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Home My WebLink AboutSS4 - Budget Highlights 1 & 2 - PowerPointMay 8, 2018 Item No. SS4 1_ _ FY 2018-19 PROPOSED BUDGET City Council and Finance Committee Joint Study Session May 8, 2018 www.newportbeachca.gov/budget KEY BUDGET DATES April 10, 2018 Budget Disseminated to Council (CC) & Finance Committee (FC) April 12, 2018 Budget review (FC) May 8, 2018 Portions of Proposed FY 19 Operating July 1, 2018 Fiscal year 2018-19 begins 11 Budget and CIP presented (CC) May 10, 2018 Budget review and inquiries (CC) May 22, 2018 Set date for public hearing and joint study session with FC (CC) May 24, 2018 (FC) Budget recommendation to CC June 12, 2018 Public hearing and budget /Gann appropriation limit adoption (CC) July 1, 2018 Fiscal year 2018-19 begins 11 Citizen Transparency Portal • Easy public access via any internet browser dynamic data for FY 19 and historical searches • Transaction details for granular inquiries • Data export options via Excel, PDF or image files 4 719 NewportOpen Budget _ gpgl 57� 2567 ' 3 d- 50 .4j7s ,A61 a ... . zoe� 7A'21 73t 7AI 105 j7A www.newportbeachca.gov/openbudget Static Budget Documents: PDF Budget Documents Department Quick Links Salary Information Employment Contracts Budget News ,1315 S75 355 `'0 001 C,4�IFORN�A $ 2.,70 A �1 `A21 73ti 7A1 i0`' 12A xx www.newportbeachca.gov/budget 5/8/2018 2 GENERAL FUND SOURCES AND USES SOURCES UNRESTRICTED FUND BALANCE FY 15-16 Surplus FY 16-17 Surplus REVENUES Less: Restricted Revenues Transfers -In TOTAL SOURCES USES Operating Expenditures Transfers Out Contingency Reserve Increase(Decrease) TOTAL USES UNRESTRICTED RESOURCES 2017-18 2018-19 Revised Proposed Budget Budget $ VAR % VAR 10,570,638 - (10,570,638) -100% 12,485,990 12,485,990 - 0% 209,182,950 215,599,044 6,416,094 3.1% (718,122) (147,000) 571,122 -79.5% 8,310,304 8,262,571 (47,733) -0.6% $ 239,831,760 $ 236,200,605 $ (3,631,155) -1.5% 205,282,851 208,372,600 3,089,749 1.5% 21,734,878 24,759,000 3,024,122 13.9% 328,041 2,241,854 1,913,813 583.4% $ 227,345,770 $ 235,373,454 $ 8,027,684 3.5% $ 12,485,990 $ 827,151 $ (11,658,839) -93.4% PROPOSED USE OF 2016-17 SURPLUS Long -Term Infrastruture Obligations TOTAL Harbor & Beaches Master Plan 4,000,000 4,000,000 Neighborhood Enhancement Projects 1,000,000 1,000,000 Pensions 3,000,000 3,000,000 General Liability 3,000,000 3,000,000 Contingency Reserve 750,000 750,000 1,500,000 5,750,000 6,750,000 12,500,000 46% 54% ❑e 5/8/2018 3 $60,000,000,000 $50,000,000,000 $40,000,000,000 $30,000,000,000 $20,000,000,000 $10,000,000,000 C- REVENUE SOURCES ■ Property Taxes $104.3 20% * Sales Tax $34.7 44* 5% Transient Occupancy Tax $22.8 11% Other Taxes $11.8 ■ All Other Sources $42.0 16% ASSESSED VALUATION GROWTH 0 6-6% 6.6% I � I I I I . . . I I O 5/8/2018 4 MENNEN I � I I I I . . . I I O 5/8/2018 4 $120,000,000 5100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 PROPERTY TAX CHANGE YEAR -OVER -YEAR Arnnprty Taw OaN dap �-0a P�,��g 09 a2�9.10 P`t�p1p 11 P&�a11.1Z P%1,o2.13 Pc�p1g 1a 67-a-15 P61015.16 P6�p1�11 P?z,,i , 10 g�1g 9(09 5/8/2018 5 HOME SALES VALUE HISTORY CITY OF NEWPORT BEACH Detached Single Family Residential Full Value Sales (01101!2015 - 31311201 8) Year Full 201501 Value Sales 206 