HomeMy WebLinkAbout2014-03-11 Item 12 - Presentation Financial Overview ���
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• Historical Overview
• FY 2015 Summary
• Long-Term Financial Planning
$200
$157.8 $161.6
$160 $M.9
$140.5
$130.8 $128.7 $130.8 $128.3
$121.7
$120
$80
$40
lD I- 00 m O N M
O O O O rl ri rl ri O
O O O O O O O O
O
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• Economic Recession
• Rising Pension Cost
• Property Tax & Sales Tax Declines
• Transient Occupancy Tax (TOT) Declines
• Loss of Development Fees
• Elimination of the Redevelopment Agency
• Power Plant — Franchise Fees - $2 . 5 m per
year
II�IIII °" �V lump I011llu V
FY 2007-08 $10.1 million Eliminated 147.5 FTE (All Funds)
• Contract Fire Communications
Services
IIIIII °" �V lump I011llu V
FY 2008-09 $4.0 million Eliminated 13.25 FTE (All funds)
• Eliminated salary increases for
management and unclassified
hourly
IIIIII °" �V lump I011llu V
FY 2009-10 $20.0 million Eliminated 100.50 FTE (All funds)
• Eliminated salary increases for
CVEA, MM/PROF, WCE
• POA/IAFF COLA deferral
• Reduced funding for Nature
Center
• Eliminated funding for Stretch &
Dash
II�IIII °" �V lump I011llu V
FY 2010-11 $10.9 million $9.6 million in one-time
revenues through loan
repayments (RDA)
IIIIII °" �V lump I011llu V
FY 2011-12 $19.6 million Eliminated 94.50 FTE (All funds)
• Employee pick-up pension
contribution
• One-time revenues of $2.6
million in Economic Contingency
Reserves used to balance budget
IIIIII °" �V lump I011llu V
FY 2012-13 $3.0 million Increased Salary Savings
• Reduce Supplies and Services
budget
• Increased reimbursement
revenues
FY 2013-14 $2.3 million • One-time use of Economic
Contingency Reserve funds
Total City Staff
1,400
1,263.75 1,248.50
1,200 1,109.50....
1,005.00 1,004.75
1,000 92475 932-.35--
800
32.35 800
600
400
200
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
, � � M� Family
soo
, uuuui .,,�e � �.m, .
000
,000 1
. 000
soo =61
ILIiiw .
25% ....
20.0%
20% ....
16.4%
14.0% 15.4%
15% .... .... .... .... .... .....1. o .% .... 14..0°.0 4,....... 0 o .... .... .... .... .... .... ....
12.4%
10% ....
7.1%
4.0%
0
2 7%.... .._ 2.2° 3..4�
1.8%
0% -]'L-F]1[1-7]
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2012 2013 2014
-0.1% °
-5% 3.8% 0.7/0
-10% ....
-10.4%
-15% ....
Chula Vista uP County Overall
� I
$35
$30 $.28.8 .... $-28-.3 $2.8.,.6 $29.3... ....
$26.7 $27.3
$26.7
$25.6
$25 $2-1
$21.4
0
15
$10
$5
$_
FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 (Proj)
1 1
• Revenues are increasing modestly
• Baseline costs of existing personnel &
services continue to outpace revenue growth
• City was at high risk due to the recent
economic downturn but is now in a more
stable financial position
i
a
Fiscal Year 2015 Baseline budget reflects :
• Property ""Fax adjuste(I "to reflect agrowth
• Sales I ax Increase of' 2% (frorn FY141. CA)
Additilon of ""F1,Y"F revenue
• Elimination of Contingency Reserve
• Increased Salaries and Wages to reflect
implementation of MOUs
• Increased retirement costs based on updated PERS
rates
• Increased Health Care costs
Revenues $ 12815051100
Expenditures $ 13117811500
Projected Deficit/Surplus $ (31276,;500)
TUT Revenues $ 316271900
Updated Deficit/Surplus $ 3511400
• Department requests for funding totaled $2 .8M;
including:
— Enhance Graffiti Abatement Program $426,600
— Additional funding for Library books and materials $100,000
(ongoing)
— Police Strategic Plan Consultant $125,000
— Minor CIP Projects $500,000
— Increase Fire Overtime $300,000
— Increase Tree Trimming $100,000
— Increase Street Sweeping $100,000
— Enhance Economic Development $176,500
— Bayfront development costs $100,000
• Available Settlement Funds total $4. 2M
• Department funding requests total $ 12 . 6M
• Funding recommendations are being reviewed
and will be included as part of the City
