HomeMy WebLinkAbout2012/04/17 Item 11ITY COU NCI L
STATEMENT
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CHULA VISTA
APRIL 17, 2012, Item~~
ITEM TITLE: REPORT TO THE CITY COUNCIL OF THE CITY OF CHULA VISTA ON
THE PROPOSED GENERAL FUND BUDGET FOR THE CITY OF
CHULA VISTA FOR THE FISCAL YEAR ENDING JUNE 30, 2013
SUBMITTED BY: CITY MANAGER
FINANCE DIRECTOR/CITY TREASURE
REVIEWED BY: CITY MANAGER
r
ASSISTANT CITY ANAGE
4/STHS VOTE: YES ^ NO
SUMMARY
In January 2012, staff presented to Council the Fiscal Recovery and Progress Plan fo
fiscal years 2013 to 2017. As part of the Fiscal Recovery and Progress Plan the Five-Yea
Financial Forecast for the General Fund was updated. The updated forecast indicates
that the City's General Fund had a projected deficit of $3.0 million for fiscal year 2012
13. Since January, staff has continued to work on the development of the fiscal 2012-1:
budget. The following report includes an update on the fiscal year 2012-13 budget anc
the current projected deficit for the General Fund. We are continuing to work with al
City departments to address this projected deficit and will present a balanced Genera
Fund budget at the May 25th Council Workshop.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed action fc
compliance with the California Environmental Quality Act (CEC1;A) and has determine
that the activity is not a "Project" as defined under Section 15378 of the State CECl,
Guidelines because the action only involves fiscal issues which do not involve an
commitment to any specific project which may result in a potentially significant physic
impact on the environment; therefore, pursuant to Section 15060(c)(3) of the Stat
CECZA Guidelines the activity is not subject to CEQA.
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RECOMMENDATION
That the City Council accepts the report and provides feedback on the proposed fiscal
year 2012-13 budget.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
On January 12, 2012 staff presented the Fiscal Recovery and Progress Plan at a Council
Workshop. As part of the Fiscal Recovery and Progress Plan, staff updated the Five Year
Financial Forecast based on the preliminary fiscal year 2012-13 budget. The forecast
identified an estimated deficit of $3.0 million for fiscal year 2012-13.
The following report is divided into the following sections:
• Summary of the Fiscal Year 2012-13 Preliminary Budget -this section provides a
summary of the preliminary budget (as presented in January 2012) that was the
basis for the five year financial forecast.
• Updated Fiscal Year 2012-13 Budget -this section provides a summary of the
changes made to the preliminary budget based on updated revenue and
expenditure projections and other department requested changes.
• Budget Balancing Proposals -this section provides a summary of the budget
balancing proposals.
• Summary of Staffing Changes -this section provide an overview of the proposed
staffing changes in the General Fund.
• Next Steps -this section provides an outline of the remaining budget
development schedule.
Summary of the Fiscal Year 2012-13 Preliminary Budget
The following table reflects the Council adopted fiscal year 2011-12 budget and the
preliminary budget for fiscal year 2012-13.
General Fund Summary as of January 2012
• ~- • . •..r -• ~
A Revenues $ 124,578,952 $ 120,642,630 $ (3,936,322)
B Expenditures $ 124,578,952 $ 123,641,696 $ (937,256)
Surplus/Deficit $ - $ (2,999,066) $ (2,999,066)
As indicated on the table above the preliminary baseline budget for fiscal year 2012-13
reflected a budget deficit of $3.0 million. To follow is a brief discussion on the changes
in General Fund revenues and expenditures over the two fiscal years. Section A
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APRIL 17, 2012, Item_~
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highlights major changes in revenues and Section B highlights major changes in
expenditures.
Section A -Summary of General Fund Revenues
Current economic reports continue to reflect a soft economy. Setting the elimination of
the Economic Contingency Reserve aside (reflected under "Other Revenues" in the
following table), the changes in all other revenues result in a small net decrease when
compared to the prior year. The following table reflects these revenue changes.