Average Price Median $2,364,236 Price Median $1,807,000 % Change 201502 332 $2,691,588 $2,001,000 10.74% 201503 290 $2,631,378 $1,975,000 -1.30% 201504 226 $2,628,892 $2,050,000 IN% 201601 229 $2,621,991 $2,100,000 2.44% 201602 303 $2,722,723 $2,200,000 4.76% 201603 292 $2,785,406 $2,157,500 -1.93% 201604 270 $2,842,275 $2,100,000 -2.67% 201701 241 $2,889,362 $2,280,000 8.57% 201702 320 $3,014,368 $2,362,500 3.62% 201703 312 $3,074,623 $2,482,500 5.08% 201704 271 $3,334,986 $2,456,500 -1.05% 201801 229 $3,081,579 $2,525,000 2.79% 1111111111111111110 O $120,000,000 5100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 PROPERTY TAX CHANGE YEAR -OVER -YEAR Arnnprty Taw OaN dap �-0a P�,��g 09 a2�9.10 P`t�p1p 11 P&�a11.1Z P%1,o2.13 Pc�p1g 1a 67-a-15 P61015.16 P6�p1�11 P?z,,i , 10 g�1g 9(09 5/8/2018 5 SALES TAX CHANGE YEAR -OVER -YEAR $40,000,000 T- $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 Tax 12.3% I ' I10111, I1 ■ ■ ■ ■ ■ 1 1�-x.08 P�1�a.09 P�1a�g.10 P�1p1p-11 P�1p11.11 P�1p11.13 P�1a1g.1q P�1p1q.'L5 P�101g.16 p�,�p1y-1� P 1p1�.Sa �o �1g4�°p°Sed CALIFORNIA DEPARTMENT STORE SALES YEAR -OVER -YEAR PERCENTAGE CHANGE (ADJUSTED FOR PAYMENT ERRORS) 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 5/8/2018 go TOT CHANGE YEAR -OVER -YEAR GENERAL FUND REVENUE 5/8/2018 7 FY 17-18 FY 18-19 REVISED PROPOSED $ VAR % VAR Property Taxes 100,146,449 104,366,653 4,220,204 4.2% Sales Taxes 34,498,007 34,678,282 180,275 0.5% Transient Occupancy Tax 21,137,676 22,838,484 1,700,808 8.0% Other Taxes 11,311,956 11,830,000 518,044 4.6% Licenses and Permits 4,489,288 5,021,451 532,163 11.9% Intergovernmental 2,450,939 1,756,055 (694,884) -28.4% Charges for Services 20,106,992 20,139,328 32,336 0.2% Fines & Penalties 3,870,900 3,881,907 11,007 0.3% Use of Money & Property 10,200,107 10,512,948 312,841 3.1% Other Revenues 970,636 573,936 (396,700) -40.9% Total General Fund $ 209,182,950 $ 215,599,044 $ 6,416,094 3.1% 5/8/2018 7 Proposed 18-19 Budget - $300,000 • Install LED Bulbs in all remaining 1,796 City Owned Post Top Street Lights Replace Blub: — $130/St Light Est. Project Cost — $233,470 Est. Payback — 2.5 Years -------------------- Design Replacement of 3 Remaining Series Streetlight Circuit's in EastBluff Area (for construction in 19-20) r_- nen-Tnnnn 5/8/2018 M. Residents have asked City for Street Lighting Upgrade - Prior Project Spyglass Hill Area - 243 St. Lights Built - 1973 Replace Blub: — $130/St Light Est. Project Cost — $31,590 Replaced Fixture: — $1,250/St Light Est. Project Cost — $303,750 Est. Payback 7.5 Years HarborView Hills Built - 1960 Post Top Street Lights Replaced Entire Fixture 2009 (bulb only replacement not available) Cost then: $1,580/fixture Resident Requesting Several Refurbishment Items • Replace/Relocate Community Shed (by HOA) • Install Raised Planter in Front of Park w/landscaping • Repair /reconstruct Rock Seat Walls • Replace Sand with Rubberized Surface • Replace Swing -set • Other Need to: • Define/Finalize Work Scope • Put a Plan Together • Bid and Construct Maybe $80K to $150K Suggest Re -Appropriating $200k from current Veterans Park Project (page 47) into Landscape Enhancement Program (page 19) to address. (would do this as a Checklist Item) 5/8/2018 M OVERCROSSINGS/PARKING '7'.1 7:1_ ! -710pe` 4, Develop and Approve Concept Plan that will: • Provide necessary parking & access to Sunset Ridge Park allowing full planned Park utilization by sports groups and public • Improve pedestrian, cyclist & vehicular safety through intersection • Address current and projected intersection vehicle deficiencies • Improve Level of Service (LOS) of Intersection (min LOS D per General Plan) LOWER SUNSET VIEW PARK — OVERCROSSI NGS/PARKING Park Parking Need - 161 stalls min (64 existing stalls + 97 SRP EIR) Intersection Operation - Currently Operating at LOS "D" (Level of Service) - 2006 Forecast Operation at LOS "F" in 2020 Current Daily Volumes: 48,000Vehicles on Coast Hwy 21,000 Balboa Blvd (South Leg), 24,000 Superior Ave (North Leg) 600 Pedestrians (470 Crossing Coast Hwy) Heavy Pedestrian use 90 Cyclists (40 Crossing Coast Hwy) Pedestrian Signal Timing Impact - Coast Hwy Crossing • Current Req. Cross -time: 46 seconds. Future Code Req: 53 seconds • There are Pedestrian signal request each cycle during peak hours ➢ Operational Benefit by Removing at -grade Pedestrian Crossing: 20-40 seconds per cycle (15-30% of cycle length) 5/8/2018 10 Thoughts Going forward: • Determine whether to build larger surface parking lot (-100-120 spaces) with less/no Recreation Amenities; or two story parking structure (161 spaces) and maybe more Recreation Amenities. Would like Council's thoughts on this after presentation. • Design & Approve Entire Concept (2 Bridges, parking, PCH/Superior Intersection) — Develop Conceptual Design w/Community. Then City Council Review • Design, Permit and Construct Project in Two Phases — Phase 1: - Construct Superior Ave Pedestrian/Bike Overcrossings - Reconfigure Some Ped/Cycle pathways in Sunset Ridge Park — Phase 2: - Secure Construction Funding - Construct New Park Parking Lot (possibly part of Phase 1) - Construct West Coast Hwy Intersection Widening - Construct West Coast Hwy Pedestrian/Bike Overcrossings _ Phase * Superior Bridge y 6! rI.' /:'..•v {y. � ' 1. - Phase II PCH Bridge, Intersection widening Park Parking Lot 5/8/2018 11 Preliminary Rough Cost Estimates Phase One — Superior Bridge Environmental, Permits, Design, — $800,000 Construction — $2,900,000 Phase One Total — $3,700,000 Phase Two — PCH Bridge, Intersection Widening, Surface Parking lot Environmental, Permits Design —$900,000 Construction — $5,700,000 Phase Two Total -- $6,600,000 Project Total — — $10,300,000 (with surface parking lot) With parking Structure & Rec Amenity, add — $3,500,000 Project Rough Funding Estimates Phase One Cost — Superior Bridge — $3,700,000 OCTA Grant (awarded) — $2,350,000 FFP (Parl< Funding) — $1,350,000 Total — $3,700,000 Phase Two Cost— PCH Bridge, Widening. Surface Parking lot Possible OCTA Grants — $ Traffic Mitigation Fees (capacity Imp) FFP (Parl< Funding) — $ Phase Two Total $6,600,000 Intersection 5/8/2018 12 Proposed 300 -person Lecture Hall Auditorium. Conceptual Design is proposed for the FY 18/19 Budget. Proposed Funding $50,000 City, $20,000 Friends of the Library. Future commitments by the City and Friends unknown. Library is requesting to select the original Library Architect (Cathy Simon) on working at Perkins and Will. (sole source) Library is requesting to