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HomeMy WebLinkAboutFin Final Citywide Proposed Budget for Fiscal Year 2020-2021 and Legal Spending Limit PPTFINAL PROPOSED OPERATING/CIP BUDGET FISCAL YEAR 2020-2021 CITY COUNCIL MEETING JUNE 15, 2020 PRESENTATION AGENDA CITY OF SAN RAFAEL FY 2020-2021 BUDGET FY 19-20 Update FY 20-21 Proposed City-wide Operating Budget Recommen d to Adopt FY 20-21 Appropriation s Limit FY 2019-2020 BUDGET STATUS CITY OF SAN RAFAEL FY 2020-2021 BUDGET Significant deviations from February 3, 2020 mid -year presentation GF -Projected decrease in total revenues –6.3% Sales tax and use tax decrease of $3.7 million; 11% Transient occupancy tax decrease of more than $800k; 25% GF –Projected decrease in total expense –3.5% Primarily from salary, benefit and retirement contribution savings FY 2019-2020 BUDGET STATUS CITY OF SAN RAFAEL FY 2020-2021 BUDGET Projected net losses of $2.85 million for FY 2019-20 $2.1 million will be offset by use of one-time funds and assigned balances from prior years Staff recommends the use of emergency reserves for the remaining $721k Other funds – We are seeing impacts of COVID-19 Any required adjustments for other funds will be presented as part of the year-end update FOLLOW UP FOR FY 2019-2020 CITY OF SAN RAFAEL FY 2020-2021 BUDGET August/September 2020 –update on results (unaudited) November/December 2020 –Year-end financial/audit reports PROPOSED BUDGET FY 2020- 2021 CITY OF SAN RAFAEL FY 2020-2021 BUDGET CITYWIDE BUDGET SUMMARY CITY OF SAN RAFAEL FY 2020-2021 BUDGET Fund Sources (Revenues and Transfers) Uses (Expenditures and Transfers) General Fund 79,398,300$ 81,581,228$ General Plan 776,956 1,464,130 Special Revenue/Grant/Trust 27,484,518 32,877,061 Enterprise (Parking)5,076,525 5,072,452 Internal Service/Capital Replacement 16,657,617 17,238,594 Misc Capital Project Funds 642,394 9,517,225 Adj for ISF Charges/Transfers (19,806,777) (19,806,777) City-Wide Totals 110,229,533$ 127,943,913$ SUMMARY OF MAIN TAKE AWAYS CITY OF SAN RAFAEL FY 2020-2021 BUDGET General Fund projected losses of almost $9 million Reduced expenses by $1.4 million frozen positions, $586k Voluntary Retirement Separation Program (VRSP), $700k furloughs and additional department cuts of $4 million Staff recommends using emergency reserves of $2.2 million to balance the budget EVERY department reduced expenses to collectively meet the $4 million reduction goal Further position eliminations such as layoffs will be brought forward at subsequent meetings SUMMARY OF MAIN TAKE AWAYS CITY OF SAN RAFAEL FY 2020-2021 BUDGET Frozen positions and VRSP reduce City’s workforce from FTE of 405.73 to 382.73 Due to furloughs and decrease in workforce, City services will be impacted Reduced over the counter hours Greater wait times for customer service Reduced recreation programs and/or community center hours Reduced capital improvement projects Staff will return more often to highlight changes and update the budget GENERAL FUND -REVENUES CITY OF SAN RAFAEL FY 2020-2021 BUDGET Property tax increased by over 4% or $861k Shared services agreements and VLF fees increased in the range of 2-7%, or $351k Sales and use tax decreased by over 15%, or $5.2 million Most other fees such as permits, licensing, development fees and plan review decreased in the range of 1-10% GENERAL FUND -EXPENSES CITY OF SAN RAFAEL FY 2020-2021 BUDGET Projected expense reductions total $6.7 million Department cuts of $4 million included and assessment is in process and will dictate further position eliminations Pension expenses are approximately 15% of total City - wide budget or 20% of General Fund Increased cost of doing business Several City goals remain unfunded GENERAL FUND EMERGENCY RESERVES CITY OF SAN RAFAEL FY 2020-2021 BUDGET 1 PROJECTED FY 2019-2020$7 million PROPOSED FY 2020-2021$4.9 million 9% 6.3% WHAT'S NEXT CITY OF SAN RAFAEL FY 2020-2021 BUDGET Staff will return to present a position elimination plan Focus on re-opening the local economy and enhancing efforts on business attraction and retention to support businesses and increase revenues Collaborate with the County and all Marin cities and towns to evaluate opportunities for savings through additional partnerships, shared services, and/or other consolidation efforts Continue to explore and gauge community interest in other revenue generating possibilities Build the Emergency Reserve back up OTHER FUNDS CITY OF SAN RAFAEL FY 2020-2021 BUDGET Emergency Medical Services (Approved June 1) Capital Project Funds (Presented May 18) Measure A –Open Space (Approved May 18) Measure D –Library Parcel Tax (4th year) Measure C –Marin Wildfire Prevention (1st year) Parking Enterprise Fund Community Services –Recreation Community Services –Childcare/Preschool STAFFING CITY OF SAN RAFAEL FY 2020-2021 BUDGET FY 19/20 –addition of two positions and reduction of 1.5 positions School Resource Officer and Open Space Ranger externally funded through state grants and Measure C Given frozen positions and VRSPs, this leaves us with a workforce of 382.73, down from 405.73 Will not be hiring 127 temp/seasonal positions GANN APPROPRIATIONS LIMIT CITY OF SAN RAFAEL FY 2020-2021 BUDGET New calculated limit: $143,208,909 Appropriations subject to limit: 73,554,079 Under the legal limit: $69,654,830 RECOMMENDED ACTIONS CITY OF SAN RAFAEL FY 2020-2021 BUDGET (1) Adopt a resolution approving the Fiscal Year 2020- 2021 Budget (including Capital Improvement Program) (2) Adopt a resolution approving GANN Appropriations Limit