June 9, 2015 Item X.1: Page 1

Transcription

1 June 9, 2015 Item X.1: Page 1

2 STAFF REPORT TO THE CITY COUNCIL DATE: Regular Meeting of June 9, 2015 TO: SUBMITTED BY: SUBJECT: Honorable Mayor and Members of the City Council David Biggs, City Manager Nickie Mastay, Director of Finance Public Hearing on Proposed FY City of Hercules Budget Plan including the First Year of the Five Year Capital Improvement Budget RECOMMENDED ACTION: Open the Public Hearing, Receive A Staff Report, Take Public Testimony, and Continue the Public Hearing Open to June 23, COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION: The Finance Commission reviewed the proposed FY 2015/16 Budget at a Special Meeting on June 1, 2015, and will conduct a second Special Meeting on June 15, At the June 1 st meeting, the Commission recommended one change to the Budget Balancing Worksheet which is discussed further below. FISCAL IMPACT OF RECOMMENDATION: If adopted as proposed, the total City Budget with Addendums & Corrections will be $61,265,129, with the General Fund Budget being $13,430,408. This is before any Decision Packages or Budget Referrals are incorporated into the Budget by final action of the City Council. On this basis, there is a small operating surplus in the General Fund. After recommended Decision Packages, there would be a small operating deficit of less than $40,000. Available one-time monies would be applied to a variety of one-time purposes including capital investments and meeting other critical expenditure or reserve needs of a one-time nature. DISCUSSION: The proposed FY 2015/16 Budget was introduced to the City Council and the community on Tuesday, May 26, The staff report from that meetings is attached (Attachment 1), which together with the Power Point presentation made by the City Manager that evening (Attachment 2), provides additional information. The entirety of the proposed FY 2015/16 Budget including the City Manager s Budget Message is available on-line on the City s website ( and through the following link: Proposed FY 2015/16 Budget June 9, 2015 Item X.1: Page 2

3 On May 26, 2015, the City Council asked a number of questions which were answered that evening or which have been incorporated as additional Budget Referrals with the updated Budget Referrals attached (Attachment 3). As discussed, a number of Addendums/Corrections have also been identified are enumerated (Attachment 4). The Addendums/Corrections have been incorporated into an updated Budget Balancing Worksheet (Attachment 5). With their first review of the proposed FY 2015/16 Budget, the Finance Commission recommended to the City Council that the Budget Balancing Worksheet be modified to add the Fiscal Neutrality Reserve in totality to the beginning Working Cash Balance with the designated Earthquake Insurance Deductible of $500,000 being separately identified. In addition, this recommendation would see the FY 2014/15 appropriation of $358,275 and planned transfer from the Fiscal Neutrality Reserve which is not going to be needed for FY 2014/15 added back into the Beginning Working Cash Balance instead of being identified separately on the Budget Balancing Worksheet as a one-time adjustment. The Finance Commission version of the Budget Balancing Worksheet is attached (Attachment 6). Both versions communicate important information and as such, it would be a City Council decision as to which version to utilize on a forward going basis. However, with one addition of splitting out the planned transfer from the Fiscal Neutrality Reserve as staff has done in this version in order to ensure we have identified that the planned transfer did not have to take place, staff can support the Finance Commission recommended version. This approach retains the planned transfer in the Fiscal Neutrality Reserve and brings that in total to $1,356,887 which is above the initial 8.33% reserve goal of $1,125,000 and moves towards the ultimate reserve goal of 16.66% or $2,250,000. As such, General Fund Balance Decision Package #2 which would have seen an additional $250,000 added to the Fiscal Neutrality Reserve is no longer recommended and in order to accommodate this, the amount recommended in General Fund Balance Decision Package #1 for the Capital Project Fund is reduced from a recommended $200,000 to $150,000. This evening s public hearing was noticed in the local newspaper on May 28, The purpose of the public hearing is provide a formal opportunity for community input. In addition, additional questions or proposals which the City Council may have will be incorporated into additional Budget referrals and brought back for the Continued Public Hearing on June 23, At the City Council meeting on June 23, 2015, at which time there will be an opportunity for additional public input, it is anticipated that the City Council will adopt a final budget by approving a series of Decision Packages and Budget Referrals into the Base Budget. ATTACHMENTS: 1. Staff Report from May 26, Power Point Presentation from May 26, Updated Budget Referrals dated June 4, Addendums/Corrections 5. Updated Budget Balancing Worksheet dated June 4, Finance Commission Recommended Format for the Budget Balancing Worksheet June 9, 2015 Item X.1: Page 3

