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HomeMy WebLinkAbout6.3 Fiscal Year 2021-22 Budget UpdateSTAFF REPORT CITY COUNCIL Page 1 of 11 Agenda Item 6.3 DATE:June 1, 2021 TO:Honorable Mayor and City Councilmembers FROM:Linda Smith, City Manager SUBJECT:Fiscal Year 2021-22 Budget Update Prepared by: Lisa Hisatomi, Director of Administrative Services EXECUTIVE SUMMARY: The City Council will consider approval of a Resolution adopting the City's budget for Fiscal Year 2021-22 and related additional resolutions regarding personnel salary and classification plans. STAFF RECOMMENDATION: Take the following action: 1) Adopt the Resolution Adopting a Budget for the City of Dublin for Fiscal Year 2021-22; 2) Adopt the Resolution Establishing a Salary Plan for Full-Time Personnel in Accordance with the Personnel Rules; and 3) Adopt the Resolution Establishing a Salary Plan for Management Positions Exempt from Competitive Service. FINANCIAL IMPACT: The Fiscal Year 2021-22 Budget Update totals $126,956,968 in all funds. This is made up of operating appropriations of $105,799,397, which consists of $102,310,203 in Governmental Funds accounting for primary City operations and capital project expenditures, and $3,489,194 in Internal Service Funds for equipment purchases, deferred maintenance set-asides, information technology costs, and retiree health payments. Capital Improvement Program appropriations total $21,157,571 for General Improvements, Public Art, Parks, and Streets projects. The Fiscal Year 2021-22 General Fund operating budget includes $98,397,780 in revenues, and $56,600 in transfers in; $83,917,863 in operating expenditures, and $6,038,550 in transfers out to capital projects, Internal Services Funds, and the City’s unfunded pension liability. Total reserves by June 30, 2022 are projected to increase $8,497,967 over Fiscal Year 2020-21. All budgeted funds are balanced, with revenues covering expenditures. Negative fund balance in grants and impact fees funds is a normal condition related to the timing gap between project expenditures and revenue collection. 1174 Page 2 of 11 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 prior projections are revised and significant changes highlighted. The budget update is a pared-down document containing fund financial schedule, while the original budget document continues to serve as the guiding financial plan, with departmental narratives, fund descriptions, a glossary, an explanation of accounting principles, and related defining information. FY 2021-22 Budget Update – Document Overview The Fiscal Year 2021-22 Budget Update (Attachment 6) includes the following sections: 1. Funds Summary - These schedules reflect revenue and expenditures for each fund with a brief description of variances, and fund balance projections. 2. General Fund Summary. 3. Fiduciary Funds - This section presents revenues and expenditures associated with non- City funds, such as the Community Facilities District 2015-1 (Dublin Crossing) Fund, and the City's four Geologic Hazard Abatement Districts (GHADs). The City Council will consider approval of the GHAD budgets under a separate item at this meeting, but the fund summaries are included in the City budget document. 4. Adopted Strategic Plan. 5. Appendix - This section contains historical revenues and expenditures, Position Allocation Plan. FY 2001-22 General Fund Overview Total General Fund revenues are budgeted at $98.4 million, operating expenditures total $83.9 million, and net transfers out total $6.0 million. Most capital improvement project costs funded by the General Fund are supported through either the planned use of committed reserves, or through the special designation of surplus reserves approved by the City Council. While the Budget Update is in a surplus position, it is important to recognize that there are a number of potential areas for future one-time expenditures such as the Village Parkway pavement reconstruction and Dublin Sports Ground Phase 5 renovation, that are outside the current five- year Capital Improvement Program (CIP) period. In addition, due to insufficient cash flow in the Public Facilities Fee program, a General Fund advance has been made for the construction of Wallis Ranch Community Park, Jordan Ranch Neighborhood Square, and the Library Tenant Improvement projects, that are planned in the 2020-2025 CIP. In June 2020, the City Council approved a General Fund advance of $7.5 million of the $10.0 million funding needed for his purpose. Revenues Total General Fund revenues are projected to increase by $4.2 million in the Budget Update when compared to the Fiscal Year 2020-21 Amended Budget, due primarily to higher property tax, sales tax, development, and charges for services. 1175 Page 3 of 11 Figure 1 illustrates the City’s General Fund revenue source allocation for Fiscal Year 2021-22. Figure 1. Revenues by Categories The following is a summary of the net changes reflected in the Budget Update as compared to the Fiscal Year 2020-21 Amended Budget (+/- $250,000): Property Tax Revenue – increase of $2,367,000 (+4.7%) In recent years, Dublin’s property tax revenue has generally increased an average of $3.5 million per year on secured and unsecured values. The preliminary estimate for Fiscal Year 2021-22 reflects an increase of approximately $2.4 million, which is $1,100,000 lower than the recent annual growth. This is attributable to the net impact of the following factors: CPI adjustment of 1.036%, out of a maximum of 2.0% allowable by Prop 13. This is the tenth since 1976-77 that CPI was less than 2% and it is reflective of the impacts of the pandemic on the economy. A slight rebound in the number of home sales and sale prices in the second half of 2020. Lower growth in assessed values (AV) for new construction, due to the slowdown of development activities prior to the outbreak of COVID-19 and the impact of lockdowns. Continued restoration of AV previously reduced via Prop 8. Sales Tax Revenue – increase of $932,950 (+4.3%) The Budget Update projects slight growth in auto sales, building upon the trend seen in the current year with the ongoing shift in buyer preference toward larger, pricier vehicles. The City will continue to experience steady growth in consumer goods and business categories during Property Taxes 54% Sales Tax 22% Interest 1% Development 8% Other Taxes 7% Charges for Svcs 5% Rentals & Leases 1% Other Revenue 2% 1176 Page 4 of 11 Fiscal Year 2021-22. With the planned elimination of the Blueprint for a Safer Economy, along with widespread distribution of vaccines, it is anticipated that the City will see a stronger recovery of sales tax revenues generated by the Restaurants, Fuel, and General Consumer Goods categories. However, it should be noted that the City is not expected to return to pre-pandemic Sales Tax revenue levels until Fiscal Year 2022-23. Comparing to the preliminary budget presented to the City Council on April 20, the Budget Update