1 city manager’s proposed budget for fiscal years 2010 and 2011 city of palo alto finance...
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City Manager’s Proposed Budget for Fiscal Years 2010 and 2011
City of Palo AltoFinance Committee
May 13, 2009
General Fund Capital Improvement ProgramPublic Works Department – General FundAdministrative Service Department
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Proposed Budget FY 2010 & 2011 CIP Committee Process
CIP Committee began meetings in September 2009 Identified completed projects in the current year that
had remaining appropriations that could be returned to reserves $4.5 million returned to reserves $2.9 million returned to Infrastructure Reserve
Reviewed prioritization criteria Reviewed of projected Infrastructure Reserve
Balance Reviewed current capacity-staff’s ability to start and
complete projects as budgeted
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Proposed Budget FY 2010 & 2011 CIP Prioritization Criteria
Council direction
Leveraged funding (Public/Private Partnership/Grants/Impact Fees)
Health and safety requirements
Code/legal requirements
Operational needs and efficiency
Sustainability
Community Priorities
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Proposed Budget FY 2010 & 2011
Staffing Capacity to accomplish Projects Committee evaluates proposed program to ensure staff’s
capacity to accomplish projects is not exceeded
Current capacity is $10 to $14 million in capital projects each year
When new projects are added other projects are deferred
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Proposed Budget FY 2010 & 2011
FY 2010 General Fund CIP Budget
Buildings and Facilities $ 5.3 million Parks and Open Space $ 0.7 million Street and Sidewalks $ 2.1 million Miscellaneous $ 2.9 million
Total FY 2010 General Fund Projects $ 11.0 million (includes $55.8 million reimbursements) Proposed Project Budgets $ 67.2 million Less reimbursements ($ 56.2 million)
Total Net General Fund CIP $ 11.0 million
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Proposed Budget FY 2010 & 2011
FY 2011 General Fund CIP Budget
Buildings and Facilities $ 6.3 million Parks and Open Space $ 2.0 million Street and Sidewalks $ 2.5 million Miscellaneous $ 2.2 million
Total FY 2011 General Fund Projects $ 13.0 million (includes $4.5 million reimbursements) Proposed Project Budgets $ 17.5 million Less reimbursements ($ 4.5 million)
Total Net General Fund CIP $ 13.0 million
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Proposed Budget FY 2010 & 2011 Infrastructure Reserve (IR) Five year projection
Infrastructure Reserve Projected Balance
-2,000,0004,000,0006,000,0008,000,00010,000,00012,000,00014,000,000
2010 2011 2012 2013 2014
Fiscal Year
Bal
ance
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Proposed Budget FY 2010 & 2011
Major Projects - FY 2010 Downtown Library Improvements (Measure N): $3.5 million
Mitchell Park Library & Community Ctr(Measure N): $47 million
Civic Center Improvements: $4.2 million
Annual Street Maintenance: $1.8 million
Annual Sidewalk Repairs: $0.8 million
Jr. Museum & Zoo New Bobcat Habitat: $0.5 million
Downtown Tree Grates: $0.3 million
Ventura Community Ctr. & Park: $0.2 million
Rinconada Pool Plaster: $0.2 million
Baylands Emergency Access Levy Repair $ 0.2 million
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Proposed Budget FY 2010 & 2011
FY 2010 - Other General Fund Projects Art in Public Places - $50,000
Fire Apparatus Equipment - $69,000
Replacement of Gym B Bleachers (Cubberley) - $56,000
Building System Improvements - $100,000
Dimmer and Lighting System Replacements - $145,000
Children’s Theater Audio/Visual/Monitoring System Replacements - $100,000
Roofing Replacements - $150,000
Ted Thompson Garage Improvements - $67,000
Open Space Lakes/Ponds/Trails Maintenance - $166,000
Street Light Improvements - $120,000
Los Altos Treatment Plant site 3rd and final payment -$2.2 million
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Proposed Budget FY 2010 & 2011
Proposed Project Funding Sources FY 2010 Measure N Library Bonds: $50.5 million General Fund: $3.7 million Infrastructure Reserve: $11.0 million Enterprise Funds: $0.1 million Gas Tax: $0.8 million California Ave Parking District: $0.1 million Others: $0.6 million
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Proposed Budget FY 2010 & 2011 Infrastructure Reserve
FY 2010 General Fund contributions - $10.9 million $8.7 million for on-going replacement and rehabilitation
$2.5 million designated for individual projects $1.2 for Salary and Benefits