4 STAFF REPORT TO THE CITY COUNCIL DATE: Regular Meeting of May 26, 2015 TO: SUBMITTED BY: SUBJECT: Members of the City Council David Biggs, City Manager Nickie Mastay, Director of Finance Introduction of FY City of Hercules Budget Plan including the First Year of the Five Year Capital Improvement Budget RECOMMENDED ACTION: Receive an Introduction on the Proposed FY 2015/16 Budget including the First Year of the Five Year Capital Improvement Budget. COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION: The Finance Commission did a first look at General Fund revenues on March 23, 2015; a first look at General Fund Expenses on April 27, 2015; and a first look at Other Funds on May 11, The Commission will be conducting a Special meeting on June 1, 2015 or June 8, 2015, to review and make a recommendation on the proposed FY 2015/16 Budget. FISCAL IMPACT OF RECOMMENDATION: There is no impact from the introduction of the proposed FY 2015/16 Budget. The proposed Budget continues the City on the path of financial recovery and sustainability. If adopted as proposed, the total City Budget will be $61,260,300, with the General Fund Budget being $13,435,850. The General Fund budget as recommended on an on-going basis has a small surplus and makes no use of reserves to sustain our basic level of operations. One time monies are used for a variety of one-time purposes including capital investments and meeting other critical expenditure needs of a one-time basis. DISCUSSION: The preparation and approval of the annual spending plan for the City of Hercules is an important process involving City staff, advisory Boards, the Community, and the Mayor and City Council. The City of Hercules has been through many years of tough times which have included weathering the Great Recession and other difficulties. Hard decisions had to be made and the City operates on a much leaner basis providing a very basic level of services. Many of the issues and obstacles in the June 9, 2015 Item X.1: Page 4

5 past are now behind us and thanks to the confidence our voters have shown through the approval of two local tax measures, we remain on a positive path. The recovery from the Great Recession has seen improvement in our local revenue base and the proposed General Fund budget as presented has a small operating surplus for the first time in many years. The proposed FY 2015/16 budget also recommends investment of some one-time funds in a variety of high priority areas. However, the financial resources available to the City are not sufficient to meet all of our requirements and the possibility of having to operate without the nearly $2 million in annual on-going revenues generated by Measures A and O would require cuts again once the first of the those Measures expires starting in In order to ensure better financial decision making and transparency, the proposed FY 2015/16 budget initiates a review and allocation of revenues and expenditures differentiating between what is on-going and one-time. This more refined approach to budgeting is designed to make decision making easier, more transparent, and strategic. The General Fund Budget is presented on a very status quo basis working from the well-scrutinized FY 2014/15 General Fund Budget as a base with mostly unavoidable cost increases incorporated into the base budget. Changes to the base budget are proposed through a series of Decision Packages as outlined and detailed in the City Manager s Budget Message. The Budget Message also outlines changes and modifications to the City s other Funds and the Capital Improvement Program. Other suggested or requested changes to the Budget as made by the City Council will be set forth as Budget Referrals. The City Council undertook three first look sessions on elements of the proposed FY 2015/16 Budget. On April 14, 2015, the City Council conducted a first look at General Fund revenues. General Fund expenditures were presented in a first look on April 28, Finally, the budgets for other key Special Funds were reviewed as a first look on May 12, Following the introduction of the City Manager s Recommended FY 2015/16 Budget this evening, the budget will be scheduled and advertised for a public hearing on June 9, 2015, with that hearing to be continued open to June 23 rd. On June 23, 2015, it will be recommended that the City Council approve the proposed FY 2015/16 Budget by adopting the proposed Budget with the recommended Decision Packages as modified by the City Council and with select Budget Referrals incorporated as directed by the City Council. ATTACHMENTS: 1. FY Budget June 9, 2015 Item X.1: Page 5

