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HomeMy WebLinkAbout2017/06/06 - Item 13City of Chula Vista Staff Report File#:17-0249, Item#: 13. PRESENTATION OF THE CITY MANAGER’S PROPOSED BUDGET FOR FISCAL YEAR 2017-18 WITH POTENTIAL OPTION TO PROVIDE ADDITIONAL FIRE ENGINE COMPANY PER CITY COUNCIL DIRECTION INCLUDING PROPOSED BUDGET REDUCTIONS FOR COUNCIL CONSIDERATION (This item was continued from 5/23/17.) OPTION A:RESOLUTION OF THE CITY COUNCIL/SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY/HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING THE CITY MANAGER’S PROPOSED OPERATING AND CAPITAL IMPROVEMENT BUDGETS AS AMENDED TO INCLUDE AN ADDITIONAL FIRE CREW AND BUDGET REDUCTIONS FOR FISCAL YEAR 2017-18 AS THEIR PROPOSED BUDGETS,RESPECTIVELY, AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING FOR FINAL CONSIDERATION AND ADOPTION OF SAME OPTION B:RESOLUTION OF THE CITY COUNCIL/SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY/HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING THE CITY MANAGER’S PROPOSED OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR FISCAL YEAR 2017-18 AS PRESENTED ON MAY 23,2017,AS THEIR PROPOSED BUDGETS,RESPECTIVELY,AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING FOR FINAL CONSIDERATION AND ADOPTION OF SAME,WITH DIRECTION THAT IF THE SAFER GRANT IS NOT APPROVED THE CITY MANAGER WILL RETURN MID-YEAR WITH THE ADDITIONAL FIRE CREW AND RESPECTIVE BUDGET AMENDMENTS AS WELL AS DIRECT THE CITY MANAGER TO UPDATE THE CITY COUNCIL ON A QUARTERLY BASIS THE FISCAL YEAR 2018-19 BUDGET FORECAST AND FUNDING OPTIONS AS WELL AS PROVIDE A LONG-TERM PLAN TO ADDRESS STAFFING SHORTFALLS IN PUBLIC SAFETY . RECOMMENDED ACTION Council/Successor Agency/Housing Authority hear the presentation,and,provide comments and proposed changes.If Council is prepared to approve the budget,with or without modifications,as the City Council Proposed Budget,the City Council/Successor Agency/Housing Authority may adopt the resolution and set the time and place for a public hearing for final consideration and adoption of the budget. SUMMARY In compliance with the City Charter,on May 18,2017,the City Manager submitted a balanced Fiscal City of Chula Vista Printed on 6/2/2017Page 1 of 10 powered by Legistar™ File#:17-0249, Item#: 13. In compliance with the City Charter,on May 18,2017,the City Manager submitted a balanced Fiscal Year 2017-18 proposed budget to the City Council (See Attachment A).During the May 23,2017 City Council meeting,staff provided an overview of the City Manager’s Proposed Budget to the City Council and the general public.Based upon the comments and recommendations provided at the meeting by the International Association of Firefighters (IAFF)local chapter,the City Council directed staff to identify potential budget options to add fire personnel needed to establish a new engine company and budget reductions in order to maintain a balanced budget. Staff will present the draft budget revisions to the City Council.Staff recommends that the Council/Successor Agency/Housing Authority hear the presentation,provide comments,and proposed changes (if any).If Council chooses to adopt the resolution,the public hearing for the final consideration and adoption of the budget will be held on June 20, 2017. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA)and has determined that approval of the fiscal year 2017-18 City Manager proposed budget as the City Council proposed budget is not a “Project”as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment;therefore,pursuant to Section 15060(c)(3)of the State CEQA Guidelines the actions proposed are not subject to CEQA. Environmental Notice The activity is not a “Project”as defined under Section 15378 of the California Environmental Quality Act State Guidelines;therefore,pursuant to State Guidelines Section 15060(c)(3)no environmental review is required. Environmental Determination BOARD/COMMISSION RECOMMENDATION Not applicable. DISCUSSION Fire Engine Company The City Council directed the City Manager to identify potential budget revisions to add a fire engine company in the Eastern section of the City in the fiscal year 2017-18 budget. The request to add a 4-person crew to a fire station in the Eastern section of the City would add cost to the General Fund of approximately $2.1 million per year (12 additional Fire Personnel).For fiscal year 2017-18,the additional fire personnel cost is estimated at $0.5 million (due to an anticipated Fire Academy start date in January 2018)as well as an additional one-time General Fund costs for a Fire academy which is estimated at $0.6 million.The additional fiscal year 2017-18 General Fund impacts related to the new fire engine company totals $1.1 million and included in the amended City Manager proposed budget.This impact will grow to $2.1 million in fiscal year 2018-19 and will necessitate the City of Chula Vista Printed on 6/2/2017Page 2 of 10 powered by Legistar™ File#:17-0249, Item#: 13. proposed budget.This impact will grow to $2.1 million in fiscal year 2018-19 and will necessitate the identification of additional budget reductions in the next year’s budget. Staffing for Adequate Fire and Emergency Response (SAFER) Grant On May 23,2017,City Council also approved consent item 17-0079 in support of the SAFER grant application.If awarded,this grant would partially fund an additional twelve firefighters throughout the City.This staffing would allow four existing stations to increase from 3-person crews to 4-person crews.The additional fiscal year 2017-18 General Fund impacts related to the SAFER grant are $0.7 million (estimated staffing cost $0.2 million and academy cost of $0.5 million).Funding for this item was to be identified upon grant approval but due to the magnitude of the financial impacts when coupled with the additional engine company in the eastern section of the City,it is fiscally prudent to identify the anticipated needed General Fund reductions at this time.These identified reductions are not included in the amended City Manager’s proposed fiscal year 2017-18 budget. Potential Fiscal Year 2017-18 Budget Reductions Including the additional 24 fire personnel will add an estimated $3.1 million in costs to the General Fund in fiscal year 2018-19 and increases in future fiscal years as the grant funding declines. Recruitment for the additional 12 fire personnel for the new engine company would begin upon budget adoption.The estimated cost is $1.1 million in fiscal year 2017-18,with a January 2018 start date of the fire academy.This estimate assumes that the operation of the additional fire engine company will begin in May 2018.The following table summarizes the estimated General Fund impact for the addition of the new engine company. In order to maintain a balance budget,the following budget cuts are recommended with the goal of minimizing service level impacts to the community.We anticipate that there will be positions eliminated and 11 layoffs and impacts related to the following services: Phase I - Addition of Fire Engine ·Marketing and Communication ·Cultural Arts Program City of Chula Vista Printed on 6/2/2017Page 3 of 10 powered by Legistar™ File#:17-0249, Item#: 13. ·Economic Development ·Special Events ·Fire Administration ·Code Enforcement ·City Attorney Administration ·Contracting out custodial services Phase II - Acceptance of SAFER Grant ·Support Departments (IT, Finance and HR) ·City Manager Administrative Support ·Public Works Administration ·Mayor and Council Operating Budget Attachment A lists the projected costs for each phase and the specific positons proposed to be eliminated and estimated cost savings.Revisions for the fiscal year 2017-18 City Manager’s Proposed Budget has been identified to reflect the changes as part of the Phase I implementation. As shown in Attachment A,the anticipated Phase I fiscal year 2017-18 impact have a net increase in total appropriations to the General Fund of $78,795, but the General Fund remains balanced. There are no recommended changes to the Other Funds budget from previously proposed.The following table summarizes the total impact of the Phase I changes on the fiscal year 2017-18 proposed budget. Updated Fiscal Year 2017-18 Proposed Budget City of Chula Vista Printed on 6/2/2017Page 4 of 10 powered by Legistar™ File#:17-0249, Item#: 13. Attachment B,Recommended Expenditures by Department and category,summarizes the Fiscal Year 2017-18 City Manager’s Proposed Budget as revised.The Schedule of Revenues is also included as Attachment C. The table below summarizes the changes in Citywide staffing levels as part of the Phase I implementation.It is important to note that the total full-time equivalent (FTE)count only reflects that addition of the fire engine crew.Due to timing,the amended fiscal year 2017-18 proposed budget authorized position list cannot include the reduction in position count.While the amended proposed budget does reduce funding for the eliminated positions,staff will need to return to City Council mid- year to update the authorized position count to reflect these reductions.The amended Proposed Staffing by Department/Fund for fiscal year 2017-18 is included as Attachment D. Description FTE Citywide staffing as Proposed in May 18 Budget Document 993.75 General Fund - Addition of Fire Engine Company 12.00 Updated Proposed FY2018 Staffing 1,005.75 Successor Agency Update In the original proposed budget the property tax revenue projections included the repayment of $0.7 million from the Successor Agency to the City for an outstanding loan balance.The allocation of those Successor Agency revenues has recently been denied by the State Department of Finance. We will continue to seek collection of funds but it will require additional time.Staff will monitor the property tax revenues during fiscal year 2017-18 and return to Council with additional budgets adjustments if the property taxes revenues received are lower than budgeted revenues.This is informational only and not reflected in the fiscal impact section below. 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 Title 2,section City of Chula Vista Printed on 6/2/2017Page 5 of 10 powered by Legistar™ File#:17-0249, Item#: 13. specific and consequently,the 500-foot rule found in California Code of Regulations Title 2,section 18702.2(a)(11),is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal.Gov't Code §87100, et seq.). Staff is not independently aware,and has not been informed by any City Council/Successor Agency/Housing Authority member,of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals:Operational Excellence,Economic Vitality,Healthy Community,Strong and Secure Neighborhoods and a Connected Community.This action supports the Operational Excellence goal by communicating the City Manager’s proposed budget for fiscal year 2016-17 in an open and transparent manner.This transparency supports City Initiative 1.3.1.- “Foster public trust through an open and ethical government.” CURRENT YEAR FISCAL IMPACT: There is no fiscal impact in fiscal year 2016-17 as a result of this resolution. PROJECTED IMPACTS TO FY 2018-19 FORCASTED DEFICITS The City Manager proposed budget presented at the City Council meeting on May 23,2017,noted that the anticipated budgetary deficit for fiscal year 2018-19 General Fund budget was $6.4 million. The deficit is largely due to the continued increases in pension costs as presented to the City Council during the March 2,2017 Long-Term Financial Plan workshop and as discussed in information items included as Attachment E and Attachment F. With the addition of the additional fire engine crew and SAFER grant positons,the projected General Fund deficit for fiscal year 2018-19 has increased to $7.3 million and the net cost for public safety combined may increase to approximately 70%of the General Fund net cost.The recommended cuts,which are being taken to fund the additional fire personnel,would not be available to assist in balancing the following fiscal year making it more difficult to structurally balance the budget without significant service level impacts which can be viewed negatively by the rating agencies. For demonstration purposes,if the City were to have to cut $7.3 million from the General Fund and not allocate any cuts to the public safety departments,there would be significant impacts to all remaining services.As demonstrated below,the total net cost for all of Library and Recreation combined is $5.3 million (5%of General Fund Net Cost).This is largely due to the fact that the significant cuts taken during the Great Recession were never restored.Included below are the net City of Chula Vista Printed on 6/2/2017Page 6 of 10 powered by Legistar™ File#:17-0249, Item#: 13. significant cuts taken during the Great Recession were never restored.Included below are the net cost (Expenses -Program Revenues)by department updated to reflect Phase I and Phase II changes. Staff will continue to work with the various departments to find cost saving measures and identify new revenues in order to minimize the impacts to the community as we continue to work towards a structurally balanced fiscal year 2018-19 budget.The Long-Term Financial Plan which was presented to the City Council in March 2017,as well as the City Manager proposed budget,identify potential solutions which could assist in reducing the ongoing structural deficits.Staff will be City of Chula Vista Printed on 6/2/2017Page 7 of 10 powered by Legistar™ File#:17-0249, Item#: 13. updating the City Council periodically throughout the year on short and long range financial planning. PROJECTED IMPACTS TO THE LONG-TERM FINANCIAL PLAN The following tables summarize the projected impacts that Phase I and Phase II will have on the 10- year forecast. Long-Term Financial Plan (FY2018 to Y2022) City of Chula Vista Printed on 6/2/2017Page 8 of 10 powered by Legistar™ File#:17-0249, Item#: 13. ATTACHMENTS Attachment A: Detailed Listing of Proposed Budget Cuts - Phase I and II Attachment B: Expenditures by fund, department and category Attachment C: Revenues by fund, account and fiscal year Attachment D: Staffing by department, classification and fund Attachment E: Long-Term Financial Plan Report (as in May 23, 2017 Budget Document) Attachment F: CalPERS Circular Letter - Discount Rate Change (Council Info. Item) AttachmentG:Revised City Manager Proposed Budget Sections to include discussion regarding SAFER grant and the City of Chula Vista Printed on 6/2/2017Page 9 of 10 powered by Legistar™ File#:17-0249, Item#: 13. AttachmentG:Revised City Manager Proposed Budget Sections to include discussion regarding SAFER grant and the addition of 12 Fire Crew Personnel. Staff Contact: David Bilby, Finance Director City of Chula Vista Printed on 6/2/2017Page 10 of 10 powered by Legistar™ RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL/SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY/ HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING THE CITY MANAGER’S PROPOSED OPERATING AND CAPITAL IMPROVEMENT BUDGETS AS AMENDED TO INCLUDE AN ADDITIONAL FIRE ENGINE CREW AND BUDGET REDUCTIONS FOR FISCAL YEAR 2017-18 AS THEIR PROPOSED BUDGETS, RESPECTIVELY, AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING FOR FINAL CONSIDERATION AND ADOPTION OF SAME WHEREAS, the City Charter requires that the City Manager submit the proposed budget for the upcoming fiscal year to the City Council at least 35 days prior to the beginning of such fiscal year; and WHEREAS, the City Manager has prepared and provided the proposed operating and capital improvement budgets to the City Council, and has also prepared the proposed budgets for the Successor Agency to the Redevelopment Agency and the Housing Authority, and presented them to their respective governing bodies on May 23, 2017, for fiscal year 2017-2018; and WHEREAS, at the May 23, 2017 meeting, City Council requested potential options to provide additional fire engine company in the fiscal year 2017-2018 Proposed Budget; and WHEREAS, the City Manager has prepared and provided an amended operating and capital improvement budget option to the City Council adding a fire engine crew and respective budget reductions; and WHEREAS, the City Council, Successor Agency to the Redevelopment Agency and Housing Authority have received the City Manager’s budget report and the respective proposed budgets and have approved the budgets as their proposed budgets; and WHEREAS, a public hearing shall be held prior to adoption of the proposed budgets and the proposed budgets, and notice of the proposed hearing, shall be publi shed at least ten days prior to the public hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council/Successor Agency to the Redevelopment Agency/Housing Authority of the City of Chula Vista that the City Manager’s budget report for fiscal year 2017-18 is approved, and the City Manager’s proposed operating and capital improvement budgets for fiscal year 2017-18 are approved as their respective proposed budgets. BE IT FURTHER RESOLVED that a public hearing shall be held on the proposed budgets on June 20, 2017, and that the City Clerk is directed to publish the proposed budgets, in the form presented, for public inspection, and provide notice of the public hearing, at least ten days prior to the hearing date. Presented by Approved as to form by David Bilby Glen R. Googins Director of Finance/Treasurer City Attorney RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL/SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY/ HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING THE CITY MANAGER’S PROPOSED OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR FISCAL YEAR 2017-18 AS PRESENTED ON MAY 23, 2017, AS THEIR PROPOSED