General Fund Revenues
Property Taxes $ 25,230,494 $ 25,215,494 $ (15,000) -0.1%
Sales Tax $ 26,400,794 $ 27,192,818 $ 792,024 3.0•~
Motor Vehicle License Fees $ 17,201,233 $ 16,532,285 $ (668,948) -3.9%
Transient Occupancy Taxes $ 2,086,377 $ 2,128,105 $ 41,728 2.0%
Utility Users Taxes $ 3,240,633 $ 3,327,253 $ 86,620 2.7%
Development Revenue $ 1,134,868 $ 1,119,368 $ (15,500) -1.4%
Interfund Reimbursements $ 9,951,134 $ 9,584,215 $ (366,919) -3.7%
Transfers From Other Funds $ 12,506,012 $ 11,629,999 $ (876,013) -7.0%
Franchise Fees $ 7,533,386 $ 7,939,054 $ 405,668 5.4%
Charges for Services $ 5,714,800 $ 5,477,405 $ (237,395) -4.2%
Other Agency Revenue $ 1,217,395 $ 1,404,419 $ 187,024 15.4%
Other Local Taxes $ 2,062,816 $ 2,021,246 $ (41,570) -2.0%
Other Revenues $ 3,890,545 $ 832,685 $( 3,057,860) -78.6%
Use of Money and Property $ 2,234,999 $ 2,354,259 $ 119,260 5.3%
Fines, Forfeitures & Penalties $ 2,199,885 $ 1,910,445 $ (289,440} -13.2%
Police Grants $ 1,285,490 $ 1,285,490 $ - 0.0%
Licenses and Permits $ 688,090 $ 688,090 $ - 0.0%
Total General Fund $ 124,578,951 $ 120,642,630 $( 3,936,321) -3.2%
To follow is a brief summary of the major revenue changes:
• Based on recent reports from the City's sales tax consultant's it is projected that
sales tax revenues will increase moderately in the coming fiscal year, the
preliminary budget reflects an increase of $0.8M.
• Property tax revenues are expected to remain relatively flat in the coming year.
• Based on recent trends, franchise fee revenues are projected to increase by
$0.4M.
• The Other Revenues category reflects the elimination of the use of Economic
Contingency Reserves (-$3.OM). These Reserves were used to balance the fiscal
year 2011-12 budget.
• Program revenues in various departments continue to reflect lower trends; the
preliminary budget reflects a reduction in program revenues of (-$1.OM). These
reductions are reflected in various revenue categories.
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• State takeaway of motor vehicle license fee revenue resulted in a decrease of (-
$0.7M).
• Added funding for mid-year addition of grant funded position (Evidence Control
Assistant) $0.2M
• Other miscellaneous changes resulting in a net increase $0.1M
Section B -Summary of General Fund Expenditures
The General Fund expenditures for the preliminary budget for fiscal year 2012-13
reflects a decrease of $0.9 million when compared to the adopted budget for fiscal year
2011-12. This reflects a 0.8% decrease in expenditures. The table below reflects
expenditures at the category level.
General Fund Expenditures
Personnel Services $ 96,305,787 $ 99,767,306 $ 3,461,519 3.6%
Supplies & Services $ 12,903,552 $ 12,342,956 $ (560,596) -4.3%
Utilities $ 5,064,075 $ 5,105,390 $ 41,315 0.8%
Other Expenses $ 448,070 $ 468,070 $ 20,000 4.5%
Operating Capital $ 358,500 $ 158,500 $ (200,000) -55.8%
Transfers Out $ 9,428,968 $ 5,799,474 $(3,629,494) -38.5%
CIP $ 70,000 $ - $ (70,000) -100.0%
Total $ 124,578,952 $ 123,641,696 $ (937,256) -0.8%
To follow is a brief summary of the major expenditure changes:
• The Personnel Services expense category reflects an increase of $3.5M, included
in this increase are the following changes:
o No salary savings assumed in baseline $0.4M
o MOU salary Increases for Public Safety $1.4M
o Health Care Cost Increase $1.1M
o Eliminated CVEA furlough $0.4M
o Added grant funded Evidence Control Assistant and hourly support
$0.2M (no net cost to the General Fund)
• The Supplies and Services expense category reflects a decrease of $0.6M,
included in this decrease are the following changes:
o Reduced elections budget (-$0.6M)
o Reduced unemployment insurance based on current year trends (-$0.5M)
o Eliminated supplies and services savings $0.4M
o Other miscellaneous changes totaling in an increase of $0.1M
• The Transfers Out expense category reflects a decrease of $3.6M, included in
this decrease are the following changes:
o Final payment of Pension Obligation Bonds (-$2.8M) made in fiscal year
2011-12
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o Increased General Fund support of Police Grant positions $0.2M
o Reduced transfers out to other funds which reflect savings related to
debt service payment savings and savings in the Public Liability Expense
Fund (-$1.OM)
• The reductions in the Capital Improvement Project (CIP) and Operating Capital
expense categories reflect the elimination of one-time expenditures included in
fiscal year 2011-12.
Together the changes in revenues and expenditures resulted in a projected deficit of
$3.0 million for fiscal year 2012-13.
Summary of the Fiscal Year 2012-13 Updated Budget
As noted in the previous section, at the January 2012 Council Workshop, staff presented
the preliminary budget for fiscal year 2012-13 that reflected a projected deficit of $3.0
million. The preliminary budget was substantively the same as the fiscal year 2011-12.
The January presentation also noted that staff would continue to update the revenue
and expenditures projections following the completion of the Second Quarter Financial
Review and departmental review of budget line item detail. The following table reflects
revenue and expenditure changes recommended by departments that have been
subsequently incorporated into the preliminary budget that was presented to Council in
January.