start the Conceptual Design effort now. Proposed Lecture Hall at the Central Library ON Possible locations of Lecture Hall on the Central Library Grounds 5/8/2018 13 Council Inaut POST -TOP STREET LIGHT UPGRADES PROJECT: ANY CONCERNS/COMMENTS WITH STAFF DETERMINING TO EITHER LED RELAMP REMAINING 1796 POST -TOP STREET LIGHTS; OR INSTALL 243 NEW LED FIXTURES IN SPYGLASS NEIGHBORHOOD - DEPENDING ON OUTCOME OF CURRENT TRIAL WITH SPYGLASS HOA? NEWPORT ISLAND PARK REHABILITATION PROJECT: ANY CONCERNS/COMMENTS WITH INCLUDING NEWPORT ISLAND PARK REHABILITATION PROJECT, INCLUDING REASSIGNING THE CURRENT VETERANS PARK FUNDING ($200,000) TO CITYWIDE LANDSCAPE ENHANCEMENT PROGRAM TO FUND EFFORT? Council Input LOWER SUNSET VIEW PARK IMPROVEMENT: ARE YOU OK TO PROCEED WITH DEVELOPMENT OF ENTIRE CONCEPT FOR BRIDGE(S) AND PARKING LOT? WOULD YOU PREFER CONSTRUCTION OF A PARKING STRUCTURE (2 STORY) TO GET THE 161 PARKING SPOTS AND MAYBE FURTHER RECREATION AMENITIES, OR A LARGER SURFACE LOT TO OBTAIN POSSIBLY 100- 120 SPACES? CENTRAL LIBRARY LECTURE HALL: INCLUDE $70K FUNDING FOR CONCEPT DEVELOPMENT OF A LECTURE HALL IN THE 18-19 CIP AT $50K CITY AND $20K LIBRARY FOUNDATION CONTRIBUTION? LIBRARY BOARD IS REQUESTING WORK WITH THE ORIGINAL LIBRARY ARCHITECT (NOW PERKINS & WILL) AS BEST QUALIFIED PROFESSIONAL, AND TO START THE DESIGN EFFORT NOW? IF YOU ARE AGREEABLE, AUTHORIZE CITY MANAGER ENTER INTO NECESSARY DESIGN CONTRACT WITH FUNDING TO BE COMMITTED IN 18-19 CIP BUDGET. 5/8/2018 14 a al- k L FY 2018-19 PROPOSED` REORGANIZATIONS CITY ORGANIZATIONAL STRUCTURE NBMC 2.12 establishes the City's Administrative Departments and duties and responsibilities. NBMC 2.28 establishes the Personnel Policy and Compensation Plan The City Manager is responsible for recommending changes to the City's organizational structure. 5/8/2018 15 MUNICIPAL OPERATIONS DEPARTMENT MUNICIPAL OPERATIONS DEPARTMENT - FUNCTIONS Created in 2011 as a result of a citywide review of operations including workflow, staffing and costs. General Services and Utilities were separate departments prior to 2011. Combined both departments with one director in 2012. Director left in 2013. Two Co -Directors created in 2013 and made permanent positions in 2015. Utilities Co -Director retires in December of 2017 and General Services Director retires in May 2018. Opportunity to review operations and propose changes to the organization. The Municipal Operations Department is responsible for the following activities: Beach Maintenance Street Maintenance Facilities and Equipment Maintenance Park Maintenance City Tree Maintenance Refuse Water Operations Wastewater Operations Storm Drains/Street Sweeping Oil and Gas Streetlights/Electrical Graffiti Removal 5/8/2018 16 B P -i -,-:I � B B PUBLIC WORKS DEPARTMENT - FUNCTIONS The Public Works Department is responsible for the following functions: City Infrastructure Planning, Engineering and Construction Traffic and Transportation Engineering & Operations Public Right-of-Way/Property Management Development Review & Permitting Water Quality/Environmental Services Inspection Services Harbor Resources CIP Budget Preparation and Management 5/8/2018 17 p6 P119LFG WORIf5 QIREc t3' Qavid We66 � aaa.vio ■ n� H.,GwB 0[ IkW maeenp. �pepu:y 1,11h, MrII Cul:C ecwlry 14rmHlip, nr..gn�.M Mock Yu"Rf H�rOor Hecwrce� Naiuoar -4a, jj. - Public Works Deuartment foo 644- Canter Drive. Newyan eeaeh, fA 926G[I 'M9CJ.ti-3311 wwx.ne'Wol[6eaCheaca.