BUDGETS, RESPECTIVELY, AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING FOR FINAL CONSIDERATION AND ADOPTION OF SAME, WITH DIRECTION THAT IF THE SAFER GRANT IS NOT APPROVED THE CITY MANAGER WILL RETURN MID- YEAR WITH THE ADDITIONAL FIRE CREW AND RESPECTIVE BUDGET AMENDMENTS AS WELL AS DIRECT THE CITY MANAGER TO UPDATE THE CITY COUNCIL ON A QUARTERLY BASIS THE FISCAL YEAR 2018-19 BUDGET FORECAST AND FUNDING OPTIONS AS WELL AS PROVIDE A LONG TERM PLAN TO ADDRESS STAFFING SHORTFALLS IN PUBLIC SAFETY. WHEREAS, the City Charter requires that the City Manager submit the proposed budget for the upcoming fiscal year to the City Council at least 35 days prior to the beginning of such fiscal year; and WHEREAS, the City Manager has prepared and provided the proposed operating and capital improvement budgets to the City Council, and has also prepared the proposed budgets for the Successor Agency to the Redevelopment Agency and the Housing Authority, and presented them to their respective governing bodies, for fiscal year 2017-2018; and WHEREAS, the City Council, Successor Agency to the Redevelopment Agency and Housing Authority have received the City Manager’s budget report and the respective proposed budgets and have approved the budgets as their proposed budgets; and WHEREAS, a public hearing shall be held prior to adoption of the proposed budgets and the proposed budgets, and notice of the proposed hearing, shall be published at least ten days prior to the public hearing. WHEREAS, if the SAFER Grant is not approved for funding, the City Manager will return mid-year with budget amendments for City Council consideration to add the Fire Engine Crew, Whereas, the City Council directs the City Manager to update the City Council on a quarterly basis, the fiscal year 2018-19 budget forecast and balancing options as well as provide a long-term plan to address staffing shortfalls in public safety. NOW, THEREFORE, BE IT RESOLVED by the City Council/Successor Agency t o the Redevelopment Agency/Housing Authority of the City of Chula Vista that the City Manager’s budget report for fiscal year 2017-18 is approved, and the City Manager’s proposed operating and capital improvement budgets for fiscal year 2017-18 are approved as their respective proposed budgets. BE IT FURTHER RESOLVED that a public hearing shall be held on the proposed budgets on June 6, 2017, and that the City Clerk is directed to publish the proposed budgets, in the form presented, for public inspection, and provide notice of the public hearing, at least ten days prior to the hearing date. Presented by Approved as to form by David Bilby Glen R. Googins Director of Finance/Treasurer City Attorney DescriptionFY18 Revenues FY18 Expenditures FY18 Net ImpactAddition of Fire Engine Company in East Chula Vista‐$ 527,398$                (527,398)$               Academy ‐ Additional Engine in East Chula VistaFire Academy Personnel: Prep and Instruction‐$ 297,335$                (297,335)$               New Firefighter Uniforms and Equipment‐$ 151,200$                (151,200)$               Technical Rescue OT/Backfill‐$ 32,811$(32,811)$Miscellaneous Academy Costs‐$ 59,151$(59,151)$‐$ (116,853)$               116,853$                ‐$ (158,451)$               158,451$                (33,000)$ (102,899)$               69,899$‐$ (54,679)$54,679$‐$ (40,000)$40,000$‐$ (75,872)$75,872$‐$ (68,368)$68,368$‐$ (113,094)$               113,094$                ‐$ (128,713)$               128,713$                ‐$ (70,000)$70,000$‐$ (112,440)$               112,440$                ‐$ (165,132)$               165,132$                ‐$ (105,691)$               105,691$                111,795$                 ‐$111,795$                ‐$ 323,092$                (323,092)$               (1.00) Principal Management Analyst (1.00) Marketing and Communications Manager(1.00) Sr. Graphic DesignerEliminate Communications Supplies and ServicesEliminate Special Events Funding(1.00) Environmental Services Manager (Mid‐Year reduction)(1.00) Conservation Specialist II(1.00) Sr. Economic Development Specialist(1.00) Real Property ManagerReduce Economic Development Supplies and Services(1.00) Cultural Arts Program Manager(2.00) Code Enforcement Officer II(1.00) Law Office ManagerEconomic Development Reimbursement Revenue Cashouts related to reductionsPhase I General Fund Impact78,795$ 78,795$‐$Notes:(1) Funding for additional fire engine company is assumed as of 05/11/2018.(2) All staffing estimates do not include PERS ‐ Unfunded Liability or Workers Compnsations allocations.(3) Position savings, with the exception of the Environmental Services Manager, are calculated as of August 2017.(4) Savings associated with the Environmental Services Manager position are estimated as of January 2018.PHASE I ‐ Addition of Fire Engine (FY2018 Impact)ATTACHMENT A DescriptionFY18 Revenues FY18 Expenditures FY18 Net ImpactSAFER Grant Staffing113,855$                 237,227$                (123,372)$               Academy ‐ SAFER GrantFire Academy Personnel: Prep and Instruction‐$                          297,335$                (297,335)$               Fire Recruit Salary (12)  262,491$                 262,491$                ‐$                         New Firefighter Uniforms and Equipment‐$                          151,200$                (151,200)$               Technical Rescue OT/Backfill‐$                          32,811$                  (32,811)$                 Miscellaneous Academy Costs‐$                          59,151$                  (59,151)$                 (1.00) Accounts Payable Supervisor‐$                          (65,999)$                 65,999$                  (1.00) HR Analyst‐$                          (94,367)$                 94,367$                  Reduce Information Technology Services Supplies and Services‐$                          (4,624)$                   4,624$                     (1.00) Executive Secretary (Administration) (Mid‐Year reduction)‐$                          (51,886)$                 51,886$                  (1.00) Administrative Services Manager‐$                          (133,571)$               133,571$                Reduce Council Aide Budgets(0.50) Sr Council Assistant‐$                          (38,402)$                 38,402$                  (0.50) Sr Council Assistant‐$                          (38,402)$                 38,402$                  (0.50) Sr Council Assistant‐$                          (38,402)$                 38,402$                  (0.50) Sr Council Assistant‐$                          (38,402)$                 38,402$                  Reduction of City Council Administration(1.00) Constituent Services Representative‐$                          (63,960)$                 63,960$                  (1.00) Admin Secretary (Mayor, At Will)‐$                          (77,174)$                 77,174$                  Reduce City Council Supplies and Services budget‐$                          (18,680)$                 18,680$                  Phase II General Fund Impact376,346$                 376,346$                ‐$                         Notes:(1) Funding for additional SAFER Grant staffing is assumed as of 05/11/2018.(2) All staffing estimates do not include PERS ‐ Unfunded Liability or Workers Compnsations allocations.(3) Position savings, with the exception of the Executive Secretary, are calculated as of August 2017.(4) Savings associated with the Executive Secretary position are estimated as of January 2018.PHASE II ‐ Acceptance of SAFER Grant (FY2018 Impact)ATTACHMENT A PROPOSED EXPENDITURES BY DEPARTMENT / CATEGORYPERSONNEL SERVICESSUPPLIES & SERVICES UTILITIESOPERATINGCAPITALTRANSFERS OUTCIP PROJECTSDEPT / FUNDOTHER EXPENSESNON-CIP PROJECTSFiscal Year 2017-18TOTALFY 2017-181,501,7940105,8471,3073,19001100 City Council 0001,612,138009,1870002000 Boards and Commissions 0009,187721,6520219,350688003000 City Clerk 000941,6902,564,5660303,3001,8564,94804000 City Attorney 0002,874,6701,692,586034,1338323,41605000 Administration 0001,730,9672,322,33201,358,58011,90787,89006000 Information Technology Srvcs 0003,780,7092,353,6140413,6861,4579,27207000 Human Resources 0002,778,0293,573,8430201,7362,21215,49908000 Finance 0003,793,290632,892167,5001,799,0618,255009000 Non-Departmental 22,490,4790025,098,1872,472,4334,500477,66545,3476,28210000 Animal Care Facility 0003,006,2271,526,379098,4222,4971,52011000 Economic Development0001,628,8182,354,29212,000174,3632,37550012000 Planning and Building Services0002,543,5306,852,212108,500459,750867,08110,00013000 Engineering and Capital Projects389,700008,687,24349,988,573123,2432,767,798451,602014000 Police 00053,331,21625,979,59002,481,636201,327015000 Fire 62,3260028,724,87912,444,64619,5002,568,8652,838,8325,17116000 Public Works 0018,70017,895,7143,298,547206,796583,845328,0242,52317000 Recreation 0004,419,7353,309,240400202,879297,306018000 Library 0003,809,825123,589,191642,43914,260,1035,062,905150,21122,942,5050100 GENERAL FUND TOTAL18,700166,666,0540350,0001,555,49906,347,440201 2016Measure P Sales Tax Fund244,40052,062,653060,559,99200000221 Gas Tax 4,259,4281,618,00005,877,428025,000000225 Traffic Signal 0338,1660363,16600000227 Transp Sales Tax Fund 06,800,61206,800,612212,8240178,1770193,469234 Advanced Life Support Program 972,453001,556,923005,00000235 Legislative Counsel Fund 0005,0000163,500345,70013,0700241 Parking Meter 000522,2700038,50000245 Traffic Safety 399,14000437,640492,714075,00000251 Supp Law Enforcement Serv Fund21,51300589,2275,690,526241,940294,538065,000252 Police Dept Grants Fund 0006,292,00429,3502,00051,00000253 Inmate Welfare Fund 00082,35098,4150000254 Local Law Enforc blk Grant Pro00098,41500254,9520100,000256 Asset Seizure 000354,95201,20040000267 McCandliss memorial Cult Arts 0001,60045,00050,0005,00000269 Other Grants Fund 000100,000ATTACHMENT B PROPOSED EXPENDITURES BY DEPARTMENT / CATEGORYPERSONNEL SERVICESSUPPLIES & SERVICES UTILITIESOPERATINGCAPITALTRANSFERS OUTCIP PROJECTSDEPT / FUNDOTHER EXPENSESNON-CIP PROJECTSFiscal Year 2017-18TOTALFY 2017-18037,00028,00000270 Mobilehome Admin fee fund 00065,000300,73030,005153,34400272 Federal Grants Fund 000484,07900000273 State Grants Fund 0350,0000350,000022,333000274 Amer. Recovery & Reinvest. Act00022,33342,19763,275372,22900281 Waste Mgmt & Recycling 000477,701741,914218,351864,67810,35564,600282 Environmental Services 107,585002,007,483264,570528,454839,97802,593285 Energy Conserv Fund 0001,635,59500348,1008400301 Storm Drain Revenue 000348,940650,1311,010,000179,0001,1550313 CV Housing Authority Fund 254,697002,094,98300300,0000300,000316 Public Educational & Govt. Fee000600,0000629,0006,00000318 Redv Obligation Retirement Fnd2,563,000003,198,00004,615,9835,60006,000319 Housing - SA 0004,627,583046,0005,10000311 CDBG Housing Program Fund 00051,1000232,50006,40050,600321 Home Program Fund 000289,50002,00002,1309,870333 Comm Dev Block Grant Fund 762,200050,100826,3000819,170384,90800341 Public Liability Trust 0001,204,078043,17490,70816,9061,708342 CFD 11-M RHR McMillin 000152,496077,950160,986120,4476,164343 CFD 12-M Village 7 MM 000365,547047,785111,89373,2900344 CFD 13-M Otay Ranch Village 2 000232,968078,269239,029173,7756,214345 CFD 12M Village 7 Otay Ranch 000497,287011,000136,09911,0250346 CFD 14M- A - EUC Millenia 000158,124010,00044,0287,4750347 CFD 14M- B- EUC Millenia Parks00061,50305,000000348 CFD 18M Village 3 Otay Ranch0005,00005,00043,36411,2520349 CFD 19M Freeway Commercial 200059,61603,5565,8423,1020352 Bay Blvd Ldscpng Dist Fund 00012,500062,175180,91288,9670353 Eastlake Maintenance District 000332,054019,15538,31427,9720354 Open Space District #1 00085,4410010,7964,1210355 Open Space District #2 00014,91707,41933,40311,7800356 Open Space District #3 00052,602021,27148,22622,3700357 Open Space District #4 00091,867011,46321,78218,8000358 Open Space District #5 00052,04509,13513,49311,5500359 Open Space District #6 00034,17804,4388,0482,2500361 Open Space District #7 00014,736010,14644,40219,5100362 Open Space District #8 00074,058011,31838,21323,9280363 Open Space District #9 00073,459013,51239,51431,5370364 Open Space District #10 00084,563ATTACHMENT B PROPOSED EXPENDITURES BY DEPARTMENT / CATEGORYPERSONNEL SERVICESSUPPLIES & SERVICES UTILITIESOPERATINGCAPITALTRANSFERS OUTCIP PROJECTSDEPT / FUNDOTHER EXPENSESNON-CIP PROJECTSFiscal Year 2017-18TOTALFY 2017-18034,75474,93962,4500365 Open Space District #11 000172,143045,108152,756163,5960367 Open Space District #14 000361,4600019,4363,4690368 Open Space District #15 00022,90501,9666,88200369 Open Space District #17 Fund 0008,848035,44273,11069,2840371 Open Space District #18 Fund 000177,8360253,110849,907374,0830372 Open Space District #20 Fund 0001,477,100016,01823,64210,3060373 Open Space District #23 Fund 00049,9660017,25013,9000374 Open Space District #24 Fund 00031,150008,5953,0180375 Open Space District #26 00011,613050,06573,98054,2940376 Open Space District #31 Fund 000178,3390182,028360,082134,6288,635378 CFD 07M Improvement Areas 000685,3730233,903470,005302,91512,685379 CFD 08M Village 6 0001,019,5080180,619601,896210,08712,694380 CFD 09M OR Vlg II Brookfld She0001,005,2960130,588442,912209,0299,954382 CFD 99-2 Otay Ranch Vlg 1 West000792,483060,000542,50000386 Otay Ranch Preserve 000602,5000145,314548,068210,97011,537387 CFD 98-3 Sunbow 2 000915,8890364,0781,526,242480,34930,411388 Community Facility Dst 97-1 OR0002,401,0801,012,0794002,360,974131,0900391 Central Garage Fund 0003,504,54303,702,764826,35900398 Workers Compensation 0004,529,12300000406 Chula Vista Muni Golf Course132,58000132,5807,167,896195,000588,0955,65085,500408 Development Services Fund 1,796,648009,838,789005,280339,2630409 CV Elite Athlete Training Center000344,5430350,000000413 Trunk Sewer Capital Reserve 000350,0004,818,93475,00028,379,8103311,409,200414 Sewer Service Revenue 3,153,23430,000037,866,50900000428 Sewer Facility Replacement 150,0001,300,00001,450,000012,000000432 Poggi Cyn Sewer Basin DIF 00012,000070,000100,00000433 Salt Creek Sewer Basin DIF 200,00000370,0000762,200000442 CDBG Section 108 Loan 000762,20000000451 Long-term Advances DSF - City 1,385,000001,385,0000594,540000452 Equipment Lease 000594,5400638,400000453 Energy Conservation Loans 000638,40003,597,5006,00000475 2014 Refunding COP 0003,603,50002,926,2005,00000476 2015 Refunding COP 0002,931,2000283,0005,00000477 2016 COP000288,00002,144,0005,00000478 2016 LRRB COP Refinance0002,149,000002,50000507 Otay Vly Rd AD 90-2 Impvt Fund0002,500ATTACHMENT B PROPOSED EXPENDITURES BY DEPARTMENT / CATEGORYPERSONNEL SERVICESSUPPLIES & SERVICES UTILITIESOPERATINGCAPITALTRANSFERS OUTCIP PROJECTSDEPT / FUNDOTHER EXPENSESNON-CIP PROJECTSFiscal Year 2017-18TOTALFY 2017-1800000517 AD2004-1 Dixon Drive 31,6000031,60000000518 AD2005-1 Tobias Drive 35,1900035,190010,000000542 Tele Cyn Drainage Plan Dif Fun00010,0000250,00056,10000571 PFDIF General Administration 000306,10000000572 PFDIF - Civic Center Expansion3,175,192003,175,19200000573 Police Facilities Remodel 1,598,150001,598,15000000574 Corporation Yard Relocation 728,96600728,96600000576 Fire Suppression Sys Expansion1,035,000001,035,000030,000000587 Otay Ranch VLG Ped Ramp DIF 00030,000030,000000588 OR Vlg11 Pedestrian Bridge DIF00030,000050,000000718 EUC Millenia Ped Bridge DIF00050,0000450,00080000591 Transportation DIF 03,370,33303,821,133060,000000593 Western TDIF 00060,00000000661 05 ERAF - SA 1,848001,84800000662 06 ERAF - SA 1,861001,86101,173,0005,00000666 2016 TARBs0001,178,0000350,000000692 Long-term Advances DSF-RDA SA000350,000035,00050,00000715 Park Land Acquisition Fund 00085,000025,000000716 Western-Park Acquisition & Dev50,0000075,00000000717 Resident. Construct/Conver Fnd668,27800668,2780065,00000723 Bicycle Facilities Fund 00065,00000000736 Other Transportation Programs 08,002,20308,002,203GRAND TOTAL ALL FUNDS145,156,47129,728,91360,112,9788,555,6248,884,48546,670,46873,871,96768,800373,049,706ATTACHMENT B SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18100GENERAL FUNDProperty Taxes27,451,232 28,616,729 30,220,1803000 Property Tax31,174,82733,620,932TOTAL$27,451,232 $28,616,729 $30,220,180$33,620,932$31,174,827Other Local Taxes29,985,219 31,257,515 34,180,2563010 Sales Tax33,182,55250,087,4668,845,067 10,831,671 11,709,9773020 Franchise Fees11,795,95111,968,64617,525,294 6,364,691 5,844,2483030 Utility Taxes6,379,9645,860,3281,328,554 1,407,145 1,538,5953040 Business License Tax1,424,6431,424,6432,632,774 3,136,847 3,827,2443050 Transient Occupancy Tax3,654,7794,316,267949,603 1,013,526 1,253,4793070 Real Property Transfer Tax1,023,6611,173,550TOTAL$61,266,511 $54,011,395 $58,353,799$74,830,900$57,461,550Licenses and Permits150,879 134,042 124,9263100 Licenses132,600175,300267,938 251,375 293,4213120 Dev / Improvement Permits266,455266,455896,628 896,239 881,9163140 Regulatory Permits922,0301,068,877009803160 Other Permits014,000TOTAL$1,315,445 $1,281,656 $1,301,243$1,524,632$1,321,085Fines, Forfeitures, Penalties494,211 781,454 630,1343200 Community Appearance Penalties420,700470,42399,627 457,077 233,5793210 Law Enforcement Penalties232,000237,000279,084 273,220 269,4533240 Parking Penalties250,000250,000136,814 126,500 116,2913250 Other Penalties118,000118,000TOTAL$1,009,736 $1,638,251 $1,249,457$1,075,423$1,020,700Use of Money & Property356,840 317,745 212,4383300 Investment Earnings200,000200,0000 161,24003310 Sale of Real Property0058,043 78,501 48,2213320 Sale of Personal Property8,0008,00052,449 51,548 55,8753330 Rental/Lease of Equipment58,77258,772963,843 1,044,271 1,154,7003350 Rental/Lease of Land and Space1,091,3971,127,0181,091,740 1,178,734 1,408,6323370 Rental/Lease of Buildings1,373,4321,027,325TOTAL$2,522,915 $2,832,039 $2,879,866$2,421,115$2,731,601ATTACHMENT C SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18Revenue from Other Agencies567,615 597,219 676,9263400 