city of glendale budget hearing june 11, 2013

City of GlendaleBudget HearingJune 11, 2013

Budget Process Recap

City Council Priorities

Principles of Compensation Management

General Fund Recap

Summary of Appropriations

New Fees & Increases

GWP Recap

Conclusion

FY 2013-14 Budget HearingAgenda

FY 2013-14 Budget HearingBudget Process Recap

May 7, Budget Study Session #1• FY 2012-13 Update & Year End Projection• Budget Preview• Organizational Profile, Council Priorities, Dashboards & KPI’s

May 14, Budget Study Session #2• FY 2013-14 Budget & Five Year Forecast• Revenues & Fees

May 21, Budget Study Session #3• Workers Compensation & Liability Insurance Funds• Revenue & Fees Follow-Up• Capital Improvement Program

May 28, Budget Study Session #4 • Budget Process Recap• General Fund Recap• Budget Overview • Department Budget Presentations

June 11, Budget Hearing June 25, Budget Adoption

City Council Priorities• Council sets the tone• Set framework & establish vision• Must be long-range yet tied to community needs

Department Strategic Goals• Handful of strategic goals that departments must achieve and which

define a “successful year”– How do we define “success”?

• Identify innovative, value-added “stretch” goals – Raise the bar!

Key Performance Indicators• Tactical measures of a department’s effectiveness

– Helps ensure that the day-to-day tasks are completed as well• Look at “how” and “how well”, as well as “what” and “why”

FY 2013-14 Budget HearingCouncil Priorities (1 of 4)

Fiscal Responsibility: We must be structurally balanced, realistic in our assumptions and prudent in our expenditures

Exceptional Customer Service: We must be empathetic problem-solvers, exhibiting respect and a sincere desire to aid our residents and customers

Safe & Healthy Community: Protection of life and property is a foundational mission for this organization. We will offer assistance to anyone in need, and do so with respect and dignity

Economic Vibrancy: This is our business plan, to attract investment and grow new revenue and opportunities for Glendale

Infrastructure & Mobility: Public infrastructure in all its forms is part of our legacy and part of the public trust; we must find ways to improve it for Glendale’s next generation of leaders

FY 2013-14 Budget HearingCity Council Priorities (2 of 4)

Informed & Engaged Community: An informed public makes better policy. We will combat cynicism with knowledge and we will combat apathy with a genuine desire to listen

Balanced, Quality Housing: Ensuring safe, sanitary and decent housing is elemental to building an engaged citizenry. At the same time, we will ensure that neighborhoods are protected and their quality of life is unimpeded

Community Services & Facilities: Offering safe, clean and interesting opportunities for our residents to recreate and relax, which are important to their health and wellbeing

Arts & Culture: We value the whole person, and we hope to inspire our residents and businesses with thoughtful investments in the arts and cultural efforts

Environmental Sustainability: Preserving natural resources may be a global endeavor, but Glendale will act locally to adopt progressive yet practical policies to protect our planet

FY 2013-14 Budget Hearing City Council Priorities (3 of 4)

Principles of Compensation Management

I. The City shall seek to balance the Council priorities of Fiscal Responsibility and Exceptional Customer Service by attracting and employing quality city personnel within a sustainable financial structure.

II. All elements of employee compensation must be funded and secured, and based on the City’s ability to pay.

III. The City shall periodically endeavor to calibrate compensation for classifications at the average of comparable cities in the defined market. However, the City may establish select compensation classifications more competitively within the market, based on department mission, program priority, and market forces.

IV. In addition to consideration of market comparisons, the City shall also endeavor to analyze internal organizational equity within comparable job classifications and amongst the respective bargaining units.

FY 2013-14 Budget HearingPrinciples of Compensation Management (1 of 2)

V. Merit compensation increases and/or bonus consideration shall be based solely on employee performance and on the City’s ability to pay in a non-discriminatory fashion.

VI. In order to sustain the defined-benefit model, employees shall participate in funding retirement costs to the maximum extent possible.

