Fiscal Year Proposed Budget

Transcription

1 Fiscal Year Proposed Budget

2 Tonight s Agenda Discussion of economic trends and issues. High-level discussion of proposed City budget. General Fund Specifics Updated Forecast Future meeting schedule

3 Economic Recovery California March unemployment at 9.4% versus 10.7% last year. Existing home sales up 7.5% in 2012 Recovery of stock market. Proposition 30 has provided temporary revenues to the State. Approval of Measure Y

4 Coming Issues CalPERS actuarial policy changes will result in significant increases to Employer Contribution Rate. Approximately a 50% increase over current rates, beginning in FY and phased in over five years. Significant future capital and operational costs for storm water management. Need to identify a solution that does not rely on General Fund support in the future. Funding for a study included in Proposed Budget.

5 Citywide Expenditures $201.2 Million

6 Citywide Revenues $194.8 Million

7 Enterprise Funds Are used to account for self-supporting activities that provide services on a user-charge basis. Example: Many cities provide waste removal services to residents. Users of these services pay utility fees, which the city deposits in a refuse enterprise fund. All expenditures for refuse services are charged to this fund. Major Culver City Enterprise Funds include Refuse, Sewer, and Transportation Funds.

8 Enterprise Funds APPROPRIABLE FUND BALANCE July 1, 2013 ESTIMATED REVENUE ESTIMATED EXPENDITURES ESTIMATED APPROPRIABLE June 30, 2014 REFUSE FUND (202) 2,136,323 11,663,135 12,408,836 1,390,622 BUS FUND (203) 8,119,913 31,546,835 34,676,552 4,990,196 SEWER FUND (204) 20,062,612 8,218,605 10,731,078 17,550,139 LANDSCAPE MAINT DIST. (425) 126, ,799 95, ,736 TOTAL ENTERPRISE 30,445,817 51,529,374 57,911,498 24,063,693

9 Internal Service Funds May be used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the governmental unit on a costreimbursement basis. Major Culver City Internal Service Funds include: Equipment Replacement, Equipment Maintenance and Fleet Services, Self Insurance and Central Stores.

10 Internal Service Funds APPROPRIABLE FUND BALANCE July 1, 2013 ESTIMATED REVENUE ESTIMATED EXPENDITURES ESTIMATED APPROPRIABLE June 30, 2014 EQUIP. REPLACEMENT (307) 8,969,976 1,679,450 1,716,000 8,933,426 EQUIP. MAINTENANCE (308) 332,844 8,214,077 7,923, ,462 SELF-INSURANCE (309) 1,795,660 9,804,000 7,876,630 3,723,030 CENTRAL STORES (310) 155,920 1,250,000 1,250, ,920 TOTAL INTERNAL SVCS 11,254,400 20,947,527 18,766,089 13,435,838

11 Special Revenue Funds Used to account for activities paid for by taxes or other designated revenue sources that have specific limitations on use according to law. Example: the State levies gas taxes and provides some of these funds to cities and counties. A local government will deposit this gas tax revenue into a special fund and spend the money for streets and road-related programs, according to the law. Culver City Special Revenue Funds include Gas Tax, Grants, CDBG Grant, Prop A & Prop C Local Return, Measure R, etc.

12 Special Revenue Funds * APPROPRIABLE FUND BALANCE July 1, 2013 ESTIMATED REVENUE ESTIMATED EXPENDITURES ESTIMATED APPROPRIABLE June 30, 2014 BUILDING SURCHARGE (412) 313,789 72, , ,789 GRANTS (414) 0 960, ,350 5,363 CDBG GRANT (427) 1,533 28,987 25,736 4,804 PROP A LOCAL RETURN (415) 874, , , ,134 PROP C LOCAL RETURN (424) 744, , , ,782 SECTION 8 HOUSING (426) 1,029,335 1,789,306 1,959, ,565 CC PARKING AUTHORITY (475) 42, , , CC HOUSING AUTHORITY (476) 2,192, ,019, ,962 ECON DEV PROGS (481) (85,798) 1,106, , ,153 CC SUCCESSOR AGENCY 12,876,355 22,000,000 20,773,837 14,102,518 TOTAL SPECIAL REVENUE FUNDS 17,988,882 27,521,637 28,342,212 17,168,307 * Includes Funds with appropriations

13 Capital Improvement Projects CIP Funding Sources: Amount Refuse Fund (203) $100,000 Sewer Enterprise Fund (204) $1,060,000 Gas Tax Fund (418) $750,000 Park Facilities Fund (Developer In-lieu Fees) (419) $81,000 Improvements & Acquisition Fund (General Fund) (420) $963,000 Developer Mitigation Fee Funded (420) $481,520 Prop C (424) $100,000 CDBG-Capital (428) $156,104 Measure R (431) $206,000 Total Sources $3,897,624

14 Capital Improvement Projects CIP Uses by Project Type: Amount Street & Alley Improvements $836,000 Traffic Signal & Lighting Improvements $1,136,520 Facilities Improvements $325,000 Technology Improvements $70,000 Equipment Acquisition $100,000 Parks & Park Facilities Projects $81,000 Sewer Improvement Projects $700,000 Refuse Improvements $100,000 Admin & Other $549,104 Total Uses $3,897,624

15 General Fund The General Fund is where general taxes like property and sales taxes are placed and where expenditures for many broad operations (like Police, Fire, and Parks) are released. The General Fund is often the fund most subject to economic fluctuation. For the first time in a number of years, ongoing revenues are estimated to cover ongoing costs.

