City of Rancho Cucamonga

Transcription

1 City of Rancho Cucamonga Fiscal Year 2018/19 Proposed Budgets Budget Study Session June 7, 2018

2 Transition to the 21 st Century

3 Are we in the midst of a long recovery or getting closer to the next downturn? The local economy is strong Unemployment is at an all-time low (3.10% for RC) Job growth and business growth is steadily increasing Wages are beginning to rise and we are seeing good growth in key economic sectors Education is robust and continuing to improve There are limitations on what we as a City can do about housing supply and housing costs

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5 Are we in the midst of a long recovery or getting closer to the next downturn? Traffic, congestion, and air quality will continue to be challenges to be worked on and improved upon We are simultaneously in the midst of a now very long recovery, but also seeing the signs of increasing frothiness that typically precede an economic downturn We should use our knowledge and expertise to be informed by the past, focusing on what we can do, and not paralyzed by the future or overcome by what we cannot do

6 Is Rancho Cucamonga rural, suburban or urban? Rural is defined as of or relating to the country, country people or life, or agriculture Suburban is defined as the residential area on the outskirts of a city or large town Urban is defined as relating to or characteristic of a city In many senses, all of these are applicable to Rancho Cucamonga

7 Is Rancho Cucamonga rural, suburban or urban? The area of the City north of Banyan, on the east and west sides of the City, has very distinctly country characteristics Projects moving forward in FY 2018/19 that will preserve, enhance and improve the northern rural area of our city include: Refurbishing the main equestrian arena at Heritage Park North-Eastern Sphere Annexation Project (NESAP) Design of the next phase of Etiwanda Creek Park Completion of the next phase of Wilson Avenue

8 Is Rancho Cucamonga rural, suburban or urban? The area of the City south of Banyan to Church Street, generally between Archibald and Etiwanda Avenues is suburbia New projects happening in the suburban area of the City include: A mixed-use project featuring 300+ residential units, several sit-down fine dining restaurants, and a boutique hotel at the southwest corner of Base Line Road and Day Creek Boulevard

9 Is Rancho Cucamonga rural, suburban or urban? The Vintner a 5-story mixed use project including commercial on Foothill, hidden parking, luxury living and rooftop patios and recreation areas. Villa Pacifica adding an additional 60 units for low income seniors Merrill Gardens, located on Highland Avenue, east of Archibald Avenue, is under construction with 112 residential units for seniors The Rows and Bungalows, a higher density for sale residential project consisting of 214 units, is under construction at Church and Haven

10 Is Rancho Cucamonga rural, suburban or urban? The more urban area of Rancho Cucamonga typically is from Foothill Boulevard south This area of the City is experiencing substantial growth at this time, primarily because it still has larger undeveloped or underdeveloped parcels Some of the key projects in the urban area of the City include: A 200+ unit mixed use project for Haven Avenue and 26 th Street A Marriott Residence Inn at Haven Avenue and 6 th Street

11 Is Rancho Cucamonga rural, suburban or urban? Industrial construction is booming with various industrial warehouse buildings being constructed The Empire Lakes project was approved last year and will include new single and multi-family homes as well as mixed use; all transit oriented, walkable, and urban in scale and feel A new Shogun restaurant at Rochester and Foothill, along with a Dunkin Donuts across the street Haven City Market will be opening in the Fall of 2018

12 Are We Preparing for the Future, Protecting the Past or Creating the Present? Our City is transitioning in terms of infrastructure Some of our earliest infrastructure is 30+ years old and may be needing refurbishment, replacement, or additional maintenance A good example of this is the parks and landscaping on the west side of town Projects are limited without new revenue Key west side infrastructure projects in next year s budget include:

13 Are We Preparing for the Future, Protecting the Past or Creating the Present? Haven Avenue from Wilson to Vivienda equestrian trail installation (last of one-time funds) Installation of the $4.2 million Cucamonga Storm Drain Upper Phase 3 on Amethyst from Base Line Road to 19 th Street 9 th Street, north side, west of Vineyard Avenue, sidewalk improvements (grant funded) Archibald widening and equestrian trail installation north of Sunflower (last of one-time funds)

14 Are We Preparing for the Future, Protecting the Past or Creating the Present? The great challenge for the City is to properly fund both maintenance and repair of existing facilities while continuing to build out the remaining community facilities necessary to serve a resident base of 180,000 to 205,000 people We must protect some elements of the past, prepare for a future that is dynamically changing every day, and also create the present we desire One example of a unique program that addresses all of these needs is the City s Art in Public Places Program

