FISCAL YEAR PROPOSED BUDGET PRESENTATION

Transcription

1 FISCAL YEAR PROPOSED BUDGET PRESENTATION Presenter: Greg Nyhoff, City Manager June 05, 2017

2 FY BUDGET WORKSHOP SCHEDULE June 05, 2017 Time Topic Lead 5:00 5:30 P.M. Welcome & Budget Overview Greg Nyhoff 5:30 6:15 P.M. Police Department Chief Whitney 6:15 6:45 P.M. Fire Department Chief Base 6:45 7:15 P.M. Development Services Ashley Golden 7:15 7:30 P.M. City Attorney Steve Fischer 7:30 8:00 P.M. Economic Development Kymberly Horner 8:00 8:45 P.M. City Treasurer/City Clerk/City Mgr Multiple 8:45 9:15 P.M. Closing Comments 2

3 FY BUDGET WORKSHOP SCHEDULE June 07, 2017 Time Topic Lead 1:00 1:15 P.M. Introductory Remarks Greg Nyhoff 1:15 1:45 P.M. Housing Department Arturo Casillas 1:45 2:00 P.M. Public Works - Non-Utility Dan Rydberg 2:00 2:30 P.M. Utilities Environmental Services Dan Rydberg 2:30 3:00 P.M. Utilities - Water Dan Rydberg 3:00 3:30 P.M. Utilities Wastewater Dan Rydberg 3:30 4:00 P.M. Cultural & Community Services Ingrid Hardy 4:00 4:15 P.M. Information Technology Keith Brooks 4:15 4:30 P.M. Human Resources Steve Naveau 4:30 4:45 P.M. Finance Jim Throop 4:45 5:15 P.M. Measure O Greg Nyhoff 5:15 5:30 P.M. Wrap up & Next Steps 3

4 Budget Presentation Outline 1 2 FY Budget Overview FY Budget Challenges FY Budget Summaries Council Strategic Priorities Conclusions 4

5 FY PROPOSED BUDGET OVERVIEW 5

6 PROPOSED FY BUDGET OVERVIEW Moving from Extraordinary Challenges to Stabilization Recruited new management team members Resolved structural imbalance in revenues and expenditures Completed two financial audits in twelve months Correcting numerous financial audit findings and recommendations Rectified operational and financial deficiencies in landscape maintenance & community facilities districts Stabilizing finances of enterprise funds Secured new letters of credit for city debt Expanded neighborhood associations Secured new labor agreements with city unions 6

7 PROPOSED FY BUDGET OVERVIEW Results of Council Decisions and Staff Efforts: City is financially stronger and more resilient Budgets are balanced Utilities are on the path to recovery and repair New leadership team is experienced and committed to Oxnard City staff is stable, productive and ready to serve the public Strategic goals and objectives are being achieved Administrative systems are being rebuilt and strengthened Relationship with city labor groups is being solidified Aging vehicles, equipment and facilities are being replaced and repaired 7

8 PROPOSED FY BUDGET OVERVIEW High-Level Budget Highlights Recommended Budget = $414 million Increase of 9% from prior year Same staffing levels for most services New staffing for: Police Development Services Office of the Treasurer 8

9 PROPOSED FY BUDGET OVERVIEW High-Level Budget Highlights 134 Limited Benefit Positions Converted to Full-Time Equivalents Employees have equal status, pay and benefits (based on labor agreements) Implements employee salary and benefit adjustments based on labor agreements All employees now contribute to the cost of pensions Miscellaneous employees will contribute full 7% by end of contracts Public Safety will contribute 5% of the 9% by end of contracts PEPRA employees contribute 50% of cost as determined by CalPERS Mid-management employees now eligible for annual step increases 9

10 PROPOSED FY BUDGET OVERVIEW High-Level Budget Highlights Increase in Police Services to Community 15 new positions added to the police force (14 in FY and 1 in FY ) New software maintenance services for body-worn cameras New private security agreement for Main Library and Service Center Additional overtime allocation for increased coverage Fire Services 26 Firefighter positions in fire academy $1 million for mandatory fire station coverage citywide 10

11 PROPOSED FY BUDGET OVERVIEW High-Level Budget Highlights Increase in Development Services Three new positions (cost neutral) Maintain development review schedules Expeditiously approve new development proposals and projects Increase in Utility Billing and Treasury Three new positions (cost neutral) Increase in business licensing activities and collections Improve customer service and shorter payment lines for residents and business 11

