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Home My WebLink About2018 05-08 CC MINBook 100 / Page 85 05-08-2018 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY BUDGET WORKSHOP / FISCAL YEAR 2019 BUDGET PRESENTATION May 8, 2018 The Special Meeting of the City Council of the City of National City was called to order at 5:06 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, Morris -Jones, Parra, Raulston, Roberts, Rodriguez, Vergara, Williams. PLEDGE OF ALLEGIANCE TO THE FLAG BY MAYOR RON MORRISON PUBLIC COMMENT Alicia Sanchez, National City, spoke in support of continued funding for amortization. Larry Emerson, National City, encouraged the City to take full advantage of available funding for electric vehicle purchases and discussed pending State legislation for transportation and infrastructure funding. INTRODUCTION City Manager Leslie Deese gave opening remarks and outlined the order of presentations that would be made by City Staff. PRESENTATIONS Staff Presentations were made by Deputy City Manager Brad Raulston, Finance Director Mark Roberts, Economic Development Specialist Megan Gamwell, and City Engineer Steve Manganiello, on the below listed topics: • Fiscal Year 2018 3rd Quarter Review • Fiscal Year 2019 Preliminary Budget a. General Fund Budget Summary b. Total Budget Summary c. Significant Budgetary Impacts d. Other Potential Impacts e. Capital Improvement Program • Future Impacts • Next Steps • Closing Comments & Request for Direction NOTE: All presentation materials are attached as Exhibit "A" Book 100 / Page 86 05-08-2018 CITY COUNCIL COMMENTS AND DIRECTION Member Cano suggested highlighting the budget deficit so that it is focused on more closely. Member Sotelo-Solis expressed her support for continued funding of at least $50,000 for amortization; Option A regarding the nutrition and Aquatic centers; pursuing Economic Development projects similar to Plaza Mexico in Los Angeles; looking into the City's fee, and taking a long term look at cannabis issues. Member Mendivil expressed his support and encouragement for continuing efforts in areas dealing with Economic Development. Member Rios expressed support for Option No. 1 for the five-year Capital Improvement Program (CIP) budget regarding vehicle fleet funding, the proposal regarding operation of the Aquatic Center and Economic Development efforts to attract businesses. Mayor Morrison suggested the possibility of increased Paramedic service to decrease use of fire trucks, supported the need to pursue different revenue sources due to declining retail sales, encouraging a mixture of housing choices in the City and being business friendly. Mayor Morrison said he would like to eliminate the $50,000 funding for the Chamber of Commerce. City Attorney Morris -Jones suggested a second Budget Workshop be held on May 29th to take action and give direction on the specific items that were discussed. CLOSED SESSION Members retired into Closed Session at 7:29 p.m. Conference with Legal Counsel — Threatened Litigation Threat of Litigation Pursuant to Government Code Section 54956.9(d)(2) One Potential Case The meeting reconvened at 7:34 p.m. All members were present. CLOSED SESSION REPORT City Attorney Angil Morris -Jones reported that the City Council gave authorization to take action as recommended by a 4 to 0 vote with one member absent. ADJOURNMENT Motion by Sotelo-Solis, seconded by Rios, 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 15, 2018 at 6:00 p.m. at the Council