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Home My WebLink About06-10,11,12-2013 Item B1, Padillaafta.council mEmoaanOu city of san lues oBispo, Finance an6 a. 6epaatment DATE: June 6, 2013 TO: Mayor & Council Members VIA: Katie Lichtig, City Manager FROM: Wayne Padilla, Interim Finance Director WP SUBJECT: Agenda Correspondence for the June 10th -12th Agenda, Item B-1 RECEIVED JUN 0 7 2013 LO CITY CLERK AGENDA CORRESPONDENCE Please find attached several documents that represent either additional pages or replacement pages for the Preliminary Financial Plan. Additional Pages Interfund Transactions (pages H -67a - H -67c) This document reflects all of the transfers into and out of the funds shown. This schedule was omitted from the original publication of the Preliminary Financial Plan because only one worksheet from a two worksheet document was printed when the Financial Plan was assembled. Operating Expenditures By Department (pages D -20a — D -20b) This document lists the City-wide operating costs for each department. Replacement Paizes Budget Summary Section D Expenditure Trends by Type: All Funds Combined (page D-19) This document breaks out all operating expenses across the entire City for the period from 2010- 11 through 2014-15. The document included in the Preliminary Financial Plan was an earlier version that was not balanced to the other documents contained in the Financial Plan. Expenditure Trends by Type: General Fund (Page D-20) This document breaks out all operating expenses of the General Fund for the period from 2010- 11 through 2014-15. The document included in the Preliminary Financial Plan was an earlier version that was not balanced to the other documents contained in the Financial Plan. Change in Financial Position — Transit Fund (Page H-62) This document was corrected to reflect a change to the 2012-13 budget amount for Capital Improvement Plan Projects. The original document reported an amount that omitted the existing appropriations for bus purchases that had been previously approved by the City Council. While the Mid -Year Budget Update reported the correct budget value, these costs were not included in the original Preliminary Financial Plan document because staff believed that these costs had been reported in the prior year. T:\Council Agenda Reports\2013\2013-06-10\Agenda correspondence\Item B-1\COUNCIL MEMO -agent Council Memorandum June 6, 2013 Page 2 Replacement Pages cont'd Goals and Objectives Section C Major City Goals —Action Plan (page C--40) This document was revised to reflect the new task related to the completion of a cost basis analysis to evaluate and document the costs and impacts of the City's Utilities operations on General Fund supported operations and facilities, including but not limited to City streets and right-of-way, to ensure appropriate and supportable franchise in -lieu or other appropriate charges to the Water and Sewer funds. Please feel free to contact me with any questions you may have by calling me at 781-7125 or by e-mail at wpadilla@siocity.org. INTERFUND TRANSACTIONS - OPERATING TRANSFERS General Fund Operating Transfers In Gas Tax Fund TDA Fund Tourism BID Fund Affordable Housing Fund Sewer Enterprise Fund Parking Enterprise Fund Insurance Benefit Fund Total operating transfers in Operating Transfers Out Community Development Block Grant General Purpose CIP Open Space Protection Fund Fleet Replacement Fund Debt Service Fund Information Technology Fund Major Facility Replacement Fund Insurance Benefit Fund Total operating transfers out Total Operating Transfers Community Development Block Grant Fund Operating Transfer In Park Hotel