Summary of Recommended General Fund Changes
~-.. .- ~
January 1 baseline $ 120,642,630 $ 123,641,696 $ (2,999,066)
Changes to baseline budget:
Reinstate 2.0 Peace Officers Police $ - $ 230,392 $ (230,392)
Add Economic Development Study Admin $ 30,000 $ 75,000 $ (45,000)
Add Fire Brush Management (grant match} Fire $ - $ 133,000 $ (133,000)
Add SBCS -Domestic Violence Response Team Police $ - $ 50,000 $ (50,000)
Reclassifications: HR/ITS, Finance, Admin, Library,
Police Various $ - $ 71,998 $ (71,998}
Continue Center for Employment Opportunities
(CEO) contract Public Works $ - $ 50,000 $ (50,000)
Transfers to/from other funds: Admin, Police, Dev
Services Various $ 82,839 $ 92,344 $ (9,505)
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APRIL 17, 2012, Item
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No Net Changes:
Jail Medical Services Contract (reso 2012-038) Police $ 74,000 $ 74,000 $ -
Recreation Changes (reso 2011-240) Recreation $ 441,900 $ 441,900 $ -
Added Hourly RCFL Network Engineer (reso 2011-
182) Police $ 84,051 $ 84,051 $ -
Add Fire Inspector/Investigator I +1.0 Fire $ 93,447 $ 93,447 $ -
Non Departmental revenue adjustment Non Dept $ 83,739 $ - $ 83,739
Miscellaneous department baseline adjustments Various $ 137,671 $ 142,482 $ (4,811)
Total Adjustments Operating Budget $ 1,027,647 $ 1,538,614 $ {510,967)
Update General Fund Operating Budget
Capital Improvement Project -Bonita/Long Canyon $
$ 121,670,277 $
- $ 125,180,310
514,000 $
$ (3,510,033)
(514,000)
Total General Fund $ 121,670,277 $ 125,694,310 $ (4,024,033)
Notes:
1. The Fire Department has received a grant of $400,000 for brush management. The requested
appropriation from the General Fund reflects the required grant match amount.
2. The Center for Employment Opportunities currently supports Public Works maintenance crews
with individuals paroled from our local prison system that are striving to re-enter the
workforce. This "non-profit" organization provides a supervised, 6 to 8 person work crew,
working full time, for less than the cost of cost of adding a single full time position.
3. During fiscal year 2011-12, City Council approved an appropriation for the environmental and
biological work for the Bonita/Long Canyon project. The fiscal impact identified the need to
appropriate additional funding of $514,000 in fiscal year 2012-13. As with the appropriation in
the current year, it is likely that the funding for this CIP will impact General Fund Reserves.
As noted on the table above, the preliminary budget for fiscal year 2012-13 operating
budget has been adjusted to reflect an additional $1.0 million in revenues and $1.5
million in operating expenditures. The table above also reflects the addition of $0.5
million to the Capital Improvement Program budget. In March 2012, Council approved
an appropriation to the Bonita/Long Canyon capital improvement project, the funding
included above is for the remaining environmental and improvement costs. It is
anticipated that funding for this project will come from General Fund reserves.
The changes to the operating budget result in the projected deficit growing from $3.0
million to $3.5 million (excludes CIP). The table above also reflects a number of
department requested adjustments following their review of the preliminary budget.
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APRIL 17, 2012, Item
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Summary of the Budget Balancing Measures
The City of Chula Vista continues to experience the impacts of the economic recession.
The fiscal year 2012-13 budget represents the seventh consecutive budget where the
City has had to make cut backs in order to keep expenditures in line with declining
revenues. The General Fund major discretionary revenues (Property Tax, Sales Tax,
Motor Vehicle License Fees, Franchise Fees, and Utility Taxes) have declined from a high
of $94.5M in fiscal year 2007-08 to an anticipated $76.9M in fiscal year 2012-13. During
this period of austerity, citywide staffing has been reduced by 339 FTE, a 27% decrease
in staffing levelsl. While the projected shortfall for FY2012-13 is moderate in comparison
to recent years, the deficit is difficult to close without impacting already strained
departments. Staff is still working to develop a balanced budget but is seeking Council
direction on the budget balancing measures developed to date. The following measures
were developed with the goal of mitigating additional service impacts, avoiding layoffs of
permanent staff, and using one-time solutions minimally. The following table
summarizes the proposed budget balancing measures.
Summary of Proposed Budget Balancing Measures
Projected Deficit forOperating Budget
$ (3,510,033)
Add Reimbursement Revenue for Basic Life Support $ 610,000
Reduce Transfers Out to Other Funds $ 502,700
Reinstate Salary Savings for Normal Attrition $ 500,000
Reduce Supplies and Services budgets $ 363,000
Reduce Library Department Funding $ 293,000
PFDIF Staff time reimbursement $ 220,000
Subtotal budget balancing measures $ 2,488,700
Remaining Deficit for Operating Budget
$ (1,021,333)
To follow is a brief summary of the proposed budget balancing measures.
