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HomeMy WebLinkAbout2019 04-24 CC MINBook 101 / Page 83 04-24-2019 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY BUDGET WORKSHOP / FISCAL YEAR 2020 BUDGET PRESENTATION April 24, 2019 The Special Meeting of the City Council of the City of National City was called to order at 6:06 p.m. by Mayor / Chairwoman Alejandra Sotelo-Solis. ROLL CALL Council / Board members present: Cano, Morrison, Quintero, Rios, Sotelo-Solis. Administrative Officials present: Dalla, Denham, Duong, Manganiello, Morris -Jones, Raulston, Roberts, Tellez, Vergara, Williams. Others present: City Treasurer Mitch Beauchamp PLEDGE OF ALLEGIANCE TO THE FLAG BY MEMBER QUINTERO INTRODUCTION Acting City Manager Steve Manganiello introduced the Budget team and NHA — Financial Advisors; gave opening remarks and an overview, and outlined the order of presentations that would be made by City Staff. PRESENTATIONS Staff Presentations were made by Deputy City Manager Brad Raulston, NHA — Financial Advisor Craig Hill, Economic Development Specialist Megan Gamwell, Finance Director Mark Roberts, Budget Analyst Yen Kelly, Acting City Engineer Roberto Yano, and Acting City Manager Steve Manganiello, on the below listed topics: • Review of CalPERS Pension Liabilities • Preliminary 10-Year Financial Forecast a. Historical Performance b. Forecast Scenarios • Economic Development • Fiscal Year 2020 Preliminary Budget a. General Fund Budget Summary b. Total Budget Summary c. Significant Budgetary Impacts d. Other Potential Impacts e. Capital Improvement Program • Next Steps NOTE: All presentation materials are attached as Exhibit "A". Book 101 / Page 84 04-24-2019 PUBLIC COMMENTS ON PRELIMINARY BUDGET / SUGGESTIONS Janice Luna Reynoso, Mundo Gardens, spoke on homelessness/displacement in the community due to the high cost of living and unstable housing; said that she is a proponent of the "Housing First" initiative and asked consideration for more "green space" in the future. Eddie Perez, National City, asked for more youth community outreach; suggested keeping the youth recreation centers open during the City's furlough; and adding another van for use during field trips. Larry Emerson, Electric Vehicle Association, commended the Budget team for their presentation and shared information regarding the use of electric vehicles and cost saving measures. Joan Rincon, National City, offered suggestions and statistics regarding the Library's budget; asked that the proposed Library budget not be adopted pending consideration of a new staffing plan. Zachary Gomez, National City, thanked staff for the presentation; suggested investing in more electric vehicles, solar panels, rooftop vegetation and inquired about training funds for Boards and Commissions. Efrain Ibarra, South County Economic Development (SCEDC), spoke on behalf of Cindy Gommper-Graves, explained the South County EDC Value Proposition and asked the City to consider the proposed increase in funding. CITY COUNCIL AND OTHER ELECTED OFFICIALS CLOSING COMMENTS AND DIRECTION Mayor Sotelo-Solis spoke in support of continuing a partnership with SCEDC. Member Rios spoke in support of the SCEDC partnership and strategic incentives and requested that the SDEDC monthly meeting schedule be forwarded to the City Council. Member Cano suggested that the SCEDC evaluate business permits and licensing without enforcement being involved and have City staff follow-up to help businesses be in compliance; applauded the idea of the traffic light implementation; said he would like to see crossover training between departments as a cost -saving measure and suggested a lowrider cruising fee. Member Quintero requested that the members of the dais have the opportunity to meet with the Budget team in a strategic planning session or retreat sometime in the near future. Vice Mayor Morrison spoke in support of the continued SCEDC partnership and the increase in funding; said that a cannabis study is needed to see what the realism is as a community and suggested that an incentive budget program in Maintenance and Operations (M&O) be implemented. Book 101 / Page 85 04-24-2019 CITY COUNCIL AND OTHER ELECTED OFFICIALS CLOSING COMMENTS AND DIRECTION (cont.) Member Rios suggested that funds leftover can be used towards the deficit. In terms of the 'Decision Items', she supports all recommendations: 1) $11,900,000 Funding for Pension, OPEB Trusts, and CIP; 2) $9,500 Additional Funding for SCEDC; and 3) $28,900 Cannabis Study. She requested to add public transportation to the objectives under strategic planning and suggested the phrase be to: "Support safe, reliable, accessible, convenient bus and Tight rail transportation by expanding public transportation options". City Treasurer Mitch Beauchamp said that there aren't enough big financial changes being made. He suggested looking at main things like Public Safety and said he supports holding a public Budget workshop with community dialogue giving more than a three - minute time slot to speak. City Clerk Michael Dalla requested that a vote be taken on the specific actions the City Council desires to take. Mayor Sotelo-Solis thanked Staff for the hard work done on the Budget presentation and materials provided. She said that she supports the 'Decision Items'; requested to maintain and commit to the 2019 dollar amount for the City Council budget, as provided in the department breakdown on Page 6 and asked for a cost associated with keeping the recreation centers open during the two -week furlough. Motion by Sotelo-Solis, seconded by Rios, to approve Item Nos. 1 through 3, with the addition of the City Council budget maintaining to the 2019 levels. Substitute motion made by Morrison, to approve Item Nos. 1 through 3, and to come back with a dollar amount for the State of the City to be added to the City Council budget, except for the personnel costs and to come back with the information on the costs to keep the recreation centers open during furlough and what the need is for that; and to provide information on a budget incentive program. Motion died for lack of a second. Original motion carried by the following vote, to -wit: Ayes: Cano, Quentero, Rios, Sotelo- Solis. Nays: Morrison. Abstain: None. Absent: None. City Attorney Angil Morris -Jones stated for clarification, that the State