6 6/3/2015 Proposed Budget Introduction FY 2015/16 Addressing Community Priorities Maintain Financial Stability & Fiscal Accountability Maintain Core Services, including Hercules Police Department Maintain Number of Police Officers Expand Crime Prevention Programs Attract Businesses to Hercules/Support Quality Development Prevent Cuts/Enhance Street Maintenance June 9, 2015 Item X.1: Page 6 1

7 6/3/2015 Budget Highlights Proposed General Fund Base Budget $ 13,435,850 Proposed Total City Budget $61,260,300 (including capital projects) Emphasis on Identifying On Going versus One Time Monies General Fund Operating Base Budget Small Surplus of $26,000 No Transfer from Fiscal Neutrality Fund Necessary One Time Fund Balance Available to Meet High Priority Needs Budget Development Process Based on Statement of Financial Principles and Policies Built From FY 2014/15 Year End Estimates Higher Revenues Controlled Expenses Projected Higher Estimated Fund Balance (Mix of On Going & One Time) Status Quo Assumed for FY 2015/16 General Fund Base Budget Revenues Updated Expenditures Modified for Unavoidable Cost Increases/Minor Line Item Adjustments June 9, 2015 Item X.1: Page 7 2

8 6/3/2015 Budget Development Process Proposed Changes are Set forth in Decision Packages General Fund Operating Budget Decision Packages General Fund Alternate Decision Packages General Fund Balance Decision Packages Budget Referrals Respond to City Council Questions/Suggestions City Manager Recommended Budget is Base General Fund Budget and Identified Decision packages Budget Balancing Worksheet Presents City Manager Recommended General Fund Budget Budget Development Process First Looks General Fund Revenue General Fund Expenditures Special Funds Proposed Budget Introduced City Council Meeting May 26, 2015 Finance Commission Review June 1, 2015 Council Budget Public Hearing June 9, 2015 Council Continued Public Hearing & Budget Adoption June 23, 2015 June 9, 2015 Item X.1: Page 8 3

9 6/3/2015 General Fund Operating Budget Decision Packages 1. Records Management Update (OT) $50, Enhanced Staff Training $12, Special Election (OT) $35, Police Temporary Records Specialist (OT) $25, Police Bullet Proof Vest Replacement (OT) One Time Expense $8,000 One Time Revenue (Grant) $4, Police Ammunition & Firearms $5,000 General Fund Operating Budget Decision Packages 7. Police Officer Body Cameras One Time Expense $33,500 On Going Expense $2, Reorganization of Parks & Rec Staffing $20, Cost Allocation Study/Model (OT) $40, Modification of Childcare Program ($3,520) 11. General Plan Circulation Element Update (OT) $60,000 June 9, 2015 Item X.1: Page 9 4

10 6/3/2015 General Fund Alternate Decision Packages 1. Hazard Mitigation Plan Update (OT) $40, Library Extra Hours Funding $14, Partials Reinstatement of Employee Concessions Sworn Uniform Allowance $17,100 Sworn 3.7% Wage Reduction $93,200 Non Sworn Step Increases $140,000 Non Sworn 40 Hour Workweek $280, Investment in Street Maintenance $250, Reinstatement of Minimal Code Enforcement $50,000 General Fund Balance Decision Packages 1. Capital Projects Fund $200, Fiscal Neutrality Reserve Increase $250, Richmond Sanitary Services Differential $215, Employee Retention Program $158, Reserve for Restricted Planning Funds $362,512 June 9, 2015 Item X.1: Page 10 5

11 6/3/2015 Budget Referrals 1. Unemployment Payments 2. Claims (Settlements & Judgements) Budget Balancing Worksheet City Manager Recommended Decision Packages Reflected. Will be Used to Reflect City Council Decisions as Made to Ensure a Balanced Budget. June 9, 2015 Item X.1: Page 11 6

