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Home My WebLink AboutPOWERPOINT - WS-2_3rd QUARTER UPDATE FY 17-18 & FY18-19 GENERAL FUND TRIAL BUDGETFY 17-18 3RD QUARTER UPDATE & FY 18-19 GENERAL FUND TRIAL City Manager overview Background & Budget History FY 17-18 General Fund 3rd Quarter Update * FY 18-19 General Fund Trial Budget Overview General Fund Financial Trend FY 18-19 Capital Improvement Program (CIP) * Next Steps 2Z CITY MANAGER OVERVIEW r_", SIF • Be transparent and honest about the problem • Use a comprehensive approach for all funds • Establish a vision, develop a budget that promotes long term sustainability, implement best practices and utilize a combination of cost reductions and revenue increases. - 4 _ Z • Use a multi-year approach to achieve financial sustainability • Identify core services and focus on funding core services • Provide clear vision and direction from leadership • Engage in a collaborative approach - 5 _ Z • Prepare a long term financial forecast and plan to achieve stability and sustainability • Focus on funding core services • Identify new ways of delivering city services at lower costs • Identify revenue enhancements • Engage with key stakeholders - 6 /. BACKGROUND & BUDGET HISTORY �IF4�� Millions $240 $235 $230 $225 $220 $215 $210 $205 $200 $195 *Revenues Expenditures 238.9 233.7 229.8 _ —A Ar- — — 221.5 _Y-- 211.9 204.7 14/15 Projected 15/16 Forecast 16/17 Forecast 17/18 Forecast 18/19 Forecast - ;r;;;;; t;;;;z -St;;;;z on of May 17, 2016 Revenues Expenditures Millions $250 248.7 244.9 248.5 240.5 244.9 $240 235.9 239.3 230.1 Does not include: $230 233.4 - Water Transfer Reduction in FY 16-17 ($2.4M) in Rev. - Graffiti Abatement Transfer in FY 16-17+$1.2M in Exp. 228.4 - Loss of ICE Contract in FY 16-17 ($11.OM) in Rev. - Prior to PERS Discount Rate Announcement 12/21/16 COLA Increases in FY 17-18 $220 16/17 17/18 18/19 19/20 20/21 Forecast Forecast Forecast Forecast Forecast - ;r;;;;; t;;;;z -St;;;;z on of May 17, 2016 Millions $240 234.2 226.0 $230 220.2 $221.0 224.9* $220$226.4 211.5 illillllllllillillilil000-�illillillillillillilliillilli1111111111111IIIIIIIIIIIIIIIIIIIIIIillillillillillillilliillillillillillillillillillillilliillillilillilljllI $211.9 $210 205.7 $208.4 $200 $197.7 $192.3 $190 FY 12-13 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-18 Actuals Actuals Actuals Actuals Actuals Budget July 1* memIREVENUES EXPENDITURES Revenues Expenditures 2% 4% On average, total General On average, total General Fund revenues have grown Fund expenditures have at the rate of 2% since FY grown at the rate of 4% O 2012-13 *Excludes the $9.3M in One -Time Revenue since FY 2012-13 t , ' t ' FY 17-18 GENERAL FUND BUDGET N C $270.0 $9.3M Budget Gap (balanced w/the use of one-time monies) $250.0 $230.0 $210.0 $190.0 $170.0 $150.0 $224.9M RECURRING REVENUE $234.2M RECURRING EXPENDITURES 12 FY 17-18 TIMELINE OF MAJOR BUDGET June 2017: 1sc Budget Reading JUN July 5, 2017: Approval of POA Sworn MOU JUL July 5, 2017: Adoption of General Fund Expenditure Budget of $234.2M CHANGES September 19, 2017: Approval of Homeless Services Manager: $114K AUG August 15, 2017: Approval of US Marshals Agreement recognized $10.2M in Revenue and appropriated $5.9M in Expenditures SEPT December 2017: Approval of POA Non -Sworn, SEIU, CASA, PMA, & SAMA MOUs NOV DEC November 21, 2017: Approval of Two Combination Building Inspectors: $420K & Recognized additional Revenue of $420K Revenue Includes: US Marshals, Bureau of Prisons US Marshals of San Diego & 14 he Munici alities $27,439,860 +'s= Sales Tax $50,300,000 Property Tax 34,544,000 24,264,945 • Property Tax In -Lieu of VLF 30,966,459 15,650,151 • UUT 27,780,000 16,559,539 • .'