City of Alameda Budget Study Session · 2013. 5. 22. · 3 5 City of Alameda Budget Study Session – May 28, 2013 FY 13/14 Proposed Expenditures Personnel by Department – 409 positions

1

1

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

2


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


3


FY 13/14 Proposed ExpendituresPersonnel by Department – 409 positions


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

4


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


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

5


General Fund BudgetMajor Revenue Sources - $74 Million FY13-14

(after proposed revenue offsets)


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

6


General Fund Budget Major Expenditure Categories FY13-14

(after proposed cuts)


General Fund Budget Major Expenditure Categories

(after proposed cuts)

7


General Fund Budget Personnel by Department – 284 positions


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$

8


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



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

9



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



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

10



C. Fire: $180K

Reduce purchases of equipment,

materials and supplies

Reduce overtime budget

Increase in Fire Prevention Services revenue


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)

11



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



F. Public Works: $49K

Represents an increase in the billing rates for fleet maintenance services to Alameda Municipal Power and Alameda Unified School District

12



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)


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$

13



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


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

14

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)


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%.

15


General Fund Reserve ComparisonSelected Cities – Fiscal Year 2012-13

History of Addressing Budget Deficits(In Millions)

Budget Study Session – May 28, 201330

16


Capital and Maintenance Projectsfor Fiscal Years 13-14 and 14-15


Capital/Maintenance Project Summary$45 Million for FY13-14 and 14-15

17


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




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

18




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


Capital/Maintenance Project Summary$45 Million for FY13-14 and 14-15

19


Capital Project SummaryTotal Unfunded Projects - $258 Million

(Next Five Years)



20



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


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

21

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


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$

22


OPEB Funding Levels FY11-12 OPEB Liability and % Funded


Closing the Gap in Future YearsRevenue Options

Should the City poll residents to explore their support for different City revenue enhancement options?

23


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


24

47 City of Alameda Budget Study Session – May 28, 2013

Budget Challenge Preliminary Survey Result


25

Budget Challenge Revenue Preliminary Survey Results



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

26


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


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

27


Questions?

City of Alameda Budget Study Session · 2013. 5. 22. · 3 5 City of Alameda Budget Study Session – May 28, 2013 FY 13/14 Proposed Expenditures Personnel by Department – 409 positions

Documents