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Home My WebLink About2016 04-26 CC HA ADJ MINBook 98 / Page 82 04-26-2016 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY FISCAL YEAR 2017 BUDGET April 26, 2016 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 5:04 p.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council / Board members present: Cano, Mendivil, Morrison, Rios, Sotelo-Solis. Administrative Officials present: Dalla, Deese, Duong, Manganiello, Muthusamy, Parra, Prendell, 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 2017 BUDGET WORKSHOP 1. Introduction/Presentation City Manager Leslie Deese gave opening remarks and provided a quick overview highlighting some of the City's accomplishments, CIP projects, innovative programs and organizational accomplishments particularly as they relate to Proposition "D", the voter approved 1 cent sales tax. 2. Fiscal Year 2017 Preliminary Budget Update Finance Director Mark Roberts introduced himself and individual staff members Stacey Stevenson, Brad Raulston, Mark Roberts, Ed Prendell and Steve Manganiello who made presentations on the below listed items and responded to questions. a. General Fund Budget Summary b. Total Budget Summary c. Significant Budgetary Impacts d. Proposed Changes & Impacts e. Capital Improvement Program ("CIP") Note: All presentation materials are attached as Exhibit "A". Book 98 / Page 83 04-26-2016 FISCAL YEAR 2017 BUDGET WORKSHOP (cont.) 3. Reserve Policy Revision — Addition of Facilities Maintenance Reserve 4. Discussion of Development of Budget Ordinance 5. Future Impacts & Next Steps 6. City Manager Closing Comments & Request for Direction City Manager Deese thanked the City Council for the opportunity to present the budget and expressed thanks to the staff for bringing a thorough budget document before Council so early in the process. Staff looks forward to City Council Direction. 7. Public Comments Jacqueline Reynoso, National City Chamber of Commerce, complimented the City the budget, applauded the City for partnering with non-profit community partners as well as the Chamber. Ms. Reynoso asked the City Council to access what they currently do and in the area of economic development and determine if it is possible to do more given the changes and uncertainties confronting the business community. 8. Council Direction Motion by Mendivil. seconded by Cano, to support moving forward with the Economic Development position. Carried by unanimous vote. Motion by Sotelo-Solis, seconded by Rios, to move forward with staffing the Maintenance Worker Position. Carried by unanimous vote. Motion by Sotelo-Solis, seconded by Rios, to move forward with Homeless Services contract. Carried by unanimous vote. Motion by Mendivil, seconded by Cano, to not move forward with cable casting until additional information is brought back at a future Council Meeting. Carried by the following vote, to -wit: Ayes: Cano, Mendivil, Morrison, Rios. Nays: Sotelo- Solis. Abstain: None. Absent: None. Book 98 / Page 83a 04-26-2016 ADJOURNMENT Motion by Sotelo-Solis, 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 3, 2016 at 6:00 p.m. at the Council Chambers, National City, California and to dispense with the tentative Budget Hearing on Carried by unanimous vote. The meeting closed at 8:22 p.m. City The foregoing minutes were approved at the March 21, 2017. 2016 City Council Summer Legislative Recess • July 5 — City Council Meeting — Suspended • July 19 — City Council Meeting — Suspended lerk EXHIBIT 'A' __a» CALL Nai°. ' INCORPORATw "Velocity" AtoZ Since November 2014 FY17 Budget Workshop April 26, 2016 Advancing • Addressing Needs • Capital Improvement Program • Fund Balance & Reserves • Staffing • Facilities • Fleet • Infrastructure • Staff Development Building & Rebuilding • Neighborhood Services • Enhanced Code Enforcement • Community Services • Internships • Economic Development Code Compliance • Homelessness • South Bay Homeless Coalition • Encampment Cleanups • Workshop • Alpha Project Contract • Storm Drain Grates • L.A. Dream Center & Regional Tours • Title I Revisions for Consolidation & Efficiency • Business License & Unlicensed Vendors Compliance • Shopping Cart Retrieval Pilot • Recreational Vehicle Ordinance • Signs & Outdoor Advertising Ordinance • "Together We Can" Beautification Program Diversity in Communication • Cartegraph — Online Permit Tracking • CIP Project Website (nationalcityprojects.com) • National City News Insert (SD Daily Transcript) • OpenGov - online budget/ financial transparency • Virtual Ridealongs with Police & Fire • SeeClickFix — online citizen reporting (summer/fall 2016) • Cablecasting (FY17 Budget) mployee Development • Employee Safety Subcommittee Workgroup • Employee Tool Committee • Recruiting & Retention Committee (POA/City) • Regional Job Shadowing Program • Increased Promotional Opportunities • Employee Training Budget Increased • Contract Training for Departments • Employee Safety Training - Videotape • Employee Educational Fair Fiscal Sustainability • 2004 Bond Payoff — Saves $2.1 M • RSG Settlement - $1.8M • Internal Vehicle Financing - Saves Financing Costs of 3-5% • Carmax Option to Purchase Agreement Finalized • Mutual Aid Fire Cost Recovery Fee - Increased from 10% to 23% • Digital Billboard Revenue Increase Going Green • FREBE Program • Energy Savings Contract • Drought Tolerant Landscaping (Xeroscape) • SDGEtE Retrofit at Morgan/Kimball Towers • Expedited, streamlined permitting process for rooftop solar • PACE Program Rollout &t Accomplishments • HERO (residential) 46 completed projects; $1.08M funded • Y-GreneWorks 47 approved; 36 underway; $784K funded • Figtree (commercial) 6 projects in progress totaling $4 million in energy improvements • Targeted Community Clean-ups • Storm Water Treatment Project (A Ave; 4th St; 8th St) • A Avenue Green Street ' Fri High Performance • WI-TOD Park & Phase II Funding - $25M • DTSC Closure Letter — Phase I Remediation (Aug. 17 or 18) • Popular Annual Financial Report — 1st in City's History • All Homicides Solved for Previous 7 Years • CPR Save Rate - Increase from 6.7% in 2013 to 10.4% in 2014; 10.4% in 2015 • SAGE Project Completion • Joint Fire Academy with Chula Vista • Special Olympics World Games/South County Delegation • Camacho Gym & Municipal Pool Reopening Initiative • NCPD Educational Film: Every 15 Minutes • NCFD Fire Squad Concept Review • Public Works Roving Rain Team • Lockable Recycling Carts - EDCO Pilot Program • Storm Drain Grates • Reverse Angle Parking • Tree Trimming Grid Schedule & Tree Trimming Support Services • 5-Year CIP, Project Descriptions & Website • Paradise Creek Emergency Channel Maintenance • Urban Forest Management Plan • Homeless Outreach • Skate park Design Workshop with Youth Just Around the Corner • Body Worn Camera Project (Summer 2016) • Coffee with a Cop (May 2016) • Online Parking Permit Process (Summer 2016) • Prop. D Independent Oversight Committee (Fall 2016) • Property Maintenance & Rehab of Boarded Vacant Buildings (Summer 2016) AO Kudos Korner Kudos Korner is a place where we highlight the outstanding work by National City employees National City Core Values • Commitment • Courtesy • Collaboration • Communication • Customer Service cmo{a;nationalcityca.gov riF I Land Use IOWA • Amortization Noticing & Phase -Out • Downtown Specific Plan Update • Parking Management Plan • Port Integrated Planning • Marina District Balanced Plan • Bay Shore Bikeway Morale & Teambuilding • Employee Engagement Survey (2013 & 2016) • MEA & POA MOU's — Unanimous Votes • Employee Get-Togethers • Employee Wellness • New Vehicles & Equipment • Re -staffing & Internal Promotions • New Hires Add to the Mix! Next Chapter • RV Ordinance Outreach & Compliance • Economic Development In -House • RCS Radio Upgrade, Phase II • Percent for Art Program • Facility Needs Assessment Other Revenue & Funding • Grants totaling approx. $40 Million since January, 2015 including: • S8 Rental Assistance - $20M • Affordable Housing Sustainable Communities (Wi-Tod)- $9.2M • Paradise Creek Educational Park - $840,000 • Active Transportation (Ped & Bike Enhancements) - $3.9M • Smart Growth (Downtown Specific Plan & Westside Mobility) - $2.3M • Smart Growth (Wayfinding & Gateways) - $825,000 • Highway Safety Improvement Program (Traffic Signals /ADA) - $1.3M • WI-TOD Phase II Bond Revenue - $14.9M • Pre-2004 State Mandated Cost Reimbursement - $550,000 • ARTS Lease - Increased Rent & CIP Partnerships Alpha Project ARTS Live Well San Diego MediFit Community Services Ocean Connectors Southwestern College Special Olympics San Diego Urban Corps Quality Capital Projects Delivered over $34 Million in CIP's since January, 2015 including • 8th Street Smart Growth Revitalization (Harbor Ave to Highland Ave) - 8th Street Safety Enhancements (Highland Ave to Palm Ave) - Highland Avenue Safety Enhancements (Division St to 8th St) • Coolidge Avenue Safe Routes to School • Paradise Valley Road Safe Routes to School • 4th Street Community Corridor • D Ave Community Corridor • D Avenue / 12th Street Roundabout & War Memorial Renovation • AAvenue "Green" Street • Drainage Improvements • Bicycle Parking