Fiscal Year 2015/16 Proposed Budget - Recap City of Barstow June 15, 2015 Barstow City Council The crossroads of opportunity… where the best is yet to come!

LAST MINUTES CHANGES Section 11 – Wastewater Fund Reclassed FY Projected Operating Expenditures $42,248 to CIP Section 12 – Solid Waste Fund - Increased FY Projected Capital to $25,727 to balance to CIP Section 14 - Special Revenue Funds / Section 15 Capital improvement Budget (CIP) TRIP – Added $62,434 on CIP Worksheet – Henderson Cameron Project to include cumulative interest earned in construction fund Revenue and Capital $117,000 for SANBAG Reimbursement of Lenwood Grade Separation land acquisition (Fund Balance and CIP) Measure I - Added $9,996 to FY Capital to balance to projected CIP Grants Reimbursable – Adjusted FY First Avenue Bridge PAED Grant - Revenue and Capital to conform to projected CIP Development Fees – subtracted $2,395 from FY Capital to balance to projected CIP Worksheet

GENERAL FUND OPERATING BUDGET

General Fund Operating Budget General Fund Overview General Fund Revenues ◦ Projected Revenues:$ Million General Fund Operating Expenditures ◦ Projected Expenditures:$ Million The proposed General Fund Operating Budget is balanced!

Sales Tax:$07,970 Property Tax:$03,936 TOT:$02,900 Franchise Fees:$00,961 Other Revenues:$03,948 Total GF Revenues:$19,715 General Fund Operating Budget Major General Fund Revenues (in thousands)

General Fund Expenditures & Capital Transfer As part of the proposed budget, there is a proposed transfer of $1,100,579 to fund capital expenditures ◦ Taking the proposed transfer into account, an overview of the General Fund balances includes the following:  Projected Beginning Fund Balance:$ 6.3 million  plus Projected FY 15/16 Revenues:$19.7 million  minus Projected FY 15/16 Expenditures:$19.7 million  minus Projected FY 15/16 Capital:$01.1 million  ENDING FY 15/16 FUND BALANCE:$ 5.9 million

General Fund Operating Budget General Fund Expenditure Highlights Proposed FY 15/16 GF expenditures of $20.8 million represents a 14% increase above projected FY14/15 expenditures ($18.2 million) ◦ Expenditure variance is attributed to  Carryforward CIP of $710K  CalPERS Unfunded Liability charge of $549K  Salary - 2% COLA and Normal Step increases 465K  New positions – $342 K  Police Captain, Police Office Assistant, Building Inspector and Public Services Assistant I  Transfer of staff from other funds to General Fund $320K  PY savings from vacant positions $280K

General Fund Budget Fund Overview FY 2015/16 General Fund Budget Summary Category Description Category Amount Projected Available Fund Balance – June 30, 2015 $ 6,308,418 Estimated Revenues – FY 2015/16 $ 19,714,951 Carry Forward Commited Capital $ 710,000 Estimated Expenditures – FY 2015/16 $ (19,700,621) Estimated Capital Transfer – FY 2015/16 $ (1,100,579) Projected Ending Fund Balance - June 30, 2016 $ 5,932,169 LESS - 20% Restricted for Working Capital Reserve $ (3,940,124) LESS - 5% Restricted for Emergency Reserve $ (985,031) PROJECTED ENDING UNRESTRICTED FUND BALANCE $ 1,007,014

FIRE PROTECTION DISTRICT

Fire Protection District Budget Overview Projected FY 15/16 Revenues ◦ Projected Revenues: $4.74 Million Projected FY 15/16 Expenditures ◦ Projected Expenditures: $5.06 Million

At the start of FY 14/15, the BFPD had negative fund balance of ($291,600) The District is expected to end the FY 2014/15 fiscal year with a projected negative fund balance of ($822,212) The additional losses have been a result the following two primary factors: ◦ SBCERA’s retirement costs, which are significantly higher than CalPERS, especially for newly hired fire fighters ◦ The impact of property tax reassessments based on substantially lower property valuations To stabilize the finances of the District, the BFPD is currently working with CalPERS to develop a plan to transition the BFPD from SBCERA to CalPERS ◦ The transition is expected to take about a year and is expected to be ready for implementation in the Spring of 2016 ◦ Savings are anticipated to range between $300K and $400K Property taxes have also started to rebound. The anticipated recapture of property tax from the previous reductions in assessed valuations will also be important in stabilizing the District’s finances. Fire Protection District Budget Budget Recap

