city of santa barbara budget overview apa citizens academy paul casey, assistant city administrator...
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CITY OF SANTA BARBARACITY OF SANTA BARBARA
Budget OverviewAPA Citizens Academy
Paul Casey, Assistant City AdministratorOctober 15, 2013
City of Santa Barbara • Finance Department 2
PRESENTATION OUTLINEPRESENTATION OUTLINE
Overview of State of City Finances
General Fund
Multi-Year Forecast
Salary and Benefits
Enterprise Funds
OVERVIEW
City of Santa Barbara • Finance Department 3
City of Santa Barbara • Finance Department 4
OVERVIEWOVERVIEW 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
City of Santa Barbara • Finance Department 5
OVERVIEWOVERVIEW 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
City of Santa Barbara • Finance Department 6
CITYWIDE TOTALSOperating BudgetsCITYWIDE TOTALSOperating Budgets
General Fund42%
Special Revenue
Funds10%
En-ter-
prise Funds41%
Internal Service Funds
7%
Total FY 2014 Operating Budgets - $264.1 Million
GENERAL FUND
City of Santa Barbara • Finance Department 7
City of Santa Barbara • Finance Department 8
GENERAL FUND Expenditures – by DepartmentGENERAL FUND Expenditures – by Department
Admin. Services2%
Community Development9%
City At-torney
2%
Fire20%
Police33%
Finance4%
Library4%
Mayor & Council
1%
Parks & Rec13%
Public Works7%
Non-Depart.3%
CAO2%
Total FY 2014 Expenditures - $110,447,263
City of Santa Barbara • Finance Department 9
GENERAL FUND Expenditures – by DepartmentGENERAL FUND Expenditures – by Department
Admin. Services2%
Community Development9%
City At-torney
2%
Fire20%
Police33%
Finance4%
Library4%
Mayor & Council
1%
Parks & Rec13%
Public Works7%
Non-Depart.3%
CAO2%
Total FY 2014 Expenditures - $110,447,263
Public Safety = 54%
City of Santa Barbara • Finance Department 10
GENERAL FUND Expenditures – by DepartmentGENERAL FUND Expenditures – by Department
Admin. Services2%
Community Development9%
City At-torney
2%
Fire20%
Police33%
Finance4%
Library4%
Mayor & Council
1%
Parks & Rec13%
Public Works7%
Non-Depart.3%
CAO2%
Total FY 2014 Expenditures - $110,447,263
Non-SafetyOperating Departments = 33%
City of Santa Barbara • Finance Department 11
GENERAL FUND Expenditures – by DepartmentGENERAL FUND Expenditures – by Department
Admin. Services2%
Community Development9%
City At-torney
2%
Fire20%
Police33%
Finance4%
Library4%
Mayor & Council
1%
Parks & Rec13%
Public Works7%
Non-Depart.3%
CAO2%
Total FY 2014 Expenditures - $110,447,263
Administrative Departments = 11%
City of Santa Barbara • Finance Department 12
GENERAL FUND Expenditures – by DepartmentGENERAL FUND Expenditures – by Department
Admin. Services2%
Community Development9%
City At-torney
2%
Fire20%
Police33%
Finance4%
Library4%
Mayor & Council
1%
Parks & Rec13%
Public Works7%
Non-Depart.3%
CAO2%
Total FY 2014 Expenditures - $110,447,263
Debt Service $ 350,745Capital 1,000,000Comm. Prom. 2,011,213Approp. Reserve 431,200
City of Santa Barbara • Finance Department 13
CITYWIDE TOTALSFY 2014 Capital ProgramCITYWIDE TOTALSFY 2014 Capital Program
General Fund3%
Enterprise Funds66%
Internal Service Funds13%
Special Revenue
Funds16%
Total Capital Program - $40,149,006
$20.2 Million
$11.3 Million
