HomeMy WebLinkAbout11 - FY 2020-21 Budget Adoption - PowerPointCity Council Budget Adoption Meeting
Fiscal Year 2020-21 Proposed Budget
December 10, 2019
Item No. 11
June 9, 2020
Overview
• The FY 2020-21 Proposed Budget is balanced.
• The initial 2020-21 Budgetary Gap was $33.2 million.
• Budget balancing strategies rely on a number of short-
term tiered budgetary solutions.
• Budget maintains current service levels.
• Budget continues its commitment to maintaining critical CIP
infrastructure and aggressive payment schedule of
unfunded pension liability.
• Budget is a placeholder and will be reviewed after first
quarter results.
M
Important Budget Development Dates
Action
� s
November 24, 2019 Finance Committee reviewed the funded status of the City's pension
plan, its latest valuation and considered pension funding
recommendations for Fiscal Year 2020-21
January 16, 2020 Finance Committee reviewed the City's Other Post -Employment Benefit
(OPEB) plan valuation and recommended funding
February 13, 2020 Finance Committee reviewed the City's Long Range Financial Forecast
update
February 13, 2020 Finance Committee reviewed the contours of the Public Works
Department FY 2019-20 budget to inform the Committee's understanding
of its operation in advance of the FY 2020-21 budget presentation
February 13, 2020 Finance Committee reviewed a draft of the Facilities Financial Plan
March 12, 2020 Finance Committee reviewed a draft the Harbor and Beaches Master
Plan
March 12, 2020 Finance Committee received an overview of revenue assumptions for
the FY 2020-21 Proposed Budget
W
Important Budget Development Dates
G:rW
A •
April 16, 2020 Finance Committee reviewed a summary of the COVID-19 fiscal impact
estimate on the FY 2019-20 and FY 2020-21 budgets
May 14 and 21, Finance Committee reviewed the FY 2020-21 Proposed budget
2020
May 26, 2020 Finance Committee and City Council participated in a joint meeting to
review the proposed budget
June 4, 2020 Finance Committee reviews, discusses, and makes a recommendation
to the City Council regarding the City Manager's Proposed FY 2020-21
Budget
General Fund Sources and Uses
2018-19 2019-20 2020-21
ACTUAL REVISED STARTING
BUDGET PROJECTION
SOURCES:
FY 16-17 Surplus
FY 2017-18 Surplus
FY 2015-19 Surplus
FY 2019-20 Surplus
Use of FY 2019-20 Contingency Reserve
Operating Revenues
Less: Restricted Revenues
Use of Restricted Revenues and Encumbrances
Transfers -In
TOTAL SOURCES
USES:
Operating Expenditures
Operatic)nal Savings
Transfers Out
Set aside -PERS Reserve
Increase in Contingency Reserve
TOTAL USES
UNRESTRICTED RESOURCES
CONTINGENCY RESERVE
12,090,743
-
-
1,428,885
11,591,448
-
-
11,528,065
-
-
-
12,105,574
199}583}904
F229,812,594
219,003,184
(345,135)
(1,534,114)
(730,967)
-
2,549,640
20,000
15,849,196
13,359,413
9,028,759
$
258,8361288
256,527,586
220,010,570
208,164,257
219,837,899
230,126,525
-
(4,722,705)
-
34,824,531
29,303,571
23,088,804
4,319,430
-
-
$
24713081215
244,418,762
25312151329
$
11,525,065
12,108,874
$
(33,204,759)
54,969,903
$
$
52,618,059
$
52,618,059
E
Tiered Short-term Budget Reduction Strategy - All Funds
Operating Cuts
Deferred
TOTAL GAP
Financial First Aid - initial Bridging
No Service
Temp Hiring
Capital Funding
ISF Charge
Contingency
Service Level
FUNDING
Options
Level Change
Freeze
& Spend
Reductions
Reserve
Cuts
SOLUTIONS
Tier 1
Tier 2
Tier 3
Tier 4
Tier 5
Tier 6
Salaries And Benefits
Salaries, Benefits and Other Pays
(2,000,000)
(2,000,000)
Discretionary Pension Payments
(2,316,684)
(2,316,684)
Total Salaries And Benefits
(2,000,000)
(2,316,684)
(4,316,654)
Maintenance And Operations
-
Professional & Contract Services
(1,774,131)
(1,774,131)
Internal Service Premiums
(17,511)
(4,500,000)
(4,517,511)
Workers' Compensation
(1,000,000)
(1,000,000)
General Liability
-
Uninsured Claims
(1,000,000)
(1,000,000)
OPEB
-
Equipment Replacement/Mainte
(17,511)
(500,000)
(517,511)
Information Technology
(2,000,000)
(2,000,000)
Maintenance & Repair
(179,009)
(179,009)
Supplies & Materials
(289,671)
(289,671)
Utilities
(361,201)
(361,201)
General Expenses
(98,300)
(98,300)
Travel & Training
(151,115)
(151,115)
Grant Operating Expenses
(40,000)
(40,000)
Total Maintenance And Operations
(2,910,938)
(4,500,000)
(7,410,938)
Total Transfers Out
(18,477,137)
(500,000)
(18,977,137)
Capital
(2,500,000)
(2,500,000)
General Fund Discretionary Reserves
-
Total by Tier
(2,910,938)
(2,000,000)
I (20,977,137)
(5,000,000)
(2,316,684)1
(33,204,759)
Cumulative by Tier
(2,910,938]
(4,910,938)
(25,555,075)
(30,888,075)
(33,204,759]
General Fund Sources and Uses
SOURCES:
FY 16-17 Surplus
FY 2017-18 Surplus
FY 2018-19 Surplus
FY 2019-20 Surplus
Use of FY 2019-20 Contingency Reserve
Operating Revenues
Less: Restricted Revenues
Use of Restricted Revenues and Encumbrances
Transfers -In
TOTAL SOURCES
USES:
Operating Expenditures
Operational Savings
Transfers Out
Set aside -PERS Reserve
Increase in Contingency Reserve
