Item 3.1 Visual slideshow presented by Staff at MeetingJune 18, 2019
•GENERAL FUND•Currently balanced•Revenue•Sales Tax revenue ↓•RPTTF revenue ↓•Expenditures•Pension costs ↑•Law Enforcement costs ↑•ISSUES ON THE HORIZON2019-20 Proposed Budget General Overview2
2019-20 ProposedOperating Budget –All Funds(in millions)Capital Outlay, $4.39 , 5%Operations and Maintenance, $55.61 , 60%Personnel, $32.15 , 35%3
POWAY
CatiAthia
2019-20 Proposed
Operating Budget — Staffing
*No new positions recommended*
Department
Legislative and Administrative
Finance
Human Resources and Risk Management
Community Services
Development Services
Public Works
Safety Services
TOTAL
FY 18-19 FTE
9."
20.50
6.00
50.39
26.50
82.36
57.00
FY 19-20 FTE*
9.00
20.50
6.00
24.10
26.50
78.96
57.00
252.23 222.06
*Beginning in FY 19-20, part-time temporary staffing is no longer reflected in the FTE count. Funding for these
positions is reflected as part-time salaries within each department/division.
4
2019-20 Proposed BudgetGeneral Fund Sources(in millions)$0.0$5.0$10.0$15.0$20.0$25.0Millions FY 2017-18 Actual FY 2018-19 Budget FY 2019 - 20 Proposed5
How are Poway dollars spent?*Includes Parks Maintenance division from Public WorksGeneral/Admin.7% $3.6 millionPublic Works7% $3.3 million…and 3% $1.8 million for Non‐Operating; Debt Service, Capital Projects, OtherLaw Enforcement28% $13.5 millionCommunity Services/ Parks* & Recreation18% $8.9 millionFire Suppression & Paramedics27% $12.9 millionDevelopment Services & Housing 10% $4.9 million6
•City’s Memoranda of Understanding with Poway Firefighters’ Association and Teamsters Local 911 are expiring June 30, 2019•Proposed budget includes the following:•Step increases for employees who are not currently at top step•Increases to CalPERS pension contributions per updated rates ‐ Non‐Safety/Miscellaneous Classic (24.6%)‐ Safety Tier 1 Classic (45.5%)•Increases to the City’s supplemental retirement benefit (PARS) per updated rates•Increases to employer’s portion of health care costs per updated rate assumptions2019-20 Proposed Budget Personnel Related7
•LEGISLATIVE AND ADMINISTRATIVE•Estimated savings associated with no election costs in the FY 19‐20 budget•Reflects 2.6% increase in contract for City Attorney services•FINANCE DEPARTMENT•Estimated savings of $50,980 associated with elimination of Banner Software Maintenance•New rental charges for the replacement of major software applications•HUMAN RESOURCES AND RISK MANAGEMENT•Expenses and revenues are consistent with last fiscal year’s budget2019-20 Proposed Budget Noteworthy Non-Personnel Items 8
•COMMUNITY SERVICES•Reduction of $15,000 to Annual Subsidy to Poway Onstage (PCPA)•Labor cost reduction due to retirement, turnover, and new hires•Animal control contract increase of $3,345•$91,436 increase in Gas and Electricity due to unrealized savings from the solar project•DEVELOPMENT SERVICES•$40,000 in Traffic Engineering division for a required Speed Survey (every 7 years)•$46,500 is the department’s contribution to the Enterprise Resource Planning Software Applications replacement fund•$12,000 for capital projects management and tracking software•$200,000 decrease in revenue to better reflect the current activity level2019-20 Proposed Budget Noteworthy Non-Personnel Items (continued) 9
2019-20 Proposed Budget Noteworthy Non-Personnel Items (continued) •PUBLIC WORKS•Request for new budget items: SeeClickFix, heavy duty tire changer, regulatory compliance training for a Stormwater employee, Water Information Management System (Water Fund)•SAFETY SERVICES•NextGen Regional Communication System (RCS) Radio Upgrade•Replacement of Self Contained Breathing Apparatus•LAW ENFORCEMENT•$13.49 million for 50 Law Enforcement and Administrative Support Personnel•Reflects 5.5% increase in contract•Reflects restoration of the detective position10
•WATER•Drought recovery surcharge ended December 2018•New 55 gallon per capita legislation – decreasing to 50 GPCD in 2030•New Water and Sewer Rate Study Underway – Workshops Planned for Fall 2019•SEWER•Rates do not currently support operations – drawing down on fund balance•Pure Water Program share of costs•New Water and Sewer Rate Study Underway – Workshops Planned for Fall 2019Water and Sewer Utilities11
