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Home My WebLink AboutSS3 - FY2013-2014 Proposed Budget Overview PresentationAgenda Item No. SS3 May 14, 2013 Finance Department FY 2013 -201.4 Proposed Budget Overview u ELI FORN� Council Study Session May 14, 2013 1. Fiscal Year 2013 -14 Budge Budget is Balanced 2. Increases our i nve EXPENDITURES REVENUE stments in community serving facilities and beautification projects 3. Puts more police officers on the street while still reducing total staffing levels, Budget Requirement • Charter Requirements: — Requires Budget submittal to Council at least 35 days prior to the beginning of the fiscal year —July 1 — Requires public notice scheduled for May 28th and public hearing scheduled for June 11th —After the Public hearing, Council shall make any budget revisions deemed advisable and shall adopt budget on or before June 30 i Budget Process • The budget process: — Collaboration by departments on financial forecasts — Priorities set by City Manager and Council based on core values and fiscal sustainability plan — Budget conferences by City Manager and Department Heads — Review of proposed by Finance Committee and Council — Public Hearing and adoption of Budget and Appropriation Limit (Gann Limit) Remaining Budget Calendar • 5/14/13 City Council First budget review with staff at the study session • 5/28/13 City Council Second budget review with staff at the study session. Set the date for public hearing on budget and appropriation limit • 6/11/13 City Council Public hearing and adoption of FY 2013 -14 budget and appropriation limit Total Budget D ,..,,.....,. General Fund Other Funds Total City Revenue Less Internal Charges Total City Revenue Net of Internal Charges Expenditure General Fund Other Funds Total City Expenditures Less Internal Charges Total Expenditures Net of Internal Charges Revenues Net of Expenditures 2012 -13 Original $155,826,396 81,868,842 237,695,238 (18,709,213) $218,986,025 $157,173,174 165,305,676 322,478,850 (18,709,213) $303,769,637 2012 -13 Amended Budget $162,324,124 86,709,043 249,033,167 (17,936,758) $231,096,409 $159,786,370 151,907,499 31 1,693,869 (17,936,758) $293,757,111 ($84,783,612) ($62,660,702) 2013 -14 Proposed Budget $165,872,691 105,851,916 271,724,607 (18,020,266) $253,704,341 $162,340,392 116,577,484 278,917,876 (18,020,266) $260,897,610 ($7,193,269) Pct Change from Amended 2.19% 22.08% 9.11% 0.47% 9.78% 1.60% - 23.26% - 10.52% 0.47% - 11.19% - 88.52% 6 General Fund Budget Surplus Revenues Transfers -I n (All Sources) Adjustments for mandated Set - Asides Net Revenues Expenditures CIPs Transfers -Out FFP Transfer -Out Equipment Replacement Net Expenditures Net General Fund Surplus - As Printed Subsequent expenditure adjustment Adjusted Surplus $162,324,124 $165,872,691 13,794,948 8,822,921 (3,341,187) (3,603,825) $172,777,885 $171,091,787 $153,890,586 6,480,784 9,719,646 $170,091,016 $2,686,869 $2,686,869 Checklist Recommendations Transfers -Out (FFP) $ Transfers -Out Facilities Maintenance Plan (FMP) P Net General Fund Surplus /(Deficit) $155,673,022 6,667,630 7,000,000 1,000,000 $170,340,392 $751,395 1,846,675 $2,598,070 $1,000,000 500,000 $1,500,000 $2,686,869 $1,098,070 FY 12 -13 include release of PY Assignments & recommended appropriations which will go to Council for autorization on May 28. 9 FY 13 -14 Revenues — General Fund Property Taxes $77,560,969 46.8% Sales Tax (includes in -Lieu) $30,166,588 18.2% Transient Occupancy Tax $16,363,510 9.9% Other Taxes $7,725,840 4.6% AIIOtherSources $34,055,784 20.5% [U' Total Revenue & Transfer General Fund: $173,943,947 19 General Fund — Revenue Comparison General Revenue Comparison FY 2007 -05 FY 20112 -13 FY 2013 -14 o Change CAS Revenue Source Pre - recession Projected Proposed 2013 to 2014 (2008 = 20141, PropartyTaxees $ 67,388,838 $ 76;950,273 $ 77,560,969 0J9'� 2.37 Soles Tax (incluueslr,- '_ie�l 29,872,7Li 23.181,060 30,16,5588 7.05 t3.i69rz Transierf CccuparcyTox. 