15 Are We Preparing for the Future, Protecting the Past or Creating the Present? Another such program is the Rancho Cucamonga Public Library s unique program to eliminate overdue library book fines and fees We are preparing for new infrastructure through updated standards for small wireless communication facilities, also known as small cells, on City-owned streetlights

16 Are We Preparing for the Future, Protecting the Past or Creating the Present? Healthy RC - Mental Health focus We are preparing for the revolution in transportation we are now experiencing, which involves: Electrification of cars Autonomous vehicles Transportation network companies such as Uber and Lyft

17 Are We Preparing for the Future, Protecting the Past or Creating the Present? Rancho Cucamonga is fortunate because most infrastructure projects are funded by accumulated reserves in the General Fund and Special Funds To offset the loss of RDA reserves, beginning in FY 2013/14 the City has specifically budgeted money to go into General Fund reserves ($1,140,000 budgeted for FY 2018/19) Use of reserves for critical infrastructure often results in additional savings to the City s operating budgets Solar RC Expansion Project savings of $109,200 per year Street light purchase and LED conversion savings of $1,466,620 per year in energy costs across all SLDs

18 Are We Preparing for the Future, Protecting the Past or Creating the Present? One of the key focus areas of this year s budget is new infrastructure which yields a return on investment through economic development Construction of a $2 million Phase 1 of a RC Fiber Optic Network with a P3 element Etiwanda Grade Separation, a $60 million project, funded by SB1 (if it is not repealed in November 2018) Construction of a new $1.98 million Public Works Services Warehouse at the Corporate Yard $611,160 in AQMD funding for a Class 1 Bike Trail in Southwest Cucamonga

19 Are We Preparing for the Future, Protecting the Past or Creating the Present? $550,000 set aside in LMDs 2 ($110,000) and 4R ($440,000) specifically for turf removals along with converting existing planter sections with low water use landscape plants and materials Over $1 million in funding for new traffic signals and another $590,000 plus in signal upgrades, traffic signal synchronization funding, and traffic signal battery backups for use in the event of a power failure

20 Are We Preparing for the Future, Protecting the Past or Creating the Present? The largest single infrastructure component the City is responsible for is the network of streets inside our incorporated boundaries Traditionally, these streets have been maintained by Gas Tax funds a declining revenue source Without an inflation adjustment, the City has been falling behind each year and our Pavement Condition Index (PCI) has declined from 79% in FY 2010/11 to 72% in FY 2016/17 Further threats if SB 1 is repealed in November 2018

21 Are We Preparing for the Future, Protecting the Past or Creating the Present? Some of the projects funded by Gas Tax, Measure I, and General Fund revenues for local streets overlay and slurry seal programs; sidewalk and ramp improvements; and transportation related infrastructure projects include: 4 th Street from Haven to Milliken Amethyst from Hillside Road to the top Foothill Blvd from Milliken to the I-15 freeway Haven Avenue from Church to Base Line Hermosa from Banyan to Wilson Highland from Archibald to Haven Over $2 million in various local street pavement rehab projects throughout the City

22 Operating Budgets The operating budgets for Rancho Cucamonga are comprised of the following: City General Fund $83,944,400 Fire District Operational Funds $35,819,290 Library Fund $ 5,126,230 In addition to the operating budgets, the complete City budget includes other special funds which are restricted from use for general municipal operations. The total budget for Special Funds (including CIP) is $90,743,270. The Fire District s Capital Fund budget is $14,317,180.

23 City General Fund Key Revenues 92% of total General Fund revenues

24 City General Fund Operating Budget

25 Operating Budget Analysis: City General Fund Challenges on the expenditure side: Minimum wage increases For FY 2018/19, it will cost the City $300,000 to implement the minimum wage increases Increase in required PERS employer contribution rate from 18.59% to 27.18% over the next five years Subsidies to landscape maintenance districts in the total amount of $709,980 Police Department s budget will increase $2,611,530 due to increased public safety pension and labor costs and the addition of one new School Resource Officer

26 Fire District Revenues Principal revenue source is property tax; fluctuates based on: Annual inflation adjustment New secured properties being added to the tax roll Typically property tax changes lag one to two years behind other revenue changes Fire District s suspension of fees for its Inspection Program will continue Property tax revenue for the Fire District s two CFDs remains constant compared to FY 2017/18

