PowerPoint Presentation 2012-13 Proposed Budget

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City of San Leandro 2012-13 City Manager’s Proposed Budget City Council Meeting May 21, 2012 1 Overview •Budget overview and process •City Council goals •One-time needs expenditures •Total City budget •General fund budget •RDA and Successor Agency •Special Revenue, Enterprise, and Internal Service funds •Capital Improvement Program •Next Steps 2 Budget Overview and Process •Budget – based on estimates, projections, fluid plans •Public Process –Began in October –Finance Committee -November through May –City Council retreat in February –City Council work sessions March and April •Strategies addressing one-time needs •Services funded through the budget –Mid-year review – budget adjustments 3 Budget Overview (cont) •Considerations –Hold the line on staffing and in general, expenditures –Maintain existing service levels –Dissolution of RDA 4 Budget Overview (cont) •Focus on sustainable budget –Conservative revenue projections –Contribution to General Fund reserves –Labor negotiations –Balancing future fund deficits –Measure Z sunsets in 2018 •World economic impact, i.e. European debt crisis •For 2012-13, State deficit of $15.7 billion, Alameda County of $88 million 5 City Council Goals Place the City on a firm foundation for long-term fiscal sustainability Work with the community and all stakeholders towards completing major projects and programs for sustainable economic development Provide quality public safety services and work in partnership with the community to keep San Leandro safe Maintain and enhance City’s infrastructure Support programs, activities and communication that enhance quality of life in San Leandro and promote sense of community and civic pride Maintain and support strong positive relationship between the City and schools 6 One-time Needs Expenditures 2011-12 Fund Balance 7 2012-13 City Council Goals One-Time Need Proposed Funding Foundation for long-term fiscal sustainability Transfer to Economic Uncertainty reserve $ 600,000 Complete projects for sustainable economic development Leverage for grant application(s) for economic development 50,000 Provide quality public safety keeping community safe Crime analysis/information sharing software 50,000 Maintain and enhance infrastructure Building Capital Improvement projects ADA compliance plan Fiber optic loop project 540,000 75,000 60,000 Enhance the quality of life and promote sense of community and civic pride Library book budget challenge, includes community matching program Community assistance grant, restore 15% CDBG reduction Project literacy, includes matching program 50,000 15,000 40,000 Strong positive relationship between City and schools San Leandro Museum and Art Gallery – school tours 25,000 Additional one-time funding from City Manager Contingency TBD (See handout) 50,000 Total $1,555,000 Every Year’s Budget Uniquely Challenging 2012-13 •Unwinding redevelopment •Affects of Great Recession continue •Labor negotiations •Measure Z sunsets 5 years from March 2013 •Even with Measure Z, total revenues remain below 2006-07 8 Total City Budget Revenues $120,519,405 9 General Fund, $75,098,410 62% Special Revenue Funds, $7,876,531 7% Capital Improvement Projects Fund, $185,000 Debt Service Funds, $2,945,211 2% Enterprise Funds, $16,711,210 14% Internal Service Fund, $11,769,178 10% Successor Agency Funds, $5,933,865 5% Total City Budget Expenditures $119,454,751 10 General Fund $76,089,578 63% Special Revenue Funds $8,971,545 8% Capital Improvement Projects Fund $185,000 0% Debt Service Funds $2,914,578 2% Enterprise Funds $13,850,511 12% Internal Service Funds $11,509,495 10% Successor Agency Funds 5,933,865 5% General Fund Annual Expenditures and Revenues Historical Data, 2006-07 thru 2012-13 Actual Actual Actual Actual Actual Projected Proposed 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Revenues $ 78,113,000 $ 75,261,000 $ 71,133,000 $ 70,718,000 $ 