VII. The City’s PERS program participation will reflect sustainable actuarial horizons.

VIII. The City’s total General Fund workforce costs should not exceed 75% of net operating expenses on an annual basis.

IX. The City’s total management costs should not exceed 25% of its total personnel costs, ensuring a trim and efficient organizational structure.

X. Employee time accruals will be monitored and utilized to ensure that separating employees’ payouts are minimized.

FY 2013-14 Budget HearingPrinciples of Compensation Management (2 of 2)

FY 2013-14General Fund Recap

Starting Revenue Estimate: $ 165,430,515

Adjustments:

Cost Allocation $ 1,519,042

Decrease in Transfer from Electric Fund (250,000)

Property Tax/VLF Backfill 446,100

Sales Tax 1,498,868

Occupancy/Franchise Tax 260,000

Building Permits & Licenses (430,000)

All Other Revenues (net) 158,244 (461,454)

Retirement Incentives (Use of Fund Balance) 897,888

One-time Property Tax Dist per City Council Direction (Use of Fund Balance) 1,201,249

FY 2013-14 Proposed Resources: $ 170,731,906

FY 2013-14 Budget Hearing General Fund - Proposed Resources

Starting Budget: $ 165,006,226

Salaries & Benefits Increases / (Decreases):

Salaries $ 876,638

PERS 1,000,326

PERS Cost Sharing (67,017)

All Other Salaries & Benefits (50,062) 1,759,885

ISF Rates Increases / (Decreases):

Medical Insurance $ 220,018

Information Services (129,189)

Workers’ Compensation (99,267)

All Other 22,224 13,786

Transfer to CIP 20,000

M&O / Capital Outlay / Transfers (629,587)

Traffic Signals / Street Lights / Rent 3,663,708

Retirement Incentives 897,888

FY 2013-14 Proposed Appropriations: $ 170,731,906

FY 2013-14 Budget HearingGeneral Fund Proposed Appropriations

Resources $ 170,731,906

Appropriations 170,731,906

Net $ -

FY 2013-14 Budget Hearing

General Fund Proposed Resources & Appropriations

FY 2013-14Summary of Appropriations

FY 2013-14 Budget HearingSummary of Appropriations

Fund TypeAdopted

FY 2012-13*Proposed

FY 2013-14Increase / (Decrease)

% Change

General Fund $ 165,498,883 $ 170,731,906 $ 5,233,023 3.2

Special Revenue Funds 95,257,252 89,983,396 (5,273,856) (5.5)

Debt Service Funds 3,792,062 4,092,062 300,000 7.9

Capital Improvement Funds 15,166,120 15,465,798 299,678 2.0

Enterprise Funds 336,465,217 364,771,055 28,305,838 8.4

Internal Service Funds 81,302,867 92,897,508 11,594,641 14.3

All Funds – Grand Total $ 697,482,401 $ 737,941,725 $ 40,459,324 5.8

*Adjusted for Balancing Strategies

FY 2013-14 Budget HearingSummary of Personnel Changes

Authorized count as of March 31, 2013 1,605FY 2012-13 4th Qtr Adjustment (GWP)* (1)Proposed Additions:

Administrative Services 3Community Development 4Fire 1Library, Arts & Culture 1

Total Additions 9Proposed Reductions*

Fire (13)Glendale Water & Power (12)

Total Reductions (25)

Proposed FY 2013-14 Authorized Count 1,588

*Clean up of remaining vacant positions as a result of budget reduction strategies

Summary of AppropriationsGeneral Fund (1 of 2)

DepartmentAdopted

FY 2012-13*Proposed


% Change

Administrative Services $ 5,061,487 $ 5,489,797 $ 428,310 8.5

City Attorney 3,127,327 3,207,427 80,100 2.6

City Clerk 1,141,839 1,152,797 10,958 1.0

City Treasurer 634,087 643,441 9,354 1.5

Community Development 10,014,182 9,224,562 (789,620) (7.9)

Community Services & Parks 9,408,616 9,585,371 176,755 1.9

Fire 39,103,900 40,072,164 968,264 2.5

Human Resources 2,215,148 2,388,756 173,608 7.8

Library, Arts & Culture 7,818,940 7,775,616 (43,324) (0.6)


