202021 Budget Capital Improvement Progr JUNE 16 2020
2020/21 Budget & Capital Improvement Progr JUNE 16, 2020
Actions for Consideration Resolution 35 -2020 – Approving the 2020/21 Operating Budget and Appropriation Limit; Resolution 36 -2020 – Approving the Five-Year CIP and appropriating funds for 2020/21 capital projects; Resolution 37 -2020 SA - approving the 2020/21 Operating Budget for the Successor Agency; Resolution 38 -2020 – Approving the 2020/21 Master Fee Schedule
Budget/CIP Process and Purpose Process Ø Draft Budget & CIP posted on Town website on May 21 Ø 3 Public Study Sessions - May 26, June 2 and June 9 Purpose Ø Establish/review highest priorities for municipal service delivery to meet unique community needs Ø Identify, plan for and fund one-time capital needs
Danville’s Approach = Fiscal Sustainability Mission is to deliver superior municipal services that make people’s lives better Combine approaches to deliver service Invest in partnerships and technology Don’t borrow… maintain healthy reserves Estimate conservatively
Impact of Covid -19 Coronavirus (Covid-19) pandemic is unprecedented in recent history; California cities face severe revenue shortfalls due to the impact of Covid-19 on their economies; *California Cities anticipate a nearly $7. 0 billion general revenue fund shortfall over the next two fiscal years; *League of California Cities Data and Assumptions
Impact of Covid -19
Impact of Covid -19 upon Budget Process delayed Revenue forecasts developed based upon best currently available information Need to consider a range of revenue scenarios Need to consider options to re-balance the budget with less revenue
Impact of Covid -19: Major Revenues Impacted Sales Tax Recreation Fees & Charges HUTA (Gas Tax) Measure J RTS Building and Planning Transient Occupancy (Hotel) Tax
Impact of Covid -19 upon Total Revenues 2019/20 Budget 2020/21 Pre-Covid 2020/21 Post-Covid ØScenario 1 ØScenario 2 ØScenario 3 $36, 597, 954 $37, 105, 251 $34, 162, 131 $32, 075, 580 $30, 057, 824 -$2, 943, 121 -$5, 029, 671 -$7, 047, 428 -7. 9% -13. 6% -19. 0%
Modified Budget Approach Budget based upon Scenario 2 -$5. 0 million revenue Full impact is still unknown; will be ongoing and fluid throughout 2020/21 Identifies reductions in expenses and fund transfers to balance the budget Maintains reserves as added contingency
2020/21 Revenue Forecast Town General Fund Special Revenue TOTAL TOWN 2019/20 2020/21 $ 27, 091, 684 $23, 963, 524 $ 9, 506, 270 $ 8, 112, 057 $36, 597, 954 $32, 075, 581 Successor Agency $ 2, 280, 575 GRAND TOTAL $38, 878, 529 $ 2, 279, 212 $34, 354, 793 +/-11. 5% -14. 7% -12. 4% NC -11. 6%
Major Revenues – General Fund Property Tax Sales Tax Recreation Fees Franchise Fees All Other 2019/20 $14, 505, 222 $ 5, 577, 220 $ 2, 576, 145 $ 2, 326, 932 $ 2, 106, 165 2020/21 $14, 505, 222 $ 4, 339, 328 $ 1, 351, 262 $ 2, 280, 969 $ 1, 486, 743 +/NC -22. 2% -47. 5% - 2. 0% -29. 4% TOTAL $27, 091, 684 $23, 963, 524 -11. 5%
Major Revenues – Special (Restricted) LLAD Building & Planning Gas Tax Measure J RTS Clean Water Solid Waste VIF All Other TOTAL 2019/20 $ 3, 120, 682 $ 2, 212, 200 $ 1, 919, 117 $ 815, 217 $ 572, 700 $ 482, 182 $ 384, 173 $ 9, 506, 271 2020/21 $ 3, 129, 750 $ 1, 787, 458 $ 969, 080 $ 576, 288 $ 572, 710 $ 585, 000 $ 491, 771 $ 8, 112, 057 +/NC -19. 2% -49. 5% -29. 3% NC 21. 4% 28. 0% -14. 7%
2020/21 Recommended Expenditures/Transfers 2019/20 2020/21 +/- Town $33, 596, 071 $30, 978, 161 - 7. 8% Successor Agency $ 1, 180, 575 $ 1, 179, 212 NC Total Expenditures $34, 776, 646 $32, 157, 373 - 7. 5% Fund Transfers $ 4, 685, 005 $ 2, 570, 240 -45. 0% TOTAL $39, 461, 651 $34, 727, 613 -12. 0%
