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HomeMy WebLinkAbout09 - OB-1 - Financial Update Report - 3/7/2017CITY COUNCIL AGENDA REPORT MEETING DATE: March 7, 2017 ITEM NUMBER: OB -1 SUBJECT: FINANCIAL UPDATE REPORT INCLUDING REVIEW OF JUNE 30, 2016 CAFR, FY 16-17 MID -YEAR BUDGET REPORT and UPDATED FIVE-YEAR FINANCIAL PLAN DATE: February 28, 2017 FROM: FINANCE DEPARTMENT PRESENTATION BY: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR FOR FURTHER INFORMATION CONTACT: STEPHEN DUNIVENT 714.754.5243 RECOMMENDED ACTIONS: 1. From the June 30, 2016 CAFR: a. Receive and file the FY 15-16 Comprehensive Annual Financial Report. b. Approve FY 16-17 budget adjustments for the carryover of certain FY 15-16 encumbrances and other items as detailed in Attachment 1 B. c. Approve recommended uses of the FY 15-16 net change in General Fund balance (surplus) and authorize the City Manager to make the necessary budget adjustments related to those recommendations as detailed in Attachment 1 C. 2. From the FY 16-17 Mid -year Budget Report: a. Receive and file this report. b. Approve allocation of the General Fund contingency account as listed in Attachment 2F. c. Approve recommended FY 2016-17 budget adjustments as listed in Attachments 2G and 2H. d. Provide direction on de -obligation of FY 13-14 funds for Fairview Park parking lot lighting in the amount of $650,000, and allocation of this for other Master Plan improvements in Fairview Park. 3. From the Updated Five-year Financial Plan: a. Receive and file the Five-year Financial Plan. b. Provide direction to staff regarding the issues raised in connection with the Five-year Financial Plan and future priorities. BACKGROUND: The Comprehensive Annual Financial Report (CAFR) is prepared by the City's Finance Department in conformity with generally accepted accounting principles and Governmental Accounting Standards Board (GASB) requirements. It is audited by the independent public accounting firm of White Nelson Diehl Evans LLP. The CAFR provides a point in time snapshot of financial information with some historical trend information in the statistical section. As reported in the CAFR, General Fund revenues were $8,169,676 or 7.2% above budget while expenses were $4,515,082 or 4.4% below budget. After Financial Update Report I page 1 accounting for operating transfers for capital projects, the General Fund had a positive net change in fund balance (surplus) of $10,656,510. The City has a great opportunity to use these one-time funds to achieve several goals and fund important projects as guided by the financial and budget policy. The City Council adopted the FY 2016-17 budget on June 21, 2016. The total budget was $144,636,017 including the General Fund budget of $117,392,897. This report reviews the status of FY 2016-17 General Fund revenues, expenditures, and other budget issues. The last five-year financial plan was presented to Council on February 16, 2016. That plan forecasted a deficit of $3,557,041 in year five. Since that time, FY 15-16 was completed and a balanced budget for FY 16-17 was adopted. This report will recap the major assumptions and results of the updated five-year financial plan. ANALYSIS & FOLLOW UP ITEMS FROM THE FEBRUARY 14, 2017 STUDY SESSION: Please see the individual reports and their attachments. During the February 14, 2017 study session on this report, the following items were requested. The status of each is indicated below: 1. Can the City's unfunded pension liability be allocated between active employees and retirees? This question was forwarded to the City's CalPERS actuary on February 24, 2017. Follow up information will be provided to Council members when a response is received. 2. Send a copy of the reserves study to the Council members: A copy of the reserves study was sent to Council members on February 23, 2017. 3. Apply CPI to the $55 million reserve goal: The $55 million goal will be increased by CPI next year assuming the recommendation in this report regarding the FY 15-16 surplus is approved. If the CPI remains at the current annual rate of 2.1% for the Los Angeles -Riverside -Orange County area, the new goal would be $56,155,000. 4. Analyze the cause of the Self -Insurance fund negative balance: Information regarding the fund balance was provided to Council on February 24, 2017. 5. Clarify the origins of the City's Fire Side Fund at CalPERS: Information regarding this fund and options for the future will be discussed in the Council's March 14 Special Meeting and be referred to the Finance & Pension Advisory Committee for further study. 6. Clarify reasons for the less than 50% of the budget remaining in Development Services: Attachment 2E indicated that the Administration Division of Development services had 44.63% of its budget remaining. Departments are allowed to transfer funds among their divisions as needed during the year. The total combined budget remaining for all four divisions of Development Services is 55.56% and when the recommended contingency funds are added, the budget remaining will be 56.87%. 7. Clarify the allocation of auto sales tax and on-line sales tax: Auto sales taxes are allocated to city in which the auto dealer is located. Auto sales tax on private party sales in the County are collected by the DMV and allocated to the Orange County sales tax pool. The City received 8.6% of the pool (compared to the City's 3.7% of the County population) in the most recent quarter reported. On-line retail sales tax is generally allocated to the Orange County sales tax pool. However, if the ordered item is delivered to a local store for pickup, the City receives the sales tax. 8. Update the schedule of projected retirement rates for EE cost sharing: this will require additional time and be provided in a separate report to Council members. Financial Update Report I page 2 Regarding recommendations for Fairview Park funding, several projects proposed within Fairview Park including the parking lot lighting, storm drain improvements at south edge of the park, construction of bicycle trails, and cul-de-sac at Pacific Avenue are under review by the City Attorney's office regarding their implementation process relative to the impact of Measure AA on these projects. Staff, in response to concerns received from certain Council members regarding the parking lot lighting project, has proceeded with the plans to rehabilitate the parking lot without this element. Staff requests Council direction on de -obligation of funds for this project in the amount of $650,000, and allocation of this for other Master Plan improvements in Fairview Park. In addition, this report recommends $350,000 of the FY 15-16 general fund surplus be added to these funds for a total of $1,000,000 to be designated into the new Fairview Park program code 20115 and be earmarked for the Fairview Park master plan implementation, habitat restoration and park protection. An alternative approach would be to set up a separate fund to account for these projects. KiPL49>!v14Li1N3 The June 30, 2016 CAFR fairly and accurately represents the City's fiscal year financial results and financial position as of June 30, 2016. The City has received a "clean" audit report as there have been no management letter comments requiring management action or adjustments related to the CAFR. The Finance Advisory Committee plans to review the CAFR on January 31, 2017. The City's FY 2016-17 actual revenues and expenses in total are on track with budget expectations. Including all recommended adjustments, the revised General Fund budget is $127,179,060 including carryovers. The review and approval of the recommended budget changes will update the City's budget to reflect the current revenue expectations and expenditure requirements that help enable the City to continue providing the community with quality programs and services. This updated Five-year Financial Plan is based on realistic and conservative revenues and expense assumptions. It serves as a foundation for the annual budget process as well as an opportunity for policy discussions. Stephen Dunivent Thomas R. Hatch Interim Finance Director City Manager Attachments: ort on the June 30. 2016 CAFR 2. FY 16-17 Mid -year Budget Report 3. Updated Five-year Financial Plan Financial Update Report I page 3 ATTACHMENTI SUBJECT: JUNE 30, 2016 COMPREHENSIVE ANNUAL FINANCIAL REPORT DATE: January 31, 2017 FROM: FINANCE DEPARTMENT FOR FURTHER INFORMATION CONTACT: STEPHEN DUNIVENT 714.754.5243 RECOMMENDED ACTIONS: 1. Receive and file the FY 15-16 Comprehensive Annual Financial Report 2. Approve FY 16-17 budget adjustments for the carryover of certain FY 15-16 encumbrances and other items as detailed in Attachment 1 B. 3. Approve recommended uses of the FY 15-16 net change in General Fund balance (surplus) and authorize the City Manager to make the necessary budget adjustments related to those recommendations as detailed in Attachment 1 C. BACKGROUND: The Comprehensive Annual Financial Report (CAFR) is prepared by the City's Finance Department in conformity with generally accepted accounting principles and Governmental Accounting Standards Board (GASB) requirements. It is audited by the independent public accounting firm of White Nelson Diehl Evans LLP. It contains a variety of statements including: • Management's discussion and analysis of key financial highlights and issues • Statement of net position (difference between assets and liabilities) compared to prior year • Balance sheets for all funds (some combined) • Statement of revenues, expenses and changes in fund balances (showing any surplus/deficit) for the year • Comprehensive notes to the financial statements • Supplemental information on pension plans • Comparison of budget to actual revenues by major category and expenses by program • A Statistical Section with ten-year trends in expenses, revenues, general fund balance and reserves, property tax and assessed values, debt and demographic information The CAFR provides a point in time snapshot of financial information with some historical trend information in the statistical section. 3. CAFR June 30, 2016 1 page 1 ANALYSIS: This report will focus on the FY 15-16 CAFR reporting of the General Fund. The CAFR is referenced as Attachment A. Due to the size of this report, it is being made available on line at the City's website: http://www.costamesaca.gov/modules/showdocument aspx?documentid=24501 Copies of the CAFR pages referenced in this agenda report are included as attachments. A reference copy is also available at the City Hall in the City Clerk's office. A reference copy will also be available at the City Council meeting. As reported in the CAFR, revenues were $8,169,676 or 7.2% above budget and expenses were $4,515,082 or 4.4% below budget. After accounting for operating transfers for capital projects, the General Fund had a positive net change in fund balance (surplus) of $10,656,510. (See CAFR pages 26, 100 and 101.) Details on the causes of these variances follow. Revenues: The positive revenue variance of $8,169,676 resulted mainly from four items: • Sales tax was $57,593,561; $4,731,561 or 9% over budget primarily due to the one-time true up payment for the final year of the State's triple flip program. • Property taxes were $25,998,070; $1,324,470 or 5.4% over budget. • Investment income of $1,199,813 was $1,019,013 over budget due mainly to the GASB 31 adjustment of investments to fair market value. • Transient Occupancy Tax of $8,622,505 was $515,005 or 6.4% over budget. Expenses: The positive expenditure variance of $4,515,082 resulted mainly from the following items: Employee costs were $2,511,577 or 3.2% under budget due to vacant positions partially offset by increases in overtime and use of contract and part-time employees. Operations and maintenance costs were $1,164,171 or 3.2% under budget mainly due to under budget amounts for water in parks and parkways, expenses on streets alleys and sidewalks and internal service charges for maintenance on vehicles and equipment. Debt: The City has only three outstanding bond debt obligations. These are being paid off according to the established debt repayment schedules. (See pages 60-63.) The Governmental Accounting Standards Board (GASB) Statements 68 and 71 took effect a year ago and required significant changes to the reporting of pension plans and their related debt. These changes include: • The net pension liability amount of $231,897,604 is now included in the City's government -wide balance sheet amounts. Previously this amount was disclosed in the footnotes. The government -wide net position remains positive at $86,149,353. (See page 18.) • Footnote 13 (page 67) regarding the defined benefit pension plan has been substantially expanded. • Required supplementary information on pensions has been added. (See pages 89-97.) • The supplemental schedules include the beginning year of what will become a ten-year history of pension liability and contributions for each plan (Fire, Miscellaneous and Police). Operating transfers for capital & debt service: Transfers out of the general fund totaled $12,452,435 for the following purposes: • $8,827,536 for capital improvements per the Capital Asset Needs Ordinance. • $ 106,583 operating subsidy for the Supplemental Law Enforcement Services Fund. • $2,490,000 principal payments on debt • $1,028,316 interest payments on debt CAFR June 30, 20161 page 2 Fund Balance and Reserves: Total General Fund balance and reserves reported in the last (June 30, 2016) CAFR are $64,472,461. (See page 66.) The March 3, 2015 Reserves Study set a goal of $55,000,000 for fund balance and reserves to be achieved by annual allocations of up to $1,500,000 per year in years where there is a surplus. When the $55,000,000 goal is reached, it would be adjusted annually thereafter by a CPI factor. The current amount above $55,000,000 is available for allocation as discussed in the following section. Surplus/Deficit: The General Fund net change in fund balance (surplus) is $10,656,510. The City has a great opportunity to use these one-time funds to achieve several goals and fund important projects as guided by the financial and budget policy. The recommendations for the use of the surplus are: $ 1,184,049 Use to achieve the City's $55,000,000 general fund reserve goal 1,479,308 Fund carry over items from prior year 1,000,000 Help reduce the self-insurance fund negative balance 500,000 Reduce pension debt: additional payment to the CalPERS Fire Side Fund 1,993,153 Next Gen 800 MHz public safety comm. system final installment ($5.3 m total cost) 1,500,000 Building permit replacement system --Development Services 1,100,000 HR/Payroll/Finance replacement system (estimated total need is $2,500,000) 1,000,000 Arlington bioswale project (est. additional cost before bids) 350,000 Fairview Park master plan implementation, habitat restoration & park protection 350,000 Fire station improvements: exhaust extraction system, call alerting system 200,000 Police Station improvements: Safety and maintenance issues $ 10,656,510 Total The Finance Advisory Committee (FAC) reviewed an early version of the recommended use of the surplus on September 27, 2016. They recommended more funds to pay down the Fire side fund, more funds to the Lions Park projects to reduce debt and less funds to other capital projects. Both the staff recommendations above and the FAC recommendations are listed on Attachment 1 C. CONCLUSIONS: The June 30, 2016 CAFR fairly and accurately represents the City's fiscal year financial results and financial position as of June 30, 2016. The City has received a "clean" audit report as there have been no management letter comments requiring adjustments to the CAFR information. The resulting surplus gives the City a great opportunity to achieve several goals and fund important projects. RECOMMENDATIONS: It is recommended that the Council receive and file this report as well as approve the other recommended actions listed on page 1 of this report. Attachments: 1A. Comprehensive Annual Financial Report June 30, 2016 available on-line at: Selected CAFR pages including 18, 26, 60-63, 66, 67, 100 & 101. 1 B. List of Prior Year Carry Over Purchase Orders and other carry over items 1 C. Recommended use of FY 15-16 net change in General Fund balance (surplus) 5. CAFR June 30, 2016 1 page 3 Attachment 1A The Comprehensive Annual Financial Report (CAFR) June 30, 2016 is available on-line at: http://www.costamesaca.gov/modules/showdocument aspx?documentid=24501 Selected pages from the CAFR including 18, 26, 60-63, 66, 67, 100 & 101 are attached for this agenda report. 0 CAFR June 30, 2016 1 page 4 CITY OF COSTA MESA, CALIFORNIA Statement of Net Position Tune 30, 2016 (With Comparative Data for Prior Year) See accompanying notes to the basic financial statements. 18 7 Governmental Activities 2016 2015 Assets: Cash and investments (note 2) $ 99,144,510 $ 95,917,557 Cash and investments with fiscal agent (note 2) 4,356,813 4,334,210 Due from other governments 21,827,516 10,837,893 Accounts receivable 572,909 463,081 Interest receivable 198,019 155,162 Loans receivable 7,012,380 7,339,775 Rent receivable 234,805 228,825 Inventories 154,185 134,042 Prepaid items 69,497 48,724 Capital assets (note 6): Land 34,213,106 34,213,106 Land rights related to streets 29,821,224 29,821,224 Construction in progress 3,589,540 6,826,025 Other capital assets, net of accumulated depreciation 166,659,783 162,963,893 Total assets 367,854,287 353,283,517 Deferred outflows of resources: Deferred outflows on pensions 17,587,718 15,466,821 Liabilities: Accounts payable 5,405,234 3,373,696 Accrued liabilities 1,772,194 1,755,860 Accrued interest payable 268,488 295,920 Retentions payable 584,544 894,674 Deposits payable 765,925 727,370 Long-term liabilities; Portion due within one year: Claims payable (notes 7, 9 and 19) 1,154,274 2,233,348 Bonds payable (notes 7 and 8) 2,755,000 2,650,000 Employee leave benefits payable (notes 7 and 9) 3,000,000 3,200,000 Portion due beyond one year: Claims payable (notes 7, 9 and 19) 9,439,466 8,646,136 Bonds payable (notes 7 and 8) 21,620,000 24,375,000 Employee leave benefits payable (notes 7 and 9) 1,107,428 836,221 Net OPEB obligation (notes 7, 9 and 16) 3,946,563 3,622,775 Police retirement 1% supplemental (notes 7, 9 and 14) 2,766,672 2,166,823 Net pension liability (note 13c) 231,897,604 214,555,366 Total liabilities 286,483,392 269,333,189 Deferred inflows of resources: Deferred inflows on pensions 12,809,260 32,014,338 Net position: Net investment in capital assets 216,195,466 211,133,458 Restricted for: Protection of persons and property 1,022,546 552,573 Community programs 12,793,475 8,892,751 Public services 15,495,090 17,660,289 Unrestricted (159,357,224) (170,836,260) Total net position $ 86,149,353 67,402,811 See accompanying notes to the basic financial statements. 