The URL can be used to link to this page

2008-05-27 Power Point - Financial OverviewCity of Alameda Budget Overview 2008-2010 May 27, 2008 Agenda • Accomplishments • Financial Overview • Budget Overview - Budget Discussion - Department Budgets Overview - Enterprise Funds Review • Capital Improvement Program • Revenue Team Report • Issue Bin Review It's the Economy National Economy - Slowing economy in 2007; some growth possible in early 2010 - Credit tightening, reduced housing starts, consumer confidence falling State and Regional Economy - State budget deficit growing -- $17 B - Housing sales -declining; volume and price - Credit -tightening; housing & consumer debt Most Bay Area cities facing budget challenges in the current economy as a result of declining tax revenues. February 2008 Revenue estimates down $4 million -Property Transfer Tax - $1.4 million -Property Tax - $821,000 -Vehicle In Lieu Fee - $828,000 -Planning & Building Fees - $336,000 -Other - $564,000 City Budget 2008-2010 Budget Balancing Strategies Guiding Principle • Ongoing expenditures are supported through ongoing revenues. 2008-2010 Budget Balancing Strategies Approach • Shared mid-year budget information with employees • Ensure appropriate funding sources for positions and projects • Review revenue raising opportunities • Identify citywide savings options • Department review of 8% reduction 2008-2010 Budget Balancing Strategies Approach • Identify citywide savings options - Refinance existing debt - Internal Service Funds Review • Vehicle replacement • Technology replacement 2008-2010 Budget Balancing Strategies Approach • Department review of 8% reduction - Selective hiring freeze by unfunding positions - Reductions in personnel allocations • Early retirement option - Restrict training and travel expenses - Reduce funding for supplies and services - Identify increases in existing department revenues 2008-2010 Budget Balancing Strategies Assumptions • No new revenue sources • No cost-of-living increases not already in employee group contracts • Rebate to Golf Enterprise of Return on Investment and Golf Surcharge - $271,000 reduction • Include increase for Election costs • Retiree health appropriation limited to annual payment Agenda • Accomplishments • Financial Overview • Budget Overview - Budget Discussion - Department Budgets Overview - Enterprise Funds Review • Capital Improvement Program • Revenue Team Report • Issue Bin Review City of Alameda Total Budget Fiscal Year 2008/09 $307.1 Million Capit Other Fi $50. 16% ~ower ~m 9% Community 22% Improvement Commission $26.4 9% ARRA Enter rise $14.6 p o General Fund $18.0 5 /o ~~~ a City Services Fiscal Year 2008/09 $82.8 Million General Administration Mayor/City Council City Manager Human Resources City Clerk Finance 8~ Info City Attorney Technology Parks & Rec $3.9 5% Planning & Bldg $4.1 5% Public Work $8.6 10% General Administrat $6.5 8% ~~v. 0 0 ice 3.8 ~% Safety 1079/82 PEB G.8 Library General Fund Revenues Fiscal Year 2008/09 $75.4 Million Business License Trans. Occup. Tax .