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City of La Palma Proposed Budget Overview Fiscal Year 2013-14 May 7, 2013.

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Presentation on theme: "City of La Palma Proposed Budget Overview Fiscal Year 2013-14 May 7, 2013."— Presentation transcript:

1 City of La Palma Proposed Budget Overview Fiscal Year May 7, 2013

2 Tonight's Agenda Proposed Budget Overview – All Funds Department Budget Highlights and Discussion City Council direction Discussion of May 15, 2013 Study Session goals 1

3 City Manager's Budget Message Fiscally Sustainable Budget – Outlook and Assumptions Budget Strategies - 4 "R's" Budget Document Improvements 2

4 Improved Budget Document Priority Based Budgeting Expanded Staffing Information Functional Descriptions Performance Measures 2013 City Council Goals Status Economic Trends Challenges, Issues and Opportunities 3

5 City Council Goals Balanced Budget Create Proactive Economic Development Strategies Communications/Engagement Maintain Quality of Life Maintain High Public Safety Levels 4

6 Economic Trends Property and Sales Tax Impacts Economic Development Assets Tesoro revenue Interest Rates 5

7 What’s on the Horizon? Challenges, Issues and Opportunities – Tesoro - Economic Diversification – Capital Investment – Health Reform – Labor – Pension Changes – Organizational Efficiencies 6

8 Reason for Optimism In Summary – Positive Opportunities – Tesoro 20 year operative agreement – New development and new businesses – New and more comprehensive reserve policies – Creation of an irrevocable trust for OPEB liabilities – Update of the Master Fee Schedule – 10 year capital plan 7

9 The Journey So Far… Budget Development began in December Continuous review, analysis and discussion Public review and input: – Three study sessions (one on May 15) – Three City Council meeting presentations so far… Two more scheduled… All of this gets us here… 8

10 Total Revenues, All Funds $17,722,595

11 Total Expenses, All Funds $19,994,670

12 General Fund Summary 11 Projected Revenues$8,328,100 Estimated Surplus / (Deficit)($263,545)

13 General Fund Revenues $8,328,100

14 General Fund Expenditures $8,591,645

15 General Fund Budget Department Cuts: Administration $ (32,230) Community Development $ (144,220) Finance $ (8,000) Police $ (77,300) Public Works $ (44,500) Recreation and Community Services $ (157,050) $ (463,300) Citywide Cuts: Energy Savings $ (30,000) Reduce Brea IT Service (2 days/week) $ (23,100) Eliminate Management Wellness benefit $ (4,500) City Manager COLA Elimination $ (2,500) OPEB Trust Savings (One-Time) $ (91,000) $ (151,100) TOTAL EXPENDITURE CUTS$ (614,400) Reductions and Revisions – Progress Towards Fiscal Sustainability

16 General Fund Budget 15 Revenue Enhancements – Progress Towards Fiscal Sustainability Increased interest earnings $ 10,000 Increased Corporate Connection funding $ 6,000 Fee revisions $ 50,000 Summer Concerts Food Trucks/Beer and Wine $ 5,000 Additional advertising/alternative advertising $ 40,000 Share Crossing Guard Services (reimbursement) $ 8,000 Tesoro Additional Sales Tax $ 250,000 TOTAL ADDITIONAL REVENUE: $ 369,000

17 General Fund Budget 16 Use of Reserves – Progress Towards Fiscal Sustainability One-Time Use of Reserves for Operating (“Bridge” Amount) $ (263,545) Purchase of Street Lights from SCE $ (600,000) Energy Capital Projects $ (1,280,000) 800 Mhz Radio Upgrade (Police) $ (200,000) City Council 2013 Goals (Start-up Expend) $ (50,000) TOTAL ONE-TIME USE OF RESERVES (FY ) $ (2,393,545)

18 General Fund Reserves 17 Projected General Fund Balance 06/30/2013 $ 13,618,200 Estimated FY General Fund Expend $ 8,591,645 Estimated FY General Fund Revenue $ 8,328,100 Variance (Deficit) / Surplus $ (263,545) Transfer to COR $ (400,000) Triple-Flip Over-Allocation $ (162,500) One-time Use of Reserves $ (2,130,000) TOTAL RESERVES USE $ (2,692,500) Projected General Fund Balance 06/30/2014 $ 10,662,155 06/30/2014 FB as % of Expend124.1% Dollar Amount Reserves above 100% $ 2,070,510

19 Impacts and Consequences 10.0 FTE eliminated / proposed for elimination – FY Adopted Budget: 64.0 FTE – FY Amended Budget: 60.0 FTE – FY Proposed Budget: 54.0 FTE Reduction in building/planner customer service Reduction to Public Works response time Reduced technology support Reduced part-time support (Recreation) 18

20 Impacts and Consequences Reduce Concerts in the Park (from 8 to 6) Eliminate awards, advertising, supplies for: – CAB Events (Arbor Day, Memorial Day, Tree Lighting, etc) – Halloween Carnival – Fitness Run For Fun – La Palma Days Reduce overtime, training, professional association memberships Reduced tree maintenance Suspension of Police K-9 program 19