18 7 CITY OF COSTA MESA, CALIFORNIA Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances For the fiscal year ended June 30, 2016 (With Comparative Data for Prior Year) Revenues: Taxes Licenses and permits Fines and forfeitures Intergovernmental Charges for services Rental Investment income Miscellaneous Total revenues Expenditures: Current: General govermnent Protection of persons and property Community programs Public services Debt service: Principal Interest and fiscal charges Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in (note 5) Transfers out (note 5) Total other financing sources (uses) Net change in fund balances Fund balances (deficit) at beginning of year Fund balances at end of year General Revenue Housing HOME Authority Program $ 98,248,059 162,275 2,983,081 - 1,530,046 - 10,448,829 - 158,765 3,634,255 - - 2,890,731 343,791 - 1,199,813 10,479 1,123 1,067,367 405,715 160,205 122,002,181 922,260 320,093 25,102,067 61,698,933 - 6,955,472 - 294,729 5,537,269 686,192 - 99,293,741 686,192 294,729 22,708,440 236,068 25,364 400,505 (12,452,435) (12,051,930) 10,656,510 236,068 25,364 53,815,951 912,240 71,890 $ 64,472,461 1,148,308 97,254 See accompanying notes to the basic financial statements. 26 8. CITY OF COSTA MESA, CALIFORNIA Notes to the Basic Financial Statements Year ended June 30, 2016 (7) Long -Tenn Liabilities A summary of changes in long-term liabilities for the year ended June 30, 2016 is as follows: Balance at July 1, 2015 As Restated Additions Bonds payable (Note 8): Public Financing Authority 2003 Refunding Certificates of Participation $4,545,000 Public Financing Authority 2006 Revenue Refunding Bonds 1,285,000 Public Financing Authority 2007 Certificates of Participation 21,195.000 Portion Portion Due Due Within Beyond Balance at One One Reductions June 30, 2016 Year Year (1,070,000) 3,475,000 1,110,000 2,365,000 (160,000) 1,125,000 165,000 960,000 (1,420.000) 19.775.000 1.480,000 18.295 000 Total bonds payable 27,025,000 - (2.650,000) 24,375,000 2.755,000 21,620,000 Other liabilities (Note 9) Claims payable 10,879,484 868,530 (7,154,274) 10,593,740 1,154,274 9,439,466 Employee leave benefits payable 4,036,221 3,567,170 (3,495,963) 4,107,428 3,000,000 1,107,428 Net OPEB obligation 3,622,775 2,721,185 (2,397,397) 3,946,563 - 3,946,563 Police Retirement 1% Supplemental 1897.028 80.931 (211,287) 2,766,672 2.766,672 Total other liabilities 21,435,508 7.237,816 (7.258.921) 21.414,403 4,154,274 17.260.129 Total%48.460508 2. 37.816 908 921 45 9 4Q.z .9 38.880.129 H CITY OF COSTA MESA, CALIFORNIA Notes to the Basic Financial Statements Year ended June 30, 2016 8) Bonds Payable Costa Mesa Public Financine Authoritv Bonds 2007 Certificates of Participation On January 18, 2007, the Costa Mesa Public Financing Authority issued $29,960,000 of 2007 Certificates of Participation. The Certificates are to provide funding for the construction and equipping of certain improvements to the Civic Center complex particularly the expansion of the police facility. The Certificates mature from October 1, 2007 through October 1, 2026 in annual installments ranging from $745,000 to $2,180,000. Interest is payable semi-annually on April 1 and October 1 of each year, commencing on April 1, 2007 at a rate ranging from 3.75% to 4.30%. There is a reserve requirement of $2,297,204 on the 2007 Certificate of Participation. The City has $2,297,551 on reserve with the fiscal agent at June 30, 2016. The principal balance outstanding at June 30, 2016 is $19,775,000. 2006 Revenue Refunding Bonds On June 1, 2006, Costa Mesa Public Financing Authority issued $2,365,000 of Revenue Refunding Bonds, Series 2006A, to advance refund the outstanding portion of the $3,225,000 of the 1991 Lease Revenue Bonds issued on November 1, 1991. The bonds were issued to provide monies to enable the Authority to acquire the City of Costa Mesa Community Facilities District 91-1 (Plaza Tower Public Improvements) 1991 Special Tax Bonds, issued under the Mello -Roos Community Facilities Act of 1982. The $2,365,000 Revenue Refunding Bonds, which consists of $1,955,000 of serial bonds and $410,000 of term bonds. The serial bonds mature from August 1, 2007 through August 1, 2019 in annual installments ranging from $120,000 to $190,000. The term bonds mature from August 1, 2020 through August 1, 2021 in annual installments ranging from $200,000 to $210,000. Interest is payable semi-annually on February I and August 1 of each year, commencing on February 1, 2007 at rates ranging from 3.85% to 5.10%. There is a reserve requirement of $224,755 on the 2006 Revenue Refimding Bonds. The City has $224,755 on reserve with the fiscal agent at June 30, 2016. The principal balance outstanding at June 30, 2016 is $1,125,000. The bonds are secured by special tax levied within CFD 91-1 Plaza Tower Public Improvements. The special taxes are levied and collected for debt service on the bonds are required to be remitted to the fiscal agent for the bonds within ten days of receipt. The County remitted taxes on December 21, 2015 and April 22, 2016; the City remitted payment 18 and 7 days later, respectively. 61 ®► CITY OF COSTA MESA, CALIFORNIA Notes to the Basic Financial Statements Year ended June 30, 2016 (8) Bonds Payable, (Continued) Costa Mesa Public Financing Authority Bonds (Continued 2003 Refunding Certificates of Participation On October 1, 2003, the Costa Mesa Public Financing Authority issued a $14,340,000 refunding Certificates of Participation (COP), Series 2003 to refund the $18,970,000 Refunding Revenue Bonds, Series 1993A, to advance refund $640,000 of outstanding 1966 Bonds and $16,430,000 of outstanding 1988 Lease Revenue Bonds. The 1966 Bonds were issued to finance construction of the Municipal Center and the 1988 Lease Revenue Bonds were issued to finance the acquisition of right-of-way property on Victoria Street. The certificates issued start maturing on 2004 to 2018 in semi-annual installments ranging from $805,000 to $1,210,000. Interest is payable on April 1 and October 1, commencing on April 1, 2004 at rates ranging from 2.0% to 4.2%. Certificates maturing on or after October 1, 2014 are subject to optional redemption, in whole or in part from among maturities as selected by the Authority on October 1, 2013. The certificates are subject to mandatory redemption on any date from the net proceeds deposited in the prepayment fund. The amount required for the bond reserve for the 2003 Refunding Certificate of Participation is $1,273,442. The City has $1,273,442 on reserve with the fiscal agent at June 30, 2016. The principal balance outstanding at June 30, 2016 is $3,475,000. 62 CITY OF COSTA MESA, CALIFORNIA Notes to the Basic Financial Statements Year ended June 30, 2016 (8) Bonds Payable, (Continued) Costa Mesa Public Financing Authority Bonds (Continued) The annual debt service requirements for the Public Financing Authority Bonds as of June 30, 2016 are as follows: 63 12 2003 2007 Year 2006 Refunding Certificates Certificates Ending Refunding Revenue Of Participation of Participation .Tune 30 Principal Interest Principal Interest Principal Interest 2017 $ 165,000 52,439 1,110,000 140,450 1,480,000 787,604 2018 175,000 44,086 1,155,000 89,375 1,530,000 727,404 2019 185,000 35,130 1,210,000 3,250 1,590,000 665,004 2020 190,000 25,708 - - 1,640,000 600,404 2021 200,000 15,810 - - 1,710,000 533,404 2022 210,000 5,355 - - 1,775,000 462,594 2023 - - - 1,850,000 387,829 2024 - - - - 1,925,000 309,248 2025 - - - - 2,005,000 226,216 2026 - - - - 2,090,000 138.675 2027 - - - - 2,180,000 46,870 Total $1,125,000 178,528 3,475.000 260,075 19,775,000 4,885,252 63 12 CITY OF COSTA MESA, CALIFORNIA Notes to the Basic Financial Statements Year ended June 30, 2016 (11) Fund Balances Fund balance consisted of the following at June 30, 2016: Major Major Special Revenue Capital Projects Non - Housing HOME Park Capital Measure Major General Authority Proffram Develoument Improvements "M2" Funds Nons endable: Prepaid items S 64,885 Inventories 45,480 Advance to other fiords 2,375.720 Restricted for: Protection of persons and property - - - 791,187 Community programs 1,148,308 97,254 1556,775 147,286 Public services (1) 1,001425 9,244,035 Debt service 5,321,813 Committed for: Declared disasters 2 14 125,000 Self insurance (3) 2,000,000 for: -Assigned Compensated absences 4.107,428 Police Retirement 1% Supplemental - 2,766,672 OPEB 3,946,563 Economics reserves 3,000,000 Protection of persons and property - - - - - 354,346 Public services _ 18,135,404 5,248,630 32.040.713 (139_064) -Unassigned Total Fund Balance 4 2 1 148 308 9 254 L556.775 5 1B135 404 1.002425 21) 8 1. Restricted fund balances in the Public Services category consist of fund balances in the Special Gas Tax, Air Quality Improvement, and Measure "M2" Construction funds. Revenues received in these funds are legally restricted for specific purposes, such as transportation related capital projects. 2. The fund balance committed for declared disasters was approved through Ordinance No. 2-206 to provide required funding as a result of a declared emergency by the City Council for an unanticipated but urgent event threatening the pubic health, safety and welfare of the City. Any fund balance utilized has to be replenished. 3. The fund balance committed for self insurance was codified in the Ordinance No. 96-14 to provide a self-insurance reserve to be used to pay actual losses not covered by insurance policies or insurance pools. Any fund balance utilized has to be replenished. The following governmental fund had a deficit at June 30, 2016: Nonmajor Fund: Special Revenue Fund: Proposition 172 Fund .: (139,064) 13. CITY OF COSTA MESA, CALIFORNIA Notes to the Basic Financial Statements Year ended June 30, 2016 (12) Property Tax Calendar Property tax revenues are reported on a modified accrual basis. Accordingly, they are recognized in the fiscal year for which the taxes have been levied, provided this accrual meets the available criteria. "Available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The County of Orange collects property taxes for the City tax liens attached annually as of 12:01 a.m. on the first day in January preceding the fiscal year for which the taxes are levied. The tax levy covers the fiscal period July 1st to June 30th. All secured personal property taxes and one-half of the taxes on real property are due November 1st. The second installment is due February 1st. All taxes are delinquent if not paid as of December 10th and April 10th, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent if not paid as of August 31st. (13) Defined Benefit Pension Plans (a) General Information about the Pension Plans Plan Descriptions All qualified permanent and probationary employees are eligible to participate in the City's separate Miscellaneous and Police Safety Plans, agent multiple -employer defined benefit pension plans and the Fire Safety cost sharing plans, administered by the California Public Employees' Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a toll description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of fill time employment. Members with five years of total service are eligible to retire at age 50 to 62 with statutorily reduced benefits. For employees hired into a plan with the 1.5% at 65 formula, eligibility for service retirement is age 55 with at least 5 years of services. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 52 with at least 5 years of service. All members are eligible for non -duty disability benefits after 5 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. Safety members can receive a special death benefit if the member dies while actively employed and the death is job-related. Fire members may receive the alternate death benefit in lieu of the Basic Death Benefit or the 1957 Survivor Benefit if the member dies while actively employed and has at least 20 years of total CalPERS service. The cost of living adjustments for each plan are applied as specified by the Public Employees' Retirement Law. 67 CITY OF COSTA MESA, CALIFORNIA General Fund Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the fiscal year ended June 30, 2016 (With Comparative Data for Prior Year) Intergovernmental Motor vehicle in -lieu 9,615,500 9,615,500 9,982,948 Variance with 9,481,340 Grants and other reimbursements 997,300 1,081,205 465,881 Final Budget 1,747,795 Total intergovernmental Original Final 10,448,829 Positive Prior Year Charges for services Budget Budget Actual (Negative) Actual Revenues: 2,963,900 2,963,900 2,890,731 (73,169) 2,932,280 Taxes: 180,800 180,800 1,199,813 1,019,013 1,463,378 Sales tax $ 52,862,000 52,862,000 57,593,561 4,731,561 51,115,064 Property tax 24,673,600 24,673,600 25,998,070 1,324,470 24,058,820 Transient occupancy tax 8,107,500 8,107,500 8,622,505 515,005 7,995,154 Franchise tax 5,039,600 5,039,600 5,060,402 20,802 4,885,926 Business license tax 952,100 952,100 973,521 21,421 954,408 Total taxes 91,634,800 91,634,800 98,248,059 6,613,259 89 009,372 Licenses and permits 2,889,500 2,889,500 2,983,081 93,581 2,313,296 Fines and forfeitures 1,190,000 1,190,000 1,530,046 340,046 1204,868 Intergovernmental Motor vehicle in -lieu 9,615,500 9,615,500 9,982,948 367,448 9,481,340 Grants and other reimbursements 997,300 1,081,205 465,881 (615,324) 1,747,795 Total intergovernmental 10,612,800 10,696,705 10,448,829 (247,876) 11,229,135 Charges for services 3,460,800 3,562,300 3,634,255 71,955 3,574,264 Rental 2,963,900 2,963,900 2,890,731 (73,169) 2,932,280 Investment income 180,800 180,800 1,199,813 1,019,013 1,463,378 Miscellaneous Total revenues Expenditures: Current: General government: City council Chief executive officer: Administration City clerk Personnel services Risk management services City attorney Financial services Information technology Development services administration Facilities and equipment maintenance Non -departmental Total general government 714,500 714,500 1,067,367 352,867 1,260,202 113,647,100 113,832,505 122,002,181 8,169,676 112,986,795 378,408 378,408 364,710 13,698 427,536 3,660,088 3,461,248 3,482,382 (21,134) 3,605,802 637,221 750,810 696,121 54,689 639,056 1,210,708 1,211,618 1,425,178 (213,560) 1,213,900 2,364,251 2,364,251 2,457,798 (93,547) 2,524,148 1,000,000 1,000,000 1,223,132 (223,132) 1,305,124 2,843,051 2,874,780 2,608,271 266,509 2,432,791 3,328,366 3,482,179 2,684,491 797,688 2,637,899 645,891 668,491 641,663 26,828 642,822 10,455,550 (1,523,011) 10,822,002 (3,584,891) 9,339,858 178,463 1,482,144 (3,763,354) 8,824,341 445,807 25,000,523 23,428,896 25,102,067 (1,673,171) 24,699,226 (Continued) 100 15. CITY OF COSTA MESA, CALIFORNIA (Continued) General Fund 60,249 Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual For the fiscal year ended June 30, 2016 2,317,754 (With Comparative Data for Prior Year) 760,922 1,602,499 Variance with 2,808,660 Final Budget Original Final Positive Prior Year Budget Budget Actual (Negative) Actual Protection of persons and property: Police protection 41,016,561 41,717,837 36,750,805 4,967,032 35,572,020 Fire protection 20,379,286 21,255,797 22,493,950 (1,238,153) 20,854,224 Building and safety 2,579,340 2,724,910 2,454,178 270,732 2,111,839 Total protection of persons and property Community programs: Community recreation Planning Total community programs Public services: Administration Engineering Transportation Total public services Total expenditures 63,975,187 65,698,544 61,698,933 3,999,611 58,538,083 4,958,298 5,171,879 4,700,459 471,420 4,538,488 2319,163 2,813,767 2,255,013 558,754 1,701.056 7,277,461 7,985,646 6,955,472 1,030,174 6,239,544 1,509,463 1,569,323 1,509,074 60,249 1,472,963 2,034,695 2,317,754 1,556,832 760,922 1,602,499 2,650,813 2,808,660 2,471,363 337,297 2,489,841 6,194,971 6,695,737 5,537,269 1,158,468 5,565,303 102,4481142 103,808,823 99,293,741 4,515,082 95,042,156 Excess (deficiency) of revenues over (under) expendihtres 11,198,958 10,023,682 22,708,440 12,684,758 17,944,639 Other financing sources (uses): Transfers in 400,000 400,000 400,505 505 201 Transfers out (9,016,1401 (9,016,140) (12,452,435) (3,436,295) (14,329,215) Total other financing sources (uses) (8,616,140) (8,616,140) (12,051,930) (3,435,790) (14,329,014) Net change in fund balance Fund balance at beginning of year Fund balance at end of year 2,582,818 1,407,542 10,656,510 9,248,968 3,615,625 53,815,951 53,815,951 53,815,951 50,200,326 $ 56.398.769 55.223.493 64.472.461 9.248.968 53.815.951 ATTACHMENT 113 FY 16-17 GENERAL FUND CARRYOVER PURCHASE ORDERS POP PO REM Vendor# Vendor Name Due Date New POR PO REF# Account Fund 0, Program PO Balance 10730 C01006 17501 Ouickstart Intelligence 05/20/2016 1700010730 003006 505504 101 14600 50710 14,555.00 Notes R/O Req by A/P emai108/30/16 1600009080 CDDW6 22306 The Omega Group lnc/TriTech Software Systems 08/15/2015 1700009080 CM006 510201 101 16100 WWI 34,037.50 PRID req by dept inmmplete 10837 W1135 1287 Exterior Products 07/04/2016 1700010837 C01135 510206 101 111W 51050 2,492.40 project R/O req by A/P Email 16DOW9688 CDOW7 3257 Municipal Code Corporation 06/28/2015 170OW9688 CW8D7 510206 101 11206 SD420 1,706.03 R/O due to Web Hosting and data 01/31/17 10639 000844 21554 Culver Newlin Inc 04/30/2016 1700010639 000844 510301 101 11100 50001 242.05 R/O req by A/P email 07/27/16 10691 C00841 8411 Mmy Lite Inc 95/06/2016 17W010691 W0841 510301 101 14300 40231 2,078.41 R/O req due to late invoke received 09/22/16 10696 000940 21554 Culver Newlin Inc 05/30/2016 1706030696 C00940 510301 101 18400 50255 819.72 R/O Req by A/P email 07/27/16 10790 C01050 21554 Culver Newlin Inc 06/15/2016 1700010790 CO3050 510301 101 16300 10220 3,506.72 R/O due to late delivery& Installation of furniture 10769 C01018 4822 Tessco 06/01/2016 1700010769 C01018 510304 101 15400 51020 329.95 R/O req by dept email on 07/25/16 10648 CW862 22280 Keystone Uniforms OC 04/30/2016 1700010648 CW862 510305 101 18306 20350 823.49 R/O req by Dept for back ordered mdse 10758 C00989 15241 Tow Industries 06/01/2016 1700010758 CM989 510305 101 162W 10210 176.25 R/0 req by A/P email late invoice received. 