+'pudk�k� MminMaye and rinen"V Macaw J] w coy ,d IIIA -9395 '=^r^m=^,s• 1 urlc IN w.Iuw wwaa 61i 99:8 MIrif3 nwivl 5u.yy7t 4� Sna�lam ��NYI.i1nP. �P�I hn�WtSENeI¢ 1 � NlYII C,arrr W o[IMABYxa ��' Mw4lel�ir Mxxi•e C��IGinrn YHws� luY�9Yrw /la�Y 4emo1� I,+m�J �— Adopted Adopted Proposed 1 1 2018-19 Public Works— 3 3 3 Water Quality CURRENT AUTHORIZED Public Works 29 31 31 POSITIONS BY Harbor 3 3 3 ORGANIZATION Resources Total 36 37 37 General Svcs. 62.5 58.5 57 Water 31.5 33 32.5 Wastewater 13 11.5 11.5 Electrical 0 1 1 Total MOD 107 104 102 Does not include part-time employees or harbor operations staffing m 5/8/2018 i Cluk Mrel y saaao99 �[IHluntsml.a�m hap�l¢,prydlElminle 14ac.Ai��.CY4llriulnls IMn.:I.K6rMan LIIIepIh.Cinl Eneln� !1'liMnirY hdr:plf Public Works Deuartment foo 644- Canter Drive. Newyan eeaeh, fA 926G[I 'M9CJ.ti-3311 wwx.ne'Wol[6eaCheaca.+'pudk�k� MminMaye and rinen"V Macaw J] w coy ,d IIIA -9395 '=^r^m=^,s• 1 urlc IN w.Iuw wwaa 61i 99:8 MIrif3 nwivl 5u.yy7t 4� Sna�lam ��NYI.i1nP. �P�I hn�WtSENeI¢ 1 � NlYII C,arrr W o[IMABYxa ��' Mw4lel�ir Mxxi•e C��IGinrn YHws� luY�9Yrw /la�Y 4emo1� I,+m�J �— Adopted Adopted Proposed 1 1 2018-19 Public Works— 3 3 3 Water Quality CURRENT AUTHORIZED Public Works 29 31 31 POSITIONS BY Harbor 3 3 3 ORGANIZATION Resources Total 36 37 37 General Svcs. 62.5 58.5 57 Water 31.5 33 32.5 Wastewater 13 11.5 11.5 Electrical 0 1 1 Total MOD 107 104 102 Does not include part-time employees or harbor operations staffing m 5/8/2018 i Adopted Adopted Proposed 2016-17 2017-18 1 2018-19 Public Works — 3 3 3 Water Quality PROPOSED AUTHORIZED Publicworks 29 31 31 POSITIONS BY General Svcs. 62.5 58.5 57 ORGANIZATION Harbor 3 3 3 Resources Total Public 97.5 95.5 94 Works Water 31.5 33 32.5 Wastewater 13 11.5 11.5 Electrical ' 0 1 1 Total Utilities 44.5 44.5 45 Does not include part-time employees or harbor operations staffing m DRAFT �a — "�� •� FSKn �u�li�Workn Ueonr�.uvent aaw�sai� om.'w.oa. a..a. cw ween 5/8/2018 19 (AW Lotilitku POSSIBLE NEXT STEPS There are a number of employees currently in acting roles Council Comments Return to May 22, 2018 meeting Introduction of proposed Ordinance to amend Title 2.12 of the Newport Beach Municipal Code to reflect merging of General Services into Public Works and to create a Utilities Department Provide job descriptions and salary ranges for new Deputy Director of Public Works/Municipal Operations and Utilities Director Recruit for both positions 5/8/2018 /9M THE HARBOR Created July 1, 2017 as a result ending long- term agreement with the Orange County Sheriff Department for mooring operations Established Headquarters at Marina Park. Recruited and hired staff to run operation. HARBOR OPERATIONS Provided for boats to patrol the harbor. Provide mooring management. Provide code enforcement in the harbor. Harbor/boating safety. Resident/visitor services. A more friendly harbor presence. 