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HomeMy WebLinkAboutStaff Report 4.A 05/18/2015DATE: May 18, 2015 Agenda Item #4.A TO: Honorable Mayor and Members of the City Council through City Manager FROM: William Mushallo, Finance Director6� -- SUBJECT: Consideration of Preliminary FY 2015-2016 City of Petaluma Budget, Adoption of City Budget Resolutions, and First Reading of FY 2015-2016 City Appropriations Ordinances. RECOMMENDATION It is recommended that the City Council consider the tentative FY 2015-16 budget, Adopt Resolutions authorizing the FY 2015-16 Budget (Attachments 1-5), and Introduce (First Reading) FY 2015-16 Appropriations Ordinances (Attachments 6-10). BACKGROUND The City Charter requires that the annual budget be prepared and submitted by fund, department and debt repayment, and approved with the required appropriations ordinances. The Charter further requires that a tentative budget be presented to the City Council by the first Monday in May; for this year, May 4, 2015. In order to present a balanced budget, departments submitted their requests to the Finance Department pursuant to strict guidelines and were instructed to maintain budgets for services and supplies flat year over year. Increases are few and are nearly always justified not only on the basis of critical need but also on dedicated revenues. Salaries and benefits were calculated by the Finance Department and provided to departments. A draft of the budget was reviewed by the City Council at a workshop on May 11, 2015. Staff presented and discussed the proposed fiscal year 2015-16 budget and sought and received City Council input and guidance. At the conclusion of the budget workshop the City Council indicated support for the recommendations contained in the tentative 2015-2016 budget. DISCUSSION The total recommended budget for FY 2015-16, all funds, including the City Acting as Successor Agency to the Former PCDC and the City Acting as Housing Successor, is $161,604,688. This amount represents all funds of the City and their major components; operations, capital improvements, debt service and transfers. The recommended General Fund budget for FY 2015-16 is $41,459,967. General Fund expenditures are increasing modestly in the upcoming fiscal year by approximately $1.8 million or 4.7% over the revised budget for FY 2014-15. Salaries, the base wages and overtime paid to employees, are slightly less ($50,000) in FY 2015-16 as compared to FY 2014-2015. The decrease is due to savings associated with retirement -related turnover primarily in Public Safety positions. Incoming appointments are paid at lower salary steps than outgoing retirees. The savings associated with Salaries is more than offset by increases in Benefits which are approximately $550,000 (5%) greater in FY 2015-16 than FY 2014-2015. Escalation in Benefits is driven by increases in the City's share of PERS contributions and Workers' Compensation costs. An additional $100,000 is budgeted for Employee Retirements to support the separation expenses (leave accruals with cash value) of staff whose retirements are anticipated in the coming fiscal year. Although guidance requires departments to budget Services/Supplies at prior years' levels, they are able to request additional funds when costs cannot be contained and/or a source of new or increased revenue or funding can be applied to the cost. The amount recommended for Services and Supplies is $305,000 (5.3%) more than last year and primarily reflects an increase in the cost of participating in the joint powers agency for Computer Aided Dispatch ($60,000) and for Police body cameras ($50,000). Increases also include the partial restoration of budgeting in the General Fund for street lighting, $175,000. Intragovernmental costs, charges to the General Fund from the Information Technology, Risk and General Services' internal services funds, are increasing $365,000 (22.9%) and reflect increased IT and Risk budgets as well as updates to the cost allocation plan. Transfers -Out are $692,053 (102.5%) greater than in FY 2014-15 in response to the Council's strong distribution preferences for increasing the Vehicle Replacement fund ($400,000) and to support Storm Water costs ($200,000). The recommended budget includes the following changes in full-time staff positions: Additions and/or Changes: 1 Human Resources Specialist; funding of previously frozen position 1 Management Analyst; a new position in the Public Works and Utilities Department 3 Firefighter positions to be replaced by 3 Firefighter/Paramedics 1 Firefighter Engineer to be replaced by 1 Firefighter/Paramedic Following Council deliberation on May 18, 2015, it is recommended that the City Council approve the budget by resolution and provide for the first reading of the FY 2015-16 City appropriations ordinances. A resolution is required by City Charter to adopt the City's annual budget. Ordinances presented at the same time are required to appropriate funds for the fiscal year. The appropriations ordinances, if approved, would have their first reading and introduction at this meeting and would be scheduled for second reading and adoption at the next regular Council meeting on June 1, 2015. 