Add Reimbursement Revenue for BLS $610,000
During fiscal year 2011-12, the agreement with AMR for ambulance services was
updated and included reimbursement for City costs to provide basic life support (BLS)
services. A portion of this revenue has been added to the updated budget to fund the
cost of miscellaneous BLS equipment. Staff is recommending using the remaining
$610,000 in FY2012-13 to lower the net cost of the Fire Department.
1 The change in citywide staffing reflects the difference between the fiscal year 2006-07 adopted budget,
which reflects the peak in staffing, and the adopted budget for fiscal year 2011-12.
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APRIL 17, 2012, Item ~ ~i
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Reduce Transfers Out to Other Funds $502,700
Based on current year revenues and expenditure projections in the Public Liability Trust
Fund, CEC Loan Repayment Fund, and Residential Construction Fund, these funds are
expected to end the current year with sufficient fund balance such that a reduction in
the transfer out from the General Fund to these funds is recommended. This
recommendation is a one-time solution to help close the deficit projected in the fiscal
year 2012-13.
Reinstate Salary Savings for Normal Attrition $500,000
The preliminary budget for fiscal year 2012-13 does not include any salary savings. Staff
is proposing adding salary savings of $500,000 to reflect anticipated salary savings
resulting from normal attrition. Hiring may be delayed throughout the year based on
the actual vacancies that occur. The addition of salary savings will not impact hiring of
sworn positions in the Police and Fire departments. The $500,000 of salary savings
represents less than 1% of budgeted Salary, Flex, PERS, and Medicare costs.
Reduce Supplies and Services budgets $363,000
The fiscal year 2012-13 preliminary budget reflected an increase of $363,000 in Supplies
and Services to help mitigate some of .the reductions made in the current year.
However, given the limited options to close the deficit staff recommends continuing the
Supplies and Services savings allocated to each department as part of balancing the fiscal
year 2011-12 budget.
Reduce Library Funding $293,000
The Library department has prepared a revised budget that reduces the department's
net cost by approximately $293,000. These reductions will be accomplished through an
increase in new revenues, including the use of grant revenues, and expenditure
reductions. These reductions will not impact the hours of operation for the Library
branches.
PFDIF Staff time reimbursement $220,000
Staff recommends reimbursing the General Fund for staff time that has not been
reimbursed from the PFDIF due to lack of funding. Based on current revenue and
expenditure projections for the PFDIF fund it is not anticipated that this action will
negatively impact the funds ability to meet its debt service obligations.
Revenues
At the City Council goal setting workshop, City Council identified the need to:
1. Maintain and increase existing revenues
2. Raise new revenues
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APRIL 17, 2012, Item
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Staff is evaluating several options for increasing existing revenue sources. The Phase III
of the Master Fee Schedule update is currently underway and is expected to be brought
forward for Council consideration in early summer. Phase III of the Master Fee Schedule
update includes updating Recreation program fees, Animal Care Facility fees, Library
fees, Human Resources testing fees, and Public Safety Fees. In addition Staff is reviewing
other revenue options for future Council consideration.
As noted earlier in this report the updated fiscal year 2012-13 deficit for the General
Fund operating budget totals $3.5 million. The proposed budget balancing measures
identified to date total $2.5 million, leaving a remaining deficit of approximately $1.0
million. Staff is continuing to work with the departments to identify other budget
balancing measures, which will include pursuing revenue enhancement options. At this
time, staff is requesting Council feedback on the fiscal year 2012-13 budget and budget
balancing measures. Based upon Council and community feedback, staff will update the
fiscal year 2012-13 budget and present a balanced General Fund budget at the May 25tH
Council Workshop.
Summary of Staffing Changes
The Summary of General Fund Changes table includes a number of staffing changes.
The proposed changes include new positions, reclassifications, and inter-fund transfers
of existing positions.
New Positions -The updated fiscal year 2012-13 budget reflects three new positions.
The Police Department is requesting the reinstatement of 2.0 Peace Officer positions.
This will allow the Police Department to reinstate the Advance Hire program, which will
better position the department to address retirements expected to occur in fiscal year
2013-14. The updated fiscal year 2012-13 budget also includes the addition of a revenue
offset position to the Fire Department. The proposed Fire Inspector/Investigator I will
perform all General Use Certificate inspections and manage the Fire Company inspection
program. The addition of these position results in a net impact of approximately
$230,000 to the General Fund.
Fiscal Year 2012-13 New Positions
Reclassifications -During the development of the budget, departments worked with the
Human Resources Department to review positions that are working out of class due to
changing job duties resulting from the various budget reductions and reorganizations
that have occurred over the last several years. Departments worked with Human
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APRIL 17, 2012, Item ~
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Resources to determine the appropriate classification and compensation for these
reclassification requests. The proposed staffing changes are recommended based on
changes to workload and scope of responsibility. As noted earlier, citywide staffing has
been reduced by 339 FTE which is a decrease of 27% decrease in staffing levels. As
positions have been eliminated there has been some amount in shift in duties as critical
tasks have been reassigned to lower level staff. Through the various budget reduction
processes, there have been a limited number of recommended reclassifications in order
to keep compensation in line with newly assigned duties. The savings resulting from the
positions eliminated over the last several years far exceed the cost of the
reclassifications.
