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HomeMy WebLinkAbout02 - - FY 2017-18 Budget Study Session - 5/9/2017CITY COUNCIL STUDY SESSION REPORT MEETING DATE: May 9, 2017 ITEM NUMBER: 1 SUBJECT: FISCAL YEAR 2017-18 BUDGET STUDY SESSION DATE: April 29, 2017 FROM: FINANCE DEPARTMENT PRESENTATION BY: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR FOR FURTHER INFORMATION CONTACT: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR, (714) 754-5243 RECOMMENDED ACTIONS: Provide comments and direction on the FY 17-18 Preliminary Operating and Capital Budget. BACKGROUND: The FY 17-18 budget development process officially started on December 15, 2016 with a kickoff meeting including the City Manager, Finance Department Staff and Department Directors and their representatives. In addition, on March 14, 2017, the Council held a special meeting and established priorities for FY 17-18 which are listed in the attached City Manager's Budget Message. Following those meetings, departments prepared their budget requests and submitted them to the Finance Department for review. Finance Staff prepared revenue projections and forecasts, reviewed departmental requests and met with the departments to discuss their budget requests. These meetings were followed by joint budget hearings involving the CEO, Finance Department and department representatives. Out of these discussions and further meetings, a Preliminary FY 17-18 Budget was developed based on Council priorities, City Manager direction, department requests and available funds. The Finance and Pension Advisory Committee had a first high-level look at the General Fund budget on April 12, 2017 and will review the budget recommendations in more detail after today's study session. ANALYSIS: As a quick overview, here is the preliminary budget for FY 17-18 for all funds compared to the FY 16-17 adopted budget: Table 1 The General Fund provides 91 % of the total operating budget for all governmental funds. The total preliminary General Fund budget is $124.5 million, an increase of $7.1 million or 6.1 % from the current year adopted budget. Part of the increase in the General Fund revenue budget is a result of the inclusion of new cost recovery fees: Measure X Medical Marijuana Business Permit 215,250 Measure X Conditional Use Permit 275,080 Measure X 6% Business Tax - Fire --Paramedic Fee - Advanced 600,000 Subtotal 1,090,330 Parks & Community Services 200,000 Fire Cost Recovery 250,000 Development Services Consultants reimbursement 200,000 Total Additional General Fund Revenue $1,740,330 The City Manager's Budget Message (part on the Budget in Brief attachment) provides highlights of the Council priorities and financial and budget policies and how they are incorporated into this preliminary budget, a description of the budget preparation and balancing process, overview charts of the City-wide budget and the General Fund, a brief financial outlook, budget highlights, a recap of reserves and an overview of capital improvement projects. The attached FY 17-18 Operating & Capital Budget in Brief includes additional summary charts, analysis of assumptions for and changes in the primary funding sources and expense categories, a brief discussion of internal service funds, a review of capital improvement project expense trends over the past ten years and a recap of use of fund balances in certain special funds. Regarding Capital Projects, the Budget in Brief also includes a Summary of Requested Capital Improvement Projects displaying the 65 requested projects by category and funding source. The far right column indicates the recommended projects. Nearly half of the FY 17-18 capital project funds are being used for the reconstruction of Fire Station 1 and the Lions Park projects in order to minimize new debt. The other half of the funds are recommended for important street improvements and maintenance, traffic planning and operations, and other projects that will be discussed in the study session. In addition, there are many projects in process from the current and prior fiscal years. These are summarized 2 PRELIMINARY BUDGET - ALL FUNDS Approprations/ Adopted Preliminary Increase (Decrease) All Funds FY 16-17 FY 17-18 Amount Percent Operating Budget $ 120,781,897 $ 126,526,997 $ 5,745,100 4.8% Transfers Out 7,796,786 8,907,435 $ 1,110,649 14.2% Capital Budget 16,057,334 19,567,158 $ 3,509,824 21.9% Total $ 144,636,017 $ 155,001,590 $ 10,365,573 7.2% The General Fund provides 91 % of the total operating budget for all governmental funds. The total preliminary General Fund budget is $124.5 million, an increase of $7.1 million or 6.1 % from the current year adopted budget. Part of the increase in the General Fund revenue budget is a result of the inclusion of new cost recovery fees: Measure X Medical Marijuana Business Permit 215,250 Measure X Conditional Use Permit 275,080 Measure X 6% Business Tax - Fire --Paramedic Fee - Advanced 600,000 Subtotal 1,090,330 Parks & Community Services 200,000 Fire Cost Recovery 250,000 Development Services Consultants reimbursement 200,000 Total Additional General Fund Revenue $1,740,330 The City Manager's Budget Message (part on the Budget in Brief attachment) provides highlights of the Council priorities and financial and budget policies and how they are incorporated into this preliminary budget, a description of the budget preparation and balancing process, overview charts of the City-wide budget and the General Fund, a brief financial outlook, budget highlights, a recap of reserves and an overview of capital improvement projects. The attached FY 17-18 Operating & Capital Budget in Brief includes additional summary charts, analysis of assumptions for and changes in the primary funding sources and expense categories, a brief discussion of internal service funds, a review of capital improvement project expense trends over the past ten years and a recap of use of fund balances in certain special funds. Regarding Capital Projects, the Budget in Brief also includes a Summary of Requested Capital Improvement Projects displaying the 65 requested projects by category and funding source. The far right column indicates the recommended projects. Nearly half of the FY 17-18 capital project funds are being used for the reconstruction of Fire Station 1 and the Lions Park projects in order to minimize new debt. The other half of the funds are recommended for important street improvements and maintenance, traffic planning and operations, and other projects that will be discussed in the study session. In addition, there are many projects in process from the current and prior fiscal years. These are summarized 2 in the attached CIP Status Report. The report provides a project description, project status and funding detail by fiscal year and source. The attached Budget Addendum displays recommended changes to the FY 17-18 Preliminary Budget amounts based on changes that were approved after the budget book printing deadline. Lastly, recommended for discussion is the recommendation to update some existing fees to or toward full cost recovery and the possibility of establishing new cost recovery fees for Parks and Community Services programs and for various Fire fees. The Parks and Community Services Department has seen an increase in participation in its recreation and park programs and offerings over recent years. This increase in participation has been welcomed by the department, however it has required an increase in resources, without an increase in the budgets associated with these programs. For example, an increase in staff numbers and hours, materials to run the programs, entry fees to some excursions (included in the current program fees) and increases in staff salaries. Therefore, to enable the City to maintain the current levels of services provided in these recreation and parks programs and expand the programs to enable greater inclusion in recreation and park activities, staff propose the carefully considered increases in cost recovery fees. Department cost recovery fee recommendations are presented in Attachment 4. Fire staff has updated four categories of cost recovery fees with recommendations based on the current cost of providing the services. These categories are Operational Fire Permit, Fire System Plan Review & Permit Fees, Building Plan Review for Fire & Life Safety and Fire & Life Safety Inspections (Company). Department cost recovery fee recommendations are presented in Attachment 5. Staff also plans to bring information on current Transient Occupancy Tax and Business License Fees to the Finance and Pension Advisory Committee with options for future changes to those taxes. The next steps in the FY 17-18 budget process include the following events: • May 10, 2017 4:30 p.m • May 18, 2017 5:30 p.m • May 22, 2017 6:00 p.m • May 25, 2017 6:00 p.m • June 20, 2017 6:00 p.m ALTERNATIVES CONSIDERED: Finance and Pension Advisory Meeting Community Budget Meeting Planning Commission Parks and Recreation Commission City Council budget hearing and adoption Staff considered many options for the use of funds including requested budget increases and capital improvement projects. Options were evaluated and contingency reductions of up to $450,000 were prepared in case cost recovery fee updates are not approved. Recommended fee increases could be approved in total, in part or not at all. Recommended budget amounts are balanced to estimated available resources. 