of the City was paid out of donated monies put into the City's General Fund and that the State of the City is a cost benefiting the City and something that should be paid for by the General Fund. She advised to keep a dollar amount in the City Council budget whether there are donations put there or not. ADJOURNMENT Motion by Cano, seconded by Quintero, 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 7, 2019 at 6:00 p.m. at the Council Chambers, National City, California. Carried by unanimous vote. ADJOURNMENT (cont.) The meeting closed at 9:21 p.m. Book 101 / Page 86 04-24-2019 fl t City Clerk The foregoing minutes were approved at the Regular Meeting of November 5, 2019. Copies of the preliminary budget are available for public review at the following locations: • City Clerk's Office, 1st Floor, Civic Center (Located at 1243 National City Blvd., National City, CA 91950) • Information table outside Council Chambers, 2nd Floor, Civic Center • National City Public Library (Located 1401 National City Blvd., National City, CA 91950) • Online at: http://www.nationalcityca.gov Book 101 / Page 87 04-24-2019 THIS PAGE IS LEFT INTENTIONALLY BLANK c A LNI FIOAR N 1 A N acy3v r Fiscal Year 2020 BUDGET WORKSHOP April 24, 2019 .V. 118IHX3 Stephen Manganiello Acting City Manager NATI CIT Budget Team ❖ Steve Manganiello - Acting City Manager ❖ Brad Raulston - Deputy City Manager ❖ Mark Roberts - Finance Director ❖ Roberto Yano - Acting City Engineer •:• Janel Pehau - Finance Analyst ❖ Arnold Ocana — Senior Accountant ❖ Yen Kelly - Budget Analyst ❖ Megan Gamwell - Economic Development Specialist ❖ Sheila Pangco - Budget Technician ❖ NHA - Financial Advisor o Craig Hill o Mike Meyers o Christian Sprunger 3 NATIU Cary lNCOglOp1T6� Workshop Outline ••• Introduction and City Manager Overview ❖ Preliminary Financial Forecast and Pension Review •:+ Strategic Planning and Economic Development ••• Fiscal Year 2020 Preliminary Budget ❖ Capital Improvement Plan (CIP) ••• Next Steps, Closing Comments, and Request for Direction ••• Public Comment ❖ City Council Comments and Direction 4 CALIFORNUV.s" NATI NA ir a 1. �. �'YCORYOR ATtiD Budget Overview ❖ FY 2019 Accomplishments ❖ Completed local elections — addressed several citizen initiatives; elected a new Mayor; two Councilrnembers re-elected to the Council; new City Councilmember was appointed by Council to fill a vacancy ❖ Transition to a new City Manager in progress ❖ Finalized employment agreements with three labor groups — FFA agreement going to City Council for approval on May 7th ❖ Provided Pension update — costs continue to rise ❖ "Clean" annual financial audits with no "findings" for 4 straight years ❖ Updated Capital Needs Assessment ❖ Received over $20 million in "competitive" grants for capital projects •:• Completed transactions for $37 million renovation of Morgan & Kimball Towers / Nutrition Center upgrades 5 NET �v 1NC H,r'Op1TSD Budget Overview •`• FY 2020 Budget "Snapshot" Forecasting a deficit for the 7th consecutive year Develop a comprehensive approach to closing the gap — Economic Development is not the only solution •• Many plans, projects and programs in place; however, progress takes time •:• Control discretionary spending — keep M&O budgets flat; maintain current staffing levels funded by General Fund Provide recommendations for use of "one-time" revenues Work towards long-term solutions for fiscal sustainability Personnel costs continue to represent the majority of the General Fund Budget and are being refined based on analysis of the recent labor agreements 6 iLir/N)( NkUONfA FINANCIAL FORECAST Historical Trends and Preliminary 5-Year Financial Forecast Brad Raulston Deputy City Manager NHA Advisors Financial Advisor +i CALIF0AN1 NATIO M 1 1. INCORYua1„... ✓ $60 $50 $40 $30 0 $20 $10 $0 J Historical Revenue Trends 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ❖ Sales taxes (purple) make up approximately 50% of FYE 2018 revenues, while property taxes ( . "" ) account for about 18% ❖ Sales tax receipts have grown an average of 2.3% per year over the last 10 years, while property taxes have grown an average of 2.9% over that same period 9 NATIONAL -tar .INCORPORATSD Historical Expenditure Trends $60 $50 $40 () $30 0 $20 $10 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total — Personnel Costs ❖ Total personnel costs (salaries, overtime, worker's comp, health insurance, CaIPERS, OPEB, other) comprise 60% of FYE 2018 expenses ❖ Salaries (purple) have grown an average of 3.1 % per year over the last 10 years, while CaIPERS (red) costs have grown an average of 5.3% over that same period 1 o +-- CALIFORNIA NATIONAL Mr $70 $60 $50 $40 c $30 2 $20 $10 $0 HistorcaI Performance and Fund Balance 1 2011 2012 2013 2014 2015 2016 2017 2018 INN Revenues Expenditures —Unassigned General Fund Balance Transfers Ire/tine Time Transfers Out ❖ Unassigned General Fund balance has increased from $7.IM to $12.7M 11 sATI _ CITv Factors fir Historical Increase in Unassigned Fund Balance • Fund consolidation (2013, 2014, 2016) ❖ One-time financial transactions Sale of Public Works Site (2014) Energy Savings Bonds (2018) o Kimball Morgan Tower Recap (2019) ❖ Personnel budget savings/Position Reconciliation ❖ Conservative revenue budgeting CALIFORNIA NATIONAL CITY General Fund ForecastingModel 1.\'( Okv UNATE�' •:• NHA is currently working with staff to develop a long-term, dynamic forecasting model that can provide on -demand, scenario analysis o Preliminary Base Case and Revenue Only Scenario are being presented as part of this initial budget discussion Key Base Case Assumptions ❖ Sales tax growth based on HdL projections through FYE 2021; 2.5% annual growth assumed thereafter ❖ Property taxes growth: 2.5% •:• Salaries and CaIPERS are key expense drivers 0 Salaries projected to increase at 3.5% annually o CaIPERS expenses are based on actuarial report ❖ $2M per year for CIP ($1 M for infrastructure, $1 M for parks & facilities) ❖ Includes $1.5M annual transfer out to Library and Parks Maintenance Funds, assumes no transfers in 13 CALIFORNIA � NATIONAL CITY Base Case Projection Results ❖ Expenses outpacing revenues translate into annual deficit of $2M in FYE 2019 growing to $9M by FYE 2024 ❖ Unassigned Fund balance is essentially depleted by FY 2021 0 $75 $65 $55 $45 $35 $25 $15 $5 -$5 - $15 -$25 - $35 eXPer'ses Revenues Unassigned General Fund Balance FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 +tL':f1LIFORNIA.