16 General Fund Changes 2 positions deemed critical to achieving reaccreditation were added to Fire Department ($258,000) 1 Management Analyst & 1 Telecommunications Supervisor Increase in IT for City-wide software maintenance costs ($129,000) Remaining minor increases/reductions ($41,000) Increase transfer for CIP funding ($463,000) Transfer for PC Replacement Program ($135,000) One-time funding for various O&M items ($952,000)

17 General Fund One-Time O&M Proposed Department Description Amount City Attorney Legal Services - Successor Agency 100,000 City Clerk 2014 Election Services 75,000 Finance Update Fees and Charges Study 45,000 Finance TOT Audit 30,000 HR Legal Services 55,000 HR City-wide Salary Survey 50,000 PRCS Misc Supplies and Repairs 1,378 Police IT Software Upgrade for Communications 13,000 Fire Mandated Fees for Reaccreditation 13,150 Fire Backfill Costs for Recruits during Training 98,940 Fire Protective Equipment for Auxiliary Program 50,000 Fire Six full sets of Protective Gear for Recruits 19,116 Comm Dev Contract for Building Inspectors (Expedite Svcs) 125,000 Comm Dev Misc Supplies and Repairs 1,239 Public Works PW - OCS for Storm Water Mandates 100,000 Public Works Contract for Plan Checking (Expedite Svcs) 180,000 Public Works Repair Fountains at Vets 5,000 TOTAL 961,823

18 General Fund Revenues (in thousands) Adopted Estimated Proposed Sales Tax 17,700 19,500 26,622 Business Tax 10,050 10,050 10,050 UUT 14,925 14,475 14,500 Other Taxes 11,000 13,535 12,875 Licenses and Permits 2,093 2,505 2,579 Intergovernmental 3,471 3,471 3,565 Charges for Service 5,878 6,496 6,908 Fines and Forfeitures 3,510 3,510 3,507 Interfunds and Transfers In 8,482 7,231 6,575 Other 2,606 2,625 2,029 Total Operating Revenues 79,715 83,398 89,210 One-Time Revenue 2, ,000 Total Revenues 81,715 83,398 90,210

19 General Fund Revenue By Category Use of Money & Property 5% Charges for Service 9% All Other 8% Fines and Forfeitures 4% Utility Taxes 18% Intergov. 5% Licenses & Permits 3% All Other Taxes 4% Transient Occupancy Tax 5% Property Tax 5% Business License 12% Sales Tax 22%

20 General Fund Expenditures (in thousands) Adopted Estimated Proposed Personnel Costs 66,396 63,688 67,551 Operating O&M 12,238 12,841 12,332 Internal Service Fund Charges 7,864 7,864 9,219 Total Operating Expenditures $ 86,498 $ 84,393 $ 89,102 One-Time Expenditures One-Time O&M Transfer to Fund Transfer to CIP Total One-Time ,090 Total Expenditures $ 87,180 $ 85,024 $ 91,192

21 General Fund Expenditures By Category Internal Service Fund Charges 10% Other/Transfers 1% O&M 15% Personnel Costs 74%

22 General Fund Expenditures By Department PARKS, REC. & COMM. SVCS. 8% PUBLIC WORKS 11% COMMUNITY DEV. 6% TRANSFERS 1% POLICE 36% GENERAL GOVERNMENT 18% FIRE 20%

23 CalPERS Costs Actuarial changes already adopted by CalPERS will lead to significant increases in the Employer Contribution Rate from FY through FY CalPERS is also expected to reduce investment earnings assumption and increase mortality assumption in 2014, also increasing rates. An actuary was hired to look at Culver City s plans with CalPERS and forecast rates. Findings are consistent with CalPERS estimates of 50% increases.

24 CalPERS Costs

25 CalPERS Costs

26 General Fund Multi-Year Forecast Reflects increased CalPERS Employer Contribution Rates from Fiscal Year through Fiscal Year Incorporates the known Salary Initiative Ordinance (SIO) increases for current Los Angeles City contract. Assumes 1% SIO increase for Safety in Fiscal Year based on Los Angeles County. Assumes 3% SIO increases for Safety in Fiscal Year and beyond. Assumes no COLA adjustments for CCEA or CCMG. Reflects City making full Annual Required Contribution for OPEB in Fiscal Year and thereafter. Reflects returning to $1 million General Fund commitment to capital improvements. Assumes continued gradual economic recovery (no double-dip).

27 General Fund Multi-Year Forecast - Base

28 General Fund Multi-Year Forecast With Development

29 Upcoming Meetings Monday, June 3, 2013, 5:00pm Police Fire Public Works Transportation Tuesday, June 4, 2013, 5:00pm Parks, Recreation & Community Services Community Development City Manager/City Clerk/City Council City Attorney Information Technology Human Resources Finance Wrap-up Discussion Monday, June 10, 2013, 7:00pm Budget adoption on Agenda