3 CONCLUSION: As presented, this proposed budget represents a balanced budget for the coming fiscal year without the use of General Fund reserves and provides the highest level of service to the community within existing financial resources. Council consideration and public input regarding the FY 16-17 Preliminary Operating and Capital Budget will provide valuable information as the City prepares for budget hearings and adoption in June. Stephen Dunivent Thomas R. Hatch Interim Finance Director City Manager Attachments: 1. FY 2017-18 ODeratina & Caaital Budaet in Brief 2. FY 2017-18 Proposed Budget Addendum 3. CIP Status Report 4. Parks and Communitv Services Fees 5. Fire Fees M ,W4ol��,,♦ _ CITY OF THE ARTS ` 'z ORAI t I PRELIMINARY POMMi Fire Station 1 When complete, Fire Station No. 1 will feature a new 12,000 square -foot, state-of-the-art facility, including 10 dorm rooms, three administrative offices, one training/classroom, an emergency medical supply room and four utility rooms. The new facility will address out-of-date building code and standard issues, accommodate multi -gender usage and provide an efficient floor plan that aims to improve emergency response time. Lions Park Projects The purpose of the Lions Park projects are to improve library services, and create quality programming and event user space necessary to meet the needs of the community. The projects will re -purpose both the Donald Dungan Library to the adjacent Neighborhood Community Center building and move the NCC to the current library space. Features will include: A new two-story 20,000 square foot library building and a renovated Neighborhood Community Center. The project will also add one acre of programmed park open space that will be utilized as an event lawn and provide residents with a variety of fun, family and educational events. CITY MANAGER'S BUDGET MESSAGE �4pyTn �yF� ` T �ORP�kV A`b May 9, 2017 Honorable Mayor, Members of the City Council, and Citizens of Costa Mesa: I am pleased to submit the Fiscal Year 2017-18 Preliminary Operating and Capital Budget. The objectives used in developing this budget are to submit a balanced budget to the City Council; to do the best job possible of maintaining current excellent levels of service to the community; to implement City Council's priorities as feasible; and to be prudent in our revenue estimates and cautiously optimistic overall. The City's management team and staff have put together an operating and capital expenditure plan that addresses the City Council's priorities while fulfilling the service requirements of the people who live, work, and play in our community. The City Council Priorities include the following items: Tier 1: To receive the highest priority attention in FY 2017-18 • Begin Construction of the Lions Park Projects • Engage in strategies for a safe community, including having a fully -staffed Police Department • Address homelessness, both locally and on a cooperative basis with other communities • Address issues related to group/sober living homes • Maintain focus on fiscal responsibility Tier 2: To be carried out as resources permit in FY 2017-18 • Invest in infrastructure (e.g., sidewalks, streets, safe bike trails) • Fill City staffing vacancies to provide needed services • Ensure our land use policies will make life better for our residents and try to keep our residential areas nice places to live • Formally consider a new ambulance transport system • Complete the process to create a Master Plan for the Arts • Pursue economic development with a focus on attracting middle and well -paying jobs and supporting workforce development • Implement additional measures to enhance our animal control and sheltering services As presented, this represents a balanced budget for the coming fiscal year without the use of General Fund reserves and provides the highest level of service to the community within existing financial resources. This Preliminary Budget maintains and, in a few areas, enhances the current level of service from FY 16-17. Having already reduced operating expenditures to a minimum base level in prior years, management used the FY 16-17 budget as the starting point while allowing Departments to make their requests known for new items that they believed met the community and City Council needs. On March 3, 2015, the Council adopted the financial and budget policies; updated in October 2016. These policies are outlined and refreshed in the Appendix Section. Highlights of these policies as they relate to this budget include: • Consistency with Council and City Manager priorities • Balanced budgets with the exception of using dedicated non -General Fund balances for carry-over or one-time items consistent with the purpose of those funds • Realistic assumptions for revenue forecasts • New revenue sources pending legislation or grant approval are not included in the base budget request • A minimum of 5% General Fund revenues dedicated to funding capital projects plus an additional 1.5% of General Fund revenues dedicated to capital facilities • A goal of $500,000 budgeted for contingencies • Provision for an additional $500,000 payment to reduce unfunded pension liabilities Below is the Preliminary Budget for FY 17-18 for all funds compared to the FY 16-17 Adopted Budget: 2 PRELIMINARY BUDGET -ALL FUNDS Appropriations Adopted Preliminary Increase/(Decrease) All Funds FY 16-17 FY 17-18 Amount Percent Operating Budget $ 120,781,897 $ 126,526,997 $ 5,745,100 4.8% Transfers Out 7,796,786 8,907,435 1,110,649 14.2% Capital Budget 16,057,334 19,567,158 3,509,824 21.9% Total $ 144,636,017 $ 155,001,590 $ 10,365,573 7.2% 2 GENERAL FUND PRELIMINARY BUDGET The General Fund provides 91.4% of the total operating budget for all governmental funds. The total preliminary General Fund budget is $124.5 million, an increase of $7.1 million or 6.1 % from the current year adopted budget. Table 1 is a summary of the total General Fund resources and requirements for FY 17-18: Table 1 GENERAL FUND PRELIMINARY BUDGET Estimated Revenues $ Transfers In Adopted Preliminary Increase/(Decrease) FY 16-17 FY 17-18 Amount Percent 117,392,897 $ 124,512,589 $ 7,119,692 6.1% Use of Fund Balance - - - - Total Resources $ 117,392,897 $ 124,512,589 $ 7,119,692 6.1% )perating Budget $ 109,596,111 $ 115,605,154 $ 6,009,043 5.5% ransfers Out 7,796,786 8,907,435 1,110,649 14.2% Total Appropriations $ 117,392,897 $ 124,512,589 $ 7,119,692 6.1% The first set of FY 17-18 General Fund base operating budget requests submitted by the departments to the Finance Department totaled $124.1 million; 5.7% over the prior year budget. A large part of this increase was due to an increase in pension costs, assumption of increased number of filled positions, increases in utilities and certain other operating costs. In addition, departments requested a net increase of $1.1 million in budget increases, the largest of these being in Public Services related to operating expense increases. These two amounts totaled $125.2 million. During the month of March, the Budget Review Team held meetings with each department to review and discuss these budget requests. The total requests were ultimately reduced by $0.7 million to $124.5 million. The reductions are noted later is this report. The first set of FY 17-18 General Fund revenue estimates totaled $122.7 million using the assumptions of modest economic growth, a gradually improving real estate market and a leveling off of development activity in the City. During the budget review period, revenue assumptions were increased by $1.8 million to a new total of $124.5 million. These increases were based on the need to update Fire and Parks fees that are significantly below full cost recovery, Medical Marijuana Measure X business permit and conditional use permit revenues, and six months of new Fire -Paramedic ambulance transportation revenue. Primary revenue sources and assumptions are discussed in detail in the Summaries of Financial Data section of this budget book. The results of the budget reductions and revenue changes yielded a balanced General Fund budget of $124.5 million and keeps General Fund reserves intact. 3 FINANCIAL OUTLOOK As a result of the projection for modest growth in the economy, forecasted changes in revenue sources are projected to be mixed. Modest growth is forecasted for sales and use tax, transient occupancy tax (TOT) and franchise fees. Stronger growth is projected for property tax, licenses and permits, and motor vehicle license fees. Revenues such as fines and forfeitures are projected to be level. The City will continue to evaluate revenues and find ways to mitigate costs. Doing so will continue to stabilize the City's budget, provide necessary services to the community and work towards re- building reserves. The City remains careful about its cash position. With the significant reduction in reserves seven years ago, it is very important for the City to maintain a balanced budget and stabilize cash. Based on the timing of the receipt of certain revenues, the City has periods of time when it uses more cash than it receives. That use of cash is replenished later in the fiscal year with the receipt of property tax revenue. The General Fund had operating surpluses for five of the past six years which helped increase the overall cash position. HIGHLIGHTS OF THE PRELIMINARY BUDGET The FY 17-18 preliminary budget contains funding for the continuation of existing services to the community. The following highlights reflect some of the facts and changes regarding this budget: • The budget contains funding for the full annual required contribution for the City's share of employee retirement costs plus an additional payment of $500,000 to help reduce the unfunded liability associated with pension costs • General Fund contribution to Capital Projects is 5% of the General Fund budget, which is $6,006,649, and the 1.5% for Capital Facility Projects is $1,801,995 • Allocations to the Information Technology (IT) Replacement Fund will increase from $200,000 to $250,000 for the accumulation of funds for future IT equipment replacements and upgrades • Four departments (City Manager, City Attorney, Finance, and IT) have budgets with a growth rate of less than 3.5% • Both the City Manager's budget and the Development Services budget are staffed to address homelessness, both locally and on a cooperative basis with other communities and to continue to address issues related to group/sober living homes • Police Department o Funds all full-time positions for a fully -staffed department o Funded $44,000 for ten additional e -citation devices compatible with the county -wide system o Additional uniform costs of $20,000 for new employees o Additional communications costs of $24,000 for the Westside Substation o Reduction in vacant part-time position costs of $450,000 will help fund part of the cost to replace an aging Mobile Command vehicle ($900,000) • Fire Department .19 o Funds all full-time positions including the six new positions added mid- year FY 16-17 for a fully -staffed department. The cost of the additional positions is to be offset by reduction in overtime spending. o Inclusion of a partial year of ambulance transportation revenue ($600,000) will help fund most of the cost to replace an older 1500 GPM pumper truck ($707,300) o