� NATO* ONAko C- " . NCORPON AT 6l Revenue Only Scenario ❖ $1.6M per year of added tax revenue from new development in FYEs 2020-2024 o I.E. - FYE 2024 revenues at (east $10M higher than FYE 2020 ❖ Base Case assumptions for everything else $75 $70 $65 $60 $55 $50 $45 o $40 $35 $30 $25 $20 $15 $10 $5 $o Unassigned General Fund Balance 15 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 - CALIFORWLK>.. . NATION zTY 1NCOgt061'CS Takeaways ❖ Similar to many other cities statewide, National City is facing increased budgetary pressure, primarily due to rapidly increasing CaIFERS costs and deferred CIP needs Negative Factors Impacting Financial Forecast ❖ No one-time Transfers -In ❖ Annual Pay -GO CIP (S2M) funded from General Fund revenues (as opposed to reserves or other funds) ❖ Threat of sales tax revenue stagnation from potential economic downturn Potential Strategies ❖ New Economic Development initiatives ❖ Balanced/feasible approach to funding CIP ❖ Cost -constraint measures and pension cost reduction strategies •:• Example: Section 115 Trust "Smoothing" 16 CALIFORNIA -'• NATIONAL Ctf l r= 13J'1 - »'COAPORA78 Section 115 Trust "Smoothing" Example $17,000,000 $16,000,000 $15,000,000 $14,000,000 $13,000,000 $12,000,000 $11,000,000 $10,000,000 $9,000,000 $8,000,000 17 Section 115 Example: "Smoothing" From 2023-2033 Assumes $cM Added to Sectinn 11 S - Section 115 Funds Used to Offset Higher Payment Years - $6.6M + $2.1 M in Investment Earnings = $8.7M Reduced Payments O r I N M d' lD N 00 O N M ct 1f1 C.O f� 00 CY1 O T-+ N M I� 00 N N N N N N N N N N M M M M M nn M m M M O o c> o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 • N N N N N N N N N N N N N N N N N N N N N N N N N N N N -C.A.LIF.OR NIA NNE-IONIA STRATEGIC PLANNING AND ECONOMIC DEVELOPMENT +`}1LIFORNji�>s�.. NAT101 tL aft WCOipUq{XrfG Brad Raulston Deputy City Manager Megan Gamwell Economic Development Specialist 19 CALIFORIr1A r ATI®NA ,CIT r Strategic Planning and Economic Development �IPCO$pO��TSD -� ❖ All Potential Strategies are Needed ❖ Strategic Plans Define a Direction + Guide Decisions on Allocating Resources •.• Align Staff with Direction •:• Priorities for Plans, Projects, and Programs •:• Return on Investment (ROI) •:� Budget is a Policy Document ❖ Staff is Tasked at Efficient and Effective Management of City Council Policies 20 �- CALIFORP(IA NATIONAL CHI! ��CORYURASBD -' Former Strategic Plans ❖2007 Strategic Plan has similar Objectives and Action Plans that are still being worked on today Strategic Planning Workshop 2: Achieve Fiscal Sustainability 1 2 Visitor 0 Home 0 3 4 x x 0 1 X X City of National City 4/5/2007 5 6 7 8 9 Runs Hits Errors Strategic Planning Workshop 3: Improve Quality of Life i 2 3 4 5 Visitor 0 Home 0 x x x x x 0 1 0 X X X X X 1 2 0 ACTION PLANS 11 Open Plaza Bonita Expansion & Costco Create Grants Division & Aggressively Seek Funding Sources +i1 Complete Maximus Fee Study & Implement Impact Fees to have Growth pay for Growth Q® Begin Sycuan/MRW Hotel & Build Up Marina Gateway .rt' s ti0 Continue Pursuing Home Depot/PSI & Develop Site virdir 0 1 2 x 0 X x f � 6 7 x x City of National City 4/5/2007 9 Runs Hits Errors X 2 3 0 2 0 ACTION PLANS t Expand Hours at Community Facilities Conduct a Demand Study & Formulate a Strategic Plan for Community Facilities & Activities ti� Develop Art & Cultural District including Playhouse & Arts Center ® Build Aquatic Center �i Support City Parks & Open Space (i.e., Paradise Creek) 4 �' 4 21 Ae CALIFORNIA-w° NATIONAL cJTp Current Strategic Plan 2017-2022 • +Adopted by City Council every two years as part of the budget cycle ❖ 5 Objectives with Strategic Initiatives + Provide Quality Services •:• Achieve Fiscal Sustainability •:• Improve Quality of Life ❖ Enhance Housing and Community Assets ❖ Promote a Healthy Community 22 Economic Development Strategic Plan ❖Adopted Unanimously by City Council on October 3, 2017 5 Goals with strategic Initiatives •:• Collaborate and Communicate •:• Support Businesses •:• Promote Vibrant Neighborhoods 4• Support Employment •:• Increase City Revenue Increase City Revenue ❖ Economic Development is Strategic ❖ Generating General Fund Revenue ❖ Sales Tax — Organic versus Incremental ❖ Property and TOT Taxes ❖ Other Potential Strategies ❖ Potential Strategies ❖ Continue Business Recruitment, Retention, and Expansion ❖ Improve Land Use and Encourage Redevelopment ❖ Expand Housing and Parking Authorities ❖ Explore Assessment Districts, BIDs, and Infrastructure ❖ Pursue Grants, Incentive Programs, and Opportunity Zones ❖ Consider Ballot Measures for Potential Taxes 24 ++- CAUF0RWI - NATIONAL Crnr iNCA$►AS1T8o Business Recruitment, Retention, and Expansion ❖ Estimated $8 Million needed in incremental growth over 5 years ❖ Estimated $2 Million in organic growth over 5 years ❖ $1 Million Projects are rare ❖ CarMax, Plaza Bonita Expansion ❖ $50k - $250k projects are critical ❖ Gas stations, restaurants, bakeries, retail, hotels ❖ Void Analysis- Filling gaps where we are losing revenue ❖ Reduce the number of business closures by 2% annually 25 + C P01CN11+"' NATIONAL TY ifirc Business License Statistics 400 350 300 250 200 150 100 50 0 o i 2014 BUSINESS LICENSES 2015 Opened •Closed 2016 • 2017 2018 Current average net annual business growth is 188 Closed business licenses were down 30% from 2017 to 2018 26 -„-. CALIFORNI* NAT RONA C Land Use and Redevelopment ❖ Continue updating long-range land use plans to encourage development and maintain low user and impact fees ❖ Utilize City property for highest and best use ❖ Continue working closely with the Navy and Port District ❖ Meet demands of Sailors, Students, and Seniors and create vibrant and walkable 10-minute neighborhoods. Where can you go in a 10-minute neighborhood? — Variety of Housing Types Start 27 Here -Off-street Bike Path - Bus Stop 0 1 min -Grocery Store min School 3 min Pedestrian -only Walkway -- Restaurant/Bar/ Cafe s 4 min - Park/Open Space 5 min - Bank Ulla WEN ■.. n 6 min Business -Transit Offices Center Arts/Cultural Center Community Garden n zniritri i d Q 7 min 8 min , 9 mi Hospital/ Medical Offices t'rm 1 10 min INFILL DEVELOPMENT Plaza Sixteen Forty 77 Units Market Rate New Growth in Housing 8th and B 120 Units