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Home My WebLink AboutStaff Report 1.A 05/08/20172017-18 Budget Worksho*� Presentation City Manager Comments Tonight's Agenda �j • All Funds Budget Overview • General Fund Budget Overview • Long Term Operating Forecast Update • Budget risks &opportunities • Enterprise Funds budget highlights • Capital Improvement Program review * Departmental budget Q&A All City Funds FY 18 Revenues Internal Service 4% Utilit 27°, $162.2M Capital Successor Project 9,?.% general Fund 27% ial Rev Trust Enterprise 12% 4% All City Funds FY 18 Expenditures Internal Service 4% Utiliti( 35% Successor A $182M Capital Proj ect 21% I" --- 'ral Fund Enterprise 4% 25% pecial Rev & Trust 8% General Fund Revenues Property Taxes Sales Taxes Bus Licenses & Property Transfer Taxes Franchise Fees Licenses & Permits Fines & Forfeitures Investment Earnings & Rent Intergovernmental Revenue Charges for Services Other Revenues TOT Transfer Other Transfers Funds from Designated Reserves Revised FY 16 -17 Budget FY 17 -18 Change Change % 996249157 1090099123 384,966 4.0% 1293509134 1295049700 154,566 1.3% 295469950 294519000 (95,950) -3.8% 25976,187 390109873 349686 1.2% 191109520 190989000 (129520) -1.1% 5759500 9429000 3669500 63.7% 4435800 4379700 (69100) -1.4% 516279912 598849988 2579076 4.6% 519669148 691179000 1509852 2.5% 179000 149000 (39000) -17.6% 154049012 1,3649012 (40,000) -2.8% 3429200 1869500 (1559700) -45.5% 7649000 5009000 (2649000) -34.6% Totals 43,7489520 4495199896 7719376 1.8% Taxes 62.84% City of Petaluma FY 2018 General Fund Revenues by Type $44,519,896 Funds from Designated Reserve 1.12% Transfers In 3.48% Licenses, Permits and .Fees 2.47% Ines, Forfeitures, Penalties 2.12% vestment Earnings and Rent 0.98% Intergovernmental 13.22% Charges for Services 13.74% Other Revenue 0.03% General Fund Expenditures by Type FY 2017 FY 2018 Percent Expenditures Revised Recommended Change Change Salaries $22,340,937 $22,290,927 ($50,010) -0.2% Benefits $12,508,785 $12,957,559 $448,774 3.6% Services /Supplies $6,575,978 $6,284,434 ($291,544) -4.4% Intra- governmental $1,958,638 $1,839,433 ($1191205) -6.1% Capital $0 $40,000 $40,000 100% Transfers $1,356,053 $1,160,053 ($196)000) -14.5% TOTAL EXPENDITURES $44,740,391 $44,572,406 ($167,985) -0.4% General Fund Expenditures by Transfers City Council City Attorney City Clerk City Manager Economic Development Human Resources Non Departmental Finance CDD Fire Parks and Recreation Police Public Works Department Revised Proposed Percent FY 16 -17 FY 17 -18 Change Change 193569053 191609053 (1969000) -14.5% 1129151 109,808 (29343) -2.1% 11017,322 9259020 (929302) -9.1% 3239274 263,909 (599365) -18.4% 8419511 8349383 (79128) -0.8% 358,296 385,520 279224 7.6% 5329081 5499097 179016 3.2% 191959288 191999567 4,279 0.4% 210599662 291109350 50,688 2.5% 5549649 5439828 (109821) -2.0% 1395559621 1393779376 (1789245) -1.3% 197929654 198289278 359624 2.0% 1791169000 17,3879532 2719532 1.6% 399259829 398979685 (289144) -0.7% Total 4497409391 4495729406 (1679985) -0.4% FY 2017-18 Budget Summary • Beginning working capital balance of $1.0 million • Revenues of $44.5 million • Expenditures of $44.5 million • Ending working capital balance of $1.0 million • Does not include designated reserve of $7.4 million Forecasted Revenue Assumptions • Property tax revenues increase by 4% in FY17- 18. Growth assumption declines slightly over the duration of the forecast • Base sales tax revenues growing at between 2.3% and 2.8% over the life of the forecast. • Other revenues grow by a CPI factor of 2% to 3% annually Forecasted Expenditure Assumptions (1 of 2) • Health insurance,grows