. Business License 11,870,000 9,256,245 : • Hotel Visitors Tax 9,900,000 6,041,359 • Total Top 6 GF Revenues 165,360,459 99,212,099 60.0% Jail Revenue* 12,717,316 6,107,264 : • Medical Marijuana 3,500,000 1,722,523 ' Other General Fund Revenues 53,995,336 37,681,718 .• :'. Total Revenues $235,573,111 $144,723,604 61.4% Revenue Includes: US Marshals, Bureau of Prisons US Marshals of San Diego & 14 he Munici alities City Manager $2,802,902 $1,804,228 Non -Dept 14,598,981 10,540,246 .. •' Clerk of the Council 1,094,794 615,306 City Attorney's Office 3,226,160 1,854,472 Personnel Department 1,706,000 949,601 Finance & Management Services Agency 5,575,056 3,827,351 .: Bowers Museum 1,476,130 1,095,504 Parks and Recreation Services Agency Police Department 20,006,850 121,796,278 14,276,684 89,367,510 '. Fire Department 50,417,145 40,575,009 (includes 1 mo. Advanced pmt.) Planning& Building Agency 10,526,100 7,361,650 .• •' Public Works Agency Community Development Agency* 6,847,195 661,431 4,646,823 458,843 •' . • TOTALGENERAL FUND $240,735,022 $177,373,227 73.7% * Excludes Greater Santa Ana Vitality Agreement -$200,864 15 Revenue $232.2M Expenditure $240.3M Difference ($8.11VI) Adult -Use Retail Revenue (January—June 2018) $2.0M Projected Year -End Deficit ($6.1M)* *Based on Adult -Use Revenue & Management of Departmental Expenses �^-- 16 City Manager's Office 10 3 0 3 0 City Attorney's Office 15 2 0 2 0 Clerk of the Council 5 0 0 0 0 Community Development 47 1 7 8 0 Finance & Management Services 104 12 4 16 0 Information Technology 17 0 6 6* 0 Personnel Services 25 0 5 5 0 Planning Building 72 9 0 9 2** Police Department 631 95 0 95 55 PRCSA & Library 74 4 2 6 0 Public Works Agency 167 1 40 41 0 Total 1,167 127 64 191 57 Currently filled by contractual services **Two Code Enforcement Officers Pending Fee Study 1,7 FY 18-19 GENERAL FUND TRIAL BUDGET OVERVIEW rA L-Iro�� 0 g $270.0 $250.0 $230.0 $210.0 $190.0 $170.0 $150.0 PRELIMINARY FY 18-19 GENERAL FUND BUDGET $17.1M Budget Gap* $240.8M RECURRING REVENUE $257.9M RECURRING EXPENDITURES *$16.9M Budget Gap Presented on February 5th 2018 Council Work -Study Session u Additional $150K for New Payroll Manager Position _ 19 Projected PERS Increases $5.9M 2017-18 MOU Increases Strategic Plan Funding OCFA & CARE Contract Increases Additional Type II Jail Funding* Additional Workers Comp. Funding Health Insurance Increases Addition of Payroll Manager $3.1M $2.5M $2.OM $1.2M $1.0m $746K $150K nsf*, *2017-18 included partial year funding -City Council Action August 2017 20 Structural Deficit Ongoing Cost Reductions Ongoing Revenue Increases Use of Unallocated Fund Balance Use of One -Time Revenue ($17.1)* $4.8M $3.1M $6.9M $250K Remaining Deficit ($2.05M)** *Original deficit of $16.9M plus $150K for new Payroll Manager position **May be addressed by