10611 C00822 23962 BPS Tactical Inc 03/31/2015 17OW10611 000822 510401 101 15406 10120 979.80 R/O Req by dept back order not reed 10366 C00418 2297 Galls Inc 11/30/2015 170W10366 00418 510403 101 18300 20350 3,731.83 R/O req by dept 09/08/16 10848 C01007 22280 Keystone Uniforms OC G6/30/2016 1700030848 001007 510403 101 18400 50255 20,000.00 R/O Req by Dept email 7/26/16 10848 001007 22280 Keystone Uniforms OC 06/30/2016 1706010848 CO3007 510403 101 18400 20350 2,000.00 RIO Req by Dept email 7/26/16 10752 C00983 986 Allstar Fire Equipment Inc 06/01/2016 1706010752 C00983 510404 101 16200 10210 11,967.05 R/O req by A/P email 07/21/16 for back ordered items. 10635 C00167 3051 Marathon Engineering Corp 04/30/2016 1706030635 C00167 510501 101 15400 10137 16,939.00 R/O req by dept. job incomplete 10675 C00310 21524 Municipal Emergency Services Inc 05/15/2016 1700010675 000310 510501 101 16200 10210 3,971.09 R/O Req by A/P email 07/26/16 10742 CWII0 12498 Unisource Worldwide Inc 05/31/2016 1700010742 CM11D 510501 101 15400 10136 1,857.49 R/O req by A/P email 07/26/16 10796 C91051 14519 Adamson Police Products 06/15/2016 170010796 C01051 510501 101 1620 10210 4,056.48 R/O req BY A/P email 08/24/16 10215 000125 22950 Merchants Building Maintenance LLC 06/30/2016 1700630215 000125 515801 101 19500 59010 3,147.50 R/O due to incomplete work for BY 15/16. 10427 C00374 15837 Pyxis Water Systems Inc 06/30/2016 1700010427 000374 525100 101 19500 40111 11,375.00 R/O req by A/P email 08/22/16 10737 C01030 24174 Federal Technology Solutions Inc 05/26/2016 1700010737 C01030 525101 101 14600 50710 18,469.10 R/O req by dept email, job incomplete. 10737 C01030 24174 Federal Technology Solutions Inc 05/23/2016 1700010737 001030 525101 101 14600 50710 663.96 R/O by dept 10515 C00127 22890 C3 Office Solutions LLC 06/30/2016 -10913 CM127 535401 101 14606 req email, job incomplete. 10494 CW686 3419 Oracle America Inc 06/30/2016 1700010494 50720 1,215.68 R/007/29/16- New PO due to wrong vendor number on PO 10515. CW686 525702 101 14600 50720 5,844.36 R/O required by quarterly payments in arrears 10812 001098 2617 International Business MachinesCorp 06/20/2016 170030812 063098 525702 101 14WO 50730 404.25 R/O req by dept email 06/08/16 10836 C01115 7215 American Public Works Association 07/01/2016 17DWIM36 C01115 525702 101 14600 50720 550.00 R/O req by A/P email 07/20/16 10843 W1159 18659 Faronics Technologies USA Inc 07/12/2016 17MOID843 001359 525702 IDI 14600 50710 1,568.00 R/O Req by A/P emaild 07/20/16 10650 C00864 15257 Steen Security Inc 04/30/2016 1700010650 C00864 525801 101 19500 50910 300. W R/O due to pending completion of work. 10849 C01153 21495 West Coast Fence 06/30/2016 1700010849 C01153 525801 101 19500 40111 420.00 R/O req by A/P email 09/20/16 10181 C00204 13616 Amtech Elevator Services 06/30/2016 1700010181 C00204 525803 101 195W 50910 1,929.60 R/O req by A/P email 07/05/16 10419 CW558 22520 DOLTraffic Inc 04/30/2016 1700010419 CW558 525803 101 193W 30241 3,998.00 R/O req by dept email 09/22/16 10666 C10666 12203 Team Econolite Traffic Engineering 05/30/2016 170W10666 C10666 525803 101 19306 30241 2,635.52 R/O req by A/P in person 08/31/16 3600608751 14065 Albert Grover & Associates Inc 06/30/2016 1700608751 525803 101 19306 30241 8,636.00 R/O due to contract and dated 06/30/18 1606009197 Anderson Penna Partners Inc. 170W09197 000285 525803 101 19300 30241 1,477.19 R/O req by dept- incomplete project. 10725 C00532 3955 Superior Pavement Markings Inc 06/30/2016 1706010725 00532 525900 101 19500 30243 63,673.35 P/O Due to contract end date G4/04/19 10200 CM181 8798 CNC Engineering Inc 06/30/2016 1700010206 C00181 530200 101 19300 30241 793.21 R/Odueto contract end date of O3/30/18. 10317 COM13 3007 LEA Associates Inc 03/16/2016 1706010317 COD413 530200 101 18200 20320 23,075.79 R/O due to contract term end 09/16/36 10343 C00429 22865 David Taussig & Associates Inc 06/30/2016 1706030343 COM29 530200 101 18206 20320 26,328.58 R/O req by dept email on 08/18/16 10353 COMBO 17582 Veronica Tam & Associates 06/30/2016 170W10353 OW480 530206 101 18206 20320 8,385.00 R/O due to contract and data 10/31/16 10407 OW556 12070 Cirygate Associates 12/30/2016 1700010407 000556 530206 101 161W 50001 2,107.37 RIO req by dept &A/P 08/25/16 10412 000562 17030 Civil Source 06/30/2016 1700010412 CW562 530200 101 19200 50002 70,829.50 R/O req by A/P email 0/07/16 1D598 C00236 22224 Pro Forma Advisors LLC 06/30/2016 1706010598 C00236 530200 101 19100 50002 27,132.80 R/O due to contract end date 08/31/17 10593 C00854 24402 Aviation System 06/30/2016 170010693 000854 530200 101 18200 20320 I1,500.W R/O due to contractterm end dated 04/05/17. 10772 COD565 5251 Morley Horn & Associates Inc 06/30/2016 1706010772 C00565 530200 101 18400 50257 19,517.0) R/O req by Dept mail on 08/12/16 10844 CW437 21505 Inter -west Consulting Group Inc 06/30/2016 1700010844 C00437 530200 101 19206 50032 148,640.00 R/O Req by AIR email 09/14/16 10847 003005 2795 Kabbara Engineering 06/30/2016 1700030847 001005 530201 101 193W W210 57,753.00 R/O req by A/P email W/24/16 30847 001005 2795 Kabbara Engineering 05/30/2016 1700630847 001005 530201 101 19300 30241 40,411.00 R/O req by A/P email06/24/16 160MIM60 00308 21354 AMEC Environment& Infrastructure Inc 06/30/2016 17W010060 00308 530200 101 19200 20510 2,277.50 R/O due to contract end dated 04/01/18. 10310 C00155 8858 Michael Balliet 06/30/2016 1700010310 060155 530201 101 19100 20230 11,696.75 R/O req by A/P email W/10/16 10446 C00363 21428 Lilley Planning Group 0/30/2016 1703010446 00363 530201 101 18200 20320 89,032.W R/O due to contract end date 06/30/17 10,181 C00656 24172 Landworks Development Services 06/30/2016 1700010481 COD666 530201 101 18200 20320 325.03 R/O due to end of contract data 12/31/16. 10653 C00866 4828 David Volt Design 06/30/2016 1706010653 CON66 530201 101 19500 50061 2,638.80 R/O due to contract end date 10/31/16 10828 C01127 22619 ECS Imaging Inc 06/30/2016 1700010828 C01127 530201 101 11200 50420 3,000.00 RIO req by A/P email 10839 CW273 22572 GCR Marketing Network 06/30/2016 1700010839 CW273 5302DI 101 11100 51050 3,WO.00 RIO due to Contract Term ending 04/08/19 Page 3 of 2 ATTACHMENT IB FY 16-17 GENERAL FUND CARRYOVER PURCHASE ORDERS PO PO REF# Vendor# Vendor Name Due Data Nev, POR PO REF# Account Fund Ong Program PO Balance Notes 10841 000924 24406 Protivlti Government Services Inc 07/11/2016 1700010841 CDD924 530201 101 14600 50720 178,W0.00 R/O Req by A/P Email 1600008265 C00426 16407 Moore lacofano Galtsman Inc 10/01/2015 1700008265 CDO426 530201 101 18200 20320 71,389.92 R/O due to contract term end 10/01/16. 1600009421 C00681 14491 Best Best &Krieger LLP 08/15/2015 1700009421 C00681 530301 101 18200 20320 26,725.51 R/O req by A/P email 08/11/16 1600009421 000681 14491 Best Best &Krieger LLP D8/15/2015 1700009421 CD0681 530301 101 11100 50001 9,060.30 R/0 req by A/P emai108/11/16 10149 000100 3961 Scott Fazekas & Associates Inc 06/30/2016 1700010149 C00100 530401 101 18300 2D410 7,091.94 R/O due to a change order requestfrom Dept. 10653 C00866 4828 David Volz Design 06/30/2016 1700010653 OW66 530402 101 19500 40111 4,974.00 R/O due to contract end date 10/31/15 10102 C00688 4503 West Group Payment Center 06/30/2016 1700010102 000688 530704 101 15400 10120 498.18 R/O due to contract end date of 08/14/16 10644 C00812 3288 National Construction Rentals Inc 06/30/2016 1700010644 000812 535400 101 19500 40111 1,653.12 R/O req by A/P email 09/07/16 10789 CD1076 15355 Sharp Electronics Corp Maint 06/30/2016 1700010789 C01076 535401 101 18400 20255 6,000.00 R/O Req by Dept email 07/26/16 Copier delivered 07/08/16 10792 @1077 15355 Sharp Electronics Corp Maint 06/30/2016 1700010792 C01077 535401 101 18100 50001 6,000.00 R/O Req by Dept email 08/18/16 Copier delivered 07/08/16 10354 000495 19172 De Lage Landen Financial Svs 06/30/2016 1700010354 CD0495 535401 101 15400 10131 3,3S5.74 R/O req by A/P email on 07/27/16 10513 000096 23241 Canon Financial Services Inc 06/30/2018 1700010513 CM096 535401 101 18200 20320 508.63 R/O req by A/P email 07/20/16 10785 001075 15355 Sharp Electronics Corp lease 06/30/2016 1700010785 003075 535401 101 18400 20350 2,146.60 R/O req by Dept email 08/18/36 Copier delivered 07/08/16 10785 001075 15355 Sharp Electronics Corp lease 06/30/2016 1700010785 C01075 535401 101 18400 50255 5,000.00 R/O req by Dept email 08/38/16 Copier delivered 07/08/16 10787 001075 15355 Sharp Electronics Corp lease 06/30/2016 1700010787 001075 535401 101 18300 20410 5,000.00 R/O Req by A/R email 08/03/16 Copier deliverd 07/08/16 10787 001075 15355 Sharp Electronics Corp lease 06/30/2016 1700010787 001075 535401 101 18400 50255 2,149.00 R/O Req by A/R email 08/03/16 Copier deliverd 07/08/16 10195 000094 23165 Keolis Transit Services LLC 08/13/2015 1700010195 000094 535403 101 14300 40231 3,099.53 R/O req by dept due to unpaid Invoices BY 15/16. 10738 C01032 24174 Federal Technology Solutions Inc 05/27/2016 1700010738 C01032 590801 101 14600 50710 2,450.00 R/O req by dept email, job Incomplete. 10738 C01032 24174 Federal Technology Solutions Inc 05/23/2016 1700010738 C01032 590801 101 14600 50710 87.20 R/O req by dept email, job incomplete. 10838 C01133 21707 Cellebrite USA Inc 07/04/2016 1700010838 C01133 590803 101 15400 10120 3,098.99 R/O req by A/P Email 1600009056 CD1014 22212 SunGard Public Sector Inc 10/15/2015 1700003056 C01014 590803 101 15400 50001 59,192.63 R/O req by Colleen due to unpaid invoices in contention. Total General Fund S 1,198,502.36 W Page 2 of 2 Attachment IC City of Costa Mesa Recommended Use of the FY 15-16 General Fund Surplus (Pre -Audit amounts) Revenues CAFR adjustment Expenses CAFR adjustment Surplus Surplus as a Y of revenues: Recommended Use: Reserves Finance Advisory General Fund Committee Recom, CAFR 64,472,46: Goal 55,000,00( Amount above goal 9,472,46] Carry over items: 1,700,000 Encumbrances 1,198,502 Security cameras--var. loc. 50,000 Clerk --Matrix Scanning 30,OOC Mercy House 5,806 Finance --finance consultant 23,000 IT Security Appliance 48,000 IT Strategic Plan 60,000 PD tasers 24,000 Dev. Svs: -Superior Point sign 40,000 Self Insurance Fund Debt Reduction Capital Next Gen 800 MHz IT Replacement fund/Permits Plus ERP replacement Arlington bioswale Lions Park Projects Fairview Park Fire Station improvements Police Station improvements Total Balance Recap table for agenda report: $ 122,397,193 5,493 111,527,152 219,024 10,656,510 8.7% To reach goal of $55,000,000 To reduce negative fund balance. Additional payment to Fire Side Fund To be funded in FY 17-18 budget mplement User fee? FAC: for Fire Station 1 Diesel exhaust extraction; Alert system replacement afety & maintenance issues Note: Finance Committee recommendations based on a preliminary estimate of the surplus. $ 1,184,049 Finance Advisory Staff Recomm. Committee Recom, I 1,184,049 1,500,000 1,479,308 1,479,308 1,000,000 1,000,000 500,000 1,700,000 1,993,153 ERP replacement system (estimated total need is $2,500,000) 1,500,000 888,989 1 1,100,000 Fairview Park master plan implementation, habitat restoration & park protection 1,000,000 Fire station improvements --Exhaust extraction, alerting system - 4,000,000 350,000 Total 350,000 200,000 S 10,656,510 9,068,297 To reach goal of $55,000,000 To reduce negative fund balance. Additional payment to Fire Side Fund To be funded in FY 17-18 budget mplement User fee? FAC: for Fire Station 1 Diesel exhaust extraction; Alert system replacement afety & maintenance issues Note: Finance Committee recommendations based on a preliminary estimate of the surplus. $ 1,184,049 Use to achieve the City's $55,000,000 general fund reserve goal 1,479,308 Fund carry over items from prior year 1,000,000 Help reduce the self-insurance fund negative balance 500,000 Reduce pension debt: additional payment to the CaIPERS Fire Side Fund 1,993,153 Next Gen 800 MHz public safety comm. system final installment 1,500,000 Permits Plus replacement system 1,100,000 ERP replacement system (estimated total need is $2,500,000) 1,000,000 Arlington bioswale project (est. additional cost before bids) 350,000 Fairview Park master plan implementation, habitat restoration & park protection 350,000 Fire station improvements --Exhaust extraction, alerting system 200,000 Police Station improvements --Safety & Maintenance issues $ 10,656,510 Total 2/3/2017 j " 1 SUBJECT: FISCAL YEAR 2016-17 MID -YEAR BUDGET REPORT DATE: February 14, 2017 — Revised on February 28, 2017 FROM: FINANCE DEPARTMENT Attachment 2 PRESENTATION BY: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR FOR FURTHER INFORMATION CONTACT: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR, (714) 754-5243 RECOMMENDED ACTIONS: Receive and file this report. Approve allocation of the General Fund contingency account as listed in Attachment 2F. Approve recommended FY 2016-17 budget adjustments as listed in Attachments 2G and 2H. 4. Approve the reallocation of $650,000 from the FY 13-14 Fairview Park parking lot lighting funds to the Fairview Park master plan implementation, habitat restoration and park protection project. BACKGROUND: The City Council adopted the FY 2016-17 budget on June 21, 2016. The total budget was $144,636,017 including the General Fund budget of $117,392,897. This report reviews the status of FY 2016-17 General Fund revenues, expenditures, and other budget issues. ANALYSIS: FY 2016-17 General Fund Revenues: Total year-to-date General Fund revenue by month is displayed in Attachment 2A. The graph displays last fiscal year actual revenue, current fiscal year-to-date budget allocated in the same proportion as last fiscal year actual (and modified for known variances) and year-to- date actual revenues by month. Through December 31, total General Fund revenue is $45,768,854. Revenues are on track with budget expectations and currently projected to be about 1 % over budget by fiscal year end. Attachment 2B provides budget and year-to-date actual revenue detail by category and account. 21 FY 16-17 Mid -Year Budget Report I Page 1 FY 2016-17 General Fund Expenditures Year-to-date General Fund expenditures by month are displayed in Attachment 2C. The graph displays last fiscal year actual expenditures, current fiscal year-to-date budget allocated in the same proportion as last fiscal year actual (and modified for known variances) and year-to-date actual expenditures by month. Attachment 2D displays employee costs in the same format. Through December 31, total General Fund expenditures are $62,183,047. A few accounts such as overtime, part-time labor, consulting and legal costs are above -budget due coverage for vacant positions and workload and are being offset by salary savings. Overall, total expenditures are expected to be at or just below budget by fiscal year end. Attachment 2E provides expenditure detail by division and major expenditure category. Allocation of General Fund Contingency Account: The current Non -Departmental section of the General Fund budget includes a $1,000,000 contingency appropriation. Attachment 2F lists a total of $860,023 in items that the City Manager has approved for use by the various departments and divisions listed. These appropriations will be transferred out of the General Fund Non -departmental contingency account and into the various General Fund department budgets for the purposes indicated on Attachment 2F. This will result in a revised balance of $139,977 in this account. General Fund Department Items and Other Adjustments: Attachment 2G summarizes the various recommended adjustments to the General Fund departments and some special funds. These adjustments include costs related to: • Parks & Community Services o The Recreation Manager provided a Mobile Recreation Program expense and funding report (Attachment 2J) summarizing one-time and first year operating costs that total $103,400 and recommended funding from reserves. However, this would be inconsistent with the City's financial policy on reserves. The van could be funded by contingency or the Equipment Replacement Fund 601. The operating costs will be absorbed by the department for the remainder of this fiscal year. o Add one full-time Fairview Park Administrator for improved protection/coordination of the park. This would be offset by the deletion of a vacant Code Enforcement Officer position. The general fund will absorb any cost differential of these positions. o Accept a $1,500 donation from the Costa Mesa Community Run for the youth sports program "Happy Feet Running Club". The funds would be used for club expenses including race entry fees, club apparel, nutritional snacks and other miscellaneous supplies. Approval of this item as part of Attachment 2G will constitute acceptance of this grant. • Information Technology Department o Re -budget prior year funds for web developer contract ($148,000) approved by Council in May 2016. This improve and develop the internal web platform and applications including the City's intranet functionality, geographical processing services, the ability to show business licenses, building permits and street conditions on maps, improve the parking permit system, I.T. help desk and other intranet features. 