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HomeMy WebLinkAbout8.2 - 1385 Fiscal Year 2017-18 Budget Update Page 1 of 11 STAFF REPORT CITY COUNCIL DATE: April 4, 2017 TO: Honorable Mayor and City Councilmembers FROM: Christopher L. Foss, City Manager SUBJECT: Study Session: Fiscal Year 2017-18 Budget Update Prepared by: Colleen Tribby, Director of Administrative Services EXECUTIVE SUMMARY: The City Council will review the Fiscal Year 2017 -18 Budget Update, focusing on the General Fund. This is the second year of the City's two-year budget, thus the report highlights changes from budget numbers presented to the City Council in June 2017. Changes to the Five-Year Capital Improvement Program are also noted herein, and an update on Staff's progress towards the City Council's fiscal sustainability initiative is included. There are no significant budget changes in other funds. STAFF RECOMMENDATION: Receive the report and provide direction to Staff related to the Budget Hearing scheduled for May 16, 2017. FINANCIAL IMPACT: The Budget Update results in an increase to revenues of $4,242,875 and an increase to expenditures of $1,821,342 in the General Fund, over the prior year projection. Total General Fund reserves are projected at $115,657,803, an increase of $6,375,288, over Fiscal Year 2016-17. DESCRIPTION: The City of Dublin utilizes a biennial budget process, in which a comprehensive budget document is prepared that establishes high-level priorities and specific departmental goals for a two-year period. The second year of the cycle is the “Update” year, in which projections are revised and significant changes highlighted, while the original document continues to serve as the guiding financial plan. In analyzing the Fiscal Year 2017-18 Preliminary Budget, referred to in this report as the “Budget Update,” Staff is comparing the updated numbers to the numbers provided in June 2016. As in prior years, this report focuses on the General Fund, as there are no major budgetary changes in other funds. This report discusses updates to the City’s Page 2 of 11 major revenue categories reflecting the most recent information, refines expenditure projections, and highlights changes to the Five-Year Capital Improvement Program. It also updates the City Council on the progress being made toward the goal of fiscal sustainability. High Level Summary The Budget Update (Attachment 1) projects an operating surplus in the General Fund (revenues less expenditures) of $8,815,917, which is $2,421,533 (37.9%) higher than the prior projection. Revenues increased $4,242,875 over the projection, due primarily to higher property tax and development-related revenue, but also to incorporating gains in transient occupancy tax and interest income that the City continued to experience into the current year. Expenditures increased $1,821,342 over prior projections: those changes are explained in the section below. Forecast 2017-18 Update 2017-18 $ Change % Change Revenue 79,538,966$ 83,781,841$ 4,242,875$ 5.3% Expenditures (73,144,582)$ (74,965,924)$ (1,821,342)$ 2.5% Operating Impact 6,394,384$ 8,815,917$ 2,421,533$ 37.9% The following is a summary of the net changes reflected in the Budget Update as compared to the Fiscal Year 2017-18 Forecast (+/- $200,000): Revenue Changes Property Tax - Increased $1,001,790 The current budget was adjusted upwards $9 05,876 in the first quarter to account for higher-than-anticipated growth in citywide assessed values (AV). That growth has been carried into Fiscal Year 2017-18, and added to a revised estimate of the restoration of AV previously reduced via Proposition 8. Development Revenues - Increased $2,101,116 The Building, Planning and Engineering Divisions have updated their projections of development-related revenues and expenditures in Fiscal Year 2017 -18. These are related to the pace of project activity; as a reminder, accelerated development in the short term corresponds to less revenue in the latter part of the 10-Year Forecast. Charges for Services - Increased $486,280 This increase is primarily due to higher revenues expected from aquatics programs offered at The Wave ($366,413), as well as revenues from family programs ($66,480). Minor increases have also been applied to sports program revenue and to various development-related fire service charges. Other Taxes (Transient Occupancy Tax, TOT) - Increased $400,000 This change reflects actual TOT receipts over the last two years. Page 3 of 11 Interest - Increased $410,120 After weathering the recession of 2009, the City has been slowly rebuilding investment income via its contract with Chandler Asset Management. Staff feels comfortable adjusting interest income up to $876,000 for Fiscal Year 2017 -18, which while conservative, is roughly double the income earned in Fiscal Year 2013 -14 ($422,980). While the growth is positive, given the new economic environment, Staff doe s not expect to return to the high earnings of Fiscal Year 2006 -07 ($2,620,610) in the foreseeable future. Expenditure Changes Salaries and Wages - Increased $443,551 The Budget Update includes a new Plans Examiner position ($178,074 in the Community Development Department), as well as an increase to the Finance Technician position from 0.75 to 1.0 Full Time Equivalent (minor net increase, as the position was filled at the entry-level grade). In addition, vacant positions are budgeted at the top step in the range, and as there have been a number of vacancies in the current year, the budget reflects an increase. Benefits - Increased $296,565 The increased budget for employee benefits is the net result of several changes from the Fiscal Year 2017-18 Forecast. The increases are related to the new and shifted positions described above, but also to a recommended increase of $485,000 to pen sion funding, in response to CALPERS’ new discount rate (discussed in the Short Term Priorities section below). Decreases can be primarily attributed to the City paying off the bulk of the PERS Side Fund obligation (which was roughly $385,000 annually) in the current fiscal year, thus lowering expenditures in Fiscal Year 2017 -18. Furthermore, the budget for group insurance is lower than was anticipated last year, as insurance rates stayed relatively flat. Services and Supplies - Increased $248,821 The Budget Update includes minor increases in operating supplies and training across departments over prior projections. Larger variances are attributed to recreational operating supplies (increased $33,821), public liability insurance costs in the Police Services contract (increased $132,690), an additional budget to cover City insurance claims (increased $20,000), and increases in vehicle maintenance and repair for Police vehicles as well as City-operated vehicles (increased $50,000 combined). Contracted Services – Increased $721,120 The City’s three largest single service contracts are for Police Services (40% of total contracted services), Fire Services (27%), and Maintenance Services (11%). These have been kept relatively flat in the Budget Update. It is important to note that while the current proposal for Police Services from the Alameda County Sheriff’s Office includes an increase of $168,674 for personnel costs and a risk management contingency, Staff has not yet concluded budget negotiations. In fact, in response to specific feedback from the community throughout the last year, and moving towards serving a growing population, the City Manager is currently scrutinizing the existing City position allocation plan, including current and expected vacancies, to find the means to expand the Police Page 4 of 11 Services but contain the overall budget. Staff expects to bring the final Police Ser vices proposal to the City Council at the Budget Hearing in May. The largest non-safety contracted service change from prior projection is the increase by $416,158 in the Community Development Department. This is related to contracted development services and is offset by revenues. Contingency – Decreased $250,004 The Fiscal Year 2017-18 Projection included a $500,000 contingency for large -scale, unanticipated maintenance and repairs. Examples of this in the current year were the repair of the City’s fountain ($130,000) and the repair of the bridge at the Shannon Center ($40,000). The Budget Update reduces this contingency to $250,000, as Staff is evaluating the impact of creating a reserve for this purpose, rather than including it as an annual budget item. Reserves After transfers out for capital projects, the Budget Update projects a $6,375,288 increase to General Fund reserves, as shown in the table below. The General Fund Unassigned Cash Flow Reserve is projected at $48,966,676, before any reserve designations made by the City Council. The General Fund Reserves Summary (Attachment 2) provides a list of all reserve balances. No specific reserve changes are being proposed in the current Budget Update; however, decisions made by the City Council relative to issues discussed in the Short-Term Priorities section below would have impacts on reserves. Actual 2015-16 Amended 2016-17 Updated 2017-18 Revenue 82,916,416$ 82,047,701$ 83,781,841$ Expenditures (69,048,878)$ (73,149,276)$ (74,965,924)$ Transfers Out (2,409,006)$ (8,780,937)$ (2,440,629)$ Year End Reserves 109,165,026$ 109,282,515$ 115,657,803$ Change to Reserves from Prior Year 117,489$ 6,375,288$ Capital Improvement Program (CIP) The proposed Five-Year CIP project list is provided as Attachment 3. No new projects have been included with the Budget Update; however, projects added or amended during the current fiscal year have been reflected in the new document. The following is a summary of the major changes: General Improvements  Civic Center Police Wing Renovation (PROJECT REMOVED): This project, for the design and renovation of the Police Services wing of Civic Center, had a remaining balance of approximately $2.0 million at the end of Fiscal Year 2015 - 16. In Fiscal Year 2016-17 this project was replaced by the Public Safety Page 5 of 11 Complex project. The remaining budget has been maintained in a General Fund reserve for future reallocation.  IT Infrastructure Improvements (NEW IN 16-17): This project was added to the CIP in Fiscal Year 2016-17, with an approved budget of $650,000 from the IT Fund.  