city of alameda budget study session april 18, 2013 › 2013 › 05 › 2013-04... ·...

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City of AlamedaBudget Study Session

April 18, 2013

Budget Study Session – April 18, 20132

Budget Presentation Outline Two Year Budget Process for FY13-14 and FY14-15

All Fund and General Fund Budget Overview

General Fund Budget: Revenue / Expenditure Projections

Options for Addressing Projected Budget Deficits

Other Budget Highlights

Budget Challenge

Council Direction on Proposed Budget

EOC Update

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Why A Two Year Budget ? Time savings realized during two year period

Requires more conservative revenue and expense projections

Improve funding certainty for departments, employees and programs

Limits the “use it or lose it” syndrome

Allows the focus to be more on policy versus balancing the budget

Results in improved long range strategic planning and departmental accountability



Preliminary Proposed ExpenditureBudget by Fund FY13-14 (in Millions)

(Based upon FY13-14 forecast of $153 Million)


General Fund Budget Overview Closeout of FY12-13

FY12-13 projected to end with a structurallybalanced budget (in millions):

Estimated $ %Budget Actual Change Change

Revenues 71.0$ 72.1$ 1.1$ 2%Expenditures 72.2 71.3 0.9 1%

Net Change (1.2)$ 0.8$ 2.0$


General Fund Budget Overview(continued)

March 2013 – Mid-Year Report Presented to Council:

• Initial forecast deficit of $2.3 million for FY13-14 and $4.0 million for FY14-15

• Initial projected ending available fund balance of $17.0 million (23% of budget) for FY13-14 and $13.0 million (17% of budget) for FY14-15 absent corrective actions



April 2013 – Staff prepared initial budget estimates for FY13-14 through FY17-18:

• Projects deficits of $2.7 to $7.4 million annually thru FY17-18

• Assumes revenue growth of 1-3% annually depending on the source

• Incorporates new and projected Miscellaneous / Safety PERS rates, including additional employee contributions for PERS and health



•Assumes health and OPEB increases of 6-12% per year, (incorporating some cost sharing provisions of MOUs);

•Incorporates other provisions of new MOU agreements, including salary increases based upon the increase in BRI (minimum of 1.5% for 2014, 2% for 2015 and 2016)

•Assumes 2.5% increases for all non-personnel expenses resulting from inflation beginning in FY15-16.


General Fund Budget Overview (continued)

Ending Available Fund Balance assumes no cost-saving measures are taken.

13-14 14-15 15-16 16-17 17-18Revenues 72.9$ 74.1$ 75.2$ 76.5$ 77.9$ Expenses 75.6 78.5 81.0 83.0 85.3 Deficit For Year (2.7)$ (4.4)$ (5.8)$ (6.5)$ (7.4)$

Ending Available Fund Balance 18.6$ 14.2$ 8.4$ 1.8$ (5.6)$ % of Expenses 25% 18% 10% 2% -7%

5 Year Projections for FY13-14 through 17-18 (in millions)Without proposed changes


General Fund Budget Revenue and Expense Trends

($ in millions)

$65

$70

$75

$80

$85

$90

Revenues Expenses


General Fund Budget Major Revenue Sources - $73 Million FY13-14


General Fund Revenues5-Year Plan Annual Assumptions

Property Tax – 2.2% annually through 17-18

Sales Tax – 6% 13-14, 4% 14-15, 3% thereafter

Utility Users Tax – Flat thru 14-15, 1% thru 17-18

Franchise Taxes – Drop 13-14, 0-1% thru 17-18

Other Taxes – 1-2% through 17-18

Departmental Revenues – 1% thru 17-18


General Fund Budget Total Revenue Trend

($ in millions)


General Fund Budget Property Tax Revenue Trend ($ in millions)

$19$21

$22$23

$22 $22 $22 $23 $23 $24

$0

$5

$10

$15

$20

$25

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015


General Fund Budget Major Expenditure Categories FY13-14

32%

36%

15%

5% 12%

Fire

Police

Administration

Recreation / PublicWorks (GF)Transfers Out


General Fund Budget Major Expenditure Categories

Miscellaneous Employees PERS Rates -Total Contributions (Employer & Employee)

17 Budget Study Session – April 18, 2013

Safety Employees PERS Rates -Total Contributions (Employer & Employee)



Closing the Gap for FY13-14 and 14-15:Summary of Proposed

Reductions/Revenue Offsets Department Category 2013-14 2014-15Administration 829,000$ 860,000$ Police 245,000 245,000 Fire 180,000 180,000 Central Services 49,000 49,000 Library 125,000 91,000 Recreation 112,000 112,000 General Fund Capital Projects 460,000 1,491,000 Parking Meter Rates 375,000 375,000 One Time Revenues 300,000 Total 2,675,000$ 3,403,000$