Manager's Proposed Budget
April 10 0 Infrastructure Workshop
April 0 Finalize Fiscal Year 2015 Proposed Budget for All Funds
April 29 and 30 • Two public workshops to provide overview of proposed budget
May 16 • City Manager Proposed Budget document submitted to Council
May 27 0 Present Fiscal Year 2014-15 All Funds Budget and CIP Overview
• Long Term Financial Plan document submitted to Council
• Council provides initial feedback and adopts City Manager Proposed
Budget as City Council Proposed Budget
May 28 • Begin 10 day public review of City Council Proposed Budget
June 3 • Council discussion of City Council Proposed Budget
June 10 0 Public Hearing and Council consideration of Adoption of Proposed
Fiscal Year 2014-15 Budget (All Funds)
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Chula Vista Fiscal Health Plan Council Supported
January 2009)— Implemented four pronged approach
to stabilize City finances
• Fiscal Recovery and Progress Plan Council Supported
in January 2012)— incorporates the Fiscal Health Plan
and highlights major issues that impact City's financial
sustainability
• Long Term Financial Plan — Will provide additional
analysis and long-term strategies to address major
issues. The goal is to achieve financial resiliency in
order to secure services to our community
• Long Term Financial Plan should include the
following steps :
1. Mobilization Phase — Prepares the organization for long-term planning
by creating consensus on what the purpose and results of the planning
process should be.
2. Analysis Phase — Designed to produce information that supports
planning and strategizing.
3. Decision Phase — After the analysis is completed, decisions are made
on how to use the information.
4. Execution Phase — After adoption of the plan, strategies are put into
action. This is where strategies become operational through the
budget, financial performance measures, and action plans.
(Millions)
Revenues $ 128.5 $ 131.5 $ 134.1 $ 136.7 $ 140.2
Expenditures $ 131.8 $ 135.3 $ 137.9 $ 140.6 $ 143.2
Surplus/(Deficit) (3.3) $ ( ) $ ( ) $ (3. ) $ ( .0)
TUT Revenue $ 3.6 $ 3.6 $ 3.6 $ 3.6 $ 3.6
Est. Pension Impact Due to Mortality Change $ - $ - $ 0.9 $ 1.2 $ 1.3
Surplus/(Deficit) w/TUTand Mortaility Impact $ 0.4 $ ( .2) $ (1.1) $ (1.4) ( . )
1% COLA Value $ 1.0 $ 1.0 $ 1.0 $ 1.0 $ 1.0
Regional Communication System (RCS) Financing $ - $ - $ 0.4 $ 0.4 $ 0.4
RCS Radios $ - $ - $ 2.5 $ - $ -
Surplus/(Deficit) with 1% COLA Value and RCS $ ( . ) $ (1.1) $ (5® ) $ (2.8) (2-0)
(1) Represents the value of a 1% COLA increase for all employees. This is just informational. Negotiations with 5 bargaining groups are currently
taking place.
(2) Does not include additional staff related to proposed development.
1
Where did we end up?
(Millions)
r
II
V
FY 2006-02 $161.6 $166.2 . $2.0
FY 2007-08 $253.9 $255.0 $6.0
FY 2008-09 $240.5 $240.5 $0.0 $6.0
FY 2009-10 $130.8 $129.9 $0.9 $6.9
FY 2010-11 $128.7 $127.3 $1.5 $8.3
FY 2011-12 $121.7 $121.5 $0.2 $8.5
FY 2012-13 $130. 1 $122.8 $2.3 $10.8
Note: Expenditures include adjustments made to fund balance.
16.0%
14.0%
12.0%
...............9.7
10.0%
8.5%
...............
8.0% 6.8% 6.7% 6.8%
6.0% 4.9%
4.3% 4.3Yo 3'o
4.0%
2.0%
millUmmmillillU UIIIMIIIMIIIMI��
0.0%
Ln (.0 r- 00 m r*4 ro
9 9 9 9 9 9
LTFP includes analysis of all funds managed by City (over 130 Funds)
• Government Funds (General Fund, PAD, DIF, RDA, Open
Space Districts, CDBG, Assessment Districts etc.)
$122 m Fund Balance
• Enterprise & Internal Service Funds (Sewer Funds,
Development Services, W/C, PLF) - $97 m (Unrestricted)
Fund balance — Includes receivables, outstanding PO's/encumbrances, restricted grant funds,
available reserves.
Unrestricted — Funds which are not permanently or temporarily restricted are classified as
unrestricted and available for the government boards to allocate.
