HomeMy WebLinkAboutItem 10 - Presentation
City of Presented May 11, 2021 OverviewProposed BudgetFiscal Year 2022Chula Vista
Budget Process Overview 2 implemented: Fiscal Year 2022 begins, Adopted Budget is July 1, 2021•the Fiscal Year 2022 Proposed Budget: Public hearing and Council vote to adopt May 25,
2021•Year 2022 City Manager’s Proposed Budget: Presentation to City Council of the Fiscal May 11, 2021•Budget Workshop : Staff conducted the Virtual Community April 28, 2021•baseline
budget; Departmental requests and adjustmentsDevelopment of a preliminary March 2021: -Jan. •
Agenda 3 Next Steps•Fiscal Year 2022 Capital Improvement Program•Measure P Sales Tax Fund Summary–Measure A Sales Tax Fund Summary–General Fund Summary–All Funds Summary–Fiscal Year
2022 Proposed Budget•
Fiscal Year 2022 4 for reducing retirement expensesRecent issuance of Pension Obligation Bonds •economic crises.19 and -funding for responding to the COVIDAmerican Rescue Plan Act: Future
federal •events, and use of City facilities and programs.pandemic and restrictions on travel, special 19 -revenues and expenditures from the COVIDStaff continues to monitor the impacts
on •Budgetary Notes
Pension Obligation Bonds for potential future CalPERS investment shortfallsPension funding policies that support setting aside funds •Reduce interest paid towards pensions•term savings-and
medium-Short•Sustainable pension debt repayment schedule•Benefitswith CalPERS (as of June 30, 2019) for fiscal year 2022.(POBs) to fund 100% of its Unfunded Accrued Liability (UAL)
The City recently issued taxable pension obligation bonds 5
Pension Obligation Bonds 6
POB Budgetary Impacts future pension related liabilitiesNew Section 115 Trust contributions to address •New debt service expenses for POBs•expensesElimination of the UAL reduces personnel
•Budgetary impacts:7
FISCAL YEAR 2021ALL FUNDS BUDGET2022-
All Funds 9 Increased parks budget for the addition of new parks•Increased library funding for books•Increased tree trimming services •infrastructureRepairs and improvements to sidewalks
and other •Repairs and improvements to various public facilities•Community CenterFunding for reconstruction of the Loma Verde •ProgramFirst full year of funding for the Transport Service
•Budget Highlights
All Funds Summary.considerationCouncilforbackbroughtbewillbudgetthetochangesrecommendedandprojectionsUpdated.ActPlanRescueAmericanthefromallocationCity’stheforguidelinesandfundsofreceiptthetoprior,20
21MarchearlyinpreparedwereassumptionsandprojectionsBudgetThe 10
All Funds Revenues All Funds Revenues by Category 11(in thousands)
All Funds Expenditures 12 All Funds Expenditures by Category(in thousands)
All Funds by Fund Category 13 All Funds by Fund Category(in thousands)Revenue and Expenditures
All Funds 2%Successor Agency Funds9%2%Section 115 Trust Fund3%4%Open Space Funds5%FundMeasure P Sales Tax 5%FundMeasure A Sales Tax 3%Internal Service Funds3%2%Gas Tax Fund6%Enterprise
Funds3%Development Funds6%, Debt Funds0.1%Capital Funds47%General Fund 14 Revenues by Fund Type Revenue Graph
All Funds 2%Successor Agency Funds9%3%4%Open Space Funds9%FundMeasure P Sales Tax 4%FundMeasure A Sales Tax 3%Internal Service Funds3%3%Gas Tax Fund6%Enterprise Funds2%Development Funds6%Debt
Funds0.1%Capital Funds46%General Fund 15 Expenses by Fund Type Expense Graph
All Funds Staffing Summary–FTE 16
All Funds Staffing Changes 17 Fire Department (1.0 FTE)•FTE) Department1.0 FTE) Finance (2.0 -Economic Development Department(•City Clerk Department (1.0 FTE)•1.0 FTE)-Administration
Department (•General Fund (3.5 FTE):–FY 2022 Proposed Budget Net Changes (7.5 FTE)•Measure A Sales Tax Fund (17.00 FTE)–FTE) Year Budget Net Changes (17.00 -FY 2021 Mid•
All Funds Staffing Changes 18 Fleet Management (2.0 FTE)–Environmental Services (1.0 FTE)–1.0 FTE)-Federal Grants Fund (–Measure A Fund (3.00 FTE)–Parks & Recreation Department (1.0
FTE)•1.0 FTE)-Library Department (•Information Technology Services Department (1.0 FTE)•Human Resources Department (0.5 FTE)•General Fund (3.5 FTE):–FY 2022 Proposed Budget Net Changes
(7.5 FTE)•
All Funds Staffing Changes 19 from ALSTransportation Fund (52.00 FTE) transfer –FTE)53.00 -Advanced Life Support (ALS) Fund (–FTE) (Continued)FY 2022 Proposed Budget Net Changes (7.5
•
General Fund Summary 20
General Fund Revenues General Fund Revenues by Category 21(in thousands)
General Fund 22$1.4 million decrease for Utility Users Taxes•$2.8 million increase for Sales Tax revenues•Vehicle License Fees$2.9 million increase for both Property Tax and Motor •revenues$6.0
million added for Measure A and Measure P •Primary drivers include:–6.8% over FY 2021 Adopted BudgetMajor revenues projected to increase by $10.9 million or –Major Revenue assumptions•Revenue
Assumptions
General Fund Expenditures 23 General Fund Expenditures by Category(in thousands)
General Fund 24$1.1 million increase for Flex/Insurance•PERS Normal Cost increase of $0.7 million–Obligation Bonds (POBs)UAL eliminated with issuance of Pension –$19.3 million decrease
for Pension costs •$1.8 million decrease of Salary Savings target•$3.1 million Personnel Increase•Personnel expenses decrease of $13.2 million–Personnel Services assumptions•Expenditure
Assumptions
General Fund 25 Section 115 Trust contribution of $5.9M–Pension Obligation Bonds debt service of $11.7M–$2.8 million to the Measure P Fund Measure P Sales Tax revenue transfer increase
of –$2.8 million to the Measure A Fund Measure A Sales Tax revenue transfer increase of –Transfers Out ($23.2 million)•Expenditure Assumptions (cont.)
