CITY MANAGER S RECOMMENDED DRAFT PROPOSED BUDGET City of Chico April 17, 2018

Transcription

1 CITY MANAGER S RECOMMENDED DRAFT PROPOSED BUDGET City of Chico April 17, 2018

2 CITY OF CHICO, DRAFT PROPOSED BUDGET Overview Detail is in the binders and PDF s High-level overlook during presentations What you see is what you get unless changed Questions/Comments Process Carryover baseline from Wage step adjustments, etc. reflected Special requests evaluated by City Manager

3 CITY OF CHICO, DRAFT PROPOSED SCHEDULE - BUDGET April 17 th Round #1 Introduction to Proposed Budget Overall General Fund Highlights Administrative Services Department Fire Police City Attorney, City Clerk and City Manager have rollover budgets

4 CITY OF CHICO, DRAFT PROPOSED SCHEDULE - BUDGET May 1st Round #2 Other Funds Discussion Community Development Department Public Works - Engineering Public Works Operations

5 CITY OF CHICO, DRAFT PROPOSED SCHEDULE - BUDGET May 15 th Round #3 5 Year Projection Budget Policies Fee Schedule Updates June 5 th Final Round Adoption of Final Budget (deadline is June 30)

6 DRAFT PROPOSED BUDGET SECTIONS Fund Summaries (pdf pgs 3 81) Operating Summaries by Dept (pdf pgs ) Capital Projects (pdf pgs ) Operating Detail (Behind Orange Page Behind Each Department s Operating Summary Allocated Positions (pdf pgs ) Capital Projects Summary By Project (Yellow) Capital Projects Summary By Fund (Blue) Individual Project Pages (White) Unfunded Projects Summary By Dept (Pink) Unfunded Project Summary (Gold) 12 Individual Project Pages (Green)

7 DRAFT PROPOSED BUDGET THE GOOD, THE BAD AND THE UGLY City of Chico April 17, 2018

8 CITY OF CHICO, DRAFT PROPOSED BUDGET BUDGET PRESENTATION GOOD Positive news we can be rejoice about BAD Not so good news UGLY On the Horizon

9 CITY OF CHICO, DRAFT PROPOSED BUDGET : BUDGET HIGHLIGHTS GENERAL FUND GOOD General Fund is Balanced Utilizes $2,946,332 from Unassigned Fund Balance Carry forward Projected Unassigned Fund Balance at 6/30/2018 is $1,605,086 Unassigned Fund Balance Target is $3,580,500 $1,200,000 transfer to Emergency Reserve Projected Balance at 6/30/2019 is $3,814,221 Emergency Reserve Target is $10,260,000 (37%)

10 CITY OF CHICO, DRAFT PROPOSED BUDGET : BUDGET HIGHLIGHTS GENERAL FUND GOOD Additional property tax from former RDA bond refinancing - $283,000 $500,000 transfer to CalPERS Unfunded Liability Reserve (Fund 903) Projected Balance at 6/30/2019 is $2,456,078 Fund used to pay annual unfunded liability payment Payment due in July 2019 for both plans is $7,598,561 Prepayment saves $275,215

11 CITY OF CHICO, DRAFT PROPOSED BUDGET : BUDGET HIGHLIGHTS GENERAL FUND GOOD New Full-time Staffing Public Works Engineering Assistant Engineer Admin Services IT Tech 1 (Under-filled Position) Police Dispatcher (Reduce Overtime) Police School Resource Officer (2/3 funded by Chico Unified) Revenue trends

12 GENERAL FUND REVENUES PROPOSED BUDGET UUT 14% TOT 5% Other 9% Property Taxes 30% Sales Taxes 42%

13 REVENUE % CHANGES FROM 17/18 TO 18/19 Total Revenues, 5% Other (Waste Hauler - $800,000), 30% Sales Taxes, 5% UUT, 5% Property Taxes, 1% TOT, 4% 0% 5% 10% 15% 20% 25% 30%