Continued funding for the part-time Emergency Medical Services Coordinator position approved by Council on February 7, 2017. • Parks and Community Services o Increased 5.5 full-time equivalent part-time positions o Added $61,374 for the reinstated mobile recreation program • Public Services Department o Includes the new park maintenance contract and deleted a total of eleven (five full-time and six part-time) vacant positions and positions to be vacated by attrition or reassignment due to the new contract o Reduced discretionary park maintenance items by $86,345 o Reduced the parks and parkways water account by $90,000 based on lower usage o Reduced bulky debris item removal by $62,589 o Budgeted existing staff levels will ensure the Fire Station 1, Lions Park projects and other capital projects are managed efficiently and on a timely basis • Capital Projects include $6.2 million for the cash funding of the construction of the new Fire Station 1, $2.8 million for second year of a four-year plan to accumulate funds for the Lions Park projects as a way to minimize new debt. A debt financing of about $18.5 million for the Lions Park projects is planned for issuance during FY 17-18 • Contingency appropriations are $500,000 GENERAL FUND RESERVES/USE OF FUND BALANCE The General Fund — Total Fund Balance was $64.5 million as of June 30, 2016. The City continues to maintain a $14.125 million emergency general operating reserve, in addition to reserves for workers' compensation, general liability claims, and compensated absences. On March 3, 2015 the Council reviewed a new Reserves Study that took a risk-based approach to establishing reserves for economic volatility, major infrastructure failure, natural disasters and other emergencies. The Council approved a reserves goal of $55 million and a plan to achieve that goal by increasing existing reserves by up to $1.5 million per year funded by any actual annual operating surplus. As noted in the FY 16-17 Mid -year Budget Report, the City reached and exceeded that goal and reallocated the amount above the $55 million to important debt reduction and one-time capital items. A schedule of estimated fund balances for all budgeted funds is found in the Summaries of Financial Data section of this budget book. 67 CAPITAL IMPROVEMENT PROJECTS The preliminary capital budget is recommended in the amount of $19.6 million, an increase of 21.9%. In reviewing the Capital Improvement budget, it is important to keep in mind that most projects are funded by restricted revenue sources or grants. Consequently, there will potentially be significant differences from year to year in both the numbers of projects adopted and the total dollars budgeted. Primary funding sources for capital projects include the General Fund, Measure M, Gas Tax, Community Development Block Grant, Park Development Fees and Drainage Fees. Key projects include Fire Station 1, Lions Park projects, City-wide street improvements and the Fairview Road traffic signal synchronization project. Table 2 below illustrates the total capital projects funding by category planned for FY 17-18. Please see the Capital Improvement Program section of this budget for the complete list of projects and project details. Table 2 CAPITAL IMPROVEMENT PROJECTS Parkway & Median Improvements Fairview Park Program Street Improvements & Maintenance Storm Drain Improvements Curbs & Sidewalks Traffic Planning Active Transportation Programs Traffic Operations Park Development & Maintenance Building & Equipment Maintenance Capital Facility Projects Next Gen. 800 MHz Comm. System Total Appropriations General Funds Other Funds Total Appropriations Adopted Preliminary Increase (Decrease) FY 16-17 FY 17-18 Amount Percent $ 160,000 $ - $ (160,000) -100.0% 1,820,000 - (1,820,000) -100.0% 3,501,137 5,423,904 1,922,767 54.9% 600,000 760,193 160,193 26.7% 400,000 200,000 (200,000) -50.0% 805,000 1,562,943 757,943 94.2% 300,000 230,000 (70,000) N/A 604,990 1,771,474 1,166,484 N/A 3,885,965 3,069,000 (816,965) -21.0% 1,009,622 407,144 (602,478) -59.7% 1,788,979 6,142,500 4,353,521 243.4% 1,181,641 - (1,181,641) -100.0% $ 16,057,334 $ 19,567,158 $ 3,509,824 21.9% $ 7,796,786 $ 7,808,644 11,858 0.2% 8,260,548 11,758,514 3,497,966 42.3% $ 16,057,334 $ 19,567,158 $ 3,509,824 21.9% 59 BUDGETARY REPORTING AWARDS The Preliminary Budget was prepared in accordance with local ordinances, state statutes, and best practices in budgeting recommended by the National Advisory Council on State and Local Budgeting. Additionally, this document will also be prepared in a manner that meets the Budget Awards Program criteria established by the Government Finance Officers Association (GFOA) of the United States and Canada and the California Society of Municipal Finance Officers (CSMFO). The GFOA presented a Distinguished Budget Presentation Award to the City of Costa Mesa for its annual budget document for the fiscal year beginning July 1, 2016. This is the 16th consecutive year that the City has received this prestigious award. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communications device. This award is valid for one year only. In addition, the CSMFO presented the Excellence in Operational Budgeting, and the Excellence in Public Communications awards to the City of Costa Mesa for its FY 16-17 Adopted Budget. Staff believes the FY 17-18 Preliminary Operating & Capital Improvement Budget document will continue to conform to the award program requirements. The City will again apply to both GFOA and CSMFO for these awards. SUMMARY Although current economic conditions continue to be favorable, this Preliminary Budget continues to be careful with our reliance on potentially volatile Sales Tax revenue. The budget substantially maintains existing services and supports an important capital improvement program. It proposes a balanced annual budget, maintains, and in a very few areas, enhances the current level of service and enhances infrastructure improvements. ACKNOWLEDGEMENT The development of the Preliminary Budget takes a great amount of staff time and effort, and has to be completed within a defined timeline. I sincerely appreciate the contribution made by all department directors, division managers, and departmental budget liaisons. Special recognition is extended to the Finance Department budget team and Central Services staff. I thank the City Council for their continued support in making Costa Mesa a financially stable and well-balanced community. Respect Ily submitted, XA0ell* Thomas R. Hatch City Manager City of Costa Mesa N CITY OF COSTA MESA, CALIFORNIA FY 2017-18 OPERATING & CAPITAL BUDGET IN BRIEF The Fiscal Year 2017-18 Preliminary Budget reflects the operating and capital spending plans for the General Fund, Special Revenue Funds, Capital Project Funds, and Internal Service Funds. The total preliminary budget for all funds is $155.0 million, an increase of $10.4 million, or 7.2% compared to the adopted budget for FY 16-17. Table 1 illustrates these amounts. TABLE 1 PRELIMINARY BUDGET -ALL FUNDS Appropriations Adopted Preliminary Increase/(Decrease) FY 17-18 All Funds FY 16-17 FY 17-18 Amount Percent % of total Operating Budget $ 120,781,897 $ 126,526,997 $ 5,745,100 4.8% 81.6% Transfers Out 7,796,786 8,907,435 1,110,649 14.2% 5.7% Capital Budget 16,057,334 19,567,158 3,509,824 21.9% 12.6% Total $ 144,636,017 $ 155,001,590 $ 10,365,573 7.2% 100.0% GENERAL FUND BUDGET OVERVIEW For all governmental funds, the General Fund comprises 91.4% of the operating budget and 79.1% of the operating and capital budget. Therefore, the succeeding discussion will focus primarily on the General Fund. The preliminary General Fund budget is $124.5 million, an increase of $7.1 million, or 6.1% compared to the FY 16-17 adopted budget. Table 2 below illustrates the components and the changes of the preliminary budget as compared to the prior year's budget. TABLE 2 Salaries & Benefits: Budgeted personnel costs increased by $5.9 million, or 7.3%. This increase is attributed to a number of factors including the memorandums of understanding for both the Costa Mesa Police Association and Costa Mesa City Employees Association, increases in CalPERS rates, new positions for Fire Station 6 and increases in workers' compensation insurance. Budgeted positions are set at the level of personnel needed to continue providing expected levels of services to the community. M. GENERAL FUND OPERATING BUDGET Adopted Preliminary Increase/(Decrease) FY 17-18 Expenditure Category FY 16-17 FY 17-18 Amount Percent % of total Salaries & Benefits $ 80,881,739 $ 86,802,470 $ 5,920,731 7.3% 69.7% Maint. & Operations 28,442,090 27,855,624 (586,466) -2.1% 22.4% Fixed Assets 272,282 947,060 674,778 247.8% 0.8% Transfers Out 7,796,786 8,907,435 1,110,649 14.2% 7.2% Total $ 117,392,897 $ 124,512,589 $ 7,119,692 6.1% 100.0% Salaries & Benefits: Budgeted personnel costs increased by $5.9 million, or 7.3%. This increase is attributed to a number of factors including the memorandums of understanding for both the Costa Mesa Police Association and Costa Mesa City Employees Association, increases in CalPERS rates, new positions for Fire Station 6 and increases in workers' compensation insurance. Budgeted positions are set at the level of personnel needed to continue providing expected levels of services to the community. M. CITY OF COSTA MESA, CALIFORNIA Maintenance & Operations (M&O): The maintenance and operations category includes such things as: office supplies; office equipment; electricity, gas and water for all City owned property including parks, medians, street lights and traffic signals; park and facility maintenance, general liability insurance, the contingency account, and principal and interest payments on outstanding City debt. The preliminary budget for maintenance and operations accounts is $27.9 million, a net decrease of $586,466 or 2.1% compared to the FY 16-17 adopted budget. While there is an increase of $1.3 million primarily due to the parks maintenance contract, that increase is more than offset by reductions in water usage, consulting and a $500,000 reduction in contingency. Transfers Out: The preliminary budget includes an operating transfer out of 5% of General Fund Revenues, to fund various Capital Improvement Projects and an additional 1.5% Capital Facilities Projects. For FY 17-18 there are also one-time transfers to the Vehicle Replacement