Presented By: Kevin O Rourke Interim City Manager. June 3, 2013

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Presented By: Kevin O Rourke Interim City Manager June 3, 2013 1

10 Council and Public Workshops 2

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1. Adopt a 2-year budget 2. Provided labor strategy authority 3. Supported restructuring of departments organizations and services provided based on the dollars available 4. Supported review of Police Dept. operations to identify financial savings 5. Continued support of Fiscal Policy & appropriate reserves 6. Supported appropriating Property Tax from former RDA 7. Supported the preparation of assessment studies for CIP infrastructure needs, deferred maintenance issues and planning needs 8. Modernizing the UUT 9. Supported studying the reduction of the water transfer 10. Provided direction on budget outreach and communication 11. Supported the development of strategic plan 5

1. Departments to reorganize structure based on what City can afford 2. Implements the expiration of the compensated deferrals (approximately $7.4M) 3. No new programs or services 4. Continues to evaluate public safety costs 5. No new increases in negotiated compensation 6. Increases in CalPERS and medical costs are included 7. Capped costs for services and supplies 8. No additional general fund contributions to CIP 9. Honors Council approved Fiscal Policy 10. Assumes moderate growth in revenue sources 11. Returns former redevelopment Property Tax to General Fund 12. Risks to significant revenues identified but not included 6

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Successor Agency $19,041,505 (4.7%) FY 2013-14 Governmental Funds Revenue Sources Estimated Revenues: $ 401,588,676 Prior Year Balance:* 26,543,652 Total Revenue Sources: $ 428,132,328 CDBG and Other Grants $14,486,530 (3.6%) GF Related Special Revenues $707,480 (0.2%) Capital Projects-Grants & Misc. $22,373,191 (5.6%) Special Revenue Fund $24,001,205 (6.0%) General Fund (includes transfers) $205,741,000 (51.2%) Housing Assistance $29,962,015 (7.4%) Other Enterprise Funds $35,593,560 (8.9%) Water Enterprise $49,682,190 (12.4%) *Non-General Fund Prior Year Balances 8

CDBG & Other Grants $17,149,330 (4.0%) Special Revenue Fund $27,959,755 (6.5%) FY 2013-14 Governmental Funds Appropriations $428,132,328 Community Development $15,218,305 (3.5%) GF Related Special Revenue Fund $4,126,745 (1.0%) Capital Projects $29,454,518 (6.9%) General Fund $205,741,000 (48.0%) Housing Assistance $30,332,215 (7.1%) Other Enterprise Funds $47,360,750 (11.1%) Water Enterprise $50,789,710 (11.9%) 9

Capital Projects-Grants & Misc. $8,698,476 (2.3%) CDBG and Other Grants $13,971,530 (3.7%) Special Revenue Fund $15,148,034 (4.0%) Successor Agency $18,342,090 (4.9%) Housing Assistance $30,316,015 (8.0%) FY 2014-15 Governmental Funds Revenue Sources Estimated Revenues: $ 377,125,719 Prior Year Balance:* 13,787,866 Total Revenue Sources: $ 390,913,585 GF Related Special Revenues $762,310 (0.2%) General Fund (includes Transfers) $204,516,000 (54.2%) Other Enterprise Funds $35,689,074 (9.5%) Water Enterprise $49,682,190 (13.2%) *Non-General Fund Prior Year Balances 10

Community Development $14,330,140 (3.7%) CDBG & Other Grants $15,235,160 (3.9%) Special Revenue Fund $18,803,224 (4.8%) FY 2014-15 Governmental Funds Appropriations $390,913,585 Capital Projects $11,773,866 (3.0%) GF Related Special Revenue Fund $1,578,525 (0.4%) Housing Assistance $30,374,650 (7.8%) General Fund $204,516,000 (52.3%) Other Enterprise Funds $43,419,830 (11.1%) Water Enterprise $50,882,190 (13.0%) 11

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Charges for Services & Fees $9,344,000 (4.5%) Business Tax $11,000,000 (5.4%) License, Permits & Fees $10,556,000 (5.1%) FY 2013-14 General Fund 11 Revenue Sources Estimated Revenues: $205,741,000 Hotel Visitors Tax $7,850,000 (3.8%) Franchise Fees $2,861,000 (1.4%) Sales Tax $40,746,000 (19.8%) Intergovernmental $8,475,000 (4.1%) Other Revenue & Taxes $13,027,000 (6.3%) Property Tax $36,609,000 (17.8%) Use of Money & Property $15,117,000 (7.4%) Property Tax In-Lieu VLF $26,020,000 (12.7%) Utility Users Tax $24,136,000 (11.7%) 13