Enhancements • WI-TOD Site Infrastructure & Public Works Relocation National City Aquatic Center • Casa de Salud Improvements • Nutrition Center Improvements Library Upgrades (110 new public computers, increased broadband, RFID book delivery system, public safety cameras, new flooring, lighting, landscaping and amphitheater) Quality Capital Projects Over $15 Million in Capital Projects "In Construction" including • Kimball Park Improvements (new skate park, central plaza, restrooms, lighting, public safety cameras, ADA walking paths and landscaping) • El Toyon Park Improvements (new restrooms, lighting, public safety cameras, ADA upgrades and automated gates to allow for public parking on weekends) • Paradise Creek Enhancements • Plaza Boulevard Widening (Phase I — "N" Avenue to 1-805) • Downtown-Westside Community Connections (Phase III — Plaza & 14th St) • Council Chambers Improvements • Las Palmas Park Municipal Pool & Camacho Gym Improvements • Police Department Improvements (Police Department Property & Evidence Room, ADA upgrades, fire suppression system and waterproofing) • Fire Station 31 Improvements Redevelopment • Wind -Down Continues • Long Range Property Management Plan • ROP's Schedule • Redevelopment Reboot • Transfer SA Properties to City (May, 2016) • Oversight Board Consolidation (July, 2016) Super Stars • Live Well SD "Public Health Champion Award" (2015) • GFOA Certificate of Achievement for Excellence in Financial Reporting for FY14 (2015) • CSFMO Award for FY14 (2015) • GFOA Award for Outstanding Achievement in Popular Annual Financial Reporting for FY14 (2015) • Burn Institute Demo Derby "Top Fundraiser" Award (2015) • APA "Comprehensive Planning Award" Local & State (2015) • Police & Fire Championships — NCPD Gold Medal (2015) • ALA "Fight for Air" Award - 15t place (2015) • Institute of Transportation Engineers (ITE) "2014 Public Agency of the Year Award" • Circulate San Diego "2014 Innovator Award" • American Planning Association (APA) San Diego Chapter "2015 Comprehensive Planning Award: Small Jurisdiction" for SMART Foundation Plan • American Planning Association (APA) California Chapter "2015 Comprehensive Planning Award: Small Jurisdiction" for SMART Foundation Plan Super Stars • Women's Transportation Seminar (WTS) San Diego Chapter "2015 Innovative Transportation Solutions Award: Alternative Modes and Active Transportation" for Community Corridors Circulate San Diego "2015 San Diego Regional Walk Scorecard — Top Ranked City" • San Diego County Bicycle Coalition "2015 Golden Gear Award: Public Partner of the Year" • American Public Works Association (APWA) San Diego Chapter "2016 Project of the Year Award" for "A" Avenue Green Street • American Public Works Association (APWA) San Diego Chapter "2016 Honor Award" for 8th Street Smart Growth Revitalization • American Public Works Association (APWA) San Diego Chapter "2016 Honor Award" for Highland Avenue Safety Enhancements • American Public Works Association (APWA) San Diego Chapter "2016 Honor Award" for National City Community Corridors • American Society of Civil Engineers (ASCE) San Diego Section "2016 Project of the Year Award: Urban Design & Beautification` for 8th Street Smart Growth Revitalization • American Society of Civil Engineers (ASCE) San Diego Section "2016 Project of the Year Award: Sustainable Technologies" for Highland Avenue Safety Enhancements rig Teamwork Employee Teams • Green Street Tour (2015) • Use of Force Workshop/Citizens Academy (2/2015) (2/2016) • Public Safety Fair (2015 & 2016) • Rapid Field Response Team (2016) Community & Partners • Library Radio Frequency ID System Conversion (2014) • Community Service Day (2015 & 2016) • War Memorial Ad Hoc Committee (2015) • Special Olympics World Games - S. Bay Delegation (2015) Underway • Paramedic Contract Renewal • Citywide Phone Replacement • RCS Radio Update, Phase I • Website Enhancement • See -Click -Fix Online Citizen Reporting • Kimball Morgan Towers Rehab RFP • Paradise Creek Educational Park • Marina District Balanced Plan • Waterfront Adventure Center Management & Operation "ision Executing City Council's 2015-20 Strategic Plan 1. Provide Quality Services 2. Achieve Fiscal Sustainability 3. Improve Quality of Life 4. Enhance Housing & Community Assets 5. Promote a Healthy Community Wellness Community • CERT Team • Paradise Creek Revitalization • Live Well San Diego Initiative • Free Yoga Classes @ Library • Safe Routes to Schools MediFit operating Las Palmas Pool Employees • 90-Day Weight Loss Challenge • Wednesday Yoga Classes • Group Fitness Classes • 30 in 3 (walk/run 30 miles in 3 weeks) • Walking Club (Tues/Thurs) • 2016 NC Firefighters Wellness Challenge Fits t e DUNKIN' DONUTS U-HAUL Oi) sdccu.com. .