21 Department Budget Highlights and Overviews

22 Administration City Council Legal Services City Manager City Clerk Community Promotions Intergovernmental

23 Administration Functional Tasks City Manager – Organization-wide Management – Oversee City Budgets – Monitor Legislative Activities City Council Support – Support City Council Activities City Clerk – Manage Legislative and Business License Processes – Conduct Municipal Elections – Public Records and Brown Acts Community Promotions – Manage SEAACA Contract – Maintain Website – Oversee OCFA Agreement Legal Services – Oversee City Attorney and Labor Attorney services Human Resources – Labor-Management Relations – Benefits, Recruitment, Classification, Performance Management – Training Risk Management – Protect the Assets of the City Through Proactive Activities & Policies – Manage Claims Against the City – Identify Risk Hazards/Promote Safety Information Technologies – Manage Citywide Technology Infrastructure and Equipment 22

24 Administration Performance Measures 23 # of City Employees per 1,000 Population # of Press Releases and E-Blasts Issued # of Agendas/Staff Reports Posted to Website # of Sick Leave Hours Used per 1,000 Hours Worked % of Business Licenses Renewed Online # of Workers Compensation Claims per 100 FTE

25 Administration Changes and Impacts FY Changes – Across the board reductions in Meetings, Trainings, and Supplies budgets – Elimination of Minutes Clerk at meetings – Reduction in information technology support – 4% savings on City Attorney costs Impacts – Less meeting and training dollars available for City Council and Administration staff – Reduced service to public at meetings and reduced productivity – Reduced ability to respond to technology issues/problems – Potential liability risks associated with utilizing City Attorney less

26 Phone System Upgrade (carried over from FY ) Labor Negotiations as current MOU’s expire June 30, 2014 City Attorney RFP Information Technology RFP Administration FY Budget Highlights 25

27 Finance Department

28 Finance Functional Tasks 27 Ensure fiscal stability through long-term financial planning Provide internal financial support to all City functions Ensure accounting and financial rules followed Fulfill all State Controller and Grand Jury requests for payroll data/reports Analyze projected expenses to ensure adequate cash flow Provide full spectrum of utility billing customer service Oversee internal controls

29 Finance Performance Measures 28 Promote use of auto pay/credit card payment options for all utility customers – Convenient, customer friendly – The way business done in 2013 Implement “ePayables” invoice payment process – Increased efficiency – Lower costs

30 Reduced training budget – Will need to find low cost/free methods for training and updates Reduced use of consultant services – Elimination of property tax consultant 12.0% Reduced expenses since FY Finance Changes and Impacts FY

31 Continue improved financial reporting: – Expanded quarterly reports Continue updating/modernizing reserve policies: – Special revenue and Enterprise funds next Explore new investment options (within City Council approved policies) Continue support of citywide operations through sound financial practices Finance FY Budget Highlights 30

32 Community Development Department DIVISIONS Land Use PlanningBuildingandSafety Code Enforcement Econ Dev Housing Successor Agency Responsibilities

33 Community Development Functional Tasks Administration – Manage Contract Personnel – Implement Housing Programs – Implement ED Plan Building and Safety – Plans examination – Permit issuance – Construction Inspection Code Enforcement – Prevent, Detect, & Investigate Code Violations – NDPES Compliance – FOG Program Planning – Current & Advance Planning – Entitlement processing – CEQA compliance 32

34 Community Development Performance Measures Administration – Number of contacts made – Number of Articles prepared – % of new B/L’s Building and Safety – Number of Plan Checks – Number of Permits issued – Number of Inspection Code Enforcement – Number of Inspections – Number of Cases Closed – % of Citizen initiated cases Planning – Number of entitlements processed – Number of reports prepared – % of Plan Checks in 7 days 33

35 Changes: – Reduction of 33% in full-time staffing levels – Elimination of department Administrative support and Permit Technician Impacts: – Consolidated public counter hours – Walk-ins 7:30 am to 12:00 pm – Appointments 1:00 pm to 5:30 PM Community Development Changes and Impacts FY

36 22.2% Reduction in Personnel Costs 18.7% Reduction in Maintenance and Operations Expenses 20.2% Reduction in Total Departmental Expenditures Community Development FY Budget Highlights 35

37 Recreation and Community Services Making a positive difference in our community by …encouraging citizen involvement… …fostering human development… …and strengthening community through people, parks & programs.