FY 2013-14 General Fund 11 Appropriations $205,741,000 Clerk of the Council $686,770 (0.3%) Personnel $1,223,216 (0.6%) Fire Services $40,218,470 (19.6%) Bowers Museum $1,474,285 (0.7%) Police Department $103,802,020 (50.5%) City Manager $2,292,150 (1.1%) All Others $14,409,180 (7.0%) Information Services $2,662,230 (1.3%) Reserves Parks & Rec. $3,048,409 (1.5%) Community Development $17,168,840 (8.3%) $550,000 (0.3%) Finance & Mgmt. Services $4,311,822 (2.1%) Public Works Agency $5,170,930 (2.5%) Debt Service $10,344,825 (5.0%) Planning & Building $7,266,504 (3.5%) City Attorney $2,127,694 (1.0%) Non-Departmental $3,392,835 (1.7%) 14

FY 2014-15 General Fund 11 Revenue Sources Estimated Revenues: $204,516,000 Hotel Visitors Tax $8,200,000 (4.0%) Intergovernmental $7,302,000 (3.6%) Franchise Fees $2,876,000 (1.4%) Sales Tax $41,634,000 (20.4%) Charges for Services & Fees $9,205,000 (4.5%) License, Permits & Fees $10,669,000 (5.2%) Business Tax $11,300,000 (5.5%) Property Tax $34,514,000 (16.9%) Other Revenue & Taxes $12,890,000 (6.3%) Use of Money & Property $15,124,000 (7.4%) Property Tax In-Lieu VLF $26,801,000 (13.1%) Utility Users Tax $24,001,000 (11.7%) 15

FY 2014-15 General Fund 11 Appropriations $204,516,000 Fire Services $41,018,818 (20.1%) Clerk of the Council $699,950 (0.3%) Personnel $1,256,157 (0.6%) Police Department $106,810,920 (52.2%) Bowers Museum $1,474,540 (0.7%) City Manager $2,345,240 (1.1%) All Others $11,486,937 (5.6%) Information Services $2,662,230 (1.3%) City Attorney $2,180,985 (1.1%) Reserves $185,574 (0.1%) Finance & Mgmt. Services $4,488,640 (2.2%) Public Works Agency $5,215,520 (2.6%) Parks & Rec. $17,380,345 (8.5%) Debt Service $10,499,825 (5.1%) Planning & Building $7,429,421 (3.6%) Community Development $550,000 (0.3%) Non-Departmental $317,835 (0.2%) 16

Expense Category Proposed FY 2013-14 Proposed FY 2014-15 $ $ Labor & Benefit Costs 112,597,859 116,413,961 Fire & Medical Services 40,218,470 41,018,818 Contractual & Other Services 23,654,433 20,585,063 Debt Service 10,452,440 10,545,730 Fixed Costs 10,084,217 10,088,682 Other Operating Costs 4,115,052 4,107,797 Reserves 3,048,409 185,574 Bowers Museum 1,474,285 1,474,540 Capital 95,835 95,835 Totals $205,741,000 $204,516,000 17

Net Reduction of 155 FT Positions Reallocation of 12 Positions No Unfunded Positions Filling of 74 Vacancies 18

DEPARTMENT FY 08-09* FY 13-14 Positions Deleted % Change City Manager's Office 10 9 1 10.0% 4 City Attorney's Office 18 12 6 33.3% 1 Clerk Of The Council 5 4 1 20.0% 0 Community Development Agency 112 62 50 44.6% 3 FY 13-14 Vacant Positions Finance & Management Services 141 105 36 25.5% 11 Fire Department** 283 n/a 283 100.0% n/a Parks, Recreation & Community Services 149 64 85 57.0% 5 Personnel Services 34 26 8 23.5% 5 Planning & Building Agency 110 45 65 59.1% 7 Police Department 718 579 139 19.4% 17 Public Works Agency 205 143 62 30.2% 21 Totals 1,785 1,049 736 41.2% 74 *Peak Position Count; Estimated 272 vacant positions in FY08-09 **City Contracted Fire & Medic Services on 4/20/12 19

Development of the City s Strategic Plan Development of Capital and deferred maintenance needs assessment Update the General Plan and Zoning Code Continue to identify for reorganization & cost efficiency opportunities Development of an Information Services Strategic Plan Preparation of Citywide Economic Development Strategy 20

Priorities as dollars become available: Willard Joint-Use Park Optimal Staffing $128K Expected project completion is January 2014 Garfield Community Center Optimal Staffing $199K Expected project completion is December 2013 4 th of July Event $30K Additional GF Code Enforcement Staffing $473K to $987K 21

June 17-2 nd Public Hearing & Adoption July 1 New Fiscal Year Begins 22

Presented By: Kevin O Rourke Interim City Manager June 3, 2013 23