Cultural Arts Center: This project was moved from the Future Years category in the CIP into the current five-year time frame. It provides for the design and renovation of 13,200 square feet on the first floor of Civic Center currently occupied by Police Services into a Cultural Arts Center. This project would be funded by the Public Facility Fees Fund and the IT Fund, beginning in Fiscal Year 2018-19. Parks  Sean Diamond Park: The budget for this existing project was increased $659,714 in March 2017 to award the construction contract, and planned construction was moved up one year. The CIP now reflects the total updated budget of $2,782,875, funded by the Public Facility Fees Fund, and the amended timeline. Streets  Amador Valley Blvd Improvements – Wildwood Rd: This project was added to the CIP in Fiscal Year 2016-17 with a budget of $170,680, funded by Measure B Funds. With improvements substantially complete at the Wildwood intersection, the updated CIP proposes an additional $91,030 in Measure B funding for similar improvements to be made at the Stagecoach intersection.  Citywide Signal Communications Upgrades: The existing CIP includes $40,840 annually, funded primarily by Vehicle Registration Fee funds, to provide for the continued upgrades of the traffic signal communications system. The updated CIP increases annual funding by $49,280 to provide for the ongoing monitoring of coordinated corridors, the maintenance of newly installed bicycle detection equipment and cameras, and consulting services to assist with the maintenance of and upgrades to the system. The increase would be funded with Measure B funds and would bring the total project budget to $90,120 per year.  Dublin Blvd Extension: The updated CIP reflects an additional $250,000 in this project, approved by the City Council in November 2016, to complete an Environmental Impact Review for the project. Preliminary design of the project started in Fiscal Year 2015-2016. The project is not fully funded; however, City has submitted a project application for inclusion to the Alameda Countywide Transportation Plan (ACTP). Staff anticipates the project will be added to the ACTP capital program for future discretionary Measure BB funding. The total cost of this project is approximately $79.6 million and is anticipated to be divided among the City of Dublin and the City of Livermore on the basis of street length in each jurisdiction. . Page 6 of 11  Annual Street Resurfacing: This project comprising citywide slurry seal and overlay projects is now being reflected as an annual project, rather than as a year-by-year add to the CIP. The annual cost is essentially unchanged. The General Fund contribution to capital projects remains largely unchanged from the prior budget forecast, with $1,475,072 for the Heritage Cemetery renovation design and construction, and $108,000 for citywide bicycle and pedestrian improvements. Short-Term Priorities and Factors The Fiscal Years 2016-17 and 2017-18 Adopted Budget document included a discussion of short-term goals and considerations that impact the City’s ability to continue to provide service in the future. These are listed below, with a description of Staff’s progress in these areas, and recommendations for further consideration in the second year of the current budget cycle. 1. Use the anticipated surplus in the current year and in the Adopted Budget cycle to prepare for a potential forecast deficit The City has experienced General Fund surpluses over the last several years due to increases in property tax, sales tax, and development revenues. However, as shown in the 10-Year Forecast presented to the City Council in December 2016 , increases in ongoing operational expenditures will eventually outpace revenue growth as development declines and City services expand. With this in mind, departmental budget proposals continued to be scrutinized during the Budget Update preparation for their sustainability over time. In addition, Staff is evaluating the use of operating surpluses to pay down current and future obligations and to shore up reserves for future liabilities. The following are considerations for the upcoming budget discussion: Recommendations for Fiscal Year 2017-18: A. Reserve for Chevron Energy Lease Payoff In September 2012, the City entered into a capital leas e for solar energy improvements totaling $6,755,824. At an interest rate of 2.56% and with a 14 -year maturity, the City’s interest payments will total $1,346,035 at the final payment in Fiscal Year 2025-26. The City has the option to pay off the lease bala nce as early as Fiscal Year 2018-19, at an outstanding principal balance of $4,064,515, plus a prepayment penalty of $81,290. IF the City paid off the lease balance (and prepayment penalty) in Fiscal Year 2018 -19, the result would be a savings of $410,747 in interest payments (including the penalty), and would restore approximately $565,000 per year in the General Fund cash flow for the term of the lease. Staff proposes to set up a reserve in the amount of $5,238,622 , at the end of the current fiscal year, to