In order to comply with Civil Service rules and provide fair compensation, the budget for
fiscal year 2012-13 includes a number of reclassifications. In total, the proposed
reclassifications are estimated to result in an additional cost of approximately $72,000.
These reclassifications are summarized on the following table.
Fiscal Year 2012-13 Summary of Reclassifications
Administrative Public Information CVEA to Confidential -
Administration Technician Specialist no change in salary
Information Information Middle Manager to
Information Technology Support gy g z
Technolo Mana er Senior Manager
Manager
Technology Information Senior Information Professional - no
Services Technology Support Technology Support change in bargaining
Specialist Specialist unit
Professional
Human Resources Senior Human Confidential - no
Human Resources Analyst Resources Analyst change in bargaining
unit
Accounting
Collections Supervisor CVEA to Middle
Technician Manager
Finance
CVEA - no change in
Accounting Assistant Accounting Technician
bargaining unit
CVEA-title change
Evidence Control Automated Finger only, no change in
Police Assistant Print ID Technician salary or bargaining
unit
Administrative Administrative Analyst CVEA - no change in
Library Secretary II bargaining unit
z Staff is recommending updating the salary plan to reflect a new salary and bargaining unit for the
Information Technology Manager classification.
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APRIL 17, 2012, Item
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Position Transfers - As part of the review of the preliminary budget for fiscal year 2012-
13, several departments requested the transfer of positions between General Fund
Departments and between funds. As noted on the Summary of General Fund Changes
table these transfers result in a net impact to the General Fund of approximately $9,500.
Fiscal Year 2012-13 Summary of Position Transfers
~ i ~ • • ~ • •
Development Services (GF) Development Services Fund Development Services Counter
Manager
Development Services (G F) Development Services Fund Senior Secretary
Development Services (GF) Administration Senior Administrative Secretary
Successor Agency Development Services (GF) Senior Administrative Secretary
Successor Agency Development Services (GF) Assistant Director of
Redevelopment and Housing
Police Grants Fund Police Police Agent
The following table summarizes the proposed staffing for the General Fund in fiscal year
2012-13.
~- • •
Fiscal Year 2011-12 Council Adopted Budget
777.25
Added grant funded Evidence Control Assistant mid-year 1.0
Proposed New Positions 3.0
Reclassifications -
Inter-fund transfers 1.0
Proposed General Fund Staffing for Fiscal Year 2012-13 782.25
Next Steps
As noted above, staff will continue to work to develop a balanced General Fund budget
for fiscal year 2012-13. One key component of the budget development process is
continuing public outreach.
Staff will implement a number of activities to continue to secure public input and
comment on the FY 2012-13 budget. Those activities include distributing notices about
the release of the draft budget and opportunities to provide comment, distributing e-
mail notices and updates, providing information at www.chulavistaca.ROV\Roto\budRet,
conducting media outreach, posting Facebook and Nixle notices, and making
presentations to local organizations. Comments can be provided at the public meeting,
online, via a-mail at communications@chulavistaca.gov, mail, fax (619)409-5448, or by
APRIL 17, 2012, Item ~,
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phone at (619) 407-3556. All comments will be compiled and provided to the Council in
advance of the final review and approval of the 2012-2013 budget.
In addition there will be a Budget Public Meeting/Open House, the date and time for the
meeting is listed below:
Monday, May 14
6:00 to 7:30 p.m.
Location to be determined
Staff will provide an overview of the budget, answer questions, and take comments
from the public.
Below is a summary of the next steps that staff will take towards developing the City
Manager's Proposed Budget for fiscal year 2012-13.
April 17 Present Draft City Manager Proposed Budget to Council
• Council feedback on Draft budget
• Report on Revenue Workshops to Council
April Prepare final budget balancing measures
• Finalize All Fund Budgets (including CIP)
May Develop Proposed FY2012-13 Budget Document (All Funds)
May 14 Budget Public Meeting/Open House
May 24 Present Fiscal Year 2012-13 All Funds Budget and CIP Overview
• City Manager Proposed Budget document submitted to Council in
compliance with City Charter
June Public Hearing and Recommend Council adoption of Proposed FY 2012-
13 Budget (All Funds)
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it
is not site specific and consequently the 500 foot rule found in California Code of
Regulations section 18704.2(a)(1) is not applicable to this decision.
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CURRENT YEAR FISCAL IMPACT
There is no fiscal impact resulting from accepting this report. The City Manager's Fiscal
Year 2012-13 Proposed Budget will be presented at the May 25th Council Workshop and
will be considered for Council adoption in June.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact resulting from accepting this report.