12 6/3/2015 Special & Enterprise Fund Budget Highlights 1. Landscape & Lighting Districts Under separate on going review process with final budgets to be modified based on outcome 2. Capital Projects Fund 3. Waste Water Fund Significant capital expenditures including plant expansion proposed. $250,000 for professional services to address local collection system improvements. 4. Gas Tax/Street & Traffic Decline in State Gas Tax revenues of $172,278 (25%) incorporated into Budget. 5. Vehicle Replacement Three Police vehicles, One Unmarked Investigations, and one Public Works vehicle proposed for replacement Capital Improvement Project Highlights 1. Parks and Open Space Refugio Valley Lake concrete wall $55, Streets and Sidewalks Sidewalk replacement program $35,000 Annual Streets Overlay project for Willow Avenue $820,000 Annual Slurry Seal project various locations $150,000 Restriping project various locations $75,000 Grant funded overlay of Refugio Valley Road (design) $50, Waste Water Repair Infiltration and Inflow $195, Sewer Main Line Sycamore Ave to North Front $2,000,000 Upgrade/Expand Pinole/Hercules Wastewater Treatment Plant $10,000, Intermodal Transit Center (ITC) Bay Trail Phase $1,387,748; Path To Transit Phase $12,411,480 June 9, 2015 Item X.1: Page 12 7

13 6/3/2015 Questions & Comments As appropriate, questions and comments will become additional budget referrals June 9, 2015 Item X.1: Page 13 8

14 Budget Referrals June 4, 2015 Budget Referral # 1: Unemployment Payments Unemployment payments were projected at $100,000 in the first look budget, can this amount be reduced given historical trends and lower claims history? Response: Given recent claims history and the unlikely occurrence of additional layoffs in the next fiscal year, this budget for unemployment claims could be reduced by $50,000 to $50,000. Budget Referral # 2: Claims The Risk Management budget allocates $100,000 for possible claims. Given recent claims history can this amount be reduced? Response: After consultation with the City s Risk management JPA, it is possible to reduce the annual appropriation for claims by $20,000 to $80,000 based on the average number of claims filed per year. This amount could be reduced further at the discretion of the City Council if the Council is comfortable with the potential of needing to utilize a portion of the Fiscal Neutrality reserve if claims were to exceed the amount budgeted. Budget Referral # 3: Richmond Sanitary Funding Additional Information Fund Balance Decision Package # 3 describes setting aside restricted funding from Richmond Sanitary Services which can be used for solid waste related activities or to mitigate impacts from solid waste operations; how much of this funding is on-going for FY 2015/16 and can a portion of the one-time or on-going funds be used for the purchase of reusable bags for distribution to residents or for water quality programs? Response: The $215,000 identified in Fund Balance Decision Package # 3 reflects the funding which has accumulated in FY 2013/14 and 2014/15. It is anticipated that $160,000 will be received in FY 2015/16 and that this amount will be on-going (?). A portion of the available funds could be utilized for the purchase of reusable bags to be distributed to residents at community events and activities in an amount to be determined by the City Council. In addition, the cost of meeting water quality mandates exceeds available revenues in the Storm Water Fund which has resulted in a negative cash balance of $186,286 through June 30, 2014, which will need to be absorbed by the City s General Fund. For FY 2014/15, as of year-end, it is projected that expenditures will exceed revenues by an additional $12,403. The proposed FY 2015/16 Budget has expenditures exceeding revenues by $21,216. Utilizing apportion of this solid waste related funding to mitigate a fair share portion of water quality activities for FY 2014/15 and/or FY 2015/16 would assist in eliminating this impact on the City s General Fund. Budget Referral # 4: Police Department Revenues - For FY 2015/16, revenues for Police related services under Fines & Forfeitures, Vehicle Code Fines and Towed Vehicle Release Fees shows a significant decline from the amount budgeted in the current fiscal year. Can the reason for this decline be explained and options to increase revenues in these areas explored? Response: At the time the proposed FY 2015/16 was first prepared revenues in Fines & Forfeitures and Towed Vehicles were running well behind what was budgeted. A review of June 9, 2015 Item X.1: Page 14

