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Home My WebLink AboutAgenda Packet - CC - 2014.05.14DDDD The City of Burlingame City Hall – 501 Primrose Road Burlingame, California 94010-3997 City Council May Budget Study Session Proposed FY 2014-15 Budget & Capital Program Wednesday, May 14, 2014 6:00 p.m. Burlingame City Hall, Council Chambers I. Opening Comments – Lisa Goldman, City Manager II. Overview of the Proposed FY 2014-2015 Budget – Carol Augustine, Finance Director & Treasurer III. Update on Capital Improvement Projects – Syed Murtuza, Public Works Director IV. Public Comments V. Adjournment NEXT CITY COUNCIL REGULAR MEETING – MONDAY, MAY 19, 2014 City of Burlingame Proposed Budget for FY 2014-15 May 14, 2014 1 Budget Highlights for 2014-15 •Aligned with Council goals •Confirms long-term focus: identify and fund accrued liabilities •Includes full annual funding of OPEB Trust Fund •No draw on General Fund reserves; but significant unfunded infrastructure needs remain 2 General Fund Challenges •Sustained funding of retiree medical trust fund needed – both accrued liability and normal costs •Anticipated increases in CalPERS rates •Funding of infrastructure maintenance to avoid deferred repairs/liabilities •Unfunded needs/capital projects persist 3 2014-15 Proposed Budget •Assumes minimal staff (FTE) increases •Relies on prior year labor concessions – minimal wage increases, higher employee contributions toward benefits •Assumes historically low investment returns continue •Anticipates funding to reduce deferred maintenance of City infrastructure 4 2014-15 Proposed Budget (cont.) •General Fund revenues up 3.7% •General Fund expenditures up 12.7% • Deviation from 5-year forecast –Revenues in proposed budget < 1% higher –Expenditures and Net transfers < 1% higher •Total General Fund balance to increase less than $300,000 5 General Fund Revenues 6 CITY OF BURLINGAME, CA SUMMARY OF GENERAL FUND REVENUES FY12-13 Actuals FY13-14 Budget FY14-15 Projection $ Change % Change Property Tax $15,384,141 $15,275,203 $15,250,000 (25,203)-0.2% Sales and Use Tax 9,198,871 9,630,000 10,460,000 830,000 8.6% Transient Occupancy Tax 18,244,310 20,100,000 21,100,000 1,000,000 5.0% Other Taxes Franchise Tax 1,572,005 1,547,000 1,556,400 9,400 0.6% Business Licenses 952,804 991,000 995,000 4,000 0.4% State HOPTR 65,337 64,000 66,000 2,000 3.1% Real Property Transfer Tax 379,542 375,000 375,000 0 0.0% Licenses & Permits 101,753 110,000 86,000 (24,000)-21.8% Fines, Forfeitures and Penalties 860,476 692,000 780,000 88,000 12.7% Use of Money & Property 199,186 191,000 191,000 0 0.0% Charges for Services 3,680,054 3,991,911 4,087,021 95,110 2.4% Other Revenue 110,196 38,500 30,000 (8,500)-22.1% State Subventions 404,875 89,012 100,000 10,988 12.3% Interest Income 133,386 200,000 200,000 0 0.0% Total, General Fund Revenue $51,286,936 $53,294,626 $55,276,421 $1,981,795 3.7% FY14-15 Transient Occupancy Taxes (TOT) •Average Daily Room Rates (ADR) rising –Up 14.2% compared to 2013 •Occupancy rates holding steady at 84.6% •2013-14 TOT projected revenues up 10.2% since prior year •Growth of 5.0% assumed for 2014-15 •Provides $4.45 million transfer for capital projects 7 Transient Occupancy Taxes (TOT) 8 Property Taxes •Growth in secured value for 2014-15 assessments = 4.7% 9 Property Taxes - ERAF •ERAF withheld from the City’s property 2013-14 tax allocation approx. $2 million •The City’s “Excess ERAF” distribution amounted to $1.4 million •Legislative changes will increase the amount of ERAF used to fund the State’s obligation to schools in future fiscal years 10 Sales Taxes •Taxable sales for all of California in the final quarter of 2013 were up 3.4% compared to the same period in 2012 •Up 5.3 % in San Mateo County •Up 10.8% in Burlingame •Largely the result of solid sales –Continued strong auto sales, 18.7% –Casual Dining 15.2%, Fine Dining 3.8%, Hotel Restaurants 20.8% 11 Sales Taxes 12 Sales Taxes 13 Sales Taxes 14 General Fund Expenditures •Personnel costs up 1.5% –Only OPEB normal costs included –Proposed Increase in FTE = 1.71 –Costs of employee benefits •CalPERS (pension) rates •Health care premiums •OPEB accrued liability ($2.3 million) •Increase