be used to make the debt service payments for Fiscal Years 2017-18 and 2018-19, and with the intention of paying off the balance thereafter, as shown below: Page 7 of 11 Initial Reserve 5,238,622$ 2017-18 Payment (581,881)$ 2018-19 Payment (510,936)$ Payoff Principal (4,064,515)$ Prepayment Penalty (81,290)$ Balance -$ B. Consider Public Agency Retirement Services’ (PARS) Pension Rate Stabilization Plan (Section 115 Trust) to supplement the City’s CalPERS Trust The City of Dublin’s pension trust (held by the California Public Employees Retirement System, CalPERS) is funded by contributions from both employees and the City, and by investment earnings on those f unds. One of the most critical and volatile factors used in setting agency contribution rates is the rate that CalPERS expects to earn over the long term on its investments (the discount rate) which, until recently, had been set for a number of years at 7.5%. CalPERS’ actual average rate of return has been significantly lower, at 5.08% over the last ten years, and 6.88% over the last three years. In response, and in recognition of a long-term low interest environment, the CalPERS Board voted in December 2016 to lower the discount rate to 7.0% over three years. This reduction will bring CalPERS earnings expectation to its lowest in modern history, and will result in dramatically higher employer contribution rates. For the City of Dublin, the change will increase pension payments by an estimated $525,000 annually, by Fiscal Year 2022-23. Because Dublin has historically budgeted conservatively for pension and retiree health increases, the change will have minimal effect to the budget in the short term. Staff had already included $515,000 in the Fiscal Year 2017-18 Budget Forecast, and annually adjusted in the 10 -Year Forecast, for additional pension funding. However, the CalPERS decision is a clear indicator of the new economic environment and raises questions as to whether the discount rate will ultimately be lowered again, or another decision taken that negatively impacts contribution rates. A recent decision by the IRS allows for public agencies to create a separate trust to pre-fund its PERS unfunded liability. PARS, the City’s current provider of retirement benefits for part-time employees, now offers such an opportunity through its Pension Rate Stabilization Plan (PRSP). Essentially, the plan provides agencies with an alternative to sending funds to CalPERS that will provide for greater local control over assets, and portfolio management by a registered investment advisor selected and monitored by the City, with contributions transferred to CalPERS at the discretion of the agency to offset fluctuations in the required annual contributions. Furthermore, PARS is posting higher returns than CalPERS. Utilizing the PRSP would not change the City’s obligation to make contributions to PERS, nor would it remove or replace PERS as the City’s retirement benefit provider. It would simply act as another investment tool to supplement annual contributions, should the City experience budgetary constraints. There is no cost Page 8 of 11 associated with setting up the PRSP fund, and funding timing and levels would be controlled by the City. Should the City Council wish to pursue the PRSP, Staff would bring back this item at a future meeting for consideration before the end of the current Fiscal Year, so that any related funding decisions can be incorporated into the reserves designation discussion in June 2017. 2. Continue work on the action items that support the fiscal sustainability initiative In March 2015 the City Council identified long-term fiscal sustainability as the City’s key strategic initiative and directed Staff to ensure that fiscal sustainability becomes a major factor in future decisions, including future budget proposals. Staff presented a list of specific focus areas within this initiative, and began work on many of them in Fiscal Year 2015-16. In addition, in November 2016 the City Council approved the formation of the City’s first Fiscal Sustainability Task Force with the goals of: a) Educating the public and fostering discussion on the City of Dublin's current and projected financial status; and b) Producing an advisory document with future budget options for the City Council to consider. In December 2016, the City Council appointed seven members and four alternates to the Task Force, and as of the production of this report, the group has held three meetings and is on track to present recommendations to the City Council in January 2018. Below is the list of the action items presented to the City Council in March 2015, with a status update and noted goals for the Fiscal Year 2017-18 Budget period. Focus Areas Development of a Preventative Maintenance Plan: Staff is on track to complete this plan within the current two-year budget cycle. Reinvestment in Existing Facilities/Infrastructure: Work on the Shannon Center Parking Lot Resurfacing Project will begin in August 2017 and will be completed in Fiscal Year 2017-18. Bids for the master plan of the Dublin Sports Grounds renovation project were released