NOVEMBER 2014 BALLOT

DISCUSSION ON FEASIBILITY OF A NEW

LOCAL REVENUE MEASURE

City of PinoleTown Hall Meeting

March 17, 2014

AGENDA FOR TONIGHT

• Background of City Revenues/Expenditures• History of Measure S• Review of Operating Departments

• Police• Fire• Public Works

• Revenue Measure Options• Public Discussion on Feasibility of a New

Revenue Measure

2

ECONOMIC DOWNTURN AND STATE TAKE AWAY OF REDEVELOPMENT

Pinole hard hit by economic downturn Over 5 Years of Decreases in Revenue

from Property and Sales Taxes

State Takeaways – Tremendous impact on our local budget State has taken away more than $7.5

million dollars annually from the City of Pinole in Redevelopment Funds

3

COMPARISON OF REDEVELOPMENT,RETAIL SALES AND PROPERTY

TAX REVENUES

4

WHERE DOES THE 9% SALES TAX GO?

State

Contra Costa County

Pinole-General Sales

Pinole-Measure S

6.75%

1.0%.75% .5%

5

PROPERTY TAX

$.81 Others

$.19 Pinole

Others sharePinole share

For every $1.00 Collected in PropertyTax, Pinole only receives …… $.19

6

BACKGROUND

• Fiscal Background• Over 80% of the General Fund is allocated to pay for salary, benefits, equipment and OPEB for Police and Fire Operations

• Reallocated Staff time and duties.

7

CURRENT FY 2013-14 GENERAL FUND BUDGET

$10,696,753

8

$4,750,49544.4%

$2,430,08422.7%

$2,812,87430.3%

$703,3006.6%

PoliceFireAdministrationDebt Service

Public Safety – 67.1%

HOW WE GOT HERE

Reduced Benefits for remaining employees

Maintenance of City parks and graffiti abatement greatly reduced

Reviewed All Fees for Services

Made Recreation and Cable TV Self Sustaining Operations

30% Reduction in Staff Including 53 FTE 9

MEASURE S

• Measure S (PMC Section 3.28)• General Purpose Tax, Appropriated Primarily for Public Safety Operations and Public Works Projects

• ½ Cent Transactions & Use Tax Paid by Residents and Non-Residents

10

MEASURE S

• Adopted in 2006 by voters; Received 59.7% Yes votes. No sunset date.

• Generates $1,600,00 for the General Fund

• Independently Audited Every Year

• All Audits Thus Far---Clean11

MEASURE “S” EXPENDITURES BY FUNCTION

LAST 7 YEARS---$9.4 MILLION

Police63%

Fire35%

Storm Drainage

2%

12

MEASURE “S” EXPENDITURES BY TYPE

LAST 7 YEARS---$9.2 MILLION

Salaries and BenefitsOvertime

Vehicle MaintenanceCapital EquipmentOther

59.3%34.7%

Public Safety –

92%

1.9% 1.8%2.1%

13

FY 2013-14 GENERAL FUND & MEASURE S BUDGET

$12,256,271

14

$5,838,66846.4%

$3,210,99425.6%

$2,812,87422.4%

$703,3005.6%

PoliceFireAdministrationDebt Service

Public Safety – 72%

POLICE POSITIONS FUNDED BY MEASURE S

Fiscal Year

Sgt Officer

Crime Prev

SRO Police Com

PT CSO/Su

p

Total

FY 2007-08

1 4 0 0 0 1 6

FY 2008-09

0 3 0 1 0 1 5

FY 2009-10

0 3 0 1 0 1 5

FY 2010-11

0 3 0 1 0 1 5

FY 2011-12

0 2 1 1 0 0 4

FY 2012-13

0 2 1 1 1 0 5

FY 2013-14

0 2 1 1 1 0 5

15

FIRE POSITIONS FUNDED FROM MEASURE S

Fiscal Year

Fire Chie

f

Battalion

Chief

Secretary

Total

FY 2007-08 0 0 0 0

FY 2008-09 0 1 1 2

FY 2009-10 .5 .5 .5 1.5

FY 2010-11 1 0 0 1

FY 2011-12 0 1 0 1

FY 2012-13 1 1 0 2

FY 2013-14 1 1 0 2

16

CHIEF JOHN HARDESTER

PINOLE POLICE DEPARTMENT

CURRENT SWORN STAFFING LEVELS

• Chief 1• Commander 1• Sergeants 6

• (4 Patrol, 1 Training and Administration,1 Detective Sergeant)

• Police Officers 19• (3 School Resource Officers,

2 Detectives, and 14 Patrol Officers)Total Sworn Staff

27

CURRENT NON-SWORN STAFFING LEVELS

• Support Services Manager 1• Dispatchers 7• Records and Property Specialists 2• Evidence/Property Specialist 1• Community Safety Specialists 2• Part Time Crossing Guards 2• Administrative Assistant 1