Chambers, National City, California. Carried by unanimous vote. Next Regular City Council Meeting: Tuesday, May 15, 2018, 6:00 p.m., City Council Chambers, Civic Center — National City, California. Book 100 / Page 87 05-08-2018 ADJOURNMENT (cont.) The meeting closed at 7:35 p.m. The foregoing minutes were approved at the Regular Meeting of February 19, 2019. Book 100 / Page 88 05-08-2018 THIS PAGE IS INTENTIONALLY LEFT BLANK 5/9/2018 0-- CALIFORNIA ^- sivrioNAwnt �CORp PRELIMINARY BUDGET Fiscal Year 2019 May 08, 2018 EXHIBIT 'A' 1 5/9/2018 NATIONAL CITY lazy/ Fiscal Year 2019 Preliminary Budget Overview Personnel Cost Assumptions - Maintains existing compensation for employees - Includes increased UAAL and normal cost payments to CalPERS per valuation report - 8% increase in the City paid portion of health insurance premiums beginning February 2019 Maintenance & Operations Costs - Amounts are reasonable given known circumstances Capital Improvements - Includes the minimum amount of funding from the General Fund to meet the maintenance of effort requirements to receive TRANSNET and SB1 allocations for roadway improvements Revenues - Amounts reflect analysis by both staff and outside consultants and are as realistic as possible - Will be updated as more data becomes available 3 NATION1,1��. General Fund 4 2 5/9/2018 NATLONAL CITY .175 Unassigned Fund Balance General Fund Fund balance, 6/30/17 Projected use of fund bal., FY 18 mid-yr Projected fund balance, 6/30/18 $11,903,272 (3,911,998) $7,991,274 NATIONAL airy Preliminary Budget Summary Fiscal Year 2019 General Fund Total Revenues Transfer(s) In Operating Expenditures Transfer(s) Out $54,426,792 6,000 (58,537,283) (2,364,473) Surplus/(Deficit) ($ 6,468,964)* • Includes the use of $400,000 of commilled fund balance from the Facilities Maintenance Reserve. 6 3 5/9/2018 NATIIONALUTY Projected Change in Unassigned Fund Balance — Fiscal Year 2019 General Fund Projected fund balance, 6/30/18 $ 7,991,274 Estimated use of fund bal., FY19 preliminary budget (6,068,964) Estimated fund balance, 6/30/19 $ 1,922,310 NATIONAI.arp �1Jil'!�1 Revenues FY 19 Preliminary vs FY 18 Adopted General Fund FY19 FY18 Preliminary Adopted Change Sales Tax $18,204,172 $18,627,564 ($423,392) Proposition D / District Tax 11,370,844 11,507,650 (136,806) Property Tax 2,146,711 2,089,761 $56,950 Property Tax in Lieu of VLF 6,661,664 6,220,229 $441,435 Other Revenue 16,043,401 $14,599,335 $1,444,066 Total $54,426,792 $53,044,539 $1,382,253 8 4 5/9/2018 NATIONAL CITY sat — Revenues Fiscal Year 2019 General Fund — Estimated Revenues - $54.43M Other Revenue 29% Property Tax in Lieu of VLF 12% • Property Tax 4% ' Does not include Transfers In. Sales Tax 33% Proposition D 1 District Tax 21% 11 Expenditures NATIONAL CITY FY 19 Preliminary vs FY 18 Adopted General Fund FY 19 FY 18 Preliminary Adopted Change Personnel Services $38,192,300 $37,300,344 $891,956 Maintenance & Operations 7,377,973 6,437,584 940,389 Capital Outlay 113,508 137,594 (24,086) Capital Improvement 5,000,000 2,900,000 2,100,000 Internal Service Charges 7,853,502 8,031,978 (178,476) Total $58,537,283 $54,807,500 $3,729,783 10 5 5/9/2018 NATIONAL CITp 1101 Expenditures Fiscal Year 2019 General Fund — Estimated Expenditure by Category-$58.54M* Capital Outlay 0.19% • Capital Improvement 8.54% Maintenance & Operations 12.60% Does not tnclutle Transfers Out. Internal Service Charges 13.42% Personnel Services 65.24% 11 NAT1ONALimp 18J'I Percentage of Expenditures by Department — Fiscal