in March 2017. Evaluate Cost Recovery and Pricing Policy for Services/Maintenance : The City has entered into contract with a consultant for a comprehensive Cost Allocation Plan and User Fee Study. The project is expected to be completed in October 2017, with new fees going into effect in 2018. Updates to the Parks and Community Services Pricing Policy were included with the Master Fee Schedule approved by the City Council in June 2016. Develop Performance Measures/Metrics: This effort is to understand the “return on investment” (ROI) of all City services and to use that data more effectively to inform policy decisions. Staff is currently evaluating performance measurement and data tools in the marketplace with the goal of having these tools in place during the current budget cycle. Reevaluate Internal Service Funds and Fund Balance Priorities : In June 2016 the City Council approved the creation of an Information Technology Fund with an initial General Fund contribution of $2 million towards IT Master Plan Page 9 of 11 initiatives. Finance Staff are now reviewing citywide needs related to equipment and building replacement. Assess the City’s Unfunded Liabilities (Retirement Benefits): In Fiscal Year 2015-16, the City Council took steps to control spending on retiree medical costs, approved changes to increase employee contributions to retirement and contributed a lump sum payment of $250,000 towards pension and retiree health. In Fiscal Year 2016-17, the City Council approved additional contributions towards the unfunded liabilities: $8.2 million towards Fire retiree health, and $1.0 million towards City pension obligations. Because of CalPERS decision to lower the discount rate, the Fiscal Year 2017-18 Preliminary Budget includes a total of $1.0 million to shore up reserves against future rates increases. Discuss Strategies for New/Increased Revenue Streams: In Fiscal Year 2016-17 the City reviewed the feasibility of brining a sales tax measure to voters in the November 2016 election, to enable residents to determine the level of service they wish to maintain in the community. Staff will continue to monitor this o ption for future elections. In addition, Staff anticipates that the Fiscal Sustainability Task Force will evaluate increases to revenues in focus areas such as charges for services, parks and recreation fees, and permitting charges. 3. Continue current high standard of maintenance in City parks and facilities The Fiscal Year 2017-18 Budget Update contains cost estimates set last year by the City’s maintenance services provider, MCE, which incorporate new parks and facilities, and includes adjustments to our service levels of maintenance citywide. The updated numbers have not changed. Additionally, Staff is currently reviewing the first phase of a Preventative Maintenance Plan to understand the true cost of ownership of our assets. The Fiscal Year 2016 -17 Budget set aside $300,000 in the first year and $750,000 in the second year to cover any impacts the study results may have. These costs ramp up in the forecast to $1,000,000 annually by Fiscal Year 2018 -19. There are no planned changes to this reflected in the Budget Update. 4. Initiate and/or complete key capital improvement projects The Adopted 2016-2021 CIP Budget includes several large-scale projects that will be significant to the community, and will impact the City’s ongoing maintenance and replacement budgets. These are projects expand the City’s capacity to serve a growing population, and it is important for the City to utilize a surplus budget position to make these kinds of long-term investments in the community. Below is a brief description and status of these projects. Any changes proposed with the Preliminary Budget are noted. The Wave (Emerald Glen Recreation and Aquatics Complex) Project budget: $43.8 million, funded by Public Facility Fees and $3 million from the General Fund. Page 10 of 11 Status: On track to open in the spring of 2017. Current estimates set the General Fund operating subsidy of this facility at $953,330, which is in line with prior estimates. Public Safety Complex Project budget: $15 million, funded by a Community Benefit Payme nt, with a portion potentially eligible for coverage by Public Facility Fees. Status: Project bids are currently being reviewed by Staff. Fallon Sports Park Phase II Project budget: $17.8 million, funded by $15.8 million from Public Facility Fees and a $2.0 million General Fund contribution. Status: Construction is expected to be completed in Fiscal Year 2017 -18. Dublin Crossing Community Park Project Budget: $21.6 million, funded by the developer ($12.8 m illion) and Public Facility Fees ($6.3 million). The remaining $2.5 million has no funding source currently identified. Status: The City approved the conceptual plan for the project in the current fiscal year. Phases I and II are currently planned to be completed within the Five -Year CIP timeframe, with construction of Phase III planned for future years. Jordan Ranch Neighborhood Park (4.9 acres) Project Budget: $2.3 million, funded Public Facility Fees ($0.7 million) and built by the