in funding infrastructure maintenance 15 Appropriations by Type 16 CITY OF BURLINGAME, CA SUMMARY OF GENERAL FUND EXPENDITURES BY TYPE Description FY12-13 Actuals FY13-14 Budget FY14-15 Proposed $ Change % Change Personnel Costs 21,002,250$ 23,656,584$ 24,010,275$ 353,691$ 1.5% Non-Personnel Costs 13,569,746 14,672,784 19,535,995 4,863,211 33.1% Internal Services 3,015,316 3,690,256 3,858,220 167,964 4.6% Capital Outlay 26,031 119,814 90,000 (29,814)-24.9% Total Expenditures 37,613,343$ 42,139,438$ 47,494,490$ 5,355,052$ 12.7% Appropriations by Program 17 CITY OF BURLINGAME, CA SUMMARY OF GENERAL FUND EXPENDITURES Description FY12-13 Actuals FY13-14 Budget FY14-15 Projection $ Change % Change General Gov't (Admin Svcs)5,636,245$ 6,538,214$ 4,757,758$ (1,780,456)$ -27.2% Public Safety Central County Fire + Disaster Preparedness8,999,505 9,613,650 10,516,149 902,499 9.4% Police & Dispatch 9,830,199 10,558,444 12,888,096 2,329,652 22.1% Public Works 3,084,543 3,923,636 5,442,598 1,518,962 38.7% Community Development - Planning 854,231 1,148,164 1,556,581 408,417 35.6% Leisure & Cultural Services Aquatics Center 374,977 336,117 441,046 104,929 31.2% Library 3,771,547 3,965,900 4,670,260 704,360 17.8% Parks & Recreation 5,062,096 6,055,313 7,222,002 1,166,689 19.3% Total Expenditures 37,613,343$ 42,139,438$ 47,494,490$ 5,355,052$ 12.7% Authorized Full-Time Equivalents 18 Combined Staffing Additions 19 CITY OF BURLINGAME, CA NEW POSITIONS BY DEPARTMENT Full Time Equivalent Library Permanent Administrative Secretary 0.02 Library Permanent Custodian 0.37 Library Permanent Graphic Artist 0.12 Library Permanent Library Assistant II (Council action - August 2013)0.25 Streets & Storm Drain Permanent Environmental Regulatory Compliance Coordinator 0.20 Water Permanent Environmental Regulatory Compliance Coordinator 0.40 Sewer Permanent Environmental Regulatory Compliance Coordinator 0.40 City Attorney Permanent Code Compliance Officer 1.00 Community Development Temporary Senior Planner - Project Management 0.50 Community Development Temporary Senior Planner - Code Enforcement 0.50 Community Development Temporary Sustainability Coordinator 0.50 TOTAL NEW POSITIONS 4.26 General Fund Balance 20 CITY OF BURLINGAME, CA CHANGES TO GENERAL FUND BALANCE FY13-14 Revised Budget FY14-15 Proposed Budget Beginning of Year Balance (Budget/Audit)19,729,633$ 18,324,268$ Projected Revenues & Expenditures Projected revenues 53,294,626 55,276,421 Projected departmental expenditures (42,139,438)(47,494,490) Subtotal, Revenues Net of Expenditures 11,155,188 7,781,931 General Fund Long-Term Debt (5,599,051)(6,283,924) Transfers In (Out) of General Fund (6,961,502)(1,212,741) Projected General Fund Balance, net of transfers 18,324,268$ 18,609,534$ Capital Improvement Program 21 Debt Service 22 CITY OF BURLINGAME, CA GENERAL FUND DEBT SERVICE OBLIGATIONS Description Maturity FY13-14 Revised Budget FY14-15 Proposed Budget $ Change from Prior Year % Change from Prior Year 2004 Library Lease Refunding Bonds FY2016 748,220$ 748,875 655 0.1% 2006 Pension Obligation Bonds FY2036 3,398,127 3,501,345 103,218 3.0% 2010 Corp Yard Lease Refunding Bonds FY2021 1,148,375 1,163,775 15,400 1.3% 2011 Master Equipment Lease Purchase FY2018 240,646 240,646 0 0.0% 2011 CEC LED Streetlight Loan FY2021 54,595 54,595 0 0.0% 2012 Lease Revenue Bond*FY2042 0 549,888 549,888 - Debt Administration Costs 9,088 24,800 15,712 - Subtotal, Principal and Interest $5,599,051 $6,283,924 $684,873 12.2% Contributions from Other Funds ($1,607,459)($2,205,158)(597,699)37.2% Net General Fund Debt Service $3,991,592 $4,078,766 $87,174 2.2% *100% reimbursed by the Special Assessment District and Parking Enterprise Other Funds 23 Unfunded Needs - Status •Current Needs –General Plan Update –Parking Lot Resurfacing –Unfunded Retiree Medical Liability •Future Needs –Near-Term •Structured Parking Downtown •Community Center 24 Next Steps 25 Next Steps •Clarifying information / response to Council questions •June 2nd Public Hearing –Proposed Budget Presented –Budget adoption –Gann Appropriation Limit approved 26 FY 2014-15 Capital Improvement Program City Council Budget Study Session May 14, 2014 Overview General Funds