Year 2019 General Fund Police Fire Other Depts • City Council • City Clerk • City Treasurer • City Manager • City Attorney • Community Services • Engineering & Public Works • Finance • Housing & Economic Development • Human Resources • Neighborhood Services • Planning • Non -Departmental 12 6 5/9/2018 NAT10NAL CITr From Mile of Cars LMD Transfer(s) In FY 19 Preliminary vs FY 18 Adopted FY 19 FY 18 To Purpose Preliminary Adopted Change General Fund Administrative Transfer 6,000 5,500 500 Plan Checking Revolving Fund General Fund Administrative Transfer Total (Net) General Fund Impact 0 250,000 (250,000) $6,000 $5,500 ($249,500) 13 NATIONAL CITY FY 19 Preliminary vs FY 18 Adopted Transfer(s) Out FY19 FY18 From To Purpose Preliminary Adopted Change General Fund Library Fund Operating Subsidy 51,111,771 5801,431 5310,340 General Fund Parks Maintenance Fund Operating Subsidy 814,738 834,940 (20,204) General Fund Nutrition Center Fund Operating Subsidy 382,101 442,588 (60,487) General Fund Post -Employment Benefits Fund Retiree Health Benefits 197.580 186.350 11.230 General Fund Housing Choice Voucher Fund Operating Subsidy 58,285 0 58,285 General Fund Irrevocable Supplemental Pension Trust Pension Trust Contribution 0 894,787 894,767 Total Transfers In 52,364,473 $2,960,076 91,193,931 14 7 5/9/2018 NATIONAL CIfl Budget Summary FY 19 Preliminary vs FY 18 Adopted FY 19 FY18 Preliminary Adopted Change Total Revenues $54,426,792 $53,044,539 $1,382,253 Transfer(s) In 6,000 255,500 (249,500) Operating & Capital Expenditures (58,537,283)* (54,807,501) (3,729,782) Transfer(s)Out (2,364,473) (2,960,076) 595,603 Total ($6,468,964) ($4,467,538) ($2,001,426) • Includes the use of $400,000 of committed fund balance (Facilities Maintenance Reserve). 15 NATIONAL Clry Projected Change in Unassigned Fund Balance — Fiscal Year 2019 General Fund Fund Balance, 6/30/17 Projected Use of Fund Bal., FY18 Mid -Year Projected Fund Balance, 6/30/2018 Estimated Use of Fund Balance, FY18 Preliminary Budget Estimated Fund Balance, 6/30/2019 Deficit Spending, FY19 Preliminary Budget: Estimated Use of Fund Balance 1-time Capital Spending (Non -Offset Expenses) Estimated Structural Deficit $11,903,272 (3,911,998) 7,991,274 (6,068,964) $1,922,310 $6,068,964 (1,000,000) $5,068,964 16 8 5/9/2018 +}- CALIFORNIA �+ NATIONAL cn IN� I aR313CORPORA'tED - Total Budget 17 NATIONAL CITy - Total Operating & Capital Budget FY 19 Preliminary vs FY 18 Adopted FY 19 FY 18 Preliminary Adopted Change General Fund Revenues $54,426,792 $53,044,539 $1,382,253 Transfer(s) In $6,000 $255.500 (249,500) Expenditures (58,537,283) (54.807,500) (3,729,783) Transfer(s)Out (2,364,473) (2,960,076) 595,603 Projected Use of Fund Balance * ($6,468,964) ($4,467,537) ($2,001,427) Other Funds Revenues $38,384,898 $37,501,775 $883,123 Transfer(s) In $3,014,473 $3,940,519 (926.046) Other Fund Expenditures (42,303.853) (41,508,908) (794,945) Transfer(s)Out (656,000) (1,235,943) 579,943 Projected Fund Balance Change - Other Funds ($1,560,482) ($1,302,557) ($257,925) Revenues -All Funds Expenditures - All Funds Projected Fund Balance Change • All Funds Tranaferla) In/Out for all funds equal Inert $0 • Includes the uee of $400.000 of committed fund balance (Facilites Maintenance Reserve). $92,811,690 (100,841.1361 ($8,029,446) $90,546,314 $2,265.376 (96.316.4081 (4,524,728) ($5,770,094) ($2,259,352) 18 9 5/9/2018 NATIONAL CITY 1231 Preliminary Total Budget Fiscal Year 2019 Estimated Expenditures by Fund - $100.84M Proposition "A" Fund 