15 revenues through mid-may indicates a strong recovery and the year-end projected revenues have be adjusted upwards accordingly as indicated below: Vehicle Code Fines Towed Vehicle Release Fees FY 2014/15 Budget FY 2014/15 YE Estimate FY 2015/16 Original Proposed FY 2015/16 Updated Projected $30,000 $48,249 $20,000 $45,000 $30,000 $35,099 $22,000 $35,000 In addition, five years of date for the number of citations issued and the number of vehicles towed are provided for comparison. 2010/ / / / /15 YTD Citations 1, Towed Vehicles Options to increase revenues include adjusting the current schedule of Fines & Forfeitures and Towed Vehicle charges. Staff could undertake a survey to compare our current charges in these areas to other cities in the region and return to the City Council in January, 2016, with recommendations in this regard. Budget Referral # 5: Vehicle Maintenance & Repair Given the City s more active vehicle replacement efforts, why is the budget for Vehicle Maintenance & Repair not decreasing? Response: While the City is replacing vehicles and these vehicles are under a manufacturer s warranty, there remains a back-log of maintenance and repair of older vehicles (utility truck, evidence van, emergency operations center van) and equipment like generators (five generators, light standards, tires) which are funded through this line-item given years of deferred maintenance. It is likely that this line item could see some reduction in future years as the vehicle replacement programs see more vehicles replaced and the back-log of repairs is eliminated. Budget Referral # 6: Telecommunication Revenues The line item for telecommunication related revenues shows a decrease; can this decrease be explained and information provided as to ways to reverse this trend? Response: An existing lease with Nextel for a site has terminated which has resulted in a reduction in revenue by $30,000 per year. There is a current effort underway to update the City s Telecommunications ordinance and a review of other telecommunication site leases is hoped to result in additional revenue generation. Budget Referral # 7: Reserve Goal What elements of reserves and fund balance would count towards meeting the initial fund balance reserve goals of one month s expenditure or 8.33% for the City s General Fund and how are we doing towards meeting that goal? June 9, 2015 Item X.1: Page 15

16 Response: Based on a $13.5 million General Fund budget, the City has met its initial reserve goal of 8.33% would require a reserve of $1,125,000. The Fiscal Neutrality Reserve has $1.3 million, of which $500,000 is designated to provide for the $500,000 insurance deductible in the event of an earthquake. This $1.3 million reflects the City not having to make the $358,000 transfer in to the General Fund from the Fiscal Neutrality Reserve for FY 2014/15 based on improved revenues and reduced expenditures. The City s adopted Fiscal Principles and Policies look to achieve a two month reserve or 16.66% over time. Meeting this higher goal would require $2.25 million in reserves. Budget Referral # 8: Healthcare Costs - The proposed budget assumes increase in the cost of healthcare benefits provided to employees and these unavoidable cost increases are anticipated to be funded by the City; what can be done to address this in future years? Response: The health insurance benefit program offered by the City under the terms of it agreements with employees is the CalPERS Health program. This program has a range of offerings available to all participating employers through CalPERS and rates are renegotiated with the health care insurance providers each year. The amount which the City contributes to the cost of health insurance is defined in the agreements with our employee groups. While there is a cost sharing currently, how this is defined has the City responsible for a significant portion of any of the annual increases. There are two main ways these future cost increase could be mitigated. The City could review participation in CalPERS Health program which would require agreement from employee groups or we could negotiate a different cost sharing formula with employee groups in the future. Budget Referral # 9: Comprehensive General Plan Update - When was the last comprehensive update of the General Plan including the Land Use Element undertaken and what would be the cost to do a comprehensive update? Response: The last comprehensive update of the City s General Plan including the land use element took place in Various elements have been updated over time including the Housing Element this year and the proposed update of the Circulation Element in 2015/16. The estimated cost of a comprehensive update would be between $750,000 to over $1 million. Budget Referral # 10: Hercules Golf Club Fund - Fund 730 is identified as the Hercules Golf Club Fund with a balance of $52,786. What is the purpose of this fund and are these funds restricted and if so for what types of uses? Response: The Hercules Golf Club Fund was established to hold funds raised by the now defunct Hercules Men s Golf Club in support of youth programs. Budget Referral #11: Items Impacting General Fund Available Cash - As discussed in Budget Referral # 3 above, there is negative cash in the Storm Water Fund of $186,286 which needs to be covered by the City s General Fund. How will that be remedied and are there any other negative cash balances being covered by the General Fund? Response: At some point in time there should be a formal transfer from the General Fund to the Storm Water Fund to eliminate the accumulated deficit as of June 30, 2014, which could be higher as of the end of the year unless mitigated in another way such as by use of a portion of the June 9, 2015 Item X.1: Page 16