12 PROPOSED FY BUDGET OVERVIEW High-Level Budget Highlights New Landscape Maintenance and Community Facilities Division Ten positions funded and dedicated to the districts All landscape maintenance district work performed by private contractor Work to be paid after inspections are performed and work is verified Implementation of new water rates Pass-through rates adopted on February 7, 2017 New 218 rate process authorized on April 18, 2017 Stabilizes water fund and strengthen financial position 12

13 PROPOSED FY BUDGET OVERVIEW High-Level Budget Highlights Implementation of new wastewater rates New URAP process and recommendation Successful Proposition 218 Notice process (2% protests) Council approval of five consecutive annual increases of 5.25% creating financial stability Approved a rate-payers assistance program Implementation of solid waste pass-through rates Renewed emphasis on infrastructure $10 million for Street Reconstruction and Repairs 13

14 PROPOSED FY BUDGET OVERVIEW Other Notable Items: High-Level Budget Highlights Advancement of Strategic Plan Goals and Objectives Downtown Plan Adopted By Council Renewal of Dallas Cowboys Summer Camp Agreement Deployment of Oxnard Smartphone Application Successful Meet-up Clean-up Program Activation of New Neighborhood Councils Partnership with the Alliance for Linked Learning (Summer at City Hall) Approval of New Internal Auditor Agreement and Program 14

15 PROPOSED FY BUDGET OVERVIEW Final Comments and Acknowledgements Restored fiscal confidence and accountability Improvements in service delivery and responses to requests for service Greater staff engagement with neighborhoods and community Improved relations between management and labor groups Emphasis on the protecting the environment and beach habitats Continued partnerships with local schools and organizations RENEWED HOPE FOR A BETTER OXNARD! 15

16 FY BUDGET CHALLENGES 16

17 FY Budget Challenges 1. A $3,000,000 reduction in General Fund revenue due to the Infrastructure Use Fee being removed 2. Increasing pension costs 3. Rebuilding Finance and Human Resources staff: New Chief Financial Officer and Assistant Chief Financial Officer New Human Resources Director 4. Approving the Wastewater rates prior to budget adoption 5. Lawsuits with Measure M, and Infrastructure Use Fee 6. Continued effort in correcting the 111 FY2016 audit findings 7. Continued effort in correcting the 128 organizational assessment findings 8. Conversion of Limited Benefit Employees to full-time equivalent for qualified positions 9. Funding of Fleet, Technology, and Facilities replacement funds 17

18 FY BUDGET SUMMARIES 18

19 FY vs. FY ALL Funds Comparison FUND FY Adopted* FY Proposed * General Fund $122.3 $125.2 Public Safety Carmen Override Tax Measure O (½ Cent Sales Tax) Water Wastewater Environmental Resources Golf Course Performing Arts and Convention Center Internal Service Other City Funds and Programs Housing Authority (Non-City) Total All Funds $379.1 $414.0 *In millions 19

20 Proposed FY ALL Funds Expenditures (in millions) Citywide Expenditures: $414 million $34.8, Other Funds $29.5, Internal Svcs $27.9, Housing Authority Non-City $2.1, PACC $.9, Golf $125.2, General Fund $45.9, ER $62.0, Wastewater $58.9, Water $13.9, Carman Override Tax $13.0, Measure O 20

21 General Fund Revenues by Source (in Millions) Other, $29.7 TOT, $5.2 Property Tax, $54.1 Business License Tax, $5.4 Sales Tax, $30.5 NOTE: Other Funds include: Franchise fees, building permits, intergovernmental, service fees/charges, fines & forfeitures, interest income, and more. 21

22 General Fund Revenues Property Tax Property Tax Over 10 Years (in Millions) Average Change 3% FY08-09 FY09-10 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 Adopted FY17-18 Proposed 22

23 General Fund Revenues Sales Tax SALES TAX (in Millions) excluding Measure O Average Change 3% over 10-Year FY08-09 FY09-10 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 Adopted Budget FY16-17 Estimated Actuals FY17-18 Proposed 23

24 General Fund Revenues TOT (Hotel Tax) Transient Occupancy Tax (in Millions) Over 10 Years FY08-09 FY09-10 FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 Adopted Budget FY16-17 Estimated Actuals FY17-18 Proposed 24