Fire Protection District Budget Fund Overview FY 2015/16 Fire Protection District Budget Summary Category Description Category Amount Projected Unrestricted Fund Balance - July 1, 2015 $ (822,212) Estimated Revenues - FY 2014/15 $ 4,740,308 Estimated Expenditures - FY 2014/15 $ (5,063,859) Projected Ending Fund Balance - June 30, 2016 $ ($1,145,763)

WASTEWATER FUND HIGHLIGHTS

Wastewater Fund FY 15/16 Budget Overview Projected Revenues ◦ Beginning Fund Balance:$0.46 Million ◦ Projected Revenues: $5.55 Million ◦ TOTAL REVENUES:$6.01 Million Projected Expenditures ◦ Wastewater Plant Expenditures:$2.60 Million ◦ Pre-Treatment Expenditures:$0.62 Million ◦ Soapmine Road Expenditures:$0.18 Million ◦ General Fund II Loan Repayment$2.00 Million ◦ General Fund Cost Allocation:$0.42 Million ◦ Wastewater Capital Expenditures:$0.03 Million ◦ TOTAL EXPENDITURES:$5.85 Million

Wastewater Fund Budget Fund Overview FY 2014/15 Wastewater Budget Summary Category Description Category Amount Projected Unrestricted Fund Balance - July 1, 2014 $ 462,036 Estimated Revenues - FY 2014/15 $ 5,545,000 Estimated Expenditures - FY 2014/15 $ (3,816,796) Loan Repayment to General Fund II $ (2,000,000) Estimated Capital Expenditures - FY 2014/15 $ (31,660) Projected Ending Fund Balance - June 30, 2015 $ 158,580

GENERAL FUND II HIGHLIGHTS

General Fund II Overview GF Fund II FY 15/16 Budget Review ◦ Beginning Fund Balance:$10,277,579 ◦ Total Revenues:$ 130,000 ◦ Loan Repayment – WW Fund$ 2,000,000 ◦ Total Expenditures:$ 613,495 ◦ Program Loan To Measure I Fund:$ 2,000,000 ◦ Projected Ending Fund Balance:$ 9,794,084 GF II Budget Issue Highlights ◦ GF II expenditures are composed of the following primary components:  Retiree medical insurance costs  Cost allocation from General Fund  City assuming responsibility for the vacant hospital facility ◦ GF II revenues are derived from interest earnings ◦ In order to fund street renovation projects, staff proposes that the GF II enter into a program loan with the Measure I Fund in the amount of $2 million

General Fund Coverage Taking into account the proposed General Fund and General Fund II budgets, the City remains in strong financial condition ◦ Fund Balance (7/1/2015)$ 16,585,997 Plus – Revenues and Carry Forward CIP $ 20,554,951 Plus – WW Fund Loan Repayment$ 2,000,000 Less - Operating Expenditures ($ 20,314,116) Less - Capital ($ 1,100,579) Less – Measure I Program Loan($ 2,000,000) Projected Ending Combined Fund Balance$ 15,726,253 ◦ Even with the proposed funding commitments, the City will have +/-9 months of coverage to operate without new revenues  The recommended coverage is 3 – 5 months

SOLID WASTE FUND HIGHLIGHTS

Solid Waste Fund Budget Overview Projected Revenues ◦ Projected Revenues: $3.94 Million Projected Expenditures ◦ Projected Expenditures:$4.28 Million

Solid Waste Budget Fund Overview FY 2014/15 Solid Waste Budget Summary Category Description Category Amount Projected Fund Balance - July 1, 2015 $ 1,386,186 Estimated Revenues - FY 2015/16 $ 3,935,323 Estimated Expenditures - FY 2015/16 $ (4,281,953) Estimated Capital Expenditures - FY 2015/16 $ 0 Projected Ending Fund Balance - June 30, 2015 $ 637,301

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