city of alameda budget study session · 2013. 5. 22. · 3 5 city of alameda budget study session...
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City of AlamedaBudget Study Session
May 28, 2013
City of Alameda Budget Study Session – May 28, 20132
Budget Presentation Outline
All Fund & GF Budget Overview FY 13/14 & 14/15
General Fund Budget: Revenue / Expenditure Projections
Options for Addressing Projected Budget Deficits
Proposed Capital Improvement Program FY 13/14 & 14/15
Other Budget Considerations
Budget Challenge
Council Direction on Proposed Budget
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City of Alameda Budget Study Session – May 28, 20133
FY 13/14 Proposed Expendituresby Fund Type - $162 Million
Note: AMP is not included in the above.
FY 13/14 Proposed Expenditures by Department – All Funds - $162 Million
City of Alameda Budget Study Session – May 28, 20134
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City of Alameda Budget Study Session – May 28, 20135
FY 13/14 Proposed ExpendituresPersonnel by Department – 409 positions
City of Alameda Budget Study Session – May 28, 20136
General Fund Budget OverviewFY 13/14 & 14/15
April 2013 – 1st Budget Presentation to Council:
• Initial forecast deficit of $2.7 million for FY13-14 and $4.4 million for FY14-15 absent corrective actions
• Initial projected ending available fund balance of $18.6 million (25% of budget) for FY13-14 and $14.2 million (18% of budget) for FY14-15 absent corrective actions
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City of Alameda Budget Study Session – May 28, 20137
General Fund Budget OverviewFY 13/14 & 14/15
May 2013 – 2nd Budget Presentation to Council:
• Revised forecast deficit of $3.5 million for FY13-14 and $5.2 million for FY14-15 absent corrective actions
• Initial projected ending available fund balance of $18.5 million (24% of budget) for FY13-14 and $13.3 million (17% of budget) for FY14-15 absent corrective actions
City of Alameda Budget Study Session – May 28, 20138
General Fund Budget Overview (continued)
Ending Available Fund Balance assumes no cost-saving measures are taken.
13-14 14-15 15-16 16-17 17-18
Revenues 72.8$ 73.9$ 75.0$ 76.3$ 77.7$ Expenses 76.3 79.1 81.7 83.8 86.0 Deficit For Year (3.5)$ (5.2)$ (6.7)$ (7.5)$ (8.3)$ Ending Available Fund Balance 18.5$ 13.3$ 6.6$ (0.9)$ (9.2)$ % of Expenses 24% 17% 8% -1% -11%
5 Year Projections for FY13-14 through 17-18 (in millions)Without proposed changes
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City of Alameda Budget Study Session – May 28, 20139
General Fund BudgetMajor Revenue Sources - $74 Million FY13-14
(after proposed revenue offsets)
City of Alameda Budget Study Session – May 28, 201310
General Fund Revenues5-Year Plan Annual Assumptions
Property Tax – 2.2% annually through 17-18
Sales Tax – 6% 13-14, 4% 14-15, 3% thereafter
Utility Users Tax – Flat thru 14-15, 1% thru 17-18
Franchise Taxes – Drop 13-14, 0-1% thru 17-18
Other Taxes – 1-2% through 17-18
Departmental Revenues–1% thru 17-18
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City of Alameda Budget Study Session – May 28, 201311
General Fund Budget Major Expenditure Categories FY13-14
(after proposed cuts)
City of Alameda Budget Study Session – May 28, 201312
General Fund Budget Major Expenditure Categories
(after proposed cuts)
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City of Alameda Budget Study Session – May 28, 201313
General Fund Budget Personnel by Department – 284 positions
City of Alameda Budget Study Session – May 28, 201314
Closing the Gap for FY13-14 and 14-15:Summary of Proposed
Reductions/Revenue Offsets Department Category 2013-14 2014-15Administration 831,000$ 833,000$ Police 341,000 334,000 Fire 180,000 180,000 Central Services 49,000 49,000 Library 100,000 100,000 Recreation 60,000 60,000 General Fund Capital Projects 602,000 1,427,000 Parking Meter Rates 285,000 380,000 One Time Revenues 320,000 Total 2,768,000$ 3,363,000$
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City of Alameda Budget Study Session – May 28, 201315
Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)
A. Administration: $831K FY13-14, $833K FY14-15
City Manager / Information Services ($311K / $324K)
Elimination of the Following Positions:
½ of a Office Assistant
Senior Management Analyst
Administrative Management Analyst (IT)
City Attorney ($90k / $94k)
Elimination Administrative Technician I
City of Alameda Budget Study Session – May 28, 201316
Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)
