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Home My WebLink About2014 04-29 CC HA ADJ MINBook 96 / Page 70 04-29-2014 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY FY 2015 BUDGET WORKSHOP April 29, 2014 The Adjourned Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City was called to order at 5:05 p.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council / Board members present: Cano, Morrison, Rios, Sotelo-Solis. Council/ Board members absent: Natividad. Administrative Officials present: Dalla, Deese, Duong, Manganiello, Parra, Raulston, Roberts, Rodriguez, Silva, Stevenson, Vergara, Williams, Ybarra. Others present: City Treasurer Mitch Beauchamp. PLEDGE OF ALLEGIANCE TO THE FLAG BY MAYOR RON MORRISON FISCAL YEAR 2014-2015 BUDGET WORKSHOP 1. City Manager Leslie Deese presented opening remarks and an Overview of the FY 2015 Preliminary Budget Workshop, reviewed the planned agenda and introduced individual staff members Stacy Stevenson, Brad Raulston, Mark Roberts and Steve Manganiello who made individual presentations on the below listed topics and responded to questions. NOTE: All presentation materials are attached as Exhibit "A" 2. Fiscal Year 2015 Preliminary Budget Update a. General Fund Budget Summary b. Total Operating Budget Summary c. Significant Budgetary Impacts d. Proposed Changes & Impacts e. CDBG-Funded Program Summary f. Capital Improvement Program g. Reserves & Policies Book 96 / Page 71 04-29-2014 FISCAL YEAR 2014-2015 BUDGET WORKSHOP (cont.) 3. Future Impacts & Next Steps 4. Public Comment None. 5. City Council Comments and Direction Following questions and discussion the consensus was to have staff bring back at the next budget workshop for further discussion the possible supplemental funding from the General Fund of CDBG Programs as follows: Literacy Program $7,630; Trauma Intervention $8,000; Housing Inspection $62,238; Neighborhood Preservation $129,302 and Neighborhood Councils $15,000. There was no vote. The City Council took the following action regarding proposed personnel changes. Motion by Sotelo-Solis, seconded by Natividad, to support the proposed changes. Carried by unanimous vote. ADJOURNMENT Motion by Rios, seconded by Cano, to adjourn the meeting to the next Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City to be held Tuesday, May 6, 2014 at 6:00 p.m. at the Council Chambers, National City, California. Carried by unanimous vote. The meeting closed at 6:54 p.m. The foregoing minutes were approved at the Adjourned Regular Meeting of August 5, 2014. * CALIFC,RNtlk+ NATION/A1 aucw INCORPORATE1 PRELIMINARY BUDGET Fiscal Year 2015 April 29, 2014 EXHIBIT 'A' M- CALIFORNI* -+ NAT14NAL CITp mco..O..T.4 City Manager Introduction Leslie Deese City Manager 2 +- CALIFORNIA �+ t TIONALCar k Preliminary Budget Mark Roberts Director of Finance 3 +- COIIFORNIA -o NATIONALCH Strategic Plan Objective 2a 2. Achieve Fiscal Sustainability a) Prepare effective budget, accurately forecast funding sources .. . �- CAIIPOR$IA �► K&TUONALCI'p f Preliminary General Fund Summary Fiscal Year 2015 Estimated Revenues Estimated Expenditures* Estimated Surplus/(Deficit) $42,878,675 $41,175,452 $1,703,223 * includes transfers out ($1,710,227) Capital Improvement Program (CIP) budget information not included. 5 +- CALIFORNIA -i Myr '..�:Tay ,,,*.