51.07 T CDBG Fund $0.90 • Sewer Service Fund $7.9 • Gas Taxes Fund $2.43 • Parks Maintenance Fund $1.56 • All Other Funds 52.97 Internal Servkes Fund $12.02 Housing Choice Voucher Fund $11.50 • Library Fund $1.94 General Fund $58.54 19 NATIONAL CITY Preliminary Total Budget Fiscal Year 2019 Estimated Expenditures by Category - $100.84M CaynaI Outlay Allocated Cost & Internal Service Charges Capital Improvement $10.06 $7.28 Maintenance& Operations $34.56 Personnelservices $46.49 20 10 5/9/2018 0-- CALIFORNIA - NATIONAL CITY gi3£3+J *CO8PORAf D Expenditure Changes Preliminary Fiscal Year 2019 vs Adopted Fiscal Year 2018 21 NATIONAL CCITT Expenditures FY 19 Preliminary vs FY 18 Adopted General Fund FY 19 FY 18 Preliminary Adopted Change Personnel Services $38,192,300 $37,300,344 $891,956 Maintenance & Operations 7,377,973 6,437,584 940,389 Capital Outlay 113,508 137,594 (24,086) Capital Improvement 5,000,000 2,900,000 2,100,000 Internal Service Charges 7,853,502 8,031,978 (178,476) Total $58,537,283 $54,807,500 $3,729,783 22 11 5/9/2018 Expenditure Changes General Fund Personnel Expenditure Category • Change from Adopted FY 18 Salaries $ (52,900) Overtime 577,300 Differential Pay 121,700 Health Insurance 60,200 Pension Contribution Increase 143,200 All Other 42,500 Total Personnel Changes $ 892,000 23 Expenditure Changes General Fund Maintenance & Operations Expenditure Category Government Purposes: City Clerk Elections Professional Services Emergency Animal Treatment Police Facility Lease (NCJPFA-debt service) Contract Services Agency Contributions Other M&O Changes Total Maintenance & Operations Changes Change from Adopted FY 18 $ 50,600 335,800 148,500 (497,400) 626,300 - 100,400 176,200 $ 940,400' 24 12 5/9/2018 *Amman, Expenditure Changes General Fund Capital Outlay & Capital Improvement Expenditure Category Change from Adopted FY 18 Capital Outlay Furniture & Furnishings $ 16,900 Automotive Leases (11,000) Communications Equipment (30,000) Total Capital Outlay Changes (24,100) Capital Improvements Paradise Creek Environmental Remediation Storm Drain Improvements Traffic Monitoring/System Improvements Tier 1 (urgent needs) Facilities Upgrades Total Capital Improvements Changes $ 1,600,000 100,000 400,000 $ 2,100,000 25 tilkilattCar General Fund Expenditure Category Expenditure Changes Internal Services Charges Vehicle Services Charges Vehicle Lease Charge Information System Maintenance Charge Building Services Charges Insurance Charges Total Changes - Int. Serv. Charges Change from Adopted FY 18 $ (241,000) 285,500 (276,500) 157,200 (103,700) $ (178,500) 26 13 5/9/2018 0I�NI _. NATII A Z'Y Reserves / Fund Balances 27 NATIONAL CITY As of 6/30/17 General Fund Contingency Reserve Facilities Maintenance Reserve* Unassigned Fund Balance Total Target $12,738,462 5,671,217 11,903,372 $30,313,051 Balance $ 9,085,066 2,500,000 11,903,372 $23,488,438 'On May 1. 2018. $500.000 of the Facilities Maintenance Reserve was approved for Tier 1 capital needs, leaving an available balance of $2M. 28 14 5/9/2018 NA770NALCITY As of 6/30/17 Other Funds Gas Taxes Fund Reserve Sewer Services Fund Reserve Liability Insurance Reserve Workers' Compensation Reserve Debt Service Reserve Vehicle Replacement Reserve Target Balance $61,417 $25,376 349,135 349,135 2,435,000 1,913,000 9,097,000 7,581,000 1,634,088 1,021,467 $5,800,514 $1,622,958 29 CALIFORNIA NATIONAL CITY NCORPORA2E� Deficit Spending General Fund 30 15 5/9/2018 Deficit Spending General Fund Total Estimated Use of