27. FY 16-17 Mid -Year Budget Report I Page 2 • Police Department o Recognize the Emergency Management Performance Grant (EMPG) funds ($17,794 compared to the $41,710 budgeted) to support new technology requirement and support emergency management. o California Board of State and Community Corrections (BSCC) carry over grant balance of $11,015 that will be used for the jail DVR replacement. o Re -budget FY 15-16 funds for a replacement live scan machine ($12,500). o Recognize $37,246 in AB109 realignment funds plus $48,580 in prior year AB109 funds for department equipment. • Fire Department o Add funding for an Emergency Medical Transportation program consultant, also approved by Council on February 7, 2017 ($100,000) to be offset by departmental revenue. • Development Services o Recognize additional expense and revenue for the parking/transportation consultant work at 3333 Susan St. ($24,870) • Public Services o Approve the following position exchanges in the Engineering and Transportation Services divisions that will assist the department with recruitment, retention and workload. The total additional cost will be absorbed by the department this fiscal year. • Delete 1 Public Right of Way Coordinator; Add 1 Construction Inspector ■ Delete 1 Engineering Tech III; Add 1 Associate Engineer • Delete 1 Senior Engineer; Add 1 Associate Engineer • Delete 1 Construction Inspector; Add 1 Chief Construction Inspector • Delete 1 Engineering Tech III; Add 1 Associate Engineer • Fund 205 -HOME Program o Reduce the current year HOME program grant by $92,238 consistent with the U.S. Department of Housing & Urban development notification. • Funds 222/223 -Housing Authority/Civic Center Barrio o Transfer $29,000 between these funds for the relocation of the Homeless Task Force Outreach team to temporary office accommodations. Other Funds Carry Over Adjustments: Attachment 2H summarizes recommended adjustments to various Special Funds. These adjustments are related to carry over purchase order balances. These adjustments total $9,374,214 and are funded by the individual special fund balances. Capital Improvement Program (CIP) Update: Attachment 21 is a CIP Status Report. It includes a general description of the current and prior year projects, their status, funding and unencumbered balance information, fiscal year in which the funds were budgeted and the amount of any grants or other outside funding. Staff recommends the following reallocation of CIP funds: • $650,000 from the FY 13-14 Fairview Park parking lot lighting funds reallocated for Fairview Park master plan implementation, habitat restoration and park protection project. When combined with the $350,000 from the FY 15-16 General Fund surplus, there will be a total of $1,000,000 for this purpose. A further discussion of the CIP is needed at a future study session. 23. FY 16-17 Mid -Year Budget Report I Page 3 CONCLUSION: The City's FY 2016-17 actual revenues and expenses in total are on track with budget expectations. Including all recommended adjustments, the revised General Fund budget is $127,179,060 including carryovers. The review and approval of the recommended budget changes will update the City's budget to reflect the current revenue expectations and expenditure requirements that help enable the City to continue providing the community with quality programs and services. Attachments: 2A. General Fund Revenue Bar Chart 2B. Budget to Actual Analysis—General Fund Revenues 2C. General Fund Total Expenditures Bar Chart 2D. General Fund Salary & Benefits Bar Chart 2E. Budget to Actual Analysis—General Fund Expenditures by Department/Division 2F. Allocation of General Fund Contingency Account 2G. Mid -year Budget Adjustment Detail—All Funds 2H. Special Fund Adjustments—Carry Over Purchase Orders 21. Capital Improvement Program Status Report 2J. Mobile Recreation Program Expense and Funding 2-q FY 16-17 Mid -Year Budget Report I Page 4 140 100 80 `o 60 40 20 (20) CITY OF COSTA MESA, CALIFORNIA Total General Fund Revenue Attachment 2A Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun ■FY 2015-16 Actual ■FY 2016-17 YTD Budget Projection 0 F 2016-17 Actual 267. Actual YTD Butl et Projection Actual YTD Amount Percentage I Amount Percent YTD (2,641,261) (4,236,706) (4,313,379) (76,673) 1.81% (1,672,118) 6^ I YTD 3,083,444 7,665,869 3,178,480 (4,487,389) -58.54% 95,036 YTD 9,644,309 10,613,660 12,618,429 2,004,749 18.89% 2,974,120 30 YTD 15,275,053 17,065,424 18,629,771 1,564,347 9.17% 3,354,719 21 YTD 23,233,589 26,161,698 27,791,913 1,630,214 6.239/. 4,558,324 19 :YTD 38,774,061 43,209,266 45,768,854 2,559,588 5.92% 6,994,793 18 YTD 52,609,091 55,627,334 - - - YTD 59,332,485 63,600,871 - - - YTD 66,942,423 72,066,191 - - - YTD 81,843,491 87,152,370 - - - rYTD 95,956,077 99,656,448 - - - YTD 122.397.193 117.392.897 - - - 267. CITY OF COSTA MESA Attachment 2B BUDGET TO ACTUAL ANALYSIS - GENERAL FUND REVENUES BY CATEGORY AS OF DECEMBER 31, 2016 Adopted Actual Increase Mid -Year ACCOUNT DESCRIPTION FY 16-17 12/31/16 (Decrease) Revised Property Tax - Secured $ 23,667,101 $ 12,885,457 $ $ 23,667,101 Property Tax - Unsecured 800,417 569,062 800,417 Property Tax - Supplemental 500,000 176,838 500,000 Property Tax - Homeowners 157,584 22,859 157,584 Delinquent Tax - Penalties/Int 50,000 24,092 50,000 Property Transfer Tax 750,000 312,877 750,000 Sales & Use Tax 54,600,000 20,203,293 54,600,000 Transient Occupancy Tax 8,531,000 3,767,007 8,531,000 Electric Utility Franchise Tax 1,310,319 - 1,310,319 Cable TV Franchise Tax 1,214,800 269,020 1,214,800 PEG Cable Franchise Fee 100,900 19,599 100,900 Gas Utility Franchise Tax 252,200 - 252,200 Business License 953,052 422,826 953,052 Business License Web (8,200) (5,326) (8,200) Solid Waste Hauler Franchise Fee 2,082,937 613,746 2,082,937 Total Taxes $ 94.962.110 S 39.281.348 S S a4 9R211n Dog License $ 98,400 $ 46,732 $ $ 98,400 Fire Permits 96,300 69,203 96,300 Building Permits 1,260,000 635,483 1,260,000 Electric Permits 187,000 91,503 187,000 Plumbing/Mechanical Permits 217,988 100,607 217,988 Street Permits 276,545 152,490 276,545 Special Business Permits 100 215 100 Home Occupation Permits 12,000 7,135 12,000 Operator's Permits 1,300 450 1,300 Other Permits 24,300 15,892 24,300 Total Licenses & Permits $ 2,173,933 $ 1,119,710 $ $ 2,173,933 Municipal Code Violations $ 80,000 $ 186,959 $ - $ 80,000 Vehicle Code Violations 345,000 124,216 - 345,000 Parking Citations 1,050,000 414,639 - 1,050,000 Red Light Camera Violations - 8,158 - - Total Fines & Forfeitures $ 1,475,000 $ 733,972 $ - $ 1,475,000 Investment Earnings $ 180,800 $ 64,833 $ - $ 180,800 Other Interest - 11,882 - - Buildings/Grounds, Rental 212,962 121,150 - 212,962 Rental - Downtown Comm. Center 29,000 13,514 - 29,000 Rental - Balearic Center 19,000 13,448 - 19,000 Rental - Neighborhood Comm. Ctr. 111,180 25,307 - 111,180 Rental - Senior Center 105,000 42,333 - 105,000 Rental - Fields 157,500 56,444 - 157,500 Rental - Tennis 47,607 21,098 - 47,607 Rental - Golf Course Operations 2,215,000 900,043 - 2,215,000 Rental - Bus Shelter Ads 85,972 51,990 - 85,972 Total Use of Money & Property $ 3,164,021 $ 1,322,041 $ - $ 3,164,021 Page 1 of 3 26. F:\FINANCE\BUDGET\2016-17 Budget Info\Mid Year Budget Review\Rev Est Rev Summ 16-17 Attachment 2B CITY OF COSTA MESA Attachment 2B BUDGET TO ACTUAL ANALYSIS - GENERAL FUND REVENUES BY CATEGORY AS OF DECEMBER 31, 2016 Adopted Actual Increase Mid -Year ACCOUNT DESCRIPTION FY 16-17 12131/16 (Decrease) Revised Motor Vehicle In -Lieu Tax Property Tax In -Lieu of VLF Peace Officers. Stand/Training Other Federal Grants Beverage Container Program Reimbursement of Mandated Costs Other State Grants Other County Grants Reimb. - Oth Governmental Agencies Total Other Govt. Agencies Zoning/Variance/CUP Fees Subdivision Map Fees Environmental Impact Fees Plan Checking Fee Vacation/Abandonment of ROW Source Reduction/Recycling Special Policing Fees Vehicle Storage/Impound Fees Vehicle Code Violation Fee Repo Vehicle Release Fee DUI/Emergency Response Jail Booking Fees - City Police False Alarms Fingerprinting Fire Cost Recovery Fire Inspections Hazmat Disclosure Fee EMS - First Responder Fee Paramedic Fee - Advanced Medical Supply Reimbursement Fire False Alarms Accident Cost Recovery Park Permits Park Improvements Recreation - Aquatics Recreation - Day Camp Recreation - Playgrounds Special Events Recreation - Early Childhood Instructional Classes Subtotal Fees & Charges $ 48,000 $ $ $ 48,000 9,906,688 - 9,906,688 21,300 10,885 21,300 500,000 858 500,000 - 28,870 - 60,000 648 60,000 41,710 19,749 41,710 - 145,419 - 117,720 - 117.720 $ 139,713 $ 82,704 $ $ 139,713 31,878 7,225 31,878 29,000 15,332 29,000 410,040 228,972 410,040 500 - 500 16,600 12,810 16,600 500,000 373,619 500,000 175,822 100,280 175,822 3,600 1,410 3,600 3,400 1,830 3,400 6,000 (416) - 6,000 38,000 137,979 - 38,000 200,000 141,189 - 200,000 60,700 28,372 - 60,700 7,500 (315) - 7,500 4,590 2,760 - 4,590 135,275 53,000 - 135,275 264,531 85,438 - 264,531 258,000 107,196 - 258,000 100,000 33,941 - 100,000 1,400 - - 1,400 25,800 2,422 - 25,800 40,755 17,588 - 40,755 7,294 5,774 - 7,294 85,000 42,444 - 85,000 143,210 16,437 - 143,210 302,560 186,092 - 302,560 31,240 12,375 - 31,240 125,000 52,904 - 125,000 465,000 162.673 - 465.000 Page 2 of 3 27_ FAFINANCE\BUDGET\2016-17 Budget Info\Mid Year Budget Review\Rev Est Rev Summ 16-17 Attachment 2B ACCOUNT DESCRIPTION CITY OF COSTA MESA Attachment 2B BUDGET TO ACTUAL ANALYSIS - GENERAL FUND REVENUES BY CATEGORY AS OF DECEMBER 31, 2016 Adopted Actual Increase Mid -Year FY 16-17 12/31116 (Decrease) Revised Recreation - Basketball $ 17,500 $ 9,007 $ $ 17,500 Recreation - Softball 38,000 12,816 38,000 Recreation - Open Gym 5,000 3,668 5,000 Recreation - Futsal 17,500 1,137 17,500 Teen Camp 34,000 4,447 34,000 Senior Center Charges 20,000 5,623 20,000 Photocopies 3,300 1,757 3,300 Police Reports 26,000 14,403 26,000 Police Clearance Letters 4,300 1,920 4,300 Sale - Maps & Publications 900 95 900 Sale - Miscellaneous Supplies 1,700 195 1,700 Central Services Reimb 51,700 43,714 51,700 Charges for Other Services 14,000 5,780 14,000 Special Assessments 2,000 405 2,000 Total Fees & Charges $ 3,848,308 $ 2,016,999 $ - $ 3,848,308 Contributions $ 1,500 $ 100 $ - $ 1,500 Donations - 100,000 - - Reimb. - Const. Permit Insp. Fees 75,000 49,405 - 75,000 Damage to City Property 25,000 61,423 - 25,000 Civil Subpoena Costs 10,706 4,077 - 10,706 Other Reimbursements 200,000 120,766 - 200,000 Sale - Other Equipment 900 - - 900 Other 111,900 103,361 - 111,900 Total Other Revenues $ 425.006 $ 439.132 R It d9s nne Total Revenues $ 116,743,796 $ 45,119,631 $ $ 116,743,796 Operating Transfers In $ Nonoperating Income - Other Total Other Financing Sources $ Total Fund 101 $ 122 $ $ 649,101 649.101 $ 117,392,897 $ 45,768,854 $ $ 117,392,897 Page 3 of 3 2C3• F:\FINANCE\BUDGET\2016-17 Budget Info\Mid Year Budget Review\Rev Est Rev Summ 16-17 Attachment 2B 140 120 100 m 80 O 60 40 20 CITY OF COSTA MESA, CALIFORNIA Attachment 2C Jul YTD Aug YTD Sep YTD Oct YTD Nov YTD Dec YTD u. Jan YTD Feb YTD Mar YTD Apr YTD u May YTD Jun YTD Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Y 2015-16 Actual 15,329,654 22,964,358 33,979,729 41,825,727 49,241,080 57,272,101 68,144,767 75,122,347 84,115,970 91,449,019 98,567,958 o FY 2015-16 ACWal •FV 2018-1]YiD Butlget Projection nFY 2018-17 Actual 14,768,721 14,992,483 (223,761) -1.49% 15,178,672 23,332,630 (8,153,958) -34.95% 27,049,381 34,930,679 (7,881,297) -22.56% 35,203,367 43,203,162 (7,999,795) -18.52% 43,249,090 51,660,204 (8,431,114) -16.31% 54,407,906 62,183,047 (7,775,141) -12.50% 63,143,346 - - 71,001,007 - - 79,952,405 - - 87,794,552 - - 95,230,683 - 111.1..7 - - (337,171 368,272 950,950 1,377,435 2,439,124 4,910,946 1 2q 90 80 70 60 w c 0 50 40 30 20 10 CITY OF COSTA MESA, CALIFORNIA Attachment 2D Total City Salaries and Employee Benefits Jul Aug Sep Oct Nov Dec Jan Fee mar .Apr rmay dun nFY 2015-16 Actual ■FY 2016-17 YTD Budget Projection DFY 2016-17 Actual 1,201,327 1 1,765,384 2,226,454 2,789,690 5,975,396 1 W. FY 2015-16 Actual 1 FY 2016.17 I YTD Budget Projection FY 2016-17 Actual YTD Jul YTD 5,824,309 6,154,323 6,512,559 Aug YTD 11,693,657 12,269,030 12,894,984 Sep YTD 17,751,394 18,685,966 19,516,778 Oct YTD 23,515,499 24,805,459 25,741,954 Nov YTD 29,252,884 30,947,673 32,042,573 Dec YTD 35,141,161 40,095,448 41,116,557 Jan YTD 44,155,827 46,698,028 - Feb YTD 49,889,262 52,809,954 - Mar YTD 56,538,878 59,198,667 - AprYTD 62,412,281 65,367,585 - May YTD 68,441,504 71,503,505 - Jun YTD 76.381.115 80.881,739 - 1,201,327 1 1,765,384 2,226,454 2,789,690 5,975,396 1 W. 31. Page 1 of 4 Attachment 2E CITY OF COSTA MESA BUDGET TO ACTUAL ANALYSIS - GENERAL FUND EXPENDITURES BY DEPARTMENT/DIVISION AS OF DECEMBER 31, 2016 GENERALFUND YTD Remaining Adopted Expended Balance Percent Department/Division FY 16-17 12-31-16 12-31-16 Remaining City Council Salaries & Benefits $ 350,768 $ 182,292 $ 168,476 48.03% Maintenance & Operations 16,075 88,810 (72,735) -452.47% Fixed Assets 3,150 206 2,944 - Total City Council $ 369,993 $ 271,308 $ 98,685 26.67% CEO's Office Salaries & Benefits $ 2,667,304 $ 1,336,247 $ 1,331,057 49.90% Maintenance & Operations 1,032,364 470,720 561,644 54.40% Fixed Assets 710 710 (0) Total City Manager $ 3,700,378 $ 1,807,678 $ 1,892,700 51.15% Human Resources Salaries & Benefits $ 881,884 $ 460,065 $ 421,819 47.83% Maintenance & Operations 506,280 140,698 365,582 72.21% Fixed Assets - 25,182 (25,182) Total Personnel Division $ 1,388,164 $ 625,945 $ 762,219 54.91% Risk Management Salaries & Benefits $ 2,366,412 $ 896,044 $ 1,470,368 62.13% Maintenance & Operations 54,805 61,013 (6,208) -11.33% Fixed Assets - - - Total Risk Management $ 2,421,217 $ 957,057 $ 1,464,160 60.47% CitV Clerk Salaries & Benefits $ 642,265 $ 270,311 $ 371,954 57.91% Maintenance & Operations 443,590 95,579 348,011 78.45% Fixed Assets - - - - Total City Clerk $ 1,085,855 $ 365,891 $ 719,964 66.30% City Attorney Salaries & Benefits $ - $ - $ - - Maintenance & Operations 1,000,000 551,545 448,455 44.85% Fixed Assets - - - - Total City Attorney $ 1,000,000 $ 551,545 $ 448,455 44.85% Finance Administration Salaries & Benefits $ 410,994 $ 154,565 $ 256,429 62.39% Maintenance & Operations 121,773 71,372 50,401 41.39% Fixed Assets - - - Total Finance Admin. $ 532,767 $ 225,938 $ 306,829 57.59% Financial Operations Salaries & Benefits $ 1,293,032 $ 549,444 $ 743,588 57.51% Maintenance & Operations 208,400 151,153 57,247 27.47% Fixed Assets - - - Total Financial Operations $ 1,501,432 $ 700,597 $ 800,835 53.34% 31. Page 1 of 4 CITY OF COSTA MESA BUDGET TO ACTUAL ANALYSIS - GENERAL FUND EXPENDITURES BY DEPARTMENT/DIVISION AS OF DECEMBER 31, 2016 GENERALFUND YTD Remaining Adopted Expended Balance Percent Department/Division FY 16-17 12-31.16 12-31-16 Remaining Financial Planning Salaries & Benefits $ 885,838 $ 364,543 $ 521,295 58.85% Maintenance & Operations 46,909 (23,063) 69,972 149.16% Fixed Assets - - Total Financial Planning $ 932,747 $ 341,480 $ 591,267 63.39% Information Technology Salaries & Benefits $ 1,999,515 $ 914,876 $ 1,084,639 54.25% Maintenance & Operations 1,295,821 429,818 866,003 66.83% Fixed Assets 102,023 76,958 25,065 24.57% Total Management Info. $ 3,397,359 $ 1,421,652 $ 1,975,707 58.15% Police Administration Salaries & Benefits $ 3,173,906 $ 1,448,294 $ 1,725,612 54.37% Maintenance & Operations 798,875 328,832 470,043 58.84% Fixed Assets 120,000 305 119,695 Total Police Admin. $ 4,092,781 $ 1,777,432 $ 2,315,349 56.57% Police Field Operations Salaries & Benefits $ 20,010,486 $ 10,216,825 $ 9,793,661 48.94% Maintenance & Operations 1,618,339 534,870 1,083,469 66.95% Fixed Assets - 19 (19) - Total Police Field Oper. $ 21,628,825 $ 10,751,714 $ 10,877,111 50.29% Police Support Services Salaries & Benefits $ 14,700,071 $ 5,707,710 $ 8,992,361 61.17% Maintenance & Operations 2,362,398 952,090 1,410,308 59.70% Fixed Assets 24,205 8,646 15,559 - Total Police Support $ 17,086,674 $ 6,668,446 $ 10,418,228 60.97% Fire Administration Salaries & Benefits $ 1,850,591 $ 977,303 $ 873,288 47.19% Maintenance & Operations 544,003 269,623 274,380 50.44% Fixed Assets - - - - Total Fire Admin. $ 2,394,594 $ 1,246,927 $ 1,147,667 47.93% Fire Suppression Salaries & Benefits $ 16,728,312 $ 10,762,345 $ 5,965,967 35.66% Maintenance & Operations 1,156,927 391,653 765,274 66.15% Fixed Assets 15,000 7,067 7,933 - Total Fire Suppression $ 17,900,239 $ 11,161,065 $ 6,739,174 37.65% Fire Prevention Salaries & Benefits $ 560,393 $ 240,096 $ 320,297 57.16% Maintenance & Operations 296,976 70,984 225,992 76.10% Fixed Assets - - - Total Fire Prevention $ 857,369 $ 311,080 $ 546,289 63.72% 32. Page 2 of 4 CITY OF COSTA MESA BUDGET TO ACTUAL ANALYSIS - GENERAL FUND EXPENDITURES BY DEPARTMENT/DIVISION AS OF DECEMBER 31, 2016 GENERALFUND YTD Remaining Adopted Expended Balance Percent DepartmenUDivision FY 16-17 12-31-16 12-31-16 Remaining Development Serv. Admin Salaries & Benefits $ 568,549 $ 317,798 $ 250,751 44.10% Maintenance & Operations 179,307 96,228 83,079 46.33% Fixed Assets 59 (59) - Total Development Serv. $ 747,856 $ 414,085 $ 333,771 44.63% Planning Salaries & Benefits $ 1,352,249 $ 483,850 $ 868,399 64.22% Maintenance & Operations 229,495 267,513 (38,018) -16.57% Fixed Assets 4,594 1,290 3,304 - Total Planning $ 1,586,338 $ 752,654 $ 833,684 52.55% Building Safety Salaries & Benefits $ 1,831,506 $ 683,687 $ 1,147,819 62.67% Maintenance & Operations 330,147 128,162 201,985 61.18% Fixed Assets - - Total Building Safety $ 2,161,653 $ 811,849 $ 1,349,804 62.44% Community Improvement Salaries & Benefits $ 1,412,282 $ 537,062 $ 875,220 61.97% Maintenance & Operations 60,881 135,850 (74,969) -123.14% Fixed Assets - 1,412 (1,412) - Total Building Safety $ 1,473,163 $ 674,324 $ 798,839 54.23% Public Services Admin. Salaries & Benefits $ 794,623 $ 278,453 $ 516,170 64.96% Maintenance & Operations 740,111 396,433 343,678 46.44% Fixed Assets -_ Total Public Serv. Adm. $ 1,534,734 $ 674,886 $ 859,848 56.036/o Engineering Salaries & Benefits $ 1,745,284 $ 452,234 $ 1,293,050 74.09% Maintenance & Operations 340,160 254,873 85,287 25.07% Fixed Assets - 1,421 (1,421) - Total Engineering $ 2,085,444 $ 708,528 $ 1,376,916 66.03% Transportation Services Salaries & Benefits $ 765,785 $ 261,065 $ 504,720 65.91% Maintenance & Operations 1,982,121 669,002 1,313,119 66.25% Fixed Assets _ Total Transportation $ 2,747,906 $ 930,067 $ 1,817,839 66.15% Recreation Division Salaries & Benefits $ 3,466,715 $ 1,602,594 $ 1,864,121 53.77% Maintenance & Operations 1,977,616 890,681 1,086,935 54.96% Fixed Assets 3,674 (3,674) - Total Recreation Div. $ 5,444,331 $ 2,496,949 $ 2,947,382 54.14% Page 3 of 4 33' CITY OF COSTA MESA BUDGET TO ACTUAL ANALYSIS - GENERAL FUND EXPENDITURES BY DEPARTMENT/DIVISION AS OF DECEMBER 31, 2016 GENERALFUND Department/Division Maintenance Services Salaries & Benefits Maintenance & Operations Fixed Assets Total Maintenance Serv. Non -Departmental Salaries & Benefits Maintenance & Operations Transfers Out Total Non -Departmental RECAP: Salaries & Benefits Maintenance & Operations Fixed Assets Transfers Out Grand Total YTD Remaining Adopted Expended Balance Percent FY 16-17 12-31-16 12-31-16 Remaining $ 4,508,832 $ 2,018,852 $ 2,489,980 55.22% 6,199,224 2,317,418 3,881,806 62.62% 2,600 2,600 - $ 10,710,656 $ 4,336 270 $ 6,374,386 59.51 $ (4,085,857) $ - $ (4,085,857) 100.00% 4,899,493 3,445,438 1,454,055 29.68% 7,796,786 7,752,242 44,544 - $ 8,610,422 $ 11,197,680 $ (2,587,258) -30.05% 80,881,739 $ 41,116,557 $ 39,765,182 28,442,090 13,187,299 15,254,791 272,282 126,948 145.334 49.16% 53.63% 53.38% Page 4 of 4 3q 35. Attachment 2F 2016-17 Allocation of General Fund Continaencv Account as of 2-2-17 Beginning Balance $ 1,000,000.00 Dept Total Total Available 1 $ 1,000,000.00 CEO/Communications-Marketin /Ci Clerk/Central Services/Ci Council $ 340,783.17 Pet Committee Rao Leader IV part-time salary $ 20,000.00 Homeless Outreach part-time Rao Leader IV $ 13,851.05 Concierge part-time Office Specialist II (4 positions) $ 84,752.00 405 Advocacy and Grant Writing Assistance $ 50,000.00 Chamber Partnership $ 20,000.00 Website redesign $ 27,030.00 Additional athletic grant funding for schools $ 75,000.00 Heroes Hall Veterans Musuem $ 25,000.00 Homeless Volunteers Luncheon $ 1,750.00 Youth in Government Day $ 4,000.00 Employee training and situational awareness $ 2,400.00 Employee breakroom seating $ 4,713.12 Office Furniture $ 12,287.00 Additional workspaces and technology $ 10,000.00 CEO/HR $ 58,150.00 HR Division Technology Improvements $ 20,000.00 Executive Recruiter for Development Services Director $ 24,400.00 Careers in Government online job advertisement contract $ 4,750.00 Sit -Stand Desktop Pilot Program $ 9,000.00 Employee Service Awards $ 16,000.00 Development Services $ 181,512.00 Group Homes Consulting Contract Kimley-Horn 81585 $ 150,000.00 Management Partners Contract 59986 $ 31,512.00 MPS Consulting 39941 League of Cities - Planning Commissioners Academy $ 4,000.00 Public Services $ 84,313.00 Bullrush Removal at Fairview Park $ 68,775.00 Brentwood Park Lighting Project $ 10,000.00 Harbor Cornerstone Bike Trail Dedication Plaque $ 1,691.00 Windscreen at Davis Field $ 3,847.00 Additional cost for City Hall PA System Replacement $ 10,607.74 Fire Police Department $ 43,800.00 Sungard records management system (RMS) Data Conversion $ 43,800.00 Software to track animals at Humane Society $ 23,680.00 Recreation & Community Services $32,500.00 SMART Camp program expansion $ 4,000.00 Fairview Park Nature Programs $ 12,000.00 Cultural Arts Committee Events and Programming $ 12,000.00 OC Strategic Plan on Aging $ 1,000.00 Teen Center equipment replacement $ 3,500.00 IT $ 46,676.92 City Hall/Chambers Security Camera Upgrade $ 26,323.00 City Network technology upgrades $ 10,353.92 Citywide Microsoft Office and Adobe onsite training $ 10,000.00 Finance $ 8,000.00 Organizational Review of Purchasing Function $ 8,000.00 Total $ 860,022.83 Balance -Remaining $ 139,977.17 35. City of Costa Mesa FY 16-12 Midi Budget Adjustment Detail Adopted General fund Butlget 101 Previously Approved Budget Adjustments: 1]-001 101 Finance 1]-002 Nomdepartmental 1]-003 Non -departmental 1]-004 Non -departmental 1]-005 Non -departmental 1]-006 Non -departmental 1]-00] pending Fire Department ll -008 Police Department 17009 1,000,000 Carryover ltemsfrom FY 15-16 500,000 Carryover Purchase Orders -General Fund I01 CRY Manager's OHlce/CBy Clerk 101 City Manager's Office/NHS 101 Finance 101 Information Technoogy 101 Information Technology 101 Fueled Department 101 Oevlopment Services 101 Public Services Total Carry over items from FY 15-16 101 Ron insurrectional 101 Non departmental 101 Nomdepartmental 101 Non -departmental 101 Non -departmental 101 Non -departmental 101 Non -departmental 101 Fire Department 101 Police Department Total Use of FY 15-16 Surplus 1,000,000 Adjusted Genal Fund Budget 500,000 Recommended Mid -Year Adjustments to the General Fund: Item Number Reserved for mid,nor adjustments See Special Funds section be. See Special Funds section below See Special Fonds section below See Special Funds section below See Special Funds section below See Spedal Funtls section below See Special Funds section below See Special Funds section below Matrissranning Merry House invoice Bond financing consultant Security appliance Supi plan Taper equipment and related supplies Westside entry sign on Superior Pointe Additional recruit, camera costs- various locations Operating transfer out -Self -Insurance Fund AG2 Additional payment to CAPERS -Fire side fund Operating transfer out -to Fund 401 for 800 MHZ nest gen. sys. Operating transfer oui fund 6031T replacement --Permits Plus Operating transfer out to fund 603 IT replacement ERP Operating transfer out -to fund 401 --Arlington 0loswale Operating transfer out -to fund 401--FaIMew Park neutralism Fire Station Improvements Police Station improvements Attachment 2G Appropriation Revenue Fund Balance S 11],392,89] $ 11],392,89] $ 1,398,502 1,198,502 30,000 30,000 5,806 5,806 23,000 23,000 48,000 48,000 60,000 60,000 24,000 24,000 40,000 40,000 50,000 50,000 $ 1,479,308 $ $ 1,479,308 1,000,000 1,000,000 500,000 500,000 1,993,153 1,993,153 1,500,000 1,500,000 1,100,000 1,100,000 1,000,000 1,000,000 350,000 350,000 350,000 350,000 7,993,153 7,993,153 $ 126,865,358 $ 11),392,89] $ 9,472,461 1 101 Recreation Mobile recreation program: revenue TBD TBD 2 102 Recreation Accept Community Run grant 1,500 1,SOo 3 101 Information Technology Web developer/Secured Property Tax 148,000 148,000 4 101 Police Department EMPG Grant adjust budget to actual grant amount (23,916) (23,916) 5 101 Police Department 050C Grant 11,015 11,015 6 101 Police Department Live scan machine/Vehicle storage impound fees 12,500 12,500 ] 101 Police Department AS 109 Public Safety Realignment Funding 85,826 85,826 8 9 101 Fire Department EMTstudy wnsultant/Paramedic fee- advanced revenue laffma 70,000 30 101 Fire Department Medical supply reimbursement revenue - 38000 Il 101 Development Services Gibson tmnsp0rtation work& administrative fees 2],35] 2],35] Fu no Total Mid year General Fund Budget as adjusted Adopted Special Funds Budget Previously Approved Budget Adjustments: 17-002 214 Public Services 12-003 220 Police Department 1]-004 601/401 Police Department 12-005 601 Public Services 17 006 219 Police Department 1]-00] pending 416 Public Services 17-008 Various Public Services 17-009 415 Public Services Carryover Items from FY 15-16 601 Public Services Total Previously Approved Carryover Purchase Orders pd -(eaSpWal Funds Budget Harbor Blvd. Improvement Project 14-07 change order ORre of Traffic Safety grant 800 MHz fund to fund borrowing, from 601 to 401 Purchase two portable light tawens units 2.161ustice Assistance Grant Proi to proj, transfer from Street Maint. to 1916 St, Safe Routes Feb. t0 projl transfers and additional Britol 5t Project funds Project V -Community Circulator Emergency PO for fuel tank remediation Recommended Mid -Year Adjustments to the General Fund: Item Number 1 205 HOME Program Line of Credit reduction Total MldWar Adjustments to Special Funds Midyear Special Fund Budget as adjusted All Funds Adapted Budget All Funds Mid -year budget as adjusted Housing Authority & civic Center Barrio properties 222 Housing Authority Temp. office space for Homeless Task Force Outreach team. 223 Civic Center Barrio Temp. office space for Homeless Task Force Outreach team. Total Housing Authority Adjustments Housing Authority Budget as Adjusted 38000 (30,000) $ 362,282 $ 362,282 $ $ 12],22],640 $ 112,]55,1]9 $ 9,471 Appropriation Revenue Fund B.I.A. $ 22,243,120 $ 24,612,544 $ 1,625,526 19,898 19,898 165,000 165,000 1,326,000 1,326,000 3,600 3,600 20,004 20,004 307,619 307,619 571,500 521,580 68,391 68,391 $ 2,482,092 5 756,584 5 1,225,508 $ 9,324,214 $ 9,374,214 $ 39,099,426 $ 25,374,128 $ 13,215,298 (92,238) (92,238) $ (92,238) $ (92,238) $ $ 39,007,188 is 25,281,890 $ 13,7725,290 $ 14,636,017 $ 166,234,828 $ $ 570,885 $ 142,010,441 143,037,069 5 564,725 $ 2,625,576 23,19],]59 (6,160) 29,000 (29,000) 29,000 (29,000) $ 570,885 $ 564,725 $ (6,160) 0 ATTACHMENT 2H FY 16-17 SPECIAL FUNDS CARRYOVER PURCHASE ORDERS FOR PO REF# Vendor# Vendor Name Due Date New PO# Account Fund Org Program Project PO Balance 10148 000119 3828 RJ Noble Company 07/31/2015 1700010148 500000 201 19200 30112 400015 736,106.55 Nates R/O due to incomplete project. 10221 C00235 23849 Global Power Group Inc 06/30/2016 1700010221 500000 201 19200 30112 400015 759,358.70 R/O due to incomplete project. C/O #1 expected to zero out PO w/out any payment due. 10328 C00368 23951 HYM Engineering Inc 15-12 06/30/2016 1700010328 500000 201 19200 30112 350020 68,355.98 R/O req by A/OP email 08/25/16 10412 CD0562 17030 Civil Source 06/30/2016 1700010412 500000 201 19200 30112 400012 19,980.00 R/O req by A/P Email 09107/16 10412 000562 17030 Civil Source 06/30/2016 1700010412 500000 201 19200 30130 500010 50,975.00 H/O req by A/P Email 09107/16 10507 000693 3627 Black Rock Construction Co. 15-13 06/30/2016 1700010507 500000 201 19200 30112 400012 270,306.10 R/0 req by A/P small 07/26/16 10609 000805 3445 MJ JuradD Inc 06/30/2016 1700010609 500000 201 19200 30112 400015 13,000.00 R/O due to incomplete Project 09/01/16 10620 000806 971 All American Asphalt 04/06/2016 1700010620 500000 201 19200 30112 400015 8,970.00 R/O due to project not started. 10621 C00784 4857 O Concrete Construction Inc 06/30/2016 1700010621 500000 201 19200 30nD 500017 33,600.00 R/O due to on-call repair project not started. 10751 C00629 4857 Cl Concrete Construction Inc 06/30/2016 1700010751 500000 201 19200 30130 500010 18,300.00 R/O due to delay in project start per dept. 08/30/16 10853 C00795 15809 Smith Emery Laboratories 06/30/2016 1700010853 500000 201 19200 30112 400015 20,680.00 R/O Req by contract term endind 05/24118 1.6E+09 22423 Horizons Construction CO Intl Inc 10/15/2015 1700009180 500000 201 19300 30210 300069 37,675.76 R/O req by A/P email 08/24/16 after final 15/16 on 08/25/16 1.6E+09 3212 Onward Engineering 02/03/2016 1700009196 500000 201 19200 30112 300155 22,944.40 payment R/O per dept- no authorization to closethls PO given to purchasing. 1.6E+09 21371 euckham Infrastructure Group Inc 06/30/2016 1700009766 500000 201 19200 30112 400015 26,190.84 R/O Req by A/P email on 08/09/16 1.6E+09 4857 Cl Concrete Construction Inc 08/20/2015 1700009872 500000 201 19200 30130 500030 34,098.55 R/O per dept- no OK to close PO as of 08/05/16 1.6E+09 4857 Cl Concrete Construction Inc 08/20/2015 1700009872 500000 201 19200 30130 500009 8,524.63 R/O per dept- no OK to close PO as of 08/05/16 1.6E+09 C01311 21549 El Camino Construction & Engineering 08/28/2015 1700009946 500000 201 19200 30130 500017 19,750.00 R/O due to dept- no authorization to close PO 1.6E+09 001312 21549 El Camino Construction & Engineering 08/28/2015 1700009947 500000 201 19200 30130 500017 28,200.00 given R/O due 10412 C00562 17030 Civil Source 06/30/2016 1700010412 to dept- no authorization to close PO given 530200 201 19200 50002 36,348.00 R/O req by A/P email 09/07/16 Total Gas Tax Fund $ 2,213,364.51 10791 C01047 1151 B & M Lawn & Garden Center 06/30/2016 1700010791 510305 202 16200 10230 2,073.92 R/O req by A/P email 08/24/16 10793 C01049 22587 Stickman Graphic 06/30/2016 1700010793 510305 202 16200 10230 2,980.53 R/O Req by Dept due to lost PO and Incomplete installation. 10761 000987 24174 Federal Technology Sol utions Inc 06/01/2016 1700010761 590801 202 16200 10210 7,722.00 R/O req by A/P email D9/08/16 10810 C01024 .5402 CDW Government Inc 06/20/2016 1700010810 590801 202 16200 10210 5,464.55 R/O per per due to missing unpaid Invoice#DHM0509 dated 06/07/16 Total Prop 172 Public Safety Fund . $ 18,241.00 . 10852 C01088 24529 Smart Tech Group int 06/30/2016 1700010852 500000 203 19200 30112 300150 15,769.00 R/O req by A/P email 08/24/16 1.6E+09 8920 Iteris Inc 06/30/2016 1700008749 500000 203 19300 30241 370040 1,582.59 R/O due to contract end data 06/30/18 1.6E+09 8920 Iteds Inc 06/30/2016 1700008750 500000 203 19300 30241 370041 2,343.39 due to contract end date 06/30/18 1.6E+09 14065 Albert Grover &Associates Inc 06/30/2016 1700008751 500000 203 19300 30241 370039 11,428.07 R/O due to contract end dated 06/30/18 1.6E09 14065 Albert Grover&Associates Int 06/30/2016 1700010062 500000 203 19300 30241 370047 93,286.58 R/O due to contract end date 05/06/20 Total Air Quality Improvement Fund $ 124,409.63 10576 C00759 9300 Barr& Clark Environ mental 03/11/2015 1700010576 535501 205 11320 20422 3,060.00 R/O due t0 contract term ending 02/28117. Total HOME Program Fund $ 3,060.00 - 10648 C00862 22280 Keystone Uniforms OC 04/30/2016 1700010648 510305 207 18300 20350 647.93 R/O req by Dept for back ordered mdse 'Tdml CDBG Fund $ 647.93 1.6E+09 3716 Pyramid Fence Company Inc 12/31/2015 1700008897 500000 208 19500 40122 700029 3,970.00 R/O due to contract term ending 12/31/17 1.6E+09 C00377 22139 Scientific Resource Surveys Inc 06/30/2016 1700008972 500000 208 19500 40112 700029 7,095.50 R/O due to contract end date 10/01/17. .1.6E+09 C00263 22766 Q3 Engineers Inc 08/15/2015 1700009484 500000 208 19200 40112 700080 2,072.00 R/O per Dept- no authorization to close this PO given to purchasing. Total Park Development Fees Fund. $ 13,137.50 1.6E+09 2795 Kabbara Engineering 06/30/2016 1700009483 500000 209 19200 30122 550011 51,511.20 R/O due to contract term ext to 07/01/18 Total Drainage Fees Fund $ 51,511.20. - 1.6E+09 19471 VA Consulting Inc 0/30/2015 1700008830 500000 214 19300 30210 300146 5,521.18 R/O due to unpaid invoices per dept. 1.6E+09 22423 Horizons Construction Co Intl Inc 10/15/2015 1700009179 500000 214 19300 30210 350018 44,459.50 R/O req by dept incompete Project 1.6E+09 M0353 3212 Onward Engineering 01/07/2016 1700009204 500000 214 19300 30210 300129 17,663.37 R/O per dept- no authorization to close this PO given to purchasing. Total Traffic Impact Fees Fund $. .67,644.05 Page 1 of 3 ATTACHMENT21-1 FY 16-17 SPECIAL FUNDS CARRYOVER PURCHASE ORDERS PO# PO REF# Vendor# Vendor Name Due Date New PO# Account Fund Org Program Project PO Balance Nates 1.6E+09 2617 Intematlonal Business Machines Corp 08/05/2015 1700009907 510302 217 15400 10127 7,200.00 R/O per dept due to Incomplete project 09/08/16, 10762 C01020 24305 C3 Tech nology Services 06/01/2016 1700010762 590801 217 15400 10127 6,307.20 R/O req by A/P email 09/20/16 - Total Narcotics Forfeiture Fund/. $ 13,507,20' 10221 W0235 23849 Global Power Group Inc 06/30/2016 1700010221 500000 401 19200 30112 4D0015 5,573.85 R/O due to incomplete project: and no OK to close 10850 C01146 24407 Start Fresh Building Maintenance Inc 06/30/2016 1700010850 500000 401 19500 50910 200062 1,500.00 R/O Req by A/P dept email 08/03/16 10289 C00218 21493 St George Construction Inc 15-10 06/30/2016 1700010289 500000 401 19200 50910 200064 78,689.13 R/O Per dept, no authorization to close this PO 10289 000218 21493 St George Constructlonlnc 15-10 06/30/2016 1700010289 500000 401 19500 50910 200064 340.00 given R/O Per dept,no authorization to close this PO 10295 C00215 13481 Tolar Manufacturing Company Inc 11/20/2015 1700010295 500000 401 19300 30210 370042 2,754.00 given R/O due to B/O of 6 bus benches -NO Invoice 08/30/16 10315 000365 23955 WLC Architects Inc 06/30/2016 1700010315 500000 401 16200 50905 200076 185,191.10 R/O due to contract term end 07/31/19 10385 000487 24068 RM Architecture 06/30/2016 1700010385 500000 401 19500 50910 200063 30,805.31 R/O due to contract end date 09/15/17 10386 C00487 24068 RM Architecture 06/30/2016 1700010386 500000 401 19500 50910 200063 39,142.53 R/O due to contract end date 09/15/17 10387 C00525 23067 Asakura Robinson Co LLC 06/30/2016 1700010387 500000 401 195W 50910 200063 11,600.00 R/O due to contract end date 09/15/17 10398 000248 24071 Fence Menders Inc 01/29/2016 170030398 500000 401 195W 50910 200062 1,900.00 R/O req by dept due to missing unpaid invoice 10403 C00541 17030 Civil Source 06/30/2016 1700010403 500000 401 19300 30210 350017 79,700.00 R/O due to contract end date 10/19/18 10412 C00562 17030 Civil Source 06/30/2016 1700010412 500000 401 19200 40112 700115 61,324.00 R/O req by A/P email 09/07/16 10412 C00562 17030 Civil Source 06/30/2016 1700010412 500000 401 19200 40112 700116 670.00 R/O req by A/P email 09/07/16 10412 000562 17030 Civil Source 06/30/2016 1700010412 500000 401 19500 40112 700113 6,752.50 R/O req by A/P email 09/07/16 10445 00580 21277 Endemic Environmental Services Inc 06/30/2016 1700010445 500000 401 19200 40112 700109 1,195.00 R/O due to contract term ending 10/3117. 10476 C00631 11626 Glenn Lukas & Associates Inc 06/30/2016 1700010476 500000 401 19200 40112 700109 14,376.13 R/O req by A/P email 08/10/16 10480 C00643 24157 Kitchell Cem 06/30/2016 1700010480 500000 401 16200 50905 2OW76 609,420.00 R/O req by A/P email 08/24116 10480 C00643 24157 Kitchell Cem 06/30/2016 1700010480 500000 401 19500 50910 2W063 296,798.00 R/O req by A/P email 08/24/16 10504 C00620 23249 Johnson Favaro LLP 06/30/2016 170010504 500000 401 19200 40112 80W15 2,280,458.20 R/O req by A/P email 07/27/16 10574 000516 21277 Endemic Environmental Services Inc 03/11/2016 1700010574 500000 401 1920 40112 700029 17,942.27 R/O req due to contract end date 01/31/18. 10575 W0742 21277 Endemic Environmental Services Inc 03/11/2016 17001075 500000 401 192W 40112 70029 3,337.60 R/O due to contract end date 01/31/18 10746 CW998 915 Advanced Equipment Com 06/30/2016 1700010746 500000 401 19500 50910 200062 7,513.79 R/O due to incomplete project as of 09/06/16 30748 03037 12405 Micon Construction 06/30/2016 1700010749 500000 401 19200 40112 700092 19,893.36 R/O req by A/P email 08/24/16 10781 00499 24445 KASA Construction Inc 06/30/2016 1700010781 500000 401 19200 40112 450008 397,051.00 R/O req by A/P email 07/27/16 10801 001062 24525 Signature Painting 06/30/2016 1700010801 SWW0 401 19500 50910 200068 17,000.00 R/O req by O. Lovell 09/08/16 due to delay in 10816 01086 22951 Tandus Centiva US LLC O6/30/2016 1700010816 500000 401 19500 50910 800013 43,447.00 project. R/O req by A/P email O/03/16 10817 C01099 22951 Tandus Centiva US LLC 06/30/2016 1700010817 500000 401 19500 50910 200062 12,441.81 R/O req by A/P email 08/03/16 10818 C01100 22951 Tandus Centiva US LLC 06/30/2016 170010818 500000 401 1950 5030 200062 6,656.20 R/O req by A/P email 08/03/16 10819 001085 24530 Azplundh Construction Corp 06/30/2016 1700010819 500000 401 1930 30210 370035 442,SS7.W R/O req by A/P email 08/03/16 10826 01071 24563 Commercial Coating Resource Inc 06/30/2016 1700010826 500000 401 19500 50910 200062 1,800.00 R/O req by A/P email 07/20/16 10851 01150 24636 Lines &lLamps, Inc O6/30/2016 1700010851 500000 401 19500 50910 200062 1,167.20 R/O req by A/0 due to late invoice. 