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HomeMy WebLinkAbout06/06/16 CC AGENDA PACKETCouncil Chambers, City Hall, 1501 Truxtun Avenue Department Head Presentation Meeting REGULAR MEETING - 12:00 PM 1. ROLL CALL 2. PUBLIC STATEMENTS 3. WORKSHOPS a. Department Budget Presentations 1. Water Resources 2. Public Works 3. Community Development 4. Recreation and Parks b. Fund Accounting and Governmental Budgetary Practices for the City of Bakersfield. 4. ADJOURNMENT 06106116 CC AGENDA PAGE 1 ADMINISTRATIVE REPORT MEETING DATE: 6/6/2016 Workshops 3. a. TO: Honorable Mayor and City Council FROM: Alan Tandy, City Manager DATE: 5/5/2016 111-11 V 03 SUBJECT: Department Budget Presentations 1. Water Resources 2. Public Works 3. Community Development 4. Recreation and Parks STAFF RECOMMENDATION: BACKGROUND: Water Resources, Public Works, Community Development and Recreation and Parks staffs will provide a detailed overview of their respective department FY 2016-17 proposed operating budgets and capital projects. The budget presentations will include discussion regarding the goals, accomplishments and significant budget changes for the respective departments. ATTACHMENTS: Description Type D ftiteir ReSOUirces PoweirP6int Ipireav >entaYiion Piresentadon D PLIUR, Works Pa weirP6int piresentadon Piresentadon D C01MIMUINtyDev PowrairPo iritI pireseiritati'ioiri Piresentadon D Reareadon & Pa irks Pa weirP6int Ipireav >entatiion Piresentadon 06106116 CC AGENDA PAGE 2 m �, y �, y. µ • Administered Urban Bakersfield Water Use Efficiency Project Grant • Cleaned Over 130 Drainage Basins • Completed Upgrades, Rehabilitation, and Column Extensions on 14 Domestic Water Wells • Initiated Design and Construction of Emergency Wellhead Treatment and Water Supply Project • Administered City's and County's join Storm Water Management Plan • Replaced approximately 230 Service Lines on Domestic Water System through contractor • Replaced approximately 125 Concrete Panels on the Kern River Canal • Installed Arsenic Wellhead Treatment Facility at Domestic Water Well CBK 41 (Jewetta Ave, North of Westside Pkwy) • Collaborated with PG &E on Rate Adjustment Study; savings estimated at $300,000 • Installed Underground Piping Improvements along Jenkins Road and Brimhall Rd /Allen Rd Intersection, allowing improved water pressures to residents in the area • With the support of the City Manager's and Attorney's Offices, Water Board, and our partners from ID4 and Kern Delta, we successfully submitted our application to become a Groundwater Sustainability Agency through DWR • Achieved -25.7% cumulative reduction in water use from June 2015 to April 2016 6/6/2016 1 06106116 CC A EN A PAGE • Use of City Sourced Mobile App: • Notified residents of water waste using door hangers • Over 1,430 notifications received in FY 2015 -16 • Shortened time between knowledge of broken main service lines and repairs C_ I Ty O I . Qg b rr,Ar ferry cr o R usr f iarna • Water Conservation Radio Campaign: • Partnered with Water Association of Kern County and other Local Water Purveyors • Streaming from May 2016 through September 2016 P Residential Rebate Program • 150 High- efficiency toilets (up to $100 rebate) • 117 High- efficiency clothes washers (up to $150 rebate) • 30 Smart irrigation controllers (up to $125 rebate) Free Conservation Kits • 381 kits issued • Two high- efficiency showerheads (use 2 gallons per minute) • One hose nozzle • Two bathroom faucet aerators (use 1 gallon per minute) • Toilet leak tablets • One kitchen faucet aerator (uses 1.5 gallon per minute) 6/6/2016 3 06106116 CC A EN A PAGE 5 Sprinkler Nozzle Voucher Program Domestic Water Well #41 (Jewetta, North of Westside