STATE OF CITY’S FINANCESSales Tax Revenues – 2005 - 2012STATE OF CITY’S FINANCESSales Tax Revenues – 2005 - 2012
$1,000,000
$4,000,000
$7,000,000
$10,000,000
$13,000,000
$16,000,000
$19,000,000
$22,000,000
20052007 2008
20092010
201120122006
$20.3 M $19.1 M
STATE OF CITY’S FINANCES Property Tax Revenues – 2005 - 2012STATE OF CITY’S FINANCES Property Tax Revenues – 2005 - 2012
$1,000,000
$4,000,000
$7,000,000
$10,000,000
$13,000,000
$16,000,000
$19,000,000
$22,000,000
$25,000,000
2005
20072008
20092010 2011 2012
2006
$23.2 M $23.7 M
$1,000,000
$3,000,000
$5,000,000
$7,000,000
$9,000,000
$11,000,000
$13,000,000
$15,000,000
STATE OF CITY’S FINANCES TOT Revenues – 2005 - 2012STATE OF CITY’S FINANCES TOT Revenues – 2005 - 2012
2005 2007 2008 2009 2010 2011 20122006
$12.9 M$13.6 M
STATE OF CITY’S FINANCES Budget Changes – Last 4 YearsSTATE OF CITY’S FINANCES Budget Changes – Last 4 Years
Cumulative
DEPARTMENTS 2009 2011 2013 Change
Admin, Services 2,157,971$ 1,841,770$ 1,733,693$ (424,278)$
City Admin./Mayor & CC 3,123,237 2,480,941 2,730,420 (392,817)
City Attorney 2,230,025 1,867,900 2,002,890 (227,135)
Community Devel. 11,500,094 9,980,620 9,393,655 (2,106,439)
Finance 5,140,416 4,189,067 4,669,234 (471,182)
Fire 20,478,933 20,735,531 21,789,550 1,310,617
Library 4,533,987 4,085,880 4,271,279 (262,708)
Parks & Recreation 15,332,580 12,866,930 13,196,345 (2,136,235)
Police 32,960,553 31,937,376 35,765,758 2,805,205
Public Works 7,032,089 6,571,047 7,151,385 119,296
Non-Departmental 3,543,795 3,256,350 3,051,460 (492,335)
108,033,680$ 99,813,412$ 105,755,669$ (2,278,011)$
Adopted
STATE OF CITY’S FINANCES Expenditures TrendsSTATE OF CITY’S FINANCES Expenditures Trends
2008 2009 2010 2011 2012 $40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
$110,000,000
$120,000,000 $105.7M
$97.9M
Amounts Exclude Capital
STATE OF CITY’S FINANCES Position Changes – Last 2 YearsSTATE OF CITY’S FINANCES Position Changes – Last 2 Years
DEPARTMENTS FY 2009 FY 2011 FY 2013Net
Decrease
Administrative Services 16.00 12.00 12.00 (4.00)
City Admin./Mayor & CC 21.20 17.40 17.90 (3.30)
City Attorney 13.00 11.10 11.30 (1.70)
Community Development 83.46 72.46 59.80 (23.66)
Finance 35.77 33.85 33.85 (1.92)
Fire 113.00 108.00 109.00 (4.00)
Library 35.52 29.20 26.95 (8.57)
Parks & Recreation 85.95 72.31 70.31 (15.64)
Police 210.00 201.20 204.50 (5.50)
Public Works 49.60 48.10 48.20 (1.40)
663.50 605.62 593.81 (69.69)
STATE OF CITY’S FINANCES Position TotalsSTATE OF CITY’S FINANCES Position Totals
1999 2007 2008 2009 2010 2011 2012 20130
200
400
600
800
1000
12001,014
405 414 421 419 408 402 405
662 662 663 626 606
1,067 1,076 1,084 1,045 1,014
609 594
9991,011
STATE OF CITY’S FINANCES Status of ReservesSTATE OF CITY’S FINANCES Status of Reserves
City of Santa Barbara • Finance Department 21
Policy Actual Difference
Disasters 15,863,350$ 15,863,350$ -$ Contingencies 10,575,567 6,531,762 (4,043,805)
Total 26,438,917$ 22,395,112$ (4,043,805)$
City of Santa Barbara • Finance Department 22
Multi-YearProjectionsMulti-Year
Projections
FY 2014/2015 PROJECTIONSKey Tax RevenuesFY 2014/2015 PROJECTIONSKey Tax Revenues
FY 2013 Proj. FY 2014 Proj. FY 2015 Proj.Projected Growth Projected Growth Projected Growth