2 FINANCIAL IMPACTS The estimated beginning fund balance for all funds is $104,544,659. The total budget for the City, City Acting as Successor Agency and City Acting as Housing Successor, including transfers, is $161,604,688. The budget is balanced by revenues and transfers in of $149,683,000 along with the use of fund balance in the amount of $11,921,688. This will result in an estimated ending balance, all funds, of $92,622,971. ATTACHMENTS 1. Resolution Adopting FY 2015-2016 General Fund Budget 2. Resolution Adopting FY 2015-2016 Enterprise Funds Budget 3. Resolution Adopting FY 2015-2016 Internal Service Funds Budget 4. Resolution Adopting FY 2015-2016 Special Revenues and Trust Funds Budget 5. Resolution Adopting FY 2015-2016 Capital Projects and Debt Fund Budget 6. Ordinance No. N.C.S. Appropriating Funds for FY 2015-2016 General Fund Including Exhibit A — Appropriation of Funds (First Reading) 7. Ordinance No. N.C.S. Appropriating Funds for FY 2015-2016 Enterprise Funds Including Exhibit A — Appropriation of Funds (First Reading) 8. Ordinance No. N.C.S. Appropriating Funds for FY 2015-2016 Internal Service Funds Including Exhibit A — Appropriation of Funds (First Reading) 9. Ordinance No. N.C.S. Appropriating Funds for FY 2015-2016 Special Revenues and Trust Funds Including Exhibit A — Appropriation of Funds (First Reading) 10. Ordinance No. N.C.S. Appropriating Funds for FY 2015-2016 Capital Projects and Debt Fund Including Exhibit A — Appropriation of Funds (First Reading) 11. Exhibit A to the Resolutions (Appropriations by Fund) 3 Attachment 1 RESOLUTION ADOPTING THE FISCAL YEAR 2015-2016 GENERAL FUND BUDGET WHEREAS, the City Manager has prepared and submitted to the City Council a preliminary budget for the period from July 1, 2015 through June 30, 2016, as required by Section 59 of the City Charter; and WHEREAS, the preliminary budget for fiscal year 2015-2016 does not exceed the estimated revenues, other sources and available fund balances; and WHEREAS, the City Council has reviewed the budget during its scheduled public budget workshop, that: NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Petaluma 1. The FY 2015-2016 Preliminary Budget is hereby adopted as the FY 2015-2016 General Fund Adopted Budget. 2. The FY 2015-2016 Appropriations, referred to as Exhibit A, which lists Appropriations by Department and by Fund is to be filed with the City Clerk. M Attachment 2 DRAFT RESOLUTION ADOPTING THE FISCAL YEAR 2015-2016 ENTERPRISE FUNDS BUDGET WHEREAS, the City Manager has prepared and submitted to the City Council a preliminary budget for the period from July 1, 2015 through June 30, 2016, as required by Section 59 of the City Charter; and WHEREAS, the preliminary budget for fiscal year 2015-2016 does not exceed the estimated revenues, other sources and available fund balances; and WHEREAS, the City Council has reviewed the budget during its scheduled public budget workshop, that: NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Petaluma 1. The FY 2015-2016 Preliminary Budget is hereby adopted as the FY 2015-2016 Adopted Budget for the following funds: Airport Community Development Marina Transit Storm Water Utility Waste Water Waste Water Stabilization Water 2. The FY 2015-2016 Appropriations, referred to as Exhibit A, which lists Appropriations by Department and by Fund is to be filed with the City Clerk. Attachment 3 DRAFT RESOLUTION ADOPTING THE FISCAL YEAR 2015-2016 INTERNAL SERVICE FUNDS BUDGET WHEREAS, the City Manager has prepared and submitted to the City Council a preliminary budget for the period from July 1, 2015 through June 30, 2016, as required by Section 59 of the City Charter; and WHEREAS, the preliminary budget for fiscal year 2015-2016 does not exceed the estimated revenues, other sources and available fund balances; and WHEREAS, the City Council has reviewed the budget during its scheduled public budget workshop, that: NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Petaluma 3. The FY 2015-2016 Preliminary Budget is hereby adopted as the FY 2015-2016 Adopted Budget for the following funds: Employee Benefits General Services Information Technology Risk Management Vehicle and Equipment