Fund General Fund Gas Tax Fund Operating Transfer Out General Fund Transportation Development Act Fund Operating Transfer Out General Fund Tourism Business Improvement District Fund Operating Transfer Out General Fund Information Technology Replacement Fund Operating Transfer In General Fund Sewer Enterprise Fund Operating Transfer Out . Insurance Benefit Fund Actual Budget 2011-12 2012-13 2013-14 2014-15 1,311,200 1,233,800 1,357,200 1,3 57,200 34,800 26,200 49,100 35,000 41,500 21,100 23,000 23,600 0 0 17,000 17,000 0 14,400 0 0 0 100,000 0 0 0 0 99,900 - 1,387,500 1,395,500 1,546,200 1,432,800 (53,600) (45,000) (53,100) (81,200) (3,417,800) (3,384,700) (4,878,800) (2,206,400) (305,000) (22,500) (166,800) (150,400) (500,000) (700,000) (500,000) (624,000) (2,437,200) (2,637,500) (2,760,200) (2,963,900) 0 0 (565,500) (967,100) 0 0 (600,000) (573,600) 0 (632,800) 0 445,400 (6,713,600) (7,422,500) 9,524,400 8,012,000 (5,326,100) (6,027,000) (7,978,200) (6,579,200) 0 21,200 17,900 0 53,600 45,000 53,100 81,200 53,600 66,200 71,000 81,200 (1,311,200) (1,233,800) (1,357,200) (1,357,200) (34,800) (26,200) (49,100) (35,000) (41,500) (21,100) (23,000) (23,600) H -67a 0 0 565,500 967,100 0 (14,400) (258,300) 0 1NTERFUND TRANSACTIONS - OPERATING TRANSFERS Parking Enterprise Fund Operating Transfer Out Insurance Benefit Fund Water Enterprise Fund Operating Transfer Out Insurance Benefit Fund Transit Enterprise Fund Operating Transfer Out Insurance Benefit Fund Insurance Benefit Fund Operating Transfer In General Fund Water Enterprise Fund Sewer Enterprise Fund Parking Enterprise Fund Transit Enterprise Fund Whale Rock Commission Operating Transfer Out General Fund Whale Rock Commission Operating Transfer Out Insurance Benefit Fund General Purpose CIP Operating Transfer In General Fund Open Space Protection Fund Operating Transfers In General Fund Fleet Replacement Fund Operating Transfers In General Fund Debt Service Fund Operating Transfer In General Fund Major Facility Replacement Fund Operating Transfer In General Fund Actual Budget 2011-12 2012-13 0 (100,000) 0 0 0 0 0 632,800 0 0 0 0 0 0 0 0 0 0 2013-14 2014-15 (83,500) 0 (253,900) 0 (17,600) 0 0 445,400 253,900 0 258,300 0 83,500 0 17,600 0 30,800 0 0 632,800 644,100 445,400 0 0 (99,900) 0 0 0 (30,800) 0 3,417,800 3,384,700 4,878,800 2,206,400 305,000 22,500 166,800 150,400 500,000 700,000 500,000 624,000 2,437,200 2,637,500 2,760,200 2,963,900 0 0 600,000 573,600 H -67b INTERFUND TRANSACTIONS - OPERATING TRANSFERS Park Hotel Fund Operating Transfer Out CDBG Fund Affordable Housing Fund Operating Transfer Out General Fund NET OPERATING TRANSFERS Actual Budget 2011-12 2012-13 H -67c (21,200) 0 2013-14 2014-15 (17,900) (17,000) (17,000) $0 $0 $0 $0 BUDGET SUMMARY OPERATING EXPENDITURES BY DEPARTMENT CITY COUNCIL Legislation & Policy Total City Council ADMINISTRATION City Administration City Clerk Services Cultural Activities Natural Resources Protection Economic Development Community Promotion Total Administration CITY ATTORNEY Legal Services Total City Attorney HUMAN RESOURCES Human Resources Administration Risk Management Human Relations Total Human Resources FINANCE & INFORMATION TECHNOLOGY Finance & Information Technology Admin Accounting Revenue Management Support Services Network Services Non -Departmental Geographic Information Services Total Finance COMMUNITY DEVELOPMENT Commissions & Committees Administration Development Review Long Range Planning Housing Building & Safety Total Community Development Actual Budget 741,500 11% 2011-12 2012-13 2013-14 change 2014-15 change 130,100 133,400 138,900 4% 142,600 3% 130,100 133,400 138,900 4% 142,600 3% 741,000 