Summary of AppropriationsGeneral Fund (2 of 2)

DepartmentAdopted

FY 2012-13*Proposed


% Change

Management Services $ 4,135,897 $ 4,953,034 $ 817,137 19.8

Police 66,687,288 66,874,072 186,784 0.3

Public Works 15,723,891 18,076,981 2,353,090 15.0

Transfers 1,043,624 390,000 (653,624) (62.6)

Retirement Incentive - 897,888 897,888 N/A

Estimated Savings (617,343) - (617,343) (100.0)

General Fund Total $ 165,498,883 $ 170,731,906 $ 5,233,023 3.2


Summary of AppropriationsDebt Service Funds

FundAdopted

FY 2012-13*Proposed


% Change

303-Police Building Project $ 2,400,000 $ 2,700,000 $ 300,000 12.5

306-Capital Leases 1,392,062 1,392,062 - -

Debt Service Total $ 3,792,062 $ 4,092,062 $ 300,000 7.9


Summary of AppropriationsCapital Improvement Funds

FundAdopted

FY 2012-13*Proposed


% Change

401-General Fund Capital Improvement Fund

Community Services & Parks $ 545,734 $ 4,594,000 $ 4,048,266 741.8

Fire - 592,000 592,000 N/A

Library 4,725,000 250,000 (4,475,000) (94.7)

Management Services - 200,000 200,000 N/A

Public Works 339,736 319,736 (20,000) (5.9)

Transfers 250,000 2,892,062 2,642,062 1,056.8

Total 401-GF Capital Improvement Fund $ 5,860,470 $ 8,847,798 $ 2,987,328 51.0

402-State Gas Tax Fund $ 5,390,650 $ 6,018,000 $ 627,350 11.6

405-Parks Mitigation Fee Fund $ 3,915,000 $ 600,000 $(3,315,000) (84.7)

Capital Improvement Total $15,166,120 $ 15,465,798 $ 299,678 2.0


Capital Improvement Summary(In Thousands)

Life To Date Project Budget

Remaining Budget 3/31/13

Proposed FY 2013-14

General Fund (401)

Police $ 3,591 $ 96 $ -

Fire 80 64 592

Public Works 16,973 2,259 320

Community Services & Parks 10,076 953 3,619

Library, Arts & Culture 12,330 3,532 250

Management Services - - 200

Grant Projects 7,805 6,261 975

Transfers - - 2,892

General Fund (401) Sub Total $ 50,855 $ 13,165 $ 8,848

Community Services & Parks 7,543 5,896 2,075

Library, Arts & Culture 12 12 -

Public Works 132,190 76,902 22,297

Total $ 190,600 $ 95,975 $ 33,220

Summary of AppropriationsEnterprise Funds (1 of 2)

FundAdopted

FY 2012-13*Proposed


% Change

501-Recreation Fund $ 3,050,039

$ 4,059,447 $ 1,009,408 33.1

510-Hazardous Disposal Fund 1,740,359 1,607,000 (133,359) (7.7)

520-Parking Fund 10,491,080 10,609,781 118,701 1.1

525-Sewer Fund 35,437,518 29,112,546 (6,324,972) (17.9)

530-Refuse Disposal Fund 22,404,368 23,002,209 597,841 2.7

552-Electric Works Revenue Fund 206,579,200 218,260,617 11,681,417 5.7

553-Electric Depreciation Fund 4,772,300 13,891,818 9,119,518 191.1


Summary of AppropriationsEnterprise Funds (2 of 2)

FundAdopted

FY 2012-13*Proposed


% Change

572-Water Works Revenue Fund $ 44,275,439 $ 46,226,285 $ 1,950,846 4.4

573-Water Depreciation Fund 3,502,900 14,198,500 10,695,600 305.3

701-Fire Communication Fund 4,212,014 3,802,852 (409,162) (9.7)

Enterprise Total $ 336,465,217 $ 364,771,055 $ 28,305,838 8.4


Summary of AppropriationsInternal Service Funds (1 of 2)

