CITY COUNCIL FY 2018/2019 BUDGET WORKSHOP

Transcription

1

2

3 CITY COUNCIL FY 2018/2019 BUDGET WORKSHOP Presented by: David Kelley, City Manager Susie Holmes, Finance Manager Stephen Cramer, Police Chief Mark Rincon, City Engineer

4 Budget Presentation - Outline 1. Economic Update State and Local Economic Projections 2. Major Expenditure Update 3. Revenue Assumptions and Considerations 4. General Fund Expenditures by Type 5. General Fund Balance Summary 6. General Fund Reserve Fund Balance 7. List of Discretionary Projects 8. Police Department Budget Highlights

5 U.S. Economy - Economic Growth * California Legislative Analyst Office s new economic outlook assumes moderate economic growth in the U.S. over the next five years * Source: The May Revision - LAO Economic Outlook

6 2018 Local Economic Highlights Cloverdale s population grew to 9,149 in 2017, and is projected to reach 9,520 in This fiveyear growth projection is the third-fastest of Sonoma County s nine incorporated cities, at 4.1%. The city s median age in 2017 was 41.7, about a year higher than the countywide average. Cloverdale experienced the third-lowest unemployment rate among Sonoma County s cities at 2.9% in 2017, below the rates of the county (3.4%), the state (4.8%), and the country (4.4%). In 2017, Cloverdale had the ninth-highest median household income at $56,727. The city s median household income was $10,056 less than the countywide average. Five-year projections predict that Cloverdale s median household income will grow by 7.4% to $60,904 in Total taxable sales grew by 6.3% to $69.9 million, the highest single-year growth in the county. This translates as $7,635 in taxable sales per resident, slightly less than half the county average. Cloverdale s 2017 median home sales price rose to $525,000, the seventh-highest price among Sonoma County s cities and below the 2017 countywide median price of $535,000. Cloverdale experienced the highest single-year price increase at 9.8%. Source: Economic Development Board City of Cloverdale Profile and Projections Report

7 MAJOR EXPENDITURE CHANGES TO THE GENERAL FUND IN THE FISCAL YEAR 2018/2019 BUDGET WHEN COMPARED TO FISCAL YEAR 2017/2018 Salaries and Wages increased 3% $125,000 Liability Insurance increased 100% $103,000 Total Additional Expenditures $228,000 Budget includes $50,000 Chamber Contribution

8 REVENUE CONSIDERATIONS FOR FISCAL YEAR 2018/2019 BUDGET Possible Voter Repeal of SB-1 Road Maintenance funds. ($158,000) Possible reduction in Property Tax Revenue based on AB8 apportionment factors and going forward a direct impact on Prop 13 tax revenues until rebuilt or sold. (FY 2017/18 reduction amount was $42,000) Unbudgeted Cannabis revenue No Measure P revenue is included in the FY 2018/19 budget. Reason: Uncertainty of gross cannabis sales projections and the timing associated with one approved dispensary. Measure O, Utility User Tax provides approximately $445,000 in general fund revenue annually. Gas Taxes Gas Taxes represent majority of local sales tax revenues. Gas prices are expected to increase in the near term but future oil market is uncertain. Sales taxes are estimated to increase $59,000. Reduction of Unsecured Property Tax based on County of Sonoma estimates. ($110,000)

9 GENERAL FUND EXPENDITURES BY TYPE Adopted Projected Dept Budget YTD Actual Request Expense Type /30/2018 6/30/ /30/2019 Salaries & Benefits $ 4,259,013 $ 3,279,967 $ 4,057,024 $4,421,477 Services and Supplies 2,534,933 1,666,723 2,356,709 2,422,145 Other Financing Uses 65,000 45,581 65,000 65,000 Transfers Out 285, , , ,864 General Fund Expenses & Transfers Out $ 7,144,030 $ 5,305,948 $ 6,885,646 $ 7,190,486

10 GENERAL FUND BALANCE SUMMARY Adopted Projected Dept Budget YTD Actual Request /30/18 6/30/18 06/30/2019 General Fund Revenues $6,399,263 $5,015,578 $6,704,781 $6,286,766 General Fund Transfers In $815,475 $551,088 $775,475 $872,405 $7,214,738 $5,566,666 $7,480,256 $7,159,172 General Fund Expenses ($7,144,030) ($5,305,948) ($6,885,646) ($7,190,486) Net Gain (loss) $70,708 $260,717 $594,610 ($31,315) Reference - General Fund Summary on Page 5 of FY 2018/19 Budget

11 RESERVE FUND BALANCE ADDITIONAL COUNCIL DISCRETIONARY EXPENDITURES GENERAL FUND RESERVE BALANCE ($) GENERAL FUND RESERVE BALANCE (%) FY PROJECTED $ 2,538, % FY BUDGETED $ 2,507, % $ 100,000 $ 2,407, % $ 155,000 $ 2,352, % $ 210,000 $ 2,297, % $ 270,000 $ 2,237, % $ 325,000 $ 2,182, % $ 385,000 $ 2,122, % $ 445,000 $ 2,062, % $ 505,000 $ 2,002, % $ 565,000 $ 1,942, % GENERAL FUND RESERVE FUND BALANCE The current Draft budgeted General Fund Reserve is 34.9%. In accordance with the Council s adopted reserve policy (Reso ), Council has the option to reduce the fund balance to 25%. Staff recommends maintaining a budget reserve of 28% or higher in order to be prepared for unplanned expenses.