A. Administration (continued):
Human Resources ($202K / $204K)
Implement the Following Staff Changes:
Eliminate the Human Resources Director position
Establish a Human Resources Manager position
Eliminate two Senior Administrative Management Analysts
Downgrade one Senior Administrative Management Analyst to an Administrative Management Analyst
Reduce other operational costs by $30K
City Clerk ($88K / $89K) - Reallocate Cable Television Administration program to Cable Internal Service Fund
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City of Alameda Budget Study Session – May 28, 201317
Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)
A. Administration: $831K FY13-14, $833K FY14-15
Finance ($201K over two years)
Implement the following staffing changes: Reclassify Controller as Finance Director
Change Accounting Technician position to Accountant I
Eliminate Purchasing/Payables Coordinator Position
Create second Finance Supervisor position
Eliminate Accountant II position
Create Intermediate Clerk position
Increase Business License processing fee $5
Increase penalties for delinquent licenses
City of Alameda Budget Study Session – May 28, 201318
Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)
B. Police: $361K FY 13-14, $354K FY 14-15
Propose an increase in parking citations, estimated to generate $379K annually, staff report to follow at tonight’s meeting
Reallocate $100K of COPS funds for equipment replacement
Request the addition of Part Time staff for parking enforcement and an IT person for the implementation of a new CAD/RMS system
Reduce base budget by $228K over two years
through reduced booking fees from the County
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City of Alameda Budget Study Session – May 28, 201319
Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)
C. Fire: $180K
Reduce purchases of equipment,
materials and supplies
Reduce overtime budget
Increase in Fire Prevention Services revenue
City of Alameda Budget Study Session – May 28, 201320
Closing the Gap for FY13-14 and 14-15: Proposed Changes
(continued)
D. Recreation and Parks: $60K
Reductions in the following:
Hardball Field (College of Alameda) ($3,500)
Swim Center Facility Maintenance ($43,500)
Other Administrative Contractual Services ($13,000)
Implementation of Park Ranger Program
(no net additional costs)
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City of Alameda Budget Study Session – May 28, 201321
Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)
E. Library: $200K over two years
Change closing time on Thursday from 6 pm to 5 pm, to align with operating hours on Friday and Saturday, with an offsetting increase in the materials supplies budget
Reduce General Fund contribution by $200K over two years through the use of remaining Measure O bond funds to fund capital outlay for both years
City of Alameda Budget Study Session – May 28, 201322
Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)
F. Public Works: $49K
Represents an increase in the billing rates for fleet maintenance services to Alameda Municipal Power and Alameda Unified School District
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City of Alameda Budget Study Session – May 28, 201323
Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)
G. Reduction in General Fund Contributionsfor Capital Projects of $602K in FY13-14 and $1.427 million in FY14-15)
Reductions in Building Maintenance Renovations funded annually by the General Fund from $860K to $400K to match staffing levels (FY13-14)
Use $200K from Capital Project Fund reserves (one-time) (FY 14-15)
Use $764K from Facility Maintenance Internal Service Fund (on-going)
Reduce other GF projects by $142K (GF still contributes $889,000 for FY 13-14 and $64K for 14-15)
City of Alameda Budget Study Session – May 28, 201324
Voluntary Layoff ProgramPreliminary Results
Funding Source EmployeesCost for FY
12-13General Fund 4 82,000$ Other Funds 2 40,000$ AMP 3 60,000$ Totals 9 182,000$
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City of Alameda Budget Study Session – May 28, 201325
Closing the Gap for FY13-14 and 14-15: Proposed Changes (continued)
H. Proposed Increase for Parking Meter Rates to Regional Standard
Increase meter rates by $.50 per hour
Increase parking garage rates by $.25 per hour
Estimated to generate $380K annually
Staff Report to follow as part of
tonight’s Council meeting
City of Alameda Budget Study Session – May 28, 201326
Closing the Gap for FY13-14 and 14-15:Use of One-Time Funds