~. ~ ,~. „ Use o Pi CurrE Franchise Fe $7 1C Transfers fry Fur $9 12 Tax Proper Sales Tax (incl Prop Motor Vehicle In-Lieu 172) Fees $5.7 $6.0 8% 8% General Fund Top 5 Revenue Trends $25 $20 $15 $10 $5 $0 *FY08 Forecast Property Tax Utility Users Ta~c Nbtor Vehicle In Lieu Ta~c Sales Ta~c Property Transfer Tax Property Tax tility Users Tax for Vehicle In Lieu Tax > Tax ~ty Transfer Tax 2002 2003 2004 2005 2006 2007 Est 2008* Plan 2009 Plan 2010 Property Tax $14.7 $14.8 $15.3 $16.7 $18.8 $20.9 $21.5 $22.5 $22.9 Utility Users Tax $7.8 $7.4 $7.9 $8.1 $8.3 $8.7 $8.4 $9.1 $9.3 Motor Vehicle In Lieu Tax $4.5 $4.1 $3.4 $5.1 $6.0 $5.5 $5.8 $6.0 $6.1 Sales Tax $6.2 $5.9 $6.0 $5.2 $5.1 $5.0 $5.4 $5.7 $5.7 Property Transfer Tax $2.2 $3.1 $3.2 $4.3 $6.6 $4.2 $4.3 $4.1 $3.9 ~~Millions) Adopted Midyear Change $ 22.3 $ 21.5 $ (0.8) 8.4 8.4 - 6.7 5.8 (0.8) 5.4 5.4 - 5.7 4.3 (1.4) $ 48.6 $45.5 $ (3.0) ~~~~ ~uus 2004 2005 2006 2007 Est plan Plan 2008 2009 2010 General Fund Appropriations Fiscal Year 2008/09 $75.4 Million Risk Management Tran: Libi $1 2 Public We $8.6 11% General Administration Mayor /City Human Council Resources City Manager City Clerk City Attorney Finance & Info Technology Rec & Park: $3.9 5% General Admin $6.5 9% safety pension 'EB 8 ~LV.J 0 0 Workforce History 900 800 700 600 500 400 300 200 100 0 696.3 723.6 731.2 738.2 719.7 679.8 698.7 696.7 694.7 643.9 657.8 661.7 594.0 588.4 591.4 617.6 ~~ FY94 FY95 FY96 Fl(97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 ^ City ^ AP&T ^ Housing Authority Total Department Budgets Overview T ran: Lik Public W~ $8.6 11% General Administration Mayor /City Human Council Resources City Manager City Clerk City Attorney Finance & Info Technology Rec & Park: $3.9 5% General Admin $6.5 9% safety ension EB 3 ~LV. J 0 0 Risk Management Police Risk Management $1.7 Transfer to 200 Library $1.8 2°/a Public Works $8.6 11% Rec & Parks $3.9 5% General Admin $6.5 9°/a Debt Q~ o Oth e r* $2.6 3°/a Fire $20.9 28% Public Safety 1079/82 Pension & OPEB $4.8 6% Police Department Budget Balancing Strategies Workforce Changes • Unfund one Jailer • Unfund one Senior Clerk • Unfund one Sr. Public Safety Dispatcher (Five Police Officer positions unfunded since July 2005 will remain unfunded) Police Department Budget Balancing Strategies n U n U r1 U n U Restructure Crossing Guard Program Attrition savings Overtime reduction One-time donation for Animal Shelter Fire Trans Libi $1 2' Public We $8.6 11% Rec & Park: $3.9 5% General Admin $6.5 9% Public Safety 1079/82 Pension & OPEB $4.8 6% .~~v.~ 28% Risk Management ~~ ~ Debt Other* Fire Department Budget Balancing Strategies • Workforce Changes: • Unfund one Administrative Management Analyst • Unfund one Fire Training Captain • Reduce Call-back Overtime • Rotating Fire Company Closures • Attrition Savings (Six Firefighter positions unfunded since July 2004 will remain unfunded) General Administration Risk Management a,, , Debt Other* P Re ~ General Administration Human Resources Finance & Info Technology "°`--Manager City Clerk Gen Adi $E 9' City Attorney ~LV.J 28% Safety pension DEB .8 6% General Administration Budget Balancing Strategies - Early Retirement Offer -Finance Department • Eliminate one Administrative Management Analyst • Eliminate one Telecom Maintenance Technician - Unfund • One Financial Services & Budget Manager • One Sr. Management Analyst -Finance • One Admin. Management Analyst - H.R. in 2009/10 - Reduce • Part-time allocations • Risk Management insurance premiums Recreation and Parks Risk Management a~ ~ ~ 1'1o h+ fl+hp r* Publ Rec & Pa $3.9 5% General A $6.5 9% Safety 'ension & fB G.8 ~LV.J 0 0 Recreation and Parks Budget Balancing Strategies • Workforce Changes: - Eliminate one Senior Clerk - Reduction in part-time allocation • Reduced staff at park sites • Eliminate two special events • Limit night lighting to tennis courts in Washington Park • Reducing summer swim program Public Works Public Work: $8.6 11% Rec & Parks $3.9 5% General $6. 