reflects a sales tax reduction of $600,000 due to a change in Amazon’s business operations which will redirect some sales tax revenues from the Alameda County pool to agencies where the fulfillment centers are located. Development Revenue – increase of $526,751 (+7.3%) Development revenue projections are based on the timing of development projects. Entitlement work, plan checking, permitting, and construction activities for significant development projects slowed over the past year during the pandemic. The Budget Update assumes a resumption of delayed development projects in Fiscal Year 2021-22. Charges for Services – net increase of $881,745 (+20.0%) Parks and recreation programs, including facility and field rentals, have been significantly impacted by the pandemic and Stay-at-Home Order, forcing the City to extend closures and cancellations and to make other unanticipated modifications to program offerings. It should be noted that the City developed the Budget Update without the benefit of Governor Newsom’s announcement that the Blueprint for a Safer Economy will be rescinded on June 15, 2021. Therefore, this category may be modified at the mid-year to reflect an increase in charges for services. At this time, the Fiscal Year 2021-22 Budget assumes the resumption of all programs in the fall of 2021 with modifications in place according to guidelines set forth by State of California related to reduced class and group sizes. The Fiscal Year 2021-22 budget reflects the opening of The Wave waterpark for the 2021 summer season with reduced capacity. Despite the limited reopening of facilities, events, and programs, the Budget Update reflects 56% of recreation program revenues received prior to the pandemic. Interest – decrease of $400,000 (-25.0%) Federal monetary policy has led to a low interest rate environment and thus, lowered interest income on the City’s pooled funds. Expenditures The Budget Update reflects General Fund operating expenditures (less one-time expenditures and carryovers from the prior year) increasing $1.7 million over the current Amended Budget (Table 1), due to the net impact of personnel cost and contracted service cost increases and a significant decrease in capital outlay. 1177 Page 5 of 11 Table 1. Operating Budget Comparison FY 20-21 FY 21-22 $ Change % Change Adopted + Budget Changes $82,258,952 $83,917,863 $1,658,911 2.0% Budget Carryover from FY 19-20 2,135,147 -2,135,147 -100.0% Total $84,394,099 $83,917,863 ($476,236)-0.6% The following figure illustrate the allocation of General Fund expenditures by major categories. Figure 2. Expenditures by Categories The following is a summary of the net changes reflected in the Budget Update as compared to the Fiscal Year 2020-21 Amended Budget (+/- $250,000): Personnel Costs – increase of $1,768,523 (+10.8%) The increase in the Budget Update is mainly attributed to: Increase in temporary salaries for parks and recreation programs. These positions were significantly reduced in the Fiscal Year 2020-21 Budget due to the cancellation of programs and are being restored in conjunction with the resumption of program offerings. Cost-of-living (COLA) adjustment of 1.8%. Position Changes. The Position Allocation Plan includes the addition of one Senior Office Assistant in the City Manager’s Office and one Recreation Coordinator in the Parks and Community Services Department to oversee facility rentals. Increase in benefit expenditures for retirement costs and health insurance premiums. The Budget Update includes the following personnel-related resolutions: Resolution Establishing a Salary Plan for Full-Time Personnel in Accordance with the Personnel Costs 21% Capital Outlay & Other 0% Services & Supplies 5% Internal Service Fund Charges 5% Utilities 4% Contracted Services 65% 1178 Page 6 of 11 Personnel Rules updates full-time salary ranges to include annual COLA adjustments. Resolution Establishing a Salary Plan for Management Positions Exempt from Competitive Service updates management salary ranges to include annual COLA adjustments. Contract Services Expenditures – increase of $558,619 net of budget carryovers (+1.0%) The Fiscal Year 2021-21 Amended Budget includes a contract services budget carryover of $1,709,768 from Fiscal Year 2019-20. Excluding the carryover, the Preliminary Budget projects a net increase of $558,619, as illustrated in Table 2: Table 2. Contract Services Changes Service Type FY 20-21 Amended Carryover From 2019-20 2020-21 Net of Carryover FY 21-22 Update $ Change % Change Police $21,443,621 $145,231 $21,298,390 $22,294,777 $996,387 4.7% Fire 14,178,578 14,178,578 14,609,570 430,992 3.0% Maintenance 5,736,382 5,736,382 5,933,836 197,454 3.3% Development 4,878,821 4,878,821 4,057,935 (820,886)-16.8% Other 9,281,633 1,564,537 7,717,096 7,471,768 (245,328)-3.2% Total $55,519,035 $1,709,768 $53,809,267 $54,367,886 $558,619 1.0% Police and Fire Services budget increases are due primarily to annual COLA and benefit cost increases. The Police Services budget includes one additional School Resource Officer, funded by the California Department of Justice Tobacco Grant (not in the General Fund), beginning in Fiscal Year 2021-22 for three years. Development-related and other general City contract costs are budgeted according to anticipated service levels for specific projects. Transfers Out/Contributions The Budget Update includes General Fund transfers out of $1.0 million to the Internal Services Fund – Facilities for preventive maintenance and $1.0 million to the City’s unfunded pension liability with the California Public Employee Retirement System (CalPERS). In addition, $4.0 million is budgeted to fund capital improvement projects, of which $1.6 million comes from Committed/Assigned reserves. CIP projects funded by the General Fund are shown in Table 3 below. 1179 Page 7 of 11 Table 3. Transfers Out to the Capital Improvement Program Reserves / Projects Amount Committed/Assigned $1,633,905 City Entrance Monument Signs 200,000 Civic Center Rehabilitation 1,123,050 Green Stormwater Infrastructure 310,855 Undesignated $2,404,645 Alamo Creek Park - Fence Replacement 450,000 Audio Visual System Upgrade 44,020 Citywide Bicycle and Pedestrian Improvements 108,000 Citywide Energy Improvements 115,780 Downtown Dublin Street Grid Network 60,210 Downtown Dublin Town Square Park 29,505 Resiliency & Disaster Preparedness Improvements 681,010 Restrooms Replacement 916,120 Total $4,038,550 General Fund Reserves Total reserves are projected to be $187.1 million at the end of Fiscal Year 2021-22, an increase of $8.5 million over Fiscal Year 2020-21. The unassigned/available cash flow reserve is projected to be $77.4 million, representing about nine months of the projected Fiscal Year 2021-22 operating expenditures. While this is well above the cash flow target of two to four months of the budget, this figure has not been adjusted for any reserve designations in the current year, and before Staff completes the