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HomeMy WebLinkAboutPresentationFY 2020/21 Budget Study Session May 11, 2020 Study Session Overview Recession Impacts Operating Budget Fiscal Policy Revisions CIP Funding Allocation Review Finance Committee Recommendation Additional Requests Recession Impacts CITY COMPARISONS SARATOGA’S REVENUE STRUCTURE UNKNOWNS General Fund Revenues •Property Tax •Sales Tax •TOT –Hotel Tax •Other Taxes •Services and Fees Property Tax , 60.0% Sales Tax, 5.0% TOT, 1.5% Other Taxes , 12.5% Services , 14.0% Other Revenues, 7.0% Impact Unknowns PROPERTY TAX SALES TAX HOTEL TAX (TOT) CITY SERVICES & FEES RENTAL INCOME INTEREST FY 2019/20 General Fund Revenues REVENUES FY 2019/20 FY 2019/20 Over (Under) Revenue Category Budget Estimated Budget Property Tax 14,009,000 14,902,500 893,500 Sales Tax 1,100,000 950,000 (150,000) Hotel Tax (TOT)350,000 175,000 (175,000) Other Taxes 2,897,000 3,016,000 119,000 City Services 3,026,292 2,417,848 (608,444) Other Sources 1,669,227 1,538,620 (130,607) TOTALS $ 23,051,519 $ 22,999,968 $ (51,551) FY 2019/20 Genl Fund Expenditures EXPENDITURES 2019/20 2019/20 Over (Under) Expenditure Category Budget Estimated Budget Salary & Benefits 8,820,625 8,217,249 (603,377) CalPERS UAL Payment 1,050,000 1,000,942 (49,058) Operating Expenses 1,774,198 1,551,562 (222,636) Consultant & Contract Services 2,526,776 2,185,539 (341,237) Sheriff Services 6,057,371 6,057,371 - Internal Services Charges 2,629,224 2,629,224 - Total Expenditures $ 22,858,195 $ 21,641,887 (1,438,943) FY 2019/20 Operational Revenue ESTIMATED OPERATION RECAP: Revenues $ 22,999,968 Expenditures $ 21,641,887 FY 2019/20 Estimated Operations $ 1,358,081 Estimated Operations Revenues 22,999,968 Expenditures 21,641,887 Estimated Operational Revenue 1,358,081 Plus Use of Fund Balance Council Discretionary 47,647 Environmental Reserve 50,000 CIP Reserve 3,005,000 Use of Hillside Reserve 500,000 Less: Transfers to CIP (3,505,000) Net Fund Balance Use 97,647 Estimated Net Operations 1,455,728 Hillside Reserve Repayment DECISION POINT Estimated Net Operations $ 1,455,728 Hillside Reserve Repayment (500,000) Estimated Net Operations if Repaid $ 955,728 FY 2020/21 Operating Budget General Fund Revenues General Fund Expenditures Other Funds Projections FY 2020/21 General Fund Revenues FY 2016/17 FY 2017/18 2018/19 2019/20 2019/20 2020/21 % of General Fund Revenues Actuals Actuals Actuals Adjusted Estimated Proposed Budget Property Tax 12,003,942 12,963,531 14,166,177 14,009,000 14,902,500 14,936,000 66.5% Sales Tax 1,185,035 1,124,647 1,207,471 1,100,000 950,000 750,000 3.3% Transient Occupancy Tax 343,618 389,037 347,605 350,000 175,000 150,000 0.7% Business & Other Taxes 513,431 571,326 548,815 515,000 565,000 505,000 2.2% Franchise Fee Tax 2,356,539 2,338,794 2,482,074 2,382,000 2,451,000 2,432,000 10.8% Intergovernmental 584,480 557,026 533,058 515,000 501,456 500,000 2.2% Fees, Licenses & Permits 1,500,843 2,217,363 1,936,019 1,841,850 1,465,412 1,483,180 6.6% Charge for Services 1,666,164 1,671,955 1,416,278 1,184,442 952,436 872,584 3.9% Interest 102,787 270,929 639,154 510,000 513,167 310,000 1.4% Rental Income 494,176 445,161 432,595 399,250 263,086 297,697 1.3% Other Sources 361,396 420,339 406,703 244,977 260,911 238,077 1.1% Total GF Revenues 21,112,412 22,970,107 24,115,948 23,051,519 22,999,967 22,474,538 100% Plus: GF Fund Balance Sources Use of (Addition to) Fund Balance Reserves Carryforward Reserve - 7,246 5,264 47,647 47,647 - Development Reserve - - - - - - Environmental Reserve 50,000 50,000 50,000 50,000 50,000 50,000 CIP Reserve 