Fund to help pay for the replacement Mobile Command Vehicle ($450,200) and replacement Fire 1500 GPM pumper truck ($600,000). The total preliminary FY 17-18 General Fund estimated revenue is $124.5 million, an increase of $4.2 million or 3.5% compared to projected revenues for FY 16-17. Table 3 illustrates the General Fund revenue sources that fund City services. TABLE 3 GENERAL FUND ESTIMATED REVENUES Projected Preliminary Increase/(Decrease) FY 17-18 Revenue Source FY 16-17 FY 17-18 Amount Percent % of total Taxes $ 97, 240, 961 $ 99, 557, 928 $ 2,316,967 2.4% 80.0% Licenses & Permits 2,276,161 2,561,508 285,347 12.5% 2.1% Fines & Forteitures 1,493,653 1,535,000 41,347 2.8% 1.2% Use of Money & Property 3,049,850 3,109,749 59,899 2.0% 2.5% Other Governmental Agencies 10,734,941 11,097,025 362,084 3.4% 8.9% Fees & Charges for Services 4,122,372 5,237,529 1,115,157 27.1% 4.2% Other Revenue 1,436,795 1,413,850 (22,945) -1.6% 1.1% Total $ 120,354,733 $ 124,512,589 $ 4,157,856 3.5% 100.0% Note: Excludes Transfers In Revenues: The City has been experiencing increases in Sales Tax, Property Tax, Transient Occupancy Tax (TOT) and Building Permit revenue up to and including the current fiscal year. The outlook for these revenues for FY 16-17 is more modest growth. Taxes include Property Tax, Sales Tax, Transient Occupancy Tax, and various utility Franchise Fees. This group of revenues is projected to grow modestly at 2.4% over the current year projection. CITY OF COSTA MESA, CALIFORNIA Graph 1 illustrates the categories of businesses and industries that generated sales tax revenue for the City in calendar year 2016. (Source: HdL) nnAnu 4 City of Costa Mesa Fuel and Building Ser\lce and Stations Construction Business and Industry 400 3 7% Restaurants 10% and Hotels State and County Pool s 0 12% 18% Autos and Transportation Food and Drugs General Consumer Goods Licenses & Permits include building and other permits, dog licenses and a new category of revenue for anticipated Medical Marijuana Measure X business permits ($215,250). Other Governmental Agencies includes primarily the vehicle license fees from the State projected to grow at the historical rate. Fees and Charges for Services has above -normal growth due to the inclusion of new Medical Marijuana Measure X conditional use permit fees ($275,080), updated Fire Cost Recovery fees ($250,000), six months of additional Fire Paramedic Fees for ambulance transportation ($642,000) and updated Parks fees ($200,000). Descriptions, assumptions, and a ten-year historical trend on the General Fund revenue sources by major categories can be found in the following Summaries of Financial Data section of this book. 10 CITY OF COSTA MESA, CALIFORNIA OTHER GOVERNMENTAL FUNDS To gain a better understanding of the budget as a whole, the General Fund budget is compared to the entire budget covering all governmental funds. The Operating Transfers Out are excluded from this comparison to avoid duplicate counting of resources. Table 4 illustrates this relationship. TABLE 4 INTERNAL SERVICE FUNDS The City uses Internal Service Funds to account for the following activities a) Equipment Replacement Fund (ERF) — The funding necessary to replace vehicles is accumulated in the ERF over a number of years based upon an established replacement schedule. This fund accounts for fleet services provided by the Maintenance Services Division to the user -departments. For FY 17-18, the preliminary budget is $3.1 million and the estimated revenue is $2.2 million with an additional Operating Transfer In from the General Fund of $1,050,200. Among the items scheduled for replacement are the Police mobile command vehicle, a fire truck, as well as replacement of aging support vehicles for Police, Public Services, and Parks and Community Services. All will be purchased without incurring additional City debt. Under the Internal Service Funds method of accounting for fleet services, user -departments are charged monthly internal rent. This rent is split into the estimated cost for future replacement vehicles and actual maintenance charges, including fuel. Staff uses an inflationary factor compounded annually to determine the estimated future replacement cost divided by the estimated life of the vehicles. Maintenance charges are based on actual usage of fuel and service, including labor, materials, and overhead costs. b) Self -Insurance Fund — This fund accounts for the Risk Management Program dealing with workers' compensation, general liability, and unemployment insurance. The FY 17-18 preliminary budget totals $4.7 million. The City currently contracts with separate vendors for workers' compensation and managed care services that historically were handled together. Since the City has separated the two, it has been able to take advantage of competitive rates and additional cost savings on medical expenses. The unemployment insurance portion is based on actual payments to the State Employment Development Department (EDD), which processes the claims for unemployment benefits on behalf of the City. The City reimburses the EDD on a quarterly basis. Departments are charged back based on an established formula. 11 GOVERNMENTAL FUNDS PRELIMINARY BUDGET Adopted Preliminary Increase/(Decrease) FY 17-18 Fund Types FY 16-17 FY 17-18 Amount Percent % of total General Fund * $ 109,596,111 $ 115,605,154 $ 6,009,043 5.5% 74.6% Special Revenue Funds 10,010,713 9,402,012 (608,701) -6.1% 6.1% Capital Project Funds 17,379,609 21,173,645 3,794,036 21.8% 13.7% Internal Service Funds 7,649,582 8,820,779 1,171,197 15.3% 5.7% Total $ 144,636,017 $ 155,001,590 $ 10,365,575 7.2% 100.0% * Excludes Transfers Out INTERNAL SERVICE FUNDS The City uses Internal Service Funds to account for the following activities a) Equipment Replacement Fund (ERF) — The funding necessary to replace vehicles is accumulated in the ERF over a number of years based upon an established replacement schedule. This fund accounts for fleet services provided by the Maintenance Services Division to the user -departments. For FY 17-18, the preliminary budget is $3.1 million and the estimated revenue is $2.2 million with an additional Operating Transfer In from the General Fund of $1,050,200. Among the items scheduled for replacement are the Police mobile command vehicle, a fire truck, as well as replacement of aging support vehicles for Police, Public Services, and Parks and Community Services. All will be purchased without incurring additional City debt. Under the Internal Service Funds method of accounting for fleet services, user -departments are charged monthly internal rent. This rent is split into the estimated cost for future replacement vehicles and actual maintenance charges, including fuel. Staff uses an inflationary factor compounded annually to determine the estimated future replacement cost divided by the estimated life of the vehicles. Maintenance charges are based on actual usage of fuel and service, including labor, materials, and overhead costs. b) Self -Insurance Fund — This fund accounts for the Risk Management Program dealing with workers' compensation, general liability, and unemployment insurance. The FY 17-18 preliminary budget totals $4.7 million. The City currently contracts with separate vendors for workers' compensation and managed care services that historically were handled together. Since the City has separated the two, it has been able to take advantage of competitive rates and additional cost savings on medical expenses. The unemployment insurance portion is based on actual payments to the State Employment Development Department (EDD), which processes the claims for unemployment benefits on behalf of the City. The City reimburses the EDD on a quarterly basis. Departments are charged back based on an established formula. 11 CITY OF COSTA MESA, CALIFORNIA Revenues for the Self -Insurance Fund come from the internal charges to the user -departments based on historical costs of incurred losses, insurance premiums, and other services provided by the Risk Management Division. CAPITAL IMPROVEMENT PROJECTS The City's Seven -Year Capital Improvement Program (CIP) is listed at the end of the Capital Improvement Program section of this budget book. This section provides comprehensive, detailed information on the capital projects that the City plans to undertake in the coming fiscal year and beyond. It also contains a summary listing of recommended projects by funding source. Please refer to Table 2 in the Budget Message preceding this section for the summary of capital project amounts by program category. The following graph illustrates how much the City has expended to improve and maintain its infrastructure including streets; curbs and sidewalks; storm drains; traffic operations; parks, parkways, and medians; and buildings and facilities. Over the last 10 years, the City spent/appropriated approximately $133 million or an average of $13.3 million a year for capital improvements. GRAPH 2 CAPITAL IMPROVEMENT PROJECT EXPENDITURES $30,000,000 $25,000,000 $20,000,000 OM. 17 16.8M 16.1M $15,000,000 125M 11.2M . 