City of Alameda April 18, 2013 Budget Study Session Presentation

7/28/2019 City of Alameda April 18, 2013 Budget Study Session Presentation

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City of Alameda

Budget Study SessionApril 18, 2013


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Budget Study Session April 18, 20132

Budget Presentation Outline Two Year Budget Process for FY13-14 and FY14-15

All Fund and General Fund Budget Overview

General Fund Budget: Revenue / Expenditure Projections

Options for Addressing Projected Budget Deficits

Other Budget Highlights

Budget Challenge

Council Direction on Proposed Budget

EOC Update


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Why A Two Year Budget ? Time savings realized during two year period

Requires more conservative revenue and expense

projections

Improve funding certainty for departments,employees and programs

Limits the use it or lose it syndrome

Allows the focus to be more on policy versusbalancing the budget

Results in improved long range strategic planningand departmental accountability



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Preliminary Proposed Expenditure

Budget by Fund FY13-14 (in Mill ions)(Based upon FY13-14 forecast of $153 Mill ion)


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General Fund Budget Overview

Closeout of FY12-13

FY12-13 projected to end with a structurally

balanced budget (in millions):

Estimated $ %

Budget Actual Change Change

Revenues 71.0$ 72.1$ 1.1$ 2%Expenditures 72.2 71.3 0.9 1%

Net Change (1.2)$ 0.8$ 2.0$


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(continued)

March 2013 Mid-Year Report Presented to Council:

Initial forecast deficit of $2.3 million for FY13-14and $4.0 million for FY14-15

Initial projected ending available fund balance of$17.0 million (23% of budget) for FY13-14 and$13.0 million (17% of budget) for FY14-15 absent

corrective actions


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(continued)

April 2013 Staff prepared initial budget estimates forFY13-14 through FY17-18:

Projects deficits of $2.7 to $7.4 million annually thruFY17-18

Assumes revenue growth of 1-3% annually dependingon the source

Incorporates new and projected Miscellaneous / SafetyPERS rates, including additional employee contributionsfor PERS and health


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(continued)

Assumes health and OPEB increases of 6-12% per year,(incorporating some cost sharing provisions of MOUs);

Incorporates other provisions of new MOU agreements,including salary increases based upon the increase in

BRI (minimum of 1.5% for 2014, 2% for 2015 and 2016)

Assumes 2.5% increases for all non-personnel expensesresulting from inflation beginning in FY15-16.


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General Fund Budget Overview(continued)

Ending Available Fund Balance assumes no cost-savingmeasures are taken.

13-14 14-15 15-16 16-17 17-18

Revenues 72.9$ 74.1$ 75.2$ 76.5$ 77.9$

Expenses 75.6 78.5 81.0 83.0 85.3

Deficit For Year (2.7)$ (4.4)$ (5.8)$ (6.5)$ (7.4)$

Ending Available Fund Balance 18.6$ 14.2$ 8.4$ 1.8$ (5.6)$

% of Expenses 25% 18% 10% 2% -7%

5 Year Projections for FY13-14 through 17-18 (in millions)

Without proposed changes


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General Fund Budget

Revenue and Expense Trends($ in millions)

$65

$70

$75

$80

$85

$90

Revenues Expenses


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General Fund Budget

Major Revenue Sources - $73 Million FY13-14


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General Fund Revenues

5-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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General Fund BudgetTotal Revenue Trend

($ in millions)


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General Fund BudgetProperty Tax Revenue Trend ($ in millions)

$19

$21$22

$23$22 $22 $22 $23

$23 $24

$0

$5

$10

$15

$20

$25

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


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General Fund Budget

Major Expenditure Categories FY13-14

32%

36%

15%

5% 12%

Fire

Police

Administration

Recreation / PublicWorks (GF)

Transfers Out


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General Fund Budget

Major Expenditure Categories


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Miscellaneous Employees PERS Rates -

Total Contributions (Employer & Employee)

17 Budget Study Session April 18, 2013


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Safety Employees PERS Rates -

Total Contributions (Employer & Employee)



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Closing the Gap for FY13-14 and 14-15:

Summary of ProposedReductions/Revenue Offsets

Department Category 2013-14 2014-15

Administration 829,000$ 860,000$Police 245,000 245,000Fire 180,000 180,000

Central Services 49,000 49,000

Library 125,000 91,000Recreation 112,000 112,000General Fund

Capital Projects 460,000 1,491,000

Parking Meter Rates 375,000 375,000One Time Revenues 300,000

Total 2,675,000$ 3,403,000$


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Proposed Changes(continued)