121,715 1.51 o i 5,2 8,ow 1 c.3oJ,610 6. ?i -u ,As;, Cther Toxes 3,288,355 7,733,792 7,725T840 1 -3.1 Di; -1.1 7'70 AN Of h er Raver, ue 43,399,,' 69 34, 160,999 34,055,784 -0.31 2.81;6 $ 158,701,661 $ 162,324,124 $165,872,691 2.19:a G_ 4% Total Rever.:e $ 5.-521,342 $ 7,; 13,559 $ 8.07 1,356 15.081A 6.535; Irter',rnTrans';erslr Total Revenues & Transfers $164,223,003 $ 169,337,683 $173,943,747 2.729 {1,960? ,` C:cn,retinded �nn.�a Grc�,chat� J E FY 13 -14 Expenditures by Function — General Fund ■ General Government 514,787,898 8.6% ■Public Safety $83,450,001 48.3% PublicWorlts $29,757,815 17.2% Community Development $9,403,399 5.4% ■ Community Services $18,043,909 10.5% • Non - Departmental $230,000 0.1% CIP & Capital Funding Transfers $17,084,959 9.9 %, Total Expenditures and Transfers — General Fund: $172,757,9SI General Fund- Expenditure Comparison General .- . - FY 2011 -12 FY 2012 -13 FY 2013 -14 %Change CAGR* Function Budget Projected Proposed 2013 to 2014 (2012 - 2014) General Government $ 14,209,000 $ 15,142,304 $ 14,787,898 -2.34% 2.02% Public Safety 78,948,894 79,716,577 83,450,001 4.68% 2.81% Public Works 29,776,283 30,524,791 29,757,815 -2.51% -0.03% Community Development 9,604,714 10,135,845 9,403,399 -7.23% - 1.05% Community Services 18,676,136 17,001,069 18,043,909 6.13% -1.71% Non - Departmental 1,492,565 785,000 230,000 - 70.70% - 60.74% Operating Expenditures $152,707,592 $153,305,586 $ 155,673,022 1.54% 0.9 - 3,827,13 6,480,784 6,667,370 2.88% 31.99° CIP - New, Rebudgets & Amendments Total Operating 8 CIP $156,534,724 $159,786,370 $ 162,340,392 1.60% 1.84% 4,6,812 01 > 13,219,645 ** 8,000,000 - 39.48% 41.13 FFP Interfund Transfers out All other Interfund Transfers out 3,378,254 7,412,200 ** 2,417,589 - 67.38% - 15.40% Total Operating /CIP /Transfers Out $ 163,929,790 $ 180,418,215 ** $ 172,757,981 -4.257.1_ 2.66% *Compounded Annual Growth Rate ** Assumes FY 13 Budget Amendment to reallocate strategic savings is approved. 11 Priority Based Budgeting 1. Public Safety • New Crime Suppression Unit 2. Smarter, Smaller Government • Continue to address pension & OPEB costs • Maintain Civic engagement • Use technology to be smarter, faster & leaner • More Contracting Out — where it makes sense 3. High Quality Physical Environment • Increase investment in infrastructure • Neighborhood beautification • Community serving facilities Priority: Public Safety • New Crime Suppression Unit • 3 Officers • 1 Sergeant iwl( c • 800 Mhz Reinvestment • Maintains inter - agency Communication w q 1 Priority: Smarter, Smaller Government • IT Strategic Investments • Upgrade our ERP z pg t • Upgrade our computer -aided dispatch • Online permitting system • Web /phone apps Tour NBCC Tour the PSe:voort Beach Civic Center! 'Nk -the,T cu live, work w visA Newport ._ Priority: Smarter, Smaller Government • Smarter Faster Smaller Operations • Parking lot automation — CdM and Balboa lots • Print outsourcing • Printer Consolidation — 130 Fewer printers III -T �- ■ It R�, ' ,T Flo _ I III -T �- ■ It R�, ' ,T Flo Priority: Smaller Government Pension & OPEB: • Smaller workforce — 16 Full -time & 14 Part -time FTE position reductions • Increased employee pension contributions • Lower tier benefits, new employees • Accelerated payments on pension unfunded liability • Accelerated payments on retiree insurance unfunded liability t Historical Full Time Positions Historical Full Time Positions 860 840 832 833 820 814 805 800 801 C 781 780 775 p 763 CL 0 760 752 -u 740 736 720 700 680 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Proposed Fiscai Yea, Increasing Pension Contributions