1,410,648 1,872,909 1,840,866 3,505,000 3,005,000 2,360,500 Hillside Reserve 210,000 - - 500,000 500,000 - Hillside Reserve Repayment - (210,000) - Fiscal Stabilization Repayment (250,000) - - - - - LLD Fund Closeout - - - - - 844,774 Total Operating Sources 22,588,444 25,132,460 26,170,468 27,154,166 26,602,614 25,729,812 General Fund Expenditures FY 2016/17 FY 2017/18 2018/19 2019/20 2019/20 2020/21 % of General Fund Expenditures Actuals Actuals Actuals Adjusted Estimated Proposed Budget Salary & Benefits 7,171,061 7,264,949 7,617,050 8,820,625 8,217,249 9,075,239 39.1% UAL Payment 500,000 750,000 1,052,631 1,050,000 1,000,942 1,025,000 4.4% Materials & Supplies 248,600 246,785 223,304 336,370 259,705 303,665 1.3% Fees & Charges 939,859 788,811 891,961 928,982 914,327 1,045,387 4.5% Consultant & Contract Svs 2,322,212 2,034,666 2,451,965 2,526,776 2,185,539 2,365,481 10.2% Sheriff Services 5,176,515 5,319,341 5,680,745 6,057,371 6,057,371 6,408,958 27.6% Meetings, Events & Training 87,606 105,621 115,690 180,210 98,984 117,500 0.5% Community Grants & Events 222,127 233,336 242,667 308,636 258,546 303,932 1.3% Fixed Assets - 19,785 20,459 20,000 20,000 - 0.0% Internal Services Charges 2,535,472 2,626,497 2,591,332 2,629,224 2,629,224 2,563,404 11.0% Total Expenditures 19,203,452 19,389,791 20,887,806 22,858,195$ 21,641,887$ 23,208,565$ 100% Plus: GF Fund Balance Funding Uses Streets CIP 1,305,000 1,319,000 1,037,866 1,560,000 1,560,000 905,500 Park & Trails CIP 75,000 420,000 100,000 1,495,000 1,495,000 845,000 Facilities CIP 190,648 - 653,000 375,000 375,000 500,000 Admin & Technology CIP 50,000 133,909 50,000 75,000 75,000 110,000 CIP Reserve Transfers 1,620,648$ 1,872,909$ 1,840,866$ 3,505,000$ 3,505,000$ 2,360,500$ General Fund Transfers Transfer to Street CIP - - - - - - Total General Fund Transfers -$ -$ -$ -$ -$ -$ Total Transfers Out 1,620,648 1,872,909 1,840,866 3,505,000 3,505,000 2,360,500 Total Expenditure & Transfers 20,824,100 21,262,700 22,728,672 26,363,195 25,146,887 25,569,065 Net Operations 1,764,343$ 3,869,760$ 3,441,797$ 790,971 1,455,727 160,747 Other Funds Special Revenue Funds Internal Service Funds Debt Service Funds Trust & Agency Funds Capital Project Funds Special Revenue Funds •Landscape & Lighting •Landscape •Lighting •Combo •Storm Water •Pre -Prop 13 Fund Closures Internal Service Funds Insurance Support Services Asset Replacement Funds Debt Service General Obligation Bond Fund Arrowhead Community Facility District Fund Trust & Agency Funds •West Valley Clean Water Program •Arrowhead CFD Project Fund Capital Improvement Plan Funds Streets Parks Facilities Administrative & Technology Total Fund Activity Summary Revenues Expenditures Source (Use)Estimated Fund Balance && of Fund Balance Fund Category July 1, 2020 Transfers In Transfers Out Fund Balance June 30, 2021 Operating Funds General Fund Reserves Environmental Services 113,182$ -$ -$ (50,000)$ 63,182$ Hillside Stability 1,000,000$ - - - 1,000,000 Capital Projects 1,864,134$ - (2,360,500) 955,727 459,361 Facility Reserve 3,200,000$ - - 500,000 3,700,000 Carryforwards -$ - - - - Working Capital 1,000,000$ - - - 1,000,000 Fiscal Stabilization 3,150,000$ - - - 3,150,000 LLD Reserve 844,774 - - (844,774) - Compensated Absences 249,620$ - - - 249,620 Other Unassigned 1,955,727$ 22,474,538 (23,208,565) (560,953) 660,747 Total General Fund Reserves 13,377,437$ 22,474,538$ (25,569,065)$ -$ 10,282,910$ Special Revenue Funds Landscape & Lighting Districts 767,379$ 512,131 (507,457) - 772,053 Total Special Revenue Reserves 767,379$ 512,131$ (507,457)$ -$ 772,053$ Internal Service