TOTAL USES
UNRESTRICTED RESOURCES
CONTINGENCY RESERVE
A
B
B -A
B/A
2018-19
2019.20
2020.21
2020-21
ACTUAL
REVISED
STARTING
PROPOSED
BUDGET
PROJECTION
BUDGET
$ VAR
% VAR
$
12,090,743-
1,428,885
11,591,448
-
-
(11,591,448)
-100.0°x6
-
11,528,065
-
-
(11,528,065)
-100.096
-
-
12,108,874
12,1D8,874
12,108,874
-
-
-
-
2,316,684
2,316,684
-
229,812,594
219,003,184
199,583,904
199,583,904
(19,419,280)
-8.9%
(345,135)
(1,534,114)
(730,967)
(730,967)
803,147
-52.4%
-
2,549,640
20,000
20,000
(2,529,640)
-99.2%
15,849,196
13,389,413
9,028,759
4,171,130
31.2%
$
258,536,283
$
255,527,535
$
220,010,570
$
230,859,038
$
(25,668,595)
-10.0%
$
208,164,257
$
219,837,899
$
230,126,525
$
219,859,038
$
21,139
0.0%
-
(4,722,705)
-
-
-
-
34,824,531
29,303,571
23,088,804
6,000,000
(23,303,571)
-79.5%
-
-
-
5,000,000
5,000,000
-
4,319,430
-
-
-
-
-100.0%
$
247,308,218
$
244,418,762
$
253,215,329
$ 230,859,038
$
(18,282,432)
-5.5%
$
11,528,065
$
12,108,874
$
(33,204,759)
$
-
$
(7,386,166)
-100.0%
$
$
(2,316,654)
-4.4%
$
52,618,059
$
52,615,059
$
54,969,903
50,301,375
Proposed Budget Revisions
OPERATING BUDGET
Personnel Reclasses
1 Finance: Restructure Auto Parts Buyer (formerly in Equipment Maintenance division) to Buyer
2 Finance: Reduction to Finance ISF Contribution to Eauigment Maintenance Fund
Budget
Increase (Decrease)
$ 10,673
$ (10, 673)
General Fund $
Total Operating Budget Changes $
0
Proposed Budget Revisions
CAPITAL IMPROVEMENT PFOJE T
Eudt
Inc rease (Decrease
P
New Appropriations
vFacilities
Maintenan-ce Master PIan r ra...............................................................................................................................................................................................
...................1...00
a a 000....
SU.F)e venue est Coast Highway ..l nters ti n I mpro�,r menta...............................................................................................................................................................T80.
000...
Balboa Island Ilirtransit Fasibilit Stud
.................................................................................................................... ..........................................................................................................................................................................................................
a...........
Balboa Island Iirtransit Fssibilit.to
............................................................................................................................................................................................................................................................................................................................................
................
Fa--iliti-es Maintenance Fund
1,000,000
Contributions Fund
(58,500)
M -e asu r -e ISI Competitive Fund
838,500
Tota I CI p New Appropn at -ions
S
1, 78D, DOD
P
Rebudgets
r
Civic Ctr Loss CIs i n"s
53,133
.................................................................................................................................................................................................................................................................................................................................................................................
r lain Liningandf paiis....................................................................................................................................................................................................................................
..................................................
...............................
.
48
�........
Civic Center Fun -5
53:133
Wastewater Capita I Fund
4,84B
Total CI P Rebu is
$
57,981
Proposed Budget Revisions
CIP Revenue
9
Pavement Overlay - Cal Recycle Rubberized Asphalt
$
216,000
10
Superior Avenue and West Coast Highway Intersection Improvements
$
780,000
11
Balboa Island / Corona del Mar Microtransit Feasibility Study
$
58,500
12
Balboa Island / Corona del Mar Microtransit Feasibility Study
$
6,500
13
Civic Center Park Pathway Replacement
$
215,000
14
Street Pavement Repair Program
$
100,000
Contributions Fund $
537,500
Measure M Competitive Fund $
838,500
Total CIP Revenue $
1,376,000
Recommended Actions
a) Conduct public hearing
b) Discuss Council member recommendations for additions, deletions, or
modifications to the proposed budget via the Proposed Budget Revisions
c) Conduct a straw vote on the Proposed Budget Revisions in two parts:
1. Specific items that Council members request to take action on separately
2. Remaining items as a group
d) Based on the straw vote, items approved on the list of Proposed Budget
Revisions will be included in the City's Fiscal Year 2020-21 Approved Budget
e) Adopt Resolution 2020-56 adopting the City Manager's Proposed Fiscal Year
2020-21 Budget, as amended