State Grants568,826591,826226,938 225,986 223,1983440 State Tax Sharing228,246228,24616,773,957 17,884,321 18,934,6563460 Motor Vehicle License Fees19,692,43620,844,03951,2846,408 541,8583480 State Reimbursements7,2337,233486,626 458,484 578,0323500 Federal Grants544,603415,87516,804 37,177 61,1833580 Federal Reimbursements42,00042,0006,8455,5007,4653600 Other Agency Grants2,0002,0001,348,040 828,326 665,0003690 Other Agency Revenue664,000664,000TOTAL$19,478,109 $20,043,421 $21,688,318$22,795,219$21,749,344Charges for Services1,449,571 1,213,086 1,073,5573700 Zoning Fees875,5641,044,66487,522 136,164 357,8653720 Document Fees207,237327,2376,7903,6963013730 Plan Checking Fees00366,158 454,851 490,2133740 Inspection Fees334,580497,08000403750 Filing Fees009,88660003770 Other Dev Fees001,667,067 1,560,827 1,390,9593800 Animal Shelter Contracts1,310,9041,407,593957,682 973,964 986,6253830 Services to the Port District1,010,3041,010,304868,164 879,535 950,5763900 Recreation Program Fees947,5021,033,311403,218 427,894 401,7403950 Class Admission Fees443,941437,875164,768 246,068 207,5973970 Referral Fees188,000138,2771,684,748 1,739,327 1,663,0274200 Staff Services Reimbursements1,494,2502,064,714276,190 259,655 265,3104300 Fees for Other Services267,000294,200TOTAL$7,941,764 $7,895,667 $7,787,810$8,255,255$7,079,282Other Revenue426,705 150,459 203,4294410 DIF Reimbursements177,721163,975292,419 189,95104420 Transit Reimbursements004,4685,3975,5604430 Redev Agency Reimbursements1,8001,8001,884,161 2,055,227 1,972,6964440 Open Space/Assess Dist Reimb2,084,0872,011,7034,273,692 4,758,399 4,434,1474450 CIP Reimbursements4,544,0094,475,271443,524 62,970 94,4784460 CDBG/Home Reimbursements60,10060,1002,874,051 4,290,278 3,731,9344480 Other City Funds Reimbursement2,923,8293,189,16100 36,9394600 Assessments30,00030,000ATTACHMENT C SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-1861,864 74,928 68,9964700 Collection Charges80,00080,0004,6433,7811,7084800 Sale of Goods2,6502,6501,010,207 1,798,691 1,816,9084900 Other Revenue2,081,574921,415TOTAL$11,275,734 $13,390,081 $12,366,795$10,936,075$11,985,770Transfers In10,097,493 10,550,802 9,837,9575000 Transfers In11,937,17111,206,503TOTAL$10,097,493 $10,550,802 $9,837,957$11,206,503$11,937,171$142,358,939 $140,260,041 $145,685,425$166,666,054TOTAL - 100 GENERAL FUND$146,461,3302012016 MEASURE P SALES TAX FUND0004900 Other Revenue044,239,9920005000 Transfers In016,320,000$0$0$0$60,559,992TOTAL - 201 2016 MEASURE P SALES TAX FUND$0220TRANSPORTATION FUNDS898,172 11,489,633 2,535,4643010 Sales Tax8,239,1316,087,00076,338 59,901 131,4303300 Investment Earnings004,319,400003400 State Grants007,890,623 6,483,721 5,632,3593440 State Tax Sharing5,258,5825,537,543294,165 358,787 990,4503600 Other Agency Grants47,9690207,016 279,738 184,4013770 Other Dev Fees200,000200,0001,7781,45504440 Open Space/Assess Dist Reimb0024,085 126,42604450 CIP Reimbursements00330,081 384,446 114,1824480 Other City Funds Reimbursement0019,999 29,81405000 Transfers In00$14,061,657 $19,213,921 $9,588,286$11,824,543TOTAL - 220 TRANSPORTATION FUNDS$13,745,682230DEVELOPER DEPOSITS16,914 16,000 48,6173300 Investment Earnings008,022,857 8,381,649 6,646,8523760 Other Dev Fees00$8,039,771 $8,397,649 $6,695,469$0TOTAL - 230 DEVELOPER DEPOSITS$0ATTACHMENT C SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18234ADVANCED LIFE SUPPORT1,316,182 1,534,430 1,476,3153690 Other Agency Revenue1,552,8731,556,923$1,316,182 $1,534,430 $1,476,315$1,556,923TOTAL - 234 ADVANCED LIFE SUPPORT$1,552,873240PARKING39,897 40,598 26,7773160 Other Permits35,00025,000232,857 173,565 173,3173240 Parking Penalties200,000200,00012,5187,372 22,8363300 Investment Earnings00379,690 375,405 358,5453350 Rental/Lease of Land and Space350,000365,0002,001604900 Other Revenue00$666,963 $596,946 $581,475$590,000TOTAL - 240 PARKING$585,000250PUBLIC SAFETY427,460 441,515 508,0823210 Law Enforcement Penalties437,640437,64010,3528,428 25,7323300 Investment Earnings0001,030 03320 Sale of Personal Property0012,1739,379 24,0793350 Rental/Lease of Land and Space20,00020,000383,103 923,169 470,5883400 State Grants401,014401,0144,302,468 4,952,526 4,812,1603500 Federal Grants5,972,3246,196,739869,705 832,729 383,5543600 Other Agency Grants00170,476 260,823 200,1493690 Other Agency Revenue162,60092,426144,800 134,120 123,8414200 Staff Services Reimbursements134,710140,29601,023 04480 Other City Funds Reimbursement001,868 38,819 39,8974800 Sale of Goods10,00020,00036,221 21,862 14,7104900 Other Revenue20,00020,00042,753 51,226 77,1395000 Transfers In86,021150,958$6,401,379 $7,676,649 $6,679,931$7,479,073TOTAL - 250 PUBLIC SAFETY$7,244,309260LIBRARY/CULTURAL ARTS FUNDS1,8203926273300 Investment Earnings00$1,820$392$627$0TOTAL - 260 LIBRARY/CULTURAL ARTS FUNDS$0ATTACHMENT C SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18270SUNDRY GRANTS & MISC21,077 21,685 30,4553300 Investment Earnings00157,945 2,776,762 512,9393400 State Grants60,000350,0001,531,268 1,367,569 909,0673500 Federal Grants996,821421,75314,737 26,858 54,2903600 Other Agency Grants50,00050,000117,055 84,180 85,7904200 Staff Services Reimbursements65,00065,0001,63301,9414480 Other City Funds Reimbursement0023,434 46,817 43,9784900 Other Revenue22,33322,3338,060,513 51,615 61,6205000 Transfers In112,326112,326$9,927,662 $4,375,486 $1,700,080$1,021,412TOTAL - 270 SUNDRY GRANTS & MISC$1,306,480280CONSERVATION16,6809,672 21,1913300 Investment Earnings00174,843 661,008 751,6213400 State Grants336,091403,4261,050,492 796,133 937,1903600 Other Agency Grants1,783,1851,709,87012801713700 Zoning Fees00002643900 Recreation Program Fees001,8301,6101,3304200 Staff Services Reimbursements001,102,615 1,086,836 1,159,7744300 Fees for Other Services1,262,2791,262,279232,231 141,585 314,7104480 Other City Funds Reimbursement139,726139,7262,121,500004900 Other Revenue00$4,700,319 $2,696,844 $3,186,251$3,515,301TOTAL - 280 CONSERVATION$3,521,281301STORM DRAIN REVENUE FUND0003120 Dev / Improvement Permits23,75023,750(4,341) 24,431 11,8003230 Environmental Fines Penalties5,0005,0001,850(833)3,4823300 Investment Earnings00600,025 624,232 605,2074020 Storm Drain Fees555,500555,50002901,3934700 Collection Charges00$597,534 $648,120 $621,882$584,250TOTAL - 301 STORM DRAIN REVENUE FUND$584,250310HOUSING PROGRAM FUND5,355 15,940 16,4243300 Investment Earnings00ATTACHMENT C SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-1818,3497,4585923700 Zoning Fees00372,660003760 Other Dev Fees001,0001,0001,0004200 Staff Services Reimbursements00230,781 113,335 193,5244300 Fees for Other Services100,000100,000160,044 201,438 102,8734430 Redev Agency Reimbursements326,058752,483405,254 443,175 463,5144460 CDBG/Home Reimbursements455,613114,50056,421 44,602 85,2904480 Other City Funds Reimbursement93,000128,000100,008 26,7228,3104900 Other Revenue00$1,349,872 $853,670 $871,527$1,094,983TOTAL - 310 HOUSING PROGRAM FUND$974,671316PUBLIC EDUCATIONAL & GOVT. FEE654,842 679,354 664,4703020 Franchise Fees600,000600,0004,9244,141 17,1093300 Investment Earnings00$659,766 $683,495 $681,579$600,000TOTAL - 316 PUBLIC EDUCATIONAL & GOVT. FEE$600,000318REDV OBLIGATION RETIREMENT6,144,146 6,179,288 5,314,6873000 Property Tax4,967,1494,967,15010,640 15,778 42,3103300 Investment Earnings000005000 Transfers In03,709$6,154,786 $6,195,066 $5,356,997$4,970,859TOTAL - 318 REDV OBLIGATION RETIREMENT$4,967,149319HOUSING - SA423,627 749,380 997,6603300 Investment Earnings0200,00056,612003310 Sale of Real Property0014,944 13,954 11,6283350 Rental/Lease of Land and Space15,00015,000021 03370 Rental/Lease of Buildings0020,9793,3586,2084200 Staff Services Reimbursements002,192004420 Transit Reimbursements00103,872 199,741 629,2924900 Other Revenue0200,0000005000 Transfers In963,9310$622,226 $966,454 $1,644,788$415,000TOTAL - 319 HOUSING - SA$978,931ATTACHMENT C SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18320COMM DEV BLOCK GRANTS FUND12,067 31,114 15,4753300 Investment Earnings000 35,569 76,2333350 Rental/Lease of Land and Space79,00079,0003,415,216 2,109,028 2,382,3703500 Federal Grants2,853,055976,300140004200 Staff Services Reimbursements0000 14,0004460 CDBG/Home Reimbursements00441004480 Other City Funds Reimbursement0055,269 103,714 256,5584900 Other Revenue0009,597 05000 Transfers In031,600$3,483,133 $2,289,022 $2,744,636$1,086,900TOTAL - 320 COMM DEV BLOCK GRANTS FUND$2,932,055341PUBLIC LIABILITY TRUST304,810004480 Other City Funds Reimbursement001,321,009 442,646 500,6815000 Transfers In520,0001,284,078$1,625,819 $442,646 $500,681$1,284,078TOTAL - 341 PUBLIC LIABILITY TRUST$520,000350OPEN SPACE DISTRICT FUNDS169,089 91,222 227,6633300 Investment Earnings0057003350 Rental/Lease of Land and Space009,203,769 8,682,473 11,430,3804600 Assessments11,994,38214,513,4048340 20,5444900 Other Revenue00$9,373,749 $8,773,695 $11,678,587$14,513,404TOTAL - 350 OPEN SPACE DISTRICT FUNDS$11,994,382390FLEET MANAGEMENT13,6136,106 15,0313300 Investment Earnings001,5761,3123,6003320 Sale of Personal Property0055,542 91,950 67,4194200 Staff Services Reimbursements35,00035,000368,561 168,98004420 Transit Reimbursements00175004480 Other City Funds Reimbursement003,224,285 3,543,500 3,727,0874900 Other Revenue3,604,4543,384,2760 87,572 340,0355000 Transfers In085,267$3,663,752 $3,899,420 $4,153,172$3,504,543TOTAL - 390 FLEET MANAGEMENT$3,639,454ATTACHMENT C SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18393TECHNOLOGY REPLACEMENT600,000005000 Transfers In00$600,000$0$0$0TOTAL - 393 TECHNOLOGY REPLACEMENT$0398WORKERS COMPENSATION2,3180 1,189,7284480 Other City Funds Reimbursement25,00025,0002,106,790 2,631,734 3,247,3594900 Other Revenue3,494,7145,004,1230 950,000 503,3465000 Transfers In00$2,109,108 $3,581,734 $4,940,433$5,029,123TOTAL - 398 WORKERS COMPENSATION$3,519,714400TRANSIT FUNDS7,9031,2367,6923300 Investment Earnings000 24,377 18,3623320 Sale of Personal Property003,800,358 2,531,79903400 State Grants004,6543,95604200 Staff Services Reimbursements002,667,576 1,499,30704300 Fees for Other Services000 81,88504480 Other City Funds Reimbursement00212,196 256,222 16,4294900 Other Revenue0023,701005000 Transfers In00$6,716,388 $4,398,782 $42,483$0TOTAL - 400 TRANSIT FUNDS$0406CHULA VISTA MUNICIPAL GOLF COURSE0003370 Rental/Lease of Buildings0132,580$0$0$0$132,580TOTAL - 406 CHULA VISTA MUNICIPAL GOLF COURSE$0408DEVELOPMENT SERVICES FUND7,8457,2268,1143780 Other State Revenue 7,0007,0001,735,402 1,949,675 2,070,8993120 Dev / Improvement Permits1,905,3122,062,6292,312,855 2,041,237 2,155,1333700 Zoning Fees3,030,5773,035,827154902203720 Document Fees5005001,360,370 1,143,633 1,801,0803730 Plan Checking Fees2,504,7552,504,75569,449 84,726 56,0633740 Inspection Fees154,040154,0401,03829703770 Other Dev Fees2,0002,000ATTACHMENT C SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-1832,49302504200 Staff Services Reimbursements0050,065 52,160 42,2644410 DIF Reimbursements489,407489,4072,1709,9014,6604440 Open Space/Assess Dist Reimb175,000175,000271,980 233,200 148,1384450 CIP Reimbursements510,255510,2551,12302,0384460 CDBG/Home Reimbursements00493,551 596,419 258,0764480 Other City Funds Reimbursement34,48534,485117 11,904 16,8344900 Other Revenue00628,181 448,687 626,6165000 Transfers In841,959863,791$6,966,793 $6,579,155 $7,190,385$9,839,689TOTAL - 408 DEVELOPMENT SERVICES FUND$9,655,290409CV ELITE ATHLETE TRAINING CENTER0003690 Other Agency Revenue0339,2630005000 Transfers In020,000$0$0$0$359,263TOTAL - 409 CV ELITE ATHLETE TRAINING CENTER$0410SEWER FUNDS11,120 28,520 40,5023120 Dev / Improvement Permits40,00040,0001,373,068 628,219 1,286,7173300 Investment Earnings301,726301,72621,976 15,365 36,7063700 Zoning Fees18,50018,50033,039,714 35,925,367 35,216,7064000 Sewer Fees33,212,69933,212,699(2,525)004040 Industrial Waste Fees0050,625 36,597 58,2024100 Pump Station Fees004,5507264,6154200 Staff Services Reimbursements007,200004410 DIF Reimbursements0058,818 33,4751,6214440 Open Space/Assess Dist Reimb0020,7179,413 64,2314450 CIP Reimbursements15,00015,0000594 352,5454480 Other City Funds Reimbursement004414,5472464600 Assessments00626,854 441,418 439,2354700 Collection Charges330,000400,0006,822,903 4,916,652 340,6394900 Other Revenue00565,495 118,250 8,438,9835000 Transfers In485,000350,000$42,600,956 $42,159,143 $46,280,948$34,337,925TOTAL - 410 SEWER FUNDS$34,402,925ATTACHMENT C SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18430SEWER DIF FUNDS102,104 12,522 63,5323300 Investment Earnings00268,092 166,333 239,1434350 Sewer / Drainage DIF220,000400,000002,5255000 Transfers In00$370,196 $178,855 $305,200$400,000TOTAL - 430 SEWER DIF FUNDS$220,000440DEBT SERVICE - CITY FUNDS1,0556849,3813300 Investment Earnings00145,494 153,684 197,0164480 Other City Funds Reimbursement173,001168,0002,741,033 1,733,873 5,415,6145000 Transfers In4,797,7693,212,140$2,887,582 $1,888,241 $5,622,011$3,380,140TOTAL - 440 DEBT SERVICE - CITY FUNDS$4,970,770470DEBT SVC-CV PUBLIC FINANCING AUTH111,629 188,921 685,1413300 Investment Earnings0049,457,1110 36,592,4934900 Other Revenue0012,842,973 9,547,649 49,358,9735000 Transfers In9,437,1358,971,700$62,411,713 $9,736,570 $86,636,607$8,971,700TOTAL - 470 DEBT SVC-CV PUBLIC FINANCING AUTH$9,437,135500ASSESS DIST IMPROVEMENT FUNDS24,792 14,745 39,6793300 Investment Earnings00003,8614340 Transportation DIF0018,784 18,865 18,7864600 Assessments0000 285,8035000 Transfers In00$43,576 $33,610 $348,129$0TOTAL - 500 ASSESS DIST IMPROVEMENT FUNDS$0542TELEGRAPH CANYON DRAINAGE DIF66,577 39,520 76,0563300 Investment Earnings00$66,577 $39,520 $76,056$0TOTAL - 542 TELEGRAPH CANYON DRAINAGE DIF$0560PUBLIC FACILITIES DIF256,279 86,036 275,4693300 Investment Earnings003,730003320 Sale of Personal Property00ATTACHMENT C SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-184,554,723 5,371,592 6,473,8914330 Public Facilities DIF2,850,0005,300,000146,60802254900 Other Revenue000 140,3382,5525000 Transfers In00$4,961,340 $5,597,966 $6,752,137$5,300,000TOTAL - 560 PUBLIC FACILITIES DIF$2,850,000580PEDESTRIAN BRIDGE DIF40,741 26,860 73,8813300 Investment Earnings00345,770 313,945 253,5374380 OR Pedestrian Bridge DIF110,000145,000$386,511 $340,805 $327,418$145,000TOTAL - 580 PEDESTRIAN BRIDGE DIF$110,000590TRANSPORTATION DIF FUND138,990 159,300 169,6233300 Investment Earnings002,001,362 726,812 1,726,2234340 Transportation DIF1,591,6001,591,60036,8516,444 2,607,0305000 Transfers In1,045,0001,035,000$2,177,203 $892,556 $4,502,876$2,626,600TOTAL - 590 TRANSPORTATION DIF FUND$2,636,600600REDEVELOPMENT AGENCY FUND5783711,6133300 Investment Earnings00$578$371 $1,613$0TOTAL - 600 REDEVELOPMENT AGENCY FUND$0660DEBT SERVICE - SUCCESSORY AGENCY102,377 88,504 52,0693300 Investment Earnings0054108004480 Other City Funds Reimbursement003,122,996 5,561,843 5,062,9755000 Transfers In4,504,9312,563,000$3,225,914 $5,650,347 $5,115,844$2,563,000TOTAL - 660 DEBT SERVICE - SUCCESSORY AGENCY$4,504,931700MISCELLANEOUS CIP FUNDS209,075 366,650 185,6253060 Residential Construction Tax325,505325,505310,082 265,347 479,3433300 Investment Earnings002,614,066 1,072,237 3,203,6134370 Park Acquisition & Develop Fee700,000700,0000 150,000 445,5084480 Other City Funds Reimbursement87,6090383,900 302,779 1,133,8375000 Transfers In790,910460,396ATTACHMENT C SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18$3,517,123 $2,157,013 $5,447,926$1,485,901TOTAL - 700 MISCELLANEOUS CIP FUNDS$1,904,024730OTHER TRANSPORTATION PROGRAMS5,0855031,2693300 Investment Earnings00362,2841,17803400 State Grants001,232,550 2,925,033 3,256,8713500 Federal Grants6,637,6478,002,20300 44,0033600 Other Agency Grants65,00065,000085804450 CIP Reimbursements00300,000004900 Other Revenue00$1,899,919 $2,927,572 $3,302,143$8,067,203TOTAL - 730 OTHER TRANSPORTATION PROGRAMS$6,702,647GRAND TOTAL ALL FUNDS$355,946,806 $295,666,186 $380,739,917$282,521,883$363,905,439ATTACHMENT C ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 CITY COUNCIL ADMIN SECRETARY (MAYOR,ATWILL)1.00 - 1.00- CHIEF OF STAFF 1.00 - 1.00- CONSTITUENT SERVICES REPRESENTATIVE - 1.00 1.00- COUNCILPERSON 4.00 - 4.00- EXECUTIVE SECRETARY 1.00 - 1.00- MAYOR 1.00 - 1.00- OFFICE SPECIALIST (MYR/@WILL)1.00 (1.00)- - POLICY AIDE 1.00 - 1.00- SR COUNCIL ASST 4.00 - 4.00- 14.00 - CITY COUNCIL TOTAL 14.00- CITY CLERK ASSISTANT CITY CLERK 1.00 - 1.00- CITY CLERK 1.00 - 1.00- DEPUTY CITY CLERK I 1.00 - 1.00- DEPUTY CITY CLERK II 1.00 - 1.00- RECORDS MANAGER 1.00 - 1.00- SR RECORDS SPECIALIST 1.00 - 1.00- 6.00 - CITY CLERK TOTAL 6.00- CITY ATTORNEY ASST CITY ATTORNEY 1.00 - 1.00- CITY ATTORNEY (ELECTED) 1.00 - 1.00- DEPUTY CITY ATTORNEY II 3.00 - 3.00- DEPUTY CITY ATTORNEY III 3.00 - 3.00- LAW OFFICE MANAGER 1.00 - 1.00- LEGAL ASSISTANT 2.00 - 2.00- SR ASST CITY ATTORNEY 1.00 - 1.00- SR LEGAL ASSISTANT 1.00 - 1.00- SR RISK MANAGEMENT SPECIALIST 1.00 - 1.00- 14.00 - CITY ATTORNEY TOTAL 14.00- ADMINISTRATION ASST CITY MANAGER/ADMIN 1.00 - 1.00- CITY MANAGER 1.00 - 1.00- DEPUTY CITY MANAGER 2.00 - 2.00- EXECUTIVE SECRETARY 1.00 - 1.00- MARKETING & COMMUNICATIONS MGR 1.00 - 1.00- PUBLIC INFORMATION SPECIALIST 1.00 - 1.00- ATTACHMENT D ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 SPECIAL EVENTS COORDINATOR 1.00 - 1.00- SR GRAPHIC DESIGNER 1.00 - 1.00- SR WEBMASTER 1.00 - 1.00- 10.00 - ADMINISTRATION TOTAL 10.00- INFORMATION TECHNOLOGY SRVCS DIR OF INFO TECH SVCS 1.00 - 1.00- GIS MANAGER 1.00 - 1.00- GIS SPECIALIST 2.00 - 2.00- INFO TECH SUPPORT SPECIALIST 3.00 (2.00)1.00- INFO TECHNOLOGY TECHNICIAN - 2.00 2.00- INFORMATION TECHNOLOGY MANAGER 1.00 - 1.00- OPS&TELECOM MGR 1.00 - 1.00- SR APPLICATION SUPPORT SPEC 1.00 - 1.00- SR INFO TECH SUPPORT SPEC 4.00 - 4.00- SR PROGRAMMER ANALYST 2.00 - 2.00- TELECOMMUNICATIONS SPECIALIST 1.00 - 1.00- 17.00 - INFORMATION TECHNOLOGY SRVCS TOTA 17.00- HUMAN RESOURCES BENEFITS MANAGER 1.00 - 1.00- DIR OF HUMAN RESOURCES 1.00 - 