Funds Liability/Risk Management 534,895$ 511,362 (774,764) - 271,492 Workers Compensation 246,803$ 185,000 (220,910) - 210,894 Office Support Services 118,378$ 25,000 (69,250) - 74,128 IT Services 357,167$ 666,000 (750,083) - 273,084 Vehicle & Equipment Maintenance 270,119$ 275,000 (268,800) - 276,319 Facility Maintenance 625,213$ 900,000 (956,382) - 568,831 Vehicle & Equipment Replacement 534,596$ - (250,825) - 283,771 IT Equipment Replacement 527,343$ 150,000 (252,100) - 425,243 Facility FFE Replacement 180,056$ 200,000 (350,000) - 30,056 Total Internal Service Reserves 3,394,569$ 2,912,362$ (3,893,114)$ -$ 2,413,817$ Total Operating Funds 17,539,385$ 25,899,031$ (29,969,636)$ -$ 13,468,781$ Debt Service Funds 2001 Series GO Bond 820,170$ 772,250 (844,635) - 747,785 2018 Arrowhead CFD Bond 300,878 152,460 (356,650) 96,688 Total Debt Service Funds 1,121,048$ 924,710$ (1,201,285)$ -$ 844,473$ Trust & Agency Funds West Valley Clean Water JPA 581,759 985,916 (980,916) - 586,759 Arrowhead Project Fund 408,605 - - - 408,605 Total Trust & Agency Funds 990,364$ 985,916$ (980,916)$ -$ 995,364$ Total Operating Budget 19,650,798$ 27,809,657$ (32,151,837)$ -$ 15,308,618$ Capital Improvement Funds Street Projects 737,769 4,512,523 (5,250,292) - - Park & Trail Projects 1,214,750 1,448,649 (2,648,004) - 15,395 Facility Projects 671,541 620,000 (1,256,542) - 35,000 Administrative & Tech Projects 205,449 240,000 (445,449) - - Total Capital Improvement Funds 2,829,509 6,821,172 (9,600,286) - 50,395 Total Operating & Capital Budget 22,480,307$ 34,630,829$ (41,752,123) -$ 15,359,013 TOTAL FUND ACTIVITY SUMMARY FY 2020/21 General Fund Summary Revenues Expenditures Source (Use)Estimated Fund Balance && of Fund Balance Fund Category July 1, 2020 Transfers In Transfers Out Fund Balance June 30, 2021 Operating Funds General Fund Reserves Environmental Services 113,182$ -$ -$ (50,000)$ 63,182$ Hillside Stability 1,000,000 - - - 1,000,000 Capital Projects 1,864,134 - (2,360,500) 955,727 459,361 Facility Reserve 3,200,000 - - 500,000 3,700,000 Carryforwards - - - - - Working Capital 1,000,000 - - - 1,000,000 Fiscal Stabilization 3,150,000 - - - 3,150,000 LLD Closure Reserve 844,774 - - (844,774) - Compensated Absences 249,620 - - - 249,620 Other Unassigned 1,955,727 22,474,538 (23,208,565) (560,953) 660,747 Total General Fund Reserves 13,377,437$ 22,474,538$ (25,569,065)$ -$ 10,282,910$ Special Revenue Fund Summary Revenues Expenditures Source (Use)Estimated Fund Balance && of Fund Balance Fund Category July 1, 2020 Transfers In Transfers Out Fund Balance June 30, 2021 Special Revenue Funds Landscape & Lighting Districts 767,379$ 512,131 (507,457) - 772,053 Total Special Revenue Reserves 767,379$ 512,131$ (507,457)$ -$ 772,053$ Internal Service Fund Summary Revenues Expenditures Source (Use)Estimated Fund Balance && of Fund Balance Fund Category July 1, 2020 Transfers In Transfers Out Fund Balance June 30, 2021 Internal Service Funds Liability/Risk Management 534,895$ 511,362 (774,764) - 271,492 Workers Compensation 246,803$ 185,000 (220,910) - 210,894 Office Support Services 118,378$ 25,000 (69,250) - 74,128 IT Services 357,167$ 666,000 (750,083) - 273,084 Vehicle & Equipment Maintenance 270,119$ 275,000 (268,800) - 276,319 Facility Maintenance 625,213$ 900,000 (956,382) - 568,831 Vehicle & Equipment Replacement 534,596$ - (250,825) - 283,771 IT Equipment Replacement 527,343$ 150,000 (252,100) - 425,243 Facility FFE Replacement 180,056$ 200,000 (350,000) - 30,056 Total Internal Service Reserves 3,394,569$ 2,912,362$ (3,893,114)$ -$ 2,413,817$ Debt Service & Trust Fund Summary Revenues