--- i lit Y.'tzg te‘a*.+V i Li LlIssigli d's ISCOUNTS LAI FITNESS CARMaX 9 U U Fr-1 units Waterfront Adventure enter Under Construction ise Village Youth and Seniors • Casa de Salud Renovation, Expanded Hours & Enhanced Programming • Camacho Renovation & New Programming • Library's Computer Readiness Classes • New Skate Park • NCPD Explorer's Academy • NCFD Student Scholarships enith "Life is like riding a bicycle. To keep your balance you must keep moving." - Albert Einstein NATIONAL Cirry PRELIMINARY BUDGET Fiscal Year 2017 April 26, 2016 ^- CALIFORNIA NALT0.ONAL C�Tp ZNCOAPORATEO Mark Roberts Director of Finance 2 -411Fiter/e-r- N TIONALCITy .-;LEVATECT Progress Fiscal Years 2014-16 -- CALIFORNIA -- NikTiONAL CITT !_3J'l INCOpronATEn Capital Projects Fiscal Years 2014-16 Significant Capital Projects Completed: • 8th Street Smart Growth Revitalization • "A" Avenue Green Street • National City Aquatic Center • "D" Avenue Community Corridor, Roundabout, & War Memorial • Coolidge Ave Safe Routes to School Total value of (all) projects completed — $36,000,000 General Fund portion — $1,800,000 (5%) Average annual General Fund CIP budget: • FYs 14-16 — $2,400,000 • FYs 11-13 — $ 400,000 - CALIFORNIA NATIONAL C1fl 13,11 INCORPORATED Fleet Replacement Fiscal Years 2014-16 Vehicles purchased: Ladder truck (Fire) 1 Patrol vehicles (Police) 8 Street sweeper 1 Sewer maintenance truck 1 Evidence van (Police) 1 Light duty / other 36 Total 48 CALIFORNIA NATIONAL CITY 1 i /NCORPOR ATEn Fund Balance / Reserves General Fund Reserves: June 30, 2015 Contingency Reserve Unassigned Fund Balance Total June 30, 2012 Unassigned Fund Balance $ 9,086,0001 10,266,000 $ 19,351,000 $ 10,709,000 -CALIFORNIA -^ Fund Balance / Reserves Vehicle Replacement Reserve Fund (previously Equipment Replacement Fund): June 30, 2015 $ 3,666,000 June 30, 2012 $ 535,000 CALIFORNIA -- INCOP POP ATED - Staffing Changes General Fund FTEs: Fiscal Year 2016 Fiscal Year 2009 General Fund FTEs: Fiscal Year 2016 Fiscal Year 2009 265.26 308.11 365.10 416.45 Stacey Stevenson Administrative Services Director CALIFORNIA NATIONAL Clay 13 Ji -, INcORPOR ATtt, FY 2017 Budget Introduction Preliminary Budget • Economic Recovery • Operational Recovery — Labor — Capital Improvement Program (CIP) — Financial Sustainability —Reserves • Comparison of FY 16 adopted to FY 17 preliminary • Significant Drivers • Additional Discussion Points • Council Input/Direction 10 N TIONAL CiTir TrAre22,ATE;'' General Fund CALIFORNIA y- NATIONAL CITy 'NCORPOR ATF-D Strategic Plan Objective 2a 2. Achieve Fiscal Sustainability a) Prepare effective budget, accurately forecast funding sources .. . _- CALIFORNIA 1 J'i INCORPOR kTlR Proposition D / District General Fund Revenues Fiscal Year 2017 Estimated Revenues - $47.47M Other Revenue, 22% Property Tax in Lieu of VLF, 12% Property Tax, 4% Tax, 23% Sales & Use Tax, 38% 13 CALIFORNIA -• NATIONAL CITY S>)L / [NCORPOPATZO General Fund Revenues FY 17 Preliminary vs FY 16 Adopted FY17 FY16 Preliminary Adopted Change Sales Tax $ 18, 041, 000 $ 14, 703, 370 $ 3,337,630 Proposition D / District Tax 10,898,000 10,216,000 682,000 Property Tax 2,130, 570 2,114, 005 16,565 Property Tax in Lieu of VLF 5,902,223 5,736,819 165,404 Property Tax in Lieu of Sales Tax - 3,255,629 (3,255,629) Other Revenue 10,497,344 9,819,717 677,627 Total $ 47,469,137 $ 45,845,540 $ 1,623,597 14 - CALIFORNIA -, NATIONAL CITY l 31/ =_=. INCORPORATE, ' General Fund Expenditures FY 17 Preliminary vs FY 16 Adopted FY 17 FY 16 Preliminary Adopted Change Personnel Services $ 35,036,136 $ 31,236,492 $ 3,799,643 Maintenance & Operations 6,088,633 5,375,196 713,437 Capital Outlay 252,777 130,147 122,630 Capital Improvements 1,900,000 2,125,000 (225,000) Alloc. Costs & Internal Svc. Chrgs 7,423,806 6,790,701 633,105 Transfers Out 2,420,839 2,207,761 213,078 Total $ 53,122,191 $ 47,865,297 $ 5,256,893 15 CALIFORNIA --• NATIONAL clip 2J'J INCORPORATED Preliminary General Fund Summary Fiscal Year 2017 Description City Council City Clerk City Manager City Attorney Non -Departmental City Treasurer Police Fire Engineering & Public Works Administrative Services * Community Development ** Housing, Grants & Asset Management Personnel Services $321,872 238,910 1,103,047 674,594 1,143,111 25,077 18,527,999 8,059,978 967,532 1,831,080 1,868,892 274,044 Alloc. Costs & Maintenance & Capital Internal Svc Operations Capital Outlay Improvement Chrgs $45,036 77,500 32,700 139,600 860,319 