$2.2 million for 3rd and last payment on LATP site
FY 2011 General Fund contributions - $10.2 million $10.2 million for on-going replacement and rehabilitation
$0.5 million designated for individual projects $1.2 for Salary and Benefits
IR can support the current five-year plan $1 million year end budgeted transfer suspended in FY 2009 and
FY 2010, resumes in FY 2011 Infrastructure Reserve is projected to be below $3 million in FY
2011
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Proposed Budget FY 2010 & 2011
Update to Backlog Report Initial Backlog Report
Total Backlog (20 years) $ 455,220 2008-12 GF CIP appropriations ($ 50,622) Total Unfunded Backlog 2008-12 $ 404,598
Updated Backlog Report Total Backlog (20 years) $ 449,949 2009-13 GF CIP appropriations ($ 64,164) Total Unfunded Backlog 2009-13 $ 385,785
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Proposed Budget FY 2010 & 2011 Department Changes
Public Works DepartmentRevenue Increase Plan Check Fee: $ 52,500 Increase Building/New construction permit revenue $ 30,000 Decrease street opening permit revenue ($122,000) Allocated Revenue Decrease in FY 2010 ($138,000) and increases in
FY 2011 $46,000
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Proposed Budget FY 2010 & 2011 Department Changes
Public Works DepartmentCitywide Changes
Personnel Benefits Costs increasing $325,000 in FY 2010 and $178,000 in FY 2011
Allocated charges decrease ($304,000) in FY 2010 and increase $106,000 in FY 2011
Expense Reallocate 4.0 FTE to Capital and Storm Drain Fund
($414,000) Increase salary/benefits expense 0.24 FTE ASD personnel
reallocated to PWD $ $32,000 Increase supplies/materials for graffiti removal $4,000 Increase facility maintenance for backflow device testing &
repair $15,000 Increase facility maintenance supplies $67,500
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Proposed Budget FY 2010 & 2011 Department Changes
Public Works DepartmentService Level Reductions
Elimination of 1.9 FTE Engineer, Engineering Technician III ($226,000) Savings strategy#1 Impact: Service level impacts for these eliminations are expected to be
mitigated by reduced service demands due to the current recession
Second Tier Reductions Elimination Tree Trimming Contract ($379,000)
Impact: May result in transferring responsibility for routine tree trimming in parking strips to property owners. Would require a change to policy and municipal code. This would not impact Utilities line clearing or emergency tree trimming/clearing
OR Contract Out Tree Trimming
Net Expense Reduction: ($46,000) Elimination of 1 FTE
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Proposed Budget FY 2010 & 2011 Department Changes
Administrative Services Citywide Changes Cost Plan Revenue decreasing ($588,000) in FY 2010 and
increasing $131,000 in FY 2011 Personnel Benefits Costs increasing $134,000 in FY 2010 and
$128,000 in FY 2011 Expense Eliminate 2 FTE –Accounting Specialist & Storekeeper
($177,000)- Savings strategy#1 Reallocate 5.2 FTE to Enterprise Funds ($625,000) Increase temporary salaries $30,000 Decrease non-salary expense ($101,000)–Savings strategy #1
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Proposed Budget FY 2010 & 2011 Department Changes
Administrative Services Printing and Mailing Internal Service Fund
Citywide Changes Cost Plan expense decreasing ($17,000) Personnel Benefits Cost decreasing ($49,000)
Revenue Decrease printing/mailing service revenue ($52,000)
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Proposed Budget FY 2010 & 2011 Department Changes
Administrative Services Technology Internal Service FundCitywide Changes Cost Plan Expense decreasing ($49,000) in FY 2010 and
($84,000) in FY 2011 Personnel Benefits Costs increasing $33,000 in FY 2010 and
$5,000 in FY 2011 Revenue Increase reimbursements from City departments $217,000 Reimbursements for CIP decreases ($6.1 million) in FY 2010 and
increases $1.1 million in FY 2011Expense CIP expense decreases $2.8 million in FY 2010 and increases
$2.5 million in FY 2011 Decrease in non-salary expense ($531,000)-Savings strategy#1
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Proposed Budget FY 2010 & 2011 Department Changes
Administrative ServicesGeneral Benefits/Insurance and Retiree Health
Internal Service Funds
Increase in pension expense $0.5 million Increase in medical expense $1.2 million Increase in other benefits $0.5 million Increase in citywide retiree medical $0.7 million
General Fund contribution suspended $ 2.1 million in FY 2010 and resumes in FY 2011