�J Preliminary General Fund Summary Fiscal Year 2015 Fund Description 401 CITY COUNCIL 402 CITY CLERK 403 CITY MANAGER 405 CITY ATTORNEY 409 NON -DEPARTMENTAL 410 CITY TREASURER 411 POLICE 412 FIRE 416 ENGINEERING & PUBLIC WORKS 417 ADMINISTRATIVE SERVICES 418 COMMUNITY DEVELOPMENT 419 HOUSING, GRANTS & ASSET MANAGEMENT Personnel Services 304,552 213,538 986,947 549,577 24,414 16,251,631 6,640,382 763,920 1,475,415 1,377,589 161,119 Maintenance & Allocated Costs & Operations Capital Outlay Internal Svc Chrgs Total Budget* 27,659 79,700 26,820 142,050 745,114 2,110 1,680,132 677,140 572,000 367,774 154,900 64,000 190,000 50,000 111,173 46,982 107,644 56,223 55,000 15,021 2,595,832 900,987 865,443 347,103 826,486 8,847 443,384 340,220 1,121,411 747,850 800,114 41,545 20, 717, 595 8,218,509 2,201,363 2,240,292 2,358,975 233,966 GENERAL FUND 28,749,084 4,539,399 240,000 5,936,741 39,465,224 6 * CIP information not included. • CAuroRMIA» N,ATI.ONALan. C?.10,01 ,.� General Fund Revenues Fiscal Year 2015 Estimated Revenues - $42.88M Property Tax in Lieu of Sales Tax $4.21 Property Tax in Lieu of VLF $5.50 Props Sales Tax $12.13 District Sales Tax $9.73 Tax $2.07 7 +-CALIFORNIA ^a $ATIONALCifr General Fund Revenues FY 14 Adopted vs FY 15 Estimated FY14 FY15 Adopted Estimated Change Sales Tax $ 11,358,170 $ 12,126,248 $ 768,078 Proposition D / District Tax 9,418,000 9,732,000 314,000 Property Tax 1,880,173 2,068,209 188,036 Property Tax in Lieu of VLF 5,185,350 5,500,000 314,650 Property Tax in Lieu of Sales Tax 4,093,008 4,213,491 120,483 Other Revenue 10,413,688 9,238,727 (1,174,961) Total $ 42,348,389 $ 42,878,675 $ 530,286 8 - OALIRORNIA - WalloN,AL CITl cf Bradley -Burns Sales Tax & District Sales Tax ■ District Tax ■ Sales Tax FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 9 4,- CALIFORNIA -+ NATIONAL CiT General Fund Expenditures FY 14 Adopted vs FY 15 Estimated FY 14 FY 15 Adopted Estimated Change Personnel Services $ 28,578,476 $ 28,749,084 $ 170,608 Maintenance & Operations 4,793,028 4,539,399 (253,629) Capital Outlay 305,000 240,000 (65,000) Capital Improvement 2,531,400 - (2,531,400) Allocated Costs & Internal Svc. Charges 5,809,062 5,936,741 127,679 Transfers Out 1,870,193 1,710,227 (159,966) Total $ 43,887 159 $ 41,175,452 $ (2,711,707) 10 Fiscal Year 2015 CIP budget not included. CALIFORNIA •-► N,ATIONALC17y General Fund Expenditures FY 14 Adopted vs FY 15 Estimated FY 14 FY 15 Adopted Estimated Change Personnel Services $ 28,578,476 $ 28,749,084 $ 170,608 Maintenance & Operations 4,793,028 4,539,399 (253,629) Capital Outlay 305,000 240,000 (65,000) Allocated Costs & Internal Svc. Charges 5,809,062 5,936,741 127,679 Transfers Out 1,870,193 1,710,227 (159,966) Total $ 41,355 759 $ 41,175,452 $ (180,307) 11 CIP budget not included. ..4 CALIFORNIA -s NATIONAL -Mg ( IVC1921 „DJ General Fund Expenditures Fiscal Year 2015 Estimated Expenditures by Category - $39.47M Capital Outlay $0.24 Maintenance & Operations $4.55 Fiscal Year 2015 CIP information not included. Allot. Costs & Internal Chrgs $5.94 Personnel Services $28.75 12 w QA�IPOBMIA `• 1 flONALCI ejo. General Fund Percentage of Expenditures by Department — FY15 Other Depts 26.7% Police 52.5% Fire 20.8% * CIP information not included. Police Fire Other Depts • City Council • City Clerk • City Treasurer • City Manager • City Attorney • Administrative Services • Community Development • Engineering / Public Works • Housing, Grants, & Asset Management • Non -Departmental * 13 +` CAUFORNIA .n. NATIONAL CI1? `- /4C0�lOIIA'n4� General Fund Revenue & Expenditure Forecast c 0 $50.0 $45.0 - $40.0 $35.0 - $30.0-. $25.0 - Revenues Less District Tax Revenues w/ District Tax �-Expenditures • / / e • $20.0 $15.0 1 I I l 1 I I 1 I I I O� Off` O Ob O� O9' O°� ,gyp \I\ t\� ,�� 4� 4 4 4A 4y 4 4 4A4A 4A 4� 4 includes transfers out (no transfers -in) 14 e- CALIFORNIA • . NATIONALCIr Total Operating Budget FY 14 Adopted vs FY 15 Preliminary General Fund Revenues Transfers In General Fund Expenditures* Transfers Out Projected Fund Balance Change - General Fund Other Fund Revenues Transfers In Other Fund Expenditures* Transfers Out Projected Fund Balance Change - Other Funds All Revenues All Expenditures Projected Fund Balance Change - All Funds Transfers In/Out for all funds equal (net) $0 * CIP budget not included. FY 14 Adopted $41,888,780 459,609 (39,430,566) (1,870,193) $1,047,630 FY 14 Adopted $34,714,296 1,870,193 (36,189,224) (459,609) ($64,344) FY 14 Adopted $76,603,076 (75,619,790) $983,286 FY 15 Preliminary $42,878,675 0 (39,465,224) (1,710,227) $1,703,223 FY 15 Preliminary $34,986,598 1,710,227 (34,966,416) 0 $1,730,409 FY 15 Preliminary $77,865,273 (74,431,640) $3,433,632 Change $989,895 (459,609) (34,658) 159,966 $655,593 Change $272,302 (159,966) 1,222,808 459,609 $1,794, 753 Change $1,262,197 1,188,150 $2,450,346 15 c ALIrORNMA -s NATIONAL CITY► Total Operating Budget FY 14 Adopted vs FY 15 Preliminary General Fund Revenues Transfers In General Fund Expenditures* Transfers Out Projected Fund Balance Change - General Fund Other Fund Revenues Transfers In Other Fund Expenditures* Transfers Out Projected Fund Balance Change - Other Funds All Revenues All Expenditures Projected Fund Balance Change - All Funds Transfers In/Out for all funds equal (net) $0 * CIP budget for Fiscal Year 2015 not included. FY 14 Adopted $41,888,780 459,609 (41,961,966) (1,870,193) ($1,483,770) FY 14 Adopted $34,714,296 1,870,193 (39,362,224) (459,609) ($3,237,344) FY 14 Adopted $76,603,076 (81, 324,190) ($4,721,114) FY 15 Preliminary $42,878,675 0 (39,465,224) (1,710,227) $1,703,223 FY 15 Preliminary $34,986,598 1,710,227 (34,966,416) 0 $1,730,409 FY 15 Preliminary $77,865,273 (74,431,640) $3,433,632 Change $989,895 (459,609) 2,496, 742 159,966 $3,186,993 Change $272,302 (159,966) 4,395,808 459,609 $4,967,753 Change $1,262,197 6,892,550 $8,154,746 16 CAURORNfA r NATIONAL CYTy �.. Preliminary Total Budget Fiscal Year 2015 Estimated Expenditures by Fund - $74.43M Library Fund vr Gas Taxes Fund $1.68 $1.78 CIP information not included. Nutrition $0.77 17 -QA1.IFONNIA - NATIONAL Orr Jr./ r ) Preliminary Total Budget Fiscal Year 2015 Estimated Expenditures by Category - $74.43M Capital Outlay $0.60 Maintenance & Operations $29.50 CIP information not included. Personnel Services $35.45 18 + CALIFORNIA s - N&TIONALCXTl rxcearoaYcsn Ed Prendell Budget Analyst 19 -. CIILIFORNIA ++ • • NATIONAALary Significant General Fund Impacts FY 15 Preliminary vs FY 14 Adopted Additional Tax revenues anticipated* $ 1,705,247 CIP ** TBD Pension contribution increases (240,042) Internal Service Charge Increase— Facilities Maint. (112,363) Debt Service Decrease — Police Department 97,356 Election Expense - November 2014 (35,000) Health care premium increases *** (29,268) * Sales, Property, & Related Taxes ** Fiscal Year 2015 CIP information not yet included. *** Healthcare premium increases not yet included. 