5A Public Hearings 2019 0603 - Laserfiche WebLink

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File Number: 19-079 Overall, the Biennial Budget expenditures proposed for 2019-20 and 2020-21 total $185.9 million and $190.8 million, respectively. The City’s General Fund accounts for $116.8 million in 2019-20, and $120.3 million in 2020-21. The SARA is $6.3 million and $6.8 million for 2019-20 and 2020-21, respectively. Enterprise activities (Water Pollution Control Plant, Environmental Services, Shoreline and Storm Water) are $18.9 million and $20.7 million for 2019-20 and 2020-21, respectively. Capital Improvement activities are $5.3 million and $5.0 million for 2019-20 and 2020-21, respectively (note the Financial Software System Installment 1 is reflected on the CIP list and funding is captured in the Information Technology Internal Service Fund for $300,000); and all other fund activities equal $38.6 million and $37.9 million for 2019-20 and 2020-21, respectively. Staff began planning the 2019-20 and 2020-21 biennial budget in the summer of 2018, and started discussions with the City Council Finance Committee regarding a comprehensive financial forecast model. On January 28, 2019 the financial forecast model was presented to City Council during a work session for hands-on use and assumption changes. As part of the Biennial Budget process, the City Council reaffirmed its vision for the City during its Annual Planning session February 2, 2019. These areas of focus help set the framework for the City’s budget development. Since January, staff has continued biennial budget discussions with the City Council through a CIP work session and budget presentation during a Council meeting that focused on budget forecasts, net post employment liabilities, service initiatives and the City’s capital needs. Budget Analysis A number of factors influence the long-term fiscal health of the City: ·Net post employment liabilities ·Service level demands ·CalPERS rate change impact ·Labor agreements ·Community and social service programs support ·Fire contract services, equipment and increased CalPERS and OPEB costs ·Maintain reserve levels ·Capital Improvement Program The 2019-20 and 2020-21 General Fund Biennial Budget reflects revenue growth largely attributed to sales tax revenues associated with Measure HH. The strong East Bay housing market helps City property tax revenues with increased assessed values from 5.7% to 6.2%. Strong revenues, combined with an organizational commitment to hold the line on new expenditures, has resulted in a proposed budget that is balanced without the use of reserves for 2019-20. The General Fund disbursements include $10.6 million transfers out to other funds during the next two years. Of the total $10.6 million, $300,000 would go directly to the Information Technology Fund for Enterprise Resource Planning software and $10.3 million would fund a variety of capital improvements, including streets, Farrelly Pool, and City buildings. In addition to the General Fund, the City maintains other key revenue funds that range from the Page 2 City of San Leandro Printed on 5/29/2019 12