1. City of Pinole Budget Workshop April 29, 2014 1

2.  FY 2013-14 Budget Performance Update-Quarter 3  Overview of Proposed FY 2014-15 Budget  City Council Questions  Public Testimony  Council Discussion 2

3. FY 2013-14 Budget Performance 3

4.  Revenues Greater than Forecasted:  Sales Taxes + $66,572  Measure S Taxes + $80,739  Development Services Fees + $63,967  Revenues Less that Forecasted:  Cable Television - $(4,616) 4

5.  Expenditures Less than Budgeted:  Administrative Departments $35,857  Police Department $87,382  Fire Department $53,027  Public Works Department $22,685  Recreation Overall Performing to Budget$ -0- 5

6.  Year-over-Year Performance is Positive Reflecting:  Full-year collections from new and renovated restaurants  Continued growth in collections from vehicle fuel sales  New businesses at Regional Shopping Centers  Recovery of consumer spending for discount store consumables and personal electronics (General Consumer Goods reporting category) 6

7.  Prospects for Next Budget Year  Continued Growth from new Businesses such as: ▪TJ Maxx ▪Ulta ▪Krispy Kreme Donuts ▪Dickey’s Barbeque 7

8.  General Fund:  Increase Sales Tax Forecast$66,572 ▪Allocate additional Taxes to General Reserve  Measure S Fund:  Increase Sales Tax Forecast$80,739 ▪Appropriate additional to Fire Overtime For unanticipated Labor Code 4850 Workers Compensation Coverage 8

9.  Overall Revenue Performance 78.4% (including Accounts Receivable)  Combined Expenditure Performance 73.1%  Possible favorable Year End $681,185 “net results” of 5.3%  Anticipated General Reserve $836,234 Balance at June 30, 2014 (approx. 9% of Appropriations) 9

10.  Outstanding Accounts Receivable $1,531,562 as of March 31, 2014  Primary Dry Period July – December  General Fund ▪Local Property Taxes $ 800,000 ▪Redevelopment Surplus Allocation $ 700,000 ▪Vehicle Licensing Fees $ 600,000 Total $2,100,000 10

11.  Sewer Fund $2.5 million ▪Use Fees $2,300,000 ▪Hercules Reimbursement $ 250,000  30-day Accounts Payable funding required for Operations:  Payroll (including benefit charges $1.1 million  Vendor Payments $ 500,000 11

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13. Proposed FY 2014-15 Budget 13

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20.  Revenues $13,293,226  Expenditures $13,081,493 Total$ 211,733 20

21.  Revenues$13,293,226  Including: ▪Property Tax Revenues Increased 3.8% to $2.1 million ▪Sales Tax Revenues Increased 3.0% to $3.5 million ▪Measure S (Use Tax) Increased 1.6% to $1.8 million 21

22.  Excluding (prior year collections for): ▪Con Fire Service Agreement Tara Hills Area ($150,000) ▪22.5% Loss in Police Dispatch Reimbursement - Hercules ($100,000) ▪Federal DOJ COPS Grant Patrol Officers ($223, 214) ▪Fire SAFER Grant Battalion Chief Funding ($125,692) 22

23.  Expenditures$13,081,493  Including: ▪2.5% One Time Pay Adjustments (excluding PPEA & IAFF) ▪Continuation of Employee Health and Retirement Cost Sharing 23

24.  New For FY 2014-15: ▪City Clerk Part Time Administrative Secretary (un-benefited)$ 21,860 ▪Fire Part Time Administrative $ 40,215 Analyst (un-benefited) 24

25.  Also Including: ▪Fire Equipment Lease $70,433 ▪Replacement of 2 Police Vehicles $75,000 ▪L&LD Business Assistance Grants $ 5,000 25

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27.  Redevelopment “Surplus” Allocations$600,000  Property Tax Administration Lawsuit Refund $125,000  Unanticipated FY 2012-13 Tax Revenues $ 44,662  Unanticipated FY 2013-14 Tax Revenues $ 66,572 Reserve Balance $836,234 27

28. Projected Reserve Balance $836,234  Plus ▪Excess Redevelopment January 2015 Allocation (est.)$170,000 Projected June 30, 2015 Balance $1,006,234 28

29.  Conversion - Fire Station 74 ($350,000)  Chevron Property Tax Assessment Appeal ($100,000)  Stege Firing Range Lawsuit ($ 50,000)  MPA Liability Deductible (pending case) ($ 25,000) Unfunded Current Liabilities($525,000) 29

30.  Plus Unknown(s): ▪ PERB ▪Verizon Wireless 30

31. Police Department Federal Cops Hiring Grant Expiring $223,214 Funds Will Be Expended by May 23, 2014 for 2-FTE (Patrol) Funding for These Positions Will Be Reallocated to Measure S Fund 31