9°/ 1079/82 OPEB yi~v.a nnni 2% Debt /~ ^ 1T~ A M~ Public Works Budget Balancing Strategies Workforce Changes • Unfund one Intermediate Clerk • Unfund one Maintenance Worker II • Unfund one Maintenance Team Leader - Elimination of in-house Street Tree Crew Annual Maintenance Program Sources $2.7 Million per year Tidelands Gas Tax X0.1 M Golf 2% ~ $0.03M Misc $0.1 M 5% Const asure B >0.7M 26% 3eneral Fund $0.5M 18% yiv.~~v~ 14% Annual Maintenance Program Appropriations $2.7 Million per year Parks Qn inn Sev $0.. go Drainage $0.2M 8% General Faciliti $0.5P 18°/a Streets $0.9M 34% yrv. viva 0 0 Ped Bike $0.1 M 400 ~ Marine ~n ~ nn Public Works Annual Maintenance Programs $2.7 Million per year ^ Beach Sand Replacement ^ Shoreline Inspection ^ Storm Drains y ~~ - - ~ ~ ~ A =, I ~~ ~ >} rt~~F F. 4 ~ ,rid ~ a z ~~, s _ ~, f t e y,~ ~, M ".*~ ~ ~9 ~ + ~A~~ ~+~._ ~- - 4.. i,~~, lid li' ~`~ q ~i,. F z~ o- c YAi~' ~ ~, ~ .. - ie4 ~ ~: . 5 ,' ~ ~ ~t ~ r _ _,~ ~_~~ ~~ _ '. , •~~ ^ Golf Course Culverts ^ Lagoon Upgrades ^ Street Sweeping Signage ^ Doolittle Landfill Public Works Annual Maintenance Programs $2.7 Million per year ~_ +;~ta` ^ Landscape Medians ~ ^ Parking Meters ^ Street Trees ~~'" ~ ~. ~~, ~ _ :~ - e.~~ „ ~".. , ~ .. ~~~.. ~ vim' °x° - -° :.~ ~- F: a; e ka ~` ~-~ a ~, ~" ~, ,i~ `~~ ,_ ~ ~°- ~,^~ _ e °~' 3" ch 41 .., - ~. __ u .: v, ~' - .. `6 , _ ~ ~" ,si ti-, >~ ~~! j°. a . ~ ins ,yam i '~"r ~, `~ ^ Congestion Management Program ^ Street Striping and Signing ^ Pothole Patching Public Works Annual Maintenance Programs $2.7 Million per year ^ Traffic Signals and Controllers ^ Traffic Operations qj i n 1 ~ '.. _"~'~`i . ~. ~. ,t~ ~ ' V ~ ~'~, ~~~ i S t r-~ 1 I ]L 'ifn I~. ~~ ~" i3 :r ~ - _.~. ~ ,i f • r ~--- R ;.~ ,: ~~ ~'~ ~'~ ^ Employee Transit and Eco-Pass ^ Bicycle Program ^ Safe Routes to School Improvements City Services Fiscal Year 2008/09 $82.8 Million Library $3.3 4% Athletic Trust $2.0 2% Parks & Rec $3.9 ~ 5% Planning & Bldg $4.1 5% Public Works $8.6 10% General Administration $6.5 8% Other Risk Mgmt $2.4 $1.7 Debt Fire $20.9 25% Police $23.8 29% Public Safety Pension 1079/82 & OPEB $4.8 6% Library Budget Balancing Strategies • Reduction in part-time allocation - Restructuring of Library hours • Refinancing of debt service City Services Fiscal Year 2008/09 Library $g2.8 Million a~ , Parks & Rec $3.9 5% Planning & Bldg $4.1 5% Public WorN $8.6 10% General Administrati $6.5 8% Police $23.8 29% lic Safety ~nsion 79/82 & )PEB $4.8 6% ~LV.~7 25% • Establish Planning and Building Special Revenue Fund - Reflects State law restrictions on use of funds - Requires Department to be self-sustaining - Appropriately accounts for Planning and Building fund balance Planning and Building • • • Enterprise Funds Review Chuck Corica Golf Complex Ferry Services Sewer Services uu ;, r^ ~~ ~ '"~ Enterprise Funds Sources and Uses of Funds ($Millions) Chuck Corica Golf Complex $s.o $6.0 $4.0 $2.0 $o.o Use of Fund Balance $0.4 $4.4 $4.8 Revenue Expense Golf Enterprise Budget Balancing Strategies • Workforce Changes: • Eliminate one Golf Services Manager • Unfund one General Manager • Unfund one Golf/Park Maintenance Worker • Refinancing