14 GENERAL FUND OPERATING BUDGETS BY DEPARTMENT Parks 7% Fire 24% Police 48% Debt Service City Council City Clerk City Management Other Services Human Resources Finance City Attorney Police Fire Parks Planning Street Cleaning Public Right-of-Way Code Enforcement Public Works Admin

15 CITY OF CHICO, DRAFT PROPOSED BUDGET : GENERAL FUND SUMMARY OPERATIONS Draft Proposed Council Adopted Gross Revenue $52,296,169 $49,650,765 Operating Expenses (47,486,385) (44,450,134) Park Operating Expenses (3,513,001) (3,652,267) Debt Service Leases (460,898) (460,898) Net Operational Revenue $835,885 $1,087,466 Net as % of Gross Revenue 1.6% 2.2%

16 CITY OF CHICO, DRAFT PROPOSED BUDGET : GENERAL FUND SUMMARY OPERATIONS Draft Proposed Council Adopted Net Operational Revenue $835,885 $1,087,466 Capital Projects (1,148,942) (799,726) Transfers In (Primarily Gas Tax) 2,200,000 2,240,000 Transfers Out (3,633,275) (2,660,057) Transfers Out Emergency Reserve (1,200,000) (1,100,000) Net Deficiency ($2,946,332) ($1,232,317)

17 CITY OF CHICO, DRAFT PROPOSED BUDGET : BUDGET HIGHLIGHTS GENERAL FUND Bad Requested but unfunded full-time positions Requested but unfunded capital projects Attachment E - $16,164,624 for all funds for Property Taxes in Lieu of Vehicle License Fees (VLF) Error by Butte County Auditor-Controller s Office Annual reduction of $250,000 in ongoing revenue Repayment over five years of $1,995,000 in prior year overpayment at $399,000 per year

18 Miscellaneous: Unfunded Full-time Permanent Position Requests Estimated Budget CDD: Code Enforcement Officer (2) $195,000 CDD: Administrative Assistant 76,000 CDD: Building Official 163,000 DPW Engineering: Construction Inspector 97,000 DPW Operations: Sr. Maint. Worker (Traffic Signal) 82,000 DPW Operations: Equipment Mechanic 85,000 Total - Miscellaneous $698,000

19 Safety: Unfunded Full-time Permanent Position Requests Estimated Budget Police: Sergeant $160,000 Police: Officers (3) 420,000 Police: Communications Supervisor 94,000 Police: Administrative Analyst 85,000 Fire: Fire Plan Review 106,000 Fire: Fire Prevention Specialist 122,000 Fire: Fire Preventions Inspector 145,000 Fire: Staffing to add 5 th Station 1,400,000 Fire: Fire Captain (Training) 155,000 Fire: Administrative Analyst 85,000 Total - Safety $2,772,000

20 CITY OF CHICO, DRAFT PROPOSED BUDGET : BUDGET HIGHLIGHTS GENERAL FUND Ugly (On the Horizon) Pension Costs Deferred Maintenance Costs Discuss at May 1 st Meeting Radio System Replacement Plan Costs to be determined

21 30 CITY OF CHICO, DRAFT PROPOSED BUDGET : BUDGET HIGHLIGHTS GENERAL FUND Ugly (On the Horizon) AB 2268 may provide additional Property Tax In Lieu of VLF of $470,000 per year. (Good Ugly) Initiative # Potential November Proposition 2/3rds electorate approval for all taxes and 2/3rds governing body approval to raise new fees.

22 CITY OF CHICO, DRAFT PROPOSED BUDGET : BUDGET HIGHLIGHTS GENERAL FUND

23 CITY OF CHICO, DRAFT PROPOSED BUDGET : BUDGET HIGHLIGHTS PENSIONS What s been done to address pension costs? 1. City Manager s team met with CalPERS CEO. 2. Staff attended CalPERS board meetings and successfully advocated to stop future discount rate reduction. 3. Met with Governor s Department of Finance. 4. Continued negotiations with employee unions for additional employee contributions towards employer s contributions. 5. Established Fund 903 CalPERS Unfunded Liability Reserve. 6. Council approved $541,455 additional funding into Reserve and continued reserve funding in Researching a Section 115 Pension Trust.