72,548,000 $ 74,605,000 $ 75,098,000 Expenditures 72,049,000 77,397,000 78,097,000 74,305,000 69,677,000 72,252,000 76,090,000 Net $ 6,064,000 $ (2,136,000) $ (6,964,000) $ (3,587,000) $ 2,871,000 $ 2,353,000 $ (992,000) 11 64,000,000 66,000,000 68,000,000 70,000,000 72,000,000 74,000,000 76,000,000 78,000,000 80,000,000 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Revenues Expenditures $6.0m Surplus $7.0m Deficit $2.8m Surplus Why General Fund Revenue Challenge? •San Leandro residential property value decline, secured property assessed value dropped •San Leandro residential foreclosures still at historical levels –20 per month in 2008-09 down to 13 per month in 2011-12 •San Leandro unemployment at 10.7%; Alameda County at 9.3% •Development and construction declined –City building permits down by 41% since 2006-07 –Valuation down 39% 12 General Fund Annual Revenues 2006-07 through 2012-13 13 -2,500,000 5,000,000 7,500,000 10,000,000 12,500,000 15,000,000 17,500,000 20,000,000 22,500,000 25,000,000 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Budget 2012-13 Proposed Property Tax Sales Tax Franchise Fees 911 Fee/Tax Property Transfer Tax Business License Tax Other Revenues Meas. Z $869k Meas. Z $3.8m Meas. Z $3.8m General Fund Expenditure Summary 14 Hold the line budget, no additional department reductions -One full-time position restoredIncreased Costs:Employee furlough termination666,000$ Fire services contract603,000 RDA -transfer positions from RDA (revenue offset)533,000 PERS rates -miscellaneous employees509,000 General liability claim costs478,000 RDA -transfer services from RDA (revenue offset)439,000 PERS rates -public safety employees323,000 Other ISF allocation245,000 Human Resources manager position192,000 CIP operating transfer185,000 Employee health benefits111,000 Municipal election110,000 Other service and supply costs108,000 Additional vehicle replacements66,000 Legal services and other consulting62,000 Expected Savings:Refinancing public safety pension(300,000) Total increase in General Fund expenditures4,330,000$ Budget Balancing Strategies 2012-13 15 Increase Sales Tax revenue estimate, adjusting forecast to factor in 2011-12 increases $ 267,000 Appropriate portion of building permit revenue to match 2012-13 expenditure requirement 300,000 Appropriate Community Impact payment (20%) without offsetting transfer increasing reserves 300,000 Use 2011-12 carryover Fund Balance for limited duration (first of five years) fire apparatus lease payment 207,000 Department reorganizations, limited hiring freeze and extended vacancy duration prior to recruitment, eliminating summer interns from E&T and directly impact capital improvement projects (same as 2011-12) 244,000 Total $ 1,318,000 General Fund Budget Summary 2011-12 and 2012-13 16 2011-12 Adopted2011-12 Projected2012-13 ProposedBeginning fund balance468,000$ 2,468,000$ 2,821,000$ Operating revenues71,760,000 74,605,000 75,098,000 Operating expenditures(71,692,000) (72,003,000) (75,833,000) Operating transfers(68,000) (249,000) (257,000) Total expenditures(71,760,000) (72,252,000) (76,090,000) Operating surplus/deficit-2,353,000 (992,000) Other sources/(uses)-(2,000,000) -Ending fund balance468,000$ 2,821,000$ 1,829,000$ Use of fund balance:Building permit revenue300,000$ Community impact designation300,000 Fire apparatus lease payment207,000 Capital improvements185,000 992,000$ General Fund Budget $76,089,578 17 Police $25,330,94233.3%Fire $18,888,75324.8%General Government$3,871,3455.1%Finance$2,298,7943.0%Non-Departmental/Transfers$1,558,9081.0%Recreation & Human Resources$3,990,0235.2%Library Services$4,680,1676.2%Engineering & Transportation$2,461,1593.2%Community Development$3,851,1255.1%Debt Service$4,866,1026.4%Public Works$4,292,2605.6% Total City Staffing 18 •2012-13 decrease primarily due to RDA dissolution •2008-09 baseline year for comparison 0.0 100.0 200.0 300.0 400.0 500.0 2008-09 2009-10 2010-11 2011-12 2012-13 379.8 337.1 290.2 292.1 297.0 