10852 01088 24529 Smart Tech Group Inc 06/30/2016 1700010852 5WDD0 401 19200 30112 300150 105,531.00 R/O req by A/P consul 08/24116 10853 C00795 15809 Smith Emery Laboratories 06/30/2016 1700010853 500000 401 19200 50910 200064 192.50 R/O Req by contract term endind 05/24/18 1.6E+09 C00411 2795 Kabbara Engineering 06/30/2016 1700008616 5000W 401 19200 40112 700029 135,957.20 R/O due to contract end date of 12/31/16 1.6E+09 22423 Horizons Construction CO Inti Inc 10/15/2015 1700009180 500000 401 19300 30210 350014 3,OW.00 R/O req by A/P email 08/24/16 after final 15/16 payment on 08/25116 1.6E+09 8798 CNC Engineering Inc 02/03/2016 17MM9195 500000 401 193DD 30210 3W356 5,621.11 R/O req by dept D. Cho W/23/16 1.6E+09 3212 Onward Engineering 02/03/2016 170009196 500000 401 19300 30210 30355 3,472.12 R/O per dept- no authorization to close this PO given to purchasing, 1.6E+09 00353 3212 Onward Engineering 01/07/2016 1700009204 500000 401 1930 30210 30129 19,280.02 R/O per dept- no authorization to close this PO given to purchasing. 1.6E+09 3129 KOA Corporation 06/30/2016 1700009244 500000 401 19300 30210 37035 11,692.06 P/O due to contract end dated 06130/18 1.6E+09 C00063 23067 Asakura Robinson Ce LLC 06/30/2016 1700009674 50000 401 19500 20111 350024 530.00 R/O req by dept. contract term ends 10/21/16 1.6E+09 C00053 23067 Asakura Robinson Cc LLC 06/30/2016 1700009674 50000 401 19200 40112 350025 11,350.00 R/O req by dept. contract term ends 10/21/16 1.6E+09 23225 V & E Tree Service Inc 12/31/2015 1700009810 500000 401 19200 30112 400015 18,050.00 R/0 per dept - no OK to close PO as of 08/05/16 1.6E+09 4857 Cl Concrete Construction Inc 08/20/2015 170009872 500000 401 19500 40111 700106 33,816.00 R/O per dept- no OK to close PO as of08/05/16 1.6E+09 23423 Graphic Solutions Ltd 06/30/2016 1700009969 500000 401 1930 30210 36002 18,887.61 R/O req by dept due to contract end dated 04/01/18 1.6E+09 10813 RIM Design Group Inc 06/30/2016 1700009970 500000. 401 19200 40112 700110 61,531.43 R/O Due to contract end date 03/01/18 Total Capital Improvements Fund $ 5,107,908.03.E W ' Page 2 of 3 ATTACHM ENT 2H FY 1617 SPECIAL FUNDS CARRYOVER PURCHASE ORDERS POU PO REF# Vendor# Vendor Name Due Date New PM Account Fund 0, Program Project PO Balance Notes 1.6E+09 21549 EI Camino Construction & Engineering 01/15/2016 1700008764 500000 403 19200 30112 400015 6,481.15 R/0 per dept. not authorized to close PO 1.6E+09 22423 Horizons Construction Cc Intl Inc 10/15/2015 1700009180 500000 403 19300 30112 350014 36,967.83 R/0 req by A/P email 08/24/16 after flna115/16 on 08/25/16 1.6E+09 C00353 3212 Onward Engineering 01/07/2016 1700009204 500000 403 19300 30210 300129 7,215.00 RIO per dept - no authorization W close this PO payment given to purchasing. 1.6E+09 3828 RU Noble Company 10/15/2015 1700009296 500000 403 19200 30112 400015 23,451.43 RIO due to incomplete Project. 1.6E+09 3627 Black Rock Construction Company 08/28/2015 1700009968 500000 403 19200 30112 400015 17,675.00 R/0 due W incomplete payments. Total Measure M Construction Fund , $ , -: 91,790.41 10287 C00367 23952 Unique Performance Constloc 15-11 06/30/2016 1700010287 500000 415 19300 30210 370049 1,791.76 RIO due to incomplete project - 1.6E+09 8920 Iteris Inc 06/30/2016 1700008749 500000 415 19300 30241 370040 13,885.79 RIO due to contract end date 06/30/18 1.6E+09 8920 Iteris Inc 06/30/2016 1700008750 500000 415 19300 30241 370041 13,089.99 R/O due to contract end date 06/30/18 1.6E+09 14065 Albert Graver &Associates Inc 06/30/2016 1700008751 500000 415 19300 30241 370039 1,057.14 R/O due to contract end dated 06/30/18 1.6E+09 19471 VA Consulting Inc 09/30/2015 1700008830 500000 415 19300 30210 300146 16,564.04 RIO due to unpaid invoices per dept. 1.6E+09 C00353 3212 Onward Engineering 01/07/2016 17OW09204 500000 415 19300 30210 300129 26,495.01 RIO per dept- n0 authorization to close this PO given to purchasing. 1.6E+09 2795 Kabbara Engineering 06/30/2016 170009483 500000 415 1920 30122 55WI1 95,663.80 RIO due to contract term ext to 07/01/38 1.6E+09 17030 Civil Source 06/30/2016 170000701 SOON 415 19300 30210 30142 31,322.25 RIO due to contract term 07/15/17 1.6E+09 14065 Albert Grover &Associates Inc 06/30/2016 1700010062 500000 415. 19300 30241 370047 527,358.42 R/O due to contract end date 05/06/20 Total Measure M2. Fund $ 707,228.20 10263 C00157 3129 KOA Corporation 06/30/2016 1700010219 500000 416 19200 30112 400015 309,809.70 RIO req by Arach Rahimian on 08/10/16 10157 C00033 4498 West Coast Arborists Inc 06/30/2016 1700010157 500000 416 19200 30112 400015 32,300.00 RIO due to contract and date 9/30/17 10219 C00234 23240 American Asphalt South Inc 15-06 06/30/2016 170W10219 500000 416 192W 30112 4WO15 309,809.70 RIO req by Arach Rahlmian on 08/10/16 1.6E+09 4857 Cl Concrete Construction Inc 08/20/2015 170009872 5WD0 416 19200 30112 40015 2,167.82 RIO per dept- no OK to close PO as of 08/05/16 1.6E+09 4857 0 Concrete Construction Inc 03/08/2016 1700010076 500000 416 19200 30112 400015 10,424.60 RIO due to dept non -authorization to close PO 1.6E+09 4857 G Concrete Construction Inc 01/06/2016 1700010080 500000 416 19200 30112 400015 32.00 RIO due to dept.non-authorization to close PO 10287 00,367 23952 Unique Performance Constlnc 15-11 06/30/2016 1700010287 530401 416 19300 30210 248.24 RIO due to incomplete project Total Measure M2 Falrsham $ 664,792.06 1.6E+09 C00484 24041 Pierce Manufacturing Inc 04/10/2016 1700010414 590502 601 19500 50920 0.02 RIO due to undelivered vehicle as of 06/30/16 10411 C00428 3359 Nixon Egil Equipment Co 01/29/2016 170010411 590504 601 1950 50920 173,044.96 RIO Req by A/P 07/26/16 email. 1.6E+09 C00281. 21631 National Auto Fleet Group 10/30/2016 1700010311 590504 601 19500 50920 114,759.27 RIO due to undelivered vehicle as of 06/30/16 Total Equipment Replacement Fund$ 28],804,25 10373 C00512 24040 Environmental Science Associates 06/30/2016 1700010373 215520 701 1,750.00 R/O due to contract end date 10/31/17 10652 C00243 24229 Michael Baker lntemational Inc 06/30/2016 1700010652 215520 701 7,417.33 R/O due to contract end date of 03/06/17 Total Deposits Fund $ 9,167.33 Grand Total Special Funds $ 9,374,213.30 W �w Page 3 of 3 ATTACHMENT 2I CIP STATUS REPORT as of February 2017 page 1 CIP Status Project 2-3-2017 2/7/2017 11:19 AM FUNDING ALLOCATED TO DATE (OR PROJECT STATUS UNENCUMBERED BALANCE WHERE NOTED( FY AMOUNT OF ANY GRANTS ADA Accessibility Improvements - TeWinkle Park: The Americans with Disabilities Act Title III requires that owners of buildings that are considered to be places of public Design work complete. This project accomodations remove those architectural barriers and is scheduled to be advertised in communications barriers that are considered readily accessible February. in accordance with the resources available to building Unencumbered ownership to allow use of the facility bythe disabled. $252,350.00 Balance FY15/16 $252,350.00 CDBG Arlington Drive Bioswale and Dry Weather Diversion Project: Citywide Storm Drain. This project entails the removal of OCTA Grant requires project award $910,000.00 FY14/15 & FY35/16 $910,000.00 Drainage Fee approximately 70,000 sq. ft. of asphalt and construct of a by June 30, 2017, therefore vegetated bioswale and decomposed granite multipurpose trail. advertisement for construction by M2Environmental The trail will be about one mile in length and the bioswale will March 31, 2017. $1,000,000 in $1,690,000.00 $1,690,000.00 Grant be approximately 2,500 LF. Removal of asphalt will eliminate additional funding needed to runoff caused by impervious roadway, collect in the bioswale complete. and infiltrate into the soil. OC Fair $1,500,000.00 $1,500,000.00 Contribution Bicycle Racks at Public Parks/Facilities: new bicycle racks at Designs submitted to Caltrans for seven City facilities. The intent is to promote bicycle usage review and approval. Awaiting IFY13/14 1 citywide and customized bicycle rack designs for each facility. Caltrans approval. $39,050.00 $35,000.00 BCI Bike committee selected three bike Bicycle Rack Improvements Citywide: Installation of new custom racks for city hall and senior center. designed bicycle racks at various facilities within Costa Mesa. Following implementation additional locations will be identified. $50,000.00 FY16/17 page 1 CIP Status Project 2-3-2017 2/7/2017 11:19 AM -4� page 2 CIP Status Project 2-3-2017 2/7/2017 11:19 AM FUNDING ALLOCATED TO DATE (OR PROJECT STATUS UNENCUMBERED BALANCE WHERE NOTED) FY AMOUNT OF ANY GRANTS Bristol Street Projects: A,. B, C, D, & E (16-20): Project A = Bristol $400,000.00 HSIP Street Median Improvement (Bristol Street from Baker Street to Randolph Ave and 1-405 to Baker Street). Project B = Rehab of $800,000.00 Measure M2 Bristol and Bear (Bear from 1-405 Fwy to Northerly City Limits at $3,675,000.00 Wakeham Place and Bristol Street from 1-405 FWY to Randolph $300,000.00 Gas Tax Avenue. Project C=Santa Ana Delhi Channel Diversion Project Award 1/17 New funding; (From Randolph Ave to Baker Street). Project D = Bristol Street $330,000 from Traffic Signal Project (Bristol Street @ The Camp and Bristol City of Santa Ana Street @ Newport Blvd Southbound Frontage Road. Project E _ $600,000from Storm Drain Improvements at Randolph. Measure M2 (Unencumbered) $200,000.00 Drainage Fees CDBG Project: (2015-2016) Westside Improvements: This project consists of conducting field survey and preparation of FY15/16 $175,943.00 CDBG construction documents for the repair of curb and gutter and Design Phase rehabilitation of Bay and Pomona streets. unencumbered$127,600.50 balance FY16/17 $298,725.00 CDBG City Hall First Floor Improvements: Remodel of Council Chambers, Audio Visual Control Room, 1st Floor Restrooms, Conference Room 1A, Employee/Community Lounge, City Hall Design Phase Print Shop and the creation of an Outdoor Public Meeting space. unencumbered $2,582,000.00 balance Proposal received based upon JPA City Hall PA System Replacement pricing Additional $10,000 funding needed. $100,000.00 FY16/17 Citywide New Sidewalk and Parkway Maintenance Project (2015 $1,930,000.00 Gas rax 2016) (16-07) (Zones 14, 25, 26, and 27) Construction to begin February 2017 $1,930,000.00 FY15/16 Citywide School Zone Traffic Calming Project (15-04) : The Radar feedback flashers complete. intent of this project is to improve school zone safety with the School zone flashers complete. installation of speed feedback signs, pedestrian countdown Pedestrian countdown heads and timers, school zone flashers, and minor striping and signing modules to be installed. Adding ADA ramps & 2 Radar improvements citywide in Costa Mesa. Feedback signs on 19th St (CO2). $706,200.00 FY12/13 $706,200.00 SRZS Funds $450,000.00 FY12/13 Citywide Storm Drain Improvements (12-13): Project consists of - - _ Final design and environmental $885,000.00 FY16/17 -4� page 2 CIP Status Project 2-3-2017 2/7/2017 11:19 AM 4: N page 3 CIP Status Project 2-3-2017 2/7/201711:19 AM FUNDING ALLOCATED TO DATE (OR PROJECr STATUS UNENCUMBERED BALANCE WHERE NOTED) FY AMOUNT OF ANY GRANTS construction of an underground Storm Drain System at the south end of Fairview Park from Pacific Avenue to Canyon Drive. review under way Drainage $365,000.00 FY16/17 $365,000.00 Impact Fee Citywide Street Improvements Project: Provides major $1,400,000.00 $1,400,000.00 Measure "M2" rehabilitation to City streets which are in immediate need for improvement. The program is implemented in accordance with These projects are scheduled to be the Pavement Management System to meet the City Council advertised for construction in winterof 2017 $1,070,000.00 $1,070,000.00 Gas Tax Goal to reach and maintain an average Citywide Pavement Condition INdex (PCI) of 85 by 2017. Citywide Unimproved Alleys (15-16): Flower St Alley between Orange Ave and West End. Flower St. Alley between Orange Ave, and Santa Ana Ave. Broadway Alley between Orange Ave Design Phase $500,000.00 FY15/16 $500,000.00 Gas Tax and Westminster Ave. Broadway Alley between Westminster Ave and Santa Ana Ave. $500,000.00 FY16/17 $500,000.00 Gas Tax Citywide Way Finding Signage Program: This funding is for a comprehensive study citywide to identify points of interest and Project in design phase. Conceptual importance in order to establish the locations of directional plan developed. signs for guidance throughout the City. $50,000.00 FY14/1S Close Off Wall Openings at Various Locations: To close off openings that have historically been used for unintended uses; including illicit activities. CC has approved closing of several Design Phase locations along Victoria Street and one on Fairview Road at Dorset Lane. $160,000.00 FY16/17 East 19th Street (Safe Route to School) from Church Street to Irvine Avenue (16-17) Federal Project No. SRTSC-5312(089) Award 2/21 Funding from M2 will cover the balance of funding needs. FY13/14 $770,900.00 SRTS Fairview Park Delineation Fencing: This project addresses mitigation measures required by the Mitigated Negative On hold Declaration for the Fairview Park Master Plan. Unencumbered $60,000.00 Balance FYSS/16 Fairview Park Master Plan: North Bluff Trail & Habitat Staff is actively seeking grants for Restoration Project implementation of the various elements of the Master Plan. Ifuture $200,000.00 CA Parks 4: N page 3 CIP Status Project 2-3-2017 2/7/201711:19 AM W page 4 CIP Status Project 2-3-2017 2/7/2017 11:19 AM FUNDING ALLOCATED TO DATE (OR PROJECT STATUS UNENCUMBERED BALANCE WHERE NOTED) FY AMOUNT OF ANY GRANTS Review by Parks and Recreation Fairview Park Parking Lot Lighting: Funding for the design and Commission is scheduled to take installation Of energy-efficient parking lot lighting for the place early next year. Environmental parking lots west of Placentia Avenue. determination completed. Consultant completing PS&E's Unencumbered $650,000.00 Balance FY13/14 $335,000.00 FY12/13 Technical reports are being updated. park Fairview Park- Placentia Avenue Connector Trail: Replacing the Environmental document for trail Development existing eight foot asphalt trail with colored concrete. between Pacific and Canyon and $250,000.00 $250,000.00 Fund associated entryway improvements Bicycle underway. Corridor Improvement $835,959.00 Grant $835,959.00 Program Fairview Park- Rehabilitate park parking lot(s) Project being advertised for construction. $202,250.00 FY16/17 Fairview Park- Plant Establishment and Pond Maintenance Not yet started $100,000.00 FY16/17 Fairview Park Wetlands and Riparian Habitat Project: Complete Staff continues to pursue funding Year 5 of the maintenance &monitoring plan opportunities for additional habitat unencumbered restoration projects. $0.00 Balance FY15/16 Fairview Road HSIP Improvements -Adams to Baker: project provides improved traffic operations by restricting turning Submitted authorization to proceed $80,000.00 FY16/17 $63,000.00 Federal HSIP movements at various driveways and a new traffic signal at the with design request to CalTrans. intersection of Fairview Road and Village Way. $630,600.00 FY17/18 $567,540.00 Federal HSIP $20,000.00 FY13/14 Field Lighting Program at Various School Sites: Partnership with NMUSD has completed feasibility $40,000.00 FY14/15 the School District to install permanent sports lights. studies. Presentation to NMUSD Board scheduled for this month. Unencumbered $1,850,000.00 Balance FY15/16 Fire Station No. 1 Demolish Existing and Construct New Facilitity Construction tentatively scheduled to FY15/16 & (16-16) begin March 2017 $8,400,000.00 FY16/17 $15,000 expended to date, and $25,000 next 30 to 60 days. Then Fire Station #2-6: Critical Infrastructure Protection balance will go toward ballistic glass security system. $20,000 proposed for each year from FY17-18 through FY19-20. 