including Micro Units Habitat For Humanity 6 Units Affordable Housing Encourage all types of housing development. It's not just about density but about building opportunity ECONOMIC IMPACT Property Tax Including potential increase in property tax values in surrounding area Sales Tax Revenue from this project's commercial/retail components as well as adding residents to the Downtown who will spend $ in National City (Estimated 5K Square feet of commercial space ) New Jobs Micro -retail opportunities within new development CALUFOR1/11a• NATIONAL:CITIr 1NCOgpp�llTBD Housing and Parking Authorities ❖ City currently has Community Development Commission -Housing Authority (CDC -HA) and Parking Authority (PA) as separate legal entities ❖ CDC -HA has significant resources due to Kimball Morgan Towers and other assets (Housing Element due next year) ❖ SB2 and other CA initiatives will provide ongoing funding to housing plans, projects, and programs ❖ Current City (General Fund) obligations can be shifted to CDC -HA if there is a nexus (Nutrition Center) ❖ PA can start performing as an enterprise fund as revenues increase which will alleviate any General Fund support ❖ PA can be used as redevelopment tool through Parking Management Plan and land acquisition 30 NATIONAL CJTy `- 'NCOMYOR�T$D Grants, Incentives, and Opportunity Zones ••• Housing grants can support economic development by helping fund mixed -use projects ••• Smart growth and other transportation grants build infrastructure that supports infill development and Transit Oriented Districts ••• Cap & Trade funding supports green projects that connect housing and transportation ••• CDBG and other City Grant Programs like SFIP, AROW and Adopt -a -Place continue to move forward •• Leverage Opportunity Zones in National City to redevelop underutilized sites and drive investment into downtown 31 -CALIFORNIA ^� NATIONAL Cirr �- +Hcoeroa►xs� Assessment Districts, BIDs, and Infrastructure ❖ Assessment Districts provide an opportunity for property owners to fund maintenance and improvements in defined districts (Mile of Cars) ❖ Assessment Districts can offset existing maintenance and CIP needs ❖ Business Improvement Districts (BID) allow clusters or industry types to collect funds and work together on marketing and promotion ❖ Cities are leasing or charging for use of public right of way through micro -mobility (scooters), dark fiber leasing, small - cell towers and other partnerships ❖ Cities are developing Community Choice Aggregation (CCAs) for energy options. Cities also impose Utility User Fees and Taxes with voter approved measures 32 _+`ALIfOFN1J�y+' NNtIONALE7firnt Tax Measures for Voters •:• Strategic session with City Council to determine the menu of options, timelines and costs, and whether a potential tax measure is part of the City's strategic direction + Engage experts to research options and engage the community ❖ Other cities have brought forward measures that include public safety funding, cannabis tax, soda tax, vacant property tax, parcel tax, and others 33 / % p.t.JF:0RN. r N&114- NA 1,887 PRELIMINARY BUDGET Fiscal Year 2020 NATIONALCITi Mark Roberts Director of Finance Yen Kelly Budget Analyst 35 Fiscal Year 2020 Preliminary Budget Overview ❖ Personnel Cost Assumptions o Addition of 1 FTE (Sewer Service Fund) O 5% increase in the City -paid portion of health insurance premiums beginning February 2020. Compensation calculations based upon assumptions/estimates prior to conclusion of negotiations with public safety labor groups o No increases to Council, executive and management compensation ❖ Maintenance & Operations Costs o Retained FY 19 M&O budget, except in areas where external contractual obligations dictate increases and costs could rot be absorbed into the existing budget ❖ Capital Improvements o Includes the minimum amount of funding from the General Fund to meet the maintenance of effort (MoE) requirements to receive TransNet and SB1 allocations for roadway improvements and addreEs Tier 1 capital projects (Tier 1) •:• Revenues o Amounts projected by both staff and consultants and are considered conservative O Will be updated as more data becomes available 36 General Fund 37 Unassigned Fund Balance General Fund Fund balance, 6/30/18 Projected use of fund bal., FY 19 mid-yr Projected fund balance, 6/30/20 $12,731,294 (1,784,342) $10,946,952 �-+�CALIfORfI�� _. Nik NALcirry C Preliminary Budget Summary Fiscal Year 2020 General Fund Total Revenues Transfers In Operating Expenditures Transfers Out Fund Balance (Use)/Gain FY 20 FY 19 Preliminary Adopted Change $ 54,947,718 $ 54,605,776 $ 341,942 6,000 11,012 (5,012) (58,681,435) (57,412,159) (1,269,276) (2,144,668) (1,858,192) (286,476) $ (5,872,385) $ (4,653,563) $ (1,218,822) Includes the use of $1.OM of committed fund balance from the Facilities Maintenance Reserve. 39 «,aRA Projected Change in Unassigned 1PICO moll) Fund Balance —Fiscal Year 2020 General Fund Projected fund balance, 6/30/19 $10,946,952 Estimated use of fund bal., FY20 preliminary budget* (4,872,385) Estimated fund balance, 6/30/20 $ 6,074,567 *Does not include the use of $1.0M of committed fund balance from the Facilities Maintenance Reserve. 40 a. CpUPORxI/y`+_tonoNAtortv `� 'NCORMOp ATRO - Revenues FY 20 Preliminary vs FY 19 Adopted General Fund Sales & Use Tax Proposition D / District Tax Property Tax Property Tax Allocated Property Tax In Lieu of VLF Other Revenues FY 20 FY 19 Preliminary Adopted Change 18,690,000 $ 18,078,000 $ 612,000 11,965,000 11,359,000 606,000 4,033,720 3,933,720 100,000 (1,832,827) (1,787,009) (45,818) 7,000,000 6,661,664 338,336 15,091,825 16,360,401 (1,268,576) Total S 54,947,718 $ 54,605,776 $ 341,942 41 • ... CA1.IFORWI4.,-, NATIONAL cfTy 27.;. ` ��o�.oa:r8o ) Revenues Fiscal Year 2020 General Fund —Estimated Revenues - $56.8M Other Revenue 26.58% Property Tax in Lieu of VLF 12.33% Property Tax 7.10% * Does not include Transfer(s) In. Sales Tax 32.92% Proposition D / District Tax 21.07% 1/ _ALIFORH{Ir,, N&TONAr CI Expenditures FY 20 Preliminary vs FY 19 Adopted General Fund Personnel Services Maintenance & Operations Capital Outlay CIP* Internal Service Charges Total FY 20 Preliminary FY 19 Adopted Change 41,663,160 6,642,220 582,827 2,300,000 7,493,228 $58,681,435 $ 38,190, 898 6,511,208 113,508 5,000,000 7,596,545 $57,412,159 Includes the use of $1.0M of committed fund balance frcm the Facilities Maintenance Reserve. $ 3,472,262 131,012 469,319 (2,700,000) (103,317) $1,269,276 43 ->r CALIFORNIA -a NATIONAL CIS fNCpRYp6�T�" Expenditures Fiscal Year 2020 General Fund - Estimated Expenditure by Category $58.7M* ■ Capital Improvem n 3.92% Capital Outla 0.99% Maintenance & Operations 11.32% * Does not include Transfer(s) Out. Allocated Costs & Internal Charges 12.77% Personnel Services 71.00% 44 ^, CALIFORNIA ►o- . NATIONAL car f.n �NCORPOft•T8V -.