerts Percent of registered San Rafael users of Nixle and AlertMarin Housing & Homelessness Definition:Creating new housing, keeping people in their homes, and using a "housing first" model Metric Description Number of tents/structures in encampments Number of tents/structures in encampments Number of people transitioned to Permanent Supportive Housing Number of Marin County residents transitioned to Permanent Supportive Housing Housing units entitled and housing units produced by unit income level Number of housing units within housing developments or projects that have received all the required land use approvals or entitlements necessary for the issuance of a building permit by unit income level, and the number of units that receive a final inspection/certificate of occupancy by unit income level. Number of deed-restricted affordable units Number of units that have a use-restriction limiting the rent or purchase price and requiring occupancy by low-income renters/buyers for a period of time. JM0 VA1 AC2 AC3 Slide 17 JM0 Homelessness metrics noted here from meeting with Marc Sabin. Schedule meeting with Ali to define housing metrics cc [@Vedika Ahuja] Jessica MacLeod, 2022-04-13T22:21:11.287 VA1 Is this the same as "Housing units produced by unit income level"? Vedika Ahuja, 2022-06-06T20:58:15.567 AC1 0 [@Vedika Ahuja] Yes, Housing units produced by unit income level will include affordable housing units produced (as well as market-rate units) Alexis Captanian, 2022-06-08T16:53:54.847 AC2 [@Vedika Ahuja] number of housing units produced = number of housing units that receive a final inspection / certificate of occupancy Alexis Captanian, 2022-06-08T17:01:49.166 AC3 [@Vedika Ahuja] I might say "that have received all the required land use approvals or entitlements necessary for the issuance of a building permit." Alexis Captanian, 2022-06-08T17:12:39.834 Next Steps Target setting Monitoring Progress Drive performance Improvement Data Analysis and Visualization Assign targets, metrics, and a timeframe for measuring progress toward the achievement of a publicly stated strategic goal(s). Monitor progress, review trends and themes, ask questions of the dataBuild and automate performance dashboards for each policy priority that can be used and analyzed at regular performance review meetings Set incremental goals and leverage data and performance metrics to make programmatic and policy decisions. 6 PROPOSED BUDGET FY 2022-2023 BUDGET CALENDAR •January – Budget kickoff with departments and introduction of expenditure assumptions •February – Receipt of MCERA contribution rates •March – Budgets are received from departments and analyzed by the Finance Department •April/May – Finalize special revenue funds, operations, internal service funds and CIP •June – Budget is presented CITYWIDE BUDGET SUMMARY Fund Sources (Revenues and Transfers In) Uses (Expenditures and Transfers Out) General Fund $97,640,802 $95,250,644 General Plan $897,449 $1,027,836 Special Revenue/Grant/Trust $55,339,068 $58,597,657 Enterprise (Parking)$3,636,760 $4,992,750 Internal Service/ Capital Replacement $20,541,529 $23,719,410 Public Safety Facilities (Supported from Fund Balance) $3,996,830 Adjustment for Internal Service Fund Charges/ Transfers $(21,475,618) $(21,475,618) Citywide Total $156,579,990 $166,109,509 GENERAL FUND - REVENUES •General Fund projected surplus of $2.2 million •Projected property tax increase of 6% •Sales and use tax projected to increase by 1.2% •Most other revenues such as permits, licensing, development fees and plan review projected to increase by 3-4% Property Tax, 25% Sales and Use Tax, 47% Franchise Tax, 4% Business Tax, 3% Transient Occupancy Tax, 3% Other Agencies, 12% Other Revenues, 7% General Fund Revenues GENERAL FUND - EXPENSES •Year over year increase in expenditures of 4.6% •Pension expenses projected to decrease by 3.9% due to strong returns •Transfer of $1.1 million to Employee Retirement Internal Service Fund to offset future pension costs •Inflationary pressures result in increased cost of doing business City Council, Clerk, Attorney, Economic Development, 7% Administration, Technology, Internal Services, 6% Community Development, 6%Public Works, 15% Fire, 28% Police, 23% Library and Recreation, 7% Non-Departmental (e.g., debt service), 9% General Fund Expenditures by Department •Total proposed staffing of 422.76 •3 new proposed FTE in Community Development and Recreation •Most fixed-term growth funded by from Measure C •Limited adjustment in executive compensation to reduce compaction issues 320 340 360 380 400 420 440 460 Regular Fixed Term PERSONNEL 1 PROJECTED FY 2021-2022 $9.3 million PROPOSED FY 2022-2023 $9.5 million 10% 10% GENERAL FUND EMERGENCY RESERVES OTHER FUNDS •Emergency Medical Services (increased approved April 4) •Capital Project Funds (Presented May 16) •Measure A – Open Space (renewed June 7 by voters) •Measure D – Library Parcel Tax (6 th year) •Measure C – Marin Wildfire Prevention (3 rd year) •Parking Enterprise Fund •Community Services – Recreation •Community Services – Childcare/Preschool AMERICAN RESCUE PLAN ACT •City received an amount of $16,088,886 •City Council has directed use of funds towards the City’s policy focus areas and infrastructure projects •Funds must be obligated by December 31, 2024 and expended by December 31, 2026 •Approximately $4 million has been obligated/expended •Increasing costs due to inflation •Challenging hiring environment •Recommended 5% increase to all fees except registration fee •Keeps San Rafael programs affordable and comparable to peers and meets cost recovery goals CHILDCARE FEES San Rafael – Proposed Fees Corte Madera YMCA After School Full Day $59 $56 $68 Recreation Day $46 $40 NA After School $26 $27 $29 Minimum Day/K Full $38 $36 $45 Minimum Day Conf/K- Full 8/23-9/07 $48 NA NA K-Part/TK-Part $17 $14 NA K-Part 8/23-9/07 $22 NA NA San Rafael – Proposed Fees Trinity San Anselmo Preschool Preschool Tuition $1,548 $2,025 $2,100 Registration Fee $75 $75 $75 •New calculated limit: $170,762,486 •Appropriations subject to limit: $91,883,786 •Under the legal limit: $78,878,700 GANN APPROPRIATIONS LIMIT WHAT'S NEXT •Remain focused and committed to advance the City’s Goals and Objectives while measuring and reporting on progress •Monitor economic trends and signs of recession •Continue to expend ARPA funds as projects are brought forth to Council •Assess the City’s financial ability to provide/maintain competitive compensation and continue to attract and retain highly-talented employees who provide exceptional public services RECOMMENDED ACTIONS Accept report and resolutions adopting the FY 2022-23 budget