1. CITY OF SANTA BARBARA Budget Overview APA Citizens Academy Paul Casey, Assistant City Administrator October 15, 2013

2. City of Santa Barbara Finance Department 2 PRESENTATION OUTLINE  Overview of State of City Finances  General Fund  Multi-Year Forecast  Salary and Benefits  Enterprise Funds

3. OVERVIEW City of Santa Barbara Finance Department 3

4. 4 OVERVIEW  National recession severely impacted local governments statewide  Rising pension costs have exacerbated economic impacts  City made it through tough times in a good financial condition  Quick and early action  10% reduction to General Fund  Budget reflects much improved local economy  General Fund tax revenues have been strong

5. City of Santa Barbara Finance Department 5 OVERVIEW  Challenges still ahead  Unfunded Infrastructure - $200-400 million  Increasing pension costs  Enterprise Funds  Only one enterprise fund – the Golf Fund – was impacted significantly by the recession  Remaining enterprise funds are in good shape and reserves are fully funded

6. City of Santa Barbara Finance Department 6 CITYWIDE TOTALS Operating Budgets Total FY 2014 Operating Budgets - $264.1 Million

7. GENERAL FUND City of Santa Barbara Finance Department 7

8. 8 GENERAL FUND GENERAL FUND Expenditures – by Department Total FY 2014 Expenditures - $110,447,263

9. City of Santa Barbara Finance Department 9 GENERAL FUND GENERAL FUND Expenditures – by Department Total FY 2014 Expenditures - $110,447,263 Public Safety = 54%

10. City of Santa Barbara Finance Department 10 GENERAL FUND GENERAL FUND Expenditures – by Department Total FY 2014 Expenditures - $110,447,263 Non-Safety Operating Departments = 33%

11. City of Santa Barbara Finance Department 11 GENERAL FUND GENERAL FUND Expenditures – by Department Total FY 2014 Expenditures - $110,447,263 Administrative Departments = 11%

12. City of Santa Barbara Finance Department 12 GENERAL FUND GENERAL FUND Expenditures – by Department Total FY 2014 Expenditures - $110,447,263 Debt Service $ 350,745 Capital 1,000,000 Comm. Prom. 2,011,213 Approp. Reserve 431,200

13. City of Santa Barbara Finance Department 13 CITYWIDE TOTALS FY 2014 Capital Program Total Capital Program - $40,149,006 $20.2 Million $11.3 Million

14. STATE OF CITY’S FINANCES STATE OF CITY’S FINANCES Sales Tax Revenues – 2005 - 2012 2005 20072008 2009 2010 2011 2012 2006 $20.3 M$19.1 M

15. STATE OF CITY’S FINANCES STATE OF CITY’S FINANCES Property Tax Revenues – 2005 - 2012 2005 2007 2008 2009 2010 2011 2012 2006 $23.2 M$23.7 M

16. STATE OF CITY’S FINANCES STATE OF CITY’S FINANCES TOT Revenues – 2005 - 2012 2005 2007 200820092010 20112012 2006 $12.9 M $13.6 M

17. STATE OF CITY’S FINANCES STATE OF CITY’S FINANCES Budget Changes – Last 4 Years

18. STATE OF CITY’S FINANCES Expenditures Trends $105.7M $97.9M Amounts Exclude Capital

19. STATE OF CITY’S FINANCES STATE OF CITY’S FINANCES Position Changes – Last 2 Years

20. STATE OF CITY’S FINANCES STATE OF CITY’S FINANCES Position Totals 1,0671,0761,0841,045 1,014 609 594 999 1,011

21. STATE OF CITY’S FINANCES STATE OF CITY’S FINANCES Status of Reserves City of Santa Barbara Finance Department 21

22. City of Santa Barbara Finance Department 22 Multi-Year Projections

23. FY 2014/2015 PROJECTIONS Key Tax Revenues

24. SALARY AND BENEFITS City of Santa Barbara Finance Department 24

25. City of Santa Barbara Finance Department 25 FY 2014 & 2015 PROJECTIONS Salary and Benefits  Salary Trends  Retirement Costs  Health Insurance Premiums

26. FY 2014 & 2015 PROJECTIONS Salary & Benefits – Last 5 Years

27. FY 2014 & 2015 PROJECTIONS PERS Assumptions City Paid Portion of Contribution Rates

28. City of Santa Barbara Finance Department 28 ENTERPRISE FUNDS

29. City of Santa Barbara Finance Department 29 ENTERPRISE FUNDS  Funded almost entirely from user fees (no tax support) Water Wastewater Airport Downtown Parking Waterfront Golf Solid Waste

30. City of Santa Barbara Finance Department 30 ENTERPRISE FUNDS Water Fund  $33.2M Operating Budget; $11M Capital Budget  Water sales higher than normal – dry weather  General decline due to increased conservation, however  $57 million in capital improvements over 13 years  Financed by low-interest State loans from DWR  $18.2 million in capital projects over next 2 years  $8.1 million in annual main replacement program  $7.9 million to replace Recycled Water System

31. City of Santa Barbara Finance Department 31 ENTERPRISE FUNDS Wastewater Fund  $14.7M Operating Budget; $12.5M Capital Budget  $26.9M in capital projects planned over next 2 years  $18.5M from State Revolving Loan (or Bonds)  $1.4M from Reserves  Capital Program – 2014 & 2015  El Estero Air Process Improvements - $18.5M  Pipeline replacement - $2.3M + $1.8 M = $4.1M  Other improvements (primarily El Estero) - $4.3M

32. City of Santa Barbara Finance Department 32 ENTERPRISE FUNDS Airport Fund  $18.4M Operating Budget  Terminal construction complete  Additional revenues will cover increased costs of larger facility  Passenger counts have been on the rise  Larger terminal + new TSA requirements impacting security operations  Recommended budget includes a reorganization of security operations and the addition of 4 full-time staff

33. City of Santa Barbara Finance Department 33 ENTERPRISE FUNDS Waterfront Fund  $11.9M Operating Budget; $1.5M Capital Budget  Revenues primarily derived from:  Slip fees  Parking fees  Lease income from shops and restaurants  Loss of lease from Maritime Museum ($144,000/yr)  Estimated $300,000 in landing fees from cruise lines

34. City of Santa Barbara Finance Department 34 ENTERPRISE FUNDS Golf Fund  $1.9M Operating Revenue  Finances Struggled Through Recession  Revenues and play have gradually increased since their lows in 2010  FY 2014 revenues reflect 11.3% increase  Closure of Ocean Meadows Golf Course (assumed 20%)  $1 increase to most green fees  New Player Course Improvement Fee of $1 per round – dedicated to specific projects

35. City of Santa Barbara Finance Department 35 ENTERPRISE FUNDS Downtown Parking Fund  $7.1M Operating Revenue  $2.3M in Capital Over Next Two Years  Accounts for operation and maintenance of:  7 hourly surface lots; 5 hourly parking structures; 2 commuter lots (permit); two 90-minute lots  Integral to economic vitality of City – Saved From State in Redevelopment Dissolution  Hourly parking revenues reached all-time high in FY 2012 at $4.725 million ($4.5 M in 2008)

36. City of Santa Barbara Finance Department 36 ENTERPRISE FUNDS Solid Waste Fund  Accounts for all City solid waste activities:  Collection, Disposal, Recycling, Regional programs  Operating budget totals $19.9 Million  $17.3 M paid to MarBorg  FY 2014 recycling revenues estimated $449,816

37. Questions? City of Santa Barbara Finance Department 37