necessary accounting adjustments to reserves at the end of the current fiscal year. The City Council will make reserve designations during the meeting of June 15, 2021. Table 4 provides a summary of the General Fund Reserves Summary provides a list of all reserve balances. Table 4. Operating Budget Impact & Reserve FY 2020-21 Amended FY 2021-22 Update $ Change % Change Revenues $94,153,039 $98,397,780 $4,244,741 4.5% Expenditures (Excludes FY 19-20 carryover)82,258,952 83,917,863 1,658,911 2.0% Ongoing Operating Budget Impact $11,894,087 $14,479,917 $2,585,830 21.7% Carryovers from Prior Year 2,135,147 Contribution to OPEB/PERS/ISF 4,000,000 2,000,000 Net Transfers In/Out 17,758,948 3,981,950 Total Reserves, End of Year $178,553,217 $187,051,184 $8,497,967 4.8% 1180 Page 8 of 11 10-Year Forecast and Next Steps As part of the Fiscal Year 2020-21 and Fiscal Year 2021-22 Budget (June 20,2020), the City Council received an update to the 10-Year General Fund Forecast, which showed a projected operating deficit of $1.0 million in Fiscal Year 2026-27. The assumption at that time was that the COVID-19 pandemic result in significant reductions to the City’s major revenue categories, particularly tax revenues (property tax, sales tax, and transient occupancy tax), interest income, recreation services, and development services. Based on current year revenues received, the COVID-19- related impacts have been less impactful than anticipated, particularly in property tax and sales tax. Staff has adjusted the Forecast to account for this, and has refined other assumptions over the 10-year period: Revenues Property Tax: Years 1 – 5 growth: 4.7%, 4.3%, 5.0%, 5.2%, 4.5%, includes estimated Prop 8 restoration adjustment and transfer of ownership assessed value change. Years 6 – 10 growth: 2.5% (average $1.6 million) annually. Sales Tax: Years 1 – 4 growth: 4.3%, 3.9%, 3.0%, 3.0%. Year 5: recessionary adjustment growth 1.0%. Years 6 – 10 growth: 2.5% (Average $650,000) annually. No new large sales tax generators in 10-year period. Development Revenue: Estimates from Community Development and Public Works. Based on timing of development projects; a decline is anticipated as projects are completed over 10 years. Projected residential build-out reached at the end of the 10-year period. Charge for Services: Years 1-5 growth in recreation program revenue: 20.0%, 10.0%, 5.0%, 5.0%, 5.0%. Years 6-10 growth in recreation program revenue: 1.0% annually. Other Revenue: Other Taxes: annual growth of 2.0%. Interest Income: 25% decline in Year 1 based on current low interest rate environment. o Years 2 – 5 growth: 1.0% annually. o Years 6 – 10 growth: 2.0% annually. Expenditures Personnel Costs: Year 1: actual salaries and benefits based on the adopted position allocation plan. Years 2 – 10 growth: 4.5% ($820,000) annually, no additional positions. 1181 Page 9 of 11 Extra funding of Dougherty Regional Fire Authority OPEB liability: $150,000 annually (Dublin’s share). This is a closed plan which will eventually have no expenditures. $1.0 million per year for pension increases, which can be set aside in a reserve if not used. Contracted Services (Average Annual Change): Police Services – two-year agreement, then 5.5% increase ($1.5 million) annually; in addition, one additional police officer each year is included in the 10-year period. The first officer added in Year 1 is funded by the State Tobacco grant for the first three years. Fire Services – five-year agreement, then 5.0% increase ($900,000) annually. Maintenance Services (MCE) – 4.0% increase ($280,000) annually. Development – 10.0% decrease ($300,000) annually. Other Contracted Services – 4.0% increase ($350,000) annually. Internal Service Charges $300,000 additional annual funding, beginning in Year 2, for building/equipment replacement. All other: 1% annual increases in Supplies and Services; 5% increase in Utilities. General Fund CIP funding of $2.5 million and $2.2 million for Fiscal Years 2022-23 and 2023-24 respectively, and minimum contribution after Fiscal Year 2023-24. Results Because of growth in property tax, sales tax (including non-recurring revenue), and development revenue in the current year and projected into next year, the 10-Year Forecast is now balanced at Fiscal Year 2027-28, as shown in Figure 3 below. It is important to note that the Forecast does not incorporate any major structural shifts over the 10-year period (e.g., new businesses coming into Dublin, increased Police Services beyond what is included in the projection, or any other significant investment in capital projects using the General Fund). While the City is set to absorb the recent annual increases resulting from CalPERS lower investment earnings and has built that cushion into the Forecast, Staff will continue to look for opportunities to increase reserves to weather such dramatic increases in the future. 1182 Page 10 of 11 Figure 3. 10-Year Forecast Other Funds Under the American Recovery Plan Act (ARPA), the City will receive approximately $12,202,075 distributed in two equal tranches by no later than June 2021 and June 2022, respectively. This total figure is based off a March 8, 2021 projection for funding. The Budget Update includes revenues $6,101,037.50 in a newly created fund for this purpose. Expenditures will be made according to the ARPA Spending Plan adopted by the City Council and will be accounted for in this fund. There are no other significant budgetary changes in other funds. Other Items Human Services Grants Human Services grant recommendations will be considered and approved by the City Council at a June 2021 meeting, and Staff will incorporate the approved grants in the Adopted Budget. Out-of-State Travel The Budget Update includes appropriations for Staff’s out-of-state travel for conferences and trainings. All out-of-state travel requests require the City Manager’s approval. 1183 Page 11 of 11 STRATEGIC PLAN INITIATIVE: Strategy 2: Explore New City Revenue Streams for Long Term Financial Stability Objective D: Continue to maintain strong fiscal policies. NOTICING REQUIREMENTS/PUBLIC OUTREACH: Budget Meeting notices were posted on May 28, 2021 on the City’s website and at three City facilities. The City Council Agenda was posted. ATTACHMENTS: 1) Resolution Adopting a Budget for the City of Dublin for Fiscal Year 2021-22 2) Resolution Adopting a Salary Plan for Full-Time Personnel in Accordance with the Personnel Rule 3) Resolution Establishing a Salary Plan for Management Positions Exempt from Competitive Service 4) Fiscal Year 2021-22 General Fund Summary 5) Fiscal Year 2021-22 General Fund Reserves 6) Proposed Fiscal Year 2021-22 Budget Update 1184 Attachment 1 RESOLUTION NO. XX -21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ADOPTING A BUDGET FOR THE CITY OF DUBLIN FOR FISCAL YEAR 2021-22 WHEREAS, the City Council of the City of Dublin desires to establish a Budget for Fiscal Year 2021-22; and WHEREAS, the City Council has reviewed and