City of PinoleBudget Workshop

April 29, 2014

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FY 2013-14 Budget Performance Update-Quarter 3

Overview of Proposed FY 2014-15 Budget City Council Questions Public Testimony Council Discussion

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FY 2013-14 Budget Performance

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Revenues Greater than Forecasted: Sales Taxes +

$66,572 Measure S Taxes +

$80,739 Development Services Fees + $63,967

Revenues Less that Forecasted: Cable Television - $(4,616)

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Expenditures Less than Budgeted: Administrative Departments $35,857 Police Department $87,382 Fire Department $53,027 Public Works Department $22,685 Recreation

Overall Performing to Budget $ -0-

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Year-over-Year Performance is Positive Reflecting: Full-year collections from new and renovated

restaurants Continued growth in collections from vehicle fuel

sales New businesses at Regional Shopping Centers Recovery of consumer spending for discount

store consumables and personal electronics (General Consumer Goods reporting category)

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Prospects for Next Budget Year Continued Growth from new Businesses such

as:

▪ TJ Maxx ▪ Ulta ▪ Krispy Kreme Donuts▪ Dickey’s Barbeque

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General Fund: Increase Sales Tax Forecast $66,572

▪ Allocate additional Taxes to General Reserve

Measure S Fund: Increase Sales Tax Forecast $80,739

▪ Appropriate additional to Fire Overtime For unanticipated

Labor Code 4850 Workers Compensation Coverage

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Overall Revenue Performance 78.4% (including Accounts Receivable)

Combined Expenditure Performance 73.1%

Possible favorable Year End $681,185 “net results” of 5.3%

Anticipated General Reserve $836,234 Balance at June 30, 2014

(approx. 9% of Appropriations)

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Outstanding Accounts Receivable $1,531,562as of March 31, 2014

Primary Dry Period July – December

General Fund

▪ Local Property Taxes $ 800,000▪ Redevelopment

Surplus Allocation $ 700,000▪ Vehicle Licensing Fees $ 600,000

Total $2,100,00010

Sewer Fund $2.5 million▪ Use Fees $2,300,000▪ Hercules

Reimbursement $ 250,000

30-day Accounts Payable funding required for Operations:

Payroll (including benefit charges $1.1 million Vendor Payments $ 500,000

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Proposed FY 2014-15 Budget

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Revenues $13,293,226

Expenditures $13,081,493

Total $ 211,733

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Revenues $13,293,226 Including:

▪ Property Tax Revenues Increased 3.8% to $2.1 million

▪ Sales Tax Revenues Increased 3.0% to

$3.5 million▪ Measure S (Use Tax) Increased 1.6% to

$1.8 million

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Excluding (prior year collections for):▪ Con Fire Service Agreement

Tara Hills Area ($150,000)▪ 22.5% Loss in Police Dispatch

Reimbursement - Hercules ($100,000)▪ Federal DOJ COPS Grant

Patrol Officers ($223, 214)▪ Fire SAFER Grant

Battalion Chief Funding ($125,692)22

Expenditures $13,081,493 Including:

▪ 2.5% One Time Pay Adjustments

(excluding PPEA & IAFF)

▪ Continuation of Employee Health and Retirement Cost Sharing

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New For FY 2014-15:

▪ City Clerk

Part Time Administrative

Secretary (un-benefited) $ 21,860

▪ Fire

Part Time Administrative $ 40,215

Analyst (un-benefited)

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Also Including:

▪ Fire Equipment Lease $70,433

▪ Replacement of 2 Police Vehicles $75,000

▪ L&LD Business Assistance Grants $ 5,000

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Redevelopment “Surplus”

Allocations $600,000 Property Tax Administration

Lawsuit Refund $125,000 Unanticipated FY 2012-13

Tax Revenues $ 44,662 Unanticipated FY 2013-14

Tax Revenues $ 66,572

Reserve Balance $836,234

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Projected Reserve Balance $836,234

Plus▪ Excess Redevelopment

January 2015 Allocation (est.) $170,000

Projected June 30, 2015 Balance $1,006,234

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Conversion - Fire Station 74 ($350,000)

Chevron Property Tax

Assessment Appeal ($100,000)

Stege Firing Range Lawsuit ($ 50,000)

MPA Liability Deductible

(pending case) ($ 25,000)

Unfunded Current Liabilities($525,000)

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Plus Unknown(s):

▪ PERB

▪ Verizon Wireless

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Police Department

Federal Cops Hiring Grant Expiring $223,214

Funds Will Be Expended by May 23, 2014 for 2-FTE (Patrol)