FundAdopted

FY 2012-13*Proposed


% Change

601-Fleet / Equipment Mgmt Fund $ 14,282,914 $ 14,533,115 $ 250,201 1.8

602-Joint Helicopter Operation Fund 1,103,791 4,595,914 3,492,123 316.4

603-ISD Infrastructure Fund 6,239,285 8,936,079 2,696,794 43.2

604-ISD Applications Fund 6,785,192 6,471,394 (313,798) (4.6)

610-Unemployment Insurance Fund 341,120 315,738 (25,382) (7.4)

612-Liability Insurance Fund 7,489,140 7,745,221 256,081 3.4

614-Compensation Insurance Fund 10,903,133 11,513,671 610,538 5.6

615-Dental Insurance Fund 1,507,914 1,345,896 (162,018) (10.7)


Summary of AppropriationsInternal Service Funds (2 of 2)

FundAdopted

FY 2012-13*Proposed


% Change

616-Medical Insurance Fund $ 23,882,942 $ 24,917,608 $ 1,034,666 4.3

617-Vision Insurance Fund 271,565 245,560 (26,005) (9.6)

640-Employee Benefits Fund 2,945,279 3,579,901 634,622 21.6

641-RHSP Benefits Fund 1,943,707 1,618,763 (324,944) (16.7)

642-Post Employment Benefits Fund 231,116 2,214,458 1,983,342 858.2

660-ISD Wireless Fund 3,375,769 4,864,190 1,488,421 44.1

Internal Service Total $ 81,302,867 $ 92,897,508 $ 11,594,641 14.3


New Fees &Increases

FY 2013-14 Budget Hearing Proposed New Fees

Title Department / Division Proposed FeeBack to Business Registration CDD / Building $5,000

Back to Business Program/Plan Review CDD / Building $109

Back to Business Engineer Certification CDD / Building $250

Parallel Design and Permit Program CDD / Building 50% of Plan Check Fees

Mechanical permit fee for the installation, relocation or repair of each Fire-Damper, or ceiling radiation damper

CDD / Building $153

Mechanical Permit Fees Smoke Control System

CDD / Building $153


Title Department / Division Proposed FeeBusiness Registration License Certification Fee

CDD / Planning Same as the ZUC Fees

Business Registration License Renewal Fee

CDD / Planning 25% of the business registration license

certification feeDocument Scanning – Minor CDD / Planning $5

Document Scanning – Standard CDD / Planning $35

Document Scanning – Major CDD / Planning $100

Parking Exception Fee CDD / Planning $955

Traffic Analysis and Impact Review; Projects with under 50 trips; Base Fee

CDD / Planning $1,000


Title Department / Division Proposed FeeTraffic Analysis and Impact Review; Projects with more than 50 trips; Base Fee

CDD / Planning $2,000

Traffic Analysis and Impact Review for all Projects where services go beyond hours needed to complete task set by the base fee

CDD / Planning Actual Cost

Brand Courtyard Rental; Three Hr. Min.; Glendale Rate; Per Hour

Library, Arts & Culture $100

Brand Courtyard Rental; Three Hr. Min.; Non-Glendale Rate; Per Hour


Central Library Main Reading Room Rental; for Six Hours; Glendale Rate

Library, Arts & Culture $2,000

Central Library Main Reading Room Rental; Glendale Rate; Each Additional Hour


Central Library Main Reading Room Rental; for Six Hours; Non-Glendale Rate

Library, Arts & Culture $2,500


Title Department / Division Proposed FeeCentral Library Main Reading Room Rental; Non-Glendale Rate; Each Additional Hour


Lost/Destroyed Materials; Paperback Library, Arts & Culture $6

Well Permits; Non-Production Well GWP $535

Well Permits; Production Well GWP $1,210

Local Sewer Development Fee (Fee for the incremental increase in flow to the City Sewer System – based on rate study dated July 2007

Public Works Based on net increase of

sewer discharge

Parking Garage Keycard Activation Fee Public Works / Parking $10


Title Department / Division Proposed Fee

Special District Daily Guest Permit; 0-30 Permits (South Brand Blvd. District)