20 CALIFORNIA - &1lONAL airy C12 Significant Non -General Fund Impacts FY 15 Preliminary vs FY 14 Adopted CIP * TBD WINGS Grant Revenue - Decrease $(1,012,000) 1,137,958 WINGS Grant Expenses - Decrease Section 8 Revenue Increase 553,000 Pension contribution increases (176,169) Internal Service Charge Increase — Facilities Maint. (33,228) * Fiscal Year 2015 CIP information not yet included. 21 �- CAUFORNµ -s NATIONAL Clry Proposed Changes General Fund: Staffing Changes $ 40,095 CDBG 414,540 Total $454,635 Other Funds: Staffing Changes $417,481 22 CITY ORGANIZATIONAL CHART — CALIFORNIA — NATIONAL CITY INeenyonATR® Attorney Neighborhood Counnal National tty Residents Oty Clerk Oty Treasurer Records Manager Arrninbtnative Services T Finance Human Resources M6 Risk Management Emergency Smokes Boning Fre Engineering & Public Worts Engineering Environmental Compliance Public Works Community Development Hou kg, Grants, & Asset Management Police Community Services Neighborhood Services Panning Asset Management Grants Hornier Nutrition 23 ^- CALIFORNIA r NATIONAL Car ( #CO Lin Staffing Levels • Strategic Objective 1 b Align workforce with City's objectives and provide training and support necessary to fully develop employees. • Proposed budget includes position: -Additions - Deletions - Reclassifications +- CALIrORNIA + TIONALCITp Staffing Levels —All Funds FY 14 Adopted FY 15 Proposed 381.00 340.85 Net Change (40.15) 25 + CALIFORNIA .► NATIONAL CITp 2 i Staffing Levels Department Position Fund FY 14 Adopted FY15 Preliminary Change POLICE POLICE CAPTAIN 001 1.00 2.00 1.00 POLICE LIEUTENANT 001 5.00 4.00 (1.00) POLICE RECORDS CLERK 001 6.00 7.00 1.00 RESERVE POLICE OFFICER 001 2.88 4.00 1.12 TOTAL POLICE: 14.88 17.00 2.12 ENGINEERING & PUBLIC WORKS DIRECTOR OF PUBLIC WORKS 001 0.55 0.00 (0.55) PROJECT OFFICER 001 0.85 0.00 (0.85) MAINTENANCE WORKER 109 1.50 2.00 0.50 PROJECT OFFICER 109 0.10 0.00 (0.10) MAINTENANCE WORKER 125 3.50 3.00 (0.50) PROJECT OFFICER 125 0.05 0.00 (0.05) DIRECTOR OF PUBLIC WORKS 125 0.45 0.00 (0.45) TOTAL ENGINEERING & PUBLIC WORKS: 7.00 5.00 (2.00) ADMINISTRATIVE SERVICES MANAGEMENT ANALYST II 001 1.00 2.00 1.00 SENIOR ACCOUNTANT 001 2.00 1.00 (1.00) TOTAL ADMINISTRATIVE SERVICES: 3.00 3.00 0.00 26 .- CALIFORNIA �+ NpTIONALCr Staffing Levels Department Position Fund FY14 Adopted FY15 Preliminary Change COMMUNITY DEVELOPMENT AQUATICS MANAGER 001 0.49 0.00 (0.49) CODE CONFORMANCE OFFICER I 001 0.75 2.00 1.25 CODE CONFORMANCE OFFICER II 001 2.00 1.00 (1.00) GRAFFITI REMOVAL TECHNICIAN 001 0.60 1.00 0.40 LIFEGUARD 001 1.55 0.00 (1.55) RECREATION LEADER I 001 0.49 0.00 (0.49) SENIOR LIFEGUARD 001 0.40 0.00 (0.40) LIBRARIAN 104 3.23 4.80 1.57 LIBRARY ASSISTANT 104 2.88 3.92 1.04 LIBRARY TECHNICIAN 104 3.80 4.50 0.70 ACADEMIC ENRICHMENT PROG COORD 246 0.00 0.00 0.02 LIBRARIAN 246 1.00 0.00 (1.00) LIBRARY ASSISTANT 246 2.96 0.00 (2.96) LIBRARY CLERK 246 31.52 0.00 (31.52) OFFICE AIDE 246 4.28 0.00 (4.28) CODE CONFORMANCE OFFICER I 301 0.25 0.00 (0.25) GRAFFITI REMOVAL TECHNICIAN 301 0.40 0.00 (0.40) LEAD HOUSING INSPECTOR 301 1.00 0.00 (1.00) LIFEGUARD 301 1.40 0.00 (1.40) LIBRARY ASSISTANT 320 0.00 0.50 0.50 TOTAL COMMUNITY DEVELOPMENT: 59.00 17.72 (41.28) 27 -CAUFORNIA •+ NATIoNAL atry Staffing Levels Department Position Fund FY 14 Adopted FY15 Preliminary Change HOUSING, GRANTS & ASSET MANAGEMENT LEAD HOUSING INSPECTOR 001 0.00 0.50 0.50 PROPERTY AGENT 001 0.00 0.50 0.50 LEAD HOUSING INSPECTOR 301 0.00 0.50 0.50 COMMUNITY DEVELOPMENT SPEC I 532 1.00 0.00 (1.00) PROPERTY AGENT 532 0.00 0.50 0.50 TOTAL HOUSING, GRANTS & ASSET MANAGEMENT: 1.00 2.00 1.00 GRAND TOTAL: 84.88 44.73 (40.15) 28 A- CAUFORNIA — Na1ONAl .Or sir Fiscal Year 2015 Proposed Personnel Changes Dept. Position FTE Est. Cost Administrative Services MIS Technician II 0.50 60,802 Total Administrative Services: 0.50 60,802 City Attorney Intern 0.50 7,448 Total City Attorney: 0.50 7,448 Police Community Service Officer Police Investigator I Police Investigator I Police Investigator I Prop & Evid Spec I Crime Scene Specialist Total Police: *Internal Service Fund (ISF) 1.00 69,795 0.50 13,633 0.50 13,633 0.50 13,633 0.50 10,626 (1.00) (62, 900) 2.00 58,419 Fund Gen. Fund Gas Tax Sewer ISF * - - - 60,802 - - - 60,802 7,448 - - - 7,448 - - - 69,795 - - 13,633 - - 13,633 - - 13,633 - - 10,626 - - (62,900) - - - - - - - 58,419 - - - 29 0- CALIFORNIA ..e N TJONAL C Fiscal Year 2015 Proposed Personnel Changes Dept. Position Engineering & Public Works Assistant Civil Engineer Civil Engineering Technician Traffic Painter Street & Wastewater Mainten Wastewater Crew Chief Equipment Maintenance Supe Project Officer Public Works Director Total Engineering & Public Works: Total Requests: * Internal Service Fund (ISF) FTE Est. Cost 1.00 84,270 1.00 75,786 1.00 58,697 1.00 94,886 1.00 82,424 1.00 80,844 (1.00) (85,000) (1.00) (61, 000) 4.00 330,907 7.00 457,576 Fund Gen. Fund Gas Tax Sewer ISF * 42,135 42,135 37,893 37,893 58,697 47,443 47,443 82,424 (72,250) (8,500) (4,250) (33, 550) (27, 450) 80,844 (25, 772) 177,668 98,167 80,844 40,095 177,668 98,167 141,646 30 +� CALIFORNIA -� NiontoNAL arry i CDBG-Funded Programs Mark Roberts Director of Finance 31 �- CALIFORNIA •-+ NpTiONAL C)N'T$r Program Public Services Supreme Teens $ 27,500 Literacy Services 52,000 Neighborhood Councils Program 15,000 Tiny Tots 29,337 Trauma Intenention Program * 8,000 Non -Public Services Housing Inspection Program 110,477 Neighborhood Preservation 129,302 Drainage Improvements 100,000 Park ADA Enhancements 100,000 Total $ 492,116 CDBG - Summary Fiscal Year 2015 Total Awarded $ 27,500 44,370 29,337 48,239 $ 77,576 Remainder 7,630 15,000 8,000 62,238 129,302 100,000 100,000 $ 414,540 * Initial request $11,000 funding for the Trauma Intervention Programs of San Diego County, Inc. 32 - O►LIFORN{A -� Lei&T1ONA LCITp .co0.3.� CDBG -Initial Awards Fiscal Year 2014 Program Request Leam To Swim $ 32,856 Neighborhood Councils Program 15,000 Supreme Teens 22,070 Tiny Tots 29,337 Drainage Improements 300,000 Public Access Defibrillator Program 16,893 George H Waters Nutrition Program 75,000 Literacy Ser'ices 52,000 Housing Inspection Program 145,000 Neighborhood Preservation 121,127 NCPD Support S\cs: Domestic Violence Response Team 20,000 Trauma Intervention Program 8,000 Total $ 837,283 Awarded 20,000 22,973 100,000 75,000 40,000 121,000 50,347 20,000 8,000 $ 457,320 Remainder $ 32,856 15,000 2,070 6,364 200,000 16,893 12,000 24,000 70,780 $ 379,963 33 ...CALIFORNIA ^• NATIONAL CITY CDBG - Final Awards Fiscal Year 2014 Program Request Leam To Swim $ 32,856 Neighborhood Councils Program 15,000 Supreme Teens 22,070 Tiny Tots 29,337 Drainage Improvements 300,000 Public Access Defibrillator Program 16,893 George H Waters Nutrition Program 75,000 Literacy Services 52,000 Housing Inspection Program 145,000 Neighborhood Preservation 121,127 NCPD Support Svcs: Domestic Violence Response Team 20,000 Trauma Intervention Program 8,000 Total $ 837,283 * including reallocated funds from prior year Awarded 20,000 26,706 116,408 75,000 46,501 140,512 58,773 20,000 8,000 $ 511,900 Remainder $ 32,856 15,000 2,070 2,631 183,592 16,893 5,499 4,488 62,354 $ 325,383 34 -CAUFORN{A•+ Capital Improvement Program (CIP) el.