1 $60,000.00 funding FY16/17 W page 4 CIP Status Project 2-3-2017 2/7/2017 11:19 AM PROJECT STATUS FUNDING ALLOCATED TO DATE (OR UNENCUMBERED BALANCE WHERE NOTED) FY AMOUNT OF ANY GRANTS Fire Station No. 4 Parking Lot Rehabilitation: Creates new handicapped parking stalls, ADA path of travel to the building, Project scheduled to be advertised and rehabilitation of the parking lot pavement. February 2017 Unencumbered$330,000.00 Balance FY15/16 Harbor Blvd & Gisler Ave Intersection Improvement (16-02): project to construct an additional eastbound optional through- Construction to begin February 2017, left turn lane at this intersection. This requires widening of coordinating with multiple utility Gisler Avenue on the south side just west of the intersection. relocations, SCE to realign mainline The work requires traffic signal modification and prior to construction undergrounding of one Southern California Edison power pole. $756,086.00 FY15-16 $496,538.00 Measure "M2" Civil Source selected for design Harbor Boulevard Medians - Wilson Street to 19th Street: services. Consultant has completed Construction of raised landscaped medians and consolidates left the design concepts and rendering turn access, improves overall traffic operations. Design phase forthe public outreach meetings. includes detailed studies of all driveways and outreach to Meetings held with five major adjacent businesses in determining the median locations. property owners. Public meeting held on August 16th, comments received and are being addressed. $1,088,100.00 $528,100.00 HSIP Harbor/SouthCoast Intersection Improvements -Design: The intersection of Harbor Boulevard - South Coast Drive On hold (Request for Proposals for PE experiences significant congestion during morning and evening phase to be issued.) Funds to be peak periods and is at Level of Service D. carried -over in a few weeks. Traffic Impact $200,000.00 FY15/16 $200,000.00 Fees Hyland/MacArthur Intersection Improvements - Design To be completed in next two to three months. $37,500.00 $37,500.00 M2 1-405 Widening: Could be May orJune ground breaking. Will Design review work expected in mid have major traffic impact on city. 2017 (CalTrans Design/Build) Grant application submitted Jack Hammett Sports Field Improvements: FY15/16 funding was November 1, 2016 to the California lif $2500,000.00 FY15/16i to design and contruct two synthetic turf fields. Additional Department of Parks and Recreation Park funding for FY16/17 to fund accessible walkways and restroom for the installation of sports turf to $2370,965.00 FY16/17 Development $2,370,965.00 Fund expansion. replace the grass. This project is scheduled to be advertised in the spring 2017. Unencumbered $275,000.00 Balance FY16/17 $275,000.00 CDBG Project in Design Phase. Lions Park Projects: Demolish NCC, construction of a new Construction anticipated to start in library and renovating/repurposing the existing library facility t0 July 2017. become the new NCC. $351,000.00 FY16/17 $300,000.00 Gas Tax '� pages CIP Status Project 2-3-20172/7/201711:19 AM page 6 CIP Status Project 2-3-2017 2/7/2017 11:19 AM FUNDING ALLOCATED TO DATE (OR PROJECT STATUS UNENCUMBERED BALANCE WHERE NOTED) FY AMOUNT OF ANY GRANTS Median Landscape and Irrigation Improvements (16-19): On Construction tentatively scheduled - Mesa Verde Drive from Adams Ave West to Adams Ave East. for February 2017 $606,127.00 FY14/15 Newport Blvd Landscape Improvements: The Newport Boulevard frontage roads between 19th Street and Bristol Topo Survey completed, Conceptual Street include a number of areas adjacent to the SR-55 Freeway Design Phase completed, Design that remain unimproved and the parkways do not include Development Phase underway - 90% planter/bufffers between the traveled ways and the sidewalk. design to City in January 2017 unencumbered $25,000.00 Balance FY15/16 Newport Boulevard Widening Design - 19th Street to 17th Street: the intent of the proposed project is to design the widening of southbound Newport Boulevard within the subject Design on hold. Request delay of $281,250 Measure M2 limits to address operational deficiencies and accommodate project to fy 17/18 Traffic Impact current and projected traffic volumes. $656,250 FY16/17 $375,000 Fees Old Newport Blvd Rehab Project Construction phase on hold pending (N/B from 16th St to 15th St) funding allocation. Open Space Master Plan Update: The Parks and Recreation Commission and City staff rely upon this document as a Presentation to the Parks and planning tool to carry out the City's General Plan's Open Space Recreation Commission tentativelyscheduled for March 2017 unencumbered and Recreation element's goals and policies. $31,630.00 Balance FY14/15 Park Security Lighting: This project replaces deteriorated or missing security lighting around the lakes at TeWinkle Park and TeWinkle Park scheduled to be Park Shiffer Park. advertised February 2017 unencumbered Development at $375,069.34 Balance FY13/14 $424,699.00 Fund $212,531.00 CMAQ (BCIP) Placentia Avenue Bicycle Signal Installation (14-01) Order negotiation with bonding company to replace contractor. $244,288.00 FY13/14 $31,757.00 AQMD Placentia Avenue Median Project: construction of landscaped median on Placentia between Adams and Wilson. This will improve the streetscape adjacent to Fairview Park and Estancia FY15/16 $400,000.00 Gas Tax High School, and also improve the traffic operations on the Consultant has finalized plans. street. Awaiting CalTrans approval. $1,579,700.00 FY13/14 $729,700.00 HSIP Police Department and Fire Station #4 Generator Replacement Design in progress unencumbered $600,000.00 Balance FY15/16 Project V - community based transit Agreements being finalized for 1 approval by Council in February. $3,100,700.00 FY16/17 $2,790,630.00 Measure M2 page 6 CIP Status Project 2-3-2017 2/7/2017 11:19 AM bN page 7 CIP Status Project 2-3-2017 2/7/2017 11:19 AM FUNDING ALLOCATED TO DATE (OR PROJECT STATUS UNENCUMBERED BALANCE WHERE NOTED) FY AMOUNT OF ANY GRANTS Selected CNC Engineering for Red Hill Avenue Median Project: construction of landscaped designing the proposed medians between McCormick Avenue and Bristol Street. improvements (median) along RedHill. Awaiting CalTrans approval. $871,300.00 $93,100.00 City Match $778,100.00 HSIP Security Camera Project: furnishing, installing, programming, licensing, integrating, testing, and the commissioning of closed Design Phase circuit video cameras and related equipment at five City owned locations in Costa Mesa. Unencumbered $275,000.00 Balance FY15/16 Senior Center ADA Restroom Improvements: Renovation and accessibility enhancements of two staff restrooms on the 1st floor; two men's and two women's public restrooms on the 1st Preparing Request for Proposal floor and 2nd floor. Based on a Compliance Assessment report (RFP's) completed in 2015. $125,000.00 FY16/17 Tanager Bike Trail Improvements: Segment 1 of the Bike Trail Rehabilitation project which will introduce a new loft wide PCC concrete bike trail with integral colored concrete from Harbor Blvd. to Harla Ave.- City to match color of new Harbor Bike Trail Project being advertised. Improvement Project recently completed. Second and final segment of the trail between Harla Ave. and Golf Course Dr. to include slurry seal and localized asphalt concrete dig -outs. 30% Tewinkle Park -Skate Park Expansion: The expansion is to provide a dedicated area of approximately 12,000 to 15,000 square feet foryoung/beginner skaters. It will enlist the q Conceptual Design Phase, public $so,000.00 Fv15/16 support and collaboration of the skating community to come up outreach and coordination with the with the ideal layout for the proposed expansion and its skating community to start in integration with the existing facility. The FY15/16 funding for February 2017 Skate Park II has been repurposed toward the engineering for this expansion project. Unencumbered $20,000.00 Balance FY16/17 Traffic Signal Modification Project- Bakerto Coolidge Haven't started yet. unencumbered $50,000.00 Balance FY16/17 Traffic Signal Coordination Project - Fairview Road Project on hold. Request to delay project to 17/18. $2,074,745.00 FY16/17 $1,949,149.00 M2 Traffic Signal Coordination Project - Bristol Street Design being finalized $706,916.00 FY16/17 $581,520.00 M2 bN page 7 CIP Status Project 2-3-2017 2/7/2017 11:19 AM V page 8 CIP Status Project 2-3-2017 2/7/201711:19 AM FUNDING ALLOCATED TO DATE (OR PROJECT STATUS UNENCUMBERED BALANCE WHERE NOTED) FY AMOUNT OF ANY GRANTS Implementation completed for City Traffic Signal Coordination Project - Newport Blvd intersections; Caltrans intersections pending $735,000.00 FY16/17 $650,000.00 M2 Traffic Signal Coordination Project - Harbor Boulevard Implementation in progress $1,097,214.00 FY16/17 $917,620.00 M2 Traffic Signal Installation - Baker to Randolph Design to be initiated. Unencumbered $250,000.00 Balance FY16/17 M2 TraffiCSignal Coordination Project- Sunflower Avenue Under design $725,000.00 $617,960.00 M2 W 17th Widening - Placentia to Superior (Design) Conceptual plans submitted byconsultant $325,000.00 $262,500.00 M2 Environmental analysis is underway. Draft Preliminary Environmental West 19th Bicycle Trail Project: Provides for the design and Study (PES) submitted to Caltrans. construction of a new bicycle trail connecting West 19th Street Field Review meeting conducted with and the Santa Ana River trail system. Caltrans, design and environmental consultants. Preparation of 70% plans underway. $2,100,000.00 $1,700,000.00 ATP Wilson Street Widening Design -College Avenue to Fairview Road: Wilson Street is designated as a Secondary Arterial according to the Orange County Transportation Authority's Master Plan of Arterial Highways as well as the City General Project on hold. Request delay of Plan Circulation Element and the proposed project will design project to FY 17/18 $281,250 Measure M2 Wilson Street to the recommended roadway capacity and Traffic impact geometrics. $631,250.00 FY16/17 1$350,000 Fees ,Maintenance Services CIP Projects: Balearic.Community Center: Replace Electrical Service Waiting on spec revisions from Consultant $45,000.00 FY12113 Building Modification Projects Several underway: approximately 40% complete $407,400.00 FY16/17 City Hall - 4th Floor Interior Painting Project underway. $80,000.00 FY15/16 City Hall - 4th Floor Carpet & Moving Project underway. $164,000.00 FV15/16 Corp Yard Fleet Install Emergency Generator & Transfer Switch $90,000.00 FY14/15 V page 8 CIP Status Project 2-3-2017 2/7/201711:19 AM _r_ M w page 9 CIP Status Project 2-3-2017 2/7/201711:19 AM FUNDING ALLOCATED TO DATE (OR PROJECT STATUS UNENCUMBERED BALANCE WHERE NOTED( FY AMOUNT OF ANY GRANTS Corp Yard/Police Facility - Replace automated fuel dispensing authorization and tracking system Project underway. $132,000.00 FY16/17 Corporation Yard - Replace four fuel dispensers Specifications being developed $50,000.00 FY16/17 Temporary patch completed. Need DRC - Repair Pool Plaster to request additional funds for FY17- 18 to replaster entire pool $100,000.00 FY14/15 Paularino Park -Replace Picnic Shelter: To replace the deteriorating wood shelter with a prefabricated steel structure. This project also replaces the concrete area underneath the Po issued on shelter shelter. $70,000.00 FY16/17 Pinkley Park- Replace arbor: To replace the deteriorating wooden and concrete arbor at Pinkley Park with a pre- waiting on PO approval fabricated steel structure. $150,000.00 FY16/17 Senior Center - Design and Construct New Exterior Front Patio RFP Development $32,000.00 FY15/16 $32,000.00 CDBG Senior Center- Restroom Renovations Design RFP Development $25,000.00 FY15/16 $25,000.00 CDBG Tewinkle Park - Replacement of Pedestrian Bridges: Replaces three wooden bridges with steel bridges. Design Phase $100,000.00 FY15/16 Update Streetscape Standards Purchasing reissued PO with David Volz to extend contract $25,000.00 FY14/15 _r_ M w page 9 CIP Status Project 2-3-2017 2/7/201711:19 AM Attachment 2J CITY OF COSTA MESA Parks & Community Services Department MEMORANDUM TO: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR FROM: JUSTIN MARTIN, RECREATION MANAGER DATE: JANUARY 26, 2017 SUBJECT: MOBILE RECREATION PROGRAM EXPENSE AND FUNDING The purpose of this memo is to provide important background information and fiscal implications that are related to the addition of a Mobile Recreation Program in the City of Costa Mesa. BACKGROUND On January 17, 2017, City Council voted 4-1, in favor of implementing a Mobile Recreation Program in the City of Costa Mesa. A mobile recreation program, in simple terms, refers to a traveling playground program on wheels that provides enrichment opportunities through both structured and unstructured recreational and educational activities, in areas of the community that may have insufficient access to, or financial constraints to, City programs and/or parks. A program such as this will generally consist of a van -size vehicle full of items like: athletic equipment, arts and craft supplies, games and puzzles, tables and chairs and healthy snacks. The Mobile Recreation Program is not a new idea in Costa Mesa. This program previously existed and served the City's youth and tween population for up -to five days per week during the school year and during summer break. The program successfully operated for several years and saw growth in both participation and expense each year. In fiscal year 2008-2009, the program was unfortunately eliminated due to budget constraints. The program is generally administered on location by several part-time staff members that report to a full-time Department staff member. From a historical financial standpoint, past total operating expenses of this program in the City have ranged from $50,000 to $95,000 annually, depending on the total number of program hours per week and season. This program was previously identified as fully supported within approved Cost Recovery Guidelines for Recreation Activities and was therefore free to all participants. PROGRAM EXPENSE Includes the purchase of a new fleet vehicle that is outfitted with interior shelving to fit the needs of the program, staffing costs, administrative costs, supplies, health and safety items, etc. Total New Vehicle Expense (one-time): $41,939.39 o Cost of Vehicle Purchase: $32,815.39 o Cost to Outfit Interior: $3,762 o Annual Maintenance/Fuel/Labor: $2,362 o Vehicle Wrap Cost: $3,000 Page 1 Total Staffing Expense (4 part-time staff): $51.124 o Recreation Leader II: 3 Staff • Total # of hours annually: 832 per each staff • Hourly Rate: $11.91 • Annual Salary w/ Benefits: $10,281 per each staff o Recreation Leader III: 1 Staff • Total # of hours annually: 1040 • Hourly Rate: $14.42 • Annual Salary w/ Benefits: $20,281 Total Program Supply Expense: $10,250 o Stationary/Office Supplies: $500 o Small Tools and Equipment: $2,500 o Uniforms and Clothing: $300 o Safety and Health: $3,000 o Professional Development: $300 o Recreation (equipment): $3,500 o Telephone/Radio: $150 Total Program Expense: $103,313.39 Additional Considerations: • This option will require a major purchase for anew vehicle. • Year two total costs will decrease by approximately $39,500. • This option will not require a Class B driver's license by staff. FUNDING SOURCE Currently, the mobile recreation program is unbudgeted. If Council should choose to continue with the addition of the program, then staff recommends that funding be allocated from the City's reserve fund to pay for the expense. Parks & Community Services Department staff can continue to seek public/private sponsorship funding as a means to off -set program related expenses. Please let me know if you have any questions. Justin Martin Recreation Manager Page 2 5G, SUBJECT: FIVE-YEAR FINANCIAL PLAN UPDATE DATE: FEBRUARY 14, 2017 - REVISED FEBRUARY 28, 2017 FROM: FINANCE DEPARTMENT FOR FURTHER INFORMATION CONTACT: STEPHEN DUNIVENT (714) 754-5243 RECOMMENDATION: Attachment 3 1. Receive and file the Five-year Financial Plan 2. Provide direction to staff regarding the issues raised in connection with the Five-year Financial Plan and future priorities BACKGROUND: The last five-year financial plan was presented to Council on February 16, 2016. That plan forecasted a deficit of $3,557,041 in year five. Since that time, FY 15-16 was completed and a balanced budget for FY 16-17 was adopted. This report will recap the major assumptions and results of the updated five-year financial plan. ANALYSIS: Updated revenue and expense projections are based on current budget, prior year actual trends and various assumptions as described in the following sections of this report. Revenue assumptions • Sales Tax grows from the current $54,600,000 to $61,993,000 in year five at an annual growth rate ranging from 0.5% to 2.3% based on the most recent HdL forecast prepared specifically for the local Costa Mesa economy. • Property Tax grows from $25,925,102 to $32,422,168 in year five at a 3.75% annual growth rate. • Transient Occupancy Tax grows from $8,531,000 to $10,132,152 in year five at a 3.5% annual growth rate at the current 8% tax rate. • Building permits and plan check fees are forecasted to decline by 10% for two years; then grow slowly thereafter. The plan currently excludes any impact of the changes in use of the current and future Ganahl Lumber sites. • Golf course operations continue at the current level for five years • No tax or fee increases are included. • Overall revenues grow by an average of 2.7% per year reaching $134,756,066 by year five. Employee costs • Assumes the following regarding staffing levels: o Continuation of the budgeted 6% rate for vacant positions o Addition of six positions for the Fire Department approved on January 3, 2017. Overtime costs are reduced accordingly. o Further changes related to emergency medical transportation are not included at this time pending future Council consideration. EA Five-year Financial Plan I page 1 Initial reduction of six vacant positions related to the outsourcing of parks maintenance and landscape work. A second year reduction of the final six positions based on attrition is also included. An additional one position per year is included to accommodate any City-wide service needs that may occur in the future. • Annual cost of living adjustments for all employee groups. The anticipated agreement with CMCEA is included. • Reduction in part-time costs by 5% per year as more vacant positions are filled • Retirement rates based on the latest CalPERS valuations and current employee cost sharing arrangements. The plan includes the conversion of the Miscellaneous and Police groups annual required contribution to a percentage plus fixed dollar amount forthe unfunded liability amortization. It also assumes the additional $500,000 per year for the accelerated payment of the Fire side fund amortization and retirement cost to all part-time position costs. Recognizes implementation of the CalPERS risk mitigation plan and the January 19, 2017 announcement by CalPERS (Attachment 3C) of the three-year phase in of the reduction to the discount rate from 7.5% to 7%. This report uses the mid-range cost increase impact provided by CalPERS which is 0.5% to 3.5% of payroll for normal cost and 2.5% to 17.5% of the unfunded liability annual payment. • Continues additional annual $250,000 contribution to the Self -Insurance fund to improve that fund's balance. • Total employee costs increase by about 5.3% per year. Other operating expenses • Reflects the anticipated net annual savings of $257,018 for the outsourcing of parks maintenance and landscape work consistent with the October 4, 2016 report to Council. • Reduces consulting by 5.5% per year reflecting the plan to fill additional vacant positions. Debt All required existing debt principal and interest payments continue to be made on schedule. The plan also reflects the continuation of payments for future debt at the same payment level of the 2003 Certificates of Participation after their payoff as presented in the Lions Park/Fire Station 1 financing plan. The