- Percentage of Expenditures by Department -Fiscal Year 2020 General Fund Other Depts 33.47% Fire 21.10% Police 45.43% • Police • Fire • Other Depts 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 45 KCALIFORNIA --V NATIONAL CITY tmcogr�axcsn Transfer(s) In FY 20 Preliminary vs FY 19 Adopted General Fund FY 20 FY 19 From Preliminary Adopted Change Plan Checking Revolving Fund 1,363 (1,363) Mile of Cars LMD 6,000 6,000 - National City JPFA Debt Service Fund - 218 (218) Library School District Contract Fund - 2,406 (2,406) State Grant Fund 1,025 (1,025) Total (Net) General Fund Impact $6,000 $11,012 $ (5,012) 46 . CALtFORN NAU.UONAL QTy Transfer(s) Out FY 20 Preliminary vs FY 19 Adopted General Fund FY 20 FY 19 To Purpose Preliminary Adopted Change Library Fund Operating Subsidy $1,132,361 $1,073,101 $59,260 Parks Maintenance Fund Operating Subsidy 751,967 587,511 164,456 Post -Employment Benefits Fund Retiree Health Benefits 260,340 197,580 62,760 Total Transfers In $2,144,668 $1,858,192 $286,476 47 C)1.1 RNIA ' Budget Summary I©NAI ;NCORYURATBD FY 20 Preliminary vs FY 19 Adopted General Fund FY 20 FY 19 Preliminary Adopted Change Total Revenues $ 54,947,718 $ 54,605,776 $ 341,942 Transfers In 6,000 11,012 (5,012) Operating Expenditures (58,681,435) (57,412,159) (1,269,276) Transfers Out (2,144,668) (1,858,192) (286,476) Fund Balance (Use)IGain* S (5,872,385) $ (4,653,563) $ (1,218,822) * Includes the use of $1.0M of committed fund balance from the Facilities Maintenance Reserve. 48 GA\�PRN Impact on Unassigned Fund Balance NATIONAL (Art Fiscal Year 2020 General Fund Fund Balance, 6/30/18 Projected Use of Fund Bal., FY19 Mid -Year Projected Fund Balance, 6/30/2019 Estimated Use of Fund Balance, FY20 Preliminary Budget Estimated Fund Balance, 6/30/2020 $ 12,731,294 (1,784,342) 10,946,952 (4,872,385) $ 6,074,567 49 / .1F.or,iNIA-..,,ov- N&WNL ci _ • -1•0077 ...-.... . . c Total Budget 50 . _�cAIIfONN(/j�.s CO&TOg,TYD Total Operating & Capital Budget FY 20 Preliminary vs FY 19 Adopted General Fund Revenues Transfers In Expenditures Transfers Out FY 20 FY 19 Preliminary Adopted Change $ 54, 947, 718 $ 54, 605, 776 $ 341,942 6,000 11,012 (5,012) (58,681,435) (57,412,159) (1,269,276) (2,144,668) (1,858,192) (286,476) Projected Use of Fund Balance * ($5,872,385) ($4,653,563) ($1,218,822) FY 20 FY 19 Other Funds Preliminary Adopted Change Revenues $ 41,271,894 $ 38,481,497 $ 2,790,397 Transfers In 2,758,793 2,528,399 230,394 Expenditures (46,216,713) (41,950,255) (4,266,458) Transfers Out (620,125) (678,813) 58,688 Projected Use of Fund Balance ($2,806,151) ($1,619,172) ($1,186,979) FY 20 FY 19 All Funds Preliminary Adopted Change All Revenues $ 98,984,405 $ 95,626,684 $ 3,357,721 All Expenditures (107,662,941) (101,899,419) (5,763,522) Projected Use of Fund Balance ($8,678,536) ($6,272,735) ($2,405,801) Transfer(s) In/Out for all funds equal (net) $0 * Includes the use of $1.0M of committed fund balance (Facilities Wintenance Reserve). 51 CALIFORMIA -^ N%TIONAL CITY IV(OXYUH ATM) Preliminary Total Budget FscaI Year 2020 Estimated Expenditures by Fund - $104.9M Gas Taxes Fund $2.70 CDBG $1.06 • All Other Funds Library Fund $5.4, $1.74 Sewer Service Fund $10.03 Housing Choice Voucher Fund $13.13 Internal Service Funds $11.23 Nutrition $0.83 General Fund $58.68 52 ��- CAI IFORNI.Cp. . NATIONAL -CI -Ty 1;331 iNcoaro.AT6 Preliminary Total Budget Fiscal Year 2020 Estimated Expenditures by Category - $104.9M Capital Improvement $6.64 Capital Outlay $1.93 Alloc. Costs & Internal Chr.s $9.68 Maintenance & Operations $35.37 Personnel Services $51.27 53 LIFORNIA:pior NNICIONA '''''WC/Ort.1,ci A AT Expenditure Changes Preliminary Fiscal Year 2020 vs Adopted Fiscal Year 2019 Expenditures FY 20 Preliminary vs FY 19 Adopted General Fund FY 20 FY 19 Preliminary Adopted Change Personnel Services S 41,663,160 $ 38,190,898 $ 3,472,262 Maintenance & Operations 6,642,220 6,511,208 131,012 Capital Outlay 582,827 113,508 469,319 CIP 2,300,000 5,000,000 (2,700,000) Internal Service Charges 7,493,228 7,596,545 (103,317) Total $58,681,435 $57,412,159 $1,269,276 * Includes the use of $1.0M of committed fund balance from the Facilities Maintenance Reserve. 55 T��j -- 1t woo Allen General Fund Full -Time Salaries Overtime Educational Incentive Pay Allowances & Stipends Differential Pay Workers Compensation Health Insurance Retirement Plan Charges Personnel Compensation All Others Total Personnel Changes Expenditure Changes Personnel Changes from Adopted FY 19 $ 1,043,667 581,000 45,953 (52,049) 27,027 99,350 (86,751) 1,751,832 100,000 (37,767) $ 3,472,262 56 NitToNAkcirtyr Expenditure Changes General Fund Maintenance & Operations Professional Services Contract Services Bond Principle Bond Interest Emergency Animal Treatment Governmental Purposes Refunds, Contribution, & Special Payments All Others Changes from Adopted FY 19 277,140 63,060 140,964 173,892 (133,793) (61,536) (183, 535) (145,180) Total Maintenance & Operations Changes $ 131,012 57 be. CAIIPQ NA,TICITp ,x�bBJ�.z$o Non -Departmental Expenditure Accounts (Formerly "650s") Contract Services SANDAG $ 10,269 Graffiti Tracker Services 3,000 Property Management 15,000 Mile Of Cars Lmd - General Benef 13,541 Memberships & Subscriptions Trauma Intervention Services 8,975 Call 211 San Diego 12,000 Professional Services Boards & Commissions 5,500 Promotional Activites Independence Day Fireworks 7,200 E-Newsletter 5,000 Special Payments Wellness Program 5,000 Governmental Purposes Westside Amortization Of Non -Conforming Uses 50,000 58 - CALIFORNIA - NNTI©NAL CITY INCOitYOH AiEO Expenditure Changes General Fund Capital Outlay & Capital Improvement Changes from Adopted FY 19 Capital Improvement Misc Storm Drain Improvements $ 300,000 Paradise Creek Park Site Remediation (3,600,000) Facilities Upgrades - Tier 1 Project; 600,000 Total CIP Changes $ (2,700,000) Capital Outlay Computer Equipment $ 388,000 Furniture & Furnishing (3,338) Automotive Leases (10,343) Communications Equipment 40,000 Public Safety Equipment 55,000 Total Capital Outlay Changes $ 469,319 59 *- vooaRMIA.