Capital Facilities Maintenance Fund•Internal Service Fund •Facility Needs Assessment ‐ determination by staff that historical contribution was not sufficient •FY 17‐18 Staff recommendation to increase historical base contribution by 20% per year•FY 19‐20 Proposed contribution of $979,690 with $177,480 budgeted for Painting, General Maintenance, etc. ‐ primarily for PCPA (limited planned expenditures for FY 19‐20)•Even with 20% increases each year, Beginning Fund Balance is projected to drop by 50% by FY 21‐22 to $853,00012
General Fund Reserves45% of ExpendituresRisk-Based Reserves(in millions)FY 17-18 FY 18-19 FY 19-20Revenue Volatility$4.32 $4.65 $4.64Expenditure Volatility$2.16 $2.33 $2.32Extreme Events $12.97 $13.95 $13.91TOTAL$19.45 $20.93 $20.87*Refined definition of Operating Expenditures to exclude capital equipment replacement annual charges*13
General Fund Fiscal OutlookActuarial assumptions result in higher PERS ratesLabor agreements expiring June 30, 2019Continued increases in contract with San Diego County Sheriff’s DepartmentFlat RevenuesRefined definition of Operating Expenditures for Calculation of the 45% Reserve ContributionWith modest increases in expenditures, expenditures are likely to exceed revenues in FY 20‐21Community CenterEspola Road ProjectLMD WorkshopPCPA WorkshopSales Tax DisputeLos Penasquitos Lagoon Restoration Project14
General Fund Fiscal Forecast15
Purpose:The purpose of the Capital Improvement Program(CIP) is to plan and implement those CapitalImprovements that the City Council determines to bemost important for maintaining the City’s infrastructureand long-term quality of life for the community ofPoway.2019-20 Capital Improvement Program 16
StreetsDrainageGovernment BuildingsParks and Open SpaceSewerWater2019-20 Capital Improvement Program 17
StreetsActive Projects:Espola Road Safety ImprovementsPoway Road Turn Pocket ExtensionLED Street & Safety Lighting ConversionPavement Management Projects:FY 19-20 Street Maintenance $1,250,000FY 19-20 Street Overlay $692,800FY 19-20 Street Striping $300,000Total Funded through Department Operating Budgets: $2,242,800FY 19-20 Proposed Projects:Espola Road Bike Lanes (Construction) $547,900Neighborhood Sidewalks $220,900Traffic Signal Controller Upgrades $250,000Total FY 19-20 Funding: $1,018,80018
DrainageActive Projects:Rattlesnake Creek Integrity StudyFY 19-20 Proposed Projects:Annual Corrugated Metal Pipe Repair/Replace $300,000Sebago Avenue Channel Repair $150,000Annual Trash Capture Program $130,000Total FY 19-20 Funding: $580,00019
Government BuildingsActive Projects: • Mickey Cafagna Community Center• Photovoltaic Systems (Fire Station 3)• PCPA Fire Curtain/Smoke VentFY 19-20 Proposed Projects:•Public Facilities Renovation Project: $177,480Total FY 19-20 Funding $177,48020
Parks and Open SpaceActive Projects: • Valle Verde Park Playground Renovation• Blue Sky Amphitheater Shade StructureFY 19-20 Proposed Projects:•ADA Barrier Removal $83,362Total FY 19-20 Funding: $83,36221
Water• Active Projects: • Poway Dam Maintenance and Security• Buehler Reservoir Rehabilitation• 36” Steel Distribution Main Assessment• WTP Chemical Building and Tank Farm Upgrades • WTP Washwater Tank Upgrade• WTP Clearwell Distribution Flow Meters• Power to Blue Crystal Reservoir• Boulder Mountain Reservoirs 1 and 2 RehabilitationFY 19-20 Proposed Projects:•Annual Water Valve Replacement Project $150,000•Clearwell Upgrades (Construction) $2,164,000Total FY 19-20 Funding: $2,314,00022
SewerActive Projects: • Sewer Line Repair/Replace Pomerado/Stone Canyon• Martincoit Road Sewer Upsize• Butterfield Trail Sewer Upsize FY 19-20 Proposed Projects:•Annual Sewer Manhole Rehabilitation $150,000•Exposed Sewer East of Martincoit (Construction) $1,000,000Total FY 19-20 Funding: $1,150,000 23
FY 19-20 Total Project FundingStreets: $1,018,800Drainage: $580,000Government Buildings: $177,480Parks and Open Space: $83,362Water: $2,314,000Sewer: $1,150,000Total FY 19-20 CIP Funding $5,323,642Total Pavement Management $2,242,80024
June 18, 2019Budget Review Committee ReportCITY OF POWAYBRIAN PEPIN, CHAIRPETER DE HOFF, VICE CHAIRMIKE FIRENZEBERNIE GUZMANDAN MATHSON25