A. Administration: $829K FY13-14, $860K FY14-15

Restructure/Reduction of the following departments

City Manager / Information Services ($379K / $409K)

Human Resources ($202K each year)

Finance ($15K each year)

City Clerk ($88K / $89K)

Reallocate Cable Television Administration program toCable Internal Service Fund


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A. Administration (continued)

Human Resources ($30K each year)

Reduce other operational costs ($30K each year)

Finance ($115K each year) Increase Business License processing fee by $5

Increase penalties for delinquent business licenses

Reduce other operational costs


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B. Police: $245K

Represents initial estimate for a proposed increase inparking citations, to be presented to Council in May2013

Police was also able to reduce their base budget by$200K annually through reduced booking fees assessedby the County


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C. Fire: $180K

Reduce purchases of equipment, materials and supplies

Reduce overtime budget

Increase in Fire Prevention Services revenue


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D. Recreation and Parks: $112K

Reductions in the following:

Hardball Field (College of Alameda) ($6,500)

Swim Center Facility Maintenance ($43,500)

Part time Staffing & Contractual Services ($62,000)


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E. Library: $216K over two years

Change closing time on Thursday from 6 pm to 5 pm, toalign with operating hours on Friday and Saturday($8K annually)

Use remaining Measure O bond funds instead ofGeneral Fund contributions to fund capital outlay forlibrary for both years ($200K over two years)


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F. Public Works: $49K

Represents an increase in the billing rates for fleetmaintenance services to Alameda Municipal Power andAlameda Unified School District


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G. General Fund Capital Projects($460K in 13-14, $1.491 million in 14-15)

Reductions in Building Maintenance Renovationsfunded annually by the General Fund from $860K to$400K

For FY14-15, reallocate remaining General Fund capitalcontributions as follows:

$200K from Capital Project Fund reserves (one-time)

$831K from Facility Maintenance Internal ServiceFund (on-going)


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H. Proposed Increase for Parking Meter Rates toRegional Standard

Represents initial estimate for proposed increase(estimated to generate $375K annually) to be presentedto Council in May 2013

Increase meter rates from

$1.00 to $1.50 per hour on Park Street

$.50 to $1.00 on Webster Street


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Use of One-Time Funds Receive repayment of funds due from Bayport

Assessment District for prior years for public

safety services ($300K FY13-14 only), $45Kannually in future years

Use of carryover of projected budget savingsFY12-13 ($1 million FY14-15)

Police ($634K due to vacancies)

Fire ($275K due to overtime savings) Facilities Maintenance ($142K due to vacancies)


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5 Year Projections FY13-14 to 17-18 (in Mil lions)

with Proposed Changes

13-14 14-15 15-16 16-17 17-18Revenues 72.9$ 74.1$ 75.2$ 76.5$ 77.9$

Expenses 75.6 78.5 81.0 83.0 85.3

Budget Carryover from FY12-13 1.0

Proposed Changes 2.7 3.4 2.7 2.7 2.7

Deficit For Year -$ -$ (3.1)$ (3.8)$ (4.7)$

Ending Available Fund Balance 19.6$ 18.6$ 15.5$ 11.7$ 7.0$

% of Expenses 26% 24% 19% 14% 8%


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Other Cost Savings Measures /

Revenue Enhancements

Proposed Elimination of Cost of Living Adjustments

for Non Personnel items for FY14-15 and 15-16

Parking Garage

Voluntary Layoff Program


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Other Budget Considerations

Advance of future years PILOT from AMP ($1.2million 13-14, $1.4 million 14-15)

Expiring SAFER Grant funding for firefighters (2014)

Update on Redevelopment/Successor Agency

Proposed Reorganization of ARRA

Proposed EOC ($2 Million) Funding Sources

General Fund Reserves

Partial Payment from Community Development Fee

Loans from CDF / Facility Maintenance Funds

Grants / Other Sources


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Budget Good News

FY12-13 is projected to be structurallybalanced

Maintains and exceeds City Councils 20%reserve policy for two years

No significant decrease in direct services to thecommunity


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Council Direction on Proposed Budget

Proposed expenditure reductions

Proposed changes to revenues

One-time items and use of budgetcarryover from FY12-13

Other Cost Savings/RevenueEnhancements

Other Budget Considerations


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Next Steps

May 28, 2013 2nd Council budget workshopand possible adoption

J une 12, 2013 Council budget adoption ifneeded


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Questions?

City of Alameda April 18, 2013 Budget Study Session Presentation

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