preserving the $9.3M use of unallocated fund balance in FY 2017-18 J 'r 21 Ongoing Cost Reductions $4.8M • Departmental Budget Impacts ($2.11M) • Cost Saving Strategies (9mos value - $1.51M) • Reducing Strategic Plan Funding Level ($700K) • PERS Safety Prepayment Savings ($500K) Ongoing Revenue Increases • Commercial Cannabis ($2.6M: 1/3 of projected amount) • User Fee Study ($400K partial year) $3.1M 0 • Ad; rtlSing�Marketing ClpportunitleS ($100K Employee Recommendations) 22 Police Department: $1.37M • Ongoing Cost Reductions: $883K • $424K: Seek School District Cost Sharing (50%) the Crossing Guard Agreement • $200K: Aramark Contract Savings (bids came in lower than anticipated) • $116K: Deletion of five part-time Correctional Services Officers vacancies or the equivalent of two FTE • $93K: Deletion of two Correctional Records Specialists vacancies (Replaced with four part-time positions) • $50K: Security Services at the Police Building's South Entrance no longer needed • Ongoing Revenue Increases: $485K • $198K: Additional Parking Related Revenue • $287K: Reimbursement of School Resource Officer— OCSA Parks & Library: $270K • $80K: Seek alternative funding for 51K and Plaza Navidena events • $50K: Closing of the Library on Sundays • $50K: Reduce four part-time vacant positions assigned to Summer sport programs • $50K: Reduce landscape maintenance contract services • $40K: Seek alternative funding for Catalina trip or reduce trip costs by 50% 23 Planning & Building: $169K • $156K: Reduction in contract services budget • $13K: Reduction in operating materials & supplies Public Works: $101K • $101K: Reduction in utilities as a result of savings from Streetlight Project All Other Departments (City Manager, City Attorney, City Clerk, CDA, Finance, HR): $240K • Reductions in various line -items: contract services & personnel costs tied to position reallocations. City Manager's Office $40K City Attorney $53K City Clerk $16K Community Development $12K Finance $95K Human Resources $27K 24 Additional Budget Requests: • Three Parking Control Officers (cost offset by additional revenue) • Reallocation of Positions (Litigations Asst. to Paralegal, Sr. Office Asst. to Exec. Sec. to the Chief, etc.) • $20K Restroom maintenance twice a day at City parks • November 2018 Election Costs - $325K (one-time)* • Additional General Plan Funding - $250K (one-time)* • Matrix/Time Entry System Upgrade — $400K (one-time)* * Use of $1.01VI from Agency Deposits (Fund 98) • Quality of Life Team & Homeless • More Youth Programing • Funding to Enhance Economic Dev. • Additional Police Officer Recruitments • Maintain Reserve Policy Funding levels • Facility Deferred Maint. & Vehicles • Information Technology Infrastructure • Enterprise Fund Compliance • Worker's Compensation • Liability Increases • City Hall Seismic Retrofit • SARTC Improvements • PERS Challenges Average annual increase of 13.7% over the next five years $80.0 $70.0 $8.5M increase $7.2M $60.0 increase $52.3M $50.0 $45.1M $40.0 $30.0 $20.0 $10.0 $7.2M increase $14.1 $15.8 $7.1M increase $16.9 $6.1M increase $75.1M $18.OM $19.4 Employer Contribution FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 J Estimated Projected Projected Projected Projected Projected 27 Non -General Fund ■General Fund FY 18-19 BUDGET MEETINGS & PRESENTATIONS r",- 4 5ANT,� Held 5 Budget Community Meetings (Budget, Strategic Plan & CIP) March 29, 2018 - Sunshine Ordinance Meeting April 4, 2018 - Santa Ana Lawn Bowling Club April 11, 2018 - Madison Elementary School April 12, 2018 - Adams Elementary School April 26, 2018 - Com -Link Meeting Total of 170 participants • Need for diversity of youth programs • Invest in youth • Shift funding from public safety to youth programs • Need for additional parks • Additional community programs • Addt'I neighborhood street improvements • Address parking issues • Address homelessness • Need for affordable housing �� 29 Held 10 Presentations with City Employees and Union Leadership February 20 — POA Leadership February 28 — Police Department Senior Management Team March 2 — CASA Leadership March 7 — Open to all employees. Held at Council Chambers March 7 — Open to all employees. Held at the City Yard March 8 — Open to all employees. Held at the Police Community Room' March 14 — Open to all employees. Held at Council Chambers March 15—SEIU Leadership March 15 — Open to all employees. Held at the Police Community Room April 30 — Open to Police Department Staff * Presentation invitation sent to all City employees Note: Two additional meetings will be held on Wednesday, May 2nd for the Police Department Staff 30 GENERAL FUND FINANCIAL TREND �Ir4�� Millions $300.0 $290.0 $280.0 $270.0 $260.0 $250.0 $240.0 $230.0 $220.0 $210.0 FY 16-17 Actual Revenues }Expenditures $240.3 $257.9 $240.8 FY 17-18 FY 18-19 Projection Trial Budget * Includes Projected Adult -Use Retail Revenue FY 19-20 Forecast $278.3 $240.0 FY 20-21 Forecast Note: Revenues decreases in FY 19-20 due to the expiration of the August 15, 2017 US Marshals 2 -year 32 short-term agreement GENERAL FUND (FUND 11) 0 $20.0 0 $10.0 $(10.0) $(20.0) $(30.0) $(40.0) $(50.0) OVER/UNDER $13.8 $11.8 FY 13-14 FY 14-15 FY 15-16 FY 16-17 FY 17-I8 FY I8-19 Actuals Actuals Actuals Actuals Projected * Forecast FY 19-20 FY 20-21 Forecast Forecast 2017/18 Preserve the $9.3 -Preserve the $9.3M -Identify revenue enhancements -Begin to Define core services & service delivery model changes 2018/19 p� Bridge Year -Limit use of one- time monies -Minimize structural cost increases to base budget -Prioritize core services -Begin to Implement service delivery model changes r -Continue implementation of organizational changes -Budget to reflect City's core services and service delivery model changes -Limit use of reserves 2020/21— Balanced -Achieve Budget Stability 34 Structural Deficit 2017/18 Preservethe $9.3 ($9.3M)* 2018/19 Bridge Year ($17.1M)** r ■ 12019/20 2020/21 msformational Balanced ($31.91Vi, ($38.3M) *Structural deficit in 17/18 addressed through the use of Unallocated Fund Balance "Original Original deficit of $16.9M plus $1501(for New Payroll Manager Position ***Maybe addressed by preserving the $9.3M ****Use of economic uncertainty ($3.8M) & Operating Reserves ($4.OM); operating reserve level will be at 15% of FY 18-19 projected expenditures 35 i_r—////////////////////"ArZd $7.9M $16.21M Revised Deficit - ($24.OM) ($22.1) Cost-Savings/or $0 $7.9M Ongoing $16.2M Ongoing $22.1M Ongoing Revenue Enhancements Use of Unallocated $9,3M $6.9M $0 $0 Fund