Pkwy) Main Line Extension (Brimhall & Allen) 6/6/2016 C! 06106116 CC A EN A PAGE 6 6/6/2016 INJOR"i, / 06106116 CC AGENDA PAGE 7 Ag Water Division FY 2016 -17 Proposed Expenditures $4,646,1;27 n Operations and Maintenance ($2,784,866) om Outside Services ($804,103) � Interfund Charges ($469,392) uum Internal Vehicles ($348,821) m Hydrographic ($239,796) Ag Water Division FY 2016 -17 Estimated Revenues $,774,000 WJAY &'dY ffll,9iJ4f 111 l3kV'A .1111, oum Contract Water Sales ($2,530,000) uum Spreading Facility ($540,000) - Misc Revenue ($354,000) u Cost Recoveries ($350,000) 6/6/2016 A 06106116 CCAGENDA PAGE V Domestic Water Division FY 2016 -17 Proposed Expenditures $23,373, .i 67 O & M Contractor ($7,046,979) avid Power Costs ($4,532,000) Water Supply Programs ($3,493,000) n Operations ($3,741,652) umu Capital Improvements ($1,000,000) Debt Service ($1,643,855) Administration ($1,164,681) Pump Taxes ($751,000) Domestic Water Division FY 2016 -17 Estimated Revenues $22,469,700 VMh£FR RFS'".kVRC"L�YFPPANYhPP NY mi Residential ($15,000,000) m Commercial ($3,200,000) Misc Revenue ($1,619,700) a Public Agencies ($1,350,000) oum Connection ($1,300,000) 6/6/2016 7 06106116 CCAGENDA PAGE 9 Sim" $10.00 0140.00 SIMM nOOm $30" $040 $0.0 S"M m_00 cps FRESNO SFOMOM ABAMM law BEACH OXNAEO NOTE: Average based on 28 CCF per month for 314 "meter - 11"1r!,1011 a 1�a¢w.mu�rmrtmwr ISIMINEMMIM Domestic Water Service Connection $ 600,000 Replacement Program Domestic Water Wellhead Facility Upgrades $ 400,000 6/6/2016 10 06106116 CC A EN A PAGE 11 6/6/2016 Proposed Rate Increase • 3.5% Proposed Increase on all fees • Will help meet costs of new water supply programs, meet water quality standards, and fund capital costs • Quantity Rates: • Last increase... October 1, 2010 • Monthly Readiness -to Serve and Monthly Private Fire Protection Service Charges: • Last increase... October 1, 2006 • Average City Domestic Monthly Water: • $36.20 (as proposed) W-P6IXI SDEPA EW SN.Q0 SM.W $7o_oo SOM swAo sam 6W.W sam $10.00 $0.00 pi d nd—& 3 V-91. W.I. C. WATERRESMR � NOTE.• Average based on 28 CCF per month for 314 " meter 0j 6/6/2016 MiM0A0 - - - "ODD 13 AMEMGE MOMMLT BAiEM BILL MiADO MAO -- � M.70 — MWAD------------ —' - $107.40 k Mf0A0 -- �69.01 $75.70 MmAo $36 20, . 3W-P2 (Os proposetl) Mo.00 Cos WARPYFSd IPCEt OEPAR(MEMding Source F691D S1CXiiOM AX1116M lOM6 ■HIGI OAIAlD NOTE: Average based on 28 CCF per month for 3/4 'meter Domestic Water ;Service Connection, $ ,600000' i; Replacement Program Domestic Water . Wellhead Facility Upgrades $ 400,000Fun 10 a 6/2/2016 06106116 CC AGENDA PAGE 13 423 US 15/16 16/17 Ref use rates — in f3roposed 3% rate increase * 3.1% haulems' contrad increase (based on CPI) * Residential customers: frorr $190.02 to $195.T2 annudly Sewer rates — a Proposed 2.4% rate Increase a Residential custorners: frorn $210to V215 annucMy 6/2/2016 N 06106116 CC AGENDA PAGE 14 y m",-%, x� � < { © :y<� » •±, \ . 0 I ; ,01 '' momm ..� \���� ^�� ��~� � � � � !IM � !wl I 6/2/2016 FY 16/17 Action Plan I I m Continue to convert more of City's fleet to clean- air vehicles.. ■ 79 LNG & CNG- vehicles in City Fleet as'of December 2015 m.SA9K gallons of LNG and 61K gallons of CNG used in Calendar Year 2015 15 ,\ ƒ \\ ` ve A � � << :� m ^ \� f \/` � \ \\ ƒ \� :� � � � � � ^� \. ^ y z � y > �: �`�. ��\ y< . . 