12 Department Description Detail General Fund City Council I-Pads for electronic agendas $ 9, Community YMCA Solar Project 17, City Manager Community Out Reach for Survey 7, Finance Financial Consultant 36, PD Admin DISCRETIONARY LIST LIEUTENANT Wages & Benefits 246, Travel/Training 6, Vehicle 40, ADD LIEUTENANT - 292, Facility Mtnce Corp Yard Building and Annex Building Roof Repair Streets Replacement Utility Truck 50, Street Light LED conversion - $350 ea 40, Thermoplastic Striping 25, Rockydale Construction 100, Impact Fees/ Other Revenue $ 40, Construction of Traffic Treadway & Blvd 300, , Parks Vehicle Replacement $50,000 27, , Planning CODE ENFORCEMENT Wages & Benefits 116, Travel/Training 3, Computer/Desk Setup 4, Vehicle 2, ADD CODE ENFORCEMENT OFFICER 125, Engineering Unit #1 Vehicle Replacement 35, Airport Airport Improvement 50, Reserves Increase Reserves Source of Revenue/ Current Fund Balance Corp Yard Impact Fees $469,000 Thoroughfare Impact Fee $555,000

13 DEVELOPMENT IMPACT FEES FY 2017/18 Fund # Fund Name Beginning Balance 7/1/2017 Revenue Expenditures or Transfers Ending Balance 6/30/ Admin Impact Fees $ 22,620 $ 10,998 $ 10,255 $ 23, Thoroughfare Impact Fees 491,658 82,255 19,286 $ 554, Storm Drain Impact Fees 61,791 2,452 60,000 $ 4, Quimby Act Impact Fees 199,820 32,139 $ 231, Parks & Rec Impact Fees 323, ,452 $ 510, Public Safety Impact Fees 362, ,506 $ 348, Civic Center Impact Fees 108, $ 108, Corp Yard Impact Fees 468, $ 469, Public Facilities Impact Fee 179, ,531 $ 296, Water Impact Fees 249, ,012 $ 425, Sewer Impact Fees 563, ,151 $ 873,958 In FY 2018/19, Staff will be developing a Capital Improvement Program to identify Capital Projects to be funded with Impact Fees. CIP will be partially funded ($20,000) by Admin. Impact Fee.

14 CAPITAL ROAD PROJECTS BUDGETED USING MEASURE M FUNDS Vista View Slip out Repair Engineering staff is estimating a budget expenditures of approximately $158,000 in FY 2018/19. FY 2018/19 budget identifies funding project with $79,000 (50%) from Measure M Funds and $79,000 (50%) split between Water ($39,535) and Sewer ($39,535) Enterprise Funds. Safe Routes to School (SR2S) Staff is estimating project expenses totalling $329,000. $150,000 in grant funds are available, the remaining expenses are budgeted $179,000 from Measure M Funds.

15 POLICE DEPARTMENT Police Admin Police Operations Communications Police Auxiliary

16 POLICE DEPARTMENT BUDGET HIGHLIGHTS Moved Sergeant expenses from Police Operations (302) to Police Administration (301) Patrol and Dispatch at full staff (10 sworn officers & 6 dispatchers) Funding Citizen s Academy expenses $1,500 Taser/Axon Body Worn Camera contract (continuation) $13,700 Purchase new police vehicle to replace outdated patrol car $65,000 Discuss funding a new Lieutenant position $292,981

17 SUPERVISORY COST ASSESSMENT BREAKDOWN: LIEUTENANT (A) CREATING A LIEUTENANT POSITION: The creation of an administrative lieutenant will increase the FY 2018/2019 police department budget by $292,981.00, broken down as follows: Salary & Benefits: $246, Vehicle/Equipment/Training: $46, Total: $292, It should be noted the administrative lieutenant position is an exempt position, which will not accumulate overtime, thus potentially reducing the current supervisory overtime budget of $30,000 per fiscal year.

18 SUPERVISORY COST ASSESSMENT BREAKDOWN: THIRD SERGEANT (B) ADDING A THIRD SERGEANT: The addition of a third sergeant will increase the FY 2018/2019 police department budget by $312,443.91, broken down as follows: Salary & Benefits: $241, Vehicle/Equipment/Training: $71, Total: $312, It should be noted sergeants accumulate overtime, thus potentially increasing the current supervisory overtime budget of $30,000 per fiscal year.