1.00- HR ANALYST 1.00 - 1.00- HR TECHNICIAN 3.00 - 3.00- HUMAN RESOURCES OPS MANAGER 1.00 - 1.00- PERFORMANCE & ORG DEV MGR 1.00 - 1.00- SR FISCAL OFFICE SPECIALIST 2.00 - 2.00- SR HR ANALYST 4.00 - 4.00- SR RISK MANAGEMENT SPECIALIST 2.00 - 2.00- 16.00 - HUMAN RESOURCES TOTAL 16.00- FINANCE ACCOUNTANT 1.00 - 1.00- ACCOUNTING ASSISTANT 6.00 - 6.00- ACCOUNTING TECHNICIAN 4.00 - 4.00- ACCOUNTS PAYABLE SUPERVISOR 1.00 - 1.00- ASST DIR OF FINANCE 1.00 - 1.00- BUDGET & ANALYSIS MANAGER 1.00 - 1.00- BUSINESS LICENSE REP 1.00 - 1.00- COLLECTIONS SUPERVISOR 1.00 - 1.00- DIRECTOR OF FINANCE 1.00 - 1.00- ATTACHMENT D ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FINANCE & PURCHASING MGR 1.00 - 1.00- FISCAL & MANAGEMENT ANALYST 4.00 (1.00)3.00- FISCAL DEBT MGMT ANALYST - - 1.001.00 FISCAL OFFICE SPECIALIST 1.00 - 1.00- PRINCIPAL MANAGEMENT ANALYST 1.00 - - (1.00) PROCUREMENT SERVICES ANALYST - 1.00 1.00- PROCUREMENT SPECIALIST 1.00 - 1.00- SR ACCOUNTANT 2.00 - 2.00- SR MANAGEMENT ANALYST - 1.00 1.00- SR PROCUREMENT SPECIALIST 1.00 (1.00)- - 28.00 - FINANCE TOTAL 28.00- ANIMAL CARE FACILITY ANIMAL ADOPTION COUNSELOR 1.00 - 1.00- ANIMAL CARE FAC ADMINISTRATOR 1.00 - 1.00- ANIMAL CARE SPECIALIST 5.00 1.00 6.00- ANIMAL CARE SUPERVISOR 1.00 - 1.00- ANIMAL CONTROL OFFICER 3.00 (1.00)2.00- ANIMAL CTRL OFFICER SUPERVISOR 1.00 - 1.00- FISCAL OFFICE SPECIALIST 1.00 (1.00)- - OFFICE SPECIALIST 0.50 - 0.50- REGISTERED VETERINARY TECH 3.50 - 3.50- SR ANIMAL CARE SPECIALIST 2.00 - 2.00- SR FISCAL OFFICE SPECIALIST - 1.00 1.00- SR OFFICE SPECIALIST 1.00 - 1.00- VETERINARIAN (PERMITTED) 1.75 - 1.75- 21.75 - ANIMAL CARE FACILITY TOTAL 21.75- ECONOMIC DEVELOPMENT ADMINISTRATIVE SECRETARY - 1.00 1.00- CHIEF SUSTAINABILITY OFFICER 1.00 - 1.00- CONSERVATION SPECIALIST I 4.00 (4.00)- - CONSERVATION SPECIALIST II - 5.00 5.00- CULTURAL ARTS PROGRAM MGR 1.00 - 1.00- DIR OF ECON DEVELOPMENT 1.00 - 1.00- ECONOMIC DEVELOPMENT SPEC I - 1.00 1.00- ENVIRONMENTAL SERVICES MGR 1.00 - 1.00- PROJECT COORDINATOR I 2.00 (2.00)- - REAL PROPERTY MANAGER 1.00 - 1.00- SR CONSERVATION SPECIALIST 1.00 - 1.00- SR ECONOMIC DEV SPECIALIST 1.00 - 1.00- ATTACHMENT D ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 SR FISCAL OFFICE SPECIALIST - - 1.001.00 SR SECRETARY 1.00 (1.00)- - 14.00 - ECONOMIC DEVELOPMENT TOTAL 15.001.00 PLANNING AND BUILDING SERVICES ADMINISTRATIVE TECHNICIAN 1.00 - 1.00- ASSISTANT DIR DEVELOPMENT SVCS 1.00 - 1.00- ASSOCIATE PLANNER 2.00 - 2.00- CODE ENF OFFCR II 6.00 - 6.00- DEVELOPMENT SVCS DEPT DIRECTOR 1.00 - 1.00- DEVELOPMENT SVCS TECH II 1.00 - 1.00- OFFICE SPECIALIST 1.00 - 1.00- PLANNING TECHNICIAN 1.00 - 1.00- PRINCIPAL PLANNER 1.00 - 1.00- SR ADMINISTRATIVE SECRETARY 1.00 - 1.00- SR CODE ENFORCEMENT OFFICER 2.00 - 2.00- SR OFFICE SPECIALIST 1.00 - 1.00- SR PLANNING TECHNICIAN 1.00 - 1.00- 20.00 - PLANNING AND BUILDING SERVICES TOTAL 20.00- ENGINEERING AND CAPITAL PROJECT ADMINISTRATIVE SERVICES MANAGR - 1.00 1.00- ASSOC ENGINEER - 11.00 11.00- ASSOC LAND SURVEYOR - 1.00 1.00- DIR OF ENGINEERING - 1.00 1.00- ENGINEERING TECH II - 2.00 2.00- ENVIRONMENTAL HLTH SPECIALIST - 2.00 2.00- MANAGEMENT ANALYST - 1.00 1.00- PRINCIPAL CIVIL ENGINEER - 4.00 4.00- PUBLIC WORKS INSP II - 6.00 6.00- SECRETARY - 1.00 1.00- SR ADMINISTRATIVE SECRETARY - 1.00 1.00- SR CIVIL ENGINEER - 6.00 6.00- SR ENGINEERING TECHNICIAN - 2.00 2.00- SR PUBLIC WORKS INSP - 2.00 2.00- SURVEY TECHNICIAN II - 1.00 1.00- TRAFFIC DEVICES TECH - 3.00 3.00- TRAFFIC DEVICES TECH SUPV - 1.00 1.00- - 46.00ENGINEERING AND CAPITAL PROJECTS TO 46.00- ATTACHMENT D ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 POLICE AUTOMATED FINGERPRINT TECH 2.00 - 2.00- CHIEF OF POLICE 1.00 - 1.00- CIVILIAN BACKGROUND INVESTIGTR 1.00 - 1.00- COMMUNITY SERVICE OFFICER 8.00 - 8.00- CRIME LABORATORY MANAGER 1.00 - 1.00- DETENTION FACILITY MANAGER 1.00 - 1.00- FACILITY & SUPPLY SPECIALIST 1.00 - 1.00- FISCAL OFFICE SPECIALIST 1.00 - 1.00- FORENSICS SPECIALIST 2.00 - 2.00- LATENT PRINT EXAMINER 1.00 - 2.001.00 PARKING ENFORCEMENT OFFICER 1.00 - 1.00- PEACE OFFICER 148.00 5.00 153.00- POLICE ADMIN SVCS ADMINISTRATO 1.00 - 1.00- POLICE AGENT 50.00 - 48.00(2.00) POLICE CAPTAIN 3.00 - 3.00- POLICE COMM SYSTEMS MANAGER 1.00 - 1.00- POLICE DISPATCHER 20.00 - 21.001.00 POLICE DISPATCHER SUPERVISOR 6.00 - 5.00(1.00) POLICE LIEUTENANT 10.00 - 10.00- POLICE RECORDS SPECIALIST 10.50 - 10.50- POLICE SERGEANT 23.00 - 25.002.00 POLICE SERVICES OFFICER 10.00 - 10.00- POLICE SUPPORT SERVICES MGR 1.00 - 1.00- POLICE SVCS OFFICER SUPERVISOR 2.00 - 2.00- POLICE TECHNOLOGY MANAGER - - 1.001.00 POLICE TECHNOLOGY SPECIALIST 1.00 - 1.00- PRINCIPAL MANAGEMENT ANALYST 1.00 - 1.00- PUBLIC SAFETY ANALYST 1.00 - 1.00- SECRETARY 3.00 - 3.00- SR ADMINISTRATIVE SECRETARY 1.00 - 1.00- SR FISCAL OFFICE SPECIALIST 1.00 - 1.00- SR LATENT PRINT EXAMINER 1.00 - 1.00- SR MANAGEMENT ANALYST 1.00 - - (1.00) SR OFFICE SPECIALIST 4.00 - 4.00- SR POLICE RECORDS SPECIALIST 1.00 - 1.00- SR POLICE TECHNOLOGY SPEC 1.00 - - (1.00) SR PROP & EVIDENCE SPECIALIST 2.00 - 2.00- SR PUBLIC SAFETY ANALYST 2.00 - 2.00- SUPV PUBLIC SAFETY ANALYST - - 1.001.00 TRAINING PROGRAMS SPEC 1.00 - 1.00- ATTACHMENT D ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 326.50 5.00POLICE TOTAL 332.501.00 FIRE DEPUTY FIRE CHIEF 1.00 - 1.00- FACILITY & SUPPLY SPECIALIST 1.00 - 1.00- FIRE BATTALION CHIEF (112 HR) 6.00 - 6.00- FIRE BATTALION CHIEF (80 HR) 1.00 - 1.00- FIRE CAPTAIN (112 HR) 33.00 3.00 36.00- FIRE CAPTAIN (80 HR) 2.00 - 2.00- FIRE CHIEF 1.00 - 1.00- FIRE DIVISION CHIEF 1.00 - 1.00- FIRE ENG (112 HR) 33.00 3.00 36.00- FIRE ENGINEER (80 HR) 1.00 - 1.00- FIRE INSP/INVEST I 1.00 - 1.00- FIRE INSP/INVEST II 5.00 - 5.00- FIRE PREV ENG/INVEST 1.00 - 1.00- FIRE PREVENTION AIDE 1.00 - 1.00- FIREFIGHTER (112 HR) 9.00 - 9.00- FIREFIGHTER/PARAMEDIC (112 HR)33.00 6.00 39.00- PRINCIPAL MANAGEMENT ANALYST 1.00 - 1.00- PUBLIC SAFETY ANALYST 1.00 - 1.00- SR ADMINISTRATIVE SECRETARY 1.00 - 1.00- SR FIRE INSP/INVEST 1.00 - 1.00- SR OFFICE SPECIALIST 1.00 - 1.00- TRAINING PROGRAMS SPEC 1.00 - 1.00- 136.00 12.00FIRE TOTAL 148.00- PUBLIC WORKS ADMINISTRATIVE SECRETARY 1.00 - 1.00- ADMINISTRATIVE SERVICES MANAGR 1.00 (1.00)- - ASSOC ENGINEER 10.00 (10.00)- - ASSOC LAND SURVEYOR 1.00 (1.00)- - ASST DIR OF PUBLIC WORKS 1.00 - 1.00- ASST DIRECTOR OF ENGINEERING 1.00 (1.00)- - ASST ENGINEER 1.00 (1.00)- - BLDG PROJECT MANAGER 1.00 - - (1.00) CONSTRUCTION & REPAIR SUPVSR 1.00 - 1.00- CUSTODIAL SUPERVISOR 2.00 - 2.00- CUSTODIAN 11.50 (0.50)11.00- DIR OF PUBLIC WORKS 1.00 - 1.00- ELECTRICIAN 2.00 - 2.00- ATTACHMENT D ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 ENGINEERING TECH II 2.00 (2.00)- - ENVIRONMENTAL HLTH SPEC 2.00 (2.00)- - EQUIPMENT OPERATOR 2.00 - 2.00- FACILITIES MANAGER 1.00 - 1.00- GARDENER II 22.00 - 22.00- GRAFFITI ABATEMENT COORDINATOR 1.00 - 1.00- HVAC TECHNCIAN 2.00 - 2.00- LEAD CUSTODIAN 4.00 - 4.00- LOCKSMITH 2.00 - 2.00- MAINTENANCE WORKER I 1.00 - 1.00- MAINTENANCE WORKER II 9.00 - 9.00- MANAGEMENT ANALYST 3.00 (1.00)2.00- OPEN SPACE INSPECTOR 5.00 - 5.00- OPEN SPACE MANAGER 1.00 - 1.00- PARK RANGER SUPERVISOR 1.00 - 1.00- PARKS OPERATIONS MANAGER 1.00 - 1.00- PARKS SUPERVISOR 4.00 - 4.00- PLUMBER 1.00 - 1.00- PRINCIPAL CIVIL ENGINEER 4.00 (4.00)- - PRINCIPAL MANAGEMENT ANALYST - - 1.001.00 PUB WORKS SPECIALIST 1.00 - 1.00- PUBLIC WORKS INSP II 6.00 (6.00)- - PUBLIC WORKS MANAGER 1.00 - 1.00- PUBLIC WORKS SUPERVISOR 2.00 - 2.00- PUMP MAINT TECHNICIAN 5.00 - 5.00- PUMP MAINTENANCE SUPERVISOR 1.00 - 1.00- SECRETARY 1.00 (1.00)- - SIGNING&STRIPING SUPERVISOR 1.00 - 1.00- SR ADMINISTRATIVE SECRETARY 1.00 (1.00)- - SR CIVIL ENGINEER 5.00 (6.00)- 1.00 SR ELECTRONICS TECH 1.00 - 1.00- SR ENGINEERING TECHNICIAN 2.00 (2.00)- - SR FISCAL OFFICE SPECIALIST 2.00 - 2.00- SR GARDENER 9.00 - 9.00- SR HVAC TECHNICIAN 1.00 - 1.00- SR LANDSCAPE INSPECTOR 1.00 - 1.00- SR MAINTENANCE WORKER 8.00 - 8.00- SR MANAGEMENT ANALYST 1.00 - - (1.00) SR OPEN SPACE INSPECTOR 1.00 - 1.00- SR PARK RANGER 1.00 - 1.00- SR PUBLIC WORKS INSP 2.00 (2.00)- - SURVEY TECHNICIAN II 1.00 (1.00)- - ATTACHMENT D ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 TRAFFIC DEVICES TECH 3.00 (3.00)- - TRAFFIC DEVICES TECH SUPV 1.00 (1.00)- - TREE TRIMMER SUPERVISOR 1.00 - 1.00- WASTEWATER/STRMWTR OPS MGR 1.00 - 1.00- 162.50 (46.50)PUBLIC WORKS TOTAL 116.00- RECREATION ADMINISTRATIVE SECRETARY 1.00 - 1.00- AQUATIC SUPV II 2.00 - 2.00- AQUATIC SUPV III 1.00 - 1.00- DIRECTOR OF RECREATION 1.00 - 1.00- MANAGEMENT ANALYST - 1.00 1.00- PRINCIPAL RECREATION MANAGER 2.00 - 2.00- RECREATION SUPERVISOR III 8.00 - 8.00- SR FISCAL OFFICE SPECIALIST 1.00 (1.00)- - SR RECREATION MGR 1.00 - 1.00- 17.00 - RECREATION TOTAL 17.00- LIBRARY DIR OF LIBRARY 1.00 - 1.00- LIBRARIAN I 1.00 - 1.00- LIBRARIAN II 5.00 - 5.00- LIBRARIAN III 2.00 - 2.00- LIBRARY ASSOCIATE 7.50 - 7.50- LIBRARY DIGITAL SERVICES MGR 1.00 - 1.00- MANAGEMENT ANALYST 1.00 - 1.00- PRINCIPAL LIBRARIAN 1.00 - 1.00- SR LIBRARIAN 3.00 - 3.00- 22.50 - LIBRARY TOTAL 22.50- GENERAL FUND SUBTOTAL 825.25 16.50 843.752.00 ADVANCED LIFE SUPPORT PROGRAM EMS NURSE COORDINATOR 1.00 - 1.00- 1.00 - ADVANCED LIFE SUPPORT PROGRAM TOT 1.00- POLICE DEPT GRANTS FUND FA ADMIN ANALYST II 1.00 (1.00)- - FA ANALYST 2.00 - 3.001.00 FA DEPUTY DIRECTOR SDLECC 1.00 - 2.001.00 ATTACHMENT D ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FA DEPUTY EXECUTIVE DIRECTOR 1.00 - 1.00- FA DIRECTOR OF SD LECC 1.00 - 1.00- FA EXECUTIVE DIRECTOR 1.00 (1.00)- - FA FINANCIAL MANAGER 1.00 - 1.00- FA GEOSPATIAL INTEL ANALYST 1.00 - 1.00- FA GRAPHIC DESIGNER/WBMSTR 1.00 - 1.00- FA INFO SECURITY PROGRAM MGR 1.00 - 1.00- FA INTELLIGENCE ANALYST - - 1.001.00 FA IVDC-LECC EXEC DIRECTOR 1.00 - 1.00- FA LECC IT MANAGER 1.00 - 1.00- FA NTWRK ADMINISTRATOR II 4.00 - 4.00- FA PROG ASST SUPERVISOR - - 1.001.00 FA PROGRAM ASSISTANT 2.00 - 1.00(1.00) FA PROGRAM MANAGER 1.00 (1.00)- - FA PUB PRVT PART EXER PRG MGR 1.00 - 1.00- FA RCFL NETWORK ENGINEER 2.00 - 2.00- FA SR FINANCIAL ANALYST 1.00 - 1.00- FA SR INTELLIGENCE ANALYST 7.00 - 9.002.00 FA SR PROGRAM ASSISTANT - - 1.001.00 FA SR SECRETARY 1.00 - 1.00- FA SUPV INTELLIGENCE ANALYST 2.00 - 3.001.00 PEACE OFFICER 3.00 - 3.00- POLICE COMM RELATIONS SPEC 1.00 - 1.00- POLICE SERGEANT 1.00 - 1.00- 39.00 (3.00)POLICE DEPT GRANTS FUND TOTAL 43.007.00 FEDERAL GRANTS FUND EMERGENCY SVCS COORDINATOR 1.00 - 1.00- GIS SPECIALIST 1.00 - 1.00- 2.00 - FEDERAL GRANTS FUND TOTAL 2.00- ENVIRONMENTAL SERVICES RECYCLING SPECIALIST I 3.00 - 3.00- RECYCLING SPECIALIST II 3.00 - 3.00- SR RECYCLING SPECIALIST 1.00 - 1.00- 7.00 - ENVIRONMENTAL SERVICES TOTAL 7.00- CV HOUSING AUTHORITY FUND HOUSING MANAGER 1.00 - 1.00- SR MANAGEMENT ANALYST 2.00 - 2.00- SR PROJECT COORDINATOR 1.00 - 1.00- ATTACHMENT D ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 4.00 - CV HOUSING AUTHORITY FUND TOTAL 4.00- FLEET MANAGEMENT EQUIPMENT MECHANIC 4.00 (1.00)3.00- FIRE APPARATUS MECH 2.00 - 2.00- FISCAL OFFICE SPECIALIST 1.00 - 1.00- FLEET INVENTORY CONTROL SPEC 1.00 - 1.00- FLEET MANAGER 1.00 - 1.00- SR EQUIPMENT MECHANIC 1.00 - 1.00- 10.00 (1.00)FLEET MANAGEMENT TOTAL 9.00- DEVELOPMENT SERVICES FUND ASSOC ENGINEER 3.00 - 3.00- ASSOC PLAN CHECK ENGINEER 3.00 - 3.00- ASSOCIATE PLANNER 5.00 - 5.00- BUILDING INSPECTION MGR 1.00 - 1.00- BUILDING INSPECTOR II 4.00 - 4.00- BUILDING INSPECTOR III 2.00 - 2.00- BUILDING OFF/CODE ENF MGR 1.00 - 1.00- DEVELOPMENT SERVICES TECH I 1.00 - 1.00- DEVELOPMENT SVCS TECH II 3.00 - 3.00- DEVELOPMENT SVCS TECH III 2.00 - 2.00- DEVLPMT SVCS COUNTER MGR 1.00 - 1.00- ENGINEERING TECH II 1.00 - 1.00- LANDSCAPE ARCHITECT 4.00 - 4.00- MANAGEMENT ANALYST 1.00 - 1.00- PLAN CHECK SUPERVISOR 1.00 - 1.00- PLANNING MANAGER 1.00 - 1.00- PRINCIPAL CIVIL ENGINEER 1.00 - 1.00- PRINCIPAL LANDSCAPE ARCHITECT - - 1.001.00 PRINCIPAL PLANNER 2.00 - 1.00(1.00) SECRETARY 1.00 - 1.00- SR BUILDING INSPECTOR 1.00 - 1.00- SR CIVIL ENGINEER 2.00 - 2.00- SR ENGINEERING TECHNICIAN 1.00 - 1.00- SR PLAN CHECK TECHNICIAN 1.00 - 1.00- SR PLANNER 4.00 - 4.00- SR PROJECT COORDINATOR 1.00 - 1.00- SR SECRETARY 1.00 - 1.00- TRANSPORTATION ENGINEER W/CERT 1.00 - 1.00- ATTACHMENT D ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 50.00 - DEVELOPMENT SERVICES FUND TOTAL 50.00- SEWER FUNDS ASSOC ENGINEER 2.00 - 2.00- ENGINEERING TECH II 2.00 - 2.00- EQUIPMENT OPERATOR 3.00 - 3.00- MAINTENANCE WORKER II 18.00 - 18.00- PUB WORKS SPECIALIST 1.00 - 1.00- PUBLIC WORKS SUPERVISOR 4.00 - 4.00- SR CIVIL ENGINEER 1.00 - 1.00- SR FISCAL OFFICE SPECIALIST 1.00 - 1.00- SR MAINTENANCE WORKER 14.00 - 14.00- 46.00 - SEWER FUNDS TOTAL 46.00- NON-GENERAL FUND SUBTOTAL 159.00 (4.00) 162.007.00 984.25 12.50TOTAL AUTHORIZED POSITIONS 1,005.759.00 ATTACHMENT D FY2018 City of Chula Vista Proposed Budget General Fund Long‐Term Financial Plan   Each year the City of Chula Vista has prepared a  General Fund Five‐Year Forecast which serves as a tool  to identify financial trends, shortfalls, and issues so  that the City can proactively address them.  For fiscal  year 2017‐2018, the City’s first Long Term Financial  Plan is being presented in order to expand the  duration of the forecast to ten years from the current  five years, as well as to provide a more in depth  analysis of the City’s fiscal condition to aide in  proactive financial decision making.  The goal of the  Long Term Financial Plan is to assess the City’s ability  over the next ten years to continue to provide current  service levels based on projected growth, preserve the  City’s long term fiscal health by aligning operating  revenues and costs, and to slowly rebuild the  operating reserves.  As a financial planning document,  revenue and expenditure assumptions are included to  forecast the impacts of development, legislative  changes, pension costs, health care, economic cycles,  and many other factors over the next ten years.      It is important to stress that this plan is not a budget.   It does not make expenditure decisions but rather  highlights the need to prioritize the allocation of City  resources.  The purpose of the plan is to provide an  overview of the City’s fiscal health based on various  assumptions over the next ten years and provide the  City Council, management, and the citizens of Chula  Vista with a “heads up” on the financial outlook  beyond the annual budget cycle.  The Long Term  Financial Plan is intended to serve as a planning tool to  bring a long‐term perspective to the budget process.    The following assumptions were used in the  preparation of the ten year projections attached.    ECONOMIC & POPULATION GROWTH  Inflation is a measure of the increase for the cost of  goods and services.  Inflation impacts many revenues,  such as rents and leases, and most expenditure  categories throughout the plan.  Normally inflation  averages around 2% per year.  With the recent  approval of Senate Bill 3 by California Governor Jerry  Brown the state minimum wage will be increasing to  $15 per hour by the year 2022.  As a result  expenditure inflation may be significantly higher than  normal over this period of time.  While it is impossible  to calculate the exact impacts year by year, it is  reasonable to assume that employers will be passing  along the increased labor costs into their costs of  goods and services.  The state minimum wage  proposal calls for an increase in minimum wage to  $10.50 in 2017, $11 in 2018 and one dollar each year  through 2022.  The ten year forecast includes  expenditure inflation on the supplies and services  category ranging from 5%‐9% per year until 2022.   While the City does not currently pay minimum wage  for any of its authorized positions, the increases in  minimum wage will exceed current wages for some  hourly, part‐time, and seasonal staff.  Those positions  are adjusted by a higher than normal inflation factor  through 2022 in the ten year forecast.      The regional, state, and national economies continue  to recover at a modest pace from the recession of  2007‐2009.   The two major factors that have  supported the recovery are the growth in the housing  market related to new development and housing price  appreciation, as well as job creation reflected in the  strong unemployment figures.  While most current U.  S. economic forecasts show continued growth over  the next 12‐18 months, global recessionary pressures  continue to build.  China’s explosive economic  expansion is beginning to slow to a more sustainable  level.  Oil producing nations have suffered greatly as a  result of the oil price collapse over the last 36 months.   The majority of the European economies continue to  struggle to achieve any measurable growth which has  required the European Central Bank to maintain  extremely low interest rates to avoid a pronounced  recession.  This lack of inflation in Europe has put  pressure on U.S. interest rates as the “risk‐off” trade  of Federal Securities continues to be the investment  vehicle of choice for many conservative investors.  The  U.S. national debt continues to build while entitlement  liabilities within the Social Security, Medicare, and the  Health Care system provides cause for concern as it  relates to future economic growth assumptions.      MAJOR REVENUES  Sales tax revenue will increase moderately in FY 2018  with projected slow growth anticipated at 2%. In Fiscal  Years 2019‐22 the projected growth is expected to be  at 2.5%. A reasonable assumption of sales tax growth  ATTACHMENT E FY2018 City of Chula Vista Proposed Budget in forecast years 5‐10 is based upon normal inflation  increases along with population growth.    Property tax revenue is the City’s most stable revenue  source.  The severe housing recession late last decade  decimated property values and therefore severely  reduced property tax revenues from 2008‐2012.  A  steady recovery has ensued since that time.  