Receive repayment of funds due from Bayport Assessment District for prior years for public safety services ($320K FY13-14 only) $45K annually in future years
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Budget Study Session – May 28, 201327
Closing the Gap for FY13-14 and 14-15:Use of One-Time Funds
Use of carryover of projected budget savings FY12-13 ($700K 13-14 and $1.8 million FY14-15), including: Police ($456K due to vacancies)
Fire ($275K due to overtime savings)
Facilities Maintenance ($160K due to vacancies)
City Clerk ($220K Election Costs Savings / Reallocation Cable Operation Costs)
Refund of County of Property Tax Admin Fees ($360K)
One Time COPS Grants $200K for Equipment Replacement (from FY 11-12/12-13 collections)
City of Alameda Budget Study Session – May 28, 201328
General Fund5 Year Projections FY13-14 to 17-18 (in Millions)
with Proposed Changes
13-14 14-15 15-16 16-17 17-18
Revenues 73.9$ 74.8$ 75.9$ 77.2$ 78.6$ Expenses 74.6 76.6 79.2 81.3 83.5 Budget Carryover from FY12-13 0.7 1.8 New PERS Rates - Safety 0.4 0.7 1.3 New PERS Rates - Miscellaneous 0.1 0.3 0.4 Deficit For Year -$ -$ (3.8)$ (5.1)$ (6.6)$
Ending Available Fund Balance 21.3$ 19.5$ 15.7$ 10.6$ 4.0$ % of Expenses 29% 25% 20% 13% 5%
Projected additional costs of new PERS rates assumes PERS continues to earn its assumed annual rate of return of 7.5%.
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City of Alameda Budget Study Session – May 28, 201329
General Fund Reserve ComparisonSelected Cities – Fiscal Year 2012-13
History of Addressing Budget Deficits(In Millions)
Budget Study Session – May 28, 201330
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City of Alameda Budget Study Session – May 28, 201331
Capital and Maintenance Projectsfor Fiscal Years 13-14 and 14-15
City of Alameda Budget Study Session – May 28, 201332
Capital/Maintenance Project Summary$45 Million for FY13-14 and 14-15
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City of Alameda Budget Study Session – May 28, 201333
Capital/Maintenance Project SummaryListing of Major Projects for FY 13-15
(Combined two year totals)
Sewer
Sewer Infrastructure Improvements - $15.55 million
Sewer Infrastructure Maintenance - $1.1 million
Streets/Transportation
Street Tree/Median Maintenance - $1.79 million
Pavement Management Program - $5.64 million
Pedestrian/Bike
Sidewalk Repair Program - $1.5 million
Bikeways and Trails - $2.0 million
City of Alameda Budget Study Session – May 28, 201334
Capital/Maintenance Project SummaryListing of Major Projects for FY 13-15
(Combined two year totals)
Drainage
Storm Drain System Improvements - $2.5 million
Storm Drain Maintenance - $488,000
General City Facility
Fire and Police Station Improvements - $645,000
Design of Emergency Operations Center - $600,000
Veterans Court Wall Construction - $750,000
Library Improvements - $188,000
Marine
Marina Village Pier Repair - $472,855
Estuary Crossing Shuttle - $643,000
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City of Alameda Budget Study Session – May 28, 201335
Capital/Maintenance Project SummaryListing of Major Projects for FY 13-15
(Combined two year totals)
Parks/Golf
Swim Center Renovations – $390,000
Beltline - $238,000
Estuary Park Field Design - $66,000
Golf Course Renovations - $1.0 million
Other
Police Vehicle Replacement $550,000
Fire Vehicle/Apparatus Replacement $1.1 million
Citywide Records Management Software - $300,000
Police CAD/RMS System Replacement - $1.0 million
City of Alameda Budget Study Session – May 28, 201336
Capital/Maintenance Project Summary$45 Million for FY13-14 and 14-15
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City of Alameda Budget Study Session – May 28, 201337
Capital Project SummaryTotal Unfunded Projects - $258 Million
(Next Five Years)
City of Alameda Budget Study Session – May 28, 201338
Other Budget Considerations
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City of Alameda Budget Study Session – May 28, 201339
Other Budget Considerations
PW / ARRA staff (Non-General Fund) Changes
Proposed Addition New Public Works Supervisor –(CIP)
Proposed Addition of an Associate Civil Engineer –(Development)
Proposed elimination of an Administrative Services Coordinator in ARRA
Update on Redevelopment/Successor Agency
City of Alameda Budget Study Session – May 28, 201340
Other Budget Considerations (continued)
No Incremental Advance of future years’ Franchise Fees from AMP - $1 million will carryover from FY12-13
Potential Bond Refinancing - $165K annual savings (est.)
