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Home My WebLink AboutSS3 - Budget OverviewAo!;�� WP() \�- tF 0 -VLI�A City ®f Newport Beach FY 2012-13 Proposed Budget Submitted by Assistant City Manager Dana- Smith Study Session — May 8, 2012. - Oil 1111 IMM 1'':1 11,11, M Ci�•�� C� ca�.�lity V�i�ysoc�l �r�vir�orlr� �er�ti Public safety and how City services an programs am reinforce safety Government. Y°Mr� §mA:b Mra fi i ;v s • Budget Principles • Year -End Close • Looking Ahead: ■ FY 12 -13 General Fund Revenue Projections ® FY 12 ®13 General Fund Expenditure Projections ■ Key Initiatives in FY 12 -13 ■ Critical Decision Points — Work left to do! r ,y ^F Ir I '_T_M_0 1 e Adhere to 2010's Fiscal Sustainability Plan. 20 Use the upcoming years to thoughtfully and deliberatively change the way local government does business. 3e our city's long -term success depends upon our investment in infrastructure (streets, parks, facilities). 4. Stop doing things we should not he doing. 5e Pension costs need to be addressed comprehensively and cooperatively. 6. Public Safety is paramount m but we need to be open to better ways of deliveriing public safety services. X ,Mr.e_. vt.,R.^:,- ^° kexmY^ •YUtinW+„s > 4 R, _ IS1 . Maintain ..1 p p t o p f ..A t r_, cash reserves ED Manage -/ III 1 . ~1 Financing P la Q) Review revenue performance Distribution of the second Quarterly Business Report is targeted for late lay, 2012, • Competitive contracting of services and equipment • Appropriate cost-recovery targets • Ensure fair compensation an partnership with our employees - -I -NO Original. Projected Budget Year End GENERAL FUND REVENUES: PROPERTY TAXES 72,155,615 $ 72,612,217 SALES TAXES 25,088,167 $ 25,719,170 TOT TAXES 12,786,000 $ 13,715,150 ALL OTHER GENERAL FUND REVENUES $ 38,926,001 $ 40,455,757 SUBTOTAL GENERAL FUND REVENUES $ 148,955,783 $ 152,502,294 GENERAL FUND EXPENDITURES: GENERAL GOVERNMENT $ 13,379,052 $ 13,620,633 PUBLIC SAFETY $ 75,856,581 $ 76,392,827 PUBLIC WORKS $ 28,821,937 $ 28,947,199 COMMUNITY DEVELOPMENT $ 8,939,933 $ 9,243,500 COMMUNITY SERVICES $ 15,307,816 $ 17,743,778 OPEB $ 2,314,000 $ 2,314,000 DEBT SERVICE/NON DEPT EXPENDITURE $ 780,000 $ 780,000 OPERATING BUDGET SAVINGS $ - $ (3,000,000) CAPITAL PROJECTS $ 2,094,130 $ 2,094,130 SUBTOTAL GENERAL FUND EXPENDITURES $ 147,493,449 $ 148,136,067 OPERATING SURPLUS / AVAILABLE FOR ASSIGNMENT $ 1,462,334 $ 4,366,227 - -I -NO m Property Taxes $72,975,146 ❑Taxes Other Than Property $48,895,236 Licenses and Permits $4,163,212 ❑Intergovermental $1,209,809 Charges for Current Services $14,468,595 o Fines, Forfeitures & Penalties $3,539,847 ❑ Use of Money and Property $7,715,351 -�OtherRevenue $2,834,200 1% Total Revenue General Fund: $155,801,396 Note: Does not include transfers from other funds. _ 7. U r Revenue Source FY 2009 -10 Audited FY 2010 -11 Audited 8 FY 2011 -12 Projected FY 2012 -13 Proposed Property Taxes Sales Tax (includes In -Lieu) Transient Occupancy Tax All Other Revenue Total Revenue ........................ Transfers In $ 71 ,999,679 21,980,682 11,400,710 41,533,811 $ 71 ,630,345 24,739,447 13,082,451 41,283,081 $ 72,61 2,217 25,719,170 13,715,150 40,455,757 $ 72,975,146 26,793,879 14,390,158 41,642,213 $ 146,914,882 $ 150,735,324 $ 152,502,294 $ 155,801,396 $ 5,759,725 $ 3,1 16,700 $ 4,000,000 $ 6,930,000 Total Revenues & Transfers $ 152,674,607 $ 153,852,024 $ 156,502,294 $ 162,731,396 r ,u� 8 ,u� FY 12m13 Expenditures by Furittion � General Fund 0 General Government $14,477,489 O Public Safety $77,394,664 0 Community Development $9,168,326 0 Public Works $29,328,288 0 Community Services $16,926,918 0 Debt Service/Non-Departmental $750,000 0 CIP - New Funding $3,600,000 EOPEB $2,466,000 1% Total Expenditures — General Fund: $154,111,685 Note: Does not include transfer - to Facilities FinanCing.Plan Reserves. 9 n� Is Expenditures by Function General Fund General Fund E�xpend'itures by FF,MYRen Function General Government Public Safety Public Works Community Development Community Services Debt Service /Non - Departmental Operating Budget Savings Operating Expenditures CIP - New Appropriations OPEB Total Operating & CIP CIP - Rebudgets & Amendments FFP (transfer out) Total Operating /CIP /Transfers Out FY 2009 -10 Audited $ 15,507,671 76,762,239 28,966,023 8,097,847 13,109,514 $ 142,443,294 3,900,000 2,016,000 $ 148,359,294 4,727,010 2,500,000 $ 155,586,304 FY 2010 -11 Audited $ 15,424,734 74,630,737 27,538,560 7,644,104 14,215,086 961,139 $ 140,414,360 1,061,000 2,128,000 $ 143,603,360 1,024,096 3;800,000 $ 148,427,456 FY 2011 -12 Projected $ 13,620,392 76,392,827 28,947,199 9,243,741 17,743,778 780,000 ( 3,000,000) $ 143,727,937 2,094,130 2,314,000 $ 148,136,067 3,389,691 4,016,812 $ 155,542,570 FY 2012 -13 Proposed $ 14,477,489 77,394,664 29,328,288 9,168,326 16,926,918 750,000 $ 148,045,685 3 ,600,000 2,466,000 $ 154,111,685 677,000 7,500,000 $ 162,288,685 1`0 piiii�� iqj� 111;11134 1 L Original Balance Total Issuance 06130/2013 Payments 2013 Principal Interest Paid to Date Pre- Annexation Agreement 18,000,000 4,800,000 1,200.000 - 13,200,000 2010 Civic Center COP Series A 20,085,000 15,570,000 3.344,850 569,850 4,515,000 2010 Civic Center COP Series B` 106,575,000 106,575,000 7,243,417 7,243,417 - Section 108 Loan 2,400,000 1,578,000 202,485 94,485 822,000 Total Debt Service 147,060,000 128,523,000 11,990,752 7,907,752 18,537,000 2010 Civic Center COP Series B BAB Subsidy' - - (2,535,196) (2,535,196) - Total Debt Service w/ BAB Subsidy 147,060,000 128,523,000 9,455,556 5,372,556 18,537,000 'The City is required to budget the 2010 Civic Center COP Series B debt service at the gross amount. However, we expect to receive $2,535,196 of Federal BAB Subsidy, thus reducing our total debt service. y. Year of Final Payment 2017 2041 2041 2024 2041 12 $35,000,000 ❑Total Employee Cost ❑Total City Cost $30,000,000 $25,000,000 $20,000,000 $15,000,000 l i $10,000,000 $5,000,000 + - — - I i 2007 Actual 2Q08 Actual 2009 Actual 2010 Actual 2011 Actual 2012 Projected 2013 Projected 2014 Projected 20.15 Projected Total City Cost $ 1'6,207,423 $ 16,453,906,1 $ 18,405,078 $ 17,54'8,479 $ 16,829;589 $ 20,545,207' �$ 18,920,700 5 22,347,022 $ 23,237,330 Total Employee Cos S - $ 683,685 $ 1,466,925 $, 1,640,056 '$ 2,445,002 $ 4;144,324 $ 6,343,051' $ 6,516,894 $ 6,728',693 12 Information Technology, Internal Service Fund a Getting Smarter with Technology 91 Upgrade our ERP (main financial system) to meet fiscal and performance measurement needs Upgrade our Computer-Aided Dispatch & Records Management in the Police Department ■ Improve online permitting system to allow for electronic plan checking ■ Improve all customer service portals 13 '2 �'��'ompansoii of Staffing Levels THREE -YEAR COMPARISON OF FULL -TIME POSITIONS Original Original Proposed Variance 2010 -11 2011 -12 2012 -13 from 2010 -11 F/T F/T F/T F/T (GENERAL FUND 722.00 670.00 669.00 -53.00 71DELANDS FUND 5.00 5.00 4.00 -1.00 (WATER ENTERPRISE FUND 37.00 38.00 33.50 -3.50 SEWER ENTERPRISE FUND 15.00 15.00 16.00 1.00 EQUIPMENT FUND 13.00 13.00 11.00 -2.00 INFORMATION TECHNOLOGY FUND 0.00 22.00 21.50 21.50 TOTALS 792.00 763.00 755.00 -37.00 Notes: Above schedule does not include full -time equivalent staffing (part -time employees like seasonal guards, marine life protection rangers, parking lot attendants, library pages, more. The; proposed budget has 126.14 part- time /FTEs, up from 123.27 part- timelFTEs in FY 2011 -12.`` 1.4' Ln # of Positions fJ O O O tp ilY O Ln # of Positions Budgeting for We are requesting Council consideration of the f®i0®wina proposals included in ICY 2012 -13 budget: Allocation of $3 M in General in our IT Strategic Plan. (Fund surplus to invest • Increase our contribution to the (Facilities Financing Plan by $3.5 M to ensure strong reserves are available for Council approved facilities. • Net redaction of 6 full -time positions, includes some reclassifications. Increase our General f=und contribution to the CIP by $1.6 M to keep our basic infrastructure (roads, sidewalks, alleys, streetlights) in good shape. 16 o- �� f�NJaD 2011 -12 Projected Proposed Original 2011 -12 FY 2012 -13 Budget Year End Budget GENERAL FUND REVENUES: PROPERTY TAXES $ 72,155,615 $ 72,612,217 $ 72,975,146 SALES TAXES $ 25,088,167 $ 25,719,170 $ 26,793,879 TOT TAXES $ 12,786,000 $ 13,715,150 $ 14,390,158 ALL OTHER GENERAL FUND REVENUES $ 38,926,001 $ 40,455,757 $ 41,642,213 SUBTOTAL GENERAL FUND REVENUES $ 148,955,783 $ 152,502,294 $ 155,801,396 GENERAL FUND EXPENDITURES: GENERAL GOVERNMENT $ 13,379,052 $ 13,620,633 $ 14,477,489 PUBLIC SAFETY $ 75,856,581 $ 76,392,827 $ 77,394,664 PUBLIC WORKS $ 28,821,937 $ 28,947,199 $ 29,328,288 COMMUNITY DEVELOPMENT $ 8,939,933 $ 9,243,500 $ 9,168,326 COMMUNITY SERVICES $ 15,307,816 $ 17,743,778 5 16,926,918 OPEB $ 2,314,000 $ 2,314,000 $ 2,466,000 DEBT SERVICE /NON DEPT EXPENDITURES $ 780,000 $ 780,000 $ 750,000 OPERATING BUDGET SAVINGS $ - $ (3,000,000) $ - CAPITAL PROJECTS (NEW FUNDING, NO REBUDGETS) $ 2,094,130 $ 2,094,130 $ 3,600,000 SUBTOTAL GENERAL FUND EXPENDITURES $ 147,493,449 $ 148,136,067 $ 154,111,685 OPERATING SURPLUS / AVAILABLE FOR ASSIGNMENT $ 1,462,334 $ 4,366,227 $ 1,689,711 Note: Transfers In /Out are not reflected on this schedule. 17 Conclusion Year-end will close wi!fi surplus that City Manage additional improvement h a� a � - Proposed budget is balanced and: proposes ; � f (� • Protects critical services • Restructures the organization for efficiency, eliminating about 8 positions (approximately 1 layoff) • Provides more for facilities, streets, roads, F • No use of reserves for operating purposes • Asks for continued work in contracting out ® Asks for continued work on penslion changes 4. 1'8 0 Looking, Ahead to FY'2013=14 (Work mis not done!) W Imo' continue o look III . • regional collaboration with neighboring cities Dike Costa Mesa, lrvine, and Huntington Beach on services including public safety services. • Effective private-sector provision of services. • Continue working toward using technology better to be smarter, faster, and leaner. We need to get smarter before we can get smaller /faster! u 19 City's budget documents can be accessed at: www.newportbeachca.gov /budget City o Newport u e ..1 ch 1 FY 2012-13 Proposed Budg] L 20 i =rt 20