Developer ($1.6 million). The land for the park was dedicated and improved by the developer in exchange for credit against Public Facility Fees, up to $365,000. Status: Under construction, with expected delivery date of spring 2017. Sean Diamond Park Project Budget: $2.8 million, as discussed in the CIP section above; funded by Public Facility Fees Funds. Status: Scheduled to be completed in Fiscal Year 2017 -18. Dougherty Road Widening and Improvements Project Project budget: $22.9 million, funded with Measure B and BB grant funds and various Traffic Impact Fees. Status: Construction is underway, and expected to be completed in the fall of 2017. Adverse weather conditions may delay the completion date. Dublin Boulevard Improvements Project Project budget: $6.9 million, funded by $3 million in Measur e BB grant funds, other Mitigation and Traffic Impact Fee funds, and Rule 20A monies. Status: Phase one of the project, the undergrounding of the utilities, is anticipated to start in spring 2017. Next Steps The Fiscal Year 2017-18 Budget Update will be presented for adoption at the Budget Hearing scheduled for the May 16, 2017 City Council meeting . Staff will update the 10- Page 11 of 11 Year Forecast with information through March, and present the results as part of the budget adoption. Reserve designations are made at a separate meeting before the close of the current Fiscal Year. Given the information presented in this report, Staff would like direction on the following: 1. Is there any other information or detail about the Budget Update that the City Council would like presented during the Budget Hearing? 2. Are there items the City Council would like removed from and/or included in the operating budget and/or CIP budget numbers for consideration during the Budget Hearing? 3. Does the City Council wish to pursue the reserve for the Chevron energy lease, with the intention of paying off the debt early? 4. Does the City Council wish to discuss the PARS Pension Rate Stabilization Plan at a future meeting? NOTICING REQUIREMENTS/PUBLIC OUTREACH: None. ATTACHMENTS: 1. General Fund Summary, FY 2017-18 Budget Update 2. General Fund Reserves, FY 2017-18 3. 2016-2017 Capital Improvement Program GENERAL FUND SUMMARY FY 2017-18 BUDGET UPDATE - PRELIMINARY Actual 2015-16 Adopted 2016-17 Amended 2016-17 Forecast 2017-18 Update 2017-18 Change From Forecast Change % Revenues Property Taxes 33,598,601 35,182,061 36,087,937 36,969,357 37,971,147 1,001,790 2.7% Sales Taxes (1)20,938,826 20,666,260 20,666,260 21,111,118 20,996,940 (114,178) -0.5% Development Revenue 10,562,963 8,568,899 10,978,502 7,697,743 9,798,859 2,101,116 27.3% Other Taxes 6,606,016 5,465,000 5,865,000 5,547,000 5,947,000 400,000 7.2% Licenses & Permits 310,286 292,140 292,140 295,496 309,096 13,600 4.6% Fines & Penalties 116,016 109,932 109,932 109,932 111,432 1,500 1.4% Interest (2)2,937,978 465,880 840,880 465,880 876,000 410,120 88.0% Rentals and Leases 1,114,747 1,033,488 1,033,488 1,141,916 1,081,672 (60,244) -5.3% Intergovernmental 324,075 198,618 198,618 198,618 198,618 - 0.0% Charges for Services 5,396,964 4,838,466 4,905,866 5,745,562 6,231,842 486,280 8.5% Community Benefit Payments 424,000 100,000 550,000 - - - Other Revenue 585,944 256,344 519,078 256,344 259,235 2,891 1.1% Total Revenues 82,916,416 77,177,088 82,047,701 79,538,966 83,781,841 4,242,875 5.3% Expenditures Salaries & Wages 9,437,426 11,100,241 10,502,206 11,990,533 12,434,084 443,551 3.7% Benefits 4,172,485 5,707,982 5,692,982 5,992,648 6,289,213 296,565 4.9% Services & Supplies 1,875,458 2,946,394 2,913,392 3,013,709 3,262,530 248,821 8.3% Internal Service Fund Charges 2,637,354 3,065,342 3,040,284 2,988,764 3,051,124 62,360 2.1% Utilities 1,723,204 2,248,261 2,243,857 2,657,341 2,830,310 172,969 6.5% Total Contracted Services *39,869,473 43,297,583 45,385,822 45,208,233 45,929,352 721,120 1.6% Capital Outlay 133,477 719,801 800,598 293,152 419,112 125,960 43.0% Contingeny - 989,112 957,477 1,000,203 750,199 (250,004) -25.0% Contribution to OPEB/PERS 9,200,000 - Subtotal Expenditures 69,048,878 70,074,716 71,536,618 73,144,582 74,965,924 1,821,342 2.5% Prior Year Carryovers 1,612,658 Total Expenditures 69,048,878 70,074,716 73,149,276 73,144,582 74,965,924 1,821,342 2.5% Operating Impact 13,867,538 7,102,372 8,898,426 6,394,384 8,815,917 2,421,533 37.9% Transfers Out (2,409,006) (759,510) (8,780,937) (2,317,520) (2,440,629) Impact on Total Reserves 11,458,531 6,342,862 117,489 4,076,864 6,375,288 TOTAL RESERVES 109,165,026 109,282,515 115,657,803 1) FY 2015-16 Sales Tax included a final triple flip payment 2) FY 2015-16 Interest Revenue included $1.9 million in unrealized gains * Contracted Services Detail Actual 2015-16 Adopted 2016-17 Amended 2016-17 Forecast 2017-18 Update 2017-18 Change From Forecast Change % Police Services 15,868,735 17,055,970 17,170,881 18,026,019 18,194,693 168,674 0.9% Fire Services 11,063,248 11,982,959 11,982,959 12,358,802 12,426,576 67,774 0.5% Maintenance Services (MCE)3,997,800 4,296,214 4,296,214 4,829,512 4,829,512 - 0.0% Community Development 2,516,339 2,431,193 3,386,627 2,326,813 2,742,971 416,158 