Item 29 - Visual Slideshow provided by Budget Review Committee at MeetingBudget Review Committee
CITY OF POWAY
CITY COUNCIL MEETING
JUNE 15, 2021
Budget Review Committee Charter
“The purpose of the Budget Review Committee (BRC) shall be to review
the annual Operating and Capital Improvement (CIP) Budget as
proposed by the City Manager and report its findings to the City Council.”
Four BRC meetings this Spring:
Wednesday, April 28, 2021
Wednesday, May 5, 2021
Wednesday, May 12, 2021
Wednesday, May 19, 2021
Committee Members
Brian Pepin, Chair
Bob McKeon, Vice Chair
Peter DeHoff
Danielle Vigneault
Nick Carruthers
City Staff
City Manager Chris Hazeltine
Assistant City Manager Wendy Kaserman
Director of Finance Aaron Beanan
Senior Administrative Assistant Jenny Paglinawan
Department Directors
Background
Last year, the City of Poway proposed a plan of
“retrenchment,” leaving vacancies unfilled and foregoing
almost $2 million in regularly scheduled asset maintenance.
The BRC supports the city returning to a normal state of
operation, including staffing and asset maintenance.
General Fund Overview
While the budget is balanced, it is important for the Mayor
and Council to understand that this is only because of $3
million in federal stimulus dollars in the coming fiscal year.
With those federal dollars, the City of Poway is able to
maintain a normal level of service for Poway residents;
without it, service levels would be reduced.
General Fund Overview
Revenue: General fund revenue is forecast to be $53 million in FY 2021-22,
which is an increase from an estimated $51 million received in the
previous FY 2020-21 fiscal year.
Expenditures: General fund expenditures are budgeted at just over $51
million, up from an estimated $47 million in the previous fiscal year during
retrenchment.
Fund Balance: Due to dramatic cutbacks in spending under retrenchment
in FY 2020-21, the City is expected to have an increase in fund balance,
from $8.6 million last year to an estimated $11.9 million at the end of the FY
2020-21 fiscal year in June.
Expenditures
Expenditures are budgeted to increase $4.1 million from the prior year’s projections.
This is largely due to bringing back items previously retrenched:
Capital asset management of $1.5 million
Reserve transfers of $700,000
Law enforcement contract increases of more than $500,000
Increase in retirement-related costs of $500,000 paid to the California Public Employees Retirement System (CalPERS)
Restoring the budget for unfunded positions at a cost of $350,000
Catching up on deferred capital projects of $500,000
Items of Note
Pension bill is ~$5.0 million; roughly the same as the entire Community
Services Department actuals
Revenue increases should be accomplished through increasing the size of
the property tax base rather than increasing the tax rate. The BRC is
opposed to tax increases.
DSD efficiencies: The BRC believes DSD can generate increased revenue
through efficiencies. We support the City’s adoption of EnerGov software.
PCPA: Council set a goal for city staff to reduce the overall subsidy of the
facility by 50% beginning in FY 2022-23; the BRC supports this.
Water Department is budgeted to have $16 million in additional revenue.
Items of Note
Keep an eye on overtime costs, especially at the Fire Department.
The city should consider capital improvement projects to reduce ongoing
operational expenses:
During the upcoming water improvement and reliability projects, the city
should explore if locally generated and controlled power sources, such as solar
and/or battery storage options, are cost effective at reducing or eliminating
this ongoing operational expense.
Get ahead of state mandates for electric vehicle fleets before other agencies.
Mitigation of unexpected financial risk
Budget readability
Primary Challenges
High personnel costs.
Slow revenue growth.
Unfunded state mandates and CalPERS pension costs.
Unfunded regional mandates such as the looming cost of the Los Penasquitos
Lagoon project.
Cost of upcoming water reliability projects.
Budget Review Committee
CITY OF POWAY
CITY COUNCIL MEETING
JUNE 15, 2021