considered the Budget documents and has received input from the public; and WHEREAS, the City Manager has prepared a balanced budget which provides for organizational adjustments and allocation of resources in a manner which aligns with available resources and the Strategic Plan elements; and WHEREAS, the General Fund Operating Budget is balanced without the need to draw from the Reserve for Economic Stability in order to balance funding with planned expenditures; and WHEREAS, the City Council is required to adopt a budget and financial plan before the Fiscal Year begins on July 1, 2021; and WHEREAS, the Summary of Appropriations (Exhibit A) attached hereto and made part of this Resolution, reflects the Fiscal Year 2021-22 Budget for Governmental and Proprietary Funds for the City of Dublin; and WHEREAS, Human Services grants are presented to the City Council for approval after the preparation of the Proposed Budget and the Summary of Appropriations (Exhibit A) may need to be revised based on the amount approved; and WHEREAS, the City Council desires to confirm adjustments made administratively to the Capital Improvement Project balances during the preparation of the Proposed Budget and accommodate the carryover of unspent Fiscal Year 2020-21 Capital Improvement Project appropriations, for those projects where work and expenditures will continue in Fiscal Year 2021- 22; and WHEREAS, the City Council desires to accommodate a process the carryover of unspent Fiscal Year 2020-21 operating expenditures, both encumbered and unencumbered, excluding personnel costs, for activities where work and expenditures will continue in Fiscal Year 2021- 22; and WHEREAS, The City Council desires to delegate the authority to appropriate Internal Service fund balances that have been set aside for facilities, vehicle, and equipment replacement purposes to the City Manager in Fiscal Year 2021-22. 1185 Attachment 1 WHEREAS, The City Council also desires to delegate the authority to appropriate Committed and Assigned fund balances that have been approved by the City Council for specific purposes to the City Manager in Fiscal Year 2021-22. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby: 1. Adopt the Fiscal Year 2021-22 Budget Appropriation for the City of Dublin, as outlined in Exhibit A plus the final Human Services grants amount approved by the City Council; 2. Authorize the City Manager to make expenditures appropriations in accordance with the Budget as adopted, with the exception of those expenditures which require prior City Council approval, in accordance with the adopted City ordinances, rules and regulations; 3. Authorize the City Manager to transfer budgeted amounts between line items, provided that the transfer is within the same fund, regardless of the specific department activity. This includes the authority to transfer from the General Fund budgeted contingency amounts that are approved by the City Council during the budget adoption. A full accounting of any such transfers will be provided to the City Council during the quarterly financial reviews; 4. Recognize that the Budget as presented also includes a Contingency for Fiscally Responsible Adjustments, the utilization of which will be determined by fiscal outcomes of June 30, 2021; 5. Authorize the City Manager to increase revenue and expenditure budget for various departmental functions, when corresponding revenues comes in over budget: this would apply to developmental activity, inspection activity, recreation program activity, and any other departmental activity which generates correlating revenues, as verified by the Administrative Services Director. Increased appropriations shall continue to be documented in the financial records and conveyed to the City Council as part of the quarterly financial reviews; 6. Authorize the City Manager to increase revenues and expenditures related to the award of grants, where there is no net impact to the City, as verified by the Administrative Services Director. Increased appropriations shall continue to be documented in the financial records and conveyed to the City Council as part of the quarterly financial reviews; 7. Authorize the City Manager to make transfers among the various funds, consistent with the “Fund Balances FY 2021-22” as presented in the Proposed Budget. Fund transfers are reported as part of the regular financial reports provided to the City Council; 1186 Attachment 1 8. Authorize the City Manager to increase the appropriations for Fiscal Year 2021-22 expenditures in an amount not to exceed the amount of funds encumbered or designated by the City Manager as needed for expenses that did not occur prior to the year-end, but are expected to be expended in Fiscal Year 2021-22 consistent with the original purpose. This ability to carry-over funding shall not apply to savings from personnel services and shall only occur if the Department Activity total for non-personnel expenditures was less than the amount budgeted for the same. This must also be evaluated on a fund by fund basis. The actual amount of the increased appropriation shall be reported to the City Council, and the City Manager may assign the fund balance in an amount sufficient to account for the increase; 9. Authorize the City Manager to adjust the Fiscal Year 2021-22 appropriations to account for the carryover of unspent Capital Improvement Project appropriations from Fiscal Year 2020-21. All such adjustments shall be clearly recorded in the City financial records and shall only be for projects that remain incomplete as of June 30, 2021; and 10. Authorize the City Manager to transfer funds between capital projects, within the same funding source. Any revisions, which alter the project’s budget by adding a new funding source, are to be approved by the City Council. 11.Authorize the City Manager to appropriate funds from Committed and Assigned fund balances that have been approved by the City Council for specific purposes. 