�M.� Fiscal Year 2015 Stephen Manganiello Director of Public Works / City Engineer ^� CAuIFORNIA .a NATioNALCI r gtcJJ9 CIP: Overview • "Sliding" five-year budgeting process used to identify, prioritize and coordinate the financing and timing of major public improvements • First year of the five-year program represents the "approved" capital budget, which is incorporated into the City's annual budget • Projects slated for subsequent years in the program are for planning purposes only and do not receive expenditure authority • CIP is presented to Planning Commission for General Plan Consistency Review, prior to going to City Council for budget adoption 36 ...CALIFORNIA - NATIONAL arty CIP: Types of Projects • Infrastructure - streets, storm drains, sewer systems, street lighting, traffic signals, sidewalks, curb & gutters, and ADA curb ramps • Facilities - city offices, warehouses, public works yard and support structures, police and fire stations, community centers, public libraries and information technology (computers, data storage, public safety cameras and communications equipment) • Parks & Recreation — park amenities such as ball fields, restrooms, lighting, landscaping, walking paths and information technology; health and quality of life facilities such as recreation centers, municipal swimming pool, public gymnasiums and aquatic center • Housing - infill development projects that provide housing opportunities for individuals and families at all income levels 37 iCALIi0RNtA -+ noo.w,A„0J CIP: Project Evaluation • City staff develop project proposals based on needs assessments and input from the Community • CIP Committee reviews project proposals presented by City staff on an annual basis and provides recommendations to the Planning Commission and City Council as part of the City's annual budget • Key criteria considered include: — Health & safety benefits — Community support — Project costs & schedule — Available funding — Consistency with the City's General Plan and other long-range planning documents — On -going maintenance costs 38 ...CALIFORNIA* NATIONAL CITl c'; CIP: Funding • With the support of the Community and City Council, staff aggressively pursue Federal, State and Local grants to fund Capital Projects • Other available funding sources include: TransNet (Prop A), Gas Tax, Sewer Service Fund, Capital Outlay, Development Impact Fees (DIF), Information Systems Maintenance Fund, and General Fund • Funding sources for Capital Projects often have restrictions based on project scope and/or expenditure timelines • Exploring financing options, including review of capital / major maintenance reserve policies, is critical to ensuring sustainability of City Facilities and the City's Fleet 39 +- CALIFORNIA �+ NATIONAL CITY Fiscal Sustainability Mark Roberts Director of Finance 40 .. CALIFORNIA •+ tualIONAL arty laati Strategic Plan Objective 2d Achieve Fiscal Sustainability d) Fund replacement reserves, or create financing plans, for fleet, facilities and other City assets. a'^ CALIFORNIA ^+ NllTIONALC�Ty Contingency Reserve Policy Council Policy #201 Maintenance of Reserve Funds Contingency Reserve - General Fund: The City Manager is charged with the responsibility of maintaining an accumulating General Fund Contingency Reserve at a minimum target range equal to between 25% and 50% of a single year's General Fund operating expenditures. 