2,110 1,905,495 670,310 1,244,870 325,165 692,328 93,200 60,754 99,490 5,626 56,376 30,531 $137,903 58,440 129,634 69,864 1,900,000 55,000 18,738 3,322,875 1,161,683 909,860 419,916 1,130,751 9,142 Total Budget $504, 811 374,850 1,265,381 884,058 3,958,430 45,925 23,817,123 9,991,461 3,127,888 2,632,537 3,722,502 376,386 General Fund $35,036,136 $6,088,633 $252,777 $1,900,000 $7,423,806 $50,701,352 * Administrative Services: Finance, Human Resources, Risk Management ** Community Development: Community Services, Neighborhood Services, and Planning 16 CALIFORNIA NATIONAL L CJTV - 1.331 . INCORPO11A7V0 J General Fund Expenditures Fiscal Year 2017 Estimated Expenditures by Category - $ 50.70M* PI Capital Improvement 3.7 % Capital Outla 0.50% Maintenance & Operations 12.01% Alloc. Costs & Internal Chrgs 14.64% Personnel Services 69.10% 17 * Does not include Transfers Out. ^- CALIFORNIA -^ General Fund Percentage of Expenditures by Department - FY17 INCORPON ATEn Other Depts 33.3% Fire 19.7% Police 47.0% 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 18 CALIFORNIA w NATIONAL CITp t an-,/ =NCORpORATEO General Fund Transfers Out FY 17 Preliminary vs FY 16 Adopted FY 17 FY 16 From To Purpose Preliminary Adopted Change General Fund Library Fund Operating Support $ 1,139,689 $ 1,045,461 $ 94,228 General Fund Parks Maintenance Fund Operating Support 625,396 465,082 160,314 General Fund Nutrition Center Fund Operating Support 399,749 413,930 (14,181) General Fund Personnel Comp Fund Retiree Health Benefits 160,000 160,000 - General Fund Housing Choice Voucher Fund Operating Support 96,005 130,288 (34,283) Total (Net) General Fund Impact $ 2,420,839 $ 2,207,761 $ 206,078 19 CALIFORNIA --- NATIONAL CITY i a 3`i =� INCORPOI ATOP $65.0 - $60.0 — $55.0 - $50.0 - $45.0 0 $40.0 $35.0 $30.0 $25.0 $20.0 General Fund Revenue & Expenditure Forecast Revenues Less District Tax simm-Revenues w/ District Tax Expenditures 0 $15.0 off' O°' �O N`` N`1' t\t` ►�� `° �1 includes transfers out (no transfers -in) 431D3fOdd 20 CALIFORNIA -- NATIONAL CIS 1.331 INCOR POP AT ' Total Operating Budget FY 17 Preliminary vs FY 16 Adopted 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 FY 17 Preliminary $47,469,137 0 (50,701,352) (2,420,839) ($5,653,0534) FY 17 Preliminary $35,213,468 2,501,839 (38,526,135) (81,000) ($891,828) FY 16 Adopted $45,845,540 0 (45,657,536) (2,207,761) ($2,019,757) FY 16 Adopted $34,784,792 3,157,761 (38,627,352) (950,000) ($1,634,799) Change $1,623, 597 0 (5,043,815) (213,078) ($3,633,296) Change $428,676 (655,922) 101,217 869,000 $742,971 FY 17 FY 16 Preliminary Adopted Change $82,682,605 $80,630,332 $2,052,273 (89,227,486) (84,284,888) (4,942,598) ($6,544,881) ($3,654,556) ($2,890,324) 21 r- CALIFORNIA NATIONAL CITY :ln1 INCORPORAT£O Projected Changes in Fund Balance FYI6-FYI7 Unassigned Fund Bal., 6/30/15 $ 10,266,365 Projected FY 16 Change, 12/31 3,636,771 Projected Addl Fund Bal. Chg, 4/26 (3,848,387) Est. Unassigned Fund Bal., 6/30/16 $ 10,054,749 Est. FY 17 Use of Fund Bal. (5,653,053) Est. Unassigned Fund Bal., 6/30/17 $ 4,401,696 ^- CALIFORNIA Preliminary General Fund Summary Fiscal Year 2017 Capital Appropriations Capital Improvement Program ("CIP") $ 1,900,000 Capital Outlay 252,777 Planned Capital Use of Fund Balance $ 2,152,777 CALIFORNIA -w NATIONAL Cii _1JJ'I Preliminary General Fund Summary Fiscal Year 2017 Operating Budget (excl. CIP's & Capital Outlay) Total Revenues Operating Expenditures Transfers Out Operating Surplus/(Deficit) $47,469,137 (48,548,575) (2,420,839) ($3,500,277) - CALIFORNIA �. NkTIONAL CITY/ lNCOAPOA ATV', Ed Prendell Budget Analyst 25 Wit 67, NATIONAL CITY'XNCORPORATEt Total Budget Preliminary Total Budget NATIONAL fj}y /NCORTOR Fiscal Year 2017 Estimated Expenditures by Fund - $89.23M Library Fund Gas Taxes $1.97 All Other Fund $1.42— I Funds $4.62 • Sewer.Service Fund $6.83 • CDBG $0 $10.48 Internal Service Funds $11.58 Nutrition $0.84 General Fund $50.70 27 _cA,,FoRN.A_ Preliminary Total Budget NATIONALCITy Fiscal Year 2017 Estimated Expenditures by Category - $89.23M iai iNCOgTOPFTEO 11 Capital Improvement $2.43 Capital Outlay $1.71 \ Maintenance & Operations $30.52 Alloc. Costs & Internal Chrgs $11.36 Personnel Services $43.21 NivTioNAL ciry Significant Budget Changes Preliminary Fiscal Year 2017 vs Adopted Fiscal Year 2016 CALIFORNIA WA TONAL CITY lNCORPOAATE) Significant General Fund Changes FY 17 Preliminary vs FY 16 Adopted Additional Tax revenues anticipated* $ 1,623,597 Capital Improvements (225,000) Personnel Salaries 1,363,110 Pension contribution increases 1,045,927 Staffing Additions 