Funding for These Positions Will Be Reallocated to Measure S Fund

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Fire Department Measure S

▪ Add Part Time Administrative Analyst $ 40,215 Conversion Land Acquisition $350,000

Total $390,215

SAFER Grant $439,271Funding for 4 Full Time FirefightersRequires Minimum Staffing of 15- FT2-year funding authorization expires December 31, 2015

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General Fund Services & Supplies

(Re-open Fire Station 74) $ 36,620

PERB Labor Complaint Two Issues on Appeal

▪ Public Safety Employee Retirement Funding Contributions

▪ Retroactive Fire Department Overtime

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Administrative Departments

WCCTAC Fees (estimated) $11,193 Election Costs (November 2014) $16,000 Part Time Administrative Secretary $21,860 Retiree Health Insurance $15,327 Pension Obligation Bond Payment $15,000 City Attorney Fees

($92,251) External Recruiting Support $20,000

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Police Department

Additions:

▪ Police Computer Maintenance

(MDC’s) $18,000▪ Police Dispatch 911 System

Support (AT&T) $16,500▪ Additional Overtime Police

Dispatch $10,000

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Fire Department

Reductions:▪ Salary Savings (new hires) ($70,408)▪ Fire Safety Clothing

(Replacement) ($25,000) Fire Vehicle Maintenance ($19,205)

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Fire Department Additions:

▪ Fire Dispatch Charges/Fees

(Con Fire) $ 16,530▪ Part Time Admin. Analyst $ 40,215▪ Fire Chief Employment Benefits $ 51,737▪ Increase Fire Dept. Overtime$ 127,844

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Public Works Department Additions:

▪ Contract Traffic Signal

Maintenance (CCC & CalTrans) $27,500

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Revenues $1,115,770

Including Donations/Fundraising Targets:▪ Sr. Center / Senior Foundation $40,000

▪ Youth Center / Pinole Youth

Foundation $15,000▪ General Recreation / City

Sponsored Events $10,000

Total $65,000

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Revenues $1,115,770 Expenditures

$1,173,357 Current Period Shortfall $

57,587

▪ Swim Center (external allocation) $ 45,000▪ Recreation Fund Balance $ 12,587

$ 57,587

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Revenues $219,068 Including:

▪ Fundraising ($25,000)

Expenditures $270,533Total Operating Deficit ($51,465)

Transfer-in General Fund Allocation $ 9,375 Carryover Funds Used $ 42,090

$ 51,465

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Revenues $403,867Expenditures $519,992

Total Operating Deficit ($116,125)

Carryover Funds Available $404,754

Temporary & One-time Expenditures General Plan Housing Element $ 30,000 Part Time Permit Technicians $ 71,715

Combined Temporary $101,715

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Revenues $28,273,801 Including:

▪ Hercules WPCP Reimburse $ 1,665,874▪ Hercules Facilities Upgrade $11,091,500▪ Pinole Facilities Upgrade $11,091,500▪ Pinole Ratepayers $ 4,409,657▪ Pinole – Other Revenues $ 15,270

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Expenditures $27,230,013

▪ Plant Operations $3,331,747▪ Collection System $ 961,440▪ Capital Equipment $ 103,000

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Expenditures $27,230,013

Also Includes for Pinole Only:▪ Depreciation $ 580,000 ▪ Debt Service $ 753,826▪ WPCP Upgrade $21,500,000

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Wastewater Treatment and Collection

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Redevelopment Close-out Activity $250,000 Payment of Enforceable Obligations &

Disposition of Residual Property

Administrative Staff Support Charges:▪ City Manager –

▪ Administrative Oversight) $ 59,384▪ Assistant City Manager –

▪ (Property Disposal) $ 63,363

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▪ Finance Director –

Financial Mgmt/Reporting $ 59,390▪ City Clerk –

Administrative Support $ 53,611

Total Staffing Charges $235,748

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Attorney Support Charges $ 12,000

Oversight Board CATV

Public Broadcasting $ 2,000

Expenditure Total$249,748

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Revenues $ 65,111

Includes: PALC Ground Lease $ 56,111 Loan Repayments $ 9,000

Total Revenues $ 65,111

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Expenditures $ 64,547 Includes Staffing Allocations:

▪ City Manager $ 5,938▪ Assistant City Manager 10,561▪ Finance Director 9,898▪ Planning Manager 7,164▪ HR/Housing Specialist 5,066

Sub Total $38,627

Housing Certification $25,920 Total Housing $64,547

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