Contingency account of $1,000,000 per year is reduced to $500,000 beginning FY 17-18 Capital expenses: This plan continues the annual $200,000 allocation for future IT replacements. It also includes the requirements of the Capital Asset Needs ordinance setting aside 5% of general fund revenues for capital projects and 1.5% for capital facilities projects. This combined 6.5% would provide $41,725,187 over the five years or an average of $8,345,037 per year. However, this plan contemplates the sunset of the 1.5% portion of these funds after FY 19-20 when funds are accumulated for the Lions Park projects. The current seven-year capital improvement plan includes projects that total $275,395,960 or an average of $39,342,000 per year before any adjustment for construction cost inflation. On a pay as you go basis, annual prioritization of capital projects and continued seeking of grant funds will be necessary. Surplus/Deficit • Due to the forecast of expenses increasing at a faster rate than revenues, there are deficits forecasted for each year; $8,292,681 by year five. 62. Five-year Financial Plan I page 2 These projected deficits will need to be addressed through the annual budget process and could involve a combination of several strategies including: • Cost reductions of lower priority items Re -shaping service delivery • Revisiting the capital asset needs (CAN) ordinance • Revisiting the annual budgeted contingency amount • Updating fees for full cost recovery • Implementing new fees • Exploring other revenue enhancements Reserves • This plan leaves reserves intact and does not contemplate using reserves to fund operating expenses or to balance the plan in future years. CONCLUSIONS: This updated Five-year Financial Plan is based on realistic and conservative revenues and expense assumptions. It serves as a foundation for the annual budget process as well as an opportunity for policy discussions including: • The pace of growth for the city and the services it provides • Alternatives for the current number of vacant positions • Future Sales Tax and Transient Occupancy Tax rates • Future modification of fees and billing rates Attachments: 3A. High-level summary 3B. Intermediate Summary 3C. CalPERS letter—Discount Rate Change 3D. Projected CaIPERS rates Five-year Financial Plan I page 3 Total Revenues Annual Percentage change Employee Cost Maintenance & Operations Debt Service Contingency Transfers Fixed Assets/Equipment/IT Replacement Capital Improvements City Facilities Improvement Total Expenditures Annual Percentage change Surplus/(Deficit) Attachment 3A 4.3% 2.2% 2.5% 2.5% 2.5% 69,282,219 CITY OF COSTA MESA - FIVE YEAR FINANCIAL PLAN 71,676,835 74,136,746 76,381,115 80,881,739 84,437,777 89,572,745 General Fund 99,967,764 104,567,195 15,969,918 20,170,385 19,808,025 19,907,748 High -Level Summary 22,761,915 24,538,058 24,893,095 25,280,175 25,664,544 FY 11-12 FY 12-13 FY 13-14 FY 1415 FY 15-16 FY 16-17 FY 1748 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Actual Actual Actual Actual Actual Adopted Forecast Forecast Forecast Forecast Forecast $ 95,669,988 $ 106,020,833 $ 107,401,115 $ 112,983,458 $ 122,397,193 $ 1.17,392,897 $ 122,415,139 $ 125,112,645 $ 128,233,545 $ 131,408,552 $ 134,756,066 4.3% 2.2% 2.5% 2.5% 2.5% 69,282,219 69,489,916 71,676,835 74,136,746 76,381,115 80,881,739 84,437,777 89,572,745 94,160,261 99,967,764 104,567,195 15,969,918 20,170,385 19,808,025 19,907,748 20,690,753 22,761,915 24,538,058 24,893,095 25,280,175 25,664,544 26,081,526 5,372,777 3,832,025 3,521,623 3,514,579 3,518,316 3,735,493 3,720,865 3,715,384 3,696,362 3,699,464 3,693,199 - 193,717 20,113 - - 1,000,000 500,000 500,000 500,000 500,000 500,000 33,804 2,684,946 5,572,511 10,814,636 8,934,119 44,544 44,544 44,544 44,544 44,544 44,544 2,272,639 1,503,897 2,031,336 782,089 2,002,850 1,216,964 1,262,344 1,299,961 1,339,459 1,380,932 1,424,479 - - - - - 5,963,263 6,120,757 6,255,632 6,411,677 6,570,426 6,737,803 - - - - - 1,788,979 1,836,227 1,876,690 1,923,503 - - $ 92,931,356 $ 97,874,886 $ 102,630,442 $ 109,157,798 $ 111,527,152 $ 117,392,897 $ 122,460,571 $ 128,158,051 $ 133,355,982 $ 137,827,676 $ 143,048,747 4.3% 4.7% 4.1% 3.4% 3.8% $ 2,738,632 $ 8,145,947 $ 4,770,672 $ 3,825,661 $ 10,870,040 $ $ (45,433) $ (3,045,406) $ (5,122,437) $ (6,419,124) $ (8,292,681) Attachment 36 Regular Salaries $ CITY OF COSTA MESA - FIVE YEAR FINANCIAL PLAN $ 36,964,019 $ 37,450,971 $ 37,727,587 $ 38,257,223 $ 41,572,669 $ 42,633,646 $ 43,200,064 $ 44,150,150 $ 45,128,185 $ General Fund Retirement 13,876,454 14,084,805 15,599,620 16,928,366 18,003,320 20,948,417 22,452,182 26,600,438 Summary 34,056,869 37,376,061 Other Pay&Benefits 17,025,652 18,441,092 18,626,243 FY 11-12 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 Actual Actual Actual Actual Actual Adopted Forecast Forecast Forecast Forecast Forecast Sales &Use Tax $ 42,23,307 $ 45,830,110 $ 49,264,633 $ 51,115,064 $ 57,593,561 $ 54,600,000 $ 56,906,000 $ 58,196,000 $ 59,415,000 $ 0,682,000 $ 61,993,000 Property Tax 20,591,798 23,172,595 22,821,008 24,058.820 25,998,070 25,925,102 28,356,145 29,240,946 30,262,621 31,322,550 32,422,168 Transient Occupancy Tax 6,524,510 7,257,695 7,676,090 7,995,155 8,622,505 8,531,000 8,829,585 9,138,620 9,458,472 9,789,519 10,132,152 Franchise Fee's 4,471,325 4,818,970 4,891,465 4,885,926 5,060,402 4,961,156 4,863,473 4,902,473 4,942,131 4,982,457 5,023,465 Licenses&Permits 1,630,901 1,723,297 1,778,622 1,970,946 2.584,241 2,173,933 2,246,258 2,083,859 2,129,950 2,177,491 2,226,540 Fines & Forfeitures 1,544,335 1,506,940 1,216,018 1,204,868 1,530,045 1,475,000 1,426,600 1,458,232 1,490,797 1,524,322 1,558,835 Use of Money & Property 3,412,897 2,888,003 4,228,621 4,392,138 4,085,050 3,164,021 3,135,249 3,144,998 3,155,208 3,165,901 3,177,100 Vehicle License Fee Swap -Property Tax 8,594,278 8,814,644 9,229,059 9,481,340 9,982,948 9,954,688 10,251,889 10,558,005 10,873,305 11,198,065 11,532,567 Fee's& Charges for Services 3,823,258 3,783,376 3,710,792 3,832,961 3,964,345 3,848,308 3,904,449 3,924,904 4,012,194 4,103,094 4,197,773 Al Other Revenue's 2,835,319 6,225,055 2,584,679 4,046,056 2,575,520 2,759,689 2,495,491 2,464,607 2,493,867 2,463,154 2,492,467 Total Revenues $ 95,662,928 $ 106,020,685 $ 107,400.989 $ 112,983,274 $ 121,996,687 $ 117,392,897 $ 122,415,139 $ 125,112,645 $ 128,233,545 $ 131,408,552 $ 134,756,066 Budgeted Positions Count 497 465 466 477 478 479 480 475 476 477 478 Filled Positions 1,788,979 408 396 460 461 451 452 453 454 Regular Salaries $ 38,380,113 $ 36,964,019 $ 37,450,971 $ 37,727,587 $ 38,257,223 $ 41,572,669 $ 42,633,646 $ 43,200,064 $ 44,150,150 $ 45,128,185 $ 46,118,236 Retirement 13,876,454 14,084,805 15,599,620 16,928,366 18,003,320 20,948,417 22,452,182 26,600,438 29,742,232 34,056,869 37,376,061 Other Pay&Benefits 17,025,652 18,441,092 18,626,243 19,482,793 20,120,572 18,360,653 19,351,949 19,772,243 20,267,879 20,782,711 21,072,898 Maintenance & Operations 15,969,918 20,170,385 19,808,025 19,907,748 20,690,753 22,761,915 24,538,058 24,893,095 25,280,175 25,664,544 26,081,526 Debt Service 5,372,777 3,832,025 3,521,623 3,514,579 3,518,316 3,735,493 3,720,865 3,715,384 3,696,362 3,699,464 3,693,199 Contingency - 193,717 20,113 1,000,000 500,000 500,000 500,000 500,000 500,000 Total Operating Expenses $ 90,624,913 $ 93,686,044 $ 95,026,595 $ 97,561,073 $ 100,590,184 $ 108,379147 $ 113196699 $ 118,681,224 $ 123.636,798 $ 129.831.772 $ 134,841,921 Transfers - Non-CapBal $ 33,804 $ 2,684,946 $ 5,572,511 $ 10,814,636 $ 8,934,119 $ 44,544 $ 44,544 $ 44,544 $ 44,544 $ 44,544 $ 44,544 Surplus/(Deficit) $ 5,004,211 $ 9,649,696 $ 6801,883 $ 4,607,565 $ 12,472385 $ 8,969206 $ 9,173,895 $ 6,386.877 $ 4.552,203 $ 1,532.236 $ (130398) Capital: Fixed Assets $ 579,391 $ 520,297 $ 800,292 $ 428,858 $ 1,163,383 $ 272,282 $ 310,000 $ 310,000 $ 310,000 $ 310,000 $ 310,000 Equipment Replacement Cost 1,693,248 983,600 1,231,044 253,231 689,465 744,682 752,344 789,961 829,459 870,932 914,479 IT Replacement Cost - - - 100,000 150,002 200,000 200,000 200,000 200,000 200,000 200,000 Capital Improvement Project - - - - - 5,963,263 6,120,757 6,255,632 6,411,677 6,570,428 6.737,803 City Facilities Improvement 1,788,979 1,836,227 1,876,690 1,923,503 Total Needs $ 2,272,639 $ 1,503,897 $ 2,031,336 $ 782,089 $ 2,002,850 $ 8,969,206 $ 9,219,328 $ 9,432,283 $ 9,674,640 $ 7,951,360 $ 8,162,282 Additional Capilal Financing Total Operating& Capital Surplus/(Deficit) $ 2,731,572 $ 8,145,799 $ 4,770,547 $ 3,825,476 $_ 10,469,535_$_ _ _ _ $ (45,433) $ (3,045,406) $ (5,122,437) $ (6,419,124) $ (8,292,681) r� ,&0* &,._ CAPERS California Public Employees' Retirement System P.D. Box 942715 Sacramento, CA 94229-2715 (888) CalPERS(or 888-225-7377) TTY: (877) 249-7442 www.calpers.m.gov To: All Public Agency Employers Subject: Discount Rate Change Attachment 3C Actuarial Circular Letter January 19, 2017 Circular Letter: 200-004-17 Distribution: VI The purpose of this Circular Letter is to inform you of recent changes to the CaIPERS discount rate assumption and the impact these changes are expected to have on required employer and PEPRA member contributions. This Circular Letter will assist you in calculating projected pension cost increases in future years. The June 30, 2016, annual valuations will provide updated projections of expected future year pension contributions. These reports will be available this summer. At the December 21, 2016, meeting, the CalPERS Board of Administration approved lowering the CaIPERS discount rate assumption, the long-term rate of return, from 7.50 percent to 7.00 percent over the next three years. This will increase public agency employer contribution costs beginning in Fiscal Year 2018-19. The phase-in of the discount rate change approved by the Board for the next three Fiscal Years is as follows: Valuation Date Fiscal Year for Required Contribution Discount Rate June 30, 2016 2018-19 7.375% June 30, 2017 2019-20 7.25% June 30, 2018 2020-21 7.00% Lowering the discount rate means plans will see increases in both the normal costs (the cost of pension benefits accruing in one year for active members) and the accrued liabilities. These increases will result in higher required employer contributions. In addition, active members hired after January 1, 2013, under the Public Employees' Pension Reform Act (PEPRA) may also see their contribution rates rise. 5l0- Circular Letter: 200-004-17 January 19, 2017 The benefits of reducing the discount rate include: • Strengthening long-term sustainability of the fund • Reducing negative cash flows; additional contributions will help to offset the cost to pay pensions • Reducing the long-term probability of funded ratios falling below undesirable levels • Improving the likelihood of CalPERS investments earning our assumed rate of return • Reducing the risk of contribution increases in the future from volatile investment markets Results Employer contribution increases as a result of the discount rate changes are estimated below by Normal Cost and required Unfunded Accrued Liability (UAL) payment. The Total Employer Contribution is the sum of the Normal Cost Rate applied to reported payroll plus the Unfunded Accrued Liability payment. The Normal Cost portion of the Employer Contribution is expected to increase by the listed percentages of payroll. Increases to the UAL payments are provided as relative increases to be applied to the projected UAL payments in the June 30, 2015, valuation report. The changes to the Unfunded Accrued Liability (UAL) due to changes of actuarial assumptions are amortized over a fixed 20 -year period with a 5 -year ramp up at the beginning and a 5 -year ramp down at the end of the amortization period. The 5 -year ramp up means that the payments in the first four years of the amortization schedule are 20 percent, 40 percent, 60 percent and 80 percent of the ultimate payment, which begins in year five. The 5 -year ramp down means that the reverse is true and the payments in the final four years are ramped down by the above percentages. A new ramp is established with each change to the discount rate. There will be three ramps established in the first three years. As a result of the 5 -year ramp up and effective date of the increase, it will be seven years until the full impact of the discount rate change is completely phased in. The shaded rows above are the expected increases beyond the five year projection quoted in your June 30, 2015, valuation report. Page 2 of 3 67, Normal Cost UAL Payments Fiscal Year Misc. Safety Misc. Safety Valuation Date Impact Plans Plans Plans Plans 6/30/2016 2018-19 0.25%- 0.75% 0.5%-1.25% 2%-3% 2%-3% 6/30/2017 2019-20 0.5%-1.5% 1.0%-2.5% 4%-6% 4%-6% 6/30/2018 2020-21 1.0%-3.0% 2.0%-5.0% 10%-15% 10%-15% 6/30/2019 2021-22 1.0%-3.0% 2.0%-5.0% 15%-20% 15%-20% 6/30/2020 2022-23 1.0%-3.0% 2.0%-5.0% 20%-25% 20%-25% 6/30/2021 2023-24 1.0%-3.0% 2.0%-5.0% 25%-30% 25%-30% 6/30/2022 2024-25 1.0%-3.0% 2.0%-5.0% 30%-4 30%-40% The changes to the Unfunded Accrued Liability (UAL) due to changes of actuarial assumptions are amortized over a fixed 20 -year period with a 5 -year ramp up at the beginning and a 5 -year ramp down at the end of the amortization period. The 5 -year ramp up means that the payments in the first four years of the amortization schedule are 20 percent, 40 percent, 60 percent and 80 percent of the ultimate payment, which begins in year five. The 5 -year ramp down means that the reverse is true and the payments in the final four years are ramped down by the above percentages. A new ramp is established with each change to the discount rate. There will be three ramps established in the first three years. As a result of the 5 -year ramp up and effective date of the increase, it will be seven years until the full impact of the discount rate change is completely phased in. The shaded rows above are the expected increases beyond the five year projection quoted in your June 30, 2015, valuation report. Page 2 of 3 67, Circular Letter: 200-004-17 January 19, 2017 To illustrate how this table can be used as a guide to include the change in the discount rate in the calculation of pension contributions, a Miscellaneous plan with a current normal cost of 15 percent of payroll can expect an increase to 15.25 percent to 15.75 percent of payroll in the first year (Fiscal Year 2018-19), and 16 percent to 18 percent in the fifth year (Fiscal Year 2022- 23). For the UAL payment, a plan with a projected payment of $500,000 in Fiscal Year 2018-19 and $600,000 in Fiscal Year 2022-23 can expect the revised payment to be $510,000 - $515,000 ($500,000x2.00%/$500,000x3.00%) for Fiscal Year 2018-19, and $720,000 - $750,000 ($600,000x20%/$600,000x25%) for Fiscal Year 2022-23. These estimated increases incorporate both the impact of the discount rate change and the ramp up. Please keep in mind the above table is a tool for you to calculate broad estimates and should only be used as a general guide. The annual valuation report that will be released this summer will provide updated projections for your specific plan. If you have any questions about the information provided or how to apply it to your current valuations, please call our CalPERS Customer Contact Center at 888 WIPERS (or 888-225-7377) and ask to have your plan actuary contact you. Scott Terando Chief Actuary Page 3 of 3 M Attachment 3D City of Costa Mesa CalPERS Actuarial Valuation Reports As of June 30, 2015 For FY 2017-18 Rates & Payments Summary of Information and amended by the estimated impact of the discount rate change CalPERS Investment Return: FY 2011 - 2012 FY 2012 - 2013 FY 2013 - 2014 FY 2014 - 2015 FY 2015 - 2016 0.1% 13.2% 17.7% 2.4% 0.0% Fire (tier 1, 2 Misc. Police & PEPRAI Plan's Funded Status $ 238,339 $ 771,917 Entry Age Normal Accrued Liability $ 253,429,706 $ 264,801,528 $ 181,576,082 $ 699,807,316 Market Value of Assets (MVA) $171,628,895 $ 162,192,432 $ 119,804,913 $ 453,626,240 Unfunded Liability (MVA Basis) $ 81,800,811 $ 102,609,096 $ 61,771,169 $ 246,181,076 Funded Ratio (MVA Basis) 67.7% 61.3% 66.0% 64.8% (Note: Unfunded liability will increase as a result of the discount rate change.) 1,899,456 $ Employer Contribution Rates (before cost sharing) $ 3,661.281 Fire Tier 1 $ FY 2012 - 2013 21.803% 36.286% 37.404% 920,123 FY 2013 - 2014 27.383% 38.542% 45.618% $ FY 2014 - 2015 29.783% 41.456% 47.452% Prepayment Option (4) (Amounts will change with the discount rate change) FY 2015 - 2016 32.808% 46.591% 54.114% $ FY 2016 - 2017 - 35,231% 55.611% 59.702% 6,330,480 FY 2017 - 2018 (1) 35.765% 59.414% 64,327% $ FY 2018 - 2019 39.808% 67.441% 71.697% Prepayment Amount FY 2019 - 2020 43.967% 75.714% 79.299% $ FY 2020 - 2021 48.640% 85.126% 88.036% 212,193 FY 2021 - 2022 51.832% 90.927% 93.779% $ 570,562 FY 2022 - 2023 54.680% 95.330% 98.452% Estimated Annual Increased Payments (2) (31 FY 2017 - 2018 $ 238,339 $ 771,917 $ 471,589 $ 1,481,845 FY 2018 - 2019 $ 462,069 S 1,503;708 $ 936,956 $ 2,902,733 FY 2019-2020 $ 497,783 S 1,625,083 $ 1,011,712 $ 3,134,578 FY 2020-2021 $ 573,989 S 1,899,456 $ 1,187,836 $ 3,661.281 FY 2021 -2022 $ 457.642 $ 1,394,569 S 920,123 $ 2,772,335 FY 2022-2023 $ 445,720 $ 1.223,236 S 844,793 S 2,513,749 Prepayment Option (4) (Amounts will change with the discount rate change) Projected Contribution $ 7,888,714 $ 8,890,179 $ 6,330,480 $ 23,109,373 Amount Eligible for Prepayment $ 5,974,842 $ 5,868,102 $ 4,222,722 $ 16,065,666 Prepayment Amount $ 5,762,649 $ 5,659,700 $ 4,072,755 $ 15,495,104 Prepayment Savings $ 212,193 $ 208,402 $ 149,967 $ 570,562 Fire Side Fund Valuation (balance at 6/30/16) $ 22,212,863 Included in UAL above. Payment (scheduled during FY 16-17) $ 1,945,665 Included in pymts above. Fire (Tier 1, 2 Members & PEPRA) Active 316 112 74 502 Transferred 303 40 11 354 Separated 325 32 5 362 Retired 475 178 126 779 Notes (1) For FY 17-18 and beyond, implied rate based on ER normal cost rate and a lump sum UAL payment. (2) Miscellaneous Group increases represent 40% of actual Increases. (3) CaIPERS calculation based on estimated actual payroll. Budget amounts will be higher. (4) CalPERS calculation does not include cost sharing adjustments. 59. F:\FINANCE\COMMON\Pension Oversight Committee\Data Collectlon\CalPERS Actuarial Valuation 6-30-15 Key Points