12.Authorize the City Manager to appropriate funds from Internal Service Funds that have been set aside for facilities, vehicle, and equipment replacement purposes. PASSED, APPROVED AND ADOPTED this 1st day of June 2021 by the following vote: AYES: NOES: ABSENT: ________________________________ Mayor ATTEST: ____________________________ City Clerk 1187 Attachment 1 EXHIBIT A FISCAL YEAR 2021-22 SUMMARY OF APPROPRIATIONS (Governmental and Proprietary Funds) OPERATING PROGRAMS APPROPRIATIONS Governmental Funds City Council $521,831 City Manager $4,156,137 City Clerk $623,288 City Attorney $987,780 Administrative Services $3,578,313 City Attorney $987,780 City Council $521,831 City Clerk $623,288 City Manager $4,156,137 Community Development $6,057,463 Fire Department $15,599,988 Non-Departmental $19,023,813 Police Department $25,754,580 Parks & Community Services $8,328,487 Public Works $17,678,523 Total Governmental Funds $102,310,203 Proprietary Funds Information Services $2,165,002 Parks & Community Services $24,241 Non-Departmental $1,299,951 Total Proprietary Funds $3,489,194 Total Operating Programs $105,799,397 CAPITAL IMPROVEMENT PROGRAMS General $6,991,969 Public Art $544,700 Parks $7,933,216 Streets $5,687,686 Total Capital Improvement Programs (1)$21,157,571 (1)Includes City funded project costs only 1188 Attachment 2 RESOLUTION NO. XX - 21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ESTABLISHING A SALARY PLAN FOR FULL-TIME PERSONNEL IN ACCORDANCE WITH THE PERSONNEL RULES WHEREAS, the City Council has adopted a Salary & Benefit Plan pursuant to the Personnel System Rules; and WHEREAS, the City Council adopted Resolution No. 52-20 and subsequent amendments which establish a Salary Plan for full-time personnel in accordance with the Personnel System Rules; and NOW, THEREFORE, BE IT RESOLVED that the following salary provisions shall be established in accordance with City’s Personnel System Rules. BE IT FURTHER RESOLVED that any previous enacted salary provisions contained in Resolution No. 52-20 and subsequent amendments shall be superseded by this Resolution. ARTICLE I: SALARY PROVISIONS SECTION A: REGULAR EMPLOYEES EXEMPT FROM FAIR LABOR STANDARDS ACT (FLSA) OVERTIME PROVISIONS Employees covered under this Section shall be paid a monthly salary within the following ranges with the exclusion of any Performance Pay Adjustment granted in accordance with the Personnel System Rules. In the event that it is deemed by the City Manager to be in the best interest of the City, temporary appointments of no more than 6 months, where the work assignments are such that they can be completed with less than a 40-hour week, may be approved based upon hourly rates. The total salary paid for such work shall not be less than the “salary test” required for an exemption under the FLSA. Monthly Minimum Monthly Maximum Accountant $8,733 $10,918 Assistant Civil Engineer $8,885 $11,106 Associate Civil Engineer $10,334 $12,918 Associate Planner $8,733 $10,918 Budget Analyst $9,615 $12,019 City Clerk $11,057 $13,821 Deputy City Clerk $7,534 $9,417 Environmental Coordinator $8,360 $10,452 Executive Aide $7,534 $9,417 Financial Analyst $9,615 $12,019 Housing Specialist $9,615 $12,019 Management Analyst II $8,360 $10,452 Network Systems Coordinator $8,360 $10,452 Parks & Facilities Development Coordinator $8,733 $10,918 1189 Attachment 2 Plans Examiner II $8,360 $10,452 Recreation Supervisor $8,527 $10,657 Senior Accountant $9,615 $12,019 Senior Management Analyst $9,615 $12,019 Senior Civil Engineer $11,578 $14,472 Senior Planner $9,952 $12,441 SECTION B: REGULAR EMPLOYEES COVERED BY OVERTIME PROVISIONS OF THE FLSA. Employees covered under this Section shall be paid hourly wages within the following ranges with the exclusion of any Performance Pay Adjustment granted in accordance with the Personnel System Rules. The monthly salaries are shown for informational purposes only. Monthly Minimum Monthly Maximum Hourly Minimum Hourly Maximum Administrative Aide $7,173 $8,968 $41.3849 $51.7413 Administrative Technician $6,522 $8,152 $37.6282 $47.0301 Assistant Planner $7,734 $9,665 $44.6205 $55.7620 Code Enforcement Officer $6,960 $8,700 $40.1530 $50.1912 Environmental Technician $7,244 $9,059 $41.7910 $52.2625 Finance Technician I $5,482 $6,852 $31.6241 $39.5302 Finance Technician II $6,093 $7,613 $35.1508 $43.9232 Graphic Design & Comm. Coordinator $7,244 $9,059 $41.7910 $52.2625 Heritage Center Director $7,244 $9,059 $41.7910 $52.2625 Information Systems Specialist $7,582 $9,475 $43.7405 $54.6654 Information Systems Technician I $6,257 $7,822 $36.0984 $45.1281 Information Systems Technician II $6,953 $8,692 $40.1124 $50.1439 Management Analyst I $7,525 $9,405 $43.4155 $54.2594 Office Assistant I $4,639 $5,799 $26.7641 $33.4585 Office Assistant II $5,155 $6,444 $29.7424 $37.1747 Permit Technician $6,522 $8,152 $37.6282 $47.0301 Plans Examiner I $7,582 $9,475 $43.7405 $54.6655 Public Works Inspector $7,963 $9,953 $45.9404 $57.4204 Public Works Technician I $6,892 $8,614 $39.7604 $49.6971 Public Works Technician II $7,582 $9,475 $43.7405 $54.6654 Recreation Coordinator $7,244 $9,059 $41.7910 $52.2625 Recreation Technician $6,523 $8,152 $37.6282 $47.0301 Senior Code Enforcement Officer $7,734 $9,665 $44.6205 $55.7620 Senior Finance Technician $6,953 $8,692 $40.1124 $50.1439 Senior Office Assistant $5,670 $7,088 $32.7140 $40.8908 Senior Public Works Inspector $8,759 $10,948 $50.5345 $63.1624 BE IT FURTHER RESOLVED that the changes contained herein shall be effective July 1, 2021. 1190 Attachment 2 PASSED, APPROVED AND ADOPTED this 1st day of June 2021 by the following vote: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: City Clerk 1191 Attachment 3 RESOLUTION NO. XX- 21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ESTABLISHING A SALARY PLAN FOR MANAGEMENT POSITIONS EXEMPT FROM COMPETITIVE SERVICE WHEREAS,the City Council has adopted a Salary & Benefit Plan pursuant to the Personnel System Rules; and WHEREAS, the City Council adopted Resolution No. 53-20 and subsequent amendments which establish a Salary Plan for full-time management positions exempt from competitive service in accordance with the City’s Personnel System Rules; and NOW, THEREFORE, BE IT RESOLVED that the following salary provisions shall be established in accordance with City’s Personnel System Rules. BE IT FURTHER RESOLVED that any previous enacted salary provisions contained in Resolution No. 53-20 and subsequent amendments shall be superseded by this Resolution. ARTICLE I: SALARY PROVISIONS A. REGULAR EMPLOYEES EXEMPT FROM FAIR LABOR STANDARDS ACT (FLSA) OVERTIME PROVISIONS Monthly Minimum Monthly Maximum Administrative Services Director $15,724 $19,656 Assistant City Manager $16,920 $21,147 Assistant Dir. of Community Development $12,344 $15,430 Assistant Parks & Community Services Director $12,344 $15,430 Assistant Dir. of Admin Svcs/Finance $12,344 $15,430 Assistant to the City Manager $11,269 $14,087 Capital Improvement Program Manager $12,209 $15,261 Chief Building Official $12,209 $15,261 Chief Information Security Officer $12,344 $15,430 City Clerk/Records Manager $11,269 $14,087 Assistant Public Works Director/City Engineer $13,144 $16,431 City Manager $25,415 Community Development Director $15,248 $19,061 Communications Manager $11,269 $14,087 Economic Development Director $12,344 $15,430 Economic Development Director/Public Information Officer $14,171 $17,714 Environmental & Sustainability Manager $11,269 $14,087 Heritage & Cultural Arts Manager $11,269 $14,087 Human Resources Director $14,171 $17,714 Human Resources Manager $11,269 $14,087 1192 Attachment 3 Information Systems Manager $11,269 $14,087 Parks & Community Services Business Manager $11,269 $14,087 Parks & Community Services Director $15,482 $19,351 Plan Check Engineer $11,269 $14,087 Planning Manager $11,956 $14,946 Principal Planner $11,269 $14,087 Public Works Director/Asst City Engineer $15,133 $18,917 Public Works Trans & Ops Mgr. $12,209 $15,261 Public Works Manager $11,269 $14,087 Public Works Maintenance Superintendent $11,269 $14,087 Recreation Manager $11,269 $14,087 Special Projects Manager $11,269 $14,087 BE IT FURTHER RESOLVED that the changes contained herein shall be effective July 1, 2021. PASSED, APPROVED AND ADOPTED this 1st day of June 2021 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________________ Mayor ATTEST: _______________________________________ City Clerk 1193 Attachment 4GENERAL FUND SUMMARY Actual 2019-20 Adopted 2020-21 Amended 2020-21 (2) FY 2021-22 Update $ Change from Amended % Change from Amended Revenues Property Tax $49,086,335 $48,896,000 $50,396,000 $52,763,000 $2,367,000 4.7% Sales Tax 21,439,886 19,595,050 21,595,050 22,528,000 932,950 4.3% Sales Tax Reimbursements (407,431) (610,000) (610,000) (610,000) Development Revenue 6,412,012 6,951,077 7,180,167 7,706,918 526,751 7.3% Transient Occupancy Tax 1,567,987 1,000,000 650,000 750,000 100,000 15.4% Other Taxes 5,712,336 5,676,387 5,676,387 5,732,706 56,319 1.0% Licenses & Permits 236,972 238,506 340,506 313,434 (27,072) -8.0% Fines & Penalties 85,128 107,432 62,432 107,432 45,000 72.1% Interest Earnings 3,652,445 1,600,000 1,600,000 1,200,000 (400,000) -25.0% Rentals and Leases 974,392 1,329,966 806,887 1,020,768 213,881 26.5% Intergovernmental 306,425 250,000 250,000 285,000 35,000 14.0% Charges for Services 5,948,509 6,222,359 4,401,546 5,283,291 881,745 20.0% Other Revenue 1,374,275 1,077,242 1,363,064 1,317,231 (45,833) -3.4% Subtotal Revenues - Operating $96,389,272 $92,334,019 $94,153,039 $98,397,780 $4,244,741 4.5% Transfers In $87,098 $56,600 56,600 56,600 - Unrealized Gains/Losses 6,433,261 - - Total Revenues $102,909,631 $92,390,619 $94,209,639 $98,454,380 $4,244,741 4.5% Expenditures Salaries & Wages $10,978,176 $11,886,262 $11,229,600 $12,772,605 $1,543,005 13.7% Benefits 4,890,980 5,016,611 5,146,893 5,372,411 225,518 4.4% Services & Supplies 2,928,191 3,892,942 3,937,317 4,110,511 173,194 4.4% Internal Service Fund Charges 2,977,333 3,685,246 3,685,246 3,907,322 222,076 6.0% Utilities 2,427,310 2,925,055 2,904,151 3,045,467 141,316 4.9% Contracted Services 46,071,154 53,053,169 55,960,499 54,367,886 (1,592,613) -2.8% Capital Outlay 3,959,753 397,883 1,246,788 118,677 (1,128,111) -90.5% Contingency & Miscellaneous 18,987 222,605 283,605 222,985 (60,620) -21.4% Subtotal Expenditures - Operating $74,251,883 $81,079,773 $84,394,099 $83,917,863 ($476,236) -0.6% Operating Impact (REV-EXP)$22,137,509 $11,254,246 $9,758,940 $14,479,917 $4,720,977 48.4% Transfers Out & Contributions to Other Funds Transfers Out (CIPs) - Undesignated $336,428 $1,159,855 $2,295,004 $2,404,645 $109,641 5% Transfers Out (CIPs) - Com./Assig. Reser 7,668,923 71,715 15,616,544 1,633,905 (13,982,639) -90% Contribution to OPEB/PERS 1,000,000 3,000,000 1,000,000 (2,000,000) -67% Contribution to ISF 1,229,066 1,000,000 1,000,000 1,000,000 Total Expenditures $83,486,300 $84,311,343 $106,305,647 $89,956,413 ($16,349,234) -16.7% Impact on Total Reserves $19,423,331 $8,079,276 ($12,096,008) $8,497,967 TOTAL GENERAL FUND BALANCE $190,649,224 $198,728,500 $178,553,217 $187,051,184 $8,497,967 4.8% Contracted Services Actual 2019-20 Adopted 2020-21 Amended 2020-21 (2) FY 2021-22 Update $ Change from Amended % Change from Amended Police Services (1)$19,619,858 $21,298,390 $21,443,621 $22,294,777 $851,156 4.0% Fire Services (1)13,325,437 14,178,578 14,178,578 14,609,570 430,992 3.0% Maintenance Services (MCE) 4,860,718 5,736,382 5,736,382 5,933,836 197,454 3.4% Development (CDD and PW) 3,142,265 4,616,073 4,878,821 4,057,935 (820,886) -16.8% Other Contracted Services 5,122,876 7,223,746 9,723,097 7,471,768 (2,251,329) -23.2% Total Contracted Services (2)$46,071,154 $53,053,169 $55,960,499 $54,367,886 ($1,592,613) -2.7% (1)Police and Fire liability insurance amounts are not included above, they are included in Services & Supplies. (2)Amended FY 20-21 Budget incudes $2,135,147 budget carryovers from FY 19-20, of that amount, $1,709,768 is for Contracted Services. 1194 Attachment 5GENERAL FUND RESERVES RESERVE DESCRIPTION Actual 2019-20 Projected 2020-21 Increase 2021-22 Decrease 2021-22 Net Change Projected 2021-22 Non-Spendable $13,061 $13,061 $13,061 Prepaid Expenses 13,061 13,061 13,061 Restricted $1,938,000 $2,379,000 $441,000 $441,000 $2,820,000 Cemetery Endowment 60,000 60,000 60,000 Developer Contr - Downtown 1,049,000 1,490,000 441,000 441,000 1,931,000 Developer Contr - Heritage Pk 19,000 19,000 19,000 Developer Contr - Nature Pk 60,000 60,000 60,000 Heritage Park Maintenance 750,000 750,000 750,000 Committed $57,828,474 $45,938,087 ($6,215,796) ($6,215,796) $39,722,291 Advance to Public Facility Fee 7,500,000 6,500,165 (6,215,796) (6,215,796)284,369 Downtown Public Impr 8,454,625 8,454,625 8,454,625 Economic Development 126,359 00 Economic Stability 8,000,000 8,000,000 8,000,000 Emergency Communications 532,113 530,377 530,377 Fire Svcs Pension/OPEB 5,324,225 5,324,225 5,324,225 Innovations & New Opport 1,065,471 894,498 894,498 One-Time Initiative - Capital 4,993,150 3,449,647 3,449,647 One-Time Initiative - Operating 503,860 503,860 503,860 Public Safety Reserve 2,000,000 2,000,000 2,000,000 Specific Committed Reserves Cemetery Expansion 1,447,764 Contribution to Public Facility Fee 6,000,000 6,000,000 6,000,000 Cultural Arts Center 4,539,197 Don Biddle Park 1,500,000 Dublin Sports Ground 1,502,671 Fallon Sports Park 3 Contingency 3,110,500 3,110,500 3,110,500 Maintenance Facility 58,350 (0) (0) Utility Undergrounding 1,170,190 1,170,190 1,170,190 Assigned $64,390,838 $59,716,800 ($1,123,050) ($1,123,050) $58,593,750 Accrued Leave 1,044,730 1,044,730 1,044,730 Catastrophic Loss 17,702,316 17,702,316 17,702,316 CIP Carryovers 3,502,246 3,502,246 3,502,246 Fiscally Responsible Adj 325,000 325,000 325,000 Municipal Regional Permit 2,282,905 2,105,383 2,105,383 Non-Streets CIP Commitments 2,462,100 2,462,100 2,462,100 Operating Carryovers 2,110,190 2,110,190 2,110,190 Parks and Streets Contingency 226,227 201,270 201,270 Pension & OPEB 15,000,000 15,000,000 15,000,000 Pension Rate Stabilization Plan 2,000,000 Relocate Parks Dept 250,000 250,000 250,000 Service Continuity 3,150,000 3,150,000 3,150,000 Specific Assigned Reserves Climate Action Plan 3,000,000 3,000,000 3,000,000 Contribution to ISF 1,500,000 1,500,000 1,500,000 Façade Improvement Grants 374,157 374,157 374,157 HVAC Replacement & Civic Ctr Improv 4,202,041 1,989,407 (1,123,050) (1,123,050)866,357 Public Safety Complex 258,925 Village Pkwy Pavemt Recon 5,000,000 5,000,000 5,000,000 Unassigned $66,478,851 $70,506,269 $7,338,846 $8,056,967 $15,395,813 $85,902,082 Unassigned-Unrealized Gains 8,453,240 8,453,240 8,453,240 Unassigned (Available)58,025,611 62,053,029 77,448,842 TOTAL RESERVES $190,649,224 $178,553,217 $7,779,846 $718,121 $8,497,967 $187,051,184 1195 1196 Fiscal Year 2021-22 Budget Update June 2021 1197 3 Fiscal Year 2021-22 Table of Contents 1. TABLE OF CONTENTS 1198 4 Fiscal Year 2021-22 Table of Contents Table of Contents Contents 1. TABLE OF CONTENTS ............................................................................................................................................................................................. 