Measure A Revenues and Expenditures 26(in thousands)
Measure P Revenues and Expenditures 27(in thousands)
GENERAL FUNDFISCAL YEAR 2022 TO 2031TERM FINANCIAL PLAN (LTFP)-LONG
LTFP Forecast Summary 29 FY2031)–(FY2022
LTFP Forecast Summary 30 FY2031)–(FY2022
LTFP Revenue Assumptions 3%).-revenues categories (0.5 Conservative growth rates were applied to other major •business openings; slower growth thereafter before stabilizing.Budget of
$2.8M in FY22 based on current trajectory of cannabis –Cannabis (Local Tax Revenues) •term rentals.-shortTransient Occupancy Tax (TOT) revenues from new hotels and –New Development•-COVID-preImpacts
on General Fund assumed to wane by FY23, revenues at –19 -COVID•31
LTFP Expenditure Assumptions address anticipated City population growth.Addition of 3.0 FTE Peace Officer positions each year to –Peace Officer costs•Bayfront commitment –Bayfront Fire
Station –Bayfront Project•Inclusion of POBs budgetary impacts–labor contracts will vary.Assumes a conservative 2% increase each year; actual –Personnel costs •32
Fiscal Year 2022 33 negative impacts on the projections within the LTFP.will have Any prolonged economic downturn(s) –primary drivers of growing expenses.remain the Insurance, Health
Care and Pension costs –Challenges•: $27.73 million deficitFY 2031–: $2.73 million deficitFY 2023–BalancedFY 2022: –outlook. for every year throughout the term of the LTFP projects
expenditures to outpace revenues •2031 Outlook-
Economic Forecast 34 year across City zip codes (Zillow)Median home value increased on average 13% from last –City Housing Market•Statistics)9.1%, down from 15.7% last year (US Bureau
of Labor –City Unemployment•19 levels through 2023. (UCLA Anderson)-COVID-6.3% growth in 2021, growing slightly faster than pre–Real Gross Domestic Product (GDP)•
LTFP Risks Stock Market Valuation•Economic Reopening•19 Fiscal Impacts-COVID•Federal Stimulus Uncertainty•35
CAPITAL IMPROVEMENT PROGRAM SUMMARY
Capital Improvement Program 8.34%Wastewater33.89%Roadway5.74%Parks1.55%General Gov't8.38%Drainage42.10%Building by Asset Management System$49.2M-
Capital Improvement Program 14.64%, TaxTransportation Sales 0.10%, Traffic Signal1.99%, Transportation DIF5.60%, ReplacementSewer Facility 2.75%, Basin DIFPoggi Canyon Sewer 1.72%, Park
Acq. & Dev.55.77%, Measure P0.46%, ProgramHighway Safety Impv. 15.75%, Gas Tax0.51%, CV Golf Course0.71%, Com. Dev. Block Grant by Funding Source$49.2M-
CIP Highlights$4.1M-Sewer Projects $10.5M-Street Pavement & Rehab Projects $4.1M-$2.8M-Park Infrastructure, Courts & Fields Major Projects Planned•
CIP Highlights Other Public Building RepairsLoma Verde Recreation CenterFunded by Measure P•1301 Oleander Ave (Boys & Girls Club)•South Chula Vista Library•Civic Center Library •Police
Facility •Fire Stations•Public Building Repairs ($5.5M)–Funded by Measure P•Build Project-Design•construction -Demolition and re•Heavily used by the community•75-Built in 1974•Loma
Verde Rec Center ($15.1M)–Building Projects Planned•
CIP Highlights Total cost: $20M–Over 22 miles of roadways reconditioned –Treated 157 roadway segments –Projects 3 Pavement Maintenance & Rehabilitation –Street Pavement Projects
(Completed)•
CIP Highlights Project cost: $4.8M–$2.5M Smart Growth Incentive Program Grant–F Street to E StreetFrom –Third Ave Streetscape Phase 3 (Completed)•
Fire Station 5 CIP Highlights design and constructionSecured property, completed •
Fire Station 3 (formerly 9)CIP Highlights design and constructionSecured property, completed •
CIP Highlights Project cost: $2M–66 inch diameter pipe–(tunneling)foot excavation depth -35–855 Energy Way –Emergency Storm Drain Repair•
Capital Improvement Program TOTAL CIPWastewaterUrban ForestryRoadwayParksOpen SpaceGeneral Gov'tFleetDrainageBuilding FY22FY21FY20FY19FY18FY17FY16FY15FY14FY13 $80,000,000 $70,000,000
$60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $-by Asset Management System Year Period-10
Next Steps 47 on the City’s website (www.chulavistaca.gov)Additional public comments can be submitted •a Public Hearing and adoption of the budgetBudget as their own and set May 25,
2021, for City Council to accept City Manager’s Proposed •
Resolution 48 and adoption of same”place for a public hearing for final consideration Budgets, respectively, and setting the time and 2022 for each agency as their Proposed –2021 Capital
Improvement Budgets for Fiscal Year the City Manager’s Proposed Operating and Authority of the City of Chula Vista accepting Agency to the Redevelopment Agency / Housing “Resolution
of the City Council / Successor
Comments/Feedback 49