Projects Gas Tax, Measure A and Federal Grant Funded Projects Water & Sewer System Enterprise Funds Projects Storm Drainage Projects Council Feedback & Direction Proposed FY 2014-15 General Funds CIP Projects Recommendations (in thousands) Sidewalk Program (residential and City owned) $600 ADA Curb Ramps $100 Parks and Recreation $990 Building Facilities $230 Traffic Safety Improvements $370 Main Library Millennium Project $850 Information Technology (Servers Upgrade) $50 Police Dept. antenna $140 Downtown parking lot repairs $150 EV Charging Stations $100 Total: $3,580 Gas Tax & Measure A Projects City maintains 84 miles of streets valued at $80 million Estimated backlog is $20 million Estimated funding available for FY2014-15: The following projects are recommended: Gas Tax Funds $740K Measure A Funds $600K Measure M Funds $70K Grant Funds $2,000K Total $3,410K $1,110k Annual Street Resurfacing Program –Broadway, Burlingame Ave, Capuchino Ave, Cumberland Rd, Cypress Ave, Grove Ave, Hunt Dr, Laurel Ave, Lexington Way, Linden Ave, Paloma Ave, Quesada Way, Rio Ct, Rivera Dr, Rose Ct, and Toledo Ave. $100k Citywide street curb and gutter replacement $1,200k California Drive Roundabout Project $1,000k Broadway Grade Separation PSR California Drive Roundabout Project – Measure A Grant California Drive Roundabout Project Concept Drawing Location Map of FY 2014-15 Street Resurfacing Program FY 2014-15 Street Resurfacing California Drive Roundabout Water System FY 2014-15 Water System Capital Improvement Program Projects Estimated Costs (in thousands) Adeline Dr. & Peninsula Ave. Water Main Replacement $1,200k Burlingame Ave. & Broadway (west) Water Main Replacement $600k US 101/Broadway – Airport Blvd. Water Main Replacement $200k Citywide Water Meter Replacement (Phase 7) $300k SCADA & Remote Terminal Unit at SF Water Turnouts $100k Studies $100k Total: $2,500k FY 2014-15 Water System Capital Improvement Program Map Adeline Dr. & Peninsula Ave. Water Main Replacement Burlingame Ave. & Broadway (West) Water Main Replacement US 101/Broadway – Airport Blvd. Water Main Replacement SCADA & RTU’s for turnouts Water Meter Replacements Sewer System FY 2014-15 Sanitary Sewer System Capital Improvement Projects Projects Estimated Costs (in thousands) 2014 Sanchez Area Sewer Rehabilitation Phase 3 $250k 2015 Sanchez Area Sewer Rehabilitation Phase 4 $2,350k Waste Water Treatment Plant & NBSU Outfall Facilities Rehabilitation $1,200k Burlingame - Hillsborough Joint Sewer Pipeline Project $400k Broadway & Rollins Interchange Sewer System Improvements $200k Misc. Sewer Repairs (manhole repairs, root foaming & Mitten Force Main) $150k Studies $150k Total: $4,700k FY 2014-15 Sanitary Sewer System Capital Improvement Projects Map Sanchez Bypass & Neighborhood Sewer Rehab Phase 3 Sanchez Bypass & Neighborhood Sewer Rehab Phase 4 Treatment Plant & NBSU Outfall Facilities Rehab. Hillsborough Joint Sewer Project Broadway & Rollins Interchange Sewer System Improvements Storm Drainage System FY 2014-15 Storm Drainage Capital Improvement Program Projects Estimated Costs (in thousands) Bridge & Culvert Facilities $200k Pump Station Improvements $200k Neighborhood Area Storm Drain Project #7 $700k Program Management FY 2014-15 $100k Total: $1,200k Funded by cost savings in last year’s CIP projects FY 2014-15 Storm Drainage Capital Improvement Program Map La Mesa Lane Project Site Adeline Ave. Project Site Paloma/Laguna Aves. Capuchino/Grove Aves. Project Sites Rose Ct. Project Site Paloma Ave. Project Site Myrtle Dr. Project Site Stanley Rd. Project Site Bridge & Culvert Facilities Pump Station Improvements Neighborhood Area Storm Drain Projects Cortez Ave. – Easton Creek Bridge Improvement Summit Drive Culvert Replacement Cowan Pump Station Improvement 1740 Rollins Pump Station Improvement Adrian Pump Station Improvement Summit Ave Culvert Replacement Summary of FY 2014-15 CIP Program Projects Estimated Costs (in millions) General Fund projects $3.58m Gas Tax/Measure A & Grant Fund projects $3.41m Water System Enterprise Fund projects $2.50m Sewer System Enterprise Fund projects $4.70m Storm Drain System projects $1.20m Total: $15.39m Council Feedback & Direction