Balance Use of One -Time Revenue 0 $0.25M 0 0 (Nexus Dev.) Use of Operating $0 $0 $7.8M**** $0 Reserves/Economic Uncertainty Remaining Budget Gap 0 ($2.05M)*** 0 0 *Structural deficit in 17/18 addressed through the use of Unallocated Fund Balance "Original Original deficit of $16.9M plus $1501(for New Payroll Manager Position ***Maybe addressed by preserving the $9.3M ****Use of economic uncertainty ($3.8M) & Operating Reserves ($4.OM); operating reserve level will be at 15% of FY 18-19 projected expenditures 35 i_r—////////////////////"ArZd FY 18-19 CAPITAL IMPROVEMENT PROGRAM (CIP) rp � 5ANT� rA L-Iro�� New Pacific Electric Park Chestnut Avenue Bike Lane WIC Assessment District New Galvanized Bus Shelters 37 ■ Street Improvements ■ Traffic Improvements Utility/ Drainage/ Lighting Improvements City Facilities 38 =�///////////////////////. • Pavement Management • Project Development • Right -of -Way Management • Alley Improvements • Residential Street Repair • Local Preventative Maintenance (Slurry Seal Resurfacing) • Alton Avenue Rehab: Raitt to Bristol • Bristol Street Rehab: MacArthur to Railroad • Bristol Street Improvements: Warner to St. Andrew • Main Street Rehab: Dyer to Warner • Raitt Street Rehab: McFadden to Civic Center • WarnerAvenue Improvements: Oak to Grand S9, • First Street Pedestrian Improvements • Bike Lane Project Development • OC Streetcar • Traffic Management Plans • Traffic Safety Project Development • Garden Grove / Memory Lane Traffic Signal Synchronization • Main Street Traffic Signal Synchronization • Traffic Signal Equipment Replacement orb • Bristol Protected Bike Lanes: Edinger to 161 • Citywide Bike Racks and SARTC Bicycle Center • Civic Center Bike Boulevard: Broadway to Santiago • Edinger Protected Bike Lanes: Santa Ana River to Bristol • Hazard Protected Bike Lanes: Euclid to Harbor • Lincoln Pedestrian Trail: Park Lane to Santiago Creek th 2�r ISanta Ana and 5 Protected Bike Lanes •Various Safe Routes to School Projects 140 • Bristol Phase 3A Sewer Main Improvements • Santa Ana Memorial Neighborhood Sewer Main Improvements • Warner Garnsey Sewer Main Diversion Improvements • Willard Neighborhood Sewer Main Ci • Bristol Phase 4 Water Main Improvements • Cambridge Pump Station Entry Improvements • D-03 Channel Improvements at Alton Avenue • Washington Well Site Improvements • SA -2 Vault Improvements • East Station Security Fencing Improvements • Street Light Re- wiring and Repairs Improvements I 41 \<00M • Pool Enhancements: EI Salvador, Memorial, EI Salgado and Santa Anita • Playground Equipment: Chepa's Park r1 • Park Improvements: 6th and Lacy, Roosevelt/Walker • Rosita Park Ballfield Lighting Renovation • Santa Anita Center Expansion -Substation • Santiago Park Gas House Area Improvements • Security Lighting: Sandpointe Paseo, Thornton Park • Thornton Park Electrical/Restroom • SA Zoo Improvements: Master Plan adoption and Amazon's Edge Giant River Otter Habitat $TBD J �, $100,000 T 43 ■ Street Improvements ■ Traffic Improvements Utility/ Drainage/ Lighting Improvements i City Facilities 44 =�///////////////////////////////////////////zzArI Profen Numbrr CITY OF SANTA ANA - PUBLIC WORKS AGENCY I artupoeWtS/19/3s CAPCIAL IMPROVEMENT PROGRAM - EXECUTIVE SUMMARY SCHEDULE MONTH OF MARCH 