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Home My WebLink About01 - Presentation - FY2021-2022 Proposed Operating and Capit - 5/25/2021FY 2021-22 PROPOSED OPERATING AND CAPITAL BUDGET OVERVIEW Finance and Pension Advisory Committee (FiPAC) May 26, 2021 CHARTING THE PATH TO RECOVERY FY 2021-22 PROPOSED BUDGET OVERVIEW •FY 2021-22 Proposed Budget Highlights •FY 2021-22 Revenue Highlights •FY 2021-22 Expenditures Overview •Budget Calendar GUIDING PRINCIPLES FY 2021-22 Proposed Budget was inspired by the five Strategic Plan Goals: •Recruit and retain high quality staff •Achieve long-term fiscal sustainability •Strengthen public safety and keep the community safe •Maintain and enhance the City’s infrastructure, facilities, equipment, and technology •Diversify, stabilize, and increase housing to reflect community needs FY 2021-22 PROPOSED BUDGET The Proposed All Funds Budget totals $197.9 million, a $34 million, or 20.8% increase from the FY 2020-21 Adopted Budget. The Proposed General Fund Budget totals $154.4 million, a $17.8 million, or 13.0% increase from the FY 2020-21 Adopted Budget. ALL FUNDS OVERVIEW FISCAL YEAR 2021/22 ALL FUNDS $197.9 MILLION GENERAL FUND, $154,402,680 , 78% SPECIAL REVENUE FUNDS, $12,947,883 , 7% CAPITAL PROJECTS FUNDS, $16,104,371 , 8% INTERNAL SERVICE FUNDS, $14,475,944 , 7% SPECIAL REVENUE FUNDS Special Revenue Funds account for proceeds of specific sources that are legally restricted for specific purposes. Highlights: •Culture Arts Master Plan Fund – funded by Measure Q in FY2021-22, funds will be used to continue the efforts of the Arts and Culture Master Plan including funding an Art Specialist position, ART Venture, program opportunities for local artists; •American Rescue Plan (ARP) Fund – allows for Federal funding to backfill the loss of revenues and reinstate service reductions taken due to the pandemic. CAPITAL PROJECT FUNDS Capital Project Funds account for the acquisition or construction of major capital facilities. Highlights: •Traffic Impact Fees – used for off-site transportation improvements. Major projects in FY2021-22 include bicycle and pedestrian infrastructure improvements. •Capital Outlay Fund – to account for capital expenditures financed by the General Fund. The FY2021-22 fund projects concentrate on Citywide street improvements. INTERNAL SERVICE FUNDS Internal Services Funds accounts for activities provided to other Funds, Departments. Highlights: •Equipment Replacement Fund – accounts for fleet used by departments. Staff will prepare a three to five-year plan to address the fund balance shortfall. Staff recommends the use of undesignated fund balance of $2.2 to start to address this fiscal shortfall. •Information Technology Replacement Fund – fully funded in FY2021-22; funds Year 2 of the Five-Year Information Technology Strategic Plan (ITSP), which includes 2 full-time positions (Network Administrator & Program Analyst II), Fire MDC (mobile data computers), and also allocates funding from existing Fund Balance to fully appropriate multiple IT projects such as the Enterprise Resource Planning (ERP) System. FY 2021-22 Proposed General Fund Revenues FISCAL YEAR 2021-22 PROPOSED GENERAL FUND BUDGET PROPOSED GENERAL FUND REVENUE The General Fund revenue and sources of funds is comprised of: Projected recurring General Fund revenues of $144.6 million The use of $6.6 million in Federal American Rescue Plan Funds, approved by Congress as “revenue replacement” Estimated $3.2 million in Declared Disaster Reserves, if needed, to restore employees based salaries previously reduced via furloughs GENERAL FUND REVENUE HIGHLIGHTS General Fund revenue is $144.6 million, reflecting an increase of $18.3 million, or 14.5% from the FY 2020-21 Adopted Budget •Property Tax is estimated at $49.6 million, an increase of $5.4 million, or 12.2%, due to higher assessed values •Increase of Transient Occupancy Tax, estimated at $5.6 million, an increase of $796,468, or 16.7% •Increase of Sales Tax from FY 2020-21 Adopted, estimated at $61.0 million, an increase of $5.6 million, or 10.2% •Projected Measure Q includes $2 million in estimated taxes FY 2021-22 Proposed General Fund Expenditures FY 2021-22 PROPOSED GENERAL FUND OVERVIEW •Incorporates 9.7 full-time positions mostly attributed to the reallocation of part-time positions to full-time; of which four are not in the General Fund; •Fixed costs increases; such as PERS, and insurance premiums; •Additional $4.7 million in capital spending as required by the Capital Asset Needs (CAN) Ordinance; •Reinstates the five percent compensation for employees of $3.0M •Funds 17.4 previously defunded positions by $1.7M; •Increase of $210,600 for the IT Replacement Fund ; •Continuation of the $4.0M vacancy factor (negative appropriation) adopted in FY 2019-20 General Fund Budget. CHARTING THE PATH TO RECOVERY “…PROMOTING A VIBRANT COMMUNITY…” AND Strengthen public safety & keep the community safe CREATING A PATH TO RECOVERY – PUBLIC SAFETY Public Safety Represents 53% of General Fund PUBLIC SAFETY Police Department: •Increases sworn staffing levels to 138 positions •Restores funding for helicopter services ($152,000) and Overtime ($81,472) •Includes $156,000 to store cannabis evidence •Reallocates a PT Crime Prevention Specialist to FT •Fleet replacement: 7 units for $270,000 •CIP: Carpet replacement, range remodel, underground storage tank removal for a total of $1.7 million PUBLIC SAFETY •Restores funding for four Fire Fighter positions •Realigns