668,000 741,500 11% 762,800 3% 320,500 424,500 373,000 -12% 429,400 15% 278,000 284,000 290,600 2% 295,400 2% 386,000 351,600 342,800 -3% 343,400 0% 260,500 317,900 234,100 -26% 290,600 24% 411,600 516,500 386,700 -25% 386,700 0% 2,397,600 2,562,500 2,368,700 -8% 2,508,300 6% 540,100 1,104,500 548,600 -50% 564,600 3% 540,100 1,104,500 548,600 -50% 564,600 3% 690,000 596,300 568,700 -5% 572,800 1% 2,253,300 2,502,900 3,756,100 50% 3,755,600 0% 251,200 237,700 283,100 19% 288,400 2% 3,194,500 3,336,900 4,607,900 38% 4,616,800 0% 283,000 384,400 342,400 -11% 363,300 6% 593,800 636,600 621,500 -2% 616,100 -1% 808,700 852,300 796,700 -7% 808,200 1% 100,900 183,500 265,300 45% 216,800 -18% 2,051,100 2,454,800 2,233,300 -9% 2,293,400 3% 988,900 1,179,100 137,000 -3% 491,100 258% 439,100 453,000 436,000 4% 437,300 0% 4,276,600 4,964,600 4,832,200 -3% 5,226,200 8% 20,300 26,900 34,600 29% 34,600 0% 396,000 598,600 510,200 -15% 502,700 -1% 480,600 550,700 525,500 -5% 531,400 1% 635,900 1,635,300 527,500 -68% 534,400 1% 258,300 911,400 472,600 -48% 432,100 -9% 988,900 1,179,100 1,146,000 -3% 1,138,700 -1% 2,780,000 4,902,000 3,216,400 -34% 3,173,900 -1% D -20a OPERATING EXPENDITURES BY DEPARTMENT Actual Budget O/C % 2011-12 2012-13 2013-14 change 2014-15 change PARKS & RECREATION Recreation Programs 3,379,600 3,535,300 3,572,900 1% 3,652,800 2% UTILITIES Water Services 12,356,700 13,979,500 13,075,100 -6% 13,168,200 1% Wastewater Services 5,680,000 7,264,200 6,699,400 -8% 6,717,400 0% Whale Rock Reservoir 674,500 915,000 842,800 -8% 870,300 3% Total Utilities 18,711,200 22,158,700 20,617,300 -7% 20,755,900 1% PUBLIC WORKS Administration 958,700 1,013,500 918,900 -9% 931,400 1 % CIP Project Engineering 1,526,700 1,782,100 1,771,500 -1% 1,828,200 3% Transportation & Development Review Engineering Development Review 407,800 406,100 450,100 11% 452,100 0% Transportation Planning & Engineering 436,700 711,900 502,900 -29% 512,600 2% Parking 1;817,700 2,100,800 2,078,900 -1% 2,009,500 -3% Municipal Transit System 2,617,100 2,826,500 2,941,400 4% 2,930,900 0% Maintenance Services Street Maintenance 1,691,500 1,847,200 1,828,200 -1% 1,845,000 1% Creek & Flood Protection 736,800 838,500 822,600 -2% 803,900 -2% Parks & Landscape Maintenance 2,035,600 2,333,500 2,324,200 0% 2,366,400 2% Swim Center Maintenance 360,900 436,100 449,000 3% 456,600 2% Tree Maintenance 398,900 407,500 428,300 5% 429,700 0% Building Maintenance 945,000 1,112,100 1,103,800 -1% 1,118,300 1% Fleet Maintenance 1,094,700 1,156,200 1,168,000 l% 1,180,100 1% Total Public Works 15,028,100 16,972,000 16,787,800 -1% 16,864,700 0% POLICE 14,029,700 15,217,600 14,828,900 -3% 14,761,500 0% FIRE 9,923,600 9,898,000 9,516,900 4% 9,563,700 0% NON -DEPARTMENTAL Tourism Business Improvement District 1,013,200 1,120,200 1,128,400 1% 1,157,500 3% Downtown Business Improvement District 200,400 200,000 205,000 3% 210,000 2% Total Non -Departmental 1,213,600 1,320,200 1,333,400 1% 1,367,500 3% TOTAL OPERATING EXPENDITURES $75,604,700 $86,105,700 9182,369,900 4% $83,198,500 1% D -20b EXPENDITURE TRENDS BY TYPE: ALL FUNDS COMBINED Actual Actual Budget2013-15 Financial Plan 2010-11 2011-12 2012-13 2013-14 change 2014-15 change OPERATING PROGRAMS 2,986,300 2,803,900 3,606,000 3,711,900 3% 3,882,800 5% Staffing 147,400 144,700 155,900 179,600 15% 180,800 1% Salaries and Wages 1,939,500 2,128,100 2,332,900 3,588,600 54% 3,580,200 0% Regular Salaries $29,176,900 $28,452,500 $30,284,500 $30,453,600 1% $30,577,700 0% Temporary Salaries 1,879,100 2,011,100 2,174,300 2,032,300 -7% 1,979,700 -3% Overtime 2,341,300 2,964,000 2,539,800 2,299,900 -9% 2,215,900 -4% Benefits TOTAL