38 Recreation and Community Services Functional Tasks 37 Administration – Frontline customer service for program registration and facility reservations – Community partnerships – Staff Development Youth and Family Services – Recreation programming for youth, teens, & families – Teen job training – Water safety classes Neighborhood and Community Services – Citywide special events – Volunteer recruitment, training, and retention – Staff support to Community Activities & Beautification Committee Health and Wellness – Education, Safety, and Recreation contract classes – Social Services (USDA, Meals On Wheels) Facility Operations & Resources – Safe and Attractive spaces and activities for recreation, sports, meetings, etc. – Community shelter during disasters – Marketing

39 Recreation and Community Services Performance Measures 38 Number of volunteer hours Number of facility rentals Number of water safety/fitness class participants Corporate Connection Sponsorship Revenue Customer Satisfaction Survey

40 Elimination of 3.0 FTE – 1.0 Full-time Senior Office Assistant – 2.0 FTE Part Time Staff Customer Service Impacts Central Park Staffed Hours Reduced Elimination of Teen Afterschool Program Contracting Pee Wee Sports All program materials/supplies reduced Recreation and Community Services Changes and Impacts FY

41 26.6% Reduction in Personnel Costs 15.4% Reduction in Maintenance and Operations Expenses 23.5% Reduction in Total Departmental Expenditures 11.7% Revenue Increase General Fund Dependence Reduced – FY : 76.2% – FY : 65.3% Most programs/services maintained Recreation and Community Services FY Budget Highlights 40

42 Police Department

43 Police Functional Tasks 42 Patrol Investigations Traffic Enforcement/Accident Investigations Communications and Records Citywide Disaster Preparedness Quality of Life Programs and Service

44 Police Performance Measures 43 Response Times to Priority 1 Calls for Service (2:39) Part I Crimes Reported ( /340) Case Closure Rates Crimes (33%) Number of Total Arrests (788) Accident Investigations / Traffic Enforcement (193-63) Citizen/Internal Complaints (IA’s) Overtime Costs (How managed)

45 Researching Feasibility to Outsource Dispatch Services –Closed Front Counter New CAD and Records Management System (Spillman) –Increased Efficiency/Accuracy Reorganization-Management Analyst/ASB Sgt –Outsource Disaster Preparedness Suspension of K-9 Program-Increased reliance on Mutual Aid Police Changes and Impacts FY

46 Reduction in Crossing Guard Contract Costs – $8,000-Cypress – Shared costs: $4,000-AUHSD, $4,000-Centralia Reduction in Annual records system Maintenance Fees ($65,000) Realization of RNSP Asset Seizure Funds – Est.$160,000 for FY A Potential Cost Savings by Outsourcing Dispatch ($50,000- $100,000) Suspension of K-9 Program ($6,500) Police FY Budget Highlights 45

47 Public Works Department

48 Public Works Functional Tasks 47 Administration Administration – Manage Contracts – Administration of field and office operations – Customer service – Employee Administration Engineering Engineering – Private Development Review – Project Management of CIP – Construction Inspection – Utility Management and Inspection (SCE, Time Warner, So Cal Gas, etc.) – NPDES Compliance – Traffic Safety Committee Maintenance Maintenance – Block Walls, Sidewalks, Graffiti, Parks, Street Trees and Medians, and Street Lighting maintenance – Street Repairs, Traffic Signals, and Traffic Control maintenance – Facilities Maintenance

49 Public Works Functional Tasks 48 Water Water – Treatment – Distribution – Water Billing – Customer Service Inquiries Sewer Sewer – Management of the sewer maintenance contract services – Management and Inspections of contract services

50 Public Works Performance Measures 49 Respond to and eradicate 95% of graffiti complaints within 72 hours of receiving notice (Council goal = Maintain quality of life) Identify and apply for at least one grant award funding source for a street repair project by June 30, 2014 (Council goal = Balance the budget) Continuously improve the overall pavement condition Citywide and minimize claims to the City due to damaged infrastructure (Council goal = Maintain high public safety level)

51 Public Works Changes and Impacts FY Changes: – Reduction of Maintenance Worker from Full-time to 27 hours per week Impacts: – Graffiti and miscellaneous aesthetic duties response time may increase – Potholes and miscellaneous potential liability items response time may increase – Less staff for events such as La Palma Days, 4 th of July run, etc. – Less staff for night and weekend rotation for on-call emergency duties

52 Public Works FY Budget Highlights % Reduction in Personnel Costs for one Maintenance Worker Maintain budgets the same as FY even with increase in State requirements/mandates

53 Capital Improvement Program $2.86 million proposed for FY : – Arterial and Residential Rehabilitation projects – Water and Sewer improvements Measure M, Gas Tax, Water Fund, Sewer Fund, and Capital Outlay Reserve (COR) funding sources – COR funded with $400,000 transfer from General Fund

54 CIP Summary by Project Type FY and FY ProjectFY FY Arterial Streets$375,000$900,000 Residential Streets655,000355,000 Water Improvements535,000465,000 Sewer Improvements525,000 Community Center and Parks175,0000 Facilities595, ,000 Total:$2,860,000$2,385,000 53

55 Budget Schedule Study Session #3: May 15 Budget “Question and Answer”: May 21 Public Hearing and Anticipated Budget Adoption: June 4

56 City Council and Public Comments and Questions

57 City of La Palma Proposed Budget Overview Fiscal Year May 7, 2013

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