General Fund Fund Balance - FY 19 Preliminary Budget $ 6,468,964 Use is split between unassigned and commited as shown below: Unassigned Fund Balance at 6/30/17 $ 11,903,272 Less: Projected Use of Fund Balance, FY18 Mid -Year (3.911.9981. Projected Unassigned Fund Balance at 6/30/18 7,991,274 Less: Estimated Use of Fund Balance in FY19 Preliminary Budget (6.068.9641 Estimated Unassigned Fund Balance at 6/30/19 $ 1,922,310 Committed Fund Balance - Facilities Maintenance Reserve at 6/30/17 $ 2,500,000 Less: Projected Use of Fund Balance at FY18 Mid -Year Review $ (500.0001 Projected Committed Fund Balance - Facilities Maintenance Reserve at 6/30/18 $ 2,000,000 Less: Estimated Use of Fund Balance in FY19 Preliminary Budget $ (400.0001 Estimated Committed Fund Balance - Facilities Maintenance Reserve, 6/30/19 $ 1,600,000 Structural vs Non -Structural Deficit: Estimated Use of Unassigned Fund Balance, FY19 Preliminary Budget Less: One-time Capital Spending (Non -Revenue Offset Expenses) Equals: Estimated Structural Deficit $ 6,068,964 (1.000.0001 $ 5,068,964 31 `LIFORN(A NKTIONA, ITY Capital Improvement Program (CIP) 32 16 5/9/2018 NATIONAL CITY 7.J7 �. Steve Manganiello City Engineer 33 5-Year Capital Improvement NATIONAL a/ Program (FY 2019 - FY 2023) FY 2019 Project Funding Request Protect TYPO Description' Gen rail Fund (001) General Fund Reimbursable (001) Facilities Maintenance Reserve (001) Information syeteme Maintenance Fund (02a) Total Communications Infrastructure Expend fiber Optics Idresbuctue k enhance nfros8uclure Expansion communications. replace existing cameras that are 8I9-409.500.598d039) no longer operational and/or require upgrades; install new cameras and aascoiM6d Infrastructure 6 5 S 6 700.000 S 200.000 )rainage Improvements Infrastructure Replace corrugated metal etam direr pipes end 001-409-500-598.7049( provide other high priority drainage improvements Citywide S 200.000 S - S . S - S 200,000 Vfamo Monhahtg I Safety Infrastructure Provide sar0ue infrastructure I mwovamanis to Enhancements National Guys transportation network to enhance 001d09-500-598d5731 safety and access for all uses. provde tranapatation planning. traffic data collection, analysis and repaeng. traffic safely evaluations. and ADA compliance. funding serves as kcal etch for lager regional. State and/or Federal transportation final projects and contributes to Nauonai Cays maintenance of effort fa recent of local Prop A TaansN.4 funding and Stale Gas Tax Road Maintenance and Reh6ihtatlon Accaml (RMRA) funding through Senate Bell I $ 000.000 $ - S - 9 9 800A00 'aced.. Upgrades - Tie Infrastructure TIN 1 projects ere defined as `Urgent.' based on 1 Praisers public health and safety projectc for FY 2019 001-409-500-508-1500) Include electrical system upgrades and new service erections la las Palmas Municipal Pod and Canted. Recreation Center 6 - $ - $ 400.000 1 ..... . 'mediae Creek Perk Site Perks 8 Recreation Provide site remedlation, grading and ianedietlon infrastructure improvements to construct a new 001-409•500-598-1597) approximately 4-acre Community Pak with ...Iles on the west side 00 Paradise Creek between W. 22nd Street and W. 19th Street, General Fund will be reimbursed through the Recognized 0Mt9aeon Payment Schedule (R0P5) S . 6 3.600.000 S - S - 6 0.600rru, total i 1.000.000 i 0.600.000 1 100.000 6 200.000 S 6.000.000 Refer to individual project summary sheets for details on project improvements, budgets and funding sources. 