3 Table of Contents .............................................................................................................................................................................................................. 4 2. FUNDS SUMMARY ..................................................................................................................................................................................................... 6 Overview of Revenue ......................................................................................................................................................................................................... 7 Revenue Overview by Fund ............................................................................................................................................................................................... 8 Overview of Expenditures ............................................................................................................................................................................................... 11 Operating Budget Overview ............................................................................................................................................................................................. 13 Overview of Fund Balances ............................................................................................................................................................................................. 15 3. GENERAL FUND SUMMARY ................................................................................................................................................................................. 22 General Fund Operating Summary ................................................................................................................................................................................... 23 General Fund Reserves .................................................................................................................................................................................................... 26 4. FIDUCIARY FUNDS ................................................................................................................................................................................................. 28 Dublin Crossing Bond Series 2015-1 (Fund 5102) ............................................................................................................................................................ 29 Fallon Village Geologic Hazard Abatement District (5301) .............................................................................................................................................. 30 Schaefer Ranch Geologic Hazard Abatement District (5302)............................................................................................................................................ 31 Fallon Crossing (North Tassajara) Geologic Hazard Abatement District (5321) ............................................................................................................... 32 CERBT (OPEB) Trust Fund (Fund 5171) ........................................................................................................................................................................ 33 5. STRATEGIC PLAN .................................................................................................................................................................................................... 34 Adopted Strategic Plan ..................................................................................................................................................................................................... 35 6. APPENDIX ................................................................................................................................................................................................................ 38 Historical Comparison of Revenues ................................................................................................................................................................................. 39 Historical Comparison of Expenditures ........................................................................................................................................................................... 47 1199 5 Fiscal Year 2021-22 Table of Contents Position Allocation Plan ................................................................................................................................................................................................... 50 Fiscal Year 2021-22 Appropriations Limit ........................................................................................................................................................................ 59 1200 6 Fiscal Year 2021-22 Funds Summary 2. FUNDS SUMMARY 1201 7 Fiscal Year 2021-22 Funds Summary Overview of Revenue REVENUE SUMMARY BY FUND TYPE 1202 8 Fiscal Year 2021-22 Funds Summary Revenue Overview by Fund 1203 9 Fiscal Year 2021-22 Funds Summary 1204 10 Fiscal Year 2021-22 Funds Summary REVENUE BY FUND HIGHLIGHTS: 1205 11 Fiscal Year 2021-22 Funds Summary Overview of Expenditures EXPENDITURES OVERVIEW BY CATEGORY 1206 12 Fiscal Year 2021-22 Funds Summary EXPENDITURES OVERVIEW BY CATEGORY 1207 13 Fiscal Year 2021-22 Funds Summary Operating Budget Overview 1208 14 Fiscal Year 2021-22 Funds Summary EXPENDITURES BY CATEGORY HIGHLIGHTS: 1209 15 Fiscal Year 2021-22 Funds Summary Overview of Fund Balances SUMMARY BY FUND TYPE Note: Fund Balance is equal to the difference between assets and liabilities in a fund. It should not be confused with spendable cash. As an example, the Affordable Housing Fund has a projected Fund Balance of $23.8 million in FY 21-22; of that amount, $15.4 million is in the form of loans to affordable housing projects. 