Public Works / Parking Free

Special District Daily Guest Permit; 31 and over (South Brand Blvd. District)

Public Works / Parking $2

Special District Non-Resident Parking Permit (South Brand Blvd. District)

Public Works / Parking $25


Title Department / Division Proposed Fee

Smoking Permitted Area – Initial CDD / Planning $198

Smoking Permitted Area – Renewal CDD / Planning $50

Amplified Sound Permit – Weekly CDD / Planning $75

Amplified Sound Permit – Monthly CDD / Planning $102

Amplified Sound Permit – Annual CDD / Planning $205

FY 2013-14 Budget Hearing Recommended Rate/Fee Increase

TitleCurrent

Fees/RatesRecommended

Fees/Rates

Technology Surcharge 10.00% 18.38%

Review of Geological Reports Additional hourly charges for geotechnical reports (Additional fees are due at the time the comments are returned to the applicant)

$93.00 $109.00

Plumbing Permit Fees; Water Systems Boiler steam or hot water

$19.11 $22.30

Plumbing Permit Fees; Gas Systems for low pressure gas piping systems

$5.47 $11.00

Mechanical Permit Fee Issuance of Supplemental Permit

$22.00 $33.00

FY 2013-14 Budget Hearing Recommended Fee Increase

TitleCurrent Fees Recommended

Fees

Electrical Permit Fees Issuance of Supplemental Permit $22.00 $33.00

Electrical Permit Fees; Single Family Homes Alternative per unit fee for new units (including garage and common areas)

$33.00 $330.00

On-Scene Assessment Fee $100.00 $125.00

Street Use Permit (Temporary Use of Streets, Sidewalk Parkway, Parking Lot or Alleys-one time plus daily)

$37.00 $50.00

Street Use Permit (Temporary Use of Streets, Sidewalk Parkway, Parking Lot or Alleys fee per each 500 square feet area

$21.00 $25.00

FY 2013-14 Budget Hearing Recommended Fee Increase


Fees

The Orange Street Parking Structure (222 N. Orange St.) Transient Parking Rate after 90 Minutes

$1.50 $2.00

The Orange Street Parking Structure (222 N. Orange St.) Monthly Parking

$30.00 $40.00

Preferential Parking Permit Fee; Citywide $6.00 $25.00

Preferential Parking Guest Permit Fee; Citywide Free $25.00

Photographs CD $3.00 $4.00

FY 2013-14 Budget Hearing Recommended Changes


Fees

New Sidewalk Dining Permit $650 $150

New Sidewalk Dining Permit; Additional Fee Based on the per square foot of Sidewalk Occupied; When permit is approved

- $2

Sidewalk Dining Permit – Renewal $650 $50

Sidewalk Dining Permit – Renewal; Additional Fee Based on the per square foot of Sidewalk Occupied; When permit is approved

- $1


Current Title Recommended Change Fees Unit/TimeResidential Projects; New Projects Jan 1, 2012 – Nov 30, 2013

Residential Projects; New Projects Jan 1, 2012 – Nov 30, 2014

$7,000 Per Residential

UnitResidential Projects; New Projects Commencing Dec 1, 2013

Residential Projects; New Projects Dec 1, 2014 – Dec 31, 2018

$10,500 Per Residential

UnitNon Residential Projects; Commercial New Projects Jan 1, 2012 – Nov 30, 2013

Non Residential Projects; Commercial New Projects; Jan 1, 2012 – Nov 30, 2014

$2.67 Per Square Foot

Non Residential Projects; Commercial New Projects Commencing Dec 1, 2013

Non Residential Projects; Commercial New Projects; Dec 1, 2014 – Dec 31, 2018



Current Title Recommended Change Fees Unit/TimeNon Residential Projects; Office New Projects Jan 1, 2012 – Nov 30, 2013