2018 timeaemp Mme mr o3nana P jecewma CcuMl ".I TmeI6eeked ,Wed MznzTr foal at mta 4= w a. n] Xaa a= M ¢s nl mm a= ¢a [ r g P IwL r als�pinl oll dila NI. Ila s =IF N a I I Al sla NIa Ni 12,6730 17,6730 176889 i"a TRD Y6i6RB TEND "0 "0 Rd NJA NIAN l" 1"262 I6dg6C ➢21-6910 19-7521 168811 186907 154935/3LYA3 1]A0M 53499E 1Y6]61 134)81 5]4863 I56127 1"02vxnurie 18490f 184"1 166869 1742M 1]4890 1]6801 1]6M5 I74W3 PSANNING gpi Con Planninna-G.ranGo Summary Santalw Garden Grove SheeNar Clrculinki Element 0p6am rari Llmew SRTSPIart• FaIMew St TnN1[Slgrtal SynrNenUMlan lf:eata Mesa lsatll Bear Stncen a 5i striwer8rTafficS NMaMinalea]) lst/IarbM 51N,Afte otheI 1gnal MclotAece Walnage Master%an AhernaVve lmpvavement Assessment Flower Street Sewer Main lmpmvemen to Clvlr Center � l%lh f 5og Waoriniue Water Mahborhood Siwer ainCrSeth ihM1Sel WasAln(ten 5quarc NNghbor5aeE 5ewery Main lmgavemmis Wamex�Maln SP dab St Water Maln lmprw¢menh [ESIGH design Prc]iii -Lard Summary 5R-55 WItlenlnBlldd3b 651 IOCTAIeall I-5 NOV Central Learadd. oar leant Nomdern Cae..RepaeCmcct I Clan-Mort2Cabtlllo Part dnnlbuafonrrete Repair Prn]era/NomMORnrixed nice improvement PmgramlFY l]/IBI ReAEen[Ial Sheet Repay Program tFY 171181 Maln Seem Rehabilhtatlon(EdinB rtolstl fecal Sheet Preven[mbe Malnegnante(FY 17/3B1 Rehatill OIM Search nin h.Coined-hap rear. nBCMeten-Talrvlew 11 St i[ Citic Cent rto Wemen6 Btlstgl St mi �Civlc Center to Washington (Pin 3AV BXitoIS[fmptmementi-Werner to 5t Gn8rew lMlp_91'= Grantl AWmproa Mhor SUP.Int rin l eric,) 6ristol Sheet and Memory Une ln[ersedlon Widening Fall MewBridle Street WlEercing antl "tltlge Replacement 9th to I6aly Walter AV Improvements- Malntb raRlPh it pro .emenu Warner Avfm Oak to Grantl MY Trask Signal rister Ai Headll Traffic Signal SynM(OCrA Lead) Farlid Signal 1taffacS raes Cure Carroartl.Berai518ml-(Ore. .,1 Wlc( alba Bled Beerneed •IBmesI to5a Tied IT Pr Tail! Mpe Imes 3A fllvx Troll to BNSMl1' Enlarger Andrei Ilrcoln Peiealnan Tralle sueovn s 3,3,35 ueaio ib zaeWu Ifi rnmu '3,4,5,6 r"mews'"-' E awaww 3,5,5 [umu ffi gym"°ae 5 areaivao¢ 1,2 5 a°a"e°^n¢ 3 mo sun.oe ] adoi - 12,3 iutrSaw 3 —i Yb ,u"^iu P6 uwtu ib uvv 3 3,5,5 " ucurcx 3,5 wo^ra l,) sweueu 5 I6M61u wul[ Y, 3,3$;gppg,.' 3 "uem[x n 3 1 ab6urzx ], 2, 3, St aepenbr.' Y6 tamewlux 3 tx[mu 3 wiutrc 4,6 usutu g uruv S$319,000.00� $6,Gg8,8RP.[O $500,000.00 $615,ORO.BV $25G,On8.00 $40,tlN.00 $]26,OW.CO $lS",000.CO $I50,000.GO $,650,000.00 $LS",ORO.CO $IOR,OG].M SIM,SS),38).OR $0,00 adi $600,000.00 $1,000,000[0 $I26,145.00 $1,Oii,6n6 CU 52,G6gMON $93{,0 m $],20Q62600 513,120,63fi.00 "'="g 'M $5,839,625.00 5;,839,635.001 6 55,OIXL00 ffli $655, Im $306,00].[0 $3,BM,000.BO $Y2,008.00 ,0no.M ----------- --------------------- ----------- I I 19p% sr. _ — 96°b — — — — _ _ _ _ _ _ _ fWY � I _ ------------- -------------------- _ _ __-_ � 96°1. ------------- --------------------- t004' _ __________________ - ' -------------- --------------------- � •PenclinB Gram %nn'rgrr k oeaim Taxe Slrlra,tlTa9 'i Tss Ga�WmTffi, ",cares Pgl - l 45 i ///////////////////////////////////////////////. • May 15 City Council Work Study Presentation • June 5. 1St Reading of the Budget/CIP • June 19 - 2nd Reading of the Budget/CIP • July 1 New 2018-19 Fiscal Year Starts _ 46