27 Operating Budget Analysis: Fire District FY 2018/19 Fire District Operating Budget: $35,819,290 A $805,200 or 2.3% increase from prior year No use of reserves for the operating budget Continues to redistribute operating expenses in various areas to improve accountability and transparency Fees for fire inspections continue to be waived No increase in CFD assessments

28 Library Revenues Principal revenue source is property tax; fluctuates based on: Annual inflation adjustment New secured properties being added to the tax roll Typically property tax changes lag one to two years behind other revenue changes Library receives an allocation from the City s $0.05 of each property tax dollar Library receives an additional influx of property tax revenue from a statutory passthrough from the County that was initiated when the City took over Library operations from the County in 1994 Library s budget incorporates the elimination of overdue fines and materials lending fees

29 Operating Budget Analysis: Library FY 2018/19 Library Budget: $5,126,230 A $37,480 or 0.73% increase from prior year High-speed broadband internet services First full year at Biane and Archibald Libraries Construction of backup network circuit to be completed for Archibald New cloudlibrary collection to be established for online access to numerous book titles Maintains funding for books and materials for adults and children at both libraries

30 Operating Budgets By Department Public Safety: 60.7%* *A healthy city typically has between 50% and 70% of its budget dedicated to public safety. An unhealthy city is in excess of 70%.

31 Special Districts A new approach will eventually be needed to ensure fiscal stability for the West-side parks and landscape districts Lacking any new revenue, little capital replacement and lower maintenance levels will occur into the future The list of deferred and unfunded maintenance items continues to grow In four of the City s newer districts, rate increases are recommended this year Only recommended to maintain a structurally balanced budget for those districts

32 Special Districts Recommended changes for FY 2018/19 include: LMD 2 An increase of $14.63 for single family residences (SFRs) to $ per year due to increasing operating costs for landscaping contracts and water utility rates LMD 6 An increase of $12.40 for SFRs to $ per year due to increasing operating costs LMD 9 An increase of $96.92 for SFRs to $ per year to begin the ease back in the use of fund balance LMD 10 An increase of $24.91 for SFRs to $ per year due to increasing operating costs

33 FY 2018/19 Budget Major Changes Progress towards City Council goals Public Safety Adding an additional School Resource Officer Design and beginning of construction of a west-side Public Safety Facility for both Police and Fire (relocated Fire Station 2) Park and Recreation Development Preparing plans for a redesigned Cultural Center Courtyard Completion of Environmental Review on the remaining undeveloped 70 acres at Central Park Completion of the new RC Sports Center Further development of the Biane Library Second Story Interactive Discovery Space

34 FY 2018/19 Budget Major Changes Enhancing Premier Community Status Evaluating a new mixed-use project at Haven Avenue and 26 th Street, as well as a hotel project proposed at Haven Avenue and Fourth Street Manage construction of various new infill mixed use and medium density for sale and apartment residential projects Complete design and environmental for the Etiwanda Grade Separation project Design, construct, and implement an Intelligent Transportation System Construction of second warehouse at the Public Works Services Center Begin Solar RC 2.0

35 FY 2018/19 Budget Major Changes Mid- and Long-Range Planning NESAP Early work on special studies for specific topic areas in advance of a General Plan Update Begin implementing the Strategic Communications Plan Develop and share metrics that highlight the implementation of facets of the Sustainable Community Action Plan Goals are carried over into the following years until complete

36 FY 2018/19 Budget Major Changes Personnel Personnel is our largest expense We are still in the gray tsunami, but it is peaking. Total full-time turnover was 9.30% two years ago and 7.59% last year. CalPERS COSTS

37 FY 2018/19 Budget Major Changes

38 Fiscal Summary Proposed FY 2018/19 Budget is a product of past and continuing fiscal discipline enhanced by a recovering economy Following is a summation of all FY 2018/19 City budgets: City General Fund $83,944,400 Library Services $ 5,126,230 Fire Protection District* $50,136,470 Special Funds (including CIP) $90,743,270 *Includes Fire District Capital Fund budget in the amount of $14,317,180

39 Conclusion The City s focus still remains as it did in the early days after incorporation Control our destiny Don t be subject to the whims of others Build a World-Class Community City with a Plan We are one community We are one Rancho Cucamonga Where it doesn t just happen

40 Any Questions or Comments?