10.7M SAM $10,000,000 - 6.9M $5,000,000 13.5M 19.6M P��a�` P��a� P��a, ��a` PP�a o,��a ti°ate ,Ilk °$la� 4y�lyo tiltiolyy 4�N. by 1, �'k�3'yc. 4yyF', � yti�l ti 12 CITY OF COSTA MESA, CALIFORNIA Use of fund balances: During times of emergency or due to other needs, the City may utilize its general operating reserve (which is part of the "designated" fund balance) if circumstances warrant, as defined in the Costa Mesa Municipal Code Section 2-205 et seq. The General Fund balance is distinguished from other fund balances. The fund balances of the Special Revenue Funds and Capital Projects Funds are earmarked for specific uses based upon the criteria for which these funds were established. These types of funds may accumulate monies over a period of one or more years for future appropriations. Then, when the City is ready and able to embark upon a capital improvement project or special program that meets the specific requirements for the use of the funds, appropriations from fund balances may be used. A summary schedule of estimated available fund balances for all funds is found at the beginning of the Summaries of Financial Data section. Table 5 lists the estimated fund balances to be used to support the FY 17- 18 preliminary budget. TABLE 5 ESTIMATED FUND BALANCES TO BE USED 13 Projected Bal. Projected Bal. Amount Fund Name 07/01/2017 06/30/2018 To Be Used Percent Gas Tax Fund $ 597,944 $ - $ 597,944 100.0% Park Dev. Fees Fund (1,912,880) (2,123,079) 210,199 -11.0% Drainage Fees Fund 863,593 365,000 498,593 57.7% Total $ (451,343) $ (1,758,079) $ 1,306,736 -289.5% 13 CITY OF COSTA MESA, CALIFORNIA SUMMARY OF REQUESTED CAPITAL IMPROVEMENT PROJECTS by Funding Source FISCAL YEAR 2017.2018 Req Nor Program/Project Name Parkway & Median Improvements, Program #20111 1 Gisler Ave and California Ave Improvements 2 Redhill Avenue Medians (McCormick Ave to Bristol St.) Subtotal Parkway & Median Improvements Fairview Park, Program #20115 3 Fairview Park- CA - ORA -58 Fill Removal 4 Fairview Park Improvements 5 Fairview Park Plant Establishment and Pond Maintenance 6 Fairview Park- On Call Environmental Services 7 Fairview Park- S/E Entrance and Parking Lot Subtotal Fairview Park Street Improvements, Program #30112 8 Citywide Street Improvements 9 Citywide Alley Improvements 10 Hamilton St. - Cherie St. to Harbor Blvd. 11 Irvine Avenue Improvements - 20th St to Sly City Limits 12 Newport Boulevard Frontage Rd (N/B) - 15th St to 17th St 13 Pomona Ave Improvements - 19th St to 16th St Subtotal Street Improvements Storm Drain Improvements, Program #30122 14 Citywide Storm Drain Improvements Subtotal Storm Drain Improvements Curbs and Sidewalks, Program #30130 15 New Sidewalk/Missing Link Program 16 Parkway Improvement Program Project 17 Priority Sidewalk Repair Subtotal Curbs and Sidewalks Active Transportation Programs, Program #30225 18 Bicycle Rack Improvements Citywide 19 Bicycle Safety Education at Sixteen Schools 20 Bristol Street (Bear St. to Santa Ana Av.) Bicycle Facility 21 Class II and III Bicycle Projects 22 Fairview Road (Fair Dr. to Newport Blvd.) Bicycle Facility 23 Merrimac Way Multipurpose Trail and Cycle Tracks 24 Paularino Channel Multipurpose Trail 25 Santa Ana Avenue Bicycle Facility (Bristol St. to Mesa Drive) Subtotal Active Transportation Traffic Planning, Program #30210 26 Fairview Road Improvements (Baker St. to Adams Av.) 27 Newport Boulevard Widening Design from 19th Street to 17th 28 Project V - Community Circulator 29 Wilson Street Widening Design from College Avenue to Fairview Subtotal Traffic Planning Traffic Operations, Program #30241 30 Fairview Road Traffic Signal Synchronization 31 Neighborhood Traffic Improvements Subtotal Traffic Operations Park Maintenance, Program #40111 32 Estancia Park- Slope Renovation 33 Jack Hammett SC - Light Pole & Footing Replacement 34 Rehabilitate Parking Lot - Various Locations 35 Various Parks - Replace Playground Surfacing 36 Various Parks - Sidewalk Replacement Subtotal Park Maintenance Park Development, Program #40112 37 ADA Access Improvements - Heller, Shiffer, and Wakeham Parks 38 Park Security Lighting Replacement Program 39 Brentwood Park Improvements 40 Lions Park Projects 41 Mesa del Mar Neighborhood Entryway 42 Smallwood Park Improvements 43 Tewinkle Park - Skate Park Expansion 44 Vista Veteran's Memorial Subtotal Park Development Gas Tax Fund 201 AQMD Fund CDBG Fund 207 Park Fees Fund Drainage Fund 209 203 208 14 1,163,904 - - - - 500,000 - - - - 75,000 - - - - 105,000 480,000 1,843,904 480,000 760,193 760,193 50,000 - - - - 100,000 - - - - 50,000 200,000 63,060 - - - - 63,060 - 75,000 - - - 75,000 300,000 - - 2,500,000 - 300,000 2,500,000 CITY OF COSTA MESA, CALIFORNIA SUMMARY OF REQUESTED CAPITAL IMPROVEMENT PROJECTS by Funding Source FISCAL YEAR 2017.2018 Req Capital Improvement Capital Facility Grant Fund Measure M CEO Funding Fund 401 Account 401 Funds 415/416 Recommended Nbr Program/Project Name Total Parkway & Median Improvements, Program #20111 1 Gisler Ave and California Ave Improvements 2 Redhill Avenue Medians (McCormick Ave to Bristol St.) Subtotal Parkway & Median Improvements Fairview Park, Program #20115 3 Fairview Park- CA - ORA -58 Fill Removal 4 Fairview Park Improvements 5 Fairview Park Plant Establishment and Pond Maintenance 6 Fairview Park- On Call Environmental Services 7 Fairview Park- S/E Entrance and Parking Lot Subtotal Fairview Park Street Improvements, Program #30112 8 Citywide Street Improvements 9 Citywide Alley Improvements 10 Hamilton St. - Cherie St. to Harbor Blvd. 11 Irvine Avenue Improvements - 20th St to Sly City Limits 12 Newport Boulevard Frontage Rd (N/B) - 15th St to 17th St 13 Pomona Ave Improvements - 19th St to 16th St Subtotal Street Improvements Storm Drain Improvements, Program #30122 14 Citywide Storm Drain Improvements Subtotal Storm Drain Improvements Curbs and Sidewalks, Program #30130 15 New Sidewalk/Missing Link Program 16 Parkway Improvement Program Project 17 Priority Sidewalk Repair Subtotal Curbs and Sidewalks 115,000 - - - 115,000 250,000 - - - 250,000 250,000 - - - 250,000 250,000 - - - 250,000 50,000 - - - 50,000 150.000 - - - 150.000 650,000 - - 1,800,000 3,613,904 3,613,904 - - - - 500,000 500,000 - - - - 75,000 75,000 10,000 - - 640,000 650,000 650,000 350,000 - - - 350,000 - - 585,000 585,000 1,010,000 2,440,000 5,773,904 5,423,904 760,193 760,193 760,193 760,193 - - 50,000 50,000 - - 100,000 100,000 50,000 50,000 200,000 200,000 Active Transportation Programs, Program #30225 - - 30,000 - 44,000 - 18 Bicycle Rack Improvements Citywide 25,000 - - - 25,000 - 19 Bicycle Safety Education at Sixteen Schools 30,000 - - - 30,000 30,000 20 Bristol Street (Bear St. to Santa Ana Av.) Bicycle Facility 75,000 - - - 75,000 - 21 Class II and III Bicycle Projects 50,000 - - - 50,000 50,000 22 Fairview Road (Fair Dr. to Newport Blvd.) Bicycle Facility 60,000 - - - 60,000 - 23 Merrimac Way Multipurpose Trail and Cycle Tracks 125,000 - - - 125,000 - 24 Paularino Channel Multipurpose Trail 150,000 - - - 150,000 150,000 25 Santa Ana Avenue Bicycle Facility (Bristol St. to Mesa Drive) 30,000 30,000 - Subtotal Active Transportation 545,000 545,000 230,000 Traffic Planning, Program #30210 - - 30,000 - 44,000 - 26 Fairview Road Improvements (Baker St. to Adams Av.) - - 567,540 - 630,600 630,600 27 Newport Boulevard Widening Design from 19th Street to 17th - - - 281,250 281,250 281,250 28 Project V - Community Circulator 25,000 - - 369,843 394,843 369,843 29 Wilson Street Widening Design from College Avenue to Fairview 281,250 281,250 281,250 Subtotal Traffic Planning 25,000 567,540 932,343 1,587,943 1,562,943 Traffic Operations, Program #30241 30 Fairview Road Traffic Signal Synchronization 31 Neighborhood Traffic Improvements Subtotal Traffic Operations Park Maintenance, Program #40111 32 Estancia Park- Slope Renovation 33 Jack Hammett SC - Light Pole & Footing Replacement 34 Rehabilitate Parking Lot - Various Locations 35 Various Parks - Replace Playground Surfacing 36 Various Parks - Sidewalk Replacement Subtotal Park Maintenance Park Development, Program #40112 37 ADA Access Improvements - Heller, Shiffer, and Wakeham Parks 38 Park Security Lighting Replacement Program 39 Brentwood Park Improvements 40 Lions Park Projects 41 Mesa del Mar Neighborhood Entryway 42 Smallwood Park Improvements 43 Tewinkle Park - Skate Park Expansion 44 Vista Veteran's Memorial Subtotal Park Development - - - 1,596,474 1,671,474 1,671,474 100,000 100,000 100,000 100,000 1,596,474 1,771,474 1,771,474 30,000 - - - 30,000 - 44,000 - - - 44,000 44,000 100,000 - - - 100,000 100,000 50,000 - - - 50,000 50,000 50,000 50,000 50,000 274,000 274,000 244,000 60,000 - - - 60,000 - 400,000 - - - 400,000 - 2,000,000 - - - 2,000,000 - - - - - 2,800,000 2,800,000 25,000 - - - 25,000 25,000 300,000 - - - 300,000 - 750,000 - - - 750,000 - 20,000 20,000 - 3,555,000 6,355,000 2,825,000 15 CITY OF COSTA MESA, CALIFORNIA SUMMARY OF REQUESTED CAPITAL IMPROVEMENT PROJECTS by Funding Source FISCAL YEAR 2017.2018 Req Gas Tax Fund 201 AQMD Fund CDBG Fund 207 Park Fees Fund Drainage Fund 209 203 208 Nor Program/Project Name Building Maintenance, Program #50910 45 Balearic Center -Construct Undergrounding of Electrical Service - - - - - 46 Balearic Center- Install New HVAC Unit - - - - - 47 Building Maintenance Projects - - - - - 48 City Clerk's Office Remodel - - - - - 49 City Hall- HVAC Cooling Tower Replacement - - - - - 50 City Hall- Paint and Carpet (2nd Floor - Development Services) - - - - - 51 City Hall- Paint Interior - 5th Floor - - - - - 52 City Hall- Carpet Replacement 5th Floor - - - - - 53 City Hall- Replace Covered Walkway Roof - - - - - 54 Downtown Rec Center - Replace four (4) HVAC Units - - - - - 55 Downtown Rec Center - Replace Pool Plaster - - - - - 56 Fire Stations #2-#6: Critical Infrastructure Protection - - - - - 57 Fire Station #2&4 - Accessibility Design - - - - - 58 Fire Station #2- Front Public Access Parking for Baker Street - - - - - 59 Fire Station #6- Replace (3) HVAC Roof Top Units - - - - - 60 Fire Stations - Plymo Vent Vehicle Exhaust Systems - - - - - 61 P.D. - Front Lobby Security Project - - - - - 62 P.D. - Range Remodel/Update - - - - - 63 P.D. - Carpet Replacement, Records & Investigative Svcs Bureaus - - - - - 64 P.D. - Design Survey of Gym Expansion Subtotal Building Maintenance Building Facility Account, Program #50905 65 Fire Station #1 Subtotal Building Facility Total FY 17-18 Requested CIPS $ 2,406,964 $ 75,000 $ 480,000 $ 2,500,000 $ 760,193 Total Funded: $ 2,406,964 $ 75,000 $ 480,000 $ 2,500,000 $ 760,193 16 CITY OF COSTA MESA, CALIFORNIA SUMMARY OF REQUESTED CAPITAL IMPROVEMENT PROJECTS by Funding Source FISCAL YEAR 2017.2018 Req Nbr Program/Project Name Building Maintenance, Program #50910 45 Balearic Center -Construct Undergrounding of Electrical Service 46 Balearic Center- Install New HVAC Unit 47 Building Maintenance Projects 48 City Clerk's Office Remodel 49 City Hall- HVAC Cooling Tower Replacement 50 City Hall- Paint and Carpet (2nd Floor - Development Services) 51 City Hall- Paint Interior - 5th Floor 52 City Hall- Carpet Replacement 5th Floor 53 City Hall- Replace Covered Walkway Roof 54 Downtown Rec Center - Replace four (4) HVAC Units 55 Downtown Rec Center - Replace Pool Plaster 56 Fire Stations #2-#6: Critical Infrastructure Protection 57 Fire Station #2&4 - Accessibility Design 58 Fire Station #2- Front Public Access Parking for Baker Street 59 Fire Station #6- Replace (3) HVAC Roof Top Units 60 Fire Stations - Plymo Vent Vehicle Exhaust Systems 61 P.D. - Front Lobby Security Project 62 P.D. - Range Remodel/Update 63 P.D. - Carpet Replacement, Records & Investigative Svcs Bureaus 64 P.D. - Design