ATTACHMENTS -None
Prepared by: Angelica Aguilar, Budget and Analysis Manager, Finance Department
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:~--~~ r~
• Overview of Implemented Budget Balancing
Measures
• Review Fiscal Year 2012-13 Preliminary Budget
• Updated Fiscal Year 2012-13 budget and
overview of budget balancing measures
• Revenue Enhancement Overview
• Next Steps and Community Outreach
1
• Chula Vista Fiscal Health Plan (Council Supported
/~Januar~ 2009)- Implemented four pronged approach
/ to stabilize City finances
Fiscal Recovery and Progress Plan -incorporates the
Fiscal Health Plan and highlights major issues that
r impact City's financial stability
• Long Term Financial Plan -Provide additional analysis
and long-term strategies to address major issues. The
goal is to achieve financial resiliency in order to secure
services to our community
2
• City has implemented difficult budget reductions to
align expenditures to decreasing revenues
• Reduced Executive and Management positions
• Creation of second tier retirement benefits for new
hires
• By July 2012 all employees pay 100% of their share of
pension costs
• Employee groups agreed to eliminate or defer
scheduled cost of living increases
• Elimination of retiree health care subsidy for new hires
• General Fund reserves have increased slightly over the
past three years, moving above 8%
• Maintained a favorable bond rating during severe
economic downturn
• Issued final payment related to 1996 Pension
Obligation Bonds
• Repaired all corrugated metal pipe identified as
needing immediate attention in 2005 Baseline
Condition Study
3
Allocation Basis for Budget Reductions
Police &
Fire
• • : • : •
. .
Service Cuts
Library $ (5,454,000) $(1,577,000) $ (7,031,000) -67% -86% -71%
Recreation/Nature Center $ (4,053,000) $ (914,000) $ (4,967,000) ~&6% -73% -67%
Legislative/Admin $ (4,825,000) $(2,014,000) $ (6,839,000) -28% -46% -32%
Dev/Maintenance $(13,142,000) $(1,921,000) $(15,063,000) -29% -17% -27%
Police $ (3,358,000) $ (815,000) $ (4,173,000) -7% -21 % -8%
Fire(ExoludingDispatch) $ (495,000) $ (604,000) $ (1,099,000) -2% -35% -5%
Service Transfers
Fire Dispatch*' $ (1,122,000) $ 423,000 $ (699,000) -100% 1143% -60%
Total $(32,449,000) $(7,422,000) $(39,871,000) -22% -30% -24%
COLA and pension costs
eliminated or deferred $(11,235,000) $ - $(11,235,000)
Total Cuts $ (43,684,000) $ (7,422,000) $ (51,106,000) -22 % -30 % -24
'Includes General Fund budget and other funds where the City directly budgets personnel
e~enditures (Development Services, Wastewater, Environmental Services, Transit, Fleet,
ARRA and Police Grant Funds).
"Fire Dispatch services now pr ovided via contract with City of San Diego, with no reduction
in service levels.
• • ~ •
Service Cuts ....
Library 70.75 21.00 (49.75) -70.3%
Recreation! Nature Center 43.25 17.00 (26.25) -60.7%
Dev/ Maintenance 472.75 308.75 (164.00) -34.7%
LegislativelAdmin 144.50 100.50 (44.00) -30.4%
Police 381.50 343.50 (38.00) -10.0%
Fire (Excluding Dispatch) 140.00 134.00 (6.00) -4.3%
Service Transfers
Fire Dispatch 11.00 - (11.00) -100%
Total 1,263.75 924.75 (339.00) -26.8%
Notes:
1. Fire Dispatch services now pro vided via contract with Ciry of San Diego, with no reduction in service levels.
2. Total reductions reflect only permanent positions -chart does not reflect reductions to hourly staffing.
~ i • ~ i
• •
Senior Managers tt. r ~
47.00
27.00
(20.00)
-42.6%
Executives 24.00 14.00 (10.00) -41.7%
Chula Vista Employees Assoc. 609.25 374.25 (235.00) -38.6%
Mid ManagerslProfessionals 141.50 89.00 (52.5D) -37.1%
Western Council of Engineers 37.00 26.00 (11.00) -29.7%
Confidential 24.00 19.50 (4.50) -18.8%
Police Officers Association 247.00 225.00 (22.00) -8.9%
Mayor & Council 5.00 5.00
International Association of Fire
Fighters 112.D0 124.00 12.00 10.7%
Subtotal (less CBAG) 1,246.75 903.75 (343.00) -27.5%
CBAG 17.00 21.00 4.00 23.5%
Total 1,263.75 924.75 (339.00) -26.8%
Notes: I. /Af~7%reflects /3.Oporitions transferred from other bargaining groups. 2. 7ota1 reductions reflect only
permanent positions -chart does not reflect reductions to hourly staffing.