32.  Fire Department  Measure S ▪Add Part Time Administrative Analyst$ 40,215  Conversion Land Acquisition $350,000 Total$390,215  SAFER Grant $439,271 Funding for 4 Full Time Firefighters Requires Minimum Staffing of 15- FT 2-year funding authorization expires December 31, 2015 32

33.  General Fund  Services & Supplies (Re-open Fire Station 74)$ 36,620  PERB Labor Complaint  Two Issues on Appeal ▪Public Safety Employee Retirement Funding Contributions ▪Retroactive Fire Department Overtime 33

34.  Administrative Departments  WCCTAC Fees (estimated) $11,193  Election Costs (November 2014) $16,000  Part Time Administrative Secretary $21,860  Retiree Health Insurance $15,327  Pension Obligation Bond Payment $15,000  City Attorney Fees ($92,251)  External Recruiting Support $20,000 34

35.  Police Department  Additions: ▪Police Computer Maintenance (MDC’s) $18,000 ▪Police Dispatch 911 System Support (AT&T) $16,500 ▪Additional Overtime Police Dispatch $10,000 35

36.  Fire Department  Reductions: ▪Salary Savings (new hires) ($70,408) ▪Fire Safety Clothing (Replacement) ($25,000)  Fire Vehicle Maintenance ($19,205) 36

37.  Fire Department  Additions: ▪Fire Dispatch Charges/Fees (Con Fire) $ 16,530 ▪Part Time Admin. Analyst $ 40,215 ▪Fire Chief Employment Benefits $ 51,737 ▪Increase Fire Dept. Overtime$ 127,844 37

38.  Public Works Department  Additions: ▪Contract Traffic Signal Maintenance (CCC & CalTrans) $27,500 38

39.  Revenues $1,115,770  Including Donations/Fundraising Targets: ▪Sr. Center / Senior Foundation$40,000 ▪Youth Center / Pinole Youth Foundation$15,000 ▪General Recreation / City Sponsored Events$10,000 Total$65,000 39

40.  Revenues $1,115,770  Expenditures $1,173,357 Current Period Shortfall $ 57,587 ▪Swim Center (external allocation)$ 45,000 ▪Recreation Fund Balance$ 12,587 $ 57,587 40

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42.  Revenues $219,068  Including: ▪Fundraising ($25,000)  Expenditures $270,533 Total Operating Deficit ($51,465)  Transfer-in  General Fund Allocation $ 9,375  Carryover Funds Used $ 42,090 $ 51,465 42

43. Revenues $403,867 Expenditures $519,992 Total Operating Deficit ($116,125) Carryover Funds Available $404,754 Temporary & One-time Expenditures  General Plan Housing Element $ 30,000  Part Time Permit Technicians $ 71,715 Combined Temporary $101,715 43

44.  Revenues $28,273,801  Including: ▪Hercules WPCP Reimburse $ 1,665,874 ▪Hercules Facilities Upgrade $11,091,500 ▪Pinole Facilities Upgrade $11,091,500 ▪Pinole Ratepayers $ 4,409,657 ▪Pinole – Other Revenues $ 15,270 44

45.  Expenditures $27,230,013 ▪Plant Operations $3,331,747 ▪Collection System $ 961,440 ▪Capital Equipment $ 103,000 45

46.  Expenditures $27,230,013 Also Includes for Pinole Only: ▪Depreciation$ 580,000 ▪Debt Service $ 753,826 ▪WPCP Upgrade $21,500,000 46

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48. Wastewater Treatment and Collection 48

49.  Redevelopment Close-out Activity $250,000  Payment of Enforceable Obligations & Disposition of Residual Property  Administrative Staff Support Charges: ▪City Manager – ▪Administrative Oversight) $ 59,384 ▪Assistant City Manager – ▪(Property Disposal) $ 63,363 49

50. ▪Finance Director – Financial Mgmt/Reporting$ 59,390 ▪City Clerk – Administrative Support$ 53,611 Total Staffing Charges$235,748 50

51.  Attorney Support Charges $ 12,000  Oversight Board CATV Public Broadcasting $ 2,000 Expenditure Total$249,748 51

52.  Revenues$ 65,111 Includes:  PALC Ground Lease$ 56,111  Loan Repayments$ 9,000 Total Revenues $ 65,111 52

53.  Expenditures$ 64,547  Includes Staffing Allocations: ▪City Manager $ 5,938 ▪Assistant City Manager 10,561 ▪Finance Director 9,898 ▪Planning Manager 7,164 ▪HR/Housing Specialist 5,066 Sub Total $38,627  Housing Certification $25,920 Total Housing $64,547 53

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