Replacement Workers' Compensation 4. The FY 2015-2016 Appropriations, referred to as Exhibit A, which lists Appropriations by Department and by Fund is to be filed with the City Clerk. n Attachment 4 DRAFT RESOLUTION ADOPTING THE FISCAL YEAR 2015-2016 SPECIAL REVENUES AND TRUST FUNDS BUDGET WHEREAS, the City Manager has prepared and submitted to the City Council a preliminary budget for the period from July 1, 2015 through June 30, 2016, as required by Section 59 of the City Charter; and WHEREAS, the preliminary budget for fiscal year 2015-2016 does not exceed the estimated revenues, other sources and available fund balances; and WHEREAS, the City Council has reviewed the budget during its scheduled public budget workshop, that: NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Petaluma 5. The FY 2015-2016 Preliminary Budget is hereby adopted as the FY 2015-2016 Adopted Budget for the following funds: Special Revenues Trust Funds 6. The FY 2015-2016 Appropriations, referred to as Exhibit A, which lists Appropriations by Department and by Fund is to be filed with the City Clerk. 7 Attachment 5 RESOLUTION ADOPTING THE FISCAL YEAR 2015-2016 CAPITAL PROJECTS AND DEBT FUND BUDGET WHEREAS, the City Manager has prepared and submitted to the City Council a preliminary budget for the period from July 1, 2015 through June 30, 2016, as required by Section 59 of the City Charter; and WHEREAS, the preliminary budget for fiscal year 2015-2016 does not exceed the estimated revenues, other sources and available fund balances; and WHEREAS, the City Council has reviewed the budget during its scheduled public budget workshop, that: NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Petaluma 7. The FY 2015-2016 Preliminary Budget is hereby adopted as the FY 2015-2016 Adopted Budget for the following funds: Capital Projects Debt Fund 8. The FY 2015-2016 Appropriations, referred to as Exhibit A, which lists Appropriations by Department and by Fund is to be filed with the City Clerk. ORDINANCE NO. N.C.S INTRODUCED BY COUNCILMEMBER Attachment 6 SECONDED BY AN ORDINANCE APPROPRIATING FUNDS FOR THE OPERATION OF THE CITY OF PETALUMA GENERAL FUND FROM JULY 1, 2015 THROUGH JUNE 30, 2016 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. There is hereby appropriated for the usual and ordinary expenses of the City of Petaluma for the period of July 1, 2015 through June 30, 2016, the amounts set in the attached Exhibit A, incorporated by herein reference, and distributed to the various funds as set out in said exhibit and shall be expended and used in accordance therewith. Section 2. Changes with relation to the above appropriations between each respective department or fund may be made by resolution adopted by the City Council. The City Manager may administratively make changes within the departmental appropriations as approved, so long as the total amounts do not exceed, as a result of the change, the amounts set forth in the approved appropriation. Section 3. The City Council hereby finds and determines the amount of appropriations provided hereby does not exceed the estimated revenue, other sources and available fund balances in the amounts set in Exhibit A, which will be on file with the City Clerk for the fiscal year ending June 30, 2016. Section 4. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 5. The City Clerk is hereby directed to post/publish this ordinance or a synopsis of this ordinance for the period and in the manner required by the City Charter. INTRODUCED, ADOPTED AND ORDERED posted/published this day of , 2015, by the following vote: 7 ORDINANCE NO. N.C.S 11-ft#0]301i14 BY COUNCILMEMBER Attachment 7 SECONDED BY AN ORDINANCE APPROPRIATING FUNDS FOR THE OPERATION OF THE CITY OF PETALUMA ENTERPRISE FUNDS FROM JULY 1, 2015 THROUGH JUNE 30, 2016 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. There is hereby appropriated for the usual and ordinary expenses of the City of Petaluma for the period of July 1, 2015 through June 30, 2016, the amounts set in the attached Exhibit A, incorporated by herein reference, and distributed to the various funds as set out in said exhibit and shall be expended and used in accordance therewith. Section 2. Changes with relation to the above appropriations between each respective department or fund may be made by resolution adopted by the City Council. The City Manager may administratively make changes within the departmental appropriations as approved, so long as the total amounts do not exceed, as a result of the change, the amounts set forth in the approved appropriation. Section 3. The City Council hereby finds and determines the amount of appropriations provided hereby does not exceed the estimated revenue, other sources and available fund balances in the amounts set in Exhibit A, which will be on file with the City Clerk for the fiscal year ending June 30, 2016. Section 4. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 5. The City Clerk is hereby directed to post/publish this ordinance or a synopsis of this ordinance for the period and in the manner required by the City Charter. INTRODUCED, ADOPTED AND ORDERED posted/published this day of , 2015, by the following vote: 10 ORDINANCE NO. N.C.S INTRODUCED BY COUNCILMEMBER Attachment 8 SECONDED BY AN ORDINANCE APPROPRIATING FUNDS FOR THE OPERATION OF THE CITY OF PETALUMA INTERNAL SERVICE FUNDS FROM JULY 1, 2015 THROUGH JUNE 30, 2016 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. There is hereby appropriated for the usual and ordinary expenses of the City of Petaluma for the period of July 1, 2015 through June 30, 2016, the amounts set in the attached Exhibit A, incorporated by herein reference, and distributed to the various funds as set out in said exhibit and shall be expended and used in accordance therewith. Section 2. Changes with relation to the above appropriations between each respective department or fund may be made by resolution adopted by the City Council. The City Manager may administratively make changes within the departmental appropriations as approved, so long as the total amounts do not exceed, as a result of the change, the amounts set forth in the approved appropriation. Section 3. The City Council hereby finds and determines the amount of appropriations provided hereby does not exceed the estimated revenue, other sources and available fund balances in the amounts set in Exhibit A, which will be on file with the City Clerk for the fiscal year ending June 30, 2016. Section 4. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 5. The City Clerk is hereby directed to post/publish this ordinance or a synopsis of this ordinance for the period and in the manner required by the City Charter. INTRODUCED, ADOPTED AND ORDERED posted/published this day of , 2015, by the following vote: 11 ORDINANCE NO. N.C.S INTRODUCED BY COUNCILMEMBER Attachment 9 SECONDED BY AN ORDINANCE APPROPRIATING FUNDS FOR THE OPERATION OF THE CITY OF PETALUMA SPECIAL REVENUES AND TRUST FUNDS FROM JULY 1, 2015 THROUGH JUNE 30, 2016 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. There is hereby appropriated for the usual and ordinary expenses of the City of Petaluma for the period of July 1, 2015 through June 30, 2016, the amounts set in the attached Exhibit A, incorporated by herein reference, and distributed to the various funds as set out in said exhibit and shall be expended and used in accordance therewith. Section 2. Changes with relation to the above appropriations between each respective department or fund may be made by resolution adopted by the City Council. The City Manager may administratively make changes within the departmental appropriations as approved, so long as the total amounts do not exceed, as a result of the change, the amounts set forth in the approved appropriation. Section 3. The City Council hereby finds and determines the amount of appropriations provided hereby does not exceed the estimated revenue, other sources and available fund balances in the amounts set in Exhibit A, which will be on file with the City Clerk for the fiscal year ending June 30, 2016. Section 4. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 5. The City Clerk is hereby directed to post/publish this ordinance or a synopsis of this ordinance for the period and in the manner required by the City Charter. INTRODUCED, ADOPTED AND ORDERED posted/published this day of , 2015, by the following vote: 12 ORDINANCE NO. N.C.S INTRODUCED BY COUNCILMEMBER 0X4 Attachment 10 AN ORDINANCE APPROPRIATING FUNDS FOR THE OPERATION OF THE CITY OF PETALUMA CAPITAL PROJECTS AND DEBT FUNDS FROM JULY 1, 2015 THROUGH JUNE 30, 2016 BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. There is hereby appropriated for the usual and ordinary expenses of the City of Petaluma for the period of July 1, 2015 through June 30, 2016, the amounts set in the attached Exhibit A, incorporated by herein reference, and distributed to the various funds as set out in said exhibit and shall be expended and used in accordance therewith. Section 2. Changes with relation to the above appropriations between each respective department or fund may be made by resolution adopted by the City Council. The City Manager may administratively make changes within the departmental appropriations as approved, so long as the total amounts do not exceed, as a result of the change, the amounts set forth in the approved