one PT Emergency Services Coordinator to FT, and two PT Fire Protection Specialists to FT •Fleet: includes brand new Fire Pumper Truck, and replaces one Fire vehicle •CIP: Repairs and upgrades at multiple fire stations $1.2 M: •Fire Station 1 – HVAC •Fire Station 2 – Reconstruction / Design •Fire Station 3 –Facility Repairs (station roof and wall water proofing) Fire and Rescue Department CHARTING THE PATH TO RECOVERY “…Promoting a Vibrant Community…” And Maintain and Enhance the City’s Infrastructure, Facilities, Equipment And Technology PROMOTING A VIBRANT COMMUNITY •Fully funds Year One of Arts and Culture Master Plan •Creates a new Arts Specialist position •Restores funding for: 94 PT furloughs and layoffs of $106,560; Full salaries and benefits of $111,440; Animal on-call services of $96,589; Operating and special events of $159,000. •Realigns a PT Maintenance Worker and a PT Recreation Specialist to a FT Maintenance Worker Parks and Community Services PROMOTING A VIBRANT COMMUNITY •CIP: Jack Hammett Sports Park Expansion, Ketchum-Libolt Park Expansion, Open Space Master Plan Update, playground and park equipment, and various park repairs and upgrades for $2.0 million Parks and Community Services Non-Departmental •Restores promotions budget by $164,000, such as the Snoopy House event, summer concerts, and community promotional materials. •Increase funding of Homeless Services by $822,000. DEVELOPMENT SERVICES •Fully funds 2.0 Code Enforcement Officers and 1.0 Assistant Planner as approved by the Measure Q Staffing Plan •Restores fully annualized 3.75 full-time positions and 2.75 part-time positions; • 0.75 Plan Checker, Building Official, Plan Checker, Engineer, Code Enforcement Officer • P/T: Assistant Planner, Code Enforcement Officers, Plan Checker •Restore funding of $333,400 for: Overtime Professional Services Contract staffing for large upcoming projects PUBLIC SERVICES New Active Transportation Coordinator New Senior Management Analyst New Associate Engineer (Funded by Measure “M2” Fairshare) Executive Secretary to an Office Specialist II Part-time Engineering Technician II to full-time Part-time Maintenance Assistant to full-time MAINTAINING AND ENHANCING THE CITY’S INFRASTRUCTURE, FACILITIES, AND EQUIPMENT AND TECHNOLOGY MAINTAINING AND ENHANCING THE CITY’S INFRASTRUCTURE, FACILITIES, AND EQUIPMENT AND TECHNOLOGY •Restores FY 2020-21 funding for: Pressure wash, sidewalk and street repairs for $500,000 Sprinklers and landscape for $387,500 Equipment and overtime for $142,000 •Energy and Sustainability: Community Choice Energy Feasibility study EV Charging Stations Public Services INFORMATION TECHNOLOGY •Fully funds Year 2 of the Information Technology Strategic Plan (ITSP) •Restores vacancy defunded for $100,000 •Restores funding by $101,633, for Operating supplies, equipment, materials Document Imaging, Pictometry and Accella •Includes funding for annual software increases and professional services by $170,496 •Reduces FY 2019-20 Adopted Budget vacancy factor by $60,000 CHARTING THE PATH TO RECOVERY Recruit and Retain High Quality Staff RECRUIT AND RETAIN HIGH QUALITY STAFF •Enhances 4.0 full-time positions from other funds • Includes 2.0 position in Information Technology as approved in the Five Year IT Strategic Plan • Adds an Arts Specialist funded by the Measure Q Arts • Funds an Associate Engineer funded by Measure “M2” •Realigns General Fund part-time positions to full-time for a year over year growth of 5.75 position; essentially 13% less then the pre -Great Recession staffing levels • Senior Management Analyst • Active Transportation Coordinator • Reclassifications from PT to FT to meet operational needs ACHIEVE LONG-TERM FISCAL SUSTAINABILITY •Fully funds new Assistant City Manager position, •Realigns 3.25 positions to meet increasing operational needs. • HR Analyst to Technician • HR Office Specialist II to Secretary • City Clerk: Admin Secretary to Management Analyst • 0.25 of an Office Specialist for Central Services •Restores contingency of $362,000 for a total amount of $500,000. City Manager’s Office RECRUIT AND RETAIN HIGH QUALITY STAFF •Restores 5% of staff salaries •Funds the 17.4 defunded positions •Includes all MOU contractual obligations, such as the elimination of Tier 2 salary schedules Reduction of 112 FTE, 18% STAFFING LEVELS FROM FY 2009/10 TO FY 2021/22 PROPOSED -13% CHARTING THE PATH TO RECOVERY Achieve Long-term Fiscal Sustainability ACHIEVE LONG-TERM FISCAL SUSTAINABILITY •Fully funds annualized Permit Processing Specialist for Measure Q •Restores funding for a Senior Administrative Analyst •Reinstates funding for actuarial, audit and other specialized finance services in the amount of $90k •Includes $50k for consulting and auditing services related to the Measure Q Retail Tax Finance Department ACHIEVE LONG-TERM FISCAL SUSTAINABILITY •Maximizes the City’s economic recovery through strategic investments in Citywide infrastructure, restoring staffing and service levels to pre pandemic levels. •Maximizes the Federal ARP funds to maintain essential services. •Provides full funding for Capital Fund and Information Technology Replacement Fund •Includes the use of Fund Balance Declared Disaster Reserves of $3.2 million to balance the FY 2021-22 Proposed Budget. •Plans above will help the City recover economically for the impact of the pandemic and help maintain the AA+ rates S&P (Standard & Poor’s). FY 2021/2022 PROPOSED BUDGET CALENDAR QUESTIONS? ESTIMATED FUND BALANCE (in millions)