17.9% Public Works 2,181,918 2,615,945 2,639,682 2,791,639 2,771,161 (20,478) -0.7% Parks & Community Services 2,087,606 2,107,531 2,571,602 2,246,167 2,107,214 (138,954) -6.2% Economic Development 37,511 234,697 512,540 157,709 157,709 - 0.0% City Attorney 876,229 800,746 800,746 800,746 896,180 95,434 11.9% Administrative Departments 1,240,087 1,772,328 2,024,571 1,670,825 1,803,336 132,511 7.9% Total Contracted Services 39,869,473 43,297,583 45,385,822 45,208,233 45,929,352 721,120 1.6% ATTACHMENT 1 GENERAL FUND RESERVES ATTACHMENT 2 FY 2017-18 BUDGET UPDATE Reserve Balances Projected 2016-17 Increase 2016-17 Decrease 2016-17 NET CHANGE Update 2017-18 Non-Spendable 247,761 - (160,681) (160,681) 87,080 Prepaid Expenses 27,080 - 27,080 Cemetery Endowment 60,000 - 60,000 Advance to Public Facility Fees - - - Advance to Fire Impact Fee 0 - 0 Advance to PERS Side Fund 160,681 (160,681) (160,681) (0) Restricted 579,000 - - - 579,000 Heritage Park Maintenance 500,000 - 500,000 Developer Contr - Nature Pk 60,000 - 60,000 Developer Contr - Heritage Pk 19,000 - 19,000 Committed 31,494,194 - - - 31,494,194 Economic Stability 8,000,000 - 8,000,000 Downtown Public Impr 461,929 - 461,929 Economic Development 1,000,000 - 1,000,000 Emergency Communications 741,000 - 741,000 Fire Svcs OPEB 3,084,672 - 3,084,672 Innovations & New Opport 1,722,785 - 1,722,785 One-Time Initiative 1,341,408 - 1,341,408 Specific Committed Reserves - Emerald Glen Aquatic Complex - - - Maintenance Facility - - - Cemetery Expansion 5,272,210 - 5,272,210 Fallon Sports Park 200,000 - 200,000 Civic Ctr Expansion - - - Storm Drain Capture - - - Shannon Center Parking Lot - - - Utility Undergrounding 1,170,190 - 1,170,190 Advance to Public Facility Fee 6,000,000 - 6,000,000 Dublin Sports Ground 2,500,000 - 2,500,000 Assigned 36,213,208 515,000 - 515,000 36,728,208 Accrued Leave 988,708 - 988,708 Operating Carryovers - - - CIP Carryovers - - - Non-Streets CIP Commitments 3,879,516 - 3,879,516 Catastrophic Loss 11,368,531 - 11,368,531 Service Continuity 3,000,000 - 3,000,000 Pension & OPEB 10,614,353 515,000 515,000 11,129,353 Fiscally Responsible Adj 325,000 - 325,000 Municipal Regional Permit 2,225,000 - 2,225,000 HVAC Replacement 1,000,000 - 1,000,000 Relocate Parks Dept 250,000 - 250,000 Specific Assigned Reserves - Civic Ctr Renovation-Police 1,962,100 - 1,962,100 Contribution to ISF - - - Fire Equipment Replacement 600,000 - 600,000 Unassigned 40,748,352 160,681 5,860,288 6,020,970 46,769,323 Unassigned-Unrealized Gains (2,197,354) - (2,197,354) Unassigned (Available)42,945,706 48,966,676 TOTAL RESERVES 109,282,515 675,681 5,699,607 6,375,289 115,657,803 Project Description PRIOR YEARS 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 ESTIMATE FUTURE YEARS TOTALS Annual ADA Transition Plan 23,833 23,833 Civic Center Modification Design and Construction 3,650,735 627,556 4,278,291 Cultural Arts Center 335,796 5,264,204 5,600,000 IT Infrastructure Improvement 650,000 650,000 Maintenance Yard Facility Improvements 9,765,631 215,102 9,980,733 Public Safety Complex - Police Services Building 519,527 14,480,473 15,000,000 TOTAL COSTS 13,935,893 15,996,963 335,796 5,264,204 35,532,857 FINANCING PRIOR YEARS 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 ESTIMATE FUTURE YEARS TOTALS Cable TV Facilities 13,217 599,783 613,000 Dublin Crossing Development Fee 519,527 14,480,473 15,000,000 General Fund 8,484,432 266,708 8,751,140 Internal Service Fund - Facilities Replacement 3,082,856 3,082,856 IT Fund 650,000 600,000 1,250,000 Public Facilities Fee 1,835,861 335,796 4,664,204 6,835,861 TOTAL FINANCING 13,935,893 15,996,963 335,796 5,264,204 35,532,857 2016-2021 CAPITAL IMPROVEMENT PROGRAM - GENERAL IMPROVEMENTS Project Description PRIOR YEARS 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 ESTIMATE FUTURE YEARS TOTALS Annual Sidewalk Safety Repair Program 708 104,217 104,925 San Ramon Road Landscape Renovation 405 238,660 239,065 TOTAL COSTS 1,113 342,877 343,990 FINANCING PRIOR YEARS 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 ESTIMATE FUTURE YEARS TOTALS General Fund 1,113 342,877 343,990 TOTAL FINANCING 1,113 342,877 343,990 2016-2021 CAPITAL IMPROVEMENT PROGRAM - COMMUNITY IMPROVEMENTS Project Description PRIOR YEARS 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 ESTIMATE FUTURE YEARS TOTALS Clover Park & Sunrise Park 1,781,358 1,781,358 Dublin Crossing Community Park 139,845 1,420,889 6,126,806 998,198 6,101,606 654,260 6,099,646 21,541,250 Dublin Heritage Park Cemetery Improvements 6,928 1,475,072 1,482,000 Dublin Sports Grounds Renovation 332,495 498,605 831,100 Emerald Glen Recreation & Aquatic Complex - Phase I 26,524,866 17,306,079 43,830,945 Fallon Sports Park - Phase II 2,688,607 15,090,270 17,778,877 Jordan Ranch Neighborhood Park 559,679 1,739,233 2,298,912 Library Improvement - Center for 21st Century Skills 37,208 239,750 276,958 Moller Ranch Neighborhood Square 510,440 510,440 Public Art - Clover Park & Sunrise Park 35,600 35,600 Public Art - Dublin Crossing Community Park 176,446 250,993 325,310 752,749 Public Art - Emerald Glen Recreation and Aquatics Complex 127,944 