120.0 116.7 115.4 117.1 109.5 # of Full-time Equivalents General Fund Other Funds 499.8 452.7 (-9%) 404.5 (-19%) 409.2 (-18%) 406.5 (-19%) Seven Year Forecast, General Fund Revenues and Expenditures 2012-13 through 2018-19 69,000,000 71,000,000 73,000,000 75,000,000 77,000,000 79,000,000 81,000,000 83,000,000 85,000,000 87,000,000 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Revenues Expenditures Measure Z Expires 3-31-2018 COPS Grant Expires 19 RDA Elimination Revenues and Expenditures 20 Tax Increment $10,824,000 Operations $3,234,000 Property Taxes $760,000 Other Revenue $231,500 Capital Improvements $1,205,000 Administration $250,000 Service/Spls $492,000 Debt Service $4,966,000 Other Revenue $310,000 Salaries/Benefits $473,000 $-$2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 ROPS Bonds $4,195,000 Bayfair 200,000 SLUSD 327,000 Auto Mall 95,000 GF Loan 173,000 HUD 108 172,000 Misc 164,000 Total $5,326.000 ROPS Reimbursement $5,326,000 Overhead$355,00Scenario B 2011-12 Adopted Budget Revenues 2011-12 Adopted Budget Expenditures 2012-13 Proposed Budget Expenditures 2012-13 Proposed Budget Revenues Scenario B Administrative/Program and Overhead Expenditures 21 Expenditure DescriptionProposedSalaries and Benefits438,770$ Administration and Operating46,500 Programs:Chamber support10,000$ Stepping Stones22,000 Downtown sidewalk cleaning20,000 Downtown PBID40,000 Farmer's Market9,000 Downtown Business Assoc. support5,000 Incentives (façade, broadband, etc)180,000 Downtown holiday lights5,000 Everyone Home6,000 Fair Housing Program10,000 Mortgage credit certificate1,000 DSFRC Affordable housing11,000 Single Family Rehab55,000 First Time Home Buyer35,000 Project financial analysis20,000 Marketing30,000 Memberships23,500 Total Programs482,500 Overhead Costs (ISF)103,006 RDA O/H costs redistributed to Gen Fund depts249,224 Total Scenario B Expenditures1,320,000$ Special Revenue Fund Summary 22 Fund DescriptionRevenuesExpendituresOperatingSurplus/DeficitCDBG$ 561,000$ (539,000)$ 22,000HOME Grant Housing141,000(141,000)0Housing In Lieu000Business Improvement District299,000(297,000)2,000Parking 275,000(320,000)(45,000)Park Development Fees31,000(18,000)13,000Heron BayMaintenance330,000(438,000)(108,000)Cherrywood Maintenance22,000022,000Asset Seizure 6,00006,000Grants1,891,000(1,927,000)(36,000)Public Education& Government (PEG)150,000(149,000)1,000 2012-13 Enterprise Fund Summary 23 Fund Description Beginning Fund Balance Revenues Expenditures Ending Fund Balance Water Pollution Control Plant 8,287,000 12,340,000* (9,176,000) 11,451,000 Environmental Services $ 1,205,000 $ 1,167,000 $ (1,404,000) $ 968,000 Shoreline (136,000) 2,130,000 (2,116,000) (122,000) Storm Water 242,000 1,075,000 (1,155,000) 162,000 * Includes $260,000 loan repayment for Public Safety Retirement Side Fund refinancing Internal Services Revenue Funds Summary 24 Fund Description Revenues Expenditures Operating Surplus/Deficit Building Maintenance $ 2,864,000 $ (2,864,000) $ 0 Information Services 3,674,000 (3,674,000) 0 Self Insurance 3,500,000 (3,240,000) 260,000 Equipment Repairs and Maintenance 1,731,000 (1,731,000) 0 Capital Improvement Program Summary 17 Projects ($5.335 million) Projects are maintenance and safety related 4 of the City Council Top 10 projects are funded (12 of the top 25) Funding Summary: • Developer Fees for Street Improvements $ 91,528 • General Fund 185,000 • Park Development Fees 17,946 • Gas Tax (Section 2103) 931,112 • Measure B 2,184,356 • Heron Bay Maintenance Assessment District 100,000 • Special Grants 496,202 • Community Development Block Grant (CDBG) 86,139 • Water Pollution Control Plant Enterprise fund 1,243,000 Total Capital Improvement Program Funding $ 5,335,283 25 Next Steps •Public Hearing – City Council meeting June 4, 2012 •Published Adopted Budget will be available in August •Adopted budget available via –City’s website –City’s libraries –Senior community center •Budget in Brief available in July 26 Questions? 27