HomeMy WebLinkAboutA - Proposed Budget - PowerPointI
May 23, 2017
Item WIWI '
liposed FY 20117-18
TF Meeting of Pthe City Counc lH
he _ mance, Committee
May 2 , 201 Y 3 7
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I I I Sources and Uses -All Funds
Summary of the FY 2017-18 Proposed Budget
All Funds (Millions)
Operating Budget
2016-17
Revised
Expenditures
$276.6
2017-18
Proposed
Expenditures
Variance
1.9%
CI P Projects
$76.8
$25.1
-67.3%
Total Budget
$353.4
$306.9
-13.2%
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I I I City Charter Requirements
Requires Budget Budget submittal to Council at
least 35 days prior to July i
• Requires public notice and public hearing
• Council shall adopt budget on or before
June 30
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III FY2017-i8 General Fund Revenue (millions)
■ Property Taxes $99.9
■ Sales Tax $35.9
Transient Occupancy Tax $z4.3
__i Other Taxes $8.3
All Other Sources $40.9
FY 2017-18
Total $209.3 million
FY ao16-17
Total $201.1 million
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I I I Assessed Valuation Growth
$60,000,000,000 ____
Percentage change over prior year 6.5%
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I I I Sales Tax Revenues
Note: FY 17 decrease due to one-time receipt of $2.7 million in FY 16. Net of a one-time increase, Sales Taxes
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I I I Budget Priorities
Fiscal Year 2017-18
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Key Priority: Invest More in Harbor and Beaches
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Balboa Island Seawall Replacement - West End
$ 4,971,225
Balboa Island Seawall Cap - North / South Sides
$ 2,000,000
Newport Pier Platform and Piles $ 1,3o6,o99
American Legion Bulkhead
$ 1,000,000
Grand Canal Dredging $ 8o0 000
Ocean Piers Inspection and Maintenance $ 7o6,791
Harbor -wide Dredging / Planning
$ 500,000
Bilge Pump -out Dock / Oil Collection Centers
$
200,000
Beach and Bay Sand Management
$
150,000
Harbor Maintenance / Minor Improvements
$
150,000
Seawall Extensions
$
150,000
Abandoned /Surrendered Watercraft Abatement
$
100,000
Harbor Tide Gauge
$
50,000
TOTAL
$ 12,o84,115
---^ STRUCTURAL RETROFIT, TOP OF WALL +8.5 FT NAVD88 Q
- NEW SEAWALL, TOP OF WALL +9.0 FT NAVD88-
�--� CAP EXTENSION, TOP OF WALL +9.0 FT NAVD88
CAP EXTENSION, TOP OF WALL +8.5 FT NAVD88
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141 Key Priority: Provide Safety in the Community
Police Department
• i new Animal Control Officer
for a variety of needs
• New police car computers
Fire Department:
• Basic Fire Academy - training
for newly hired firefighters
• Additional set of ALS
Equipment to cover everyday
medical needs of
residents/visitors.
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■ General Government
H Public Safety
Community Development
L-_1 Public Works
Community Services
FY2017-i8 General Fund Proposed
Operating Expenditures
by Function (in Millions)
FY IMS -IR 0.3%
Non Departmental & Estimated Salary
Savings
FY Zoi6-r7
Total $192.6 million
Total $202.5 million 19
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IN
I Changes in Full -Time Positions
Full Time Position Eliminated
Dept
Library Clerk
Library
Groundsworker
RSS
Groundsworker
MOD
Groundsworker
MOD
Facilities Maintenance Technician*
MOD
* Checklist Item
Full Time Position Added
Dept
Deputy City Attorney (early 2017)
CAO
Budget Analyst
Finance
Building Inspector
CDD
Animal Control Officer
PD
Traffic Engineer
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IN 1 Other Staffing Changes
• City Attorney -various reclassifications
• Human Resources - addition of 0.5 part-time
Student Aide
• City Cleric - addition of 1.96 part-time
Department Assistant (Limited Term) and 0.5
part-time Records Specialist (Limited Term)
• Recreation and Senior Services -reclassify
one position
• Municipal Operations - addition of limited
term Intern, one reclassification of Water
Supervisor
• Public Works - Add o.5 part-time Technical
Aide and overtime staffing
• City Manager - reclassification of part-time • Police - Add o.96 part-time Community
position Services Officer
• Information Technology - various
reclassifications Net Staffing Change - Up 5.58 FTEs part-time
and no change in full-time, if checklist adopted.
FYI, harbor mooring admin not included in these
allocations yet.
