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HomeMy WebLinkAbout2018.02.16-Finance Review PresentationCity Council Retreat February 16, 2018 AGENDA •Fiscal Policies •Mid-Year Review •Five Year Forecast FISCAL POLICIES •General Fund Reserve consolidation •Development Reserve •Fiscal Stability Reserve •Fiscal Policy -Edits and Suggestions •March 1st Mid-Year Budget Review FY 2017/18 FY 2017/18 Additional Revenues Budget Estimated Revenue Property Tax 12,110,800 12,839,100 728,300 Sales Tax 1,150,000 1,060,000 (90,000) Other Taxes 3,169,429 3,289,429 120,000 Fees, Licenses & Permits 1,407,400 1,512,692 105,292 Charges for Services 1,682,215 1,686,070 3,855 Other Revenues & Transfers In 1,257,929 1,464,570 206,641 Total Revenues 20,777,773 21,851,861 1,074,088 FY 2017/18 FY 2017/18 Expenditure Expenditures Budget Estimated Savings Salary & Benefits 8,583,226 8,384,900 198,326 Operational Expenditures 11,855,599 11,844,903 10,696 Transfers Out 1,587,909 1,587,909 - Total Expenditures 22,026,734 21,817,712 209,022 Budget - Transactional Net Operations (1,248,961) 34,149 Plus: Budgeted Use of Reserves Environmental Reserve 50,000 50,000 Capital Improvement & Efficiency Reserve 1,530,000 1,530,000 Development Reserve 57,909 57,909 Total Net Operations (Sources & Uses)388,948 1,672,058 GENERAL FUND FY 2017/18 Budget & Year End Estimates YE Estimated - Transactional Net Operations PROPOSED BUDGET ADJUSTMENTS ISF: Facility Replacement Fund •$41,488 Re-appropriation of PY funding Capital Improvement Fund: EV Fast Charge Station •Project Scope Change Capital Improvement Fund: Village Pathway –Phase 1 •$100,000 of additional funding Capital Improvement Fund: Prospect Road Improvements •$160,000 of additional funding PROSPECT ROAD FUNDING OPTIONS $160,000 Additional Funding Request •From Current Year closed CIP project funding •Reduces available FY 2018/19 CIP Reserve funding •From Current Year operational funds •Reduces Net Operations, thereby reduces FY 2019/20 CIP Reserve funding •From SV Clean Energy $100,000 Repayment + $60,000 •Reduces Council Discretionary from $158,000 to $58,000 •Remaining $60,000 from one of above options FIVE YEAR FORECAST Revenue Factors •Property Tax •Sales Tax •Other Taxes •Services •Permits, Fees, Licenses •Other Revenues FIVE YEAR FORECAST Expenditure Factors •Salary & Benefits •CalPERS rates / City’s UAL •Operating Expenditures •Sheriff Services •Contract Service Rates and SCC UAL FIVE YEAR FORECAST CalPERS Liability •Determines what is present amount needed for future obligations •A function of long term expectations: •Actuarial assumptions (economic and demographic) •Inflation •Actual Rate of Return (above inflation) •Margin (built in buffer for adverse investments) CITY OF SARATOGA’S UAL UAL at FYE 2018 = $8.0 million •Increased with Discount Rate assumption change (from 7.5% to 7.0%) •Expect future increases with 2017 assumption changes •May change future gain/loss bases to 20 year amortization periods Required contributions •Additional changes will increase future required contributions FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 City’s payment by policy $750,000 $750,000 $750,000 $750,000 $750,000 $750,000 Less: Required Contribution $328,000 $488,000 $619,000 $779,000 $913,000 $996,000 Excess Contribution or (Shortfall)$422,000 $262,000 $131,000 ($ 29,000)($163,000)($246,000) SCC SHERIFF SERVICES Projection = $1.6 Million cost increase in 5 years •Contract Service Increases •Lessor of: 1) change in total compensation, or 2) CPI + 2% PLUS % change in PERS costs •Burdened rate •Escalating CalPERS Costs •Normal Cost Rate •3% at 50 plan rate •Plus 2.581% Pension Obligation Bond rate •UAL contribution increases REVENUES VS EXPENDITURES Ten Year Revenue and Expenditure History –Net of Transfers