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

2. 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

3. General Fund Reserve

4. 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

5. Improved fiscal outlook

6. 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

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

8. 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

9. Proposed use of Measure I & Measure J

10. Operating Budget Total Appropriations

11. General Fund Appropriations

12. Total Revenues

13. General Fund Revenues

14. 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

15. 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

16. 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

17. 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

18. Recommended Capital Budget

19. Recommended Capital Budget Enhancements
Replacement of 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

20. 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

21. 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

22. 5-Year forecast

23. 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