1. Financial Status Update & FY 2017-19 Proposed Biennial Budget
May 23, 2017

2. Economic Conditions Recession ahead? New administration
Some risks to State economy/ budget
Leveling in some Santa Monica revenues

3. Major considerations Personnel Costs
Retirement discount rate: 7.5% lowered to 7.0%
Workers’compensation: $3.5M; 10% growth
Medical premium increases
Large Infrastructure Projects

4. Financial Status Update

5. Other Funds Status Self-Sustaining
Wastewater, Water, BBB, Beach, Airport, Cemetery
Watch/Adjust
RRR
Requiring Subsidy
Pier, Housing

6. Proposed Biennial BudgetFY FY
Citywide
$773.7M
$802.1M
Permanent Position Changes
-3.8 FTE
-5.0 FTE
General Fund
$504.9M
$530.5M
+3.4 FTE
-4.0 FTE

7. Performance Management in Santa Monica
4/9/2019
Performance Management in Santa Monica
Outcomes that benefit Santa Monica
Goals that align with outcomes
Track progress
Deploy resources
Modify programs to reach targets

9. Framework Outcome Areas

10. Capital Improvement Program
Addendum to the FY Adopted Budget

11. FY 2017-18 Exception-Based Process
Urgent changes that must meet CIP Priorities
Health and Safety
Federal or State regulations
Maintain existing infrastructure
Offsetting funding sources
Urgent community priority
Next Budget Cycle
FY Biennial CIP Budget will complete an updated five-year capital improvement program plan

12. Major CIP Budget Increases
City Services Building - $76.8 M
(Bond financing)
Affordable Housing Funding - $19.5 M
(Redevelopment-related funding & settlement funds)
Water, Wastewater and Stormwater Related Projects - $14.5 M
Sustainable Water Infrastructure Project (State loan funding)
Arcadia Water Plant Membrane Replacement (Water Fund)
Clean Beaches Project (Stormwater Fund)
Lincoln Blvd. Streetscape Improvements- $2.9 M
(Transportation Impact Fee Revenues)

13. Citywide User Fee Study
POLICY FOR MOST FEES
100%
PUBLIC RECORDS, POLICE REPORTS COPYING per State law
<100%
BUILDING PERMIT FEES – SMALL RESIDENTIAL PROJECTS
50%
ANIMAL CONTROL to encourage licensing and spaying / neutering
40%
COMMUNITY AND CULTURAL SERVICES for access to community recreation and social services benefits
32%

14. Fee Study Summary 635 fees reviewed 40 new 89 reduced
14 significant adjustments
43 eliminated
58% cost recovery
Staff recommendation: $1.4M ($1M General Fund)

15. Beach Parking Rates Central Beach, South Beach, North Beach lots
Summer Weekday/Weekend Daily: $2 increase
Winter Weekday Daily: $1 increase
Winter Weekend Daily: $2 increase

16. Public Input and Next Steps
Giving public testimony
May 23, 24 study sessions
June 27 budget hearing and adoption
Resources
Proposed budget, staff report, fee study: Council Agenda website

17. City Council
Expenditures
$1.0M – General Fund
Staffing: 1.0 FTE

18. City Manager Expenditures Staffing: 70.2 FTE Changes
$12.1M – General Fund
Staffing: 70.2 FTE
Changes
Senior Advisor on Airport Affairs
Office of Civic Wellbeing

19. Records & Election Services
Expenditures
$2.6M – General Fund
Revenues
$0.5M – General Fund
Staffing: 13.5 FTE

20. Police Expenditures Revenues Staffing: 434.7 FTE Changes: -1.0 FTE
$85.9M – General Fund
$1.6M – All Other Funds
Revenues
$18.5M – General Fund
$0.3M – All Other Funds
Staffing: FTE
Changes: -1.0 FTE

21. City Attorney Expenditures Staffing: 48.6 FTE Changes
$11.4M – General Fund
Staffing: 48.6 FTE
Changes
Code Enforcement & Criminal: +2.0 FTE

22. Public Works Expenditures Revenues Staffing: 558.3 FTE Changes
$51.2M – General Fund
$93.6M – All Other Funds
Revenues
$4.4M – General Fund
$126.5M – All Other Funds
Staffing: FTE
Changes
Water Conservation Unit
Water Neutrality Ordinance
Ishihara Park Maintenance

23. Planning & Community Development
Expenditures
$34.5M – General Fund
$0.5M – All Other Funds
Revenues
$56.6M – General Fund
$7.0M – All Other Funds
Staffing: FTE
Changes:
Building and Safety/Permit Center reorganization – no net cost

24. Big Blue Bus Expenditures Revenues Staffing: 462.0 FTE Changes:
$78.8M – Big Blue Bus
Revenues
$91.6M (Operating/Capital)
Staffing: FTE
Changes:
Strategic Reorganization
Senior Administrative Analyst: +1.0 FTE – no net cost

25. Fire Expenditures Revenues Staffing: 137.0 FTE Changes
$40.7M – General Fund
Revenues
$4.3M – General Fund
Staffing: FTE
Changes
Cadet Program: +1.0 FTE – no net cost
Recruit Academy

26. Community Risk Reduction
Successful Outcomes
“Wellbeing”
Haz Mat
USAR / ARRF
Prevention
Community Risk Reduction
Emergency Response
EMS/Fire
Dispatch
Station Alerting
Radio System
Technology
Strategic Plan
Training
Succession
Deployment
Performance Metrics
PPE, Tools, & Equipment
Personnel
Facilities
Apparatus

27. Housing and Economic Development
Expenditures
$5.8M – General Fund
$24.1M – All Other Funds
Revenues
$6.7M – General Fund
$28.4M – All Other Funds
Staffing: 39.3 FTE
Changes
Housing Authority Subsidies
Voucher Utilization
Housing Outreach

28. Human Resources Expenditures Staffing: 29.2 FTE Changes
$5.0M – General Fund
Staffing: 29.2 FTE
Changes
Reorganization
Benefits billing audits: +1.0 FTE
Citywide Management Fellowship Program: +2.0 FTE

29. Library Expenditures Revenues Staffing: 112.5 FTE
$12.9M – General Fund
$38.0K – All Other Funds
Revenues
$0.4M – General Fund
Staffing: FTE

30. Information Services Expenditures Revenues Staffing: 52.0 FTE Changes
$8.5M – General Fund
$1.9M – Community Broadband Fund
Revenues
$36.5K – General Fund
$2.1M – Community Broadband Fund
$2.3M – Info. Tech. Replacement and Services Fund
Staffing: 52.0 FTE
Changes
Cyber and data security: +1.0 FTE
Technology training budget

31. Community And Cultural Services
Expenditures
$27.7M – General Fund
$9.8M – All Other Funds
Revenues
$5.7M – General Fund
$17.4M – All Other Funds
Staffing: FTE
Changes:
Beach Patrol and monitoring
Childcare subsidies

32. Finance Expenditures Revenues Staffing: 79.0 FTE Changes
$15.1M – General Fund
$5.3M – Risk Management Funds
Revenues
$265.1M – General Fund
$31.0M – Risk Management Funds
Staffing: 79.0 FTE
Changes
Procurement analysis: +1.0 FTE – no net cost

33. Recommended Actions
Receive the FY through FY Financial Status Update
Receive City Departments’ presentations on the FY Proposed Biennial Budget
Review and provide direction to staff on the FY Proposed Biennial Budget and FY Proposed Capital Improvement Program (CIP) Budget
Review and provide direction to staff on the recommendations of the Fee Study Report and proposed Beach Parking rates