Another  housing recession is not predicted during the forecast  period.  Stable property tax revenue growth is  assumed throughout the forecast period.    Franchise Fees, Utility User Taxes, and Motor Vehicle  License Fees are all projected to grow at a steady rate  throughout the forecast period.    Transient occupancy tax will see significant increases  as a result of three new major hotels planned for  development in the eastern part of the City over the  next five years.  Most of the City’s current  hotels/motels are of the discount or budget variety.   The three new hotels will be in the mid‐range service  level and will attract more business travelers and  tourists to the City.  The City recently took over the  ownership and operation of the Olympic Training  Center in the City.  It is anticipated that future events  at the training center will further support robust  growth in transient occupancy tax.  The City currently  anticipates the first hotel opening sometime in  calendar year 2017 with the second and third hotels  opening in 2019.    EXPENDITURES  Personnel Services for fiscal year 2017‐18 reflect  assumed wage inflation of 2% per year.  At the time of  the writing of this document the City was entering  negotiations with four of the five bargaining groups.   For purposes of the ten year forecast, wage inflation is  assumed at 2% per year.  It is important to note that  this figure is simply an assumption and does not  represent a commitment or obligation, but rather  provides a baseline for wage related inflation in the  future.     Beginning in 2017‐18, salary savings are calculated at  1% of projected Salary/PERS/Medicare expenditures.   This is based upon normal position vacancy rates and  savings as a result of voluntary furlough elections by  employees.    The Workers Compensation Fund is close to depleting  its fund balance.  This fund was established to account  for revenues and expenditures related to workers  compensation claims and litigation.  The Workers  Compensation charges allocated to the General Fund  will need to increase in order to fund anticipated  Workers Compensation expenditures and begin to  build reserves.    The Public Liabilities Trust Fund is also close to  depleting its fund balance.    This fund was established  to account for revenues and expenditures related to  litigation activities citywide.  Additional General Fund  allocations will be required in order to maintain  sufficient reserves within this fund.      PENSION COSTS  The City contracts with CalPERS for retirement  benefits for all full time benefitted employees.  The  City currently has three tiers of employees based upon  their start date within the CalPERS system and with  the City of Chula Vista.  For each of the benefit rates  referenced below, CalPERS uses the percentage of  service credit earned in one year (3%, 2%, etc.) and  the full retirement age (60, 50, etc.) to describe their  tiers.  Tier 1 employees include employees who  became members of CalPERS and started with the City  of Chula Vista prior to 4/22/2011.  Miscellaneous tier  1 employees receive benefits at the rate of 3% at 60.   Public Safety tier 1 employees receive benefits at the  rate of 3% at 50.  Tier 2 employees include employees  that became members of CalPERS or a reciprocal  agency prior to 1/1/2013 but started with the City  after 4/22/2011.  Miscellaneous tier 2 employees  receive benefits at the rate of 2% @ 60.  Public Safety  tier 2 employees receive benefits at the rate of 3.0%  @ 55.  PEPRA, or Tier 3 employees include all  employees that are new members to CalPERS on or  after 1/1/2013.  Miscellaneous tier 3 employees  receive benefits at the rate of 2% @ 62.  Public safety  tier 3 employees receive benefits at the rate of 2.7%  at 57.    All City employees are separated into two retirement  employment categories, miscellaneous and public  safety, in the annual CalPERS actuarial valuation  reports.  These reports provide the City with two very  important figures.  The first is the City’s unfunded  liability which is the amount the City would have to  pay to CalPERS today to completely pay off all pension  ATTACHMENT E FY2018 City of Chula Vista Proposed Budget liability.  The unfunded liability is the amount of  money it would take to bring the City’s pension plan to  100% funded status.  As of June 30, 2015, the most  recent CalPERS valuation report available, the City’s  unfunded liability for the miscellaneous category was  $153.8 million and for the public safety category it was  $107.4 million.  The second important figure is the  City’s required employer contribution.  This is amount  of money the City will need to contribute for the fiscal  year towards pension costs.  For fiscal year 2017‐18  the required employer contribution for the  miscellaneous category is $15.3 million, an increase of  approximately $1.1 million from fiscal year 2016‐17.   For the public safety category the fiscal year 2017‐18  required employer contribution is $13.4 million, an  increase of approximately $1.2 million from fiscal year  2016‐17.  These two numbers are used to calculate  the City’s minimum employer contribution rate.  This  is the rate of base pay the City must contribute to  cover an employee’s pension costs.    CalPERS valuation reports also provide the City with a  five‐year projection of future employer contribution  rates that the City can utilize in making long term  projections.  Since the projection will always be almost  a year and half old by the time it is complete, the City  hired an actuarial consultant to prepare a more up to  date analysis of our projected employer contribution  rates.  The results of this analysis are included in the  ten year projections attached.  For miscellaneous  employees, the projected future employer  contribution rate will rise from 31.5% in fiscal year  2017‐18 to 44.4% in 2026‐27.  For public safety  employees, the projected employer contribution rate  will rise from 35.6% in fiscal year 2017‐18 to 57% in  2026‐27.  This means that in the year 2027 for every  $1 the City pays to Miscellaneous employees the City  will have to contribute an additional $0.44 to CalPERS  to cover pension obligations.  This number increases  to $0.57 for public safety employees.     In December, 2016 the CalPERS board approved a  reduction in their stated discount rate from 7.5% to  7.0%.  This change will result in a 30‐40% increase in  the City’s unfunded pension liability as well as  increasing normal pension costs.  The 10 year forecast  includes the anticipated impacts of this change.      Part time employees receive retirement benefits  through PARS.  PARS is an alternative to Social Security  for Part‐Time, Seasonal, and Temporary employees.   The City and employees both currently contribute  3.75% of salary towards the PARS contribution  amount of 7.5%.     HEALTH CARE  The City currently offers employees four medical plan  options: UHC (value and full); UHC PPO; and Kaiser  HMO.  The City does allow retirees to stay enrolled in  the City’s health plans at the same rate as our active  employees.  The City recently went out to bid to  ensure the best overall value for the plans offered to  our employees.  As a result of the bid process, Aetna  was replaced by UHC for the value, HMO, and PPO  plans.  At the time of the production of this document  2018 rates were unknown.  The medical plan cost  history over the last five years shows that Kaiser has  increased by an average of 3.9% per year. Cost history  for UHC is not available since they are a new provider  to the City.  The City’s health insurance broker  anticipates that average annual health insurance costs  will increase by 10% per year over the ten year  forecast period, in line with the industry average.    ASSET MANAGEMENT  The Asset Management Program was developed to  identify, assess, and plan for the repair and  replacement of all City assets.  The first step of the  program consists of documenting all assets owned and  managed by the City.  This documentation includes  inventorying all assets, performing a condition  assessment on each of them, valuing the assets, and  creating a hierarchy.  The second step of the program  is to prioritize the need by critically ranking all assets  by risk level and level of importance.  The third step of  the program is to perform a life cycle cost assessment  in order to develop a plan for financing the entire  program.    The program consists of nine separate systems which  are outlined below.  Using the steps described above,  the assets in each system have been sorted by red  (high risk zone), yellow (medium risk zone), and green  (low risk zone).  This allows for the City to make  decisions on each asset (repair, replace, renovate,  liquidate, shut down, relocate, etc.) and to budget  available resources towards the repair and  replacement of these assets.  With seven of nine  systems completed, the red category has  approximately $112 million in estimated funding  ATTACHMENT E FY2018 City of Chula Vista Proposed Budget required to repair and replace these high risk assets.   The yellow category currently has an estimated $437.6  million in funding required for repair and replacement  costs.     Building Management System (BMS)   Drainage Management System (DMS)   Fleet Management System (FMS)  o Police  o Fire  o General Government   General Government Management System  (GGMS)   Open Space Management System (OSMS)   Parks Management System (PMS)   Roadways Management System (RMS)   Urban Forestry Management System (UFMS)   Wastewater Management System (WMS)    During the development of the Asset Management  program, it became clear that additional funding  would be needed to fund the additional infrastructure  projects and equipment.  After extensive research into  viable funding options, City staff recommended  moving forward with Measure P, a half‐cent sales tax  measure with a ten year sunset period.  City Council  approved the ballot measure in July 2016 and the  measure ultimately passed with approximately 68% of  the vote in favor.  Staff projects Measure P revenue at  approximately $170 million dollars over the ten year  period.    DEVELOPMENT IMPACTS  As new major developments are proposed in the City,  each developer is required to submit a fiscal impact  analysis to ensure that the City’s revenues generated  from the project will meet or exceed the anticipated  expenditures.  Many of the developments within the  City were initiated prior to the recession and housing  market crash late last decade.  The recession and  reduction in property values has caused the revenues  to be below what was originally anticipated.  The  timing of the revenues related to new development  can vary greatly depending on how fast the market  can absorb the new inventory and the economic  condition throughout the development process.  Staff  is currently working on developing an updated fiscal  impact model that will more accurately project  impacts of new developments.  We anticipate this new  model to be completed in summer 2017.    ITEMS NOT INCLUDED IN THE PLAN  Several projects are in conceptual planning or  negotiation stages and therefore cannot be accurately  forecast during the ten year forecast period.  The  Bayfront project has been discussed for many years.   This project would bring a variety of residential and  commercial developments to an area of the City that  is currently underutilized.  Discussions are ongoing  with the various resource agencies, governments, and  developers.  This Long Term Financial Plan does not  include potential revenue growth assumptions from  Bayfront related indirect development.  As mentioned  previously, the City recently signed an agreement with  the United States Olympic Committee to take over the  ownership of the Olympic Training Center.  Although it  is likely that this change in use of this venue will  attract new tourism to the City, an accurate forecast  for actual revenue generated by the Center would be  difficult to project at this time.   This plan will include  an update annually to these projects and any future  projects that are being considered.    10 YEAR PROJECTIONS  The following table includes major revenue and  expenditure categories for the City’s General Fund  over a ten year forecast period assuming maintaining  current baseline services.  It is important to  understand that this is only a forecast and not  indicative of what the budgets will be in future years.   Assumptions have been made about the state of the  economy, the City’s future costs, as well as projected  expenditures.  In general, the farther you project into  the future the less accurate the forecast will be.  Every  effort was made in the creation of the forecast to base  assumptions on industry best practices.  ATTACHMENT E FY2018 City of Chula Vista Proposed Budget Description ProposedForecastForecastForecastForecastForecastForecastForecastForecastForecast  FY 2018 FY 2019 FY  2020 FY  2021 FY 2022 FY  2023 FY  2024 FY 2025 FY  2026 FY  2027 Revenues: Property Taxes 33.62$     34.36$     35.30$     36.26$     37.26$     38.28$     39.34$     40.42$     41.54$     42.69$      Sales Tax 49.26$     50.25$     51.42$     52.63$     53.85$     55.11$     56.40$     57.72$     59.07$     55.57$      Franchise Fees 11.97$     11.57$     11.76$     11.96$     12.16$     12.36$     12.56$     12.77$     12.98$     13.20$      Utility Users Taxes 5.86$        5.92$        5.98$        6.04$        6.10$        6.16$        6.22$        6.28$        6.35$        6.41$         Transient Occupancy Taxes 4.32$        4.36$        5.61$        5.73$        5.84$        5.96$        6.08$        6.20$        6.32$        6.45$         Motor Vehicle License  Fees 20.84$     21.16$     21.79$     22.44$     23.11$     23.80$     24.51$     25.25$     26.00$     26.78$      SUBTOTAL MAJOR DESCRETIONARY  REVENUES 125.87$   127.62$   131.87$   135.05$   138.32$   141.67$   145.11$   148.64$   152.26$   151.10$    Development Revenue 1.21$        1.21$        1.22$        1.22$        1.23$        1.24$        1.24$        1.25$        1.25$        1.26$         Licenses and Permits 1.36$        1.39$        1.42$        1.45$        1.48$        1.51$        1.54$        1.57$        1.60$        1.63$         Fines, Forfeitures & Penalties 1.08$        1.10$        1.12$        1.14$        1.16$        1.19$        1.21$        1.24$        1.26$        1.29$         Use  of Money  and Property 2.42$        2.45$        2.47$        2.49$        2.52$        2.55$        2.57$        2.60$        2.62$        2.65$         Other Local  Taxes 2.60$        2.62$        2.65$        2.68$        2.70$        2.73$        2.76$        2.79$        2.81$        2.84$         Police Grants 0.76$        0.76$        0.76$        0.76$        0.76$        0.76$        0.76$        0.76$        0.76$        0.76$         Other Agency Revenue 2.03$        2.05$        2.07$        2.09$        2.11$        2.13$        2.15$        2.17$        2.19$        2.22$         Charges for Services 7.21$        7.25$        7.28$        7.32$        7.36$        7.39$        7.43$        7.47$        7.50$        7.54$         Interfund Reimbursements 9.82$        9.92$        10.01$     10.11$     9.76$        9.86$        9.96$        10.06$     10.16$     10.26$      Other Revenues ‐ Miscellaneous 1.03$        1.04$        1.04$        1.05$        1.06$        1.06$        1.07$        1.07$        1.08$        1.08$         Transfers From Other Funds 11.21$     10.91$     10.91$     10.91$     10.91$     10.91$     10.91$     10.91$     10.91$     10.91$      SUBTOTAL OTHER REVENUES 40.72$     40.68$     40.95$     41.21$     41.04$     41.31$     41.59$     41.87$     42.14$     42.43$      NEW DEVELOPMENT REVENUES Property Taxes ‐$         0.73$       1.01$       1.41$       1.76$       2.10$       2.46$       2.79$       3.19$       3.37$        Sales Tax ‐$         0.32$       0.45$       0.59$       0.74$       0.85$       0.96$       1.06$       1.16$       1.26$        Franchise Fees ‐$         0.20$       0.28$       0.36$       0.45$       0.54$       0.63$       0.72$       0.80$       0.88$        Utility Users Taxes ‐$         0.08$       0.11$       0.14$       0.18$       0.21$       0.25$       0.28$       0.32$       0.76$        Transient Occupancy Taxes ‐$         1.19$        ‐$          ‐$          ‐$          ‐$          ‐$          ‐$          ‐$          ‐$          Motor Vehicle License Fees ‐$         0.48$       0.67$       0.94$       1.17$       1.40$       1.64$       1.86$       2.12$       2.24$        Other Revenues ‐ Miscellaneous ‐$         0.27$       0.38$       0.50$       0.62$       0.74$       0.86$       0.98$       1.06$       1.69$        Other Local  Taxes ‐$         0.15$       0.19$       0.26$       0.26$       0.28$       0.31$       0.33$       0.35$       0.30$        SUBTOTAL NEW DEVELOPMENT REVENUES ‐$          3.41$        3.09$        4.20$        5.18$        6.12$        7.09$        8.02$        8.99$        10.50$      TOTAL REVENUES 166.59$   171.71$   175.90$   180.46$   184.54$   189.10$   193.79$   198.52$   203.39$   204.03$    Expenditures: Personnel Services 88.93$     90.70$     91.99$     93.74$     95.52$     97.34$     99.20$     101.10$   103.03$   105.01$    Flex/Insurance 12.37$     12.82$     13.76$     14.78$     15.88$     17.07$     18.36$     19.75$     21.27$     22.91$      PERS 24.43$     27.79$     30.53$     33.49$     36.41$     39.07$     41.28$     43.89$     45.17$     47.17$      Salary Savings (On Going)(0.84)$      (0.86)$      (0.89)$      (0.92)$      (0.95)$      (0.98)$      (1.01)$      (1.05)$      (1.07)$      (1.10)$       Salary Savings (One‐Time)(1.34)$      ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           SUBTOTAL PERSONNEL SERVICES EXPENDITURES 123.56$   130.45$   135.39$   141.09$   146.85$   152.49$   157.82$   163.70$   168.40$   173.99$    Supplies and Services 14.21$     15.49$     16.73$     18.07$     19.34$     19.72$     20.12$     20.52$     20.93$     21.35$      Utilities 5.06$        5.32$        5.58$        5.86$        6.15$        6.46$        6.79$        7.12$        7.48$        7.85$         Other Expenses 0.64$        0.66$        0.67$        0.68$        0.70$        0.71$        0.72$        0.74$        0.75$        0.77$         Equipment (Capital  not CIP)0.15$        0.15$        0.15$        0.16$        0.16$        0.16$        0.16$        0.16$        0.16$        0.16$         Transfers/Debt Service 22.94$     24.01$     23.95$     24.19$     24.48$     24.91$     25.26$     25.60$     25.97$     21.23$      Capital  Improvement Projects ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           Non‐CIP Project Expenditures 0.02$        0.02$        0.02$        0.02$        0.02$        0.02$        0.02$        0.02$        0.02$        0.02$         SUBTOTAL OTHER EXPENDITURES 43.03$     45.65$     47.10$     48.98$     50.84$     51.98$     53.06$     54.17$     55.31$     51.38$      NEW DEVELOPMENT EXPENDITURES 4.0 Truck Staffing for Millenia and Bayfront ‐$         1.86$       1.97$       2.08$       4.38$       4.60$       4.82$       5.05$       5.27$       5.51$        Peace Officer Funding ‐$         0.76$       1.61$       2.55$       3.59$       4.71$       5.91$       7.22$       8.60$       10.10$      Millenia Parks Maintenance ‐$         0.08$       0.08$       0.08$       0.08$       0.08$       0.08$       0.08$       0.08$       0.08$        Fire Station Supplies and Services ‐$         0.16$       0.16$       0.16$       0.32$       0.32$       0.32$       0.32$       0.32$       0.32$        SUBTOTAL NEW DEVELOPMENT EXPENDITURES ‐$          2.86$        3.82$        4.87$        8.36$        9.71$        11.12$     12.67$     14.26$     16.01$      TOTAL EXPENDITURES 166.59$   178.96$   186.31$   194.93$   206.06$   214.18$   222.01$   230.53$   237.97$   241.38$    TOTAL GENERAL FUND SURPLUS/(DEFICIT)‐$          (7.24)$      (10.42)$    (14.47)$    (21.52)$    (25.08)$    (28.22)$    (32.01)$    (34.58)$    (37.35)$     SURPLUS/(DEFICIT) AS % OF BUDGET 0%‐4%‐6%‐7%‐10%‐12%‐13%‐14%‐15%‐15% ADMINISTRATIVE ACTIONS FY 2018 FY  2019 FY  2020 FY  2021 FY  2022 FY  2023 FY  2024 FY 2025 FY  2026 FY  2027 Utility Savings through Measure  P Projects ‐$          0.83$        1.65$        1.65$        1.65$        1.65$        1.65$        1.65$        1.65$        1.65$         Citywide Transition to Paperless Operations ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           ‐$           TOTAL ADMINISTRATIVE ACTIONS ‐$          0.83$        1.65$        1.65$        1.65$        1.65$        1.65$        1.65$        1.65$        1.65$         SURPLUS/(DEFICIT) WITH ADMINISTRATIVE ACTIONS ‐$          (6.42)$      (8.77)$      (12.82)$    (19.87)$    (23.43)$    (26.57)$    (30.36)$    (32.93)$    (35.70)$     ATTACHMENT E FY2018 City of Chula Vista Proposed Budget DEBT CAPACITY  The City anticipates completing a comprehensive  Benchmarking and Measuring Debt Capacity in the  next year.  This will identify the City’s ability to  manage its existing debt payments into the future and  determine if new debt is feasible. The City currently  has four outstanding Certificates of Participation that  are funded with General Fund contributions, Public  Facilities Development Improvement Funds (PFDIF),  and/or the Residential Construction Tax Funds (RCT).   The 2002 Certificates of Participation (COPS) were  issued in the amount of $60.145 million to fund the  City’s Police Facility.  The 2004 COPS were issued in  the amount of $37.24 million to fund the Civic Center  Phase I improvements as well as the Western Chula  Vista Infrastructure projects.  The 2006 COPS were  issued in the amount of $20.325 million to fund the  Civic Center Phase II improvements as well as Nature  Center Improvements.  The 2010 COPS were issued in  the amount of $29.355 million to fund the Civic Center  Phase III improvements as well as to refund $16.5  million of the Corp Yard 2000 COPS.  In 2014, the 2002  COPS were refunded by the 2014 COPS in the amount  of $45.92 million.  In 2015, the 2004 COPS and part of  the 2006 COPS were refunded by the 2015 COPS.   Total annual debt service payments are approximately  $9.2 million consisting of approximately $3.1 million in  General Fund contributions, $5.5 million in PFDIF, and  approximately $0.6 million in RCT funds.  The City  recently completed refundings of the remaining 2006  COPS and the 2010 COPS in July 2016 which will  generate savings of approximately 9.3% and lower the  annual debt service amounts.  In addition, the City  refunded all outstanding Tax Allocation Bonds in July  2016 which will generate savings of 12.3% for the  taxing entities and increase property tax revenue for  the City.      POTENTIAL SOLUTIONS TO RESOLVE  STRUCTURAL OPERATING DEFICIT  The ten year projections indicate a high likelihood of  future structural deficits.  Cost increases are outpacing  revenue growth throughout the forecast period.   Below are possible actions that could be undertaken in  order to bridge the funding gap.     Technology – One option for the City to overcome  its structural deficit is to identify and purchase  technology that provides a positive return on its  public investment.  Technology can increase  service levels to the constituents without raising  costs to the City (ex. Third Party Mobile  Applications), it can create new revenues to the  City that exceed its costs, or it can reduce costs  overall through the replacement of manual  processes (ex. provide more services with the  same amount of staff).     Efficiency – Similar to technology, efficiencies can  be achieved by changing “how we do things.”  The  City encourages its employees to take part in the  Lean Academy which teaches employees how to  take an existing activity, and through a series of  steps, transform it into a more efficient time and  money saving process.  Combining a lean process  with technology, utilized affectively, could  dramatically improve the City’s fiscal condition.   The City is currently looking into converting many  of its fleet to electric vehicles to create efficiencies  in our mechanic shop since electric vehicles  require less maintenance as well as creating fuel  and insurance savings.     Use of One‐Time Funds – Many cities adopt use of  one‐time funds policies so that as grants,  donations, and unexpected revenues are received,  the funds are allocated to the highest priority in  the City automatically.  A typical one‐time funds  policy would first allocate additional revenues to a  reserve fund until the minimum required reserve  is met, then perhaps pension stabilization fund, a  vehicle and equipment replacement fund, and  finally a comprehensive asset management  program.  Other potential uses of one‐time funds  include projects and services that create ongoing  revenue streams (ex. solar projects, business  attraction incentives, etc.).     Public Private Partnerships – Public private  partnerships can take a variety of forms.  One  great example of this partnership currently taking  place in the City of Chula Vista is within the City’s  library system. Several non‐profit organizations  partner with the City to provide services to the  public at local libraries at low or no cost.   Expanding these partnerships citywide could  create new money saving opportunities for the  City as employees of non‐profit organizations  could serve as an extension of City staff.  Non‐ Profit organizations have strengths in fund raising,  ATTACHMENT E FY2018 City of Chula Vista Proposed Budget tax status, and volunteers that make many  services much cheaper to provide to the public  than for a local government.  Other creative  public‐private partnerships that have been used  by other cities include adopt‐a‐park programs  where citizens or local organizations volunteer to  maintain or rehabilitate an existing park (ex. Living  Coast Discovery Center, Olympic Training Center).     Internship/Volunteer Programs – Many public and  private organizations utilize volunteers and  internships to support staff with one time  projects, special events, research, and analysis.   While these individuals do not perform day‐to‐day  duties of our current employees, they are able to  add value without significant cost.  If managed  properly, a robust internship/volunteer program  can create significant financial benefits to the City.   At the same time, the individuals receive valuable  experience and skills that can make them more  attractive when seeking full time employment.     Contract Services – Cities commonly contract out  for a variety of services including but not limited  to: legal; engineering; financial; and specialty  services typically in cases where the City does not  possess the in‐house expertise to perform the  function most efficiently.       Service levels – Service level can be defined simply  as the quantity and quality of the services  provided by a City.  As economic cycles occur and  City revenues rise and fall, the most difficult job  for a City is to maintain service levels.  The  structural deficit detailed in the ten year forecast  demonstrates the severity of the projected fiscal  condition of the City and the importance of  balancing service levels with financial resources.   In conjunction with priority based budgeting  detailed below, the City should first undertake a  comprehensive review of all services provided.  By  defining these services and setting a minimum  standard for the delivery of those services a  model could be developed that prioritizes where  potential reductions in service level could take  place with the least overall impact to the citizens  of Chula Vista.     Changing our Service Delivery Model – In order to  balance the City’s budget in future years, a change  in the service delivery model may be required  within some divisions or departments.  This is  different than simply contracting out or reducing  service levels, but rather emphasizes trying a new  way to deliver services currently provided to our  constituents.  A recent example would be the  purchase of a mobile application that citizens can  use to notify the City of items requiring  maintenance throughout the City.  Prior to the  mobile application citizens would have to call or  email the City, which is less efficient than the  mobile application currently used.  The City should  review how other governmental agencies are  providing services to determine if any new and  innovative service delivery models exist that can  be implemented to offset future cost increases.        Fees/Cost Recovery – In general, local  governments provide many services to the  general population at no charge (ex. Police, Fire,  Road Maintenance, Park Maintenance, etc.).   These services are paid for with general revenues  that the City receives including sales tax, property  tax, and a variety of other smaller general  revenues.  Cities also provide many services that  are a specific benefit to the party requesting the  service.  Reviewing development plans, inspecting  buildings, renting a park space, etc. are all  examples of services the City provides that are  paid directly by a citizen or developer.  The City’s  current master fee schedule was adopted to set  the fees for all services the City provides directly  to a citizen or developer.  In practice fees should  be set to recover all costs.  Some services are  subsidized by the City in order to encourage  participation in a program or event.  It is  important to review all subsidized fees  periodically to assess the feasibility of continuing  to subsidize these services in the future.         Priority Based Budgeting – During the recession  the City put together a Fiscal Recovery Plan.  The  plan detailed the steps necessary to navigate  through the worst recession in over eighty years  by prioritizing divisions and functions and making  reductions where necessary in order to balance  the budget.  By taking a bottom up approach, as  discussed in the service levels section, the City  could review and classify all services by priority in  order to identify functions and programs that can  ATTACHMENT E FY2018 City of Chula Vista Proposed Budget be restructured either through attrition or  reorganization.  Some finance officers refer to this  as “zero based budgeting” because it starts with a  blank budget and funds are allocated in priority  order until all funds are allocated.     Competitive Purchasing – The City’s Municipal  Code and Charter set competitive bidding  requirements on materials, supplies, equipment,  and services that the City procures.  The minimum  threshold of those competitive requirements  starts at $10,000 for a single purchase.  The  reason that cities have minimum bidding  thresholds is because at some point it becomes an  administrative burden to try and get quotes or  bids on smaller dollar items.  With more powerful  online procurement tools, the City now has the  ability to get bids extremely efficiently.   Procurement cards also provide incentives and  negotiated pricing when the City uses them for  purchases.  Consideration should be made to  lower the bidding threshold for certain types of  purchases in order to achieve the highest value  added procurement program possible.  Other  procurement related money saving ideas include  purchasing manufacturer refurbished items, floor  models, certified pre‐owned, and alternative  product selection (higher value, lower cost).     Municipal Code/Charter Updates – The City’s  Municipal Code and Charter lay out the specific  terms in which the City must operate.  Some areas  of the code and Charter are very specific, while  other are more general, allowing for some  flexibility to City staff when dealing with unique  situations.  Cities must follow all federal and state  laws and codes, but Charter cities such as Chula  Vista may impose stricter rules and requirements  upon which the City is governed.  Some of these  rules require greater resources to be spent in  order to remain in compliance as compared to  more lenient state laws.  A thorough review of the  existing Charter and Municipal Code may be  reveal potential money saving opportunities that  could be recommended to Council for  consideration.    POTENTIAL SOLUTIONS TO RESOLVE  STRUCTURAL INFRASTRUCTURE DEFICIT  Revenue Measures (Sales Tax, Property Tax) – The  City’s assets continue to age and will require  additional repair and rehabilitation in the coming  decade and beyond.  Measure P, passed in November  2016 will provide much needed funding for a  significant portion of the City’s Asset Management  Program over the next ten years.      Many of the solutions mentioned in the operating  section overlap into the infrastructure section.  These  include Public/Private Partnerships, Competitive  Purchasing, Use of One‐Time Funds, and Service  Levels.    CONCLUSION  In order to preserve and maintain the valuable  resources and quality of life the citizens have enjoyed  over the years, the City will need to make a concerted  effort to adopt several of the solutions mentioned  above.  Proactive planning and a commitment to a  fiscally sustainable service delivery model will be  required.        