- .oIQNALcm �NCURpOE 1'1'�O Expenditure Changes General Fund Internal Services Charges Provision for Contingency Building Services Charges Vehicle Services Charges Vehicle Lease Charges Information System Maintenance Charges Insurance Charges Total Capital Outlay Changes Changes from Adopted FY 19 70,000 (256,276) 65,441 35,033 (27,655) 10,140 $ (103,317) 60 Reserves / Fund Balances 61 As of 6/30/18 General Fund Target Balance Contingency Reserve $ 14,670,359 $ 9,085,066 Facilities Maintenance Reserve $ 4,987,377 $ 2,000,000 Unassigned Fund Balance NA $ 12,731,294 62 -•^ CALIFORNIA ... NATIONAL CITY INcORYDRETN. - Other Funds As of 6/30/18 Target Balance Gas Taxes Fund Reserve $ 139,212 $ 139,212 Sewer Services Fund Reserve - 15,576,498 Liability Insurance Reserve 1,757,000 1,368,000 Workers' Compensation Reserve 9,592,000 8,027,000 Debt Service Reserve 2,016,263 1,385,299 Vehicle Replacement Reserve 6,323,126 1,661,066 63 \ F / CALIFORNIA + NATIONAL Cm 411%Q (30fLIAE".17 Deficit Spending General Fund 64 TIO JAL ier �- +I ograM:xtP Deficit Spending General Fund Total Estimated Use of General Fund Fund Balance - FY 20 Preliminary Budget Use is split between unassigned and committed af; shown below: Unassigned Fund Balance at 6/30/18 Less: Projected Use of Fund Balance, FY19 Mic-Year Projected Unassigned Fund Balance at 6/30/19 Less: Estimated Use of Fund Balance in FY20 Preliminary Budget Estimated Unassigned Fund Balance at 6/30/20 $ 5,872,385 $ 12,731,294 (1,784,342) 10,946,952 (4,872,385) $ 6,074,567 Committed Fund Balance - Facilities Maintenance Reserve at 6/30/18 $ 2,000,000 Less: Projected Use of Fund Balance at FY19 Mid -Year Review (700,000) Projected Committed Fund Balance - Facilities Maintenance Reserve at 6/30/19 1,300,000 Less: Estimated Use of Fund Balance in FY20 Preliminary Budget (1,000,000) Estimated Committed Fund Balance - Facilities Wintenance Reserve, 6/30/20 $ 300,000 Recap Estimated Use of Unassigned Fund Balance, FY20 Preliminary Budget $ 4,872,385 Estimated Use of Committed Fund Balance, FY20 Preliminary Budget $ 1,000,000 65 / i.CALIFO FR NNW NAU:11Tir Capital Improvement Program (CIP) 66 NATIONiLtTy Roberto Yano Acting City Engineer 6 7 NATJ CITY �fCAAP0B 1'jf0 CIP Assets Infrastructure Streets Sidewalks Pedestrian Ramps Street Lights Traffic Signals Sewer System Storm Drains Communications Parks and Facilities City Offices PW Yard Police Station Fire Stations Community Centers Public Library Information Technology Community Parks Ball Fields Restrooms Lighting Landscaping Walking Paths Swimming Pool Vehicle Fleet Light Duty Trucks Medium and Heavy Duty Trucks Pool Vehicles Police Petrol Vehicles Fire Apparatus Heavy Equipment 68 ^- CALIFORNIA - NNTiI©NAL CITY ( 4Nl'ONPOAATLO CIP Overview Major Maintenance (Deferred & Ongoing) ❖ Capital improvement projects that provide major maintenance and/or upgrades to existing infrastructure and/or facilities required to provide essential public services and maintain health and safety ••• Examples — roadway rehab, roof replacement, HVAC system upgrades, removal and replacement of deteriorated metal storm drain pipes New Public Improvements ❖ Capital improvement projects that expand existing infrastructure and/or facilities, or construct new facilities, to address present and future needs of the Community ••• Examples — skate park, multi -purpose athletic field, municipal swimming pool, community corridors 69 + CALIFORNIA _- m,ATLONAL Cap CIP Overview Project Prioritization • Annual - Annual project to address infrastructure needs •: Tier 1 - Urgent project based on public health and safety •:• Tier 2 - Near -Term project (1 to 2 years) •:• Tier 3 - Mid -Term project (3 to 5 years) •:• Tier 4 - Long -Term project (6 to 10 years) Evaluation Criteria •:• Health and safety •:• Community support •:• Project costs and schedule •:• Available funding • Consistency with City General Plan and other Tong -range planning documents • Ongoing maintenance costs 70 +�CA1.1f0RN1 NATILONA L CtTp Illfru.iToliksZD 1 Asset Streets Sidewalk/Ped Ramps Traffic Signals/Street Lights Sewer Storm Drain Infrastructure Inventory Asset Items Streets Alleys Sidewalk* Ped Ramps* Traffic Signals Street Lights Sewer Mains Sewer Manholes Force Mains Storm Drain Mains Storm Channels Storm Drain structureE (inlet, c.o., hw, *Quantity is estimated etc) Quantity Unit 107 7 200 2200 75 800 106 2015 1325 45 12 791 Miles (cl) Miles (cl) Miles Each Each Each Miles Miles 71 NAT . : -CITp co o a$0 -J FY 20 Proposed Capital Infrastructure Investments Funding Source Streets / ADA Streets / ADA (Major (New Public Maintenance) Improvements) Traffic Signal / Street Lights Sewer Storm Drain Total SB1 $1,030,000 $1,030,000 $1,215,000 $2,000,000 TransNet $735,000 $250,000 $230,000 Sewer Fund $2,000,000 General Fund $800,00C $500,000 $1,300,000 Grants FY 2020 Investment Annual Infrastructure Needs $1,765,000 $2,700,000 $10,923,5C1 $11,973,591 $2,600,000 $4,350,000 $4,580,000 $1,000,000 $2,000,000 $2,000,000 $200,000 $700,000 $1,000,000 $15,473,591 $21,018,591 $9,500,000 FY 2020 Investment vs. Needs ($935,000) $9,373,591 $3,580,000 $0 ($300,000) 72 \111/ —T cAIIPORN NATIONAtar Maintenance of Effort (MOE) National City is required to invest approximately $2 million annually in discretionary funds (General Fund) for local roadway projects to meet its Maintenance of Effort (MOE) requirements to receive local TransNet funding and State Gas Tax Road Maintenance and Rehabilitation Account (RMRA) funding through SBI •'• General Fund cost allocation for Engineering / Public Works employees is applied towards the City's MOE for roadway maintenance and/or capital projects funded through General Fund ❖ The remaining MOE is met by funding capital roadway projects through General Fund 73 -CALIFORNIA ^+ NATIONAL Clfl ' - 1rc�o ,irsv J Sewer Service Fund ❖At the City Council Meeting of December 19, 2017, City Council adopted an Ordinance establishing sewer service rate increases over the next five fiscal years to offset sewage transportation and treatment rate increases from San Diego Metropolitan Wastewater Department