5
• Developed Fiscal Recovery and Progress Plan
• Operating under "new normal" model of service
delivery through implementation of:
- Continuous Improvement Program coon cH
-Customer Service Improvement program
- Contracted Services (currently contract for over 50
City services)
- Public/Private partnerships
- Public/Public partnerships
6
• Due to continued fiscal constraints and the
increasing cost of service, the FY 2013 budget is
substantively the same budget as the FY 2012
Council adopted budget
1
. .
•
General Fund Budget as of January 2012
Revenues $ 124,578,952 $ 120,642,630 $ (3,936,322)
Expenditures $ 124,578,952 $ 123,641,696 $ (937,256)
Surplus/Deficit $ - $ (2,999,066) $ (2,999,066)
7
• Summary of Revenue Changes from FY2011-12 budget:
- Increased sales tax revenues (+$0.8 M)
- Increased Franchise Fee revenues (+$0.4M)
- Added funding for grant funded position approved
mid year in the Police Department (+$0.2M)
- Eliminated use of Economic Contingency Reserves
(-$3.OM)
- Reduced program revenues (-$1.OM)
- Reduced MVLF revenues due to State takeaway
(-$0.7M)
• Summary of Expenditure Changes from FY2011-12
budget:
- Final payment of Pension Obligation Bonds (-$2.8M)
made in FY12
- Reduced transfers out to other funds (-$1.OM)
- Reduced Supplies and Services by (-$0.6M)
• Reduced elections budget and unemployment insurance
• Eliminated supplies and services savings
- MOU salary Increases for Public Safety (+$1.4M)
- Health Care Cost Increase (+$1.1M)
- Eliminated salary savings from baseline (+$0.4M)
8
..
•
January 1 baseline ~ ~ $ 120,642,630 $
123,641,696 $ (2,999,066_)
Changes to baseline budget~______ __.__e__~__ ~.___.__ .
Reinstate 2 0 Peace Officers Police $ _ $ 230 392 $ (230,392)
Add Economic Development Study Admin $ 30,000 ! $ 75,000 $ (45,000)
Add Fire Brush Management ~ Fire $ __ _ _ ~ ~ $ _ _ 133,000 ~$ _ (133,000)
Add SBCS -Domestic Violence
Response Team Police $ - ~ $ _ 50,0_00 $ (50,000)
___
Reclassifications: HR/ITS, Finance, _______
Admin, Library, Police __._.____.__.__ Various_ __ $___ ______-_ _ $ __ ___._.71,998 $ __(7_1,998)
Continue Centerfor Employment
Opportunities (CEO) contract Public Works $ - ~ $ 50,000 $ (50,000)
Transfers to/from other funds: ',
Admin, Police, DevServices .Various. $ 82,839 $ 92,344 $ (9,505)
No Net Changes:
Jail Medical Services Contract
(reso 2012-038) Police $ 74,000 $ 74,000 $ -
Recreation Changes (reso 2011-
240) Recreation. $ 441,900 $ 441,900' $ -
Added Hourly RCFL Network
Engineer (reso 2011-182) Police $ 84,051 $ 84,051 $
Add Fire Inspector/Investigator I ,Fire. $ 93,447 $ 93,447 $ -
Non Departmental revenue
adjustment Non Dept $ 83,739 $ - $ 83,739
Miscellaneous department
baseline adjustments Various $ 137,671 $ 142,482 $ (4,811)
Adjustments Operating Budget ' $ 1,027,647 $ 1,538,614. $ (510,967)
.- ~
January l baseline _._.._._..__._._.._._.___._._._..__._._.__.____.__. _$_.._120,642,630,..,,.,$.._.123,641,696_x, $_ (2,999,066)
i
Adjustments Operating Budget ~ $ 1,027,647 '', $ 1,538,614 ~ $ (510,967)
Updated General Fund Operating Budget $ 121,670,277 $ 125,180,310 I $ (3,510,033)
.. •.-
Bonita/LongCanyon (reso 2012-041) $ - $ 514,000 $ (514,000)
General Fund Reserves $ 514,000 $ - $ 514,000
1~
City Council $ 1,266,619 $ 1,334,467 $ 67,848 5.4%
Boards and Commissions $ 40,076 $ 40,370 $ 294 0.7%
City Clerk $ 1,407,780 $ 845,022 $ (562,758) -40.0%
City Attorney $ 2,255,035 $ 2,316,417 $ 61,382 2.7%
Administration $ 1,731,761 $ 1,924,989 $ 193,228 11.2%
Info Tech Services $ 2,869,481 $ 2,929,503 $ 60,022 2.1%
Human Resources $ 2,083,634 $ 2,146,323 $ 62,689 3.0%
Finance $ 3,193,464 $ 3,270,049 $ 76,585 2.4%
Non-Departmental (less CIP) $ 11,740,892 $ 7,541,779 $ (4,199,113} -35.8%
Animal Care Facility $ 2,137,321 $ 2,203,682 $ 66,361 3.1%
DevServices(GF) $ 2,737,685 $ 2,775,607 $ 37,922 1.4%
Police $ 41,621,625 $ 44,027,616 $ 2,405,991 5.8%
Fire $ 21,686,275 $ 23,020,194 $ 1,333,919 6.2%
Public Works $ 23,442,322 $ 23,943,722 $ 501,400 2.1%
Recreation $ 2,872,381 $ 3,466,372 $ 593,991 20.7%
Library $ 3,422,601 $ 3,394,200 $ (28,401) -0.8%
Total Operating (excludes CIP) $ 124,508,952 $ 125,180,310 $ 671,360 0.5%
_ ~