19 SAVINGS BY CREATING A LIEUTENANT POSITION: Choosing to create of an administrative lieutenant instead of adding a third sergeant will save the FY 2018/2019 police department budget $19,462.91, broken down as follows: Salary & Benefits (increase): $5, Vehicle/Equipment/Training (decrease): $25, Overall savings (reduction): $19, Savings due to the difference in the police vehicle purchase. With City Council approval, we will purchase a Dodge Charger ($40,000) for the lieutenant or a Ford Explorer for the sergeant ($65,000).

20 Rank Order Goals 1 5 Description Conduct a special joint City Council and Planning Commission meeting to hold a detailed zoning review of all properties currently within and outside the City Limits, including the sphere-of-influence and the Urban Growth Boundary, to work with a consultant for a 5-year plan with an eye toward where future industrial growth can be located. This process should include a review of the city s current annexation policy with options that might be available for a largescale annexation. This conversation should include Supervisor Gore and Sonoma County officials. Begin a conversation with the County to discuss a "Global Annexation" The areas for Annexation should revolve around the south and north areas of the City. Continue to streamline the City s procedures and upgrade our technology across all departments to keep improving customer service as well as recordkeeping, staff productivity, and other aspects of our organizational structure. Include an on-line platform for applying and paying for permits Continue efforts to build long-term fiscal stability in both the general fund and all enterprise funds and continue efforts to build an adequate emergency reserve in each fund. Conduct a full review of current Impact Fee Nexus Studies, and update each Nexus Study, with full City Council input, so future funds can be better used to address current and future needs within the City. Develop / revise the 5-year Capital Improvement Plan that includes contingencies for possible reauthorization of Measure O and capital finance plan for police station project. Develop a technology plan to modernize and streamline City Hall operations. Include in the plan: Customer Service, Website, Document Management, meeting and presentation management, workflow for staff and city council including electronic agendas, upgrade procedures and technology, create an on-line platform to apply and pay for permits, improve the wi-fi at City Hall and Performing Arts Center and Improve public address system at Performing Arts Center 5 Create an Ad Hoc Committee to work with city staff to review current emergency operations plan. This ad-hoc committee will work with and represent the city at meetings and work sessions with Sonoma County Emergency Services staff and Sonoma County Cities in collaboration of the development of new countywide emergency operation plans and updating existing policies and notification plans as appropriate, including communication and notification carriers, high fire zones, and the feasibility of installing an audible alert system as a quick way to alert the community of an emergency.

21 Rank Order Goals 6 10 Description 6 Improve customer service survey results by putting paper copies in with the monthly water bill mailings, and have paper surveys available at the City Hall front desk. Improve outreach to working families and Latinos. Activate a customer service outreach program. Council members to actively participate in a joint calling program with a Board Member of the Chamber of Commerce. The calling program should focus on businesses within the ZIP Code, to assess their likes and dislikes and current needs. Supplement the Community-Wide City of Cloverdale Community Education and Engagement Program and expand upon the success of the current City Manager s Weekly Report, City Survey and Facebook page. Supplement the work of the City and the Chamber in developing a Marketing/P.R. and Outreach Plan that will engage, inform, and encourage a steady flow of information and inquiry to and from the full spectrum of our residents, community organizations, business owners/employers and their employees, as well as traditional and social media outlets. The City website needs to be more visually inviting, easy-to-use and modernized, while City communications and videos should strive to include translations and closed captioning where needed. Continue efforts underway with the Sonoma County Latino Leaders, Cloverdale School District, Cloverdale Chamber of Commerce, and Alexander Valley Healthcare, to improve communications throughout the non-english speaking Latino community. Latino Outreach Program Continue efforts to bring Latino Leaders into the Chamber and other community activities. 7 Continue work on the Safe Routes to School Project, which is to complete sidewalks along the westside of Cloverdale Blvd., from Del Webb Drive to Furber Ranch Plaza. Continue discussions with Sonoma County officials on the need for sidewalks / bike lanes in their jurisdiction on the eastside of South Cloverdale Blvd. Attempt to get a commitment from Sonoma County officials to fund these important improvements. Improve bicycle lane striping, including a standard green bike designation stripe/lane in identified bike thoroughfares within the city. Identify streets to be repaved within the next 24 months using SB1 fuel tax revenue. Do traffic study and restripe Cloverdale Boulevard from Railroad Avenue to the intersection of Treadway Drive. 8 Develop comprehensive ball field/school facility/shared recreation facilities plan with the Cloverdale Unified School District Continue working with the CEO and Board of AVHC, and other community stakeholders with efforts to get the Thyme Square property site finalized so Alexander Valley Healthcare can move forward with the development of a new wellness center. Continue work with the skate park volunteer group to finalize and build a new skate park. Continue efforts to move forward and identify all available funding options that the City Council can considered to fund a new Police Facility. Create and implement a Police Department staffing plan to include: a) fill a sergeant position, b) create a lieutenant position, c) create a detective position, d) bolster reserve officer program, and e) conduct a citizen's police academy.