at 9% annually for Safety, capped for Miscellaneous • Worker's comp grows at 5% annually • No COLAs included • Comp time payouts budgeted • Separation expenses budgeted at $500,000 and OPEB pay down budgeted at $200,000 annually Forecasted Expenditure Assumptions (2 of 2) • CalPERS retirement costs updated from latest CalPERS actuarial valuation • Vehicle Replacement budgeted at $300,000 annually from the General Fund • Storm Water Transfers out of $592,000: — $450,000 for operations — $37,000 Storm Drainage loan repayment — $11,000 Legal cost repayment — $94,000 Legal settlement costs Forecast Model Results (in millions) Rev 2017 Fcst 2018 Fcst 2019 Fcst 2020 Fcst 2021 Revenues 43.7 44.5 45.6 46.7 47.9 Expenditures 44.7 44.6 46.4 48.2 49.9 Rev over /(under) -1.0 -0.1 -0.9 -1.4 -2.0 Long Term Forecast Risks • Significant increases in retirement costs projected in the out years of the forecast, and for several years thereafter • Economic and Housing Market growth could slow and impact tax revenues PERS discount rate assumption could change again in February Long Term Forecast Opportunities • Revenues will continue to be revised and updated from pending development • Economic growth, declines in unemployment, and economic development initiatives continue The Bottom Line LIB' • Financial situation has stabilized somewhat over the past several years, but significant structural deficit looms in the future. • $4 million in reserves is available for emergencies. This amount will continue to be increased by using one -time revenues until 15% is attained • Revenue generation opportunities will continue to be evaluated 11 0 Acknowledgements Marilu Zubiri Corey Garberolio Janine Tedrow Jason Earl Larry Zimmer • Department Representatives Utility Fund Highlights A brief overview of highlights related to the Utility Fund budgets will be provided at this time FY 2017 FY 2018 Percent Expenditures Revised Proposed Change Change Salaries and Benefits $ 2015966 $ 2,928,326 $ 465360 2% Services and Supplies 11,471,086 $ 11,8155080 $ 343,994 3% Capital 18,000 $ 390,200 $ 3725200 2068% Transfers 7,831,205 $ 3,1965000 $ (4,635.,205) -59% Total Expenditures $ 2292029257 $ 189329,606 $ (398729651) -17% Major Drivers of Change: Increases- • Cost of Living Adjustments/PERS rates /Step Advancements • Wholesale Water Costs • Purchase of Vacuum Truck Decreases- 0 Decreased level of CIP activity and corresponding Transfers Waste Water Utility Enterprise Fund Expenditures by Type FY 2017 Expenditures Revised Salaries and Benefits $ 3,701,748 Services and Supplies 17,126,745 Capital 126,100 Transfers 12,522,000 Total Expenditures $ 3394769593 FY 2018 Percent Proposed Change Change $ 4,179,454 $ 477,706 13% $ 16,958,172 $ (168,573) -1% $ 12800 $ 19900 2% $ 245337,000 $ 11,815,000 94% $ 4596029626 $ 1291269033 36% Major Drivers of Change: Increases- • Cost of Living Adjustments/ PERS Rates /Step Advancements • Additional Position • Increased Level of CIP activity and corresponding Transfers Decreases- 0 Less Charges for participation in the North Bay Water Reuse Authority Capital Improvement Program Major projects included in the FY 18 Surface 12' Recycled Watc $2,523 7% Transit $178 .5% City of Petaluma Fiscal Year 2018 CIP Funding Uses (in thousands) $3795989000 Water $1,347 4 °/n Waste Water $22,733 Public Works Parks and Recreation 3% $3,953 $610 10% 1.5% City of Petaluma Fiscal Year 2018 CIP Funding Sources (in thousands) $3795989000 Prior Year Funds & Timing $202 0.5% Utility Pavement Fees $930 TOT 2.5% $1,414 3.8% General private Fund Funding /Dev. $68 Contributions 0.2% $245 0.7% / Waste Water $ 20,433.E 54.3% FTA /MTC/TDA- Streets