249,990 5,035 382,969 Public Art - Fallon Sports Park 100,011 179,923 279,934 Public Art - Jordan Ranch Neighborhood Park 46,980 46,980 Public Art - Moller Ranch Neighborhood Square 10,000 10,000 Public Art - Public Safety Complex - Police Services Building 300,000 300,000 Public Art - Sean Diamond Park 48,000 48,000 Sean Diamond Park 155,655 2,782,875 2,938,530 Shannon Center Parking Lot Improvements 87,590 987,410 1,075,000 Shannon Park Water Play Area 693,951 693,951 Wallis Ranch Community Park 6,358,155 6,358,155 TOTAL COSTS 31,454,779 42,788,428 8,473,326 1,323,508 6,101,606 7,012,415 6,099,646 103,253,708 FINANCING PRIOR YEARS 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 ESTIMATE FUTURE YEARS TOTALS Community Benefit Payment (GF)1,800,000 1,800,000 Developer Built 3,398,415 3,662,841 712,824 3,522,490 640,376 3,594,938 15,531,884 Dublin Crossing Development Fee 99,290 1,008,823 1,108,113 General Fund 94,518 4,086,905 1,475,072 5,656,495 Housing-Related Parks Grant Fund 332,495 498,605 831,100 Measure D 80,000 80,000 Public Art Fund 227,955 941,959 361,008 325,310 1,856,232 Public Facilities Fee 30,700,521 30,973,721 2,974,405 285,374 2,579,116 6,372,039 73,885,176 Unidentified 2,504,708 2,504,708 TOTAL FINANCING 31,454,779 42,788,428 8,473,326 1,323,508 6,101,606 7,012,415 6,099,646 103,253,708 2016-2021 CAPITAL IMPROVEMENT PROGRAM - PARKS Project Description PRIOR YEARS 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 ESTIMATE FUTURE YEARS TOTALS Amador Plaza Road Bicycle and Pedestrian Improvements 341,255 1,072,393 1,413,648 Amador Valley Blvd - Wildwood Road and Stagecoach Intersections Improvements 170,680 91,030 261,710 Annual Street Overlay Program 111,259 2,229,030 2,340,289 Annual Street Resurfacing 1,700,000 1,697,100 1,697,100 1,697,100 1,697,100 8,488,400 City Irrigation Improvements 121,974 80,080 202,054 Citywide Bicycle and Pedestrian Improvements 609,600 620,380 425,380 407,580 407,580 2,470,520 Citywide Signal Communications Upgrade 501,185 70,339 90,120 90,120 90,120 90,120 932,004 Citywide Street Storm Drain Condition Assessment 492,462 502,947 995,409 Dougherty Road Improvements Sierra Lane to North City Limit 3,873,196 18,943,479 89,836 22,906,511 Dublin Boulevard Extension 650,000 396,450 653,450 1,003,350 1,003,450 59,834,000 63,540,700 Dublin Boulevard Improvements - Sierra Court to Dublin Court 483,473 2,439,007 4,013,554 6,936,034 Dublin Ranch Street Light Improvements 351,450 37,480 37,480 37,480 37,480 501,370 Dublin Ranch Street Light Pole Painting Project 23,251 12,634 35,885 Saint Patrick Way - Regional Street to Golden Gate Drive 848,939 4,303 853,241 San Ramon Road Arterial Management 267,480 267,480 San Ramon Road Trail Improvements 71,858 101,603 173,461 Storm Drain Bypass San Ramon Road 1,015,035 197,471 1,212,506 Storm Drain Trash Capture Project 69,872 546,877 616,749 Tassajara Road Realignment & Widening 4,389 315,611 200,760 401,080 2,448,380 8,263,380 32,015,000 43,648,600 Traffic Sign Inventory and Safety Review 35,931 97,992 133,923 Village Parkway and Brighton Traffic Signal Upgrade 14,571 181,909 196,480 TOTAL COSTS 8,008,649 30,544,885 7,236,710 3,304,610 5,684,010 11,499,110 91,849,000 158,126,974 2016-2021 CAPITAL IMPROVEMENT PROGRAM - STREETS 2016-2021 CAPITAL IMPROVEMENT PROGRAM - STREETS FINANCING PRIOR YEARS 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 ESTIMATE FUTURE YEARS TOTALS Eastern Dublin Traffic Impact Fee - Category 1 4,389 642,611 497,210 854,530 2,005,730 1,306,830 5,311,300 Eastern Dublin Traffic Impact Fee - Category 2 1,648,316 1,103,390 2,751,706 Energy Efficient Capital Lease 121,974 80,080 202,054 General Fund 634,192 1,984,447 108,000 108,000 108,000 108,000 3,050,639 Internal Service Fund - Equipment 89,474 5,426 94,900 Local Recycling Programs 86,000 86,000 Measure B Grants 410,440 5,856,560 6,267,000 Measure B Sales Tax - Bike & Pedestrian Fund (ACTC)292,940 285,630 19,600 598,170 Measure B Sales Tax - Local Streets Fund (ACTC)111,259 991,298 485,000 810,000 810,000 810,000 4,017,556 Measure BB Grants 11,400,000 3,100,000 200,000 1,446,000 7,960,000 24,106,000 Measure BB Sales Tax - Bike & Pedestrian Fund (ACTC)228,000 117,780 17,780 19,580 19,580 402,720 Measure BB Sales Tax - Local Streets Fund (ACTC)853,600 545,000 200,000 200,000 200,000 1,998,600 Mitigation Contributions 1,963,349 221,780 2,185,129 Noise Mitigation Fund 90,000 90,000 Other 1,000,000 1,000,000 State Gas Tax 2,284,219 917,100 917,100 917,100 917,100 5,952,619 Storm Water Management 1,015,035 44,964 1,059,999 Street Light District East Dublin 1999-1 23,251 364,084 37,480 37,480 37,480 37,480 537,255 Traffic Impact Fee - Category 3 1,159,000 1,159,000 Traffic Impact Fee - Dougherty Valley 1,644,081 1,366,648 3,010,729 Traffic Impact Fee - Downtown 369,992 612,746 100,000 100,000 100,000 1,282,738 Traffic Safety 35,931 97,992 133,923 Transportation for Clean Air 14,571 192,914 207,485 Unidentified 91,849,000 91,849,000 Vehicle Registration Fee (ACTC)411,711 200,260 40,120 40,120 40,120 40,120 772,451 TOTAL FINANCING 8,008,649 30,544,885 7,236,710 3,304,610 5,684,010 11,499,110 91,849,000 158,126,974