Survey of Gym Expansion Subtotal Building Maintenance Capital Improvement Capital Facility Measure M CEO Funding Fund 401 Account 401 Grant Fund Funds 415/416 Recommended Total 40,000 - - - 40,000 40,000 350,000 - - - 350,000 - 347,144 - - - 347,144 347,144 70,000 - - - 70,000 - 66,200 - - - 66,200 - 150,000 - - - 150,000 - 93,500 - - - 93,500 - 110,000 - - - 110,000 - 130,000 - - - 130,000 - 90,000 - - - 90,000 - 123,000 - - - 123,000 - 20,000 - - - 20,000 20,000 50,000 - - - 50,000 - 300,000 - - - 300,000 - 50,000 - - - 50,000 - 250,000 - - - 250,000 - 53,000 - - - 53,000 - 205,000 - - - 205,000 - 87,200 - - - 87,200 - 100,000 100,000 2,685,044 2,685,044 407,144 Building Facility Account, Program #50905 65 Fire Station #1 4,340,505 1,801,995 6,142,500 6,142,500 Subtotal Building Facility 4,340,505 1,801,995 6,142,500 6,142,500 Total FY 17-18 Requested CIPS $ 14,637,549 $ 1,801,995 $ 567,540 $ 4,968,817 $ 28,198,058 $ 19,567,158 * previous appropriations Total Funded: $ 6,006,649 $ 1,801,995 $ 567,540 $ 4,968,817 $ 19,567,158 17 � ( T t� ♦ � it ��'�4 �a. w T � 4 a 4±YtP J '�Gt, V: City of Costa Mesa FY 17-18 Preliminary Budget Addendum FY 17-18 Preliminary Budeet Addendum Item No. Fund Department 1 101 CEO 2 101 Finance 3 101 Parks & Comm. Services 4 101 Info. Technology 5 101 Police Dept. 6 101 Fire Dept. 7 8 101 Development Services 9 101 Public Services 101 Preliminary Budget before Addendum 101 Preliminary Budget after Addendum Other Funds: 201 Gas Tax Fund 601 Equipment Replacement Fund 602 Self -Insurance Fund Total Other Funds All Funds Preliminary Budget before Addendum Preliminary Budget after Addendum Attachment 2 Description Appropriation Revenue Reclass Recreation Manager to Parks and Comm. Svcs. Director - - Reclass Fire Protection Analyst to Assistant Fire Marshal - - Add P/T Emergency Medical Svcs. Coord from Feb. 7 Council meeting 72,898 72,898 Reclass Chief of Code Enforcement to Comm. Impr. Manager - - Chargers deposit and Jack Hammett Field improvements 150,000 150,000 Revised HUTA allocation from the State Appropriation correction Appropriation correction 222,898 222,898 $ 124,512,589 $ 124,512,589 $ 124,735,487 $ 124,735,487 792,012 792,012 1,309,634 - 903,795 2,213,429 - $ 155,001,590 $ 157,437,917 CIP STATUS REPORT as of May 2017 a n 3 3 (D 7 W page 1 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 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 Award of construction contract accommodations remove those architectural barriers and being recommended to City Council communications barriers that are considered readily May 16, 2017. accessible in accordance with the resources available to building ownership to allow use of the facility by the disabled. Unencumbered $252,350.00 Balance FY15/16 $252,350.00 CDBG Includes $1,000,000 mid- FY14/15 & Arlington Drive Bioswale and Dry Weather Diversion Project: $1,910,000.00 year allocation FY15/16 $910,000.00 Drainage Fee Citywide Storm Drain (17-04). This project entails the removal OCTA Grant requires project award in FY 16/17 M2 of approximately 70,000 sq. ft. of asphalt and construct of a by June 30, construction bid Environmental vegetated bioswale and concrete multipurpose trail. The trail la opening tookk place April 27, 2017. p $1,690,000.00 $1,690,000.00 Grant Recommending award to City will be about one mile in length and the bioswale will be Council June 6, 2017. Construction approximately 2,500 LF. Removal of asphalt will eliminate to begin after OC Fair, September, runoff caused by impervious roadway, collect in the bioswale 2017. 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 citywide and customized bicycle rack designs for each facility. Caltrans approval. $39,050.00 FY13/14 $35,000.00 BCI Bicycle Rack Improvements Citywide: Installation of new Bike committee selected three bike custom designed bicycle racks at various facilities within Costa racks for city hall and senior center. Additional locations are being Mesa. identified. $50,000.00 FY16/17 a n 3 3 (D 7 W page 1 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM page 2 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 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 Street Median Improvement (Bristol Street from Baker Project under construction. The $400,000.00 HSIP Street to Randolph Ave and 1-405 to Baker Street). Project B = parkway improvements (curbs, $800,000.00 Measure M2 Rehab of Bristol and Bear (Bear from 1-405 Fwy to Northerly sidewalks, wheelchair ramps, etc.) City Limits at Wakeham Place and Bristol Street from 1-405 for Bear Street have been $300,000.00 Gas Tax FWY to Randolph Avenue. Project C = Santa Ana Delhi completed. Parkway improvements Channel Diversion Project (From Randolph Ave to Baker for Bristol are approx. 50% Street). Project D = Bristol Street Traffic Signal Project (Bristol complete. Bear Street and Bristol Includes $1.7 Street @ The Camp and Bristol Street @ Newport Blvd Street n/o Baker are scheduled to million from the Southbound Frontage Road. Project E =Storm Drain be paved in the next 4-6 weeks. City of Santa Ana for the SA -Delhi Improvements at Randolph. $5,710,318.00 project $306,207.00 Drainage Fees CDBG Project: (2015-2016) Westside Improvements: This project consists of conducting field survey and preparation of Bay Street under construction; FY15/16 $175,943.00 CDBG construction documents for the repair of curb and gutter and Pomona under design unencumbered rehabilitation of Bay and Pomona streets. $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 unencumbered space. $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 $1,930,000.00 Gas Tax (2015-2016) (16-07) (Zones 14, 25, 26, and 27) Project under construction. $1,930,000.00 FY15/16 Citywide School Zone Traffic Calming Project (15-04) : The A change order to add additional intent of this project is to improve school zone safety with the ADA ramps and radar feedback installation of speed feedback signs, pedestrian countdown signs is being processed. Caltrans timers, school zone flashers, and minor striping and signing coordination and approval is improvements citywide in Costa Mesa. required due to the funding source. $706,200.00 FY12/13 $706,200.00 SRZS Funds $450,000.00 FY12/13 Citywide Storm Drain Improvements (12-13): Project consists Final design and environmental of construction of an underground Storm Drain System at the review under way. This project is on $885,000.00 FY16/17 hold pending further direction due south end of Fairview Park from Pacific Avenue to Canyon to Measure AA and the need for Drive. voter approval. Drainage $365,000.00 FY16/17 $365,000.00 Impact Fee page 2 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM page 3 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM FUNDING ALLOCATED TO DATE (OR PROJECT STATUS UNENCUMBERED BALANCE WHERE NOTED) FY AMOUNT OF ANY GRANTS 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 These projects are scheduled to be Management System to meet the Cit with the Pavement Mana g y y advertised for construction in May $1,070,000.00 $1,070,000.00 Gas Tax 2017 Council Goal to reach and maintain an average Citywide Pavement Condition Index (PCI) of 85 by 2017. 15-16 Citywide Unimproved Alleys (16-03): 1) 19th Street Alley (Alley No. 70) located betweenl9th Street and Flower from Orange Ave to Westminster Ave 2) Flower St. Alley (Alley No. 77) located between Flower and Broadway from Orange to end 3) Flower St. Alley (Alley No. 78) located between Flower $500,000.00 FY15/16 $500,000.00 Gas Tax and Broadway from Orange to Westminster 4) Flower St. Alley (Alley No. 79) located between Flower and Broadway from Project being advertised for Westminster to Santa Ana Ave., 5) Broadway Alley (Alley No. construction bids. Construction 88) located between Broadway and Magnolia St. from tentatively scheduled to begin Raymond Ave. to Tustin Ave. 6) Broadway Alley (Alley No. 85) August 2017. located between Broadway and Magnolia St from Orange Ave. to Westminster Ave., 7) Broadway Alley (Alley No. 86) located between Broadway and Magnolia St from Westminster Ave to Santa Ana Ave. 8) Ginger Ave Alley (Alley No. 36) located between Ginger Ave and Mace Ave from Caraway Drive to Wintergreen Place. $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 Project in design phase. Conceptual and importance in order to establish the locations of plan developed. directional signs for guidance throughout the City. $50,000.00 FY14/15 Close Off Wall Openings at Various Locations (17-05): To close off openings that have historically been used for unintended uses; including illicit activities. CC has approved closing of Project advertised for construction bids. several 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 Project in construction. Completion Funding from M2 will Irvine Avenue (16-17) Federal Project No. SRTSC-5312(089) expected in August 2017 cover the balance of funding needs. FY13/14 $770,900.00 SRTS page 3 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM page 4 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM FUNDING ALLOCATED TO DATE (OR PROJECT STATUS UNENCUMBERED BALANCE WHERE NOTED) FY AMOUNT OF ANY GRANTS Fairview Park Delineation Fencing: This project addresses mitigation measures required by the Mitigated Negative Project being prepared to be advertised for construction. Declaration for the Fairview Park Master Plan. Unencumbered $60,000.00 Balance FY15/16 Fairview Park Master Plan: North Bluff Trail & Habitat Staff is actively seeking grants for implementation of the various Restoration Project elements of the Master Plan. future $200,000.00 CA Parks Pamryie..y Park PaFI(i FIg Let I igh+i.. . PUR ding fee the .design and ('....... fission i sehe dbile d to take cerci 7�M 4 Technical reports are being $335,000.00 FY12/13 updated. Environmental document Park Fairview Park - Placentia Avenue Connector Trail: Replacing for trail between Pacific and Canyon $250,000.00 0,000Development $25.00 Fund the existingeight foot asphalt trail with colored concrete. and associated entryway Bicycle improvements underway. Pending Corridor voter approval per Measure AA Improvement $835,959.00 Grant $835,959.00 Program Award of construction contract Fairview Park - Rehabilitate park parking lot(s) being recommended to City Council May 16, 2017. $202,250.00 FY16/17 Fairview Park - Plant Establishment and Pond Maintenance Project