247,355 FY17 MOU Increases 1,127,062 M&O: Las Palmas Pool Oper. Agreement 400,000 M&O: Police- Body Cameras Video Storage 50,000 * Sales, Property, & Related Taxes ** Amounts $50k or Tess 30 - CALIFORNIA - NATIONAL CJTy n ,31 'NCO/MOH ATTO Significant General Fund Changes FY 17 Preliminary vs FY 16 Adopted Capital Outlay: Fire Equipment (Defibrillators) 93,254 Internal Service Charges: Vehicle Lease Charge 175,592 Other Internal Service Charges 457,513 Other: (Personnel, M&O, Capital Outlay)** 309,002 * Sales, Property, & Related Taxes ** Amounts $50k or Tess 31 CALIFORNIA - NATTI.ONAL CITY tlaY iNCORPORATE0 Significant Non -General Fund Changes FY 17 Preliminary vs FY 16 Adopted Personnel Salaries 758,214 Maintenance & Operations (473,234) (778,050) Capital Outlay CIP (219,350) 611,203 Internal Service Charges & Alloc. Costs 32 CALIFORNIA -*- NATIONAL CITY 111,I INCORPORATE Vacancy Report Budgeted Vacancies* Unfunded Vacancies Total Vacancies * As of March 2016 15.00 49.75 64.75 33 CALIFORNIA NATIONAL CITY t1,1 INCOAPOR ATED Staffing Levels —All Funds FY 17 Proposed FY 16 Approved 369.10 365.10 Net Change 4.00 34 CALIFORNIA - NATIONAL CITY Fiscal Year 2017 Proposed Personnel Changes Fund FTE Amount General Fund 3.00 247,355 Library Fund 0.50 24,462 Facilities Maintenance 0.50 15,396 4.00 287,212 CALIFORNIA - NATIONAL CITY !JD/ fNCOaroukTED NEW POSITIONS Fiscal Year 2017 Proposed Personnel Changes Department Request Annual Salary Benefits Annual Compensation 70,161 Community Services 1.0 Recreation Center Supv 41,093 29,068 Housing, Grants & Asset Management 1.0 Community Development Specialist II 56,446 33,402 89,848 Police 1.0 Police Investigator 53,066 34,279 87,345 Engineering/Public Works 0.50 Custodian 13,910 1,486 15,396 Library 0.50 Librarian 23,582 880 24,462 Total $287,212 36 NATIONAL CHIT Decision Items -. CALIFORNIA - N &TIONAL CITY L J I INCORPOR ATV) General Fund Decision Items Staffing Additions* Homeless Service Contract Cable Casting Total * Maintenance Worker $64,582, Engineering & Public Works. $ 64,582 120,000 120,000 $ 304,582 38 C A LI.11.iiimii `-► NATIONAL CIT, MCOAPOR ATtn • Non -General Fund Decision Items Mgmt Info. Systems Tech. I, Information Technology Services $ 30,543 39 _LL1 ORN( NATIONALCI NCORPOg ATE Capital Improvement Program (CIP) ~CALIFORNIA* NATIONAL Ca ` _ 4vCOft T6D Steve Manganiello City Engineer 41 — CALIFORNIA —� NATIONAL CITE. INCORpon ATEP CIP Overview • "Sliding" five-year budgeting process used to identify, prioritize, and coordinate financing and timing of major public improvements • First year of five-year program represents "approved" capital budget, which is incorporated into City's annual budget • Projects programmed for subsequent years are for planning purposes only and do not receive expenditure authority • CIP presented to Planning Commission (PC) for General Plan Consistency Review prior to City Council budget adoption — Only new projects presented to PC each year, as "carry-over" projects previously deemed "consistent" with the General Plan do not require additional review unless there is a substantive change in project scope — Eight (8) new projects proposed for FY 2017 were presented to PC on April 18, 2016; PC determined (by unanimous vote) that all eight projects are consistent with the General Plan 42 CALIFORNIA N&TIONAL CITY r IW31 INCORPORATED ' CIP Categories • Infrastructure - streets, storm drains, sewer systems, street lighting, traffic signals and communications equipment, sidewalks and pedestrian curb ramps for Americans with Disabilities Act (ADA) compliance • 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 — Community parks and 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, gymnasium and aquatic center • Housing - site infrastructure for infill development projects that provide housing opportunities for individuals and families at all income levels 43 CALIFORNIA -- NATIONAL CfTY f s sll=� fNCORPOt1 ATE° CIP Project Evaluation • City staff develop project proposals based on needs assessments, community input, and adopted planning policies • CIP Committee reviews project proposals and provides recommendations to Planning Commission and City Council • Key criteria considered include: — Health & safety benefits — Community support — Project costs & schedule — Available funding — Consistency with the General Plan and adopted planning policies — On -going maintenance costs • CIP Committee also reviews proposals and provides recommendations on the Vehicle Fleet 44 CALIFORNIA $ LTIONAL CITY INCORPORATE. CIP Funding • With support of the Community