1. Administration Budget Presentation Fiscal Year 2016-2017

2. City of South Gate 2 Citizens of South Gate City Clerk City Council City Manager Administration Administrative Services Community Development Parks & Recreation PolicePublic Works City Attorney City Treasurer

3. Administration Department 3 City Council City Manager Executive Assistants (3) Management Analyst (1) Management Assistant (1) Receptionist (1) City Attorney City Treasurer

4. Budget Process  Set City Council goals  Develop budget based on five pillars  Present proposed budget  Hold budget meetings  Approve budget  Present Work Program  Meet and complete City Council requests 4

5. Five Budget Pillars 5 Labor Costs Service Reductions Efficiencies Economic Development Revenue Increases

6. City Council Goals  Improve communications and civic engagement  Continue refining the five-year budget forecast, adopting a responsible budget and funding reserves  Encourage economic development and workforce development  Continue creating and protecting strong and sustainable neighborhoods  Continue infrastructure improvements  Maintain community-based police services 6

7. Civic Engagement Accomplishments  New website 1,400 subscribers Email blasts Post meeting audio online  Digital era Social media Mobile app City video 7

8. Civic Engagement Accomplishments  Increased audience Digital billboards Utility Bill Inserts Updated Vista  Regional meetings LA County Mayor’s Summit Speaker Rendon’s LA River Celebration 8

9. Civic Engagement Accomplishments  Business focus Mayor’s business visits Business Newsletter  Response to residents San Juan parking restrictions Parking lots on Tweedy 9

10. Five Year Trends FY 2010-2011FY 2015-16  Sales Tax $11 million  Unemployment 16.0% (2010 annual)  Public Safety 7 Homicides 326 Robberies 247 Juvenile Arrests  Sales Tax $19.8 million (projected) +80% increase  Unemployment 8.8% (2015 annual) -45% decrease  Public Safety 2 nd lowest homicide total ever recorded 40% reductions in Robberies and Juvenile Arrests 10

11. Known & Unknown Variables KnownUnknown  CalPERS increases +$848,204 for FY 2016- 2017  Medical insurance increases +$628,939 for FY 2016- 2017  OPEB ongoing costs  Minimum wage increase to $15 an hour by 2020  Unfunded replacement and maintenance costs  State legislative impacts More drought and water regulations NPDES storm water regulations Cap on solar fees  Federal impacts HUD & CDBG funding cutbacks  Asset Forfeiture funding  State land use mandates 11

12. City Fees  Water No new increases FY 2015-2016 was the last year of the five-year rate increase approved in 2011  Fee Schedule No increases during budget process Separate discussion once user fee study completed 12

13. Administration Budget Summary 13 General Fund Fiscal Year 2015-2016 Approved Fiscal Year 2016-2017 Requested Employee Services $ 947,228 $ 997,762 Supplies, Services & Capital $ 1,365,982 $ 1,312,703 TOTAL $ 2,313,210 $ 2,310,465 FY 2016-2017 Expenditures

14. Fiscal Year 2016-2017 Proposed Budget 14

15. Public Access Corporation Overview  Board of Directors represented by the City Council  Established to promote public access programming and monitor the cable franchise  In 2006, State passed DIVCA which moved authority of cable franchises to the CPUC  South Gate’s cable franchise agreement with Time Warner Cable expired in December 2014 15

16. PAC Budget  No new revenue since 2014  Available fund balance as of June 2016 $182,448  Ending fund balance as of June 2017 $104,385 16 PAC Fiscal Year 2015-2016 Approved Fiscal Year 2016-2017 Requested Employee Services - $ 30,628 Supplies, Services & Capital $ 81,375 $ 47,435 TOTAL $ 81,375 $ 78,063

17. PAC Expenditures Proposal 17 Item Description Budget Website maintenance $ 9,000 Produce 10 videos (30 seconds each) to promote City events $10,000 Archive and live-stream City Council meeting audio $5,000 Hire photographer for city events and photos $3,000 Cable service and Wi-Fi in public facilities $9,650 Fiber line maintenance to control TWC channel 3 $6,600 Commission expenses $875 Equipment, supplies and replacement costs $3,310 TOTAL $ 47,435

18. City Treasurer 18 Citizens of South Gate City Clerk City Council City Manager Administration Administrative Services Community Development Parks & Recreation PolicePublic Works City Attorney City Treasurer

19. Treasurer  Training budget increase of $2,000 CMTA conference Memberships for CMTA and CSMFO 19 General Fund Fiscal Year 2015-2016 Approved Fiscal Year 2016-2017 Requested Employee Services $17,264 $ 17,603 Supplies, Services & Capital $ 1,100 $ 4,343 TOTAL $ 18,364 $ 21,946

20. Summary  No service cuts and no new fee increases  Improved budget accuracy/transparency  Consecutive years of General Fund surplus  Continued building of reserves  Creation of internal service funds 20