Lease and Debt Financing FY13-14 and FY14-15
Future City OPEB and Pension Liabilities
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Projected Employer Portion of PERS Rates
41 City of Alameda Budget Study Session – May 28, 2013
Projected new PERS rates assumes PERS continues to earn its assumed annual rate of return of 7.5%.
15%
16%
18%
20%
22%
23%
25%
40%
42%
44%
46%
48%
51%
54%
0% 10% 20% 30% 40% 50% 60%
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
Safety
Misc
Cumulative Dollar Impact of Projected Increases in PERS Rates
City of Alameda Budget Study Session – May 28, 201342
Fiscal Year Misc Safety Total15-16 143,000$ 368,000$ 511,000$ 16-17 285,000$ 735,000$ 1,020,000$ 17-18 428,000$ 1,330,000$ 1,758,000$ 18-19 571,000$ 1,925,000$ 2,496,000$ 19-20 714,000$ 2,519,000$ 3,233,000$
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City of Alameda Budget Study Session – May 28, 201343
OPEB Funding Levels FY11-12 OPEB Liability and % Funded
City of Alameda Budget Study Session – May 28, 201344
Closing the Gap in Future YearsRevenue Options
Should the City poll residents to explore their support for different City revenue enhancement options?
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City of Alameda Budget Study Session – May 28, 201345
Closing the Gap in Future YearsIncreasing Existing Taxes
1. Sales Tax – 9.00%Increase .25%-.5% - $930,000 to $1.86 million
2. Utility User Tax – 7.5%Increase of 1% - $1.2 million
3. Transient Occupancy Tax – 10%Increase of 1% - $100,000
4. Property Transfer Tax – $12 per $1,000 of valuationIncrease by $2 per $1,000 - $500,000 to $700,000
5. Business Licenses – Rentals $20/Unit, Other $79-$155, Increase by $20 - $340,000
6. Parcel Tax - TBD
Sales Tax Per Capita of Selected Nearby Cities Estimated FY 12-13
City of Alameda Budget Study Session – May 28, 201346
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Budget Challenge Preliminary Survey Result
City of Alameda Budget Study Session – May 28, 201348
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Budget Challenge Revenue Preliminary Survey Results
City of Alameda Budget Study Session – May 28, 201349
City of Alameda Budget Study Session – May 28, 201350
Budget Conclusions
Projected better than expected revenues and lower than expected expenditures for FY 12-13
$45 million investment in City Maintenance and Capital Projects for FY 13-15 combined
Maintains and exceeds City Council’s 20% reserve policy for two years
No significant decrease in direct services to the community
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City of Alameda Budget Study Session – May 28, 201351
Council Direction on Proposed Budget
Proposed expenditure reductions
Proposed changes to revenues
One-time items and use of budget carryover
Proposed capital and maintenance projects
Other Budget / Revenue Considerations
City of Alameda Budget Study Session – May 28, 201352
Next Steps
May 28, 2013 Possible adoption or defer to June 11th
Master Fee Revisions to Parking
Citations and Parking Meter Rates
June 11, 2013 Council budget adoption if needed
June 18, 2013 Adoption of Fee Study
First Reading Update to Business
License Ordinance
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City of Alameda Budget Study Session – May 28, 201353
Questions?