City Council meeting April 29, 2019 Item 12 Public Hearing: City Manager’s Recommended Fiscal Year 2020 Operating Budget & Fiscal Year 2020-2024 Capital Improvement Program Budget City Council meeting April 29, 2019 Item 12

May 7, 2018 Despite significant reductions the cost of maintaining service levels is outstripping resources Perpetual Cut-Mode FY19 - $2 m and 12 FTEs FY18 - $4.1 m and 14 FTEs In addition to cuts during the last recession Essential City services at risk Investment in key infrastructure lacking $100s million unfunded capital needs Fire station upgrade and replacement 9-1-1 response communications Failing street lights Broken sidewalks

General Fund Reserve

November 6, 2018 Measure I – ¾ cent sales (use) tax to maintain essential services/reinvest in critical infrastructure Approval rate: 68.74% Estimated $21 million per year Measure J - advisory measure regarding use of 1/3 Measure I proceeds for public schools Approval rate: 72.05% Estimated $7 million per year

Improved fiscal outlook

Improved Fiscal outlook After several cut budget years, things have stabilized No proposed service reductions in the General Fund Very modest enhancement requests Totaling $505,000; of which $357,000 is one-time funding Working to address issues in other funds e.g. Library, Off-street parking Longer-term, 4 or 5 years out things get tight again Sooner if there’s a recession Managing CalPERS costs will be the biggest challenge Contributions have nearly doubled since FY14 Will continue to rise dramatically over next five years

CalPERS Unfunded Accrued Liability As of 6/30/17 – $460 million

Focus for Operating & Capital Budgets Maintain fiscal stability Preserve existing service levels Invest in overdue capital projects Minimize new positions Manage costs and reduce where possible Pursue opportunities for economic development New Hotel development Sales tax generators – Home Depot; support auto dealers Increase the property tax base: Lincoln Properties project, Alexandria and others

Proposed use of Measure I & Measure J

Operating Budget Total Appropriations

General Fund Appropriations

Total Revenues

General Fund Revenues

Recommended G.F. Operating Budget Enhancements Paramedic Training for Fire Fighter Staff - $317,000 one-time cost Addition of a Case Manager to further the City’s existing Homeless Outreach efforts - $80,000 Addition of 1.0 Recreation Site Coordinator at Washington Park - $68,000 Census outreach - $40,000 Total Amount $505,000; $357,000 one-time

Personnel FY 2020 Operating Budget 76.42 previously Non-Budgeted FTEs were included in the total for FY 20 The FTE count now includes all positions, Firefighter Trainees – 8.0 MASH – 56.0 Retiree CTW – 12.42 Positions (FTEs) added during FY 19: City Attorney –1.5 from State of CA Grant Housing –1.0 from Emergency Solutions and CoC grants Public Health –7.25 related to various grants received

Positions requested for FY20 New FTEs requested for FY 20: Finance: 2.25 – Increase 0.75 to 1.0 Sr. Purchasing Assistant; new Sr. Accountant and Collections Specialist Funding shift from Services & Supplies Fire: 1.0 – Fire Inspector, cost offset by revenue from inspections in Building Fund HR: 0.25 – increase HR Specialist from 0.75 to 1.0 HS&R: 2.46 – Increase staffing at Washington Park to 1.0; add special event Facility Assistants offset by facility rental revenue Public Health: 1.0 – Environmental Health Technician funded by health permit fees

Personnel Vacant FTEs eliminated for FY 20: FTE Reconciliation PW – 1.0 FTE – Capital Projects Manager PWP – 1.0 FTE – Engineering Manager FTE Reconciliation FTEs FY19 Adopted 2,181.57 Added during FY19 9.75 Non-Budget FTEs for FY20 76.42 New FTEs for FY20 6.96 Eliminated FTEs for FY20 (2.00) FY20 Recommended 2,272.70

Recommended Capital Budget

Recommended Capital Budget Enhancements Replacement of 9-1-1 emergency communications equipment - $2 million recommended, total project cost estimate $8 million Replacement of Fire Station #37 - $1.5 million recommended, total project cost estimate $21.3 million Fire Station renovations and improvements - $1.5 million recommended, total project estimate cost $3 million Citywide facility improvements (Jackie Robinson Community Center and La Pintoresca Library) - $1 million High-voltage street light replacement/conversion - $1 million, total project cost estimate $11.5 million

Recommended Capital Budget Enhancements Colorado Street Bridge suicide prevention barriers - $750,000, total project cost estimate $3 million City Hall building security management - $625,000, total project cost estimate $1 million Fire alarm and sprinkler system for Central Library - $500,000, total project cost estimate $1,050,000 ADA sidewalk improvements/replacement - $500,000 additional funding to be added to $1 million annual General Fund contribution and $500,000 in Community Development Block Grant funding Total amount $9,375,000

Other Capital Budget Highlights Traffic safety enhancements New traffic signals at Green St. and Holliston Ave.; Fair Oaks Ave, and Bellevue Dr. Left turn phasing at San Gabriel Blvd. and California Blvd.; Fair Oaks Ave. and Bellefontaine St. Numerous park projects Villa Parke Community Center Washington Park restroom & community room Playhouse District park Streets and Streetscapes $5.4 million in street resurfacing and ADA improvements

5-Year forecast

Budget Review Schedule Joint City Council Finance Committee meetings Both Operating & Capital Budgets All meetings to start at 2:30 pm May 6 May 13 May 20 May 27 – Memorial Day – no meeting June 3 June 10 June 17 – Adoption that evening