17 Richmond Sanitary funds available. There are two other funds which have negative cash which flow to the General Fund. There is also a negative balance of $267,593 in the Public Financing Authority 2009 Bond Debt Service fund. This amount requires more research before it can be definitively determined how it should be addressed. June 9, 2015 Item X.1: Page 17

18 Addendums and Corrections June 4, 2015 FY General Fund: Addendum #1: CalPERS Charge CalPERS audited the City of Hercules payroll from the year 2006 through As a result of this audit, the City of Hercules was invoiced $52, for CalPERS charges that have not been paid. FY Year-End Estimate expenses does not include this amount. This will result in an increase in expenses of $52, for FY Year-End Estimate. Correction #1: Nextel Cell Tower Revenue The Nextel Cell Tower contract ended FY This will result in a decrease in revenue of $30,000 for FY Year-End Estimate. Correction #2: Vehicle Code Fines Revenue The Vehicle code fines revenue for FY Year-End Estimate of $19,500 was estimated based upon what was received through December The FY Year-End estimate will be adjusted to reflect revenue of $48,249, an increase in FY Year-End Estimate revenue of $28,749. Correction #3: Towed Vehicle Revenue The Towed Vehicle revenue for FY Year-End Estimate of $22,500 was estimated based upon what was received through December The FY Year- End estimate will be adjusted to reflect revenue of $35,099, an increase in FY Year-End Estimate revenue of $12,599. FY General Fund: Correction #1: Parks and Recreation Director Expense The Parks & Recreation Director expense was calculated at step 1 with full family benefits instead of step 4 with full family benefits. This will result in an increase in expenses of $17, Correction #2: Police Department Overtime Expense The Police Department overtime expense did not include the cost of the non-sworn police personnel. This will result in an increase in expenses of $13, Correction #3: Finance Department hdl Contract Expense The expense for the hdl contract (analysis of property taxes) was entered as $50,000, the contract is $13,500 (plus 25% of revenue recovered by hdl from audits). This will result in an expense decrease of $36,500. Correction #4: Nextel Cell Tower Revenue The Nextel Cell Tower has ended. This will result in a decrease in revenue of $30,000. Correction #5: Police Office Body Cameras Expense The Police Officer body camera one-time cost is $36,350 instead of $33,500, an increase in expense of $2,850 for additional charging stations and additional cameras, for a total of 25 cameras, to be eligible for grant funding. June 9, 2015 Item X.1: Page 18

19 FY Landscape & Lighting: Addendum #1: Zone 10 Citywide Capital Improvement: Tennis Wall The Tennis Wall is in need of repair. The increase in expense is $50,000. Addendum #2: Zone1 though 10; Victoria by the Bay; Promenade; Baywood; Bayside Decrease in expenses related to landscape contract bid received is less than the Proposed Budget. Total decrease in expenses of $39, Proposed Budget Addendum Addendum 0ver/(Under) Proposed Budget Zone 1 42, Zone 1 41, (812.91) Zone 2 61, Zone 2 57, (3,574.00) Zone 3 & 4 47, Zone 3 & 4 46, (625.32) Zone 5A 47, Zone 5 46, (1,051.17) Zone 5B 29, Zone 6 29, (737.44) Zone 5C 29, Zone 7 27, (1,619.89) Zone 6 32, Zone 6 32, (295.95) Zone 7 46, Zone 7 45, (417.25) Zone 8 134, Zone 8 131, (2,723.22) Zone 9 80, Zone 9 79, (687.99) Zone , Zone , (35,994.52) Victoria By the Bay 360, Victoria By the Bay 360, (252.00) Promenade 132, Promenade 140, , Baywood 102, Baywood 100, (2,119.00) Bayside 82, Bayside 85, , Total (39,728.66) FY Parks & Recreation Development Impact Fee Fund: Addendum #1: Community Center Pool Re-Plastering The community pool has not been re-plastered in a number of years and now needs re-plastering. The increase in expense is estimated at $140,000. Note: This does not include the cost of water to refill the pool. Addendum #2: Community Center Parking Lot Resurfacing The community center parking lot is in need of resurfacing. BKF Engineering is in process of doing the design work for the resurfacing of the parking lot at a cost of $4,742. The increase in expense is estimated at $125,000. June 9, 2015 Item X.1: Page 19