Closing the Gap for FY13-14 and 14-15: Proposed Changes

(continued)

A. Administration: $829K FY13-14, $860K FY14-15 Restructure/Reduction of the following departments

City Manager / Information Services ($379K / $409K) Human Resources ($202K each year) Finance ($15K each year)

City Clerk ($88K / $89K)

Reallocate Cable Television Administration program to Cable Internal Service Fund



(continued)

A. Administration (continued)

Human Resources ($30K each year) Reduce other operational costs ($30K each year)

Finance ($115K each year) Increase Business License processing fee by $5 Increase penalties for delinquent business licenses Reduce other operational costs



(continued)

B. Police: $245K

Represents initial estimate for a proposed increase in parking citations, to be presented to Council in May 2013

Police was also able to reduce their base budget by $200K annually through reduced booking fees assessed by the County



(continued)

C. Fire: $180K

Reduce purchases of equipment, materials and supplies

Reduce overtime budget

Increase in Fire Prevention Services revenue



(continued)

D. Recreation and Parks: $112K

Reductions in the following:

Hardball Field (College of Alameda) ($6,500)

Swim Center Facility Maintenance ($43,500)

Part time Staffing & Contractual Services ($62,000)



(continued)

E. Library: $216K over two years

Change closing time on Thursday from 6 pm to 5 pm, to align with operating hours on Friday and Saturday ($8K annually)

Use remaining Measure O bond funds instead of General Fund contributions to fund capital outlay for library for both years ($200K over two years)



(continued)

F. Public Works: $49K

Represents an increase in the billing rates for fleet maintenance services to Alameda Municipal Power and Alameda Unified School District



(continued)

G. General Fund Capital Projects($460K in 13-14, $1.491 million in 14-15)

Reductions in Building Maintenance Renovations funded annually by the General Fund from $860K to $400K

For FY14-15, reallocate remaining General Fund capital contributions as follows: $200K from Capital Project Fund reserves (one-time) $831K from Facility Maintenance Internal Service

Fund (on-going)



(continued)

H. Proposed Increase for Parking Meter Rates to Regional Standard

Represents initial estimate for proposed increase (estimated to generate $375K annually) to be presented to Council in May 2013

Increase meter rates from

$1.00 to $1.50 per hour on Park Street

$.50 to $1.00 on Webster Street


Closing the Gap for FY13-14 and 14-15:Use of One-Time Funds

Receive repayment of funds due from Bayport Assessment District for prior years for public safety services ($300K FY13-14 only), $45K annually in future years

Use of carryover of projected budget savings FY12-13 ($1 million FY14-15) Police ($634K due to vacancies) Fire ($275K due to overtime savings) Facilities Maintenance ($142K due to vacancies)


5 Year Projections FY13-14 to 17-18 (in Millions) with Proposed Changes

13-14 14-15 15-16 16-17 17-18Revenues 72.9$ 74.1$ 75.2$ 76.5$ 77.9$ Expenses 75.6 78.5 81.0 83.0 85.3 Budget Carryover from FY12-13 1.0 Proposed Changes 2.7 3.4 2.7 2.7 2.7 Deficit For Year -$ -$ (3.1)$ (3.8)$ (4.7)$ Ending Available Fund Balance 19.6$ 18.6$ 15.5$ 11.7$ 7.0$ % of Expenses 26% 24% 19% 14% 8%


Other Cost Savings Measures / Revenue Enhancements

Proposed Elimination of Cost of Living Adjustments for Non Personnel items for FY14-15 and 15-16

Parking Garage

Voluntary Layoff Program


Other Budget Considerations Advance of future years’ PILOT from AMP ($1.2

million 13-14, $1.4 million 14-15)

Expiring SAFER Grant funding for firefighters (2014)

Update on Redevelopment/Successor Agency

Proposed Reorganization of ARRA

Proposed EOC ($2 Million) – Funding Sources General Fund Reserves Partial Payment from Community Development Fee Loans from CDF / Facility Maintenance Funds Grants / Other Sources


Budget Good News

FY12-13 is projected to be structurally balanced

Maintains and exceeds City Council’s 20% reserve policy for two years

No significant decrease in direct services to the community


Council Direction on Proposed Budget

Proposed expenditure reductions

Proposed changes to revenues

One-time items and use of budget carryover from FY12-13

Other Cost Savings/Revenue Enhancements

Other Budget Considerations


Next Steps

May 28, 2013 2nd Council budget workshop and possible adoption

June 12, 2013 Council budget adoption if needed


Questions?

city of alameda budget study session april 18, 2013 › 2013 › 05 › 2013-04... ·...

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