Sales Taxes 20,019,200$ 4.70% 20,720,000$ 3.50% 21,549,000$ 3.50%
Property Taxes 23,489,823 2.90% 23,934,300 1.90% 24,400,900 1.90%
Redistributed P/T 1,510,961 N/A 1,541,200 2.00% 1,572,000 2.00%
TOT 14,706,678 7.60% 16,202,000 10.20% 17,013,000 5.00%
Utility Users Tax 6,819,149 -2.40% 7,000,000 2.60% 7,000,000 0.00%
Prop. Transfer Tax 600,000 36.80% 500,000 -16.66% 500,000 0.00%
Total 67,145,811$ 69,897,500$ 72,034,900$
SALARY AND BENEFITS
City of Santa Barbara • Finance Department 24
City of Santa Barbara • Finance Department 25
FY 2014 & 2015 PROJECTIONS
Salary and Benefits
FY 2014 & 2015 PROJECTIONS
Salary and Benefits
Salary Trends
Retirement Costs
Health Insurance Premiums
FY 2014 & 2015 PROJECTIONSSalary & Benefits – Last 5 YearsFY 2014 & 2015 PROJECTIONSSalary & Benefits – Last 5 Years
Fiscal Retirement Health Other Year Salaries Contr. Insurance Benefits Total
2008 56,308,387$ 13,957,783$ 5,965,711$ 2,636,035$ 76,231,881$
2009 57,580,238 15,121,388 6,477,379 2,892,037 79,179,005
2010 53,534,300 14,423,046 6,547,791 2,947,222 74,505,137
2011 53,675,088 14,000,511 6,805,568 2,764,982 74,481,167
2012 53,970,052 15,427,714 6,951,447 2,750,400 76,349,213
Cumulative $ (2,338,335)$ 1,469,931$ 985,736$ 114,365$ 117,332$
Cumulative % -4.15% 10.53% 16.52% 4.34% 0.15%
FY 2014 & 2015 PROJECTIONS PERS AssumptionsFY 2014 & 2015 PROJECTIONS PERS Assumptions
City Paid Portion of Contribution Rates
FiscalYear Police Fire Misc.
2011 36.629% 37.852% 20.155% Actual rates2012 40.968% 41.095% 21.890% Actual rates2013 41.130% 41.206% 22.519% Actual Rates2014 44.163% 44.264% 23.729% Actual Rates2015 46.000% 46.600% 24.902% PERS' Projected2016 46.500% 47.400% 25.300% PERS' Projected
9.871% 9.548% 5.145% Cumulative Rate Increase
26.9% 25.2% 25.5% Overall Effective Increase
City of Santa Barbara • Finance Department 28
ENTERPRISE FUNDS
City of Santa Barbara • Finance Department 29
ENTERPRISE FUNDSENTERPRISE FUNDS
Funded almost entirely from user fees (no tax support)
• Water
• Wastewater
• Airport
• Downtown Parking
• Waterfront
• Golf
• Solid Waste
City of Santa Barbara • Finance Department 30
ENTERPRISE FUNDSWater FundENTERPRISE FUNDSWater 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
City of Santa Barbara • Finance Department 31
ENTERPRISE FUNDSWastewater FundENTERPRISE FUNDSWastewater 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
City of Santa Barbara • Finance Department 32
ENTERPRISE FUNDSAirport FundENTERPRISE FUNDSAirport 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
City of Santa Barbara • Finance Department 33
ENTERPRISE FUNDSWaterfront FundENTERPRISE FUNDSWaterfront 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
City of Santa Barbara • Finance Department 34
ENTERPRISE FUNDSGolf FundENTERPRISE FUNDSGolf 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
City of Santa Barbara • Finance Department 35
ENTERPRISE FUNDSDowntown Parking FundENTERPRISE FUNDSDowntown 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)
City of Santa Barbara • Finance Department 36
ENTERPRISE FUNDSSolid Waste FundENTERPRISE FUNDSSolid 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
Questions?
City of Santa Barbara • Finance Department 37