2° . �it d e,» �. I, �Jnrmavo/ij" HA IiAt a Traffic Signal & Related Improvements: w New traffic signal at Berkshire & Union * Pedc-Adan Countdown Timers * Autoscope/vehicle detection cameras ­ Year 2 of 4 a CDBG Area s Brundage Lane and Union Avenue Phase III (Mlltl- phased project) a El Toro, Oleander, Castro, and P Street areas a Street Resurfacing Funding for Street Maintenance a Pavement Rehabilitation- * Callifomia Avenue frorn Oakz Street to 11 Street * P Street from Brundage Lane to California Avenue o Me Lane Improvements me A Street frorn Brundage Lane -to California Avenue, and Brundage L ,,, frorn Oak Street to swell Street a Kern River Bihe Path Rehabilitation: Buena Vista Road to Coffee Road a Bridge Preventative Maintenance 6/2/2016 20 06106116 CC AGENDA PAGE 31 Union Avenue m Storm Drain 11TIprovements & Right of Way Acquisition: Brundage Lane and Union Avenue (Related to CDBG Pro ject) a B&zersfield Municipal Airport: * Hangar door rehabilitation * Miscelbneous repairs m North Taxillone Rehabiftation -- Phase 2 a MLK Park Lighting Upgrade o Wastewater rreatrnent Plants: a Replace two sludge pumps at Plant 2 and Plant 3 im Miscellaneous upgrades to Treatment Nants 6/2/2016 21 06106116 CC AGENDA PAGE 32 6/3/2016 2:54:36 PM Community Development Department Historical Staffing Levels * FY 16 CD Budget Presentation V6 7 06106116 CC A EN A PAGE 35 \ \ \?� T « >: ,11MY/00 } \} Ar, \ \ Plnning .d Generated Assisted with development of Locally Alignment 1, 1. Began • on . •' Area a IMEAM 6/3/2016 2:54:36 PM Completed Housing Began work on General Element Update Plan Update FY 16 CD Budget Presentation V6 I= 5 06106116 CC A EN A PAGE 38 6/3/2016 2:54:36 PM Sphere of Influence (SOI) Update Annexation 639 HWI Planning Dion Projects n-t2d.1 -ntitled New Major -Lve-4VA f Ale,411,W4 Gateway Project @ Hosking & Hwy 99 (Land Use Entitlements & EIR) FY 16 CD Budget Presentation V6 1.1 06106116 CCAGENDA PAGE 39 6/3/2016 2:54:36 PM Entitled Planning Division Projects New Major Developments: A ,, . Allen Road & Brimhall '•id Plan) (Land Use Entitlements & PCD Planning / Projects 2015/16 Facilitated Local New Growth & Infill Development C-onditional Use Permits: f Mir x ,r, - - Hyatt Hotel - Sull 's Market r � n - Retail & Office 71 ff-,. °CT Ir " @ Coffee Road �r & Stockdale Hwy d� " °� .��.. `. �J, Uf 3"32 FY 16 CD Budget Presentation V6 7 06106116 CC A EN A PAGE Planning o a Projects , , %" it 1""'r : . ® Assisted Living Facilities — Bakersfield Senior Village @a Hageman & Knudsen Dr. — Maple Ridge 6/3/2016 2:54:36 PM Planning Division Projects 1g, ts ® Implemented NDA process for preparation of Planning Commission Agendas ® Maintained Metropolitan Bakersfield Habitat Conservation Program gww M SeflwWw . w. ...uM'Y;$ ftv� hill Wig � nn10 � lIVC� r ® Reactivation of Bakersfield Habitat Conservation Program FY 16 CD Budget Presentation V6 18 0 06106116 CC A EN A PAGE 42 6/3/2016 2:54:36 PM ism= Initiate the implementation • the Station 4. e-a Plan FY 16 CD Budget Presentation V6 10 06106116 CC AGENDA PAGE 43 Economic Development Projects 2015/16 Accomplishment Highlights • Adopted Economic Opportunity Area (EOA) Plan and activated 6 EOAs • • • 5 TIM FY 16 CD Budget Presentation V6 r' IM 6/3/2016 2:54:36 PM 12 06106116 CC A EN A PAGE 45 6/3/2016 2:54:36 PM ® Completed construction Completed construction of Mill Creek Courtyard of Park 20t" Apartments Senior Residences 75 FY 16 CD Budget Presentation V6 13 06106116 CC A EN A PAGE 46 Zconomic Development 2016/17 Action Plan Highlights ® Continue further development of Economic 6/3/2016 2:54:36 PM 27 FY 16 CD Budget Presentation V6 14 06106116 CC A EN A PAGE 47 CDBG, ESSG & 1401PWA Entitlernelyd * = $3,932,648 HOME Erdlideynervit *:= $1,113, 28 Action Plan Highlights Capital Improvements = $2,018,672 6/3/2016 2:54:36 PM Rew Lon5crucc1Vn raaanLance i ' = $833,462 - - *--- - - ---- - - -T T $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 * Includes Program Income 29 Castro Area Curb/Gutter DO 000 $200,000 $300,OW $4DO,000 $500,000 $600,000 $700,000 FY 16 CD Budget Presentation V6 15 06106116 CC A EN A PAGE 6/3/2016 2:54:36 PM Building Activity Total Building Permits by Fiscal Year 14,000 j 12,000 10,000 8,000 8,497 6,000 4,000` 2,000 r�f�ri �� FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 *'Total permits projected through year based on actuals as of 5/31 , FY 16 CD Budget Presentation V6 17 06106116 CC A EN A PAGE 5 Building Budget History wwwi ^m qww «.