42 CALIFORNIA + NATXONALClTV C:taw � General Fund Reserves As of June 30, 2013: Contingency Reserve (Committed Fund Balance) $9,085,066 Unassigned Fund Balance $6,995,075 �+- CRLIcoaIFORNM -+ s►TllQNAL General Fund Contingency Reserve - roewrs� Reserve �+••25% Goal «- CALIFORNIA -+ NA,TlONALCl�p Other Reserve Funds Council Policy # 201 — Contingency • Gas Tax Fund • Sewer Service Fund — Liability Insurance — Workers' Compensation — Debt Service — Equipment Replacement 45 CALIFORNIAnov INCORPORATED Future Impacts *-CALIFORNIA ^- tTtaNucrrf Stacey Stevenson Director of Administrative Services 47 ^- CALIFORNIA -+ NATIONAL Cal► of Future Impacts Fiscal Year 2016 • Environmental Compliance • 800 Megahertz Radio System Upgrade • Minimum Wage Fiscal Year 2017 • Proposition D Sunset • Pension Rate Increase (through 2021) — CALIFORNIA ..e NATIONAL Crier C�.a` Future Impacts -Proposition D Sunset • Locally controlled revenue measure • Represents approximately 24% of the General Fund operating budget • Generated by both residents and visitors to National City • Provides needed funding for services to National City residents • Fire • Graffiti Enforcement • Police • Library • Code Enforcement • Youth & Senior Recreation • September 2017 Sunset date 49 Ni,,iQNALCrrp Future Impacts - Pension Rates On February 18, 2014, the CaIPERS Board adopted new strategic asset allocation and actuarial assumptions. These changes will result in increases in the City's contribution rates starting in FY 2017. • Changes in amortization and smoothing policies 1. Rate formulas reflect that employees are living longer 2. Rates in the near term will increase 3. The changes will be amortized over 20 years with a 5 year phase in starting in FY 2017. 4. Rates assume CaIPERS earns 7.50% • On the horizon - Recalculation of employer normal rate in the June 30, 2014 actuarial valuation 50 +� OALIPORNIA -. t TIONALC1itTTi c',";c�0 Projected Pension Rates Fiscal Year Miscellaneous Safety 2014 21.237% 38.007% 2015 21.505% 40.591% 2016* 23.300% 42.600% 2017 TBD TBD * estimated rates ...CALIFORNIA `• NAriONALCM Projected Pension Rates Category Total Estimated Change in Total Normal Cost (% of payroll) Total Estimated Ultimate Change in Employer Rate FY16-17 (% of payroll) Total Estimated Ultimate Change in Employer Rate FY20-21 (% of payroll) Miscellaneous 3% at 60 0.6% to 0.7% 1.2% to 1.9% 4.0% to 6.7 % 2% at 55 0.2% to 0.3% 0.4% to 1.3% 1.3% to 2.1% 2% at 60 0.3% to 0.4 % 0.4% to 1.0% 1.0% to 3.1% Safety Safety Fire 0.0% to 0.5% 1.2% to 1.9% 6.3% to 7.2% Safety Police 1.1% to 1.7% 1.9% to 3.3% 5.3% to 9.3% 52 ...CALIFORNIA •-+ NATIONAL Crrp Next Steps • Additional staff review and refinement • Second workshop (May 27th) — CIP — Reserve Policies • Prepare final budget for adoption (no later than June 30, 2014) *+ CALIFORNIA ^+ NATIONAL Carp L Council Direction • Staff seeks direction on: —Operating budgets for City programs that were under -funded or unfunded through the CDBG award process. —Proposed personnel changes. —Additional priorities, staffing, or programmatic adjustments. + CAL1F,0RNIA NATIONAL I ?RAT-� City Manager Final Comments -PA. CALIFORNIA.+ NATIONAL Crry INCORPORATED Council Comments/Direction 56