1. FISCAL YEAR 2017 BUDGET PREPARATION WORKSHOP City Council November 23, 2015

2. General Fund 2

3. General Fund Major Revenue Sources 3

4. Fiscal Summary – All Funds 4 City-wide Personnel Costs Millions

5. Fiscal Summary – General Fund 5 General Fund Personnel Costs Millions

6. Other Fiscal Challenges/Risks SB481 litigation (approximately $40M in General Fund at risk) Increasing medical insurance costs (up 6% or $1.4M from FY09-15) Replenishment of reserves (General Fund policy $42M) $540M in unfunded infrastructure needs Over $300M in unfunded liabilities Potential constraints on Power Fund transfer to General Fund 6

7. Other Policy Challenges/Risks Transitioning power supplies to more renewable sources Affordable Housing/Homeless issues AB109/Prop 47 Law enforcement impacts 7

8. CalPERS Pension CalPERS Pension Costs 8 Millions

9. Workers Compensation Fund 9 Fund Balance Millions

10. Benefits Fund 10 Millions Fund Balance

11. General Fund Debt Service 11

12. General Fund 5-Year Forecast 12

13. General Fund – Fund Balance 13 Total Fund Balance $ 66,192,120 Emergency Contingency 30,951,483 Property held for resale 6,430,000 Section 108 HUD Loan Security 400,000 Capital Projects 4,271,296 City/Agency Advances 7,056,116 Component Unit/PCOC 1,432,136 General Government 3,314,868 Parking 409,794 Health 2,646,676 Public Safety 215,197 Transportation 3,581 Unassigned $ 9,060,973

14. Budget Priorities 14

15. City Council Budget Workshop No funding capacity for new programs or initiatives How does the City fund Capital Projects into the future? 15

16. General Fund Operating Budget 16 General Fund Costs by Department (in Millions)

17. Operating Budget Revenue Options  Increase current rates and fees (higher cost recovery)  Increase sales, property, or other taxes Expenditures  Personnel needs to support recommendations 17

18. Capital Projects Funding Replacement Bonds in 2020  Estimate capacity of $50M in current market New Property Tax Measure or other source High Priority Projects  Fire station replacements, expansions and upgrades  Computer Aided Dispatch replacement at Police  Improvements to the City Yard facilities  Transportation Maintenance Facility 18

19. Discussion and Questions 19