Non Residential Projects; Office New Projects Jan 1, 2012 – Nov 30, 2014


Non Residential Projects; Office New Projects Commencing Dec 1, 2013

Non Residential Projects; Office Dec 1, 2014 – Dec 31, 2018


Non Residential Projects; Industrial New Projects Jan 1, 2012 – Nov 30, 2013

Non Residential Projects; Industrial New Projects; Jan 1, 2012 – Nov 30, 2014


Non Residential Projects; Industrial New Projects Commencing Dec 1, 2013

Non Residential Projects; Industrial New Projects; Dec 1, 2014 – Dec 31, 2018


Department/Division CPI Adjustment

City Clerk 2%

CDD 2%

Fire 2%

Library, Arts & Culture 2%

Police 2%

Public Works 2%

Note: CPI adjustment of 2% (Issued by the Bureau of Labor Statistics for the year ending January 2013) applies to various departments/divisions as indicated in the attached FY2013-14 Proposed Citywide Fee Schedule

FY 2013-14 Budget Hearing Proposed CPI Adjustments

Glendale Water & PowerRecap

Slide 41

Electric Utility Water UtilityPublic Benefit

Fund (290)

Revenues $ 198,060,955 $ 47,552,200 $ 5,954,000

Less: Appropriation 232,152,435 60,424,785 6,308,114

Add: Asset Capitalization 13,891,818 14,198,500 -

Net Surplus / (Use of Fund Balance) (20,199,662) 1,325,915 (354,114)

Estimated Beginning Fund Balance 326,337,810 103,972,484 1,353,788

Estimated Ending Fund Balance $ 306,138,148 $ 105,298,399 $ 999,674

Glendale Water & PowerProposed FY 2013-14 Budget

Fund Recap

Slide 42Glendale Water & Power Electric Utility CIP Summary

(In Thousands)

2013-14 2014-15 2015-16 2016-17 2017-18 Budget Plan Plan Plan Plan Totals Distribution Capital $ 4,974 $ 13,790 $ 10,476 $ 14,462 $ 15,472 $ 59,173 Power Management Grayson Power Plant 600 4,300 6,901 4,396 2,445 18,642 Transmission 2,818 - - - - 2,818 Scholl Canyon - - - 230 - 230 Modernization 4,108 3,164 2,466 1,010 1,041 11,789 Other 304 - - - - 304 Power Management Capital 7,830 7,463 9,368 5,636 3,486 33,783 Allocated Capital 1,088 - - - - 1,088 Total Electric Utility Capital $ 13,892 $ 21,253 $ 19,844 $ 20,098 $ 18,958 $ 94,044

Slide 43Glendale Water & Power Water Utility CIP Summary

(In Thousands)

Slide 43

2013-14 2014-15 2015-16 2016-17 2017-18 Budget Plan Plan Plan Plan Totals Potable Water Source $ 1,763 $ 4,525 $ 275 $ 275 $ 510 $ 7,347 Potable Water Pumping Plant 2,590 2,256 956 159 159 6,120 Potable Water Quality & Plant 765 426 336 336 336 2,199 Potable Water Trans & Dist. 7,412 3,171 5,263 3,339 3,138 22,323 Recycled Water 1,446 314 - - - 1,760 Water General Plant 223 96 90 90 45 544 Total Water Utility Capital $ 14,199 $ 10,787 $ 6,920 $ 4,200 $ 4,188 $ 40,294

FY 2013-14 BudgetBudget Calendar

June 11 – Budget Hearing

June 25 – Budget Adoption

November 19 – First Quarter Update

February 11 – Mid-year Update

FY 2013-14 BudgetLooking Ahead

Review and update budget policies as needed

Revise and implement new purchasing policies & procedures

Develop expenditure control budget pilot program

Explore new revenue development

Update the rolling General Fund five year forecast

Fiscal stability is on the horizon

• Focus on structural balance

Obligation to continue refining business processes

Good News/Bad News

• Good News – Operational Balance, Economic Growth, Streamlined Organization

• Bad News – No significant new money for recurring personnel costs, continued adaptation to organizational capacity, uncertainty from the State of California

FY 2013-14 BudgetConclusion

Questions &

Comments

city of glendale budget hearing june 11, 2013

Documents

budget study session

budget adoptionslide

budget hearingagenda2slide

city council prioritiescouncil

informed engaged community

public infrastructure

informed public

quality of life