20 BUDGET BALANCING SPREADSHEET AFTER ADDENDUMS AND CORECTIONS JUNE 4, 2015 On Going One Time Estimated Beginning Working Cash July 1, 2015 before Addendums and Corrections 1,369, Addendum: CalPERS Charge (52,274.82) Correction: Nextel Cell Tower Revenue Decrease (30,000.00) Correction: Vehicle Code Fine Revenue Increase 28, Correction: Towed Vehicle Revenue Increase 12, Estimated Beginning Working Cash July 1, 2015 after Addendums and Corrections 1,328, Excludes One Time 246, One Time: Richmond Sanitary Services differential in rates 215, One Time: FY Transfer In (est. not doing trans. In) 358, One Time: Sales Tax 220, One Time: Plan Check 58, One Time: General Plan Update Fee 172, One Time: Bldg Div Training Fund 56, Add: Revenue before Addendums and Corrections 13,876, Correction: Nextel Cell Tower Revenue Decrease (30,000.00) Add: Revenue After Addendums and Corrections 13,846, On Going 13,432, One Time: Sales Tax 220, One Time: General Plan Update Fee 148, One Time: Bldg Div Training Fund 45, Subtract: Expense before Addendums and Corrections 13,435, Correction: Parks & Rec Director Expense Increase 17, Correction: Police Department Overtime Expense Increase 13, Correction: Finance Department hdl Contract Expense decrease (36,500.00) Subtract: Expense After Addendums and Corrections 13,430, On Going 13,430, One Time Surplus/(Deficit) 416, , , Subtotal: Estimated Working Cash Before Decision Packages June 30, ,745, , ,496, Recommended Decision Packages 1. Records Management Update 50, , Enhanced Staff Training 12, , Special Election [One Time] 35, , Police Temporary Records Specialist [One Time] 25, , Police Bullet Proof Vest Replacement 8, , (One Time $8,000; Increased Reveue $4,000) (4,000.00) 6. Police Department Ammunition and Firearms 5, , Police Officer Body Cameras 36, , [One Time $36,350; On going $2,800] 2, , Reorganization of Parks & Recreation Staffing 20, , Cost Allocation Study/Model [One Time] 40, , Modification of Childcare Program (3,520.00) (3,520.00) 11. General Plan Circulation Element Update [One Time] 60, , General Fund Operating Budget Alternate Decision Packages 1. Hazard mitigation plan and climate adaptation strategy [One Time] 40, Library Extra Hours Funding 14, Partial Reinstatement of Employee Concessions 530, Sworn: Uniform allowance $17,100 Sworn: 3.7% wage reduction $93,200 Non Sworn: Reinstatement of Step increases $140,000 Non Sworn: From 36 hr workweek to 40 hr workweek $280, Investment in Street Maintenance 250, Reinstatement of Minimal Code Enforcement Program 50, General Fund Balance Decision Packages 1. Capital Project Fund 200, , Fiscal Neutrality Reserve Increase 250, , Richmond Sanitary Services Differential in Rates 215, , Employee Retention Program 158, , Reserve For Restricted Planning Funds 362, , Total: Decision Packages 2,361, , ,436, Budget Referrals 1. Unemployment Payments [Unemployment Claims] 100, Claims [Settlements & Judgements] 100, Total: Budget Referrals Surplus/(Deficit) After Decision Packages/Budget Referrals (34,397.04) Estimated Working Cash After Decision Packages/Budget Referrals June 30, , , June 9, 2015 Item X.1: Page 20