25 Key General Fund Revenues Source Key Assumptions Property Taxes +5.0% property tax increase over projected FY estimates Sales Taxes +6.0% sales tax increase in General Fund over FY Fees, Fines, Forfeitures +5.4% increase in fines & forfeitures over projected FY estimates Franchise Fees +4.9% increase over FY estimates Transient Occupancy Tax +2.0% increase over FY estimates Business License & Property Transfer Taxes +3.9% increase over FY , due in part to additional staffing to assist with backlog of licensing 25

26 Positive Economic Indicators $35.0 Oxnard is the largest producer of sales tax in the county Oxnard s continued sales tax growth places it at the top among other cities in the county The Collections (restaurants, clothing, food), auto dealerships, and discount department stores were the leaders in sales tax generation For fourth quarter 2016 Oxnard experienced sales tax growth of 5.9%, while the county as a whole was down 1.6% City of Oxnard Historical Sales Tax $30.0 $25.0 $35.0 $30.0$24.2 $25.0 $24.2 $25.1 City of Oxnard Historical Sales Tax $27.4 $25.8 $25.1 $25.8 $27.4 $29.9 $29.8 $29.9 $30.5 $20.0 $20.0 $15.0 $15.0 $10.0 $5.0 $10.0 $0.0 FY FY FY FY FY FY FY FY FY FY FY FY

27 General Fund Expenditures by Type (in Millions) 13.2% Operating Expenses $16.5M 8.4% Internal Services $10.5M 8.5% Debt & Transfer Out $10.6M 69.9% Salary & Benefits $87M 27

28 General Fund Expenditures by Department (in Millions) Debt Service and Transfers to other funds, $9.5M Development Services, $8.0M General Services $8.6M Library $3.6M Other depts, $17.8M Police Dept. $54.6M Recreation, $4.7M Fire Dept., $18.4M Note: Other Depts include City Manager, City Council, City Clerk, City Attorney, Human Resources, Economic Community Development, Finance, Treasurer and Non-Dept. Public Safety costs shown do not include Public Safety Retirement tax ($13.9M) and Public Safety share of Measure O revenues ($9.5M). 28

29 Police and Fire Total Expenditures In Millions $80.0M $60.0M $40.0M $20.0M $0.0M $29.5M $24.4M $25.2M Fire $66.5M $67.0M PD $69.5M FY Actuals FY Adopted FY Proposed NOTE: These costs include General Fund, Measure O, and public safety tax. 29

30 General Fund Summary Revenue (In Millions) FY Adopted Budget FY Proposed Budget Changes FY18 Proposed vs. FY17 Adopted % Change Beginning Balance Revenues: Property Tax % Sales Tax % Franchises % Business License Tax % Transient Occupancy Tax % Deed Transfer Tax % Building Fees & Permits % Fines & Forfeitures % Interest Income % Indirect Cost Reimbursement % Infrastructure Use % Service Fees & Charges % Other Revenues % Total Revenues % 30

31 General Fund Summary Expenditures (In Millions) FY Adopted Budget FY Proposed Budget Changes FY18 Proposed vs. FY17 Adopted % Change Expenditures by Department: City Attorney % City Clerk % City Council % City Manager % City Treasurer % Cultural & Community Services: % Development Services % Economic Community Development % Finance % Fire % Housing % Human Resources % Police % Public Works: % Non-Departmental % Debt Service & Transfer to Other Funds % Total Expenditures % Net Annual Activity Undesignated Unreserved Fund Balance Balance as % of Total Expend 10.1% 15.2% 31

32 General Fund Five-Year Forecast - Revenue 32

33 General Fund Five-Year Forecast - Expense 33

34 FY Measure O - Funding Recommendations Programs Proposed FY17-18 CAD/RMS Operational 800,000 City Corps Townkeeper Program 550,000 Enhance Community Police 2,800,000 Fire Station 8 Lease Debt 1,355,918 Fire Station 8 Operations 3,800,000 Fire Truck Lease ,182 Public Safety & Gang Prevention Intervention Total 9,475, Lease Revenue Street Bond 1,673,202 Alley Reconstruction and Roadway Repair 500,000 Traffic & Road Improvements Total 2,173,202 College Park Annual Maintenance 500,000 College Park Program 155,000 Day at the Park-Special Needs 17,453 East Village Park Maintenance 100,000 Homework Center Main Library 41,309 Library Integrated System 50,000 Library Wi-Fi Operational 2,000 Mobile Activity Center Services 50,000 Police Activities League (PAL) Operational 140,000 Preschool To You 135,000 Senior Nutrition Program Enhancement 40,000 Parks & Open Space Total 1,230,762 Ormond Beach Enhancement 50,000 Spanish Language Interpretation of Council Meetings 56,807 Other Community Improvements Total 106,807 12,985,871 34