and address capital needs for sewer pipe repair / replacement and upsizing ❖Approximately 30°/ ($2,000,000) of the total revenue will be invested in Capital Improvements 74 Vehicle Fleet Needs ❖ Existing City fleet consists of approximately 225 vehicles and associated equipment, valued at over $10 million ❖ Fleet replacement/modernization is funded by the Vehicle Replacement Reserve, which is replenished over time through internal service charges ❖ City started lease program with Enterprise Fleet Management in FY 2015 as a financing tool to replace/modernize a portion of the City's Tight -duty fleet ❖ Approximately 70% of the City's fleet has been replaced/modernized through a combination of purchases and leases since FY 2015 ❖ Remainder of fleet is scheduled to be replaced/modernized over the next 3 years, pending available funds 75 Vehicle (sleet Evaluation Criteria ❖ Age ❖ Mileage and/or hours of use ❖ Maintenance & repair costs ❖ Departmental operational needs 76 FY 20 Fleet Recommendation Department Vehicle or Equipment Cost General Fund Sewer Fund Purchase (P) or Lease (L) Police C.S.O. Truck $30,000 $30,000 P Police Investigation Vehicle (3) $105,000 $105,000 L Police Prisoner Transport Van $100,000 $100,000 P Police C.N.T. Van $75,000 $75,000 P Police Swat Vehicle F250 $175,000 $175,000 P Parks Aerial Boom Truck (Electric) $225,000 $225,000 P Parks Brush Chipper $45,000 $45,000 P Streets Ford F-550 Dump Body $80,000 $40,000 $40,000 P Engineering/ PW Plug -In Electric Vehicle �) $105,000 $70,000 $35,000 L Parks Light Duty Stake Bed $45,000 $45,000 L Streets Brush Hog $5,000 $5,000 P Facilities Cargo Van $25,000 $25,000 L Streets Skid Steer w/Attachments» and Trailer $95,000 $47,500 $47,500 P Parks Mini Trencher w/Trailer $30,000 $30,000 P Total $1,140,000 $1,017,500 $122,500 7 7 �-. 0911FORNIA, ►• NALfl0 NA Cfl V �RCARYOR �7iD FY 20 Parks & Facilities Needs Assessment TIER 1 TIER 2 Ir APPLY FO GRANT FUNDING 70 CALIFORNIA — NATIONAL cr y IN cox rmi AT CO Facility City Hall Completed FY 20 Parks & Facilities Needs Assessment In Progress Tier 1 -Roof replacement $350,000 -Fire alarm system $40,000 -Energy Savings Upgrades $1,960,000 -Replace ceiling titles $100,000 MLK Jr -Energy Savings Community Upgrades $540,000 Center Police Department Public Works (1726 Wilson Ave) -Roof replacement $170,000 -Energy Savings Upgrades $990,000 -Storage facility for PD specialty vehicles $1,400,000 -Replace carpet $40,000 -Energy Savings Upgrades $90,000 Tier 2 Tier 3 Tier 4 Up•"i2fde Electrical Room i50000 -Replace electrical distribution panel $100,000 -Replace flooring in North and South community rooms $100,000 1Va Proofing $250,000 -Upgrade-Electrical Room-$200, 000 -ADA upgrades $400,000 -Finance Dept flooring $60,000 -1s1 Floor Improvements $630,000 -Replace ceiling tiles $450,000 $350,000 -Interior painting $80,000 community -moms $80 008 -Kitchen upgrades $100,000 -Interior painting $50,000 -Fire Suppression System $TBD -Replace carpet in office areas $140,000 -Kitchen-upgrades $30,000 -ADA upgrades $250,000 -Replace roof $100,000 -Replace lockers $250,000 -Replace: generator $500,000 - Replace-windows $250)00 -Replaco lockcrc $25{410° - Interior painting $80,000 -ADA upgrades $TBD* 79 +-i.CA�tfORNIA � NATIONAL CITY =NCGUOB �TLO FY 20 Parks & Facilities Needs Assessment Facility Completed In Progress Tier 1 Tier 2 Tier 3 Tier 4 Fire Station 34 -Energy Savings Upgrades $470,000 -Replace tower doors $50,000 -Exhaust Vent System Upgrade $20,000 -Replace: handrails $60,000 -Interior painting $50,000 -Replace flooring $50,000 Fire Station 31 -Energy Savings Upgrades $30,000 -Exhaust Vent System Upgrade $20,000 Public Library -Energy Savings Upgrades $790,000 -A/C upgrades $400,000 ll -E-B A Drop cover $10,000 ARTS Center -Energy Savings Upgrades $260,000 Kimball Rec. Center -Info Kiosk $30,000 - Basement Improvements (HVAC / controls, windows, flooring, interior painting, lighting, ADA upgrades) $500,000 - Replace roof, repair trusses, wood framing $260,000 - Replace handrails $60,000 - Install 2 HVAC units, electrical upgrades $80,000 -Roof replacement $80,000 - ADA upgrades $TBD - Remaining ADA upgrades $TBD* -Interior painting $50,000 -Replace flooring $50,000 -ADA upgrades $150,000 80 .-,CALIFORNI/1 -• NMONAL Cirr "coos . FY 20 Parks & Facilities Needs Assessment Facility Completed Kimball Senior Center -A/C upgrades $50,000 -Energy Savings Upgrades $40,000 In Progress Tier 1 Casa de Salud Youth Center Las Palmas Municipal Pool -Energy Savings Upgrades $120,000 -Energy Savings Upgrades $70,000 -Replace electrical transformer, upgrade electrical room $450,000 Tier 2 -Rebuild pool filters $50,000 -Replace boiler for activity ppol $30,0 Eloctrical upgrades $30 000 -New A/C unit and controls $20,000 -Replace windows $20,000 -Kitchen remodel $20,000 -Rebuild-Pool-Filters $50408 -Replace pool deck drains, plumbing upgrades $40,000 -Pool support building improvements (replace toilets, urinals and sinks; replace flooring in showers and lobby) $100,000 -Replaster pool $220,000 Tier 3 -Replace wood eaves and beams $60,000 Tier 4 -Replace roof $150, 000 -Replace roof $50,000 - ADA upgrades $250,000 - Pool support building improvements (replace roof and ceiling tiles; reconfigure changing rooms; replace windows and exterior doors; stucco exterior: install HVAC units / controls and fire suppression system) $TBD* -Replastef pool-$480,000 -Replace pool deck $200,000 -Replace-t toile --for-activity pool $30;-000 -Replace fencing $TBD* ADA upgrades $TBD' 81 rtl1;T0CITy +NCO�Ot� FY 20 Parks & Facilities Needs Assessment Facility Completed In Progress Tier 1 Tier 2 Tier 3 Tier 4 El Toyon Recreation Center -Replace concrete columns $50,000 -Insti HVAC units and controls, elect• ical upgrades $120 ,000 Fire Station 33 Terminate lease -Vehicle access Terminate -tease on manufactured Improvements on building for Fire $100,000 manufactured Station 33 and building -for —Fire exercise option to Station-33-and purchase $54,000 exe cis&op 4ont to purchaco $54�89 -Replace roof, wood eaves, beams and windows $220,000 - Instalt HVAG-units-and controls elves $120,-000 -Replace flooring $60,000 - Stucco exterior $TBD* - ADA upgrades $TBD* El Toyon Multipurpose Facility Demo structures, site preparation and construction of new multipurpose facility for NCFD, NCPD and public use (e-Library, community room) $10,000,000 82 FY 20 Parks & Facilities Needs Assessment In Progress a.