21 BUDGET BALANCING SPREADSHEET AFTER ADDENDUMS AND CORECTIONS JUNE 9, 2015 FINANCE COMMISSION FORMAT On Going One Time Estimated Beginning Working Cash July 1, 2015 General Fund and Fiscal Neutrality Fund General Fund Working Cash 1,011, Fiscal Neutrality Fund Working Cash 1,356, Estimated Beginning Working Cash July 1, 2015 General Fund and Fiscal Neutrality 2,368, Reserved by City Council June 2014 (Earthquake Insurance Deductible) (500,000.00) Balance in Fiscal Neutrality (498,612.00) FY Designated for Transfer Out to General Fund (358,275.00) Estimated Beginning Available Working Cash July 1, 2015 before Addendums and Corrections 1,011, Addendum: CalPERS Charge (52,274.82) Correction: Nextel Cell Tower Revenue Decrease (30,000.00) Correction: Vehicle Code Fine Revenue Increase 28, Correction: Towed Vehicle Revenue Increase 12, Estimated Beginning Available Working Cash July 1, 2015 after Addendums and Corrections 970, Excludes One Time 246, One Time: Richmond Sanitary Services differential in rates 215, One Time: Sales Tax 220, One Time: Plan Check 58, One Time: General Plan Update Fee 172, One Time: Bldg Div Training Fund 56, Add: Revenue before Addendums and Corrections 13,876, Correction: Nextel Cell Tower Revenue Decrease (30,000.00) Add: Revenue After Addendums and Corrections 13,846, On Going 13,432, One Time: Sales Tax 220, One Time: General Plan Update Fee 148, One Time: Bldg Div Training Fund 45, Subtract: Expense before Addendums and Corrections 13,435, Correction: Parks & Rec Director Expense Increase (Vacant Position) 17, Correction: Police Department Overtime Expense Increase 13, Correction: Finance Department hdl Contract Expense decrease (36,500.00) Subtract: Expense After Addendums and Corrections 13,430, On Going 13,430, One Time Surplus/(Deficit) 416, , , Subtotal: Estimated Available Working Cash Before Decision Packages June 30, ,386, , ,138, Recommended Decision Packages 1. Records Management Update 50, , Enhanced Staff Training 12, , Special Election [One Time] 35, , Police Temporary Records Specialist [One Time] 25, , Police Bullet Proof Vest Replacement 8, , (One Time $8,000; Increased Reveue $4,000) (4,000.00) 6. Police Department Ammunition and Firearms 5, , Police Officer Body Cameras 36, , [One Time $36,350; On going $2,800] 2, , Reorganization of Parks & Recreation Staffing 20, , Cost Allocation Study/Model [One Time] 40, , Modification of Childcare Program (3,520.00) (3,520.00) 11. General Plan Circulation Element Update [One Time] 60, , General Fund Operating Budget Alternate Decision Packages 1. Hazard mitigation plan and climate adaptation strategy [One Time] 40, Library Extra Hours Funding 14, Partial Reinstatement of Employee Concessions 530, Sworn: Uniform allowance $17,100 Sworn: 3.7% wage reduction $93,200 Non Sworn: Reinstatement of Step increases $140,000 Non Sworn: From 36 hr workweek to 40 hr workweek $280, Investment in Street Maintenance 250, Reinstatement of Minimal Code Enforcement Program 50, General Fund Balance Decision Packages 1. Capital Project Fund 200, , Fiscal Neutrality Reserve Increase 250, Richmond Sanitary Services Differential in Rates 215, , Employee Retention Program 158, , Reserve For Restricted Planning Funds 362, , Total: Decision Packages 2,361, , ,136, Budget Referrals 1. Unemployment Payments [Unemployment Claims] 100, Claims [Settlements & Judgements] 100, Total: Budget Referrals Surplus/(Deficit) After Decision Packages/Budget Referrals (34,397.04) Estimated Available Working Cash After Decision Packages/Budget Referrals June 30, , , June 9, 2015 Item X.1: Page 21

22 June 9, 2015 Item X.1: Page 22