OPERATING PROGRAMS Retirement 9,349,000 10,018,500 10,245,500 9,688,000 -5% 10,246,300 6% Group Health & Other Insurance 3,789,300 3,801,600 4,143,700 4,254,900 3% 4,392,600 3% Retiree Health Care 440,700 457,900 558,000 314,600 -44% 304,900 -3% Medicare 445,100 450,100 502,200 496,500 -1% 502,200 1% Unemployment Reimbursements 43,200 31,700 136,400 135,900 0% 134,000 -1% Total Staffing 47,464,600 48;187,400 50,584,400 49,675,700 -2% 50,353,300 1% Contract Services 15,676,900 17,629,100 23,532,300 19,313,100 -18% 19,344,800 0% Other Operating Costs Communications & Utilities 2,986,300 2,803,900 3,606,000 3,711,900 3% 3,882,800 5% Rents & Leases 147,400 144,700 155,900 179,600 15% 180,800 1% Insurance 1,939,500 2,128,100 2,332,900 3,588,600 54% 3,580,200 0% Other Operating Expenditures 4,253,100 4,592,000 5,836,500 5,775,600 -1% 5,779,400 0% Total Other Operating Costs 9,326,300 9,668,700 11,931,300 13,255,700 11% 13,423,200 1% Minor Capital 174,400 119,500 57,700 125,400 117% 77,200 -38% TOTAL OPERATING PROGRAMS 72,642,200 75,604,700 86,105,700 82,369,900 -4% 83,198,500 1% CAPITAL IMPROVEMENT PLAN 16,724,500 16,970,100 38,968,400 21,073,100 -46% 38,218,100 81% DEBT SERVICE 10,110,700 9,040,000 9,455,200 7,877,800 -17% 7,579,600 -4% TOTAL EXPENDITURES 99,477,400 101,614,800 134,529,300 111,320,800 -17% 128,996,200 16% D-19 EXPENDITURE TRENDS BY TYPE: GENERAL FUND Other Operating Costs Communications & Utilities Actual Actual Budget 2013-15 Financial Plan 4% Rents & Leases 141,800 136,800 153,900 176,100 14% 177,300 % Insurance 2010-11 2011-12 2012-13 2013-14 change 2014-15 change OPERATING PROGRAMS 2,544,000 2,696,400 3,162,700 3,224,000 2% 3,181,800 -1% Staffing 6,254,800 6,561,200 7,670,100 8,351,500 9% 8,607,800 3% Salaries and Wages 10,800 14,200 41,700 35,500 -15% 50,500 42% Regular Salaries $23,972,400 $23,432,400 $25,037,500 $25,014,300 0% $25,164,400 1% Temporary Salaries 1,508,600 1,626,900 1,744,400 1,599,600 -8% 1,596,900 0% Overtime 2,162,500 2,763,100 2,337,700 2,076,000 -11% 1,992,000 -4% Benefits Retirement 7,899,200 8,444,000 8,565,800 8,272,800 -3% 8,757,500 6% Group Health and Other Insurance 3,002,900 3,441,700 3,299,400 3,317,400 1% 3,414,600 3% Retiree Health Care 346,900 441,900 248,300 -44% 240,500 -3% Medicare 367,100 371,200 414,900 409,300 -1% 414,500 1% Unemployment Reimbursements 35,500 26,200 112,300 112,200 0% 110,100 -2% Total Staffing 39,295,100 40,105,500 41,953,900 41,049,900 -2% 41,690,500 2% Contract Services 3,728,100 49306,000 7,120,700 4,796,800 -33% 4,876,700 2% Other Operating Costs Communications & Utilities 1,629,500 1,658,000 2,020,600 2,053,700 2% 2,143,900 4% Rents & Leases 141,800 136,800 153,900 176,100 14% 177,300 1% Insurance 1,939,500 2,070,000 2,332,900 2,897,700 24% 3,104,800 7% Other Operating Expenditures 2,544,000 2,696,400 3,162,700 3,224,000 2% 3,181,800 -1% Total Other Operating Costs 6,254,800 6,561,200 7,670,100 8,351,500 9% 8,607,800 3% Minor Capital 10,800 14,200 41,700 35,500 -15% 50,500 42% Total Operating Programs 49,288,800 50,986,900 56,786,400 54,233,700 -4% 55,225,500 2% Reimbursed Expenditures (4,449,900) (3,774,900) (3,732,100) (3,897.400) 4% (3,904.000) 0% TOTAL OPERATING PROGRAMS 44,838,900 47,212,000 53,054,300 50,336,300 -5% 51,321,500 2% CAPITAL IMPROVEMENT PLAN* 1,743,000 4,222,800 4,012,600 4,878,800 22% 2,206,400 -55% DEBT SERVICE* 3,023,200 2,437,200 2,637,500 2,760,200 5% 2,963,900 7% TOTAL GENERAL FUND EXPENDITURES 49,605,100 53,872,000 59,704,400 57,975,300 -3% 56,491,800 -3% * Based on operating transfers from the General Fund for this purpose. D-20 TRANSIT FUND Revenues Investment and Property Revenues From Other Governments