and City Council, staff aggressively pursue Federal, State, and Regional grants to fund Capital Projects • Other 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 funding options, including review of capital / major maintenance reserve policies, is critical to ensuring fiscal sustainability 45 CALIFORNIA - NATIONAL OTT INCORPORATED FY 2017 Funding Request - Capital Projects Project Type Description (FY 2017) General Fund (001) Information Systems Maintenance Fund (629) Total CCTV Camera Video Storage Capacity Upgrades Infrastructure Upgrade closed-circuit television (CCTV) camera video storage capacity to facilitate compliance with the State's new 365 day operational video retention requirement $ - $ 150,000 $ 150,000 Communications Infrastructure Expansion Infrastructure Expand fiber optics infrastructure to enhance communications for new Public Works facility (726 W. 19th St), Kimball Senior Center (1221 "D" Ave) and George H. Waters Nutrition Center (1415 "D" Ave) $ - $ 150,000 $ 150,000 Drainage Improvements Infrastructure Repair and/or replace corrugated metal storm drain pipes and provide other high priority drainage improvements Citywide $ 500,000 $ 500,000 Street Resurfacing Infrastructure Citywide alley improvements $ 600,000 $ - $ 600,000 Traffic Monitoring / Safety Enhancements Infrastructure Provide Citywide traffic safety enhancements, ADA upgrades, data collection, grant match $ 450,000 $ - $ 450,000 Cell Phone Repeater Upgrades Facilities Upgrade cellphone repeaters to provide cellphone service to fortified areas in the lower level of City Hall $ - $ 75,000 $ 75,000 El Toyon Park Improvements Parks & Recreation New playground equipment with rubberized play area and ADA $ 175,000 $ - $ 175,000 Las Palmas Park Improvements Parks & Recreation New playground equipment with rubberized play area and ADA $ 175,000 $ - $ 175,000 Total $ 1,900,000 $ 375,000 $ 2,275,000 ` 6 CALIFORNIA NATIONAL airy INCOATOR ATV, FY 2017 Funding Request — Vehicle Fleet Enterprise Lease Program (Annual Payment - Existing Vehicles) FY 2017 Cost Funding Source $ 75,145 General Fund (001) 52,390 Parks Maintenance Fund (105) 25,785 Sewer Fund (125) 6,236 Section 8 (502) 16,877 Facilities Maintenance Fund # Vehicles 11 9 3 1 3 176,433 Total 27 Vehicle Type (Department) 4sedans (Police); 1 hybrid sedan (Building); 1 light -duty truck (Engineering); 2 light -duty trucks, 1 medium -duty truck and 1 hybrid sedan (Neighborhood Services); 1 passenger van (Community Services) Blight -duty trucks and 1 medium -duty truck (Public Works -Parks) 1 light -duty truck and 2 heavy-duty trucks (Public Works -Streets & Wastewater) 1 hybrid sedan (Section 8 Housing) 3 light -duty trucks (Public Works -Facilities) Equipment Replacement Reserve (Purchase Price w/Aftermarket Equipment - New Vehicles) * FY 2017 Cost Funding Source $ 1,074,320 General Fund (001) 100,260 Sewer Fund (125) # Vehicles Types 15 2 sedans and 9 full-size SUVs (Police); 1 front line specialty vehicle (Fire); 1 medium -duty truck (Public Works -Facilities); 1 medium -duty truck and 1 heavy-duty International 43004x2 dump truck (Public Works -Streets & Wastewater)** 1 1 heavy-duty truck (Public Works -Streets & Wastewater) 1,174,580 Total 16 * Reserve will be reimbursed through internal service charges by estimating the vehicle replacement costs over the life cycles ** Public Works heavy-duty international 4300 4x2 dump truck will be funded in part by Sewer Fund ($25,000) 47 CALIFORNIA -- NATIONAL OTT l3Ji tNCORPOR Al Grant Funding Grants Amount th Smart Growth Incentive Program (SGIP) Grant — 8 St (Trolley Station to Highland Ave) $2,000,000 Smart Growth Incentive Program (SGIP) Grant — Downtown-Westside Community Connections $2,000,000 Smart Growth Incentive Program (SGIP) Grant — Westside Pedestrian & Bicycle Enhancements $2,000,000 Smart Growth Incentive Program (SGIP) Grant — Downtown Specific Plan Update $320,000 Smart Growth Incentive Program (SGIP) Grant — Wayfinding Signage Program $825,000 San Diego Unified Port District CIP —Wayfinding Signage Program $250,000 San Diego Unified Port District CIP — National City Aquatic Center $4,633,110 Catalyst Grant — WI-TOD Project (Phase I) $500,000 EPA Grants (2 Total) — WI-TOD Project (Phase I) $400,000 Prop 84 Storm Water Grant — "A" Ave "Green" Street (8th St to Kimball Park) $2,500,000 Prop 84 Storm Water Grant — Kimball Park LID / Paradise Creek Restoration $1,876,153 Prop 84 Urban Greening Grant — Paradise Creek Educational Park $840,000 th Bicycle Transportation Account (BTA) Grant — 4 St (Roosevelt Ave to Harbison Ave) $355,500 Highway