Transit $532 $91 1.4% 0.2% Interfund Loan—/ $1,490 SCWA Zone 2A Assessments 4.0% $1,565 4.2% Water $2,581 Other 6.9% $60 0.2% Housing Related Parks Program $132 0.4% Airport /Federal Aviaiton Admin. $571 1.5% Impact Fees $701 1.9% Grants $6,583 17.5% Public Works -Roadway Projects Downtown ADA Improvements In Construction $0.9 million Fall 2017 * Sidewalk repair and Revolving Loan In Construction $0.1 million Spring 2018 * Pavement Restoration 2017-18 In Planning $1.25 million Fall 2017 LED Streetlight Retrofit In Design $1.5 million Fall 2017 Channelization Lakeville & Pine View Way In Design $0.4 million Fall 2017 River Trail — Washington to Lakeville In Planning $0.3 million Fall 2017 Washington Street Bridge Seismic Rehab In Planning $4.3 million FY 19-20 Rivertrail —;101 /Crossing In Planning $2.8 million FY 19-20 Road Diet Ext Petaluma Blvd. S In Planning $3.2 million FY 19-20 Caulfield Bridge and Extension In Planning Unknown - * Recurring Projects planned for each FY. 8 Public Works -Roadway Prortc I `e �I V\vIVS-�7z,- 1 rises - - - - - -- - - -__ �1 re vv HussY.� GUNfIHD hW r7>r oerr�r uT nx,m uar� I � y � 11 I I� OTeR w343� ti's, nu ar � 2 Caulfield Bridge and Extension I e Ph 1 shown above completed = 730 replacements Ph2 — In design will upgrade 3300 lights throughout the City. LED Streetlight Retrofit Utility Projects - Water. Projects Hardin & Manor Tank Exterior Recoating In Design million Fall 2017 Water Service Replacements In Planning $2.3 million FY 18-19 Well Construction In Planning $1.1 million Unknown Paula Lane Reservoir Improvement Project — In construction Utility Projects- Recycled Water Projects i r e " K Recycled Water System Extension — Prop 1 A Sonoma Mtn. Parkway In Construction $2.9 million - Tertiary Filtration System Expansion Uncertain $6.9 million FY ? Recycled Water System Extension — Prop 1 A- Sonoma Mtn. Parkway 0 PON Utility Projects-Surface Water Projects Capri Creek Re-Contouring & Terracing In Construction $1.1 million Old Corona Road Water Quality Mitigation In Planning $1.2 million Spring 2018 Petaluma River Flood Management —Denman Reach Phase A In Planning $3.7 million FY 18-19 Old Corona Road Water Quality Mitigation Denman Reach Ph 4 J 0 fility Pro*lects-Wastewater • Petaluma Blvd. South Sewer Trunk Main — In Construction t &6S Sewer Main Replacement 1617 In Construction $2.9 million - Ellis Creek Solids Handling Upgrades In Construction $13.6 million - Petaluma Blvd. So. Sewer Trunk Main In Construction $3.1 :million Ellis Creek Bridge In Design $0.4 million Fall 2017 Hopper Street Emergency Pumping Storage In Design $0.5 million Fall 2017 Ellis Creek High Strength Waste Facilities In Design $8.5 million Fall 2017 CNG Facilities Ellis Creek In Design $5.8 million Fall 2017 Chemical System Upgrade Planning $3.3 million FY 18 -19 Payran Lift Station Upgrade In Planning $3.1 million ' FY 19 -20 Petaluma Blvd. South Sewer Trunk Main — In Construction t &6S Utility P Projects Ellis Creek Solids Handling Project — In Construction Ellis Creek HSW & CNG — In Design KcM Misc. Projects- Pa rks/Facility/Airport ZWE Parks Projects: • Playground iReplacements In Planning $360k Fall 2017 • Petaluma Community Sports Fields Baseball Diamond In Planning $3.7 million FY 18 -19 Facility Improvements: _w .� Me • Community Center Interior Repairs In Design $AOOk Fall 2017 • Community Center Parking Lot Rehab In Design $AOOk Summer 2017 • Fire Station 1 Roof Replacement In Design $120k Winter 2017 o Police Department HVAC In Design $102k Winter 2017 • Remodel Fire Stations #2 & #3 In Design $150k Fall 2017 . w Gwam , S"MI MtCar�ra o _w .� Me fM I'M L c 0 rn C aFuture 0 • r c�,b