TDA Revenues Other Grants FTA Grants Service Charges Other Revenues Total Revenues Expenditures Operating Programs Transportation General Government Total Operating Prugrrons Capital Improvement Plan Projects Total Expenditures Other Sources (Uses) % PERS Employer Contribution Estimated Non -Staffing Savings Potential MOA Adjustments Other Sources Expenditure Savings Total Other Sources (Uses) Revenues and Other Sources Over (Under) Expenditures and Other Uses Working Capital, Beginning of Year Working Capital, End of Year Actual Budget 546,300 692,100 -283% -30% (71,700) 1,238,400 -113% 79% $ 990,600 $ 692,100 $ 1,238,400 79% $ 1,166,700 -6% 2011-12 2012-13 2013-14 change 2014-15 change 24,100 5,800 5,800 5,800 1,177,500 1,592,000 1,977,400 24% 1,243,400 -37% 620,600 4,600 222,700 4741% 30,300 -86% 1,419,700 1,873,900 1,918,700 2% 1,764,000 -8% 626,500 639,400 650,800 2% 669,500 3% 35,900 5,000 5,000 4,000 -20% 3,904,300 4,120,700 4,780,400 16% 3,717,000 -22% 2,617,000 2,826,500 2,941,400 4% 2,930,900 0% 476,500 416,900 320,400 -23% 329,300 3% 3,093,500 3,243,400 3,261,800 1% 3,260,200 0% 826,300 1,175,800 954,700 -19% 528,500 -45% 3,919,800 4,419,200 4,216,500 -5% 3,788,700 -10% 7,400 (17,600) -100% 7,400 (17,600) -100% (8,100) 998,700 (298,500) 990,600 546,300 692,100 -283% -30% (71,700) 1,238,400 -113% 79% $ 990,600 $ 692,100 $ 1,238,400 79% $ 1,166,700 -6% H-62 MAJOR CITY GOALS SUSTAIN ESSENTIAL SERVICES, INFRASTRUCTURE, AND FISCAL HEALTH 4. Implement benchmark analysis to compare key financial and outcome measures with comparable September jurisdictions. 2013 5. Identify opportunities for managed competition in City functions as identified from the results of Ongoing benchmark analysis and organizational or best practices reviews. 6. Examine feasibility of establishing and monitoring performance measures instead of workload December measures. 2014 7. Evaluation of cost effectiveness of leasing instead of 1. Refine the five-year capital improvement program that will responsibly protect the City'sI Ongoing infrastructure assets, including building facilities, and develop a plan for funding as needed. 2. Establish replacement and funding plans for equipment. October 2013 - February 2014 3. Establish replacement and funding plans for information technology assets. October 2013 - February 2014 4. Periodically review liability and workers compensation claims trends and update a plan of funding ifI Ongoing needed. 5. Monitor liability and workers compensation claims to ensure best practices in prevention are Ongoing implemented and costs reduced. 6. Provide preliminary notice to the CJPIA of City's intent to explore other coverage options. July 2013 7. Thoroughly review liability and workers compensation coverage, claims history, and other services July 2013 - provided by CJPIA and explore alternatives that ensure appropriate risk management and cost April 2014 effectiveness. 8. Engage an outside consultant to initiate a cost basis analysis to evaluate and document the costs and July 2013 - impacts of the City's Utilities operations on General Fund supported operations and facilities, September including but not limited to City streets and right-of-way, to ensure appropriate and supportable 2013 franchise in -lieu or other appropriate charges to the water and sewer funds. 9. Report options to Council and provide recommendation. 10. Continue to monitor personnel costs. 11. Continue to monitor and support appropriate pension reform. 12, Continue to monitor pension costs and consider strategies to effectively reduce liabilities associated with the pension program. C-40 April 2014 Ongoing Ongoing Ongoing