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7/28/2019 City of Alameda April 18, 2013 Budget Study Session Presentation
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City of Alameda
Budget Study SessionApril 18, 2013
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Budget Study Session April 18, 20132
Budget Presentation Outline Two Year Budget Process for FY13-14 and FY14-15
All Fund and General Fund Budget Overview
General Fund Budget: Revenue / Expenditure Projections
Options for Addressing Projected Budget Deficits
Other Budget Highlights
Budget Challenge
Council Direction on Proposed Budget
EOC Update
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Why A Two Year Budget ? Time savings realized during two year period
Requires more conservative revenue and expense
projections
Improve funding certainty for departments,employees and programs
Limits the use it or lose it syndrome
Allows the focus to be more on policy versusbalancing the budget
Results in improved long range strategic planningand departmental accountability
Budget Study Session April 18, 2013
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Budget Study Session April 18, 20134
Preliminary Proposed Expenditure
Budget by Fund FY13-14 (in Mill ions)(Based upon FY13-14 forecast of $153 Mill ion)
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General Fund Budget Overview
Closeout of FY12-13
FY12-13 projected to end with a structurally
balanced budget (in millions):
Estimated $ %
Budget Actual Change Change
Revenues 71.0$ 72.1$ 1.1$ 2%Expenditures 72.2 71.3 0.9 1%
Net Change (1.2)$ 0.8$ 2.0$
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Budget Study Session April 18, 20136
General Fund Budget Overview
(continued)
March 2013 Mid-Year Report Presented to Council:
Initial forecast deficit of $2.3 million for FY13-14and $4.0 million for FY14-15
Initial projected ending available fund balance of$17.0 million (23% of budget) for FY13-14 and$13.0 million (17% of budget) for FY14-15 absent
corrective actions
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Budget Study Session April 18, 20137
General Fund Budget Overview
(continued)
April 2013 Staff prepared initial budget estimates forFY13-14 through FY17-18:
Projects deficits of $2.7 to $7.4 million annually thruFY17-18
Assumes revenue growth of 1-3% annually dependingon the source
Incorporates new and projected Miscellaneous / SafetyPERS rates, including additional employee contributionsfor PERS and health
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Budget Study Session April 18, 20138
General Fund Budget Overview
(continued)
Assumes health and OPEB increases of 6-12% per year,(incorporating some cost sharing provisions of MOUs);
Incorporates other provisions of new MOU agreements,including salary increases based upon the increase in
BRI (minimum of 1.5% for 2014, 2% for 2015 and 2016)
Assumes 2.5% increases for all non-personnel expensesresulting from inflation beginning in FY15-16.
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Budget Study Session April 18, 20139
General Fund Budget Overview(continued)
Ending Available Fund Balance assumes no cost-savingmeasures are taken.
13-14 14-15 15-16 16-17 17-18
Revenues 72.9$ 74.1$ 75.2$ 76.5$ 77.9$
Expenses 75.6 78.5 81.0 83.0 85.3
Deficit For Year (2.7)$ (4.4)$ (5.8)$ (6.5)$ (7.4)$
Ending Available Fund Balance 18.6$ 14.2$ 8.4$ 1.8$ (5.6)$
% of Expenses 25% 18% 10% 2% -7%
5 Year Projections for FY13-14 through 17-18 (in millions)
Without proposed changes
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Budget Study Session April 18, 201310
General Fund Budget
Revenue and Expense Trends($ in millions)
$65
$70
$75
$80
$85
$90
Revenues Expenses
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Budget Study Session April 18, 201311
General Fund Budget
Major Revenue Sources - $73 Million FY13-14
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Budget Study Session April 18, 201312
General Fund Revenues
5-Year Plan Annual Assumptions
Property Tax 2.2% annually through 17-18
Sales Tax 6% 13-14, 4% 14-15, 3% thereafter
Utility Users Tax Flat thru 14-15, 1% thru 17-18
Franchise Taxes Drop 13-14, 0-1% thru 17-18
Other Taxes 1-2% through 17-18
Departmental Revenues 1% thru 17-18
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Budget Study Session April 18, 201313
General Fund BudgetTotal Revenue Trend
($ in millions)
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Budget Study Session April 18, 201314
General Fund BudgetProperty Tax Revenue Trend ($ in millions)
$19
$21$22
$23$22 $22 $22 $23
$23 $24
$0
$5
$10
$15
$20
$25
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
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Budget Study Session April 18, 201315
General Fund Budget
Major Expenditure Categories FY13-14
32%
36%
15%
5% 12%
Fire
Police
Administration
Recreation / PublicWorks (GF)
Transfers Out
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General Fund Budget
Major Expenditure Categories
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Miscellaneous Employees PERS Rates -
Total Contributions (Employer & Employee)
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Safety Employees PERS Rates -
Total Contributions (Employer & Employee)
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Budget Study Session April 18, 201319
Closing the Gap for FY13-14 and 14-15:
Summary of ProposedReductions/Revenue Offsets
Department Category 2013-14 2014-15
Administration 829,000$ 860,000$Police 245,000 245,000Fire 180,000 180,000
Central Services 49,000 49,000
Library 125,000 91,000Recreation 112,000 112,000General Fund
Capital Projects 460,000 1,491,000
Parking Meter Rates 375,000 375,000One Time Revenues 300,000
Total 2,675,000$ 3,403,000$
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Closing the Gap for FY13-14 and 14-15:
Proposed Changes(continued)
A. Administration: $829K FY13-14, $860K FY14-15