appropriation. Section 3. The City Council hereby finds and determines the amount of appropriations provided hereby does not exceed the estimated revenue, other sources and available fund balances in the amounts set in Exhibit A, which will be on file with the City Clerk for the fiscal year ending June 30, 2016. Section 4. All ordinance or parts of ordinances in conflict herewith are hereby repealed. Section 5. The City Clerk is hereby directed to post/publish this ordinance or a synopsis of this ordinance for the period and in the manner required by the City Charter. INTRODUCED, ADOPTED AND ORDERED posted/published this day of , 2015, by the following vote: 13 Exhibit A CITY OF PETALUMA, CA PRELIMINARY FY 2015-16 BUDGET APPROPRIATIONS BY DEPARTMENT AND FUND SPECIAL REVENUE FUNDS Community Development Block Grant Budgeted Budgeted Total Housing Successor Agency Appropriations Transfers Out Budget GENERALFUND 3,000 - 3,000 General Fund Cost Center 1,088 1,367,053 1,368,141 City Council 120,305 - 120,305 City Attorney 879,885 - 879,885 City Clerk 264,256 - 264,256 City Manager 800,462 - 800,462 Economic Development 299,678 - 299,678 Finance 1,936,669 - 1,936,669 Human Resources 488,692 - 488,692 Non Departmental 1,161,449 - 1,161,449 Community Development 554,149 - 554,149 Fire 12,240,359 - 12,240,359 Recreation 1,644,283 - 1,644,283 . Police 16,023,530 - 16,023,530 Public Works 3,678,109 - 3,678,109 TOTAL GENERAL FUND 40,092,914 1,367,053 41,459,967 SPECIAL REVENUE FUNDS Community Development Block Grant 324,458 28,130 352,588 Housing Successor Agency 316,967 - 316,967 Mobile Home Rent Program 3,000 - 3,000 Aquatic Facility Impact Fees 7 - 7 Commercial Linkage Fees 340,000 50,000 390,000 Community Facilities Impact Fees 29 - 29 Community Facilities Impact Fees - 08 12 - 12 Fire Suppression Impact Fees 8 120,000 120,008 Housing In -Lieu Fees 142,511 50,000 192,511 Library Facility Impact Fees 20 - 20 Parkland Acquistion Impact Fees -08 753 - 753 Parkland Development Impact Fees -08 5,286 574,452 579,738 Open Space Acquisition Impact Fees - 08 390 - 390 Quimby Act Dedication and In -Lieu -08 954 - 954 Law Enforcement Facility Impact Fees 30 - 30 Public Facilities Impact Fees 12 - 12 Public Facilities Impact Fees -08 11 - 11 City Facilities Development Impact Fee 5,505 - 5,505 Storm Drainage Impact Fees 1,121 744,000 745,121 Storm Drainage Impact Fees - 08 416 - 416 Traffic Mitigation Impact Fees 96 1,105,567 1,105,663 Traffic Mitigation Impact Fees -08 55,943 1,793,433 1,849,376 Public Art Fees 143,537 - 143,537 14 CITY OF PETALUMA, CA PRELIMINARY FY 2015-16 BUDGET APPROPRIATIONS BY DEPARTMENT AND FUND Budgeted Budgeted Appropriations Transfers Out 3% Admin Impact Fees Police Grants Parks and Rec Grants Public Works Grants Gas Tax Landscape Assessment Districts Abandoned Vehicle Abatement Asset Seizures Street Maintenance Gas Tax Transient Occupancy Tax Haz Mat Fines SLESF Donations Prince Park Trust TOTAL SPECIAL REVENUE FUNDS ENTERPRISE FUNDS Airport Operations Community Development Marina Public Transportation Waste Water Utility Waste Water Rate Stabilization Water Utility Storm Utility TOTAL ENTERPRISE FUNDS INTERNAL SERVICE FUNDS Employee Benefits General Services Information Technology Risk Management (Liability) Vehicle and Equipment Replacement Workers' Compensation TOTAL INTERNAL SERVICE FUNDS 22,876 567,000 34,569 316,459 81,422 101,857 3,029,556 402,117 10,070 57,384 5,964,376 1,835,382 1,354,515 313,589 6,698,197 20,412,543 14,218,533 548,181 45,380,940 1,076,625 224,023 1,802,161 1,677,178 1,464,394 6,244,381 336,000 3,627,000 1,873,262 30,000 567,000 1,455,512 100,000 188,000 56,500 12,698,856 250,000 8,639,000 6,776,000 15,665,000 Exhibit A Total Budget 22,876 567,000 336,000 3,627,000 1,907,831 316,459 81,422 131,857 3,596,556 1,857,629 10,070 100,000 245,384 56,500 18,663,232 1,835,382 1,354,515 313,589 6,948,197 29,051,543 20,994,533 548,181 61,045,940 1,076,625 224,023 1,802,161 1,677,178 1,464,394 6,244,381 [F Exhibit A CITY OF PETALUMA, CA PRELIMINARY FY 2015-16 BUDGET APPROPRIATIONS BY DEPARTMENT AND FUND Budgeted Budgeted Total Appropriations Transfers Out Budget CAPITAL PROJECT FUNDS General Gov CIP 100,000 - 100,000 Fire CIP 120,000 - 120,000 Parks and Recreation CIP 968,000 - 968,000 Public Works/Surface Water CIP 11,237,000 - 11,237,000 Transit CIP 317,000 - 317,000 Waste Water/Recycled Water CIP 8,702,000 - 8,702,000 Water CIP 7,216,000 - 7,216,000 TOTAL CAPITAL PROJECT FUNDS 28,660,000 - 28,660,000 Successor Agency Debt 4,940,891 - 4,940,891 Successor Agency C IP - - - Successor Agency Admin 590,277 - 590,277 TOTAL SUCCESSOR AGENCY FUNDS 5,531,168 - 5,531,168 GRAND TOTAL $ 131.873.779 $ 29.730.909 $ 161.604.688 16