under construction. $100,000.00 FY16/17 Fairview Park Wetlands and Riparian Habitat Project: Maintenance Contract awarded. Unencumbered Complete Year 5 of the maintenance & monitoring plan Work underway. $0.00 Balance FY15/16 Fairview Road HSIP Improvements - Adams to Baker: project $80,000.00 FY16/17 $63,000.00 Federal HSIP provides improved traffic operations by restricting turning Submitted authorization to proceed movements at various driveways and a new traffic signal at with design request to CalTrans. the intersection of Fairview Road and Village Way. $630,600.00 FY17/18 $567,540.00 Federal HSIP NMUSD has completed feasibility $20,000.00 FY13/14 Field Lighting Program at Various School Sites: Partnership studies. NMUSD and the City $40,000.00 FY14/15 with the School District to install permanent sports lights. working on the first sites to be considered. Unencumbered $1,850,000.00 Balance FY15/16 Fire Station No. 1 Demolish Existing and Construct New Construction began March 2017. Tentative completion date Spring FY15/16 & Facility (16 16) 2018. $8,400,000.00 FY16/17 page 4 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM page 5 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM FUNDING ALLOCATED TO DATE (OR PROJECT STATUS UNENCUMBERED BALANCE WHERE NOTED) FY AMOUNT OF ANY GRANTS $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. $60,000.00 funding FY16/17 Fire Station No. 4 Parking Lot Rehabilitation: Creates new Award of construction contract handicapped parking stalls, ADA path of travel to the building, being recommended to City Council Unencumbered and rehabilitation of the parking lot pavement. May 16, 2017. $330,000.00 Balance FY15/16 Harbor Blvd & Gisler Ave Intersection Improvement (16-02): project to construct an additional eastbound optional through - left turn lane at this intersection. This requires widening of Project under construction. Gisler Avenue on the south side just west of the intersection. Coordinating with adjacent property The work requires traffic signal modification and owners. 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 the design concepts and rendering left -turn access, improves overall traffic operations. Design for the public outreach meetings. Meetings held with five major phase includes detailed studies of all driveways and outreach property owners. Public meeting to adjacent businesses in determining the median locations. held on August 16th, comments received and are being addressed. $1,088,100.00 $528,100.00 HSIP Harbor/South Coast Intersection Improvements - Design: The intersection of Harbor Boulevard - South Coast Drive On hold (Request for Proposals for PE phase to be issued.) Funds to be experiences significant congestion during morning and carried -over in a few weeks. Traffic Impact evening peak periods and is at Level of Service D. $200,000.00 FY15/16 $200,000.00 Fees Hyland/MacArthur Intersection Improvements - Design Design near completion. $37,500.00 $37,500.00 M2 1-405 Widening: Ground breaking in early 2018. Will have Design review work expected in mid major traffic impact on city. 2017 (CalTrans Design/Build) Jack Hammett Sports Field Improvements: FY15/16 funding Grant app application submitted $2,500,000.00 FY15/16 Park was to design and construct two synthetic turf fields. November 1, 2016 to the California Development Additional funding for FY16/17 to fund accessible walkways Department of Parks and Recreation$2,370,965.00 FY16/17 $2,370,965.00 Fund for the installation of sports turf to and restroom expansion. replace the grass. Unencumbered $275,000.00 Balance FY16/17 $275,000.00 CDBG page 5 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM page 6 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM FUNDING ALLOCATED TO DATE (OR PROJECT STATUS UNENCUMBERED BALANCE WHERE NOTED) FY AMOUNT OF ANY GRANTS Project being advertised for The Lions Park Projects (17-03): Demolish existing NCC, construction bids. Groundbreaking construction of new LEED Gold library, one acre park ceremony scheduled for July 28, improvements, and renovating/repurposing of the existing 2017. library facility to become the new LEED Silver NCC. $36 million FY16/17 $300,000.00 Gas Tax Median Landscape and Irrigation Improvements (16-19): On Construction complete. Project Mesa Verde Drive from Adams Ave West to Adams Ave East. being finalized for acceptance. $606,127.00 FY14/15 Newport Blvd Landscape Improvements: The Newport Boulevard frontage roads between 19th Street and Bristol Street include a number of areas adjacent to the SR -55 Design work completed. Project Freeway that remain unimproved and the parkways do not shelved until funding becomes available. include planter/buffers between the traveled ways and the sidewalk. 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 Design on hold. Request delay of 281 $,250 Measure M2 project to fy 17/18 subject limits to address operational deficiencies and accommodate current and projected traffic volumes. Traffic Impact $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 Recreation Commission tentatively planning tool to carry out the City's General Plan's Open Space scheduled for May 2017 Y and Recreation element's goals and policies. Unencumbered $31,630.00 Balance FY14/15 Park Security Lighting: This project replaces deteriorated or Park missingsecurity lighting around the lakes at TeWinkle Park y g g Working with consultant to secure grant funding from SCE Unencumbered Development and at Shiffer Park. $375,069.34 Balance FY13/14 $424,699.00 Fund $212,531.00 CMAQ (BCIP) Placentia Avenue Bicycle Signal Installation (14-01) project under construction. City to re -bid remaining items of work. $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 Project to advertise for bids in May FY15/16 $400,000.00 Gas Tax 2017 Estancia High School, and also improve the traffic operations on the street. $1,579,700.00 FY13/14 1 $729,700.00 HSIP page 6 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM page 7 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM FUNDING ALLOCATED TO DATE (OR PROJECT STATUS UNENCUMBERED BALANCE WHERE NOTED) FY AMOUNT OF ANY GRANTS Purchase of generators in progress. Police Department and Fire Station #4 Generator Replacement Installation contract to be advertised for bids in May 2017. Unencumbered $600,000.00 Balance FY15/16 Project V - community based transit Agreements being finalized for approval by Council in February. $3,100,700.00 FY16/17 $2,790,630.00 Measure M2 Red Hill Avenue Median Project: construction of landscaped Plan revisions being made. Project medians between McCormick Avenue and Bristol Street. to advertise for bids in May 2017 Awaiting CalTrans approval. $871,300.00 593,200.00 City Match $778,100.00 HSIP Security Camera Project: furnishing, installing, programming, licensing, integrating, testing, and the commissioning of Design Phase closed circuit video cameras and related equipment at five Unencumbered City owned locations In Costa Mesa. $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 Under design 1st floor and 2nd floor. Based on a Compliance Assessment report completed in 2015. $125,000.00 FY16/17 Tanager Bike Trail Improvements (17-02): Segment 1 of the Bike Trail Rehabilitation project which will introduce a new 10ft wide PCC concrete bike trail with integral colored concrete from Harbor Blvd. to Harla Ave.- City to match color Award of construction contract of new Harbor Bike Trail Improvement Project recently being recommended to City Council May 16, 2017. 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. Tewinkle Park - Skate Park Expansion: The expansion is to provide a dedicated area of approximately 12,000 to 15,000 square feet for young/beginner skaters. It will enlist the Conceptual Design Phase, public $50,000.00 FY15/16 support and collaboration of the skating community to come outreach and coordination with the up with the ideal layout for the proposed expansion and its skating community to start in the integration with the existing facility. The FY15/16 funding for summer 2017 Skate Park II has been repurposed toward the engineering for this expansion project. Unencumbered $20,000.00 Balance FY16/17 page 7 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM page 8 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM FUNDING ALLOCATED TO DATE (OR PROJECT STATUS UNENCUMBERED BALANCE WHERE NOTED) FY AMOUNT OF ANY GRANTS Traffic Signal Modification Project - Baker to Coolidge Project to start in July 2017 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 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 Traffic Signal Coordination Project - Sunflower Avenue Under design $725,000.00 $617,960.00 M2 W 17th Widening - Placentia to Superior (Design) Conceptual plans submitted by consultant $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 Field Review meeting conducted Street and the Santa Ana River trail system. with 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 geometrics. Traffic Impact $631,250.00 FY16/17 $350,000 Fees Maintenance Services CIP Projects: Balearic Community Center: Replace Electrical Service Waiting on spec revisions from Consultant $45,000.00 FY12/13 Building Modification Projects Several underway: approximately 60% complete $407,400.00 FY16/17 City Hall - 4th Floor Interior PaintingProject completed $80,000.00 FY15/16 page 8 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM page 9 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM FUNDING ALLOCATED TO DATE (OR PROJECT STATUS UNENCUMBERED BALANCE WHERE NOTED) FY AMOUNT OF ANY GRANTS City Hall - 4th Floor Carpet & Moving Project completed $164,000.00 FY15/16 Corp Yard Fleet Install Emergency Generator & Transfer Switch $90,000.00 FY14/15 Corp Yard/Police Facility - Replace automated fuel dispensing Project underway. authorization and tracking system $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 re -plaster entire pool $100,000.00 FY14/15 Paularino Park - Replace Picnic Shelter: To replace the deteriorating wood shelter with a prefabricated steel PO issued on shelter structure. This project also replaces the concrete area underneath the 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 Design Phase three wooden bridges with steel bridges. $100,000.00 FY15/16 Updates under review. Scheduled to Update Streetscape Standards be presented to the Parks