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IN
Salaries & Benefits
Most significant changes
• MOU Contracts+$2.6M
• Salaries T 3% or$2.15M
• Unfunded Pension Liability and normal cost
payment T $9M or 37%
• Employee Contributions to PERS T $555K to
sioM per year
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Finance
City Manager
Human Resources
City Attorney
City Council
City Clerk
Budgeted Expenditures by Department
U FY 17 Revised 0 FY 18 Proposed
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Harbor and Beaches Capital Funding Sources
$18,000,000
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$5,000,000
$6,000,000
$4,000,000
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Fiscal Year 2017-i8
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An important note
• The proposed FY 17-18 budget's GF Contingency Reserve:
- Is set at 25% of GF's operational expenses by Policy F-2
- Goes from $47.5M (16-17) to $48.5M (17-18); but this amount...
- Excludes the Additional Discretionary Pension Payment (-$gM)
from the 25% calculation.
• Policy F -Z should be adjusted to accommodate this.
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Phase-in of New Amortization Bases
$18,000,000
s16,000,000
The Simple Message $14,000,000
of this Complex
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Chart:
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Paying more ss now, $8,000,000
while we can, allows
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ramp -ups and phase- $2,000,000
ins
18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36. 37 38 39 40 41 42 43 44 45 46 47 48
0 2015 Loss 0 2o16 Loss ■'7.3'75% Discount ® 7.25% Discount El 7.o% Discount
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Normal Cost
Amortized Cost of Unfunded Liability
Total Annual PERS Cost
Employee Contributions
Net Employer Cost
Total Annual PERS Cost
Pension Payment History
(All Funds)
FY 2017
FY 2015
FY 2016
Estimated
FY 2018 Proposed
14,503, 234
14,899,906
15,837,180
16,178,468
12,791,284
21,524,369
24,701,593
33,871,716
27,294,518
36,424,275
40,538,773
50,050,184
7,430,028
8,401,598
9,469,380
10,024,552
19,864,490
28,022,677
31,069,393
40,025,632
27,294,518
36,424,275
40,538,773
50,050,184
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'.. Long Range Financial Forecast
Fiscal Year 2017-18
The Long Range Financial Forecast can be accessed at:
www newportbeachca. gov/financialinfo 39
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I I I What the Long -Term Plan Does
• Uses FY 18 Proposed Budget as Base Year (General Fund Only)
• Demonstrates the impact of various pension funding scenarios - Zo YR level $ payment
at 7% is active
• Captures all transfers, set -asides, and contingency reserve funding commitments
• Prior year revenue and expenditure, along with cyclical economic, trends informed go -
forward growth assumptions. Forecast uses historical average growth rates.
• Most sensitive to changes in the largest revenue and expenditure categories
• Take-aways:
• Financial commitments seem to be sustainable over the long-term, but only based
on our assumptions
• Especially in out years, Year -Over -Year changes may deviate significantly, positively
or negatively
• A good tool, but one to use cautiously.
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Long -Term Financial Plan Overview (Scenari02)
GENERAL FUND REVENUES, EXPENDITURES & ACCUMULATED SURPLUS/(DEFICIT)
$(100.0
2018 2019 2020 2021 2022
2023
2024 2025
2026
2027 2028
2029
2030
2031 2032
2033
2034 2035 2036 2037
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
E- IANNUALSURPLUS/(DEFICIT)
$(4.0)
$(3.7)
$(4.2)
$(4.2)
$(4.5)
$(3.8)
$(2.3)
$(0.8)
$0.0
$0.9
CUMULATIVE DEFICIENCY
$(4.0)
$(7.7)
$(11.9)
.$(16.1)
$(20.5)
$(24.3)
$(26.6)
$(27.4)
$(27.4)
$(26.5)
SURPLUS BALANCE
$-
$-
$_
$_
$_
$_
$_
$_
$_
$_
REVENLIES
$221.3
$220.6
$229.2
$237.9
$246.9
$256.3
$266.0
$276.2
$286.7
$297.7
- -EXPENDITURES
$225.3
$224.3
$2.33.4
$242.0
$251.3
$260.0
$268.3
$276.9
$286.7
$296.8
---CUM. SURPLUS/DEFICIENCY TREND
$(4.0)
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$(11.9)
$(36.1)
$(20.5)
$(24.3)
$(26.6)
$(27.4)
$(27.4)
$(26.5)
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I I I Conclusion
Fiscal Year2017-i8
45
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"We're in pretty good shape (but.... )"
• The Challenging News:
— Watching sales tax and TOT trends closely
• Concerns re: international travel
• Retail purchasing is changing & will continue to change
— T Pension expenses are challenging to sustain.
• Significant economic downturn = major hit on these plans
• If PERS falls short of 7%, that's a hit, too.
• Statewide pension reform is vital for many, many cities
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I I I What's Next?
June 8, 2 01'7 Final Finance Committee Meeting to Review and
Recommend Budget to CC
June 13, 2017 • Public Hearing and Budget Adoption (CC)
• Adoption of Gann Appropriation Limit (CC)
• Budget Checklist Review & Approval
• Special Events Allocation
• Report on District Discretionary Grants
July 1, 2017 New Fiscal Year Begins
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