ATTACHMENT E Council Information Items February 3, 2017 ATTTACHMENT F INFORMATION ITEMS DISTRIBUTED (February 3, 2017) DATE TYPE OF AUTHOR NAME OF DOCI WHERE FILED DOC. 2/3/17 Info Memo David Bilby, Finance CALPER5 Circular Letter - Discount RateDirector Change Original in Chron File j:admin\council info itemslmaster info item Iog,doc ATTTACHMENT F CI'IY OF CHULA VISTA FINANCE DEPARTMENT DATE:February 3, 2017 TO: VIA: FROM: SUBJECT: Honorable Mayor and City Council Gary Halbert, City Manager 1 /,Maria Kachadoorian, Deputy City Manage /[ David Bilby, Director of Finance CALPERS CIRCULAR LETTER - DISCOUNT CHANGE RATE On December 21st, 2016 the CalPERS Board of Directors decided to lower the expected rate of return (discount rate) on future investments from 7.5% to 7.0% over the next few years. This change will result in higher unfunded pension liabilities resulting in higher annual payments. We are projecting that the annual budgetary impacts to the General Fund will be significant over the next 10 years. Combining the normal costs with the unfunded liability payments, as discussed in this memo, the City will pay up to 45% more or an additional $11 million more annually in pension payments beginning in FY 2021 and this is projected to significantly increase through FY 2027. As a member of the CalPERS retirement system, our retirement benefits are based on a shared responsibility between CalPERS, the City, and its employees. CalPERS makes many assumptions (also called Actuarial Assumptions) to calculate the cost of retirement for its members. The major assumptions include mortality rate, or how long we are projected to live, return on investments (stocks, bonds, real estate, etc.), and risk/volatility which is how much loss CalPERS can take on their investments before they jeopardize their ability to make promised retirement benefit payments to retirees. While the change in the expected rate of return from 7.5% to 7% may not sound like much of a change, when you compound that rate reduction over a period of 20+ years it results in a 30-40% increase in our City's unfunded pension liability ATTTACHMENT F Council Information CalPERS Circular Letter January 24, 2017 Page 2 of 2 (what we owe CalPERS for benefits already earned by employees/retirees). This will result in the City's unfunded pension liability increasing by approximately $100 million. As of June 30, 2015, the City had an unfunded pension liability of $261 million. We anticipate this number growing to $300 million as of June 2016 because of the poor investment return (0.6% vs. 7.5% assumed rate) by CalPERS in fiscal year 2016. With the CalPERS reduction of their expected rate of return to 7% over the next three years, we anticipate that the City's unfunded pension liability will grow to over $400 million dollars. The annual CalPERS pension cost to the City is the sum of the current or "normal" costs of active employees and the cost of paying the unfunded pension liability over a 20 year period. We anticipate total pension costs rising from approximately 30% of salaries to over 60% of salaries over the next ten years for public safety employees and over 40% for miscellaneous employees. This has been confirmed by our independent Actuarial Consultant, Bartel & Associates. We have included these new calculations within our Long Term Financial Plan which will be presented to City Council at a workshop on March 2nd, 2017. Employees will be impacted based upon their employment Tier. PEPRA employees (Tier 3) are required to contribute 50% of their normal pension costs. As CalPERS makes the rate of return reduction over a period of years, we anticipate that Tier 3 required employee contributions will grow. The performance of CalPERS investments over the next three years will impact the cost for employees and employers in the system. If CalPERS meets existing investment assumptions over the next three years, Tier 3 normal retirements costs may likely increase by approximately 2% resulting in an additional 1% cost to Tier 3 employees. Tier 1 & 2 employees do not have a 50% share requirement. We will provide periodic updates to the City Council on the status of the pension. If you have any questions, please feel free to contact David Bilby at ext. 3818 Attachments: CalPERS Circular Letter dated January 19, 2017 ATTTACHMENT F qk. CalPERS Actuarial Circular Letter California Public Employees' Retirement System P.O. Box 942715 Sacramento, CA 94229-2715 (888) CalPERS (or 888-225-7377) TTY: (877) 249-7442 www.calpers.ca.gov January 19, 2017 Circular Letter: 200-004-17 Distribution: V] To:All Public Agency Employers Subject: Discount Rate Change The purpose of this Circular Letter is to inform you of recent changes to the CalPERS discount rate assumption and the impact these changes are expected to have on required employer and PEPRA member contributions. This Circular Letter will assist you in calculating projected pension cost increases in future years. The June 30, 2016, annual valuations will provide updated projections of expected future year pension contributions. These reports will be available this summer. At the December 21, 2016, meeting, the CalPERS Board of Administration approved lowering the CalPERS discount rate assumption, the long-term rate of return, from 7.50 percent to 7.00 percent over the next three years. This will increase public agency employer contribution costs beginning in Fiscal Year 2018-19. The phase-in of the discount rate change approved by the Board for the next three Fiscal Years is as follows: Fiscal Year Valuation Date for Required Contribution Discount Rate June 30, 2016 2018-19 7.375% June 30, 2017 2019-20 7.25% June 30, 2018 2020-21 7.00% Lowering the discount rate means plans will see increases in both the normal costs (the cost of pension benefits accruing in one year for active members) and the accrued liabilities. These increases will result in higher required employer contributions. In addition, active members hired after January 1, 2013, under the Public Employees' Pension Reform Act (PEPRA) may also see their contribution rates rise. ATTTACHMENT F Circular Letter: 200-004-17 January 19, 2017 The benefits of reducing the discount rate include: Strengthening long-term sustainability of the fund Reducing negative cash flows; additional contributions will help to offset the cost to pay pensions Reducing the long-term probability of funded ratios falling below undesirable levels Improving the likelihood of CalPERS investments earning our assumed rate of return Reducing the risk of contribution increases in the future from volatile investment markets Results Employer contribution increases as a result of the discount rate changes are estimated below by Normal Cost and required Unfunded Accrued Liability (UAL) payment. The Total Employer Contribution is the sum of the Normal Cost Rate applied to reported payroll plus the Unfunded Accrued Liability payment. The Normal Cost portion of the Employer Contribution is expected to increase by the listed percentages of payroll. Increases to the UAL payments are provided as relative increases to be applied to the projected UAL payments in the June 30, 2015, valuation report. Normal Cost UAL Payments Fiscal Year Misc. Safety Misc. Safety Valuation Date Impact Plans Plans Plans Plans 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 0.25% - 0.75% 0.5% - 1.5% 1.0% - 3.0% 1.0% - 3.0% 1.0% - 3.0% 1.0% - 3.0% 1.0% - 3.0% 0.5%- 1.25% 1.0%- 2.5% 2.0% - 5.0% 2.0% - 5.0% 2.0% - 5.0% 2.0% - 5.0% 2.0% - 5.0% 2% - 3% 4% - 6% 10% - 15% 15% - 20% 20% - 25% 25% - 30% 30% - 40% 2% - 3% 4% - 6% 10% - 15% 15% - 20% 20% - 25% 25% - 30% 3O% - 40% The changes to the Unfunded Accrued Liability (UAL) due to changes of actuarial assumptions are amortized over a fixed 20-year period with a 5-year ramp up at the beginning and a 5-year ramp down at the end of the amortization period. The 5-year ramp up means that the payments in the first four years of the amortization schedule are 20 percent, 40 percent, 60 percent and 80 percent of the ultimate payment, which begins in year five. The 5-year ramp down means that the reverse is true and the payments in the final four years are ramped down by the above percentages. A new ramp is established with each change to the discount rate. There will be three ramps established in the first three years. As a result of the 5-year ramp up and effective date of the increase, it will be seven years until the full impact of the discount rate change is completely phased in. The shaded rows above are the expected increases beyond the five year projection quoted in your June 30, 2015, valuation report. Page 2 of 3 ATTTACHMENT F Circular Letter: 200-004-17 January 19, 2017 To illustrate how this table can be used as a guide to include the change in the discount rate in the calculation of pension contributions, a Miscellaneous plan with a current normal cost of 15 percent of payroll can expect an increase to 15.25 percent to 15.75 percent of payroll in the first year (Fiscal Year 2018-19), and 16 percent to 18 percent in the fifth year (Fiscal Year 2022 23). For the UAL payment, a plan with a projected payment of $500,000 in Fiscal Year 2018-19 and $600,000 in Fiscal Year 2022-23 can expect the revised payment to be $510,000 - $515,000 ($500,O00x2.00%/$SOO,OOOx3.00%) for Fiscal Year 2018-19, and $720,000 - $750,000 ($600,O00x20%/$600,OOOx25%) for Fiscal Year 2022-23. These estimated increases incorporate both the impact of the discount rate change and the ramp up. Please keep in mind the above table is a tool for you to calculate broad estimates and should only be used as a general guide. The annual valuation report that will be released this summer will provide updated projections for your specific plan. If you have any questions about the information provided or how to apply it to your current valuations, please call our CalPERS Customer Contact Center at 888 CalPERS (or 888 225-7377) and ask to have your plan actuary contact you. Scott Terando Chief Actuary Page3of3 ATTTACHMENT F FY2018 City of Chula Vista Proposed Budget Attachment G Chula Vista General Operating Budget in thousands(000) FY 15-16 Actual Expenditures $143,769 FY 16-17 Adopted Budget $146,421 FY 17-18 Proposed Budget $166,587 % Change FY 16-17 to FY17-18 13.7% General Fund Expenditure Summary The General Fund Proposed Operating Budget for fiscal year 2017-18 totals $166.6 million, which reflects an increase of $20.1 million (13.7%) when compared to the fiscal year 2016-17 adopted budget. Capital improvement projects will be funded by the Measure P commitment. The General Fund Proposed Budget is balanced. The City defines a budget as balanced when the amount of budgeted expenditures is equal to or less than the amount of budgeted revenues plus other available sources. The General Fund includes funding for programs and services supported by the City Council in previous fiscal years. The fiscal year 2017-18 Proposed Budget sustains previous service levels and provides funding for 5.0 new Peace Officers within the Police Department’s Community Patrol division. The City’s General Fund reflects positive growth in its major revenue sources. However, during the development of the baseline budget, the assumed revenue growth was not sufficient to close a $4.3 million budget gap that was identified in the initial stages of the budget development process. This gap required various departmental budget reductions and identification of additional revenue sources in order to balance the fiscal year 2017-18 Proposed Budget. Despite the challenges of having to balance a $4.3 million budget gap, fiscal year 2017-18 will mark the first full fiscal year that City residents will benefit from the infrastructure projects funded as a result of the passage of Measure P. Measure P – a temporary, ten- year, half-cent sales tax funding is dedicated to funding high priority infrastructure, fleet replacement, technology and other capital equipment resources. The fiscal year 2017-18 Proposed Budget contains $16.3 million of additional Measure P funding which comprises the majority of the increase in the General Fund budget for fiscal year 2017-18. A comparison of the fiscal year 2017-18 proposed budget, the fiscal year 2016-17 adopted expenditures, and the fiscal year 2015-16 actual expenditures are summarized in the following table. General Fund Expenditure Summary In Thousands (000) Description FY 2015-16 Actual FY 2016-17 Adopted FY 2017-18 Proposed Change Personnel Services 112,647$ 118,623$ 123,556$ 4,933$ Supplies and Services 16,322$ 14,114$ 14,214$ 100$ Other Expenses 703$ 559$ 642$ 83$ Capital 505$ 1,595$ 150$ (1,445)$ Transfers Out 6,775$ 5,999$ 22,943$ 16,944$ Non-CIP Project Expenditures 359$ 19$ 19$ -$ Utilities 4,850$ 5,512$ 5,063$ (449)$ Total Operating Budget 142,161$ 146,421$ 166,587$ 20,166$ CIP Project Expenditures 1,607$ 40$ -$ (40)$ Total General Fund Budget 143,768$ 146,461$ 166,587$ 20,126$ FY2018 City of Chula Vista Proposed Budget Attachment G MAJOR EXPENDITURE CHANGES BY CATEGORY  The Transfers Out category accounts for the largest increase in the General Fund at $16.9 million. This increase is largely due to the $16.3 million transfer for the voter approved Measure P Sales Tax revenues. The General Fund serves as a pass- through for these revenues and this expenditure represents the transfer of funds to the Measure P Sales Tax Fund. These revenues will be used to fund specific infrastructure projects and equipment purchases throughout the City. The Transfers Out category also includes a $0.8 million increase to the Public Liability fund as a result of increased claims activity. These increases are partially offset with a decrease in a transfer out for the capital lease of fire apparatus, which will be paid from Measure P funding.  The Personnel Services category reflects an increase of $4.9 million and assumes a 2% increase for estimated inflation. A breakdown of the personnel services category changes include: • $2.8 million increase in budgeted Salaries - this increase reflects the annualized cost of wage increases approved by the City Council during fiscal year 2016-17, an estimated 2% wage inflation for all employee groups in fiscal year 2017-18, step increases, and the addition of 4.5 FTE. • $1.3 million in Worker’s Comp charges, based on increased costs in the Workers Compensation Fund. • A $0.7 million increase for retirement costs which reflects the increased contribution rates based on the June 30, 2015 valuation report from CalPERS. • The proposed budget reflects a $0.5 million increase in budgeted overtime when compared to prior year adopted budget. This increase is due to the annualized cost of approved wage increases, estimated wage inflation, and an increase in the Police Departments reimbursed overtime to bring it in line with anticipated actuals. • The above increases were offset with a net increase of $0.4 million in budgeted salary savings. The fiscal year 2017-18 budget reflects $2.2 million in budgeted ongoing ($0.8) million and ($1.4) million of one-time salary savings. One-time salary savings was submitted by various departments as part of their department budget reductions. • Not reflected in the Personnel Services category are 12 Fire crew personnel that would be added if the City successfully receives the SAFER grant which was approved for submission by the City Council. The anticipated costs for fiscal year 2017-18 are estimated at $0.7 million. If the City is not awarded the grant funds, the City Manager will bring forward a mid-year budget amendment to add 12 Fire crew personnel and identify the budget adjustments necessary to maintain a balanced budget.  The Supplies and Services expense category increased by $0.1 million when compared to the fiscal year 2016-17 budget. Overall, the Supplies and Services budget remained relatively unchanged from the fiscal year 2016-17 adopted budget as the changes to this category were offsetting, reflecting efforts to fund mandatory cost increases for fiscal year 2017-18. Among the changes made was a $0.6 million increase for various contractual obligations that included the following: • NPDES storm drain maintenance costs • Additional park maintenance costs for Stylus Park and Orange Park • Increased street sweeping costs • Increased information technology security services • Increased regional radio communication charges • Additional capture services from the City’s sales tax consultant for monitoring Measure P sales tax collections This increase was offset by reductions in other Supplies and Services expenditures that were necessary in order to balance in the budget. These reductions are as follows: • A $0.15 million decrease in fleet maintenance charges • A $0.1 million decrease in attorney services • A $0.1 million decrease in software maintenance fees • $0.1 million decrease in construction materials, building and automotive FY2018 City of Chula Vista Proposed Budget Attachment G maintenance services  The Other Expenses category is increasing by $0.1 million for the City’s share of the cost related to the Otay Valley Regional Park and credit card service charges.  The Utilities expense category has been decreased by a net $0.4 million when compared to the fiscal year 2016-17 adopted budget. Departmental Utility budgets have been adjusted to reflect projected expenditures for fiscal year 2017-18 based on expected rate increases and projected savings as a result of energy efficiency projects.  