Updated -General Fund Operating Budget $_,121,670,277-~-$ 125,180,310 $_(3,510,033)
Add Reimbursement Revenues for Basic Life _ _
Support services _ __.._..-.-.........-._._..._......_._.___..__.__......._._._._.__. _$___..__.......610,000_!_$._.._._.~._..___....__-..____. _$_..____610,000
Reduce Transfers Out to Other Funds _____~~ $_...____._._.._.-._-_._.._._~i_$_._._.._._..~502,700)
i $ 502,700
Reinstate_SalarySovings for Normal Attrition $__ _ mm ~- ' $ (500,000 ' $ 500,000
Reduce Supplies and Servicesbudgets____ __ $ _ - ,_$__.,_._.(363,000) $____363,000
Reduce Library Department Net Cost $ 126 000 '; $ (167 000) $ 293,000
PFDIF StaffTime Reimbursements ; $ 220 000 ! $ $ 220,000
Total General Fund Operating Budget $ 122,626,277 ~ $ 123,647,610 ~ $ (1,021,333)
11
• Staff is working over the next few weeks to
close remaining $1.0 million projected deficit
• Focus is on:
-Solutions that minimize the impact to service
delivery
- Additional expenditure reductions
- New revenues
12
• At the City Council goal setting workshop, City
Council identified the need to:
- Maintain and increase existing revenues
- Raise new revenues
• Held Revenue Workshops in February
• Expand Enterprise Zone in Eastern Chula Vista
• Organize more major sports tournaments to
bring in visitors
• Charge "membership fee" for rec centers
• Charge fee for dog parks
• Increase park rental fees
• Improve variety of stores at Chula Vista malls
• Lower tolls on SR 125
• Begin charging businesses for false alarm calls
13
• Three pronged approach to economic
development strategy:
- Advance key projects including Bayfront, Millenia,
and University and Research Park
- Determine and recruit new industries to Chula Vista
- Increase revenues (capture local sales tax, business
to business)
14
15
• Bring new industries and new jobs to the City
by:
- Assist in the retention and expansion of existing
businesses
- Identify and recruit businesses and industries that
by their nature bring high paying jobs and revenues
and would thrive in Chula Vista
- Continue support of the City's Enterprise Zone
• Short-term measures include:
- Master Fee Schedule Update (Phase III)
• Recreation Program Fees
• Library Fees and Facility Rentals
• Human Resources Recruitment Fees
• Animal Care Facility Fees
• Public Safety Fees
- Staff continues to evaluate new and updated
funding sources
• Trash franchise adjustments
• Implementing programs that increase Sales Tax revenue
16
Buy your construction
materials at a t
china Vista
Dome Depot location! ~'
Boost funding for ti&raries, ~_
recreation, public sa fety & {
street repairs.
~, ~~ r
piU~lA ~l`A ~'`~ }~
1
17
• Implementing a number of activities to continue
to secure public input and comment on the FY
2012-13 budget, including:
- Distributing notices about the release of the draft
budget and opportunities to provide comment
- Providing information at
www.ch u lavistaca.~ov\~oto\b ud~et
- Posting updates on Facebook and Nixle
- Meeting with Economic Advisors
• Input can also be provided online, via a-mail at
communicationsC«)chulavistaca.gov, mail, fax
(619)409-5448, or by phone at (619) 407-3556
• Budget Public Meeting/Open House
- Monday, May 14
- 6:00 to 7:30 p.m.
- City Hall
18
• Through Council leadership and collaboration
among all departments City has persevered
through extreme financial challenges
• Continue path toward long-term financial
resiliency
Work toward closing remaining projected deficit
for fiscal year 2012-13 and present balanced
General Fund budget on May 24
April 17 Present Draft City Manager Proposed Budget to Council
• Council feedback on Draft budget
• Report on Revenue Workshops to Council
April Prepare final budget balancing measures
• Finalize All Fund Budgets (including CIP)
May Develop Proposed FY2012-13 Budget Document (All Funds)
May 14 Budget Public Meeting/Open House
May 24 Present Fiscal Year 2012-13 All Funds Budget and CIP
Overview
• City Manager Proposed Budget document submitted to
Council in compliance with City Charter
June Public Hearing and Recommend Council adoption of
Proposed FY 2012-13 Budget (All Funds}
19
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