5/8/2018 21 Adopted i i Harbor Operations 27,564 936,438 1,423,866* Harbor Resources 1,632,491 791,193 684,193 HARBOR BUDGET Total 1,660,055 1,727,631 2,108,059 Adopted Adopted Proposed 2016-17 2017-18 2018-19 Personnel Personnel Personnel FTE FTE FTE Harbor 0 8 (PM 9* Operations Harbor Resources 3 3 2 Total 3 11 11 *difference of $230,705 from proposed budget and 5 full-time employees 0 PROPOSED HARBOR DEPARTMENT Harbor Director/Harbormaste I.0* Admin Assistant I.5* Dockmas[er Harbor Resources Manager Lead/Code Patrol Harbor Technician 2.0* I.0 *Denotes Director responsible for staffing Harbor Commission Part -Time Harbor Service Workers 44 5/8/2018 22 Proposed Staffing Harbormaster* 1.0 $169,427 Admin Assistant* 1.5 165,137 Dockmaster* 1.5 135,674 Lead Code/Patrol* 2.0 194,710 HARBOR STAFFING Part -Time Patrol 4.0 212,689 Total Staffing 9.0 $877,637 Harbor Res. Mgr. 1.0 $202,103 Harbor Res.Tech 11 1.0 109,537 Total Staffing 2.0 $311,640 Total Department 5 New Full -Time positions added cost $230,705 m POSSIBLE NEXT STEPS Based on Council Comments Return to May 22, 2018 meeting Introduction of proposed Ordinance to amend Title 2.12 of the Newport Beach Municipal Code to reflect creating a Harbor Department 2) Provide job descriptions and salary ranges for new Harbor Director, Fulltime Lead Code/Patrol and DockMaster 3) Recruit for positions 4) Introduction of proposed Ordinance to amend Title 17 of the Newport Beach Municipal Code to reflect the roles and responsibilities of the City Harbormaster position. 5/8/2018 23 QUESTIONS? 7-11?r! 110, ►l �l�j 1�1 47 -Abb - , Pension Highlights bolt.48 ■ � J 5/8/2018 ►Z'1 UNFUNDED PENSION LIABILITY TREND $1,200 $1,000 $800 c $600 0 $400 $200 �l�VV1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Accrued Pension Liability $501 $553 $617 $652 $693 $727 $755 $820 $848 $887 $947 $1,012 � Market Value of Assets $499 $472 $354 $395 $467 $452 $497 $567 $573 $566 $629 $705 Unfunded Liability at Market Value $2 $82 $263 $257 $226 $275 $258 $253 $276 $321 $317307 CalPERS Rate of Investment Retum 18.8% -2.9% -23.6% 11.1% 20.7% 1.0% 12.5% 18.4% 2.4% 0.6% 11.2% 12.0% PENSION MEMBERSHIP BY TIER 2018-19 AS BUDGETED ■ Tier I Classic - 539 ■ Tier 2 Transfers- 68 ■ Tier 3 PEPRA - 119 5/8/2018 25 PENSION FUNDING (ALL FUNDS) FY 14-15 FY 15-16 FY 16-17* FY 17-18 FY 18-19 $ VAR % VAR Normal Pension Cost 14,627,830 14,899,906 15,424,068 16,186,507 16,762,312 575,805 3.6% Min. Unfunded Liability Pmt. 12,783,847 14,024,369 21,265,608 24,958,890 25,698,506 739,616 3.0% Additional Discretionary Pmt. - 7,500,000 - 8,914,595 8,801,493 (113,102) -1.3% Less: Amt Paid by Employees (7,429,842) (8,401,598) (9,447,341) (10,083,183) (10,310,870) (227,687) 2.3% Net Pension Cost $19,981,835 $ 28,022,677 $ 27,242,335 $ 39,976,809 $ 40,951,441 $974,632 2.4% *Fresh Start- Shorter Repayment Schedule 18 Yrs (16 Yrs Remaining) LEVEL DOLLAR PAYMENT STRATEGY sso,"'Ow - • Paying more $$ now, while we can, allows us to avoid cumulative s5o,000,000 interest costs inherent in legacy 777— amortization schedules s° 'wo'uw 771 - v17-17_177:7 _11�7:1 • Avoids negative amortization $�°'°° °°°"J"aal 11 11z $20,000,000 • Payment becomes a declining % of of budget $101"000 the budget over time • Compelling $ Savings $0 R " g 2 -D.b.ft UL Payment Including Known Lasses Phased In -Alt -20Vr Level $ Paynn. 7% _ Additional Cost Compered to 0i, e.lt _ Additional savings compared to Default 0 5/8/2018 r9M