The Capital expenditures category reflects a decrease of $1.4 million due to the one-time acquisition and outfitting costs for two fire engines budgeted in the previous fiscal year but not carried forward into the fiscal year 2017-18 budget. General Fund Expenditures by Category Fiscal Year 2017-2018 Note: Personnel Services accounts for 74.2% of General Fund expenditures in the fiscal year 2017-18 proposed budget. General Fund Expenditures History by Category Fiscal Year 2013 through 2017 Health Benefits, 7% Other Personnel Expense, 4% Supplies and Services, 9% Other Expenses, Less than 1% Capital, Less than 1% Transfers Out, 14% CIP Project Expenditures, 1% Non-CIP Project Expenditures, Less than 1% Utilities, 3% Salaries, 42% Hourly Wages, 2% Overtime, 4% Retirement Benefits, 15% FY2018 City of Chula Vista Proposed Budget Attachment G $- $50 $100 $150 $200 FY14 Actual FY15 Actual FY16 Actual FY17 Adopted FY18 ProposedMillions Personnel Services Supplies and Services Other Expenses Capital Transfers Out CIP Project Expenditures Non-CIP Project Expenditures Utilities FY2018 City of Chula Vista Proposed Budget Attachment G General Fund Expenditure by Department Fiscal Year 2017-2018 Note: The chart above does not reflect net cost of each department, only their expenditure allocations. The following chart reflects the “Other” department costs included in the previous chart that includes the $42.7 million of the General Fund department budget expenditures. General Fund Expenditure by Department (Other Department Detail – totals $42.7 million) Fiscal Year 2017-2018 Note: The chart above does not reflect net cost of each department, only their expenditure allocations. Fire, 17% $27.8M Public Works Operations, 11% $17.9M Police, 32% $53.3M Non-Departmental, 15% $24.9M Other - reflected on chart below, 26% $42.7M Boards and Commissions, Less than 1% City Clerk, 1% City Council, 1% Human Resources, 2% Development Services, 2% Economic Development, 1% Engineering & Capital Projects, 5% City Attorney, 2% Administration, 1% Animal Care Facility, 2% ITS, 2% Library, 2% Finance, 2% Recreation, 3% FY2018 City of Chula Vista Proposed Budget Attachment G STAFFING LEVELS As revenue levels have improved, the City has continued the trend of slowly recovering its staffing levels previously reduced as a result of the Great Recession. Since fiscal year 2013-14, the City has been able to achieve a 4.6% increase in staffing. This increase in staffing is over all funds, and manages to slightly exceed a 3.7% population increase over the same period of time. Staffing for Community Services and the Development and Maintenance Services categories have grown by 2.6% and 7.1% respectively from 2013-14. Staffing for the Legislative and Administrative service category has remained flat with no change over the same period of time. Public Safety staffing levels have increased by 4.1% – this increase includes the addition of various grant funded positions. Budget constraints necessitated the net elimination of 331.4 full time equivalent (FTE) positions from the City’s peak employment of 1,263.75 FTEs during fiscal year 2006-07. The last major reduction occurred in 2011 and was carried forward into the fiscal year 2012-13 budget. As shown in the following graph, the number of FTEs per thousand per capita has remained relatively unchanged since fiscal year 2013-14. Staffing Level Fiscal Year 2013-2014 to Fiscal Year 2017-2018 Council Adopted Budget FY 13-14 FY 14-15 FY 15-16 FY16-17 FY17-18 % Chg. Legislative and Administrative 105.00 106.00 111.00 105.00 105.00 0.0% Development and Maintenance 312.50 315.75 316.25 335.25 334.75 7.1% Public Safety 494.00 500.50 498.50 504.50 514.50 4.1% Community Services 38.50 38.50 39.50 39.50 39.50 2.6% Total City Staff 950.00 960.75 965.25 984.25 993.75 4.6% City of Chula Vista Staffing (FTEs) Compared to FTEs per Thousand Residents 3.7 3.7 3.7 3.7 3.8 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0 200 400 600 800 1,000 1,200 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FTE/1,000 FTE Total FTE's FTE's/1000 FY2018 City of Chula Vista Proposed Budget Attachment G SALARY ADJUSTMENTS During the economic recession the City’s bargaining groups worked with City management to reach new agreements that reduced personnel costs in an effort to balance the budget. The adjustments to employee compensation included wage concessions and pension reform. The City granted salary increases to its employee bargaining groups as the City began to see revenue improvements. However, ongoing increases in retirement and health premium costs (discussed in the following sections), have strained the City’s ability to provide wage increases to its employees. The proposed budget includes funding for the annualized costs of negotiated salary increases approved for employee groups during the 2016-17 fiscal year. The proposed budget also reflects an estimated wage inflation of 2% for all employee groups for fiscal year 2017-18. At the time of the development of the proposed budget, the City was in negotiations with the Police Officers’ Association and the International Association of Firefighters. Agreements were reached with these groups during the final development of the budget. Any additional impact as a result of the agreements reached with these two labor groups and any agreements attained with the other City’s labor groups after adoption of the budget will be brought forward for Council approval. RISING RETIREMENT COSTS The increase in retirement costs driven by rising CalPERS contributions is a significant budgetary challenge facing the City. The payments estimated to be made to the retirement system equal 16.2% of the City’s General Fund in the fiscal year 2017-18 proposed budget. Increases in CalPERS contributions can be attributed to several factors. In the early 2000’s the City approved enhanced formula benefits for all City employees. During the economic downturn, the City approved an early retirement incentive to encourage employees to retire thereby reducing the number of layoffs, but this came at the expense of increasing the City’s payment to CalPERS. The impact of retirement cost increases were partially offset through negotiations with City’s bargaining groups that resulted in the implementation of pension reform. Under the negotiated pension reform, employees agreed to pay their share of pension costs and thereby provided a one-time base level of employee retirement payments. However, this action did not reduce future cost increases. During this same time period, CalPERS experienced significant investment losses. Over the last several years, CalPERS has made a series of changes that have resulted in higher contribution rates. Prior to fiscal year 2005-06, the CalPERS investment pool assumed a rate of return of 8.25% and any market gains (or losses) less than that amount would significantly affect the City’s overall contribution rate. In fiscal year 2005-06, CalPERS adjusted their investment return assumption to 7.75%. In 2012, the CalPERS Board of Administration approved a recommendation to lower the rate of investment return assumption from 7.75% to 7.50%. On December 21, 2016, the CalPERS Board of Directors decided to lower the rate of return assumption from 7.5% to 7.0% beginning in fiscal year 2018-19. CalPERS is implementing this change for the following reasons: • Strengthening long-term sustainability of the pension fund • Reducing negative cash flows; additional contributions will help to offset the cost to pay pensions • Reducing the long-term probability of funded ratios falling below undesirable levels • Improving the likelihood of CalPERS investments earning the assumed rate of return • Reducing the risk of contribution increases in the future from volatile investment markets • Allows for reduced portfolio risk consistent with the new risk mitigation policy In addition, as outlined in their June 15, 2015 valuation report to the City, beginning in fiscal year 2017-18, CalPERS will collect employer contributions toward the plan’s unfunded liability as dollar amounts instead of the prior method of a contribution rate. This change will address potential funding issues that could arise from a declining payroll or reduction in the number of active members in the plan. Funding the unfunded liability as a percentage of payroll could lead to the underfunding of the plans. Although employers will be invoiced at the beginning of the fiscal year for their unfunded liability payment, the plan’s normal cost contribution will continue to be collected as a percentage of payroll. FY2018 City of Chula Vista Proposed Budget Attachment G The CalPERS Board of Administration also adopted a Risk Mitigation Policy which is designed to reduce funding risk over time. The policy establishes a mechanism whereby CalPERS investment performance that significantly outperforms the discount rate triggers adjustments to the discount rate, expected investment return and strategic asset allocation targets. A minimum excess investment return of 4% above the existing discount rate is necessary to cause a risk mitigation event. The policy has no impact on the current year valuation results but is expected to have an impact in future years. The budgetary impacts caused by the increased employer contribution rates for retirement costs due to lower CalPERS investment returns and corrective policy changes, have been significant and will continue to challenge the City in future years. To follow is a series of charts related to pension costs. The first chart depicts the actual market rates of return for the CalPERS investment portfolio relative to the assumed 7.5% rate of return. This chart will be restructured in future fiscal years to display actual rates of return for the CalPERS assumed rates as they are updated. The second chart reflects actual CalPERS costs in the General Fund for fiscal years 2014 to the 2016-17 Adopted budget and the 2017-18 Proposed Budget cost. The final chart reflects historical CalPERS contributions illustrating the employer (City) contribution rates from fiscal years 2003-04 to 2016-17 and projected rates for fiscal years 2017-18 through 2021-22. CalPERS Historical Market Value Rates of Return Relative to Assumed Investment Return of 7.5% -30.0% -22.5% -15.0% -7.5% 0.0% 7.5% 15.0% 22.5% 30.0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 FY2018 City of Chula Vista Proposed Budget Attachment G Retirement Costs (General Fund) Fiscal Years 2013-14 to 2017-18 CalPERS Employer Contribution Rates Fiscal Years 2004-05 to 2022-23 Projected Notes: 1. Reflects Employer Contribution. The actual employer contribution is higher due to Employer Paid Member Contributions (EPMC) ranging from 1.3% to 4.2%, and for applicable years an additional 8% and 9% for the Employer Paid Member Contribution (Employee Contribution). 2. Projected rates (FY 2018 through FY 2022), based on Bartel Associates, LLC report dated 02/02/2017. $17.9 $19.3 $20.9 $23.8 $24.5 $- $2.5 $5.0 $7.5 $10.0 $12.5 $15.0 $17.5 $20.0 $22.5 $25.0 $27.5 FY13-14 FY14-15 FY15-16 FY16-17 Adopted FY17-18 ProposedMillions Fiscal Year 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Miscellaneous Public Safety FY2018 City of Chula Vista Proposed Budget Attachment G HEALTH CARE COSTS Flex/Health insurance represents 7.4% of the total fiscal year 2017-18 General Fund expenditure budget and accounts for the health care costs for permanent employees. Fiscal year 2017-18 shows a slight decrease compared to the prior fiscal year adopted budget. In fiscal year 2016-17 the anticipated increase in healthcare premiums was estimated at 15%. The actual increase was lower than this estimation as a result of the City’s switch in health insurance providers from AETNA to United Healthcare UHC) in 2017. This is carried forward into the first half of fiscal year 2017-18, which results in the $0.1 million decrease in comparison to the prior year adopted budget. The fiscal year 2017- 18 proposed budget estimates a 10% increase in healthcare premiums in calendar year 2018. To follow are charts and tables reflecting the increased expenditures related to flex/health insurance. The first chart illustrates the actual Flex/Health insurance costs in the General Fund for fiscal years 2014 to 2016, the adopted budget for fiscal year 2016-17 and the proposed budget for fiscal year 2017-18. Actual Flex/Health insurance costs have increased annually and represent an ongoing challenge that the City will continue to address in future budgets. The subsequent table displays Flex Allotments by bargaining group from calendar year 2013 to calendar year 2017. Flex Allotments are the amounts provided by the City for employees to use towards the purchase of their health benefits. This allotment is negotiated between the City and each bargaining group. As illustrated by the table, costs to the City in the area of flex/health insurance have increased significantly since calendar year 2013. Flex allotment costs for 2018 were not available at the time the proposed budget was written. Flex/Health Insurance Costs (General Fund) Fiscal Years 2013-14 to 2017-18 $10.1 $10.3 $10.2 $12.5 $12.4 $- $2.5 $5.0 $7.5 $10.0 $12.5 $15.0 FY13-14 FY14-15 FY15-16 FY16-17 Adopted FY17-18 ProposedMillions Fiscal Year FY2018 City of Chula Vista Proposed Budget Attachment G Flex Allotment Increases by Bargaining Group Calendar Year 2013 to Calendar Year 2017 (1) Flex allotments remain at the 2013 amounts for all Employee Only members within the following employee groups: Confidential, Executive, Mid Managers and Professionals, Senior Managers, Western Council of Engineers, and Mayor & Council. The public safety bargaining group is not included in the preceding table as their negotiated benefits differ from the other bargaining groups. The City pays the full premium for Kaiser HMO Health Plan and Cigna DHMO pre-paid dental plan for the employee and any eligible dependents of the public safety bargaining group members. Previously public safety employees who chose a non-Kaiser HMO coverage paid a flat annual amount regardless of the number of dependents covered. However, the new labor agreements reached with public safety employees stipulate that public safety employees who choose a non-Kaiser HMO coverage will be assuming a share of the cost difference between the Kaiser premium and the non-Kaiser HMO coverage. For example, effective January 1, 2018, for any Police Officer’s Association (POA) members enrolling in a non-Kaiser HMO, the City will pay 2/3 of the premium difference, less $50 per month. International Association of Firefighters (IAFF) members hired on or after April 25, 2017 enrolling in any non-Kaiser plan are responsible to pay any amount greater than the cost of the Kaiser Plan. Employees choosing the Cigna DPPO preferred provider plan are responsible for any additional costs over and above the Cigna DHMO pre-paid plan. Due to the annual increase of flex/health insurance costs the amount the City has paid in insurance premiums have risen. As illustrated in the table below, medical premiums the City pays on behalf of public safety employees have increased by between 4% and 30% (depending on medical group elections) since calendar year 2013. Due to a switch in dental care providers, the City has seen a decrease of 14% to 15% in dental premiums over the same period of time. The following table presents the range of benefits the City provides in medical and dental insurance to public safety employees and their dependents. City Provided Public Safety Flex Benefit Ranges Calendar Year 2013 to Calendar Year 2017 (1)Dental insurance for public safety employees is fully compensated for at the DHMO level. Employees may choose PPO and pay the variance between DHMO and PPO. Bargaining Group 2013 2014(1)2015 2016 2017 2013-2017 % Change Confidential 12,386$ 13,074$ 13,524$ 13,682$ 13,760$ 11.1% Chula Vista Employees Association 11,886$ 12,574$ 13,024$ 13,182$ 13,260$ 11.6% Executive 15,162$ 15,850$ 16,300$ 16,458$ 16,536$ 9.1% Mid Managers and Professionals 12,762$ 13,450$ 13,900$ 14,058$ 14,136$ 10.8% Senior Managers 13,762$ 14,450$ 14,900$ 15,058$ 15,136$ 10.0% Western Council of Engineers 12,762$ 13,450$ 13,900$ 14,058$ 14,136$ 10.8% Mayor & Council 15,162$ 15,850$ 16,300$ 16,458$ 16,536$ 9.1% FLEX Allotment Increases by Bargaining Unit Benefit 2013 2014 2015 2016 2017 2013-2017 % Change Medical $5,436 - $16,752 $5,988 - $18,180 $5,784 - $19,848 $5,568 - $20,628 $6,408-$19,776 4% - 30% Dental(1)$168 - $396 $168 - $396 $180 - $432 $180 - $432 $192-$456 (14%) - (15%) Public Safety FLEX Benefit Ranges FY2018 City of Chula Vista Proposed Budget Attachment G Insurance Premiums Kaiser and AETNA/UHC insurance premiums have increased an average of 3.9% and 4.6% per year respectively since the beginning of calendar year 2013. As noted in the table below, Kaiser premiums have increased a total of 19.7% during this time while AETNA/UHC premiums have increased 24.5% over the same period. Premiums decreased by 3.8% in 2017 as the City switched its insurance provider from AETNA to UHC. The annual budget for Flex/Health Insurance has increased from $10.1 million in fiscal year 2013-14 to $12.4 million in the fiscal year 2017-18 Proposed Budget. Recent discussions with health care professionals indicate these high trends in health care costs are likely to continue for the foreseeable future. For fiscal year 2017-18, the proposed budget reflects an anticipated premium increase of 10% based on the preliminary information provided by the health care providers. The following table reflects the changes in health care rate premiums the City has experienced from January 2013 to January 2017. The final rate premium that will be in effect for January 2018 will not be known until late summer or early fall. Premium Increases by Health Care Provider Calendar Year 2013 to 2017 Date of Increase Kaiser AETNA/UHC January 2013 1.6% 5.5% January 2014 10.2% 8.5% January 2015 -3.4% 8.9% January 2016 -3.8% 3.8% January 2017 15.1% -3.8% Annual Average Premium Increase 3.9% 4.6% Total Premium Increase (January 2013 – January 2017) 19.7% 24.5% Total increase reflects average changes in premium costs from 2013-2017 for Kaiser and AETNA/UHC SUMMARY OF DEPARTMENT RESOURCES EXPENDITURES Personnel Expenses Salaries Hourly Wages Overtime Health Benefits Retirement Benefits Other Personnel Expense Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services Capital Utilities Transfers Out Non-Personnel Expenses Subtotal TOTAL EXPENDITURES REVENUES Licenses and Permits Use of Money & Property Revenue from Other Agencies Charges for Services Other Revenue Transfers In TOTAL REVENUES ifll\lEN(JE RECOVERY%• AUTHORIZED FULL TIME POSITIONS 10,888,273 106,910 4,334,502 2,014,714 4,130,000 1,398,643 22,873,042 1,988,270 0 204,781 47,330 2,240,381 11,417,004 62,654 4,834,095 2,017,304 4,536,411 1,457,877 24,325,345 .12;124, 788 •.•, .tli!;§_1 (5;@L ·'1,9/\Q __ i'' ::.�·2ilf9lffi i • 3;'711,03'1_, � c;_�ii82�}323 ·' _. .2,356,303'.i&� f 2,%4lff228 ··-_' 5,1e2,s70:?{5,Q'l7>B47, ·1,421,04$/. \,475,Qr!i 24,780,677 · 25,23s,1ipJL 2,049,885 ' 2,257i5.50 1' <·:'2p71,28i5" 155,311 ({;-'°.c;�150;QQQiff t1�"ff_;c ._'c�Q} 203,352 i:nt:.zQ28;;'f88Ilt%}ii£20Jl3li}i.: e 1,e20 ti'�c��l°'.62,326�f����';.�62}:l21L 2,470,168 �°=�1;�9llf06'!�;·;fi•2;534-,93f!J $25,113,423 $26,795,513 $27,478,741 $27,773,838 458,497 15,600 666,907 549,571 597,907 649,923 $2,938,405 . 12% 136.00 71 432,705 15,600 669,000 586,479 1,370,672 828,194 $3,902,650 fs%- 136.00 "137,§'19![":'i)!i37;5ij 9 : ·--•. ·.·_ ,1§;600 '!rte ,ijliT�boll;-,}CfiB!l,QDO H .. il@/QQQ !i+J/'±721'282 it _· ... J5!i4,?�1; 1.·•·•·.···?C50J'lo2 •.i1-•' 1"il¥rn�I@Ji� . iiv2,453 !l���:I�n!,453, $2,592,556 $2,872,439 10%.ftf> -- -" - Footnote: Not reflected in the Personnel Services category are 12 Fire crew personnel that would be added if the City successfully receives the SAFER grant which was approved for submission by the City Council. The anticipated costs for fiscal year 2017-18 are estimated at $0.7 million. If the City is not awarded the grant funds, the City Manager will bring forward a mid-year budget amendment to add 12 Fire crew personnel and identify the budget adjustments necessary to maintain a balanced budget. Attachment G