Total Non-Sworn Staff 16

YEAR-TO-YEAR STAFFING LEVEL COMPARISON

Fiscal Year Sworn Staff Members

Non-Sworn Staff Members

2007/08 32 222008/09 35 232009/10 31 242010/11 27 162011/12 27 162012/13 27 162013/14 27 16

YEAR-TO-YEAR STAFFING LEVEL COMPARISON

FY 13/14 POLICE OPERATIONS APPROPRIATION SUMMARY

Police Operations $2,745,248Police Services $ 985,254Dispatch $1,010,993

General Fund$4,741,494

FY 13/14 POLICE OPERATIONS APPROPRIATION SUMMARY

Other Funds:

Measure “S” Ops $1,088,173Contracted Security $ 30,450Traffic Safety Fund $ 37,987Supp. Law Enforce. $ 93,581Police Grants $ 567,501Non-General Fund $1,817,692

FY 13/14 POLICE OPERATIONS APPROPRIATION SUMMARY

• General Fund Total$4,741,494

• Non-General Fund$1,817,692

Total Police Operations $6,559,186

24

YEAR-TO-YEAR APPROPRIATION COMPARISON

YEAR-TO-YEAR APPROPRIATION COMPARISON

FY 2007/08 $8,185,029FY 2008/09 $7,728,036FY 2009/10 $7,642,407FY 2010/11 $7,100,350FY 2011/12 $6,542,814FY 2012/13 $6,542,540FY 2013/14 $6,559,186

Reduction in Appropriation from 2007/08: ($1,625,843) or 25%

YEAR-TO-YEAR APPROPRIATION COMPARISON

• FY 2007/08 $ 8,185,029• FY 2013/14 $ 6,559,186

• Difference ($1,625,843) or 25%

27

COMMUNITY PRESERVATION AND SAFETY UNIT

Previous Staffing Levels:1 Part-Time Sergeant1 Police Officer1 Part-Time Secretary3 Part-Time Community Safety Specialists1 Full-Time Code Enforcement Officer1 Part-Time Code Enforcement Officer

Current Staffing Levels:1 Part-Time Sergeant2 Part-Time Community Safety Specialists

POLICE VEHICLE FLEET

Marked Patrol Vehicles: 12 total marked patrol vehiclesFour (4) marked vehicles over 80,000

miles, three (3) marked vehicles over 60,000 miles, one (1) marked vehicle over 50,000 miles

STATISTICS2008 2009 2010 2011 2012 2013

Part I Crimes 1070 927 827 741 878 898

Calls for Service 29,190 29,55

225,636 25,854 21,251 22,43

2

Felony Arrests 390 399 343 343 348 361

Misd. Arrests 1,100 1,107 1,027 903 736 872

Citations

3,336 3,123 1,829 2,073 1,170 1,529

ADDITIONAL REVENUE NEEDS

• Increase number of sworn staff/Restructure Agency

• Offset loss of Federal Grant funding which expires this fiscal year for two (2) Police Officers

• Restore Community Preservation and Safety Unit

• Improve Code Enforcement Efforts/Return Code Enforcement to Police Department

• Facilitate vehicle replacement for patrol

CHIEF ROB PIPER

PINOLE FIRE DEPARTMENT

13.3 Square Miles Protected13.3 Square Miles Protected11

20,000 Population20,000 Population22

40 Square Miles “Other” Areas40 Square Miles “Other” Areas33

8,000 Population8,000 Population44

PFD

Pinole Fire Department DEMOGRAPHICS

BUDGETED OVERTIMEThis is the amount formally

budget to cover all FD overtime.

TOTAL BUDGETSALARIES

BenefitsOvertime

EMPLOYEE BENEFITSThis includes staffing for

disabilities, sick leave, higher class.

SALARIESTotal of all salaries from

department.

TOTAL BUDGETThis is entire FD operating

budget.

2013-2014 TOTAL PFD BUDGET

2013/14$3,210,994

2012/13$3,046,843

2011/12$3,231,052

2010/2011$3,674,988

FIRE DEPARTMENT BUDGET BY YEAR

TOTAL FD BUDGET

EXPENSES

INCOME FY 2013EXPENSES

MEASURE “S”FD TOTALS

2012-2013$451,800

SALARIES$1,675,415

BENEFITS$15,011

EQUIPMENT$50,794

PRO. SERVICES$173,968

2013-2014$780,910

PROJECTED

MEASURE “S” EXPENDITURES

SAFETY CLOTHING$3,232

SPECIAL $1,097

2013 – 2014 FISCAL YEAR

2014 – 2015 FISCAL YEAR

TOTAL SAFER GRANT INCOME

$ 604,612

$ 634,844

$ 1,239,456

SAFER GRANT BUDGET

2011-201216 TOTAL

2011-201216 TOTAL

2012-201316 TOTAL

2012-201316 TOTAL

2013-201420 TOTALIncludes 4

SAFER

2013-201420 TOTALIncludes 4

SAFERAUTHORIZED POSITIONS

INCLUDE:1- FIRE CHIEF1- BATTALION CHIEF 14 - PERSONNEL

AUTHORIZED POSITIONSINCLUDE:

1 - FIRE CHIEF 1 - BC14- PERSONNEL

AUTHORIZED POSITIONSINCLUDE:

1 - FIRE CHIEF1 - BATTALION CHIEF14 - PERSONNEL4 - SAFER PERSONNEL

AUTHORIZED STAFFING LEVELS

2013 CALLS FOR SERVICE

1341

20 27 15 124 76 117 120 23

CALL VOLUME1863 TOTAL

2013 TOTAL CALLS FOR SERVICE

SAFER GRANT

RESPONSE MODELS

MANDATED TRAINING

REVENUE REDUCTIONS

SERVICE IMPACTS

DISASTER PREP.* EOC UPDATING/STAFF * TRAINING

PUBLIC EDUCATION•CERT PROGRAM•CAR SEAT INSTAL•SMOKE DETECTOR

STATION REPAIR/MAINT.•STATION 73 – REPAIRS•STATION 74 – MAINT. UPGRADESEQUIPMENT RESERVE

•REPLACE RESERVE ENGINE•FUND FOR REPAIRS•REPLACE EQUIPMENT

NEW EQUIPMENT•POSSIBLE QRV PURCHASE•MANDATED EQUIPMENT

DEPT. TRAINING•ADD TRAINING STAFF•ALS TRAINING•MANDATED TRAINING•FIRE •RESCUE•COMPUTER/RMS

Fire Department Priorities

MEASURE “?”

MEASURE “?”

MEASURE“S”

MEASURE“S”

PASSED IN 2006 HAS PROVIDED

OVER $2,600,000 IN FD FUNDING.

WE NEED YOUR HELP !!

DEVELOPMENT SERVICES/PUBLIC WORKS

DEAN ALLISON, DEVELOPMENT SERVICES DIRECTOR/CITY ENGINEER

43

DEVELOPMENT SERVICES DEPARTMENT

• Public Works• Engineering/Capital Projects/Maintenance

• Sewer Enterprise• Treatment / Collection

• Planning and Building• Planning / Building / Code Enforcement/ Rental

Inspections44

45

35% Budget

Reduction

16 % Budget

Reduction

52 % Budget

Reduction

25% Budget Reduction

MAINTENANCE

46

Employees

• 11 6 FTE

IMPACTS

• Deferred Maintenance• Buildings• Streets• Trees• Sidewalks• Storm Drains

• Slower Delivery times

47

MAINTENANCE BACKLOG

• Tree trimming program $15,000• Sidewalk maintenance program $15,000• Roof at Senior Center• Roof at City Hall• Bank of Pinole Building• Faria House• Limited monies for streets

48

$50,000Annually

49

CAPITAL INVESTMENT / STREET MAINTENANCE

50

Slurry Seal$.30 - $.40 per SF

$3 - 4 per SFOverlay

$ 7 -9 + per SFReconstruction

Street Maintenance Costs Based Upon Roadway

Conditions

53

El Cerrito Contra Costa 145 53 50 50 62 73El Cerrito Contra Costa 145 53 50 50 62 73

Pinole Contra Costa 119 71 71 70 70 Pinole Contra Costa 119 71 71 70 70 6969

Slurry Seal$.30 - $.40 per SF

$3 - 4 per SFOverlay

$ 7 -9 + per SFReconstruction

Street Maintenance Costs Based Upon Roadway

Conditions

55

Funding Sources:

RDA /Measure J

56

MEASURE J FUNDS

• City’s Annual Amount = $ 289,000• Less WCCTAC Funding = $ 42,000

• Less Maintenance Operations = $ 58,000

• Available for Projects = $189,000

57

58

$ 1.3M / yr

$300 k / yr

• $ 50,000 to Slurry Seal

• $ 500,000 to Overlay

BUILDING / CODE ENFORCEMENT / RENTAL INSPECTIONS

60

Employees

3 1 FTE

IMPACTS

• Code Enforcement is Reactive

• Slower Response Times

• Limited Rental Inspection

61

ENGINEERING AND PROJECTS

62

Employees

6 3 FTE

IMPACTS

• Slower Delivery of Projects

• Project Compete for Staff Time • Measure WW and Plant Upgrade

• Limited Pursuit of Grants

63

OTHER PUBLIC WORKS DEPARTMENT NEEDS

• NPDES Requirements• Clean Water Program• Quality of water in storm drain system• Funding limited to $35/ parcel

assessment• Regulations increasing

64

OTHER PUBLIC WORKS DEPARTMENT NEEDS

• Park Maintenance• Chemical System for the Swim Center

• New Restrooms at Fernandez Park

• No identified Funding Source

• Measure WW Eligible65

OTHER PUBLIC WORKS DEPARTMENT NEEDS

• Storm Drainage Maintenance• No funding sources

66

REASONS FOR A NEW REVENUE MEASURE

• Other Public Safety Funding Needs include:

Annual Cost• SAFER Grant

(expires 2016) $619,500• 4 Firefighters

• Federal COPS Grant (expires 2015) $250,000

• 2 Police Officers67

REASONS FOR A NEW REVENUE MEASURE

• Other General Admin. Funding Needs include:

Annual Cost• Roadway Maintenance $350,000• Storm Drainage $200,000• Public Safety Vehicle Repl. $150,000• Code Enforcement $ 80,000• Facility Improvements $ 80,000

Total Needs $1,729,50068

REASONS FOR A NEW REVENUE MEASURE

• Still not Enough Forecasted Annual Revenue to Maintain• Level of service after grants expire• All Equipment (rolling stock)• Fully Restore Lost City Services

(Community Preservation, Code Compliance, Park Maintenance)

69

REVENUE ENHANCEMENT OPTIONS

•Option A General Tax - Requires 50%+1 vote by the Voters for Approval under Proposition 218

•Option B Special Tax - Requires 2/3rd vote by the Voters for Approval under Proposition 218

70

OPTION ALOCAL SALES TAX MEASURE

• Option 1 Revenue Unrestricted – General Fund

• Council may designate funds for specific purposes

• Option 2 Revenue Restricted – to Fund Public Safety

• Council may designate funds for specific purposes

71

OPTION A LOCAL SALES TAX MEASURE

•New “Sales Tax” Measure•Limit of ½ Cent (1% maximum allowed)

•Requires Simple Majority Vote by City Council to Place on Ballot

72

OPTION ALOCAL SALES TAX MEASURE

• Estimated Projected Revenue if Approved:• ¼ Cent tax will Generate $ 800,000

• ½ Cent tax will Generate $1,600,000

73

On a $1 pack of gum you pay an extra half-penny. On a $10 CD

you pay an extra nickel.

On a $100 TV you pay

an extra fifty cents.. On a $1,000

laptop you pay an extra five

dollars..

ADVANTAGES OF A LOCAL SALES TAX MEASURE

• City has a Large Commercial/Retail Base

• Majority of Sales Tax Revenues is Captured from Non-Residents• 60% Paid by Taxpayers From Outside of Pinole

• Est. $1,600,000 (X) 60% = $960,000• Residents contribute est. 40% or $640,000

75

OPTION BNEW EXCISE (PARCEL) TAX

• Excise Tax Assessed on Either a Flat Rate Per Parcel, or Rate Depending on Use, and Size or Number of Units

• Requires 2/3rd Vote by the Voters for Approval Under Proposition 218

• Requires Simple Majority Vote by City Council to Place on Ballot

76

OPTION BNEW EXCISE (PARCEL) TAX

• Revenue restricted to fund only public safety purposes per ballot measure

• Projected revenue if passed based on 6500 parcels• $200 tax will generate $1,300,000• $250 tax will generate $1,625,000• $300 tax will generate $1,950,000• $350 tax will generate $2,275,000

77

ADVANTAGES OF A LOCAL SALES TAX OVER PARCEL TAX MEASURE

Any potential measure would include strong fiscal accountability safeguards including:All funds stay local and could only be used for local community needs. No money for Sacramento. Annual Audit of Expenditure-Public ReviewOther Cities Help Pay for Our Services (Sales Tax Option Only)

78

DISCUSSION ON NEW REVENUE MEASURE

•Sales Tax or Parcel Tax Measure?• ¼ Cent or ½ Cent• Max. Amt for Parcel Tax

•General Purpose or Special Tax?

•Sunset Clause?79

FUNDING ALTERNATIVES?

• No other Funding Alternative exists to protect, maintain or improve vital city services

CRITICAL PATH TIMELINE

• March- April 2014• Seek community input and conduct polling and surveys

• May- June 2014• Council Adopts resolution to place measure on November 2014 Ballot

81

CRITICAL PATH TIMELINE

• June- July 2014 • Election timeline tasks (City Attorney to prepare impartial analysis; voters to write arguments in favor and arguments against measure)

• August 8, 2014• County Elections Office prepares ballot measures

• November 4, 2014 • General Election

82

QUESTIONS

• Community Discussion