and Rec Commission at a study session in June/July $25,000.00 FY14/15 page 9 Attachment 3 CIP Status Project 5-3-2017 (002) 5/4/2017 10:35 AM Proposed Potential Increases in Revenue Fees for FY 2017/18 Parks & Community Services Summary Table v 3 CD P&CS Current Fees Proposed Fees Estimated Revenue Program/Facility/Rental Increase Per Year (based on 2016 figures) Park Rentals 0-50 people: $30 per day 0-50: $15/hr x # of hours (min 4 hrs) 1 Category one — Private 51-150 people: $80 per day 51-150: $40/hr x # of hours (min 4 hrs) resident &non-profit 151+ people: $105 per day 151+: $62.50/hr x # of hours (min 4 hrs) Minimum increase = categories $16,205 + $5 administrative fee per rental for all rentals Park Rentals 0-50 people: $105 per day 0-50: $52.50/hr x # of hours (min 4 hrs) 2 Category two — Private 51-150 people: $205 per day 51-150: $102.50/hr x # of hours (min 4 hrs) non-resident categories 151+ people: $305 per day 151+: $152.50/hr x # of hours (min 4 hrs) Minimum increase = $4,400 + $5 administrative fee per rental for all rentals Park Rentals 0-50 people: $205 per day 0-50: $102.50/hr x # of hours (min 4 hrs) 3 Category three — 51-150 people: $305 per day 51-150: $152.50/hr x # of hours (min 4 hrs) Commercial companies / organizations 151+ people: $405 per day 151+: $202.50/hr x # of hours (min 4 hrs) Minimum increase = $1,470 + $5 administrative fee per rental for all rentals v 3 CD P&CS Current Fees Proposed Fees Estimated Revenue Program/Facility/Rental Increase Per Year (based on 2016 figures) Fly Field Permits Adult Permit: $25 /calendar year Add a $5 administrative fee for all fly permits 4 Adult Permit & Learner's Learner's Permit (ages 6-14): $15 Add a $5 non-resident fee for all applicable $2,970 Permit /calendar year fly permits L.E.A.P A monthly fee is charged: Introduce a $5 materials fee, per child, per month 5 Learn, Explore And Play Mon, Wed, Fri session - $198 per $3,600 program month (gam -fpm) Tues, Thurs session - $139 per month (gam -fpm) No administrative fee or materials fee is charged L.E.A.P A one-time fee is charged: Introduce a $5 materials fee, per child, per 6 Summer Session Mon, Wed, Fri session (gam- summer session $400 fpm) - $303 Tues, Thurs session (gam -fpm) - $187 No administrative fee or materials fee is charged P&CS Program/Facility/Rental Current Fees Proposed Fees Estimated Revenue Increase Per Year (based on 2016 figures) Camps $169 per child, per 5 -day week $205 per child, per 5 -day week (shorter (shorter hours-8am-5pm) hours-8am-5pm) 7 Summer Camp ($136 for 4 -day week) ($165 for 4 -day week) $24,758 $205 per child, per 5 -day week $225 per child, per 5 -day week (extended (extended hours-7am-6pm) hours-7am-6pm) (Not included l FY2017/18 total as ($165 for 4 -day week) ($180 for 4 -day week) proposed for FY 2018/19) Camp fees cover the cost of any excursions No administrative or materials Introduce a $5 materials fee fee is charged Camps $169 per child, per 5 -day week $205 per child, per 5 -day week (shorter (shorter hours-8am-5pm) hours-8am-5pm) 8 Spring (5 -day), Winter (2weeks, 4 -day weeks) ($136 for 4 -day week) ($165 for 4 -day week) & President's Day (4- $6,324 day) $205 per child, per 5 -day week $225 per child, per 5 -day week (extended (extended hours-7am-6pm) hours-7am-6pm) ($165 for 4 -day week) ($180 for 4 -day week) Camp fees cover the cost of any excursions No administrative fee or Introduce a $5 materials fee materials fee is charged P&CS Current Fees Proposed Fees Estimated Revenue Program/Facility/Rental Increase Per Year (based on 2016 figures) Free Youth Programs 9 Basketball No fee is charged Introduce a $10 enrollment fee $1,510 Free Youth Programs 10 Cheerleading No fee is charged Introduce a $10 enrollment fee $440 Free Youth Programs 11 Happy Feet Running No fee is charged Introduce a $10 enrollment fee $640 Club City Classes & Contract 70% (instructor) — 30% (City) for Make the split 65% (instructor) — 35% (City) Classes Classes the City provides that are led by staff 12 contract classes held outside of City -owned buildings 65% (instructor) — 35% (City) for across all classes Add an additional $5 administrative fee, per class enrollment, for all classes $119,703.50 and/or an external contract classes held in City - instructor owned buildings P&CS Current Fees Proposed Fees Estimated Revenue Program/Facility/Rental Increase Per Year (based on 2016 figures) Senior Center Travel Variable trip fees to cover costs Introduce a $5 administrative fee of specific trips (no revenue to 13 Organized trips /days City) $4,040 out for senior citizens No administrative fee is charged R.O.C.K.S — School Year A monthly fee is charged. Increase monthly fees by 5% 14 Recreation On Campus (Current full 9-month fee is For example: $66,000 for Kids program $412) Full 9-month payment would increase by: No materials fee is charged $21 2016/17 operating costs for the Which equates to: program is approximately: $602,000 • $2.33 a month • $0.55 a week • $0.12 a day • $0.03 an hour Introduce a $5 materials fee, per child, per month See attached worksheet for further analysis & proposed increases TOTAL PROPOSED P&CS Current Fees Proposed Fees Estimated Revenue Program/Facility/Rental PER YEAR Increase Per Year (based on 2016 figures) R.O.C.K.S No fee Introduce the R. O. C.K.S school year session ($111,250) pricing structure, as proposed 15 Summer Session 2016/17 operating costs for the (Not included in program is approximately: Introduce a $5 materials fee, per child, per FY2017118 total as (9 weeks) $147,500 month proposed for FY 2018/19) See attached worksheet for further analysis & proposed increases TOTAL PROPOSED $227,702.50 POTENTIAL ADDITIONAL PER YEAR P&CS REVENUE SUMMARY OF ALL P&CS PROPOSALS FOR POTENTIAL REVENUE INCREASES This format has been used to enable City Council to select and adopt all, some or none of these proposals. Park Rentals $22,075 Fly Field permits $2,970 L.E.A.P program $3,600 L.E.A.P Summer Session $400 R.O.C.K.S program $66,000 (R. 0. C.K.S Summer Session) ($111,250) (Proposed for FY 2018/19 & therefore, not included in FY 2017/18 figures) Camps $6,324 (Summer Camp) ($24,758) (Proposed for FY 2018/19 & therefore, not included in FY 2017/18 figures) Free Youth Programs $2,590 Contract classes $119,703.50 Senior Center Travel $4,040 TOTAL for FY 2017/18 $227,702.50 (TOTAL for FY 2018/19) ($363,710.50) Staffing 380 Participants 10 Weeks DRC 296 Participants 9 Weeks Sonora 214 Particpants 9 Weeks 2017 Summer R.O.C.K.S Program Projected Cost Ratio 1:20 Additional Spending Health/Safety Small Tools/Equip Stationary/Office Total Participants in 2016: 890 Total summer cost per child: $150.36 3 Recreation Leader Ills 16 Recreation Leader IIs 3 Recreation Leader Ills 12 Recreation Leader IIs 2 Recreation Leader Ills 9 Recreation Leader IIs Price cost per week: $16.71 (9 weeks); $15.04 (10 weeks) $12.46 30 hrs/wk $11.35 26.25 hrs/wk Total: $58,884.40 $12.46 30 hrs/wk $11.35 26.25 hrs/wk Total: $42,270.12 $12.46 30 hrs/wk $11.35 26.25 hrs/wk Total: $30, 861.54 Staffing total: $132,016.06 Total: $900-$1000 Total: $400-$500 Total: $200-$300 Grand total: $133,816.06 Summer R.O.C.K.S Fee Options One time fee would cover enrollment in entire summer session (9 wks) Fee per participant Fee Average Attendance Estimated Revenue $2 1000 $2,000 $4 1000 $4,000 $5 1000 $5,000 $10 1000 $10,000 $15 1000 $15,000 $20 1000 $20,000 EJ Current Fees Full Year $412 15% 20% Tri -Installment #1 $170 Tri -Installment #2 $126 Tri -Installment #3 $126 $152 $158 3 -week Session $38 4 -week Session $49 5 -week Session $60 2016/17 City costs for program School Year $601,991 Summer Session $147,679 R.O.C.K.S Fees 5% 10% 15% 20% 25% 30% 35% $133 $139 $145 $152 $158 $164 $171 $133 $139 $145 $152 $158 $164 $171 $433 $454 $474 $495 $515 $536 $557 $179 $187 $196 $204 $213 $221 $230 $133 $139 $145 $152 $158 $164 $171 $133 $139 $145 $152 $158 $164 $171 $40 $42 $44 $46 $48 $50 $52 $52 $54 $57 $59 $62 $64 $67 $63 $66 $69 $72 $75 $78 $81 $433,000 1 $454,000 1 $474,000 1 $495,000 1 $515,000 1 $536,000 1 $557,000 Approximate Revenue based on session average of 1,000 Calculation used: 1,000 x full year payment Proposed Potential Increases in Revenue Fees for FY 2017/18 Community Risk Reduction / Fire Prevention Summary Table Operational Fire Permit Current fees Proposed fees Estimated revenue increase per year (based on 2016 figures) 1. New Operational Permit $185.00 $270.00 $8,500 2. Renewal of Operational $45.00 $140.00 $26,000 Permit Fire System Plan Review & Current fees Proposed fees Estimated revenue increase per Permit Fees year (based on 2016 figures) 3. Fire Sprinkler System NFPA $125.00 + $3.00 per head $725.00 + $7.00 per head $5,000 13 & 13R (includes 2 inspections) 4. Fire Sprinkler System NFPA $125.00 + $3.00 per head $430.00 + $7.00 per head $70,000 13D (includes 2 inspections) M 5. Tenant Improvement - Fire $125.00 + $3.00 per head $300.00 + $7.00 per head $20,000 Sprinkler System NFPA 13 & 13R (includes 2 inspections) 6. Fire Alarm System $195.00 + $5.00 per device $395.00 + $7.00 per device $15,000 (includes 1 inspection) 7. Commercial Hood $280.00 + $5.00 per device $360.00 + $7.00 per device $2,000 Extinguishing System (includes 1 inspection) 8. Additional Plan Check/ No fee is charged Hourly Rate (Fire Protection Analyst) Not tracked in 2016 Revision / Resubmittal Building Plan Review for Fire Current fees Proposed fees Estimated revenue increase per & Life Safety year (based on 2016 figures) 9. Occupancies classified as: No fee is charged Hourly Rate (Fire Protection Analyst) $50,000 A, E, High Rise, I, R, S, and others at the request of Building Department Fire & Life Safety Inspections Current fees Proposed fees Estimated revenue increase per (Company) year (based on 2016 figures) 10. One to 2,500 sq. ft. No fee is charged $50.00 $125,000 11. Over 2,500 sq. ft. No fee is charged $250.00 $375,000 TOTAL PROPOSED $697,000 POTENTIAL ADDITIONAL PER YEAR COMMUNITY RISK REDUCTION / FIRE PREVENTION REVENUE SUMMARY OF ALL COMMUNITY RISK REDUCTION / FIRE PREVENTION PROPOSALS FOR POTENTIAL REVENUE INCREASES Operational Fire Permit $34,500 Fire System Plan Review & Permit Fees $112,500 Building Plan Review for Fire & Life Safety $50,000 Fire & Life Safety Inspections (Company) $500,000 TOTAL $697,000 This format has been used to enable City Council to select and adopt all, some or none of these proposals.