1210 16 Fiscal Year 2021-22 Funds Summary FISCAL YEAR 2020-2021 FUND BALANCE PROJECTIONS 1211 17 Fiscal Year 2021-22 Funds Summary FISCAL YEAR 2020-2021 FUND BALANCE PROJECTIONS 1212 18 Fiscal Year 2021-22 Funds Summary FISCAL YEAR 2020-2021 FUND BALANCE PROJECTIONS 1213 19 Fiscal Year 2021-22 Funds Summary FISCAL YEAR 2021-2022 FUND BALANCE PROJECTIONS 1214 20 Fiscal Year 2021-22 Funds Summary FISCAL YEAR 2021-2022 FUND BALANCE PROJECTIONS 1215 21 Fiscal Year 2021-22 Funds Summary FISCAL YEAR 2021-2022 FUND BALANCE PROJECTIONS 1216 22 Fiscal Year 2021-22 General Fund Summary 3. GENERAL FUND SUMMARY 1217 23 Fiscal Year 2021-22 General Fund Summary General Fund Operating Summary OVERVIEW 1218 24 Fiscal Year 2021-22 General Fund Summary GENERAL FUND OPERATING SUMMARY CONTINUED 1219 25 Fiscal Year 2021-22 General Fund Summary GENERAL FUND OPERATING SUMMARY CONTINUED 1220 26 Fiscal Year 2021-22 General Fund Summary General Fund Reserves GENERAL FUND FY2021-22 RESERVES 1221 27 Fiscal Year 2021-22 General Fund Summary GENERAL FUND FY2021-22 RESERVES CONTINUED 1222 28 Fiscal Year 2021-22 Fiduciary Funds 4. FIDUCIARY FUNDS 1223 29 Fiscal Year 2021-22 Fiduciary Funds Dublin Crossing Bond Series 2015-1 (Fund 5102) 1224 30 Fiscal Year 2021-22 Fiduciary Funds Fallon Village Geologic Hazard Abatement District (5301) 1225 31 Fiscal Year 2021-22 Fiduciary Funds Schaefer Ranch Geologic Hazard Abatement District (5302) 1226 32 Fiscal Year 2021-22 Fiduciary Funds Fallon Crossing (North Tassajara) Geologic Hazard Abatement District (5321) 1227 33 Fiscal Year 2021-22 Fiduciary Funds CERBT (OPEB) Trust Fund (Fund 5171) 1228 34 Fiscal Year 2021-22 Strategic Plan Update 5. STRATEGIC PLAN 1229 35 Fiscal Year 2021-22 Strategic Plan Update Adopted Strategic Plan City of Dublin Strategic Plan Adopted on May 5, 2020/Updated August 2020 1230 36 Fiscal Year 2021-22 Strategic Plan Update STRATEGIES 1231 37 Fiscal Year 2021-22 Strategic Plan Update 1232 38 Fiscal Year 2021-22 Appendix 6. APPENDIX 1233 39 Fiscal Year 2021-22 Revenue Comparison Historical Comparison of Revenues REVENUE COMPARISON 1234 40 Fiscal Year 2021-22 Revenue Comparison 1235 41 Fiscal Year 2021-22 Revenue Comparison 1236 42 Fiscal Year 2021-22 Revenue Comparison 1237 43 Fiscal Year 2021-22 Revenue Comparison 1238 44 Fiscal Year 2021-22 Revenue Comparison 1239 45 Fiscal Year 2021-22 Revenue Comparison 1240 46 Fiscal Year 2021-22 Revenue Comparison 1241 47 Fiscal Year 2021-22 Expenditures Comparison Historical Comparison of Expenditures EXPENDITURE COMPARISON BY DEPARTMENT 1242 48 Fiscal Year 2021-22 Expenditures Comparison 1243 49 Fiscal Year 2021-22 Expenditures Comparison 1244 50 Fiscal Year 2021-22 Position Allocation Plan Position Allocation Plan FY 2021-22 POSITION ALLOCATION PLAN SUMMARY BY DEPARTMENT 1245 51 Fiscal Year 2021-22 Position Allocation Plan 1246 52 Fiscal Year 2021-22 Position Allocation Plan FY 2021-22 POSITION ALLOCATION PLAN CITY POSITIONS 1247 53 Fiscal Year 2021-22 Position Allocation Plan 1248 54 Fiscal Year 2021-22 Position Allocation Plan 1249 55 Fiscal Year 2021-22 Position Allocation Plan 1250 56 Fiscal Year 2021-22 Position Allocation Plan 1251 57 Fiscal Year 2021-22 Position Allocation Plan FY 2021-22 POSITION ALLOCATION PLAN CONTRACT POSITION 1252 58 Fiscal Year 2021-22 Position Allocation Plan 1253 59 Fiscal Year 2021-22 Appropriations Limit Fiscal Year 2021-22 Appropriations Limit (Based on Fiscal Year 2020-21 Limit Adopted by City Council Resolution No. 46-20) The Gann Limit, or Proposition 4 Limit, was a 1979 amendment to the California constitution sponsored by political activist Paul Gann in 1979 on the heels of his property tax-reducing Proposition 13 initiative passed the prior year. The Gann Limit was designed to regulate state and local spending by linking the rate of appropriation growth to a statewide index. In accordance with Chapter 1025 of the statutes of 1987, as amended, each government entity is required to include the Appropriations Limit in the annual budget. The City of Dublin has calculated a Fiscal Year 2021-22 limit in accordance with Article XIII B of the California Constitution and the recognized methodology for calculating adjustments. The details of this calculation are shown on the following page. The Appropriations Limit does not apply to all funds appropriated by the City Council. State law limits only the appropriations that are funded by “proceeds of taxes,” which are narrowly defined. The law also establishes a formula to be used to calculate annual adjustments to the limit using a combination of two factors selected by the agency. The first factor is based on changes in population. Agencies may either select the change in the city population or the change in county population. For Fiscal Year 2021-22 the City of Dublin population change is a decrease of 0.26% which is smaller than the Alameda County population decrease of 0.37% (based on the Price and Population Information provided by the California Department of Finance). Therefore, the adjustment calculation uses the City of Dublin population change. The second factor allows the City to use either 1) the increase in the State per capita personal income, or 2) the change in local assessed valuation based on changes in the “Non-residential New Construction.” The change in the per capita personal income as provided by the Department of Finance is 5.73%. The change in the assessed valuation compares the total change in assessed valuation to the amount related strictly to non- residential improvements, in March 2021, the Alameda County Assessor provided data related to Fiscal Year 2020-21 changes in assessed valuation attributable to Non-residential New Construction, there is no change at the time of the report. Therefore, the City of Dublin elected to use the change in the State per capita personal income. The two factors discussed above are combined to arrive at a growth rate for appropriations, which is then applied to the prior year to arrive at a limit for the new budget year. The City of Dublin’s Fiscal Year 2021-22 Appropriations Limit is $419,772,690, as shown on the following page, while the Fiscal Year 2021-22 Budget contains appropriations of $78,718,073 that would be categorized as funded by proceeds of taxes. Therefore, the City’s appropriations subject to the Gann Limit are $341,054,617 below the allowed amount calculated for Fiscal Year 2021-22. 1254 60 Fiscal Year 2021-22 Appropriations Limit CALCULATION OF FISCAL YEAR 2021-22 APPROPRIATIONS LIMIT (Based on Fiscal Year 2020-21 Limit) A.Selection of Optional Factors 1.Change in Population – City vs. County. Factors 1/1/2021 1/1/2020 % Increase a. City of Dublin 63,837 64,003 -0.26% b. County of Alameda 1,654,975 1,661,183 -0.37% The City selected Factor 1a. City of Dublin population change -0.26% 2.Change in State per Capita Personal Income vs. City Non-Residential Building Construction. Factors % Change a.Change in State per capita personal income 5.73% b.Change in non-residential assessed valuation 0.0% The City selected Factor 2a. Change in State per capita personal income 5.73% B. FY2021-22 Growth Adjustment Factor Calculation of factor for FY2021-22 = X*Y = 0.9974*1.0573 = 1.0546 X = Selected Factor #1 + 100 = -0.26+100 = 0.9974 100 100 Y = Selected Factor #2 + 100 = 5.73+100 = 1.0573 100 100 C.Calculation of Appropriations Limit Fiscal Year 2020-21 Appropriations Limit $398,039,721 Fiscal Year 2021-22 Adjustment Factor x 1.0546 Fiscal Year 2021-22 Appropriations Limit $419,772,690 1255 June 1, 2021 SB 343 Senate Bill 343 mandates supplemental materials that have been received by the City Clerk’s office that relate to an