-C�I.IFOR NJy+_ N,pTI1NA►i -'!NRAOAk76A Facility Completed Camacho Recreation Center Tier 1 -Replace roof $120,000, -Replace 5 HVAC units fi controls $80,000 Tier 2 -Replace toilets, urinals and sinks $40,000 Replace window blocks and exterior doors $48400 $50,000 -Replace-roof $400T040 -Reialaoe-,5-1=1-VAG units / ceatrets $88T390 Tier 4 Tier 3 -Stucco exterior $TBD* Granger Music Hall -Relocation, site preparation and rehabilitation of Granger Music Hall to the Marina District as part of Pepper Park Expansion project $3,000,000 Kimball House - Replace roof $40,000 Santa Fe Rail Depot Stein Family Farm -Reconstruct / rehabilitate barn and accessory structure $300,000 - Replace roof $40,000 -Repair foundation $20,000 -Replace roof $40,000 83 FY 20 Parks & Facilities Needs Assessment Facility Completed In Progress Kimball PaHi -Energy Savings Upgrades $40,000 Tier 1 Las Palmas -Energy Park Savings Upgrades $70,000 El Toyon Park -Replace playground equipment $200,000 $6,134,000 Tier 2 - Replace playground equipment $200,000 - Replace basketball courts $100,000 $2,730,000 $1,110,000 $2,300,000 Tier 3 Tier 4 -Enhancements to Kimball Bowl $TBD* - ADA upgrades $TBD* -Replace park restrooms $700,000 - Install public safety cameras and associated infrastructure $100,000 - ADA upgrades $TBD* - Replace lighting, electrical upgrades for multipurpose athletic field $700,000 New pedestrian pathways, lighting and ADA upgrades $TBD* $6,470,000 $12,530,000 Total Tier 1 through Tier 4 - $22,410,000 84 �- CM-WORM/vet_ NATIONAL. CITp FY 20 Parks & Facilities Needs Assessment C1P Category Cost Estimate Proposed Funding Plan Facilities, Parks & Recreation Total Tier 1 (Urgent) Tier 2 (1-2 years) Tier 3 (3-5 years) Tier 4 (6-10 years) Facilities Maintenance Reserve (General Fund) DIF, Grants and Other TBD Civic Center Cit y ty Hall $1,890,000 $350,000 50 $460,000 $1,080,000 $350,000 $0 51,540,000 MLK Jr Community Center* $770,000 $0 $200,000 $50,000 $520,000 $0 $0 $770,000 Police Dept Building" $1,080,000 $250,000 50 $250,000 $580,000 $250,000 $0 5830,000 Fire Station 34 $160,000 $0 $60,000 $100,000 $0 $0 $0 r $160,000 Fire Station 33 r $100,000 $100,000 $0 $0 $0 SO $100,000 - $0 Fire Station 31* $80,000 $0 50 50 $80,000 $0 $0 ' $80,000 Public Works (1726 Wilson Ave) 50 $0 $0 $0 $0 $0 $0 r $0 Public Works (726 W. 19th St) $0 $0 $0 S0 $0 $0 $0 . $0 Public Library $40,000 $10,000 $30,000 $0 $0 $0 $10,000 ' $30,000 ARTS Center* $500,000 $0 $500,000 $0 $0 $0 $0 r $500,000 Kimball Recreation Center $650,000 $0 $400,000 $250,000 $0 $0 $0 r $650,000 Kimball Senior Center $210,000 $0 $0 $60,000 $150,000 $0 $0 r $210,000 Casa de Salud Youth Center $360,000 $60,000 $300,000 $0 $0 $0 $360,000 Las Palmas Municipal Pool* $640,000 $80,000 $360,000 $200,000 $0 $80,000 $0 r $560,000 Camacho Recreation Center* $290,000 $200,000 $90,000 $0 $0 $200,000 $0 ' $90,000 El Toyon Recreation Center $400,000 $120,000 $0 $280,000 50 $120,000 $0 ' $280,000 Granger Music Hall $3,000,000 $0 $0 $3,000,000 $0 $0 $0 ' $3,000,000 Kimball House $40,000 $0 $0 $0 $40,000 $0 $0 $40,000 Stein Farm $360,000 $0 $300,000 $20,000 $40,000 $0 $0 $360,000 Santa Fe Rail Depot $40,000 $0 $0 $0 $40,000 $0 $0 r $40,000 Kimball Park* $200,000 $0 $200,000 $0 $0 $0 $0 " $200,000 Las Palmas Park* $800,000 $0 $0 $800,000 $0 $0 $0 r $800,000 El Toyon Park* $800,000 $0 $100,000 $700,000 $0 $0 $0 r $800,000 El Toyon Multipurpose Facility $10,000,000 $0 $0 $0 $10,000,000 $0 $0 ' $10,000,000 Total $22,410,000 $1,110,000 $2,300,000 $6,470,000 $12,530,000 $1,000,000 $110,000 $21,300,000 Supplemental evaluations are needed, which will lead to additional cap'tal needs and costs 85 NATNCITY ,ram ,„„.. FY 20 CIP Preliminary Funding Recommendation 5-Year Capital FY City of National City Improvement Program (FY 2020 Project Funding Recommendations 2020 - FY 2024) Project Type General Fund (001) Facilities Maintenance Reserve (001) Sewer Fund (125) SB1 (RMRA) Gas Tax Fund (109) TransNet Prop "A" Fund (307) Library Capital Outlay Fund (108) Fire DIF Fund (325) Information Systems Maintenance Fund (629) Total Drainage improvements Infrastructure $ 500,000 $ - S - $ - S - S - $ - $ - 5 S00,CC-:: Traffic Monitoring / Safety Enhancements Infrastructure S 800,000 $ - 5 - S - S - S - 5 - 5 - 5 800,000 Facilities Upgrades - Tier 1 Projects Facilities 5 - 5 1,000,000 S - $ - S - S 10,000 S 100,000 $ - $ 1,110,000 Sewer Replacement / Upsizing Infrastructure 5 - 5 - 5 2,030,000 S - 5 - S - 5 - 5 - 5 2,000,000 Safe Routes to School Pedestrian and Bicycle Safety Enhancements Infrastructure $ - 5 - 5 - 5 - S 212,000 $ - 5 - $ - 5 212,000 Street Resurfacing Infrastructure 5 - $ - 5 - S 1,030,455 S 400,000 5 - 5 - 5 - $ 1,430,455 Traffic Signal Upgrades Infrastructure 5 - $ - 5 - S - S 600,000 $ - $ - S - 5 600,000 Communications Infrastructure Expansion Infrastructure 5 - 5 - 5 - S - S - 5 - 5 - S 100,C00 5 100,000 Total $ 1.300.000 $ 1,000,000 5 2,000,000 $ 1.030,455 S 1.212.000 S 10,000 S 100.000 S 100,000 S 6,752,455 ' Refer to individual project summary sheets for details on project improvments, budgets and funding sources. 86 �~'CALIFORNIA. NATI ONLA_L Cilry C-1" ac)v 'NcURpORATV DecFsion Items 87 �:e�4VR�R.�l1►► NAtioNALtint �- INpRb'ty -i Funding for Pension, OPEB Trusts, & CIP Post Employmerst Benefits & Capital Needs Sources of Fund Sale of Morgan & Kimball Towers Assigned Fund Balance Post Employment Benefits Total $4.94M $6.96M $11.9M Uses of Fund Capital Improvement Program (CIP) $4.4M Pension Trust $4.4M Other Post Employment Benefits Trust (OPEB -59%) $3.1 M Total $11.9M 88 NATEIN i1 CITt Decision Items 1) $ 11,900,000 Funding for Pension, OPEB Trusts, and CIP 2) $ 9,500 Additional Funding for SCEDC 3) $ 28,900 Cannabis Study 89 Next Steps ❖ Corrections, Adjustments, and Refinements ❖ Council -directed budget adjustments ❖ Additional follow-up at •:• regularly scheduled Council meeting or budget workshop on May 21st ❖ Budget adoption June 4th 90 Request for Direction ❖ Staff Recommendations ❖ Balanced funding for Pension, OPEB Trusts, & CIP ❖ Council -directed budget adjustments ❖ SCEDC Additional Funding ❖ Cannabis Study ❖ Other 91 CAL1FORRN1A:.P4F N"UONA --._ a .a:Jv , coRpor,Ar Public; Comments 92 A 4(L I F,0 NAL-CDT? mcoRro,A'rED Comments/Direction 93