• Est. population at build out
approx. 335,000
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• Additional population and new Ir� ....
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• Need to plan for additional
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service demands or may cause
additional budgetary stress
Self Insured Retention: $ 1.0 M
$4.0 Outstanding Claims: $19.4 M
Reserves (June 2013): $2.2 M
$3.5
$3.0
$2.5 ..................... ...........
0
$2.0
$1.5
$1.0
$0.5
$0.0
FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
M1 Claims Expense M Insurance 1110 Specialized Services 1U Permits & Fees
Self Insured Retention: $500.,000
$4.0 Outstanding Claims: $1.8 M
Reserves (June 2013): $1.9 M
$3.5 -
$3.0
$2.5
$2.0 -
$1.5
$1.0
$0.5
$0.0
FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
EQUIPMENT REPLACEMENT FUND
RESERVE LEVELS
$3.0
Critical Needs for FY 2015 = $1.1 M
$2.5
c
0
c $2.0
$1.5
$1.0
$0.5
$0.0
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
9.0% of Total FY 2014-15
HEALTH BENEFIT EXPENSES General Fund Budget
BY FISCAL YEAR Avg. Premium Inc. 7%
$14.0 approx. $ 1.0 M annually
based on current staffing
$12.0
$10.0
c $8.0
0
$6.0
$4.0
$2.0
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Est. FY 2015
Proposed
PENSION EXPENSES
BY FISCAL YEAR
$25.0 15% of Total FY 2014-15
$22.5 General Fund Budget
$20.0
$17.5
c
0
$15.0
$12.5
$10.0
$7.5
$5.0
$2.5
$_ .............._ ............... ............... ............ T............... ..............
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Est. FY 2015
Proposed
iu� I°16°11111 �I
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0
FY 2007-08 8.0% 18.3% 26.3% 261127
FY 2008-09 8.0% 18.3% 26.3% $ 26.32
FY 2009-10 8.0% 18.2% 26.2% $ 26.15
FY 2010-11 - 19.6% 19.6% $ 19.60
FY 2011-12 - 22.7% 22.7% $ 22.70
FY 2012-13 - 23.7% 23.7% $ 23.67
FY 2013-14 - 25.4% 25.4% $ 25.44
FY 2014-15 - 26.2% 26.2% $ 26.24
FY 2015-16 (Prof) - 27.7% 27.7% $ 27.70
Notes:
1) The above does not reflect EPMC.
2) Effective FY 2011 employees (Tier 1) picked up their share of pension contributions. For illustration purposes the above chart
reflects all bargaining units with the same start date, however some bargaining units contributions were phased in.
PUBLIC SAFETY
III
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V VIII
mP w MVIim
0
FY 2007-08 9.0% 22.3% 31.3% 311129
FY 2008-09 9.0% 23.9% 32.9% $ 32.94
FY 2009-10 9.0% 23.2% 32.2% $ 32.23
FY 2010-11 - 22.7% 22.7% $ 22.65
FY 2011-12 - 26.1% 26.1% $ 26.13
FY 2012-13 - 26.5% 26.5% $ 26.49
FY 2013-14 - 27.3% 27.3% $ 27.32
FY 2014-15 - 28.9% 28.9% $ 28.86
FY 2015-16 (Prof) - 30.6% 30.6% $ 30.60
Notes:
1) The above does not reflect EPMC.
2) Effective FY 2011 employees (Tier 1) picked up their share of pension contributions. For illustration purposes the above chart
reflects all bargaining units with the same start date, however some bargaining units contributions were phased in.
John E . Bartel, President
oI& w,
If
April 10 0 Infrastructure Workshop
April 0 Finalize Fiscal Year 2015 Proposed Budget for All Funds
April 29 and 30 0 Two public workshops to provide overview of proposed budget
May 16 0 City Manager Proposed Budget document submitted to Council
May 27 0 Present Fiscal Year 2014-15 All Funds Budget and CIP Overview
Illll ori g "rerm Financial Plan document submitted to Council
• Council provides initial feedback and adopts City Manager Proposed
Budget as City Council Proposed Budget
May 28 0 Begin 10 day public review of City Council Proposed Budget
June 3 0 Council discussion of City Council Proposed Budget
June 10 0 Public Hearing and Council consideration of Adoption of Proposed
Fiscal Year 2014-15 Budget (All Funds)
1 1
• Revenues are increasing modestly
• Baseline costs of existing personnel &
services continue to outpace revenue growth
• City was at high risk due to the recent
economic downturn but is now in a more
stable financial position