Made by Employees $8 $7 $6 $5 $4 $3 $2 $1 Employee Pension Contributions ($ Millions) - $7.0- $6A - - - - -$3.4— FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 Est Est Est Est Estimates based on fiscal year 13 staffing levels. E- Priority: High Quality Physical Environment High Quality Physical Env ironment • Neighborhood beautification • Community Serving Facilities • General Plan Update • Airport EIR • Reforestation Efforts Priority: High Quality Physical UP Proiects Gen Fund CIP Marina Park Sunset Ridge Lifeguard HQ rehab CdM Fire Stn. rebuild Total Environment Proposed 2013 -14 $6.7M $15.3M $8.8M $1.4M 0.25M $32.45M Total Estimated $30.OM $11.OM $2.OM 4.5M $47.5 M 3e�� ` is M Z r y § I I zy�-e -- - 1 COP Debt Service 2010 Civic Center COP Debt Service Estimates FY 2013-14 2010 Civic Center COP Debt Service Payment 2010 Civic Center COP Series B BAB Subsidy* Net Debt Service payment Net Debt Service % of General Fund Revenues Payments 10,590,017 (2,405,901) 89184,116 4.9% 0.1 0.09 0.08 0,07 0.06 0.05 0.04 0.0? 0.02 0.01 0 _ Debt Service Debt Service as °l of GF Revenues h N n-, -r Lr, U r 0:) c. G Lr+ kc r cr o, G " N -t uti �O r oe o " rl rl h ti H t" r"I r-I rl N N N N N N N N N N n'i n^- n M M rI f+'l nl n', M '-P ^-t G O O O G O G G G =1 G O G G d G G O G G G G G G G G ^.1 G G G G N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N Debt Service - as of Re': enues Budget Presentation SUMMARY &CONCLUSION r V • I l General Fund Budget Surplus SURPLUS: Projected Operating Surplus Release of FY 11 -12 Assignments Surplus Available for Appropriation RECOMMENDATIONS: Transfer ABLE Prooceeds to IT Fund Transfer for 800 MHZ Equipment Fund Transfer to Facilities Financial Planning Reserve Fund Transfer to Facilities Maintenance Fund (FMP) Transfer to Retiree Insurance Fund Assignment for AIRPORT EIR Transfers to Othe Funds UNASSIGNED FUND BALANCE: Net Increase (Decrease) to General Fund Surplus Beginning Unassinned Fund Balance Ending Unassigned Fund Balance Projected FY 2012 -13 $ 2,686,869 $ 13,482,180 $ 16,169,049 PROPOSED 2013 AMENDMENT $ (2,551,815) $ (1,000,000) $ (8,543,503) $ (1,000,000) $ (1,500,000) $ (250,000) $ (125,421) $ (14,970,739) $ 1,198,310 $ 21,433,482 $ 22,631,792 Proposed FY 2013 -14 Budp,et $ 2,598,070 $ 2,598,070 PROPOSED 2014 CHECKLIST $ (1,000,000) $ (500,000) $ 1,098,070 $ 22,631,792 $ 23,729,862 General Fund Reserves Comparative General Fund Non - spendable Restricted Committed: Contingency Reserve Other Miscellaneous Assigned: Future Appropriations PERS Other Miscellaneous Unassigned General Fund Balance Actual Projected Amended Proposed Change 2012 2013 2013 2014 2012 -2014 $ 7,706,708 $ 10,032,413 $ 10,032,413 $ 10,032,413 $ 2,325,705 3,180,638 3,796,151 3,796,151 4,581,387 1,400,749 21,582,798 22,134,775 22,134,775 23,526,966 k1,944,168 7,060,434 4,056,273 4,056,273 3,551,882 (3,508,552 13,582,180 - 350,000 350,000 13,232,180 5,000,000 5,000,000 5,000,000 4,291,335 (70 ,665 246,118 - - - (246,118 21,433,482 37,702,531 22,631,792 23,383,187 Colo ,949,705 $ 79,792,358 $ 82,722,143 $68,001,404 $ 69,717,170 $(10, , FFP Reserve Fund $ 33,149,725 Total General & FFP Reserve Fund Balance $ 112,942,083 $ 27,970,953 $ 23,316,236 $ 17,577,505 $ 110,693,096 $ 91,317,640 $ 87,294,675 $ p 2 5 Conclusion • Proposed budget is balanced; there is no use of reserves for operating purposes and it: — Increases our investment in community serving facilities and beautification projects —Adds police officers while reducing overall staffing levels (16 full -time and 14 part -time FTEs) — Pension & OPEB costs will continue to be addressed aggressively and comprehensively — Outsourcing and staff reductions will continue Questions &Comments � �tiW PpRr City's budget documents can be accessed at: www.newportbeachca.gov/budget