of Debt Service • Rebate of Return on Investment and Surcharge from General Fund - $271,000 • Use of Reserve Enterprise Funds Sources and Uses of Funds ($Millions) Ferry Services $a.o $6.0 $4.0 $2.0 $o.o $3.6 $3.6 Revenue E~ense Enterprise Funds Sources and Uses of Funds (Millions) Sewer Services $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 Use of Fund Balance $2.1 $7.6 $5.5 Revenue Expense Agenda • Accomplishments • Financial Overview • Budget Overview - Budget Discussion - Department Budgets Overview - Enterprise Funds Review • Capital Improvement Program • Revenue Team Report • Issue Bin Review Agenda • Accomplishments • Financial Overview • Budget Overview - Budget Discussion - Department Budgets Overview - Enterprise Funds Review • Capital Improvement Program • Revenue Team Report • Issue Bin Review Revenue Team • Included managers from every City department. • Tasked to examine potential measures to generate additional revenue for General Fund activities. • Met on an ad hoc basis over three months. Revenue Team • Revenue Team considered more than 30 potential revenue generating measures. • Measures generally fall into three categories: - Voter authorized measures (taxes and property related fees) - User fees - Entrepreneurial/Miscellaneous Measures General Observations • Highest revenue generating measures require voter approval. - No user fee increase or entrepreneurial measure generates more than $500,000 annually. • Increasing certain user fees generates the most immediate and certain increases in revenue. • Entrepreneurial measures are the most risky and uncertain Recommendations • Survey voter tolerance for: - a) Increase in the property transfer tax - b) Parcel Tax • Either of these taxes could raise significant new revenues - Parcel tax burden and property transfer rates still low compared with neighboring cities - Significant issues with other tax mechanisms Recommendations • Increase user fees for public safety services a. EMS/Ambulance charges b. Fire inspection fees c. Police service fees - towing - licensing/clearance letters - animal shelter services • Services provided are an excellent value for Alameda residents • Total new revenues from increasing public safety fees to 100% of costs, approximately $600,000 annually. Recommendations • Consider implementing new EMS/Ambulance Subscription Service - $3 per month fee to cover insurance deductible, co-pay, or limits for EMS/ambulance service - Most private insurance does not cover 100% of EMS/ ambulance charges - Currently users are personally responsible for uncovered amounts - Fee included as a surcharge on the electric bill, residents can "opt out" by simply not paying the fee - Program is popular in Southern California where public ambulance transport is common - Assume 33% participation rate - Projected revenue of $380,000 per year Recommendations • Longer Term Revenue Development Strategies - Continue to revise and refine land use and economic development policies to appropriately encourage revenue-producing development - Identify un-used or under-utilized city real property assets for future lease or sale Agenda • Accomplishments • Financial Overview • Budget Overview - Budget Discussion - Department Budgets Overview - Enterprise Funds Review • Capital Improvement Program • Revenue Team Report • Issue Bin Review City of Alameda Budget Overview 2008-2010 May 27, 2008