24 CITY OF CHICO, DRAFT PROPOSED BUDGET : BUDGET HIGHLIGHTS PENSIONS CalPERS Update: Required contributions provided in two pieces: Normal Cost - based on percentage of applicable payroll Unfunded Liability Payment Annual payment for both plans - $7,598,561 ($6,547,673 PY) Annually payment saves $275,215 New Discount Rate from 7.5% to 7.0% Increase in normal cost rate percentages Begins and phased in over 8 years

25 34 CITY OF CHICO, DRAFT PROPOSED BUDGET : BUDGET HIGHLIGHTS PENSIONS $16,000,000 UNFUNDED ACCRUED LIABILITY ANNUAL PAYMENT $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $

26 CITY OF CHICO, DRAFT PROPOSED BUDGET : BUDGET HIGHLIGHTS PENSIONS Miscellaneous Plan Projected Rate of Gross Salaries 46% 50% 53% 56% 58% Safety Plan Projected Rate of Gross Salaries 48% 53% 58% 62% 65% Projected Net Gen Fund Contributions as % of General Fund Revenues 19% 21% 22% 24% 27%

27 CITY OF CHICO, PROPOSED DRAFT BUDGET : ADMINISTRATIVE SERVICES GOOD OneSolution Accounting Software Phase 2. Indirect Cost Allocation Plan Updated. Business License Compliance Initiated. IT Help Desk Software Installed. New IT Tech 1 position funded. Updated Phone System and Microwave Technology. BAD IT Staff Analysis Completed - We are 50% understaffed (12 FTE). UGLY (On the Horizon) Retirement of key IT personnel in next year.

28 CITY OF CHICO, DRAFT PROPOSED BUDGET FIRE The Good The Bad The Ugly

29 CITY OF CHICO, DRAFT PROPOSED BUDGET Fire The Good People resilient, highly skilled, dedicated, and compassionate workforce $200,000 increase to re staff an additional apparatus (approx. 45% 50%) Deployment Reimbursement o 21 deployments o 109 individual personnel deployments o 19,356 deployment hours o Total Billed: $1,286,928 PERS Salaries: $907,668 Management Salaries: $188,458 Vehicle & Admin. Fees: $189,398

30 CITY OF CHICO, DRAFT PROPOSED BUDGET Fire The Good Code Enforcement Increased Productivity Fire Inspection (Primary) Reinspection Increased efficiencies due to technology Grants o Fire Investigation Team Training and Equipment: $93,191 ($5,581 match) o Diesel Exhaust Removal Systems: $261,058 ($29,252 match) o Peer Fitness Training: $31,471

31 CITY OF CHICO, DRAFT PROPOSED BUDGET Fire The BAD Triple Whammy o Daily Staffing Remains Below SOC Recommended Minimum Level (17 per day vs. current 14 per day) o Loss of Butte/Cal Fire Station 42 o 3.4% Increased Calls for Service (from 2016) Increased Response Times Community Risk Profile o High Density Dwellings o Non Sprinklered Buildings o Wildfire Urban Interface o Active Shooter

32 CITY OF CHICO, DRAFT PROPOSED BUDGET Fire The BAD Lack of Dedicated Fire Based Dispatcher Positions & Minimal Fire Dispatcher Training Untapped Code Enforcement Revenues (apartments and business annual inspections) Lack of Funding for State Mandates: OSHA, min. training standards, LAFCO, ISO Limited Ability to do Low Frequency High Risk Hands On Training Decreased Public Education Station Tour Fire Safety Demo/Class Fire Safe House School Program

