DRAFT FY 2014-2016 Resource Allocation Plan / Two Year Plan City of Sausalito DRAFT FY 2014-2016 Resource Allocation Plan / Two Year Plan “Investing in the Quality of Sausalito’s Future”

Agenda FY 2013-14 Budget 1. Budget Highlights 2. New Budget Format 3. Department / CIP Discussions 4. Summary and Outlook 5. Council Direction to Staff & Next Steps

Budget Highlights Operating Budget: Capital Improvement Plan: Rebounding economy generating increasing tax revenues – both elastic and inelastic Labor cost reforms generating significant savings of annual pension and retiree health benefit costs Maintaining city reserve funds MLK capital purchase and capital improvements leases retired Adjusts sewer utility rates to keep pace with environmental projects that protect Richardson Bay and citizens from health hazards Continuation of excellent city services: public safety, library, recreation, beautification, maintenance services Capital Improvement Plan: Continuing street improvements including concrete streets reconstruction Increased funding for small parks improvements Projected ferry terminal shoreside improvements from grant resources Employs strategic use of long-term financing to accelerate sewer infrastructure projects

Budget Highlights – Rebounding Economy Generating increasing tax revenues – both elastic and inelastic

Budget Highlights – Labor Reform Generating significant savings of annual pension and retiree health benefit costs

Budget Highlights – Maintaining Reserve Funds

Budget Highlights – MLK NOI

Budget Highlights – Sewer Fund

Budget Highlights – Capital Improvements Continuing street improvements including concrete streets reconstruction Increased funding for small parks improvements Projected ferry terminal shoreside improvements from grant resources

Budget Highlights – Continuation of excellent city services: public safety, library, recreation, beautification, maintenance services

Traditional Line-Item Activity & Performance Budget New Budget Format Item Detail Description Narrative description of purpose of department/division Ongoing Tasks Typical duties and responsibilities, by programmatic activity Strategic Plan How department/division participates in meeting the strategic plan goals and objectives Priority Calendar What are department/division Priority Calendar items Staffing Full-time equivalents (FTEs for full-time and part-time staff by position Performance Indicators Inputs, Outputs, Outcomes, Productivity, Efficiency & Effectiveness Indicators Department Revenues Revenues generated by / associated with departmental/divisional activities Department Expenditures Expenditures by major category Traditional Line-Item Activity & Performance Budget Budget Orientation Money Control Service Delivery Basic Budget Unit Line-Item Activity Results Measurement Budget Control Budget Control & Performance Measurement Budget Period Two year Multi-year

Why is the new format important? Establishes an accountability mechanism To the public for the city council’s decisions To the policy makers for department manager performance Makes spending priorities for the next year(s) Determines actual service levels of programs Allocates funds and establishes responsibility for outcomes to particular departments Informs citizens of city policy and funding decisions and priorities Provides information on the costs and activities of the city Links long-term objectives with shorter term resource usage

Long Term Financial Planning Assumptions 3% annual wage inflation 5% annual health care inflation 11% average annual pension cost increase (worst case scenarios) Most expensive implementation of assumption changes Investment return @ 5th percentile) 2% general inflation 3.5% property tax inflation 4% elastic tax inflation

Current Budget Summary Yes, Current levels of service are adequately funded (stable) The budget is structurally balanced and sound (sustainable) Reserve balances sufficient funded based on a risk analysis and mitigation strategy (resilient); but… Significant additional infrastructure investment needed: Maintain and repair 80-year-old storm drains to protect water quality of Richardson’s Bay Maintain and repair neighborhood streets and fix broken and potentially unsafe sidewalks

Capital Infrastructure Needs The City does not currently have the funds to adequately address critical infrastructure needs. Maintaining and Repairing 85-year-old Storm Drains Storm drains are completely deteriorated/rusted through Upgrades are needed to prevent pollutants, garbage and sediment from entering Richardson’s Bay Maintaining and Repairing Neighborhood Streets and Fixing Broken Sidewalks Deteriorating streets on steep hillsides create hazardous conditions Crowded sidewalks must be maintained for pedestrian safety and access for seniors and the disabled.

“Building on the Basics” Now that makes good cents!

More Questions… “What if? Why not?”