Safety Improvement Program (HSIP) Grant — 8th St (Highland Ave to Palm Ave) $900,000 Highway Safety Improvement Program (HSIP) Grant — Highland Ave (Division St to 8th St) $900,000 Highway Safety Improvement Program (HSIP) Grants (8 Total) — Traffic Signal Upgrades, ADA, Pedestrian & Bicycle Enhancements $3,582,930 Safe Routes to School (SRTS) Grant — Coolidge Ave $730,000 Safe Routes to School (SRTS) Grant — Roundabout at "D" Ave & 12th St $500,000 th Safe Routes to School (SRTS) Grant — 8 St (D Ave to Highland Ave) $450,000 Safe Routes to School (SRTS) Grant — Paradise Valley Rd (8th St to Plaza Blvd) $225,000 Safe Routes to School (SRTS) Grant — Citywide SRTS Education & Encouragement Program $500,000 th Active Transportation Program (ATP) Grant — 4 St (Roosevelt Ave to Harbison Ave) $450,000 Active Transportation Program (ATP) Grant — "D" Ave (Division St to 30th St) $600,000 Active Transportation Program (ATP) Grants (2 Total) — Citywide Bicycle Parking $100,000 Active Transportation Program (ATP) Grants (7 Total) — ADA, Pedestrian & Bicycle Enhancements (18th St, Division St, Euclid Ave, 1-805 Bike Corridor, Citywide SRTS) $5,004,000 Community Development Block Grant (CDBG) — Drainage Improvements $1 16,000 Community Development Block Grant (CDBG) — George H. Waters Nutrition Center $95,000 Grants Awarded = 42 Total $32,652,693 48 NA o)N L c r NCORPORATED Future Impacts - CALIFORNIA ... N lT10NAL CITY s .3i 7NCONPOA ATQn Future Impacts Fiscal Year 2017 and beyond • Pension Pre -Funding • Minimum Wage Increase • Deferred Maintenance • Aquatic Center —Operations (Estimated Cost) — Capital Outlay (Estimated Cost) • RCS Upgrade $200,000 160,000 $1,863,916 NATIoNAL etry NCORPORATED Reserve Policy Revision - Addition of Facilities Maintenance Reserve -- CALIFORNIA -- NATIONAL Orr INCORPORATED Facilities Maintenance Reserve City Council Policy 201. Maintenance of Reserve Funds Purpose "The City will establish reserves to strengthen its ability to withstand unexpected financial emergencies such as those that may result from national disasters, revenue shortfalls, or unanticipated expenditures of a non -recurring nature and to accumulate funds for large-scale purchases." 52 CALIFORNIA NATIONAL CITY 1. T 'NCORpOR ATHO Facilities Maintenance Reserve Proposed Addition: "Facilities Maintenance Reserve: an amount equal to between ten percent (1O%) and fifteen percent (15%) of the total initial value of the City's building assets. "Building assets" shall be defined as all permanent or nonpermanent structures constructed or installed to provide a workplace for City employees or house City assets and/or operations." 53 CALIFORNIA NATiOIT,1LpTV Facilities Maintenance Reserve CORPORATE Original Value and Range Calculation: Total original building value, as of June 30, 2015 $ 43,486,407 $ 4,348,641 10% 15% $ 6,522,961 54 CALIFORNIA IA� —= T, Facilities• • Maintenance Reserve conronATE Sources of Initial Funding: Library Fund Parks Maintenance Fund Nutrition Fund Facilities Maintenance Fund Information Systems Maint. Fund Motor Vehicle Service Fund Total $ 126,000 103,500 171,000 360,000 1,080,000 810,000 $ 2,650,500 55 NkTONAL Cflilv�}ee NCORPORATE Development of Budget Ordinance CALIFORNIA - NATIONAL Ci Y !J3'1 INCORPOR ATV) Budget Ordinance Elements • Codification of City fiscal year. • Timeframe & guidelines for delivery of preliminary proposed budget to the City Council. • Budget adoption timeframe. • Balanced budget requirement • Requirement that budgets address debt service & other legally binding contractual obligations of the City. 57 CALIFORNIA �. NATIONAL CITY lNCOAPON ATE Budget Ordinance Elements • Codification of City Council's authority (only) to increase the total appropriation of any fund. • Appropriations limit. • Requirement for inclusion of funding sources. • Provision for delegation of authority &Ior duties. 41110lwr; NAM a NAL env aBsv Next Steps .... CALIFORNIA -^ NATIONAL Cl �- 13 3 , INCORPORATED Next Steps • Additional staff review and refinement • Council -directed budget adjustments (if necessary) • Neighborhood Council Budget Presentations (May 4th, 12t", and 18t") • Tentative Council Workshop, i.e., if needed (May 24th) • Adopt final budget June 7, 2016 60 CALIFORNIA NATIONAL CITY I/ Request for Direction Staff seeks direction on: — Revisions to the preliminary budget — Second budget workshop, 5:00 pm on May 24th (if necessary) — Additional Council priorities, staffing, or programmatic adjustments. 61 NATI NAL CITXNCORPORATII Public Comments 62 Comments/Questions NATIONAL etry INCORPORATED Request for Direction 64