33 CITY OF CHICO, PROPOSED BUDGET Fire The UGLY Burnout/Injuries Long Term Impact of increasing workload with fewer daily personnel Upper Management Capacity Lacking Critical Management Level Battalion Chiefs o Accountability o Coaching/Mentoring o Incident Management o Quality Control reports, training, evaluations

34 CITY OF CHICO, PROPOSED BUDGET Fire The UGLY Increasing Gap Reactive vs. Proactive Management o Planning Std of Cover Accreditation, data analysis, CIP o Infrastructure(facilities, communications/radios, Mobile Command Terminal [MCT]) o Succession Planning o Risk Reduction Pre Plans Code Enforcement Community Education Emergency Management

35 CITY OF CHICO, DRAFT PROPOSED BUDGET Questions?

36 CITY OF CHICO, DRAFT PROPOSED BUDGET CITY OF CHICO FIRE DEPARTMENT: THEN AND NOW

37 CHICO POLICE DEPARTMENT Chico City Council ~ Budget Presentation April 17, 2018 Chief of Police Michael O Brien Chico Police Department 1460 Humboldt Road Chico, CA (530)

38 CHICO POLICE DEPARTMENT

39 Traffic Unit is Back! CHICO POLICE DEPARTMENT

40 CHICO POLICE DEPARTMENT Naloxone

41 Retail Watch CHICO POLICE DEPARTMENT

42 CHICO POLICE DEPARTMENT Mobile Crisis Team

43 CHICO POLICE DEPARTMENT School Resource Officers & School Safety

44 CHICO POLICE DEPARTMENT Dispatch & Records

45 CHICO POLICE DEPARTMENT Use of Force Events Compared to Calls for Service CALLS FOR SERVICE VS USE OF FORCE EVENTS Type Calls for Services (CFS) 68,180 72,952 77,622 Use of Force Incidents Percent UOF CFS 0.07% 0.07% 0.08% Calls for service include all events where a police officer is dispatched to a call and is physically at scene.

46 CHICO POLICE DEPARTMENT Dispatch Activity ~ 2015/2016/2017 Comparison DISPATCH PHONE CALLS Non , , , EMERGENCY 48,949 55,025 53,864 TOTAL 222, , ,141 UNFILTERED CAD CALLS FOR SERVICE POLICE Dispatched 83,437 86,780 55,994 Self Initiated 24,417 25,914 53,205 FIRE 22,572 22,319 17,391 TOTAL CAD CALLS 130, , ,590 REPORTS TAKEN OFFICER/CITZ CONTACT 9,145 9,697 8,882 COPLOGIC (ONLINE REPORTING) 3,440 2,995 3,293 TOTAL 12,585 12,692 12,175 80,000 78,000 76,000 74,000 72,000 70,000 68,000 66,000 64,000 YEAR FILTERED CALLS FOR SERVICE , , ,622 Grand Total 218,769 FILTERED CALLS FOR SERVICE 15/16 + 7% 16/17 + 6% 15/ % 62,

47 CHICO POLICE DEPARTMENT 2017 Chico Police Units Dispatched

48 CHICO POLICE DEPARTMENT Property Crimes City of Chico Property Crimes Chico

49 CHICO POLICE DEPARTMENT Violent Crimes City of Chico Violent Crimes Chico

50 CHICO POLICE DEPARTMENT Part I Reported Crimes ~ 2015/2016/2017 Comparison PART 1 OFFENSES REPORTED % Change 15/17 % Change 16/17 HOMICIDE % 400% RAPE % 29% ROBBERY % 11% ASSAULT (AGGRAVATED) % 55% TOTAL VIOLENT CRIMES % 42% BURGLARY % 6% LARCENY % 12% VEHICLE THEFT % 2% ARSON % 21% TOTAL PROPERTY CRIMES % 7% TOTAL PART 1 CRIMES % 10%

51 CHICO POLICE DEPARTMENT

52 CITY MANAGER S RECOMMENDED DRAFT PROPOSED BUDGET City of Chico April 17, 2018