Restructure/Reduction of the following departments
City Manager / Information Services ($379K / $409K)
Human Resources ($202K each year)
Finance ($15K each year)
City Clerk ($88K / $89K)
Reallocate Cable Television Administration program toCable Internal Service Fund
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Budget Study Session April 18, 201321
Closing the Gap for FY13-14 and 14-15:
Proposed Changes(continued)
A. Administration (continued)
Human Resources ($30K each year)
Reduce other operational costs ($30K each year)
Finance ($115K each year) Increase Business License processing fee by $5
Increase penalties for delinquent business licenses
Reduce other operational costs
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Closing the Gap for FY13-14 and 14-15:
Proposed Changes(continued)
B. Police: $245K
Represents initial estimate for a proposed increase inparking citations, to be presented to Council in May2013
Police was also able to reduce their base budget by$200K annually through reduced booking fees assessedby the County
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Budget Study Session April 18, 201323
Closing the Gap for FY13-14 and 14-15:
Proposed Changes(continued)
C. Fire: $180K
Reduce purchases of equipment, materials and supplies
Reduce overtime budget
Increase in Fire Prevention Services revenue
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Budget Study Session April 18, 201324
Closing the Gap for FY13-14 and 14-15:
Proposed Changes(continued)
D. Recreation and Parks: $112K
Reductions in the following:
Hardball Field (College of Alameda) ($6,500)
Swim Center Facility Maintenance ($43,500)
Part time Staffing & Contractual Services ($62,000)
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Budget Study Session April 18, 201325
Closing the Gap for FY13-14 and 14-15:
Proposed Changes(continued)
E. Library: $216K over two years
Change closing time on Thursday from 6 pm to 5 pm, toalign with operating hours on Friday and Saturday($8K annually)
Use remaining Measure O bond funds instead ofGeneral Fund contributions to fund capital outlay forlibrary for both years ($200K over two years)
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Budget Study Session April 18, 201326
Closing the Gap for FY13-14 and 14-15:
Proposed Changes(continued)
F. Public Works: $49K
Represents an increase in the billing rates for fleetmaintenance services to Alameda Municipal Power andAlameda Unified School District
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Budget Study Session April 18, 201327
Closing the Gap for FY13-14 and 14-15:
Proposed Changes(continued)
G. General Fund Capital Projects($460K in 13-14, $1.491 million in 14-15)
Reductions in Building Maintenance Renovationsfunded annually by the General Fund from $860K to$400K
For FY14-15, reallocate remaining General Fund capitalcontributions as follows:
$200K from Capital Project Fund reserves (one-time)
$831K from Facility Maintenance Internal ServiceFund (on-going)
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Budget Study Session April 18, 201328
Closing the Gap for FY13-14 and 14-15:
Proposed Changes(continued)
H. Proposed Increase for Parking Meter Rates toRegional Standard
Represents initial estimate for proposed increase(estimated to generate $375K annually) to be presentedto Council in May 2013
Increase meter rates from
$1.00 to $1.50 per hour on Park Street
$.50 to $1.00 on Webster Street
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Budget Study Session April 18, 201329
Closing the Gap for FY13-14 and 14-15:
Use of One-Time Funds Receive repayment of funds due from Bayport
Assessment District for prior years for public
safety services ($300K FY13-14 only), $45Kannually in future years
Use of carryover of projected budget savingsFY12-13 ($1 million FY14-15)
Police ($634K due to vacancies)
Fire ($275K due to overtime savings) Facilities Maintenance ($142K due to vacancies)
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5 Year Projections FY13-14 to 17-18 (in Mil lions)
with Proposed Changes
13-14 14-15 15-16 16-17 17-18Revenues 72.9$ 74.1$ 75.2$ 76.5$ 77.9$
Expenses 75.6 78.5 81.0 83.0 85.3
Budget Carryover from FY12-13 1.0
Proposed Changes 2.7 3.4 2.7 2.7 2.7
Deficit For Year -$ -$ (3.1)$ (3.8)$ (4.7)$
Ending Available Fund Balance 19.6$ 18.6$ 15.5$ 11.7$ 7.0$
% of Expenses 26% 24% 19% 14% 8%
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Other Cost Savings Measures /
Revenue Enhancements
Proposed Elimination of Cost of Living Adjustments
for Non Personnel items for FY14-15 and 15-16
Parking Garage
Voluntary Layoff Program
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Budget Study Session April 18, 201332
Other Budget Considerations
Advance of future years PILOT from AMP ($1.2million 13-14, $1.4 million 14-15)
Expiring SAFER Grant funding for firefighters (2014)
Update on Redevelopment/Successor Agency
Proposed Reorganization of ARRA
Proposed EOC ($2 Million) Funding Sources
General Fund Reserves
Partial Payment from Community Development Fee
Loans from CDF / Facility Maintenance Funds
Grants / Other Sources
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Budget Good News
FY12-13 is projected to be structurallybalanced
Maintains and exceeds City Councils 20%reserve policy for two years
No significant decrease in direct services to thecommunity
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Budget Study Session April 18, 201335
Council Direction on Proposed Budget
Proposed expenditure reductions
Proposed changes to revenues
One-time items and use of budgetcarryover from FY12-13
Other Cost Savings/RevenueEnhancements
Other Budget Considerations
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Next Steps
May 28, 2013 2nd Council budget workshopand possible adoption
J une 12, 2013 Council budget adoption ifneeded
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Budget Study Session April 18, 201337
Questions?