Expenditures Source (Use)Estimated Fund Balance && of Fund Balance Fund Category July 1, 2020 Transfers In Transfers Out Fund Balance June 30, 2021 Debt Service Funds 2001 Series GO Bond 820,170$ 772,250 (844,635) - 747,785 2018 Arrowhead CFD Bond 300,878 152,460 (356,650) 96,688 Total Debt Service Funds 1,121,048$ 924,710$ (1,201,285)$ -$ 844,473$ Trust & Agency Funds West Valley Clean Water JPA 581,759 985,916 (980,916) - 586,759 Arrowhead Project Fund 408,605 - - - 408,605 Total Trust & Agency Funds 990,364$ 985,916$ (980,916)$ -$ 995,364$ Total Operating Budget 19,650,798$ 27,809,657$ (32,151,837)$ -$ 15,308,618$ Capital Fund Summary Revenues Expenditures Source (Use)Estimated Fund Balance && of Fund Balance Fund Category July 1, 2020 Transfers In Transfers Out Fund Balance June 30, 2021 Capital Improvement Funds Street Projects 737,769 4,512,523 (5,250,292) - - Park & Trail Projects 1,214,750 1,448,649 (2,648,004) - 15,395 Facility Projects 671,541 620,000 (1,256,542) - 35,000 Administrative & Tech Projects 205,449 240,000 (445,449) - - Total Capital Improvement Funds 2,829,509 6,821,172 (9,600,286) - 50,395 Total Operating & Capital Budget 22,480,307$ 34,630,829$ (41,752,123) -$ 15,359,013 Fiscal Policy Statement Update New Policy Statements •Investments •Long-Term Planning •Pension Funding •Recession Preparations •Trust & Agency Policies •User Fees Policy Statement Revisions •Financial Reporting •Development Policy •Investments and Long-Term Debt •Revenue •Risk Management Capital Budget Review FY 2020/21 Capital Improvement Plan Results of CIP Prioritization FY 2020/21 Estimated Capital Improvement Plan Budget Additional Recommendations and Requests Street Improvement Projects Roadway Safety & Traffic Calming $ 75,000 Infrastructure Maintenance and Repairs 250,000 Annual Retaining Wall Maintenance & Repairs 200,000 *McFarland Avenue Curb & Gutter Replacement 350,000 *Fruitvale/Allendale Ave. Intersection Improvements 125,000 Prospect Road Improvements 40,000 Quito Road Bridges -Project Engineering 50,000 Saratoga-Sunnyvale Road Pathway Rehab (Cox to RRX)125,000 Traffic Signal Battery Backup -Citywide 150,000 Village Clock 15,500 Total Street Improvement Projects $ 1,380,500 Park & Trail Projects Park, Trail, Grounds, and Medians R&R $100,000 Guava Ct/Fredericksburg Entrance 250,000 Reconstruction of Hakone Koi Pond 300,000 Saratoga Village to Quarry Park Walkway 100,000 Kevin Moran Park Accessible Parking 95,000 Total Parks & Trails Projects $845,000 Facilities /Administrative Projects Facilities Projects Senior Center/Community Center Generator and EV Charging Stations 500,000 Administrative & Technology Projects Safe Routes to School Needs Assessment 60,000 Risk Management Mitigation Project 50,000 Total All Projects 2,835,500 Fiscal Year 2020/21 Capital Improvement Plan Estimated Budget Project Category Estimated FY 2020/21 Budget Street Improvement Projects $5,250,292 Parks & Trails Projects 2,648,004 Facilities Projects 1,256,542 Administrative & Technology Projects 445,449 Total $9,600,286 Finance Committee Recommendations Finance Committee Recommended Changes Funding Sources Funding Allocations Portion of funding from removal of 4 Landscape & Lightning District Zones 150,000 El Quito Neighborhood Improvements 150,000 Reduction of funding for Risk Management Program 50,000 Funding for Art Infrastructure Program 25,000 Additional funding for Parks, Trails, Grounds, and Medians R&R 25,000 Total Recommended Changes 200,000 200,000 Additional Request $25,000 additional SCC FireSafe Council Request $50,000 for a Wildfire Task Force Project Request