17 5/9/2018 ,>p 5-Year Capital Improvement oNmxrProgram (FY 2019 - FY 2023) FY 2019 Project Appropriations Gaa Tax Fund Prop404 Fund Prole. Type Description (109P (3021' Total Safe Routes to School Infrastructure Projects include various infreslruclure a $ 188,000 $ 188,000 Pedestrian and Bicycle Improvements Citywide to enhance acce.and Safely Enhancements safety for children walking and biking to$.coal W5088108) Street Resurfacing Infrastructure Projects include ammbineton of roadway $ 1.010.45e $ 100.000 $ 1,110,450 100-400500.568-6035) rebabilitatian,grinding end overiey, slurry seals 30]<005005006035) and resiriping oftat.. pa...4 oNer Improvements Include removatand replacement of damaged or fined sidewalks end substandard pedestrian curb ramps for SOS compliance TmfncSignal Upgrades Infra..ure Projects include various upgrades and $ .s 800,000 $ 000,000 05005000558) modifications. traffic signals and associated • frastrneure/ equlpmentcity0Ada.I0 enhance traffic safety and operations Total $ 1,018.45e $ 1,0..000 $ 2,0e2,458 Refer.Individual protect summary sheets for details on project impmvemenis, budgets and fulling sources. Gas Tax Fund -FY2010 Road Melntenance and Rebabllitatlan Account(RMRA) funding through Senate Bill 1; City Council approved project appropriations for FY2019 on April 07. 2018 through adoption of city Council Resolution ]010'5T. Proposition -A" Fund -FY 2019 TmnsNet Loral Street Improvement Program of Projects for National City for Inclusion in the 2018 Regional Trens.daUon Improvement Program; City Council approved project appropriations for FY 2019 on April 3, 2018.rougb adoption of City Council Resolution 2018-49. 35 5-Year Capital Improvement Program (FY 2019 - FY 2023) I FY 2019 Vehicle Fleet Funding Request En(orri. Lee. Program -Existing Vehicles FY 2010 Automotive Lease payments from General Fund and Parke Maintenance Fund (account FM) 0I urohe. through City Financing- Existing Vehicles/Equipment FY 201Replacement payments from Ca oral Fund( cc.. h251)' $]$2,0]6 rough fig- New Vehicles/Eghipmen City Fhianp Replacement FY201GVehicl =PmenlsiromGe c u M1a]50,000 eralFune (cwu ]517 p pVelrcl lr e(FirenlDe ant) $Mnua02,500 $ 1Gmengine (Fim) $ 02,200 $ ' 405.000 8 3 sedans and 3lulhsize SUVs(Police-Petrol) $, 18,500 $ 150,000 1 1.250 utility body specialty truck (Police -Traffic) $ 43,107 $ 350,000 2 2F-450 specialty trucks(orireflic painting (Public Works411991s) ' 3 11,100 $ 00,000' 1 1F350 stake bed truck (Public Works -Facilities) $' $ $ $ ]0.000 2 501ight-dulytmck(PublI4 Works -Facilities) 2 utility Vans (Public Works-Facilites) $1,850 S_ 82,000 2 2electric.dans(Ergineering/Public Work1Pool) crate miner (Public Works -Streets) $ 285.483 $ • 1,082,000 17 T_obl Flee(- Existing Total,2010V and NewVehkles/ Equipment bicle Replacement and Automo ve Lease pa men. from General Fund' $ t, ' Pro*. FY2010 dra gs$ based on Annual Leese Payments horn General Fund (Fcnd001) to Vehicle Replacement Fund ( Fur d049) throaghinlemal service eslimeling the vehicle / equipment replacement rods over the. cycles -3E- 18 5/9/2018 NATIONAL 5-Year Capital Improvement City � ' Program (FY 2019 - FY 2023) FY 2019 Vehicle Fleet Funding Request (Option B) Enterprise Lease Program • Existing Vehicles FY 2019 Automotive Lease payments from General Fund and Parks Maintenance Fund (account #514 $ 126.429 Purchase through City Financing - Existing Vehicles / Equipment FY 2019 Vehicle Replacement payments from General Fund (account #751)' $ 732.076 I Purchase through City Financing - New Vehicles / Equipment FY 2019 Vehicle Replacement payments from General Fund jaccount #751)' Annual Cost Purchase Price # Vehicles Vehicle Description (Department) $ 97,200 $ 405.000 6 3 sedans and 3 full-size SUVs (Police -Patrol) $ 18,500 $ 150,000 1 1 F-250 utility body specialty truck (Police -Traffic) $ 11,100 $ 90.000 1 1 F-350 stake bed truck (Public Works -Facilities) $ 4,933 $ 40.000 1 1 F-150 light -duty truck (Public Works -Facilities) $ 7,467 $ 70,000 2 2 utility vans (Public Works -Facilities) $ 8,747 $ 82,000 2 2 electric sedans (Engineering/Public Works -Pool) $ 1,850 $ 15,000 1 1 concrete mixer(Public Works -Streets) $ 149,797 $ 852.000 14 Total Fleet • Existing and New Vehicles /Equipment Total FY 2019 Vehicle Replacement and Automotive Lease payments from General Fund $ 1,008,302 ' Projected FY 2019 Annual Lease Payments from General Fund (Fund 001) to Vehicle Replacement Fund (Fund 644) through internal service charges based on estimating the vehicle / equipment replacement costs over the life cycles 37 ll✓/ O�LIFORWL3 .sue . Future Impacts 38 19 5/9/2018 sitiori4iLCirr Future Impacts Pension costs Deferred maintenance & financing State -mandated minimum wage increase Energy & Water Savings Labor Negotiations Fee analysis & other revenue generating strategies Economic Development 39 TiATIO NA an Megan Gamwell Economic Development Specialist 40 20 5/9/2018 Economic Development Update 41 Economic Development Updates Retail Recruitment Together We Can Update Policy Changes Tourism Promotion 21 5/9/2018 >- CALIFORNIA -d J. INCOAPORATED Downtown National City Plaza Boulevard Bay Marina & Cleveland Mile of Cars Sweetwater South Bay Marketplace Westfield Plaza Bonita 44 22 5/9/2018 Retail Assessment Examined the National City retail environment to assist in future growth & revenue possibilities Examined sales tax revenues over a five-year period (2011-2016) Major Industry Groups Per Capita Analysis Retailer & Restaurant Performance 45 Average Sales s's Per Capita Sales Dollars Per Capita Growth (2011-2016) By Major Industry Group Food & Drugs Fuel & Service Stations General Consumer Goods Restaurants & Hotels 46 23 5/9/2018 Average Sales s's Per Capita Sales $ Per Capita - 2016 $25,834 $14,817 $14,545 ■ National City ■ California ■ San Diego County Sales $ Per Capita Growth (2011-2016) National City San Diego County California 26% 14% 17% 47 Revenue Growth (2011 - 2016) 31% 20% 23% National City San Diego California County 4 is 24 tlamAa'g� : aid^^ �,. 2 RRE.Akga @r$�z Iti r& IiIihi1iiI{iiflhiililtiilflhi 1 1 � ns 5/9/2018 Signage and Facade Improvement AROW Program Adopt -a -Place Program 26 5/9/2018 27 5/9/2018 Zhr.au Dim Uninn. ribunc National City rolls out program to help spruce up storefronts TOGETHER WE CAN PROGRAM 28 5/9/2018 Ai NATIONAL CITY UNVEILS A NEW SIGN ON NATIONAL CITY BLVD AND STH ST POLICY CHANGES • Tasting Room and Brewery ordinance update • Removal of Artistic Murals from signage ordinance 29 5/9/2018 Tourism Promotion The primary focus for the tourism initiative is to bring visitors to National City, and increase room night stays through the direct funding of contractors for various events and programs. Funding may be requested through an annual application process. A funding theme will be set each year. Themes may include • Sports Tourism • Cultural Tourism • Arts and Culture Tourism apLIFORNIA -- Ni TfONAI.L Cfl r xNCOHPOR.