♦ Personnel $4,657,188 $4,999,490 $4,882,271 -2.3% Operating $591,227 $734,440 $779,476 6.1% Capital Outlay $33,983 $0 $0 - 100.0% Total $5,282,398 $5,733,930 $5,661,750 -1.3% Employees 41 41 40 -2.4% 33 Building Activity Total Building Permits by Fiscal Year 14,000 j 12,000 10,000 8,000 8,497 6,000 4,000` 2,000 r�f�ri �� FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 *'Total permits projected through year based on actuals as of 5/31 , FY 16 CD Budget Presentation V6 17 06106116 CC A EN A PAGE 5 6/3/2016 2:54:36 PM 6,000 5,000 4,000 3,000 2,000 1,000 0 Residential Solar Permits by Fiscal Year FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 * Total permits projected through year based on actuals as of 5/31 6 FY 16 CD Budget Presentation V6 18 06106116 CC A EN A PAGE 51 New Home Construction SFR Building Permits by Fiscal Year 1,600 1,400 _ 4,446" 1,200 1.45 1,000.. 800 /;, 600 ,, „ , r , ,,,, YJpg y 400 200 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 * Total permits projected through year based on actuals as of 5/31 6,000 5,000 4,000 3,000 2,000 1,000 0 Residential Solar Permits by Fiscal Year FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 * Total permits projected through year based on actuals as of 5/31 6 FY 16 CD Budget Presentation V6 18 06106116 CC A EN A PAGE 51 FY 2015/16 Accomplishments —1St Floor Plan Check area remodel completed — River Bed Encampment Abatement Policy continued FY 2016/17 Action Plan Highlights — Complete remodel to first floor (conference room) — Adopt 2016 California Building Codes Solar panel installation activity continues* — $220 Million in Residential Solar Permits — $7 Million in Commercial Solar Permits 3111a F2 RINUM — Artisan Square at Brimhall and Allen — Reuse of the Montgomery Wards on Golden State and F by Canyon Hills Assembly of God * FY 15/16 to date as of 5/31/2016 FY 16 CD Budget Presentation V6 M 38 6/3/2016 2:54:36 PM 19 06106116 CC AGENDA PAGE 52 Total Cases Processed 8,557 ENO 6/3/2016 2:54:36 PM 39 FY 16 CD Budget Presentation V6 20 06106116 CC AGENDA PAGE 53 LA ' y r- �/� t° /« � .�» ✓ Maxicom Irrigation Program Phase II - Update • 2014 Water- Energy Grant Program, approx. $681,739 • 14 Parks Have Been Completed • 8 Parks Remaining as of April 30, 2016` • Estimated Completion Date August 31, 2016 • Estimated Annual Savings of 30% on Water Usage Compared to 2013* dfm • Equivalent to Annual Usage by 388 Households' --1 y— of wafa, —g, 5/26/2016 5 06106116 CC AGENDA PAGE 58 Partnerships & Sponsorships • Kaiser Permanente Operation Splash: Lessons and Passes • First 5 Kern: Make A Splash • USA Swim: Reduced Cost Swim Lessons • Kern Trophy: Donated Softball Trophies • Bakersfield Breakfast Rotary Club: • 1,000 Flags event • Cleanup at San Miguel Grove • Campout Against Cancer @ State Farm Sports Village Par z1fl. 5/26/2016 06106116 CC AGENDA PAGE 59 5/26/2016 Director I Assistant Director I Recreation Division i Sports /Athletics ' Park)Streetscape Maintenance Special Events, Sounders & Silver Creek Community Center urban froreslry/rrees hiLK Community I Center Craffworkers Repair & Maintenance Administrative I Services Financial Support Services Planning /Projects - CIP & Major Repairs 06106116 CC AGENDA PAGE 60 Parks $ 14,933,529 $ 14,663,832 $ (269,697) -1.84% Recreation 2,901,543 2,836,341 (65,202) -2.30% Administration 1,186,585 1,052,291 (134,294) - 12.76% Total Appropriations $ 19,021,657 $ 18,552,464 $ (469,193) -2.53% Resources General Fund $ 18,991,657 $ 18,522,464 $ (469,193) -2.53% Amtrak Operations 30,000 30,000 0 0% Total Resources $ 19,021,657 $ 18,552,464 $ (469,193) -2.53% 160 150 140 Staffing Complement FY 2010 -11 thru FY 2016 -17 2010/11 2011/12 2012 /13 2013/14 2014/15 2015 /16 2016/17 W, Staffing Level Par 5/26/2016 i 06106116 CC AGENDA PAGE 61 600,000 500,000 400,000 300,000 200,000 100,000 2010/11 2011/12 2012/13 2013/14 2014/15 ncrease of 21 % Over 5 rears 5/26/2016 9 06106116 CC AGENDA PAGE 62 • Budgetary Reductions /Eliminations °r� X01 iii • Eliminate After School Program at Silver Creek Park /nriG /� lei • Eliminate Evening Lap Swim at McMurtrey from November l It thru May 1 1 th • Reduce 1/2 Hour of Midday Lap Swim at McMurtrey • Eliminate 2 of 3 Family Fun Nights • Eliminate 6 of 8 Toddler Parent & Me Programs • Reduce 1/2 Hour Per Day of Summer Recreational Swim at McMurtrey, MLK, and Jefferson daily • Reduce 1/2 Hour Per Day of Summer Recreational Swim at Silver Creek on Saturday and Sunday 5/26/2016 10 06106116 CC AGENDA PAGE 63 Parks Division Budgetary Reductions • Three Full Time Laborer Positions Frozen • Ten Temporary Laborer Positions Vacant • Total Loss of Over 16,000 Hours of Work • Acreage Has Increased Whereas Workforce Decreased • Less Frequency of Mowing at Parks • Less Frequency of Streetscape Maintenance • Decrease in Ability for Timely Response to Issues Overtime Pay: Special Projects • Kern River Parkway Encampments Clearing • West Side Parkway Weed and Trash Abatement • CifySourced Mobile App Work Orders Projected Growth • Increase of 14.81 Acres FY 2015/16 D • Increase of 59.68 Acres FY 2016/17 , y3i "lu'y I 14.00 12.00 10.00 8.00 6.00 Acres Maintained per Park Maintenance Employee FY 2010-11 thru FY 2016 -17 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Acreage Increase of 17.7% Since FY 2012/13 1,300 Total Acres 2016/17 Park ryul'rill 5/26/2016 11 06106116 CC AGENDA PAGE 6 CDBG Beale Park Playground Shade Structures CBDG Wilson Park Playground Shade Structures CDBG Stiern Park Playground Shade Structures Park Improvement State Farm Sports Village Phase III Park Improvement Mesa Marin Sports Complex Phase II 2 $ 52,020 7 $ 52,020 7 $ 52,020 6 $ 1,200,000 3 $ 275,000 J:a mr!", 5/26/2016 12 06106116 CC AGENDA PAGE 65 p k � ADMINISTRATIVE REPORT MEETING DATE: 6/6/2016 Workshops 3. b. TO: Honorable Mayor and City Council FROM: Nelson Smith, Finance Director DATE: 5/26/2016 111-11 V 03 SUBJECT: Fund Accounting and Governmental Budgetary Practices for the City of Bakersfield. STAFF RECOMMENDATION: BACKGROUND: Finance Director Nelson Smith will provide the City Council with a presentation covering various components of the City's accounting and budgetary practices. ATTACHMENTS: Description D PoweirP6int Piresentadon Type Piresentadon 06106116 CC AGENDA PAGE 67 Council Workshop June 6, 2016 • �' • r1rk 1571 r :. _ • • Fund Accounting • Types of Funds / # of Funds • Non - Departmental Budget • Transfers In / Out • Fund Balance • Encumbrance Carryover • Manager's Carryover z 6/1/2016 1 06106116 CC A EN A PAGE 68 • 08 — Fund Accounting is a tool for organizing and presenting data about financial resources that highlights the fact that certain resources have been "segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations ". (Source — National Council on Governmental Accounting) Fund Accounting - Continuei • What are the components that make a "Fund" — A set of accounts that are used to compile a: • Balance Sheet — Assets — Liabilities — Equity accounts (Fund Balance /Retained Earnings) • Income Statement — Revenues and expenses — Other sources and uses of funds 3 4 6/1/2016 N 06106116 CC A EN A PAGE 69 • Accounting - Continuet • Categories of Funds — Governmental Activities o Used to account for activities primarily supported by taxes, grants and similar revenue sources — Proprietary (Business type) Activities o Used to account for activities that receive significant support from fees and charges for services provided — Fiduciary Activities • Used to account for resources that a government holds as a trustee or agent on behalf of an outside party s • General Fund (3) • Special Revenue Funds (20) — CDBG Block Grant — TRIP Federal Earmarks — State Gas Tax — Supplemental Law Enforcement Grant • Debt Service Funds (4) — General Government (HUD Section 106 loans) — Successor Agency Debt ( former RDA ) 6 6/1/2016 C 06106116 CC AGENDA PAGE 7 • Capital Project Funds (11) — Capital Outlay Funds — Road Utility & Surcharge Fund — Park Development Fund —Transportation Development Fund ."Toprietary (Business type) Funds • Enterprise (9) — Wastewater Treatment (4) — Solid Waste (trash collection & recycling) — Agricultural Water — Domestic Water — Municipal Airport — 18th and Eye Parking Garage • Internal Service (2) — Equipment Management — Self Insurance 6/1/2016 4 06106116 CC A EN A PAGE 71 • Special Deposit Funds (7) — Parks Maintenance Districts — General Plan Maintenance — Police Seized Asset Trust — Habitat Conservation Trust — Public Works — Subdividers Trust • Median Fees • Planned Drainage Area Fees • OPEB Irrevocable Trust (retiree medical) (1) • Fireman's Disability & Retirement Fund (FDRF) (1) • Agency Funds (22) — Community Facility Districts (3) — Special Assessment Districts (19) • • Accounting (80 individual fund account groups) — collection and maintenance of detailed financial data • Financial Reporting (27 blended fund groups) — Aggregation of detailed data from the accounting system into a form suitable for decision making — GASB application often involves treating two or more funds used for accounting purposes as a single fund for financial reporting purposes 10 6/1/2016 V 06106116 CC A EN A PAGE 72 • Why do we have Non - Departmental Budgets — Costs that don't fit into a specific department operation group or capital project category • General Fund — Payments for Retiree Medical costs — Accrued leave payouts (sick /vacation upon retirement) — Property tax administration fees — Auditing costs — Contributions to other agencies (senior center, etc.) — Funds set aside for possible Cost of Living Increases — Funds set aside for possible medical cost increases — Council Contingency funds pill ilillI111111111117 11 1111111111 • Funds other than the General Fund — Payments for Retiree Medical costs — Debt Service payments • Legal and other professional services that support debt service activities — Continuing disclosure — Fiscal agent fees 6/1/2016 11 12 G 06106116 CC A EN A PAGE 73 • Primary reasons for transfers of cash between funds — Debt Service funding — Capital Project funding • Example #1 — HUD funds are transferred from the CDBG Fund to the City's Debt Service Fund to pay principal and interest on Section 108 loans Transfers In / Out . i • Example #2 — Funds are transferred from the Hotel Tax Fund to the Capital Outlay Fund to fund various capital improvement projects • This year is primarily road resurfacing • Example #3 — Funds are transferred from the primary Transportation Development Fund (TDF) to a sub - TDF fund to segment TRIP project costs from non - TRIP project costs 13 14 6/1/2016 7 06106116 CC A EN A PAGE 7 Transfers In / Out - • •' • Example #4 — Funds are transferred from the Sewer Connection Fund to the Sewer Plant #3 Fund to partially cover debt service costs associated with plant expansion ® Example #5 — Funds are transferred from Successor Agency operating funds to Successor Agency Debt Service Funds to properly account for and pay debt service costs of the Agency is 16 6/1/2016 91 06106116 CC AGENDA PAGE 75 W-WOMUM97 • What is Fund Balance — Fund Balance is the Net Financial Position of a Governmental Fund — Enterprise Fund Balances are called Retained Earnings • We measure Net Current Assets for budgetary purposes • How is Fund Balance (net current assets) calculated: — Current Assets minus Current Liabilities • Current Assets — Cash & investments — Current Receivables - expected within 60 -90 days • Current Liabilities — Accounts payable — Monies held intrust — Deferred revenue (cash received but not yet earned) • i . • •, • What Causes Fund Balance to go up or down: — Variance of revenues to expenses during the year — Transfers In or Out of the fund during the year • Example #1 — The Wastewater Fund collects operating revenue of $34 million and they have operating expenses of $33 million • Fund balance goes up by $1 million v 18 6/1/2016 • E 06106116 CC A EN A PAGE 76 — The Refuse Fund collects operating revenues of $42 million. They have operating expenses of $43 million and they transfer out $1 million of cash to the Equipment fund to buy 3 new garbage trucks • Fund Balance goes down by $2 million — $1 million from the operating loss — $1 million from the transfer out • Make up of General Fund Balance — Fund Balance @ June 30, 2015 = $40,780,089 • Cash Basis Reserve = $ 12,802,179 • Designated for new budget year = $ 19,650,000 • Reserve for sick /vacation payouts = $ 6,661,248 • Reserve for Encumbrances = $ 1,282,675 • Undesignated remainder = $ 383,987 • Average General Fund Balance (last 8 years) • = $ 51,062,000 • Estimated General Fund Balance June 30, 2016 • = $ 33,000,000 19 20 6/1/2016 10 06106116 CC A EN A PAGE 77 - Encumbrance Carryovers — Remaining balances of open Purchase Orders are carried forward into the new budget year for remaining contractual amounts each June 30 ® Manager Carryovers — City Manager approves a carryforward of funds budgeted for grant related costs and /or capital projects that have previously been approved by the City Council in the current or prior fiscal year • • Example #1 — City has issued a purchase order for the purchase of a fire truck. The order was placed in May 2016 but the truck will not be delivered until April 2017. • The budgeted funds for the purchase are carried forward into the new fiscal year to pay upon delivery. Example #2 — City issued a construction contract to reconstruct a section of road. A purchase order was issued to track progress payments on the construction. Completion of the project is not expected until next fiscal year. • The remaining funds budgeted for the project are carried forward into the new fiscal year to pay upon completion. 21 zz 6/1/2016 11 06106116 CC A EN A PAGE 78 • Example #1 — The Police department received a Federal Grant to pay for community policing activities. The Grant was awarded in FY 15 -16, but the grant period runs into the next fiscal year. • The Managers office authorizes the remaining grant funds budgeted to be carried forward into the new fiscal year. 23 Manager Carryovers •: ,; — A capital project is budgeted in FY 15 -16, some preliminary design work has been done, but construction has not been awarded. • The Managers office authorizes the funds budgeted for construction of the project to be carried forward into the new fiscal year. 24 6/1/2016 12 06106116 CC A EN A PAGE 79