Expense by Department General Government Police Administrative Services Development Services Maintenance Services Recreation, Arts & C. S. TOTAL 2019/20 2020/21 +/- $ 2, 082, 094 $10, 267, 608 $ 4, 071, 336 $ 4, 972, 431 $ 7, 867, 415 $ 4, 335, 187 $33, 596, 071 $ 1, 864, 513 $10, 132, 889 $ 3, 796, 878 $ 3, 804, 345 $ 7, 362, 710 $ 4, 016, 826 $30, 978, 161 -10. 5% - 1. 3% - 6. 7% -22. 6% - 6. 4% - 7. 3% - 7. 8%
Expense by Category Employee Expenses Temporary Salaries Administration Materials & Supplies Contracted Services Equipment Program Activities TOTAL 2019/20 $12, 565, 100 $ 1, 092, 010 $ 645, 227 $ 1, 440, 577 $13, 059, 851 $ 887, 926 $ 3, 905, 380 $33, 596, 071 2020/21 $11, 288, 843 $ 787, 542 $ 521, 647 $ 1, 388, 093 $12, 573, 142 $ 686, 259 $ 3, 732, 635 $30, 978, 161 +/-10. 2% -27. 9% -19. 2% - 3. 6% - 3. 7% -22. 7% - 4. 4% - 7. 8%
Service Level Impacts General Ø Total Staffing reduced from 161 to 141 FTE (-12. 4%) Ø Hours of operation reduced from 42. 5 to 38. 5 (-9. 4%) Police Department Ø Reduced public counter assistance, parking enforcement and investigation follow-up on “C” cases Development Services Ø Increased response/turnaround time for permit applications dept. -wide; increased response time for PW inspections; increased design/development time for CIP projects
Service Level Impacts Administrative Services Ø Eliminated replacement of vehicles, technology purchases and upgrades impacting service delivery town-wide. Maintenance Services Ø Increased response time for CRM requests and park repairs; reduced funding for plant replacement and upkeep of buildings. Recreation, Arts and Community Services Ø Reduced funding and staffing for all programs, classes, events and activities; reduced availability of buildings for public use. Reduced funding for Library Services and Community Events
Ten-Year Forecast Revenues < by $16. 9 million or $1. 7 million/yr. Expenditures < by $11. 1 million or $1. 1 million/yr. Transfers < by $11. 2 million or $1. 1 million/yr. Sales Tax – 4 year recovery HUTA and Measure J RTS – 2 -3 year recovery Recreation Fees – 1 -2 year recovery LLAD Adjustment will be required
Master Fee Schedule Town adopts a Master Fee Schedule for User and Cost Recovery Fees Fee Schedule is reviewed annually 2020/21 Master Fee Schedule increased by 2. 9 % for CPI adjustment
Proposition 111 Appropriation Limit Appropriation limit set by Prop 4 (1979) and Prop 111 (1990) limits amount of General Fund revenue that can be appropriated in any fiscal year. Applies to proceeds of taxes only 2020/21 Actual limit is $43. 7 million 2020/21 G. F. revenues subject to limit is $20. 12 million Danville is well below the limit
Summary – Budget & CIP 2020/21 Budget is balanced; expenses/transfers reduced by $4. 72 million from 2019/20 Some service level reductions due to Covid-19 Operating reserve equivalent to 38. 3% of total Operating Budget; 54% of G. F. Budget (minimum 20% required) Town has no unfunded pension or OPEB liabilities Funds 16 capital projects totaling $2. 45 million - no debt Continuing on a fiscally sustainable course
Recommendation Adopt Resolution 35 -2020, approving the 2020/21 Operating Budget and Appropriation Limit Adopt Resolution 36 -2020, approving Five-Year CIP and appropriating funds for 2020/21 capital projects Adopt Resolution 37 -2020 SA, approving the 2020/21 Operating Budget for the Successor Agency Adopt Resolution 38 -2020, approving the 2020/21 Master Fee Schedule
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