„ Next Steps 30 5/9/2018 M44..0 -NATIONAtern Next Steps Council -directed budget adjustments (if necessary) Additional staff review and adjustments Budget workshop, if needed (May 29th) Budget adoption June 19th 61 Next Steps Potential Deficit Reduction Measures Capital Projects Camera replacement & related work Capital Outlay Vehicles Furniture $ 200,000 $ 285,500 $ 24,600 Housing Choice Voucher Program support $ 58,300 Nutrition Center support $ 382,100 Aquatic Center management $ 380,000 Maintenance & Operations (misc. potential reductions) $ 400,000 Total $ 1,730,500 62 31 5/9/2018' > a 5-Year Capital Improvement Program (FY 2019.- FY 2023) FY 2019 Vehicle Fleet Funding Request (Option B) - Enterprise Lease Program - Erlsling Vehicles • FY 2019 Automotive Lease payments from General Fund and Parks Maintenance Fund (account 65121 $ 126,429I - .. . Purchase through City Financing- Existing Vehicles /Equipment •FY 2019 Vehicle Replacement payments from General Fund (account (i751)" $ 732,076 Purchase through City Financ ng- New Vehkles/Equipment _ - -. - FY 2019 vehlcl Replacement )aymenls from General Fundjaccount #751)" . . Annual Cost Purchase Price -9 Vehicles Vehicle Description (Departnent)- $ 97,206 $ 405,000 6 . 3 sedans and 3 full-size SUVs (Pollee -Patrol) $- 18,500 $ 150,000 1 ' 1 F-250 utility body specialty. truck (Police -Trot e) $ 11,100 $ 90,000 1 1 F-350 stake bed truck (Public Works-Facilites) . $ 4,933 $ 40,000 1. • 1 F•150 llght•duty truck (Public Works -Facilities) $ 7,467 $ 70,000 . 2 . _ 2 utility vans (Public Works -Facilities). $ 8,747 $ 82,000 _ 2 2 electric sedans (Engineering/Public Works -Pool) $ 1,850 $ 15,000 1 I concrete mixer (Public Works -Streets) $ 149,797 $ . 852,000 14 , Total Fleet- Existing and New Vehicles /Equipment -. • Total FY 2019 Vehicle Replacement and Automotive Lease payments from General Fund. $ 1,006,362 • - - - • Projected FY 2019 Annual Lease Payments from General Fund (Fund 001) to Vehicle Replacement Fund (Fund 644) through Internal service charges based on estimating the vehicle /equipment replacement costs aver the fife cycles , ' 63 • Request for -Direction Staff seeks direction on: • ,Revisions to the preliminary budget • Additional Council adjustments andstaff recommendations • 'Second budget workshop•on May 29th? 64 32 5/9/2018 NATIONAL ctry azial Deficit Spending General Fund Total Estimated Use of General Fund Fund Balance - FY 19 Preliminary Budget $ 6,468,964 Use is split between unassigned and commited as shown below: Unassigned Fund Balance at 6/30/17 $ 11,903,272 Less: Projected Use of Fund Balance, FY18 Mid -Year (3.911.9981 Projected Unassigned Fund Balance at 6/30/18 7,991,274 Less: Estimated Use of Fund Balance in FY19 Preliminary Budget (6.068.964i Estimated Unassigned Fund Balance at 6/30/19 $ 1,922,310 Committed Fund Balance - Facilities Maintenance Reserve at 6/30/17 $ 2,500,000 Less: Projected Use of Fund Balance at FY18 Mid -Year Review $ (500.0001 Projected Committed Fund Balance - Facilities Maintenance Reserve at 6/30/18 $ 2,000,000 Less: Estimated Use of Fund Balance in FY19 Preliminary Budget $ (400,0001 Estimated Committed Fund Balance - Facilities Maintenance Reserve, 6/30/19 $ 1,600,000 Structural vs Non -Structural Deficit: Estimated Use of Unassigned Fund Balance, FY19 Preliminary Budget Less: One-time Capital Spending (Non -Revenue Offset Expenses) Equals: Estimated Structural Deficit $ 6,068,964 11.000.0001 $ 5,068,964 65 CALIFOfNj N&TIONA. _ ry fN CORPORAT1Efl Public Comments 66 33 5/9/2018 .44MLIFORNIA -4. NATIONAL CITY Wcon?oRSTE Comments/Direction 67 34