35 Water Fund Budget Summary In Millions $70.0M $60.0M $68.9M $60.1M $47.5M $59.8M $50.6M $64.3M $60.3M $58.9M $50.0M $40.0M $30.0M $20.0M $10.0M $0.0M FY Actual FY Actual FY Projected FY Proposed Budget Revenue Expense 35

36 Wastewater Operating Budget Summary In Millions $40.0M $35.0M $31.7M $33.2M $28.6M $35.1M $36.8M $36.0M $33.9M $35.0M $30.0M $25.0M $20.0M $15.0M $10.0M $5.0M $0.0M FY Actual FY Actual FY Projected FY Proposed Budget Revenue Expense 36

37 Environmental Resources Operating Budget Summary In Millions $45.9M $46.0M $45.0M $44.0M $43.0M $42.0M $41.0M $40.0M $39.0M $38.0M $37.0M $36.0M $43.4M $43.2M $43.5M $42.9M FY Actual $40.2M FY Actual $39.8M FY Projected $44.3M FY Proposed Budget Revenue Expense 37

38 CITY COUNCIL S STRATEGIC PRIORITIES 38

39 FY to FY Strategic Priorities ORGANIZATIONAL EFFECTIVENESS QUALITY OF LIFE 1. Improve community safety and quality of life through a combination of prevention, intervention, and suppression efforts that address crime and underlying issues. 2. Address homelessness through the development and implementation of a multi-tiered strategy Foster a healthy and accountable corporate foundation by strengthening the support functions, which include Finance, Information Technology, and Human Resources. 2. Increase transparency with Council, community, and staff related to the City s budget and financial management processes. 3. Create a culture of learning and talent development that will lead to a quality workforce which meets the needs of our community. Strengthen neighborhood development, and connect City, community, and culture. ECONOMIC DEVELOPMENT INFRASTRUCTURE & NATURAL RESOURCES 1. Create vibrant and economically sustainable commercial, industrial, and retail industries. 1. Ensure Master Plans (MP) are current, synchronized, and consistent with the General Plan. 2. Enhance business development Enhance business retention and attraction. Develop asset management program that includes fleet, facilities, parks, streets, water, wastewater, & stormwater. 4. Implement a one stop shop effort at the City s Service Center. 3. Ensure funding is adequate to meet the goals of the MP. 4. Ensure proper construction and maintenance of infrastructure to provide maximum benefit with lowest life cycle cost following CIP plans. 5. Ensure orderly development and long-range conservation and management of our natural resources and coastal assets. 5. Revitalize Oxnard s downtown and pursue economic development opportunities 39

40 CONCLUSIONS 40

41 Conclusions Fiscal Year Extraordinarily Challenging Getting our fiscal house in order. $12 million worth of reductions needed. Resetting our Finance, Staffing Levels and Service levels. Utility rate increases in Wastewater, pending increases in Water and Environmental Resources. Fiscal Year Stabilization Year Downtown Revitalization ($6 Million investment) Position us well into the future. Proposed same staffing levels some improvements in needed areas Funding for Fleet/IT/Building Maintenance recommended 1 st Step towards priority based budgeting: Council Strategic Priorities. Complete rebuild of Human Resources and Finance department. Fiscal Year Transitioning Year Begin discussion regarding weaning off of Measure O. Over $12 million of ongoing Measure O expenditures. Begin implementation of priority-based budgeting. Continue to improve fund balance reserves. 41

42 Conclusions Oxnard 2020 Determining our Future Now 42

43 Next Steps June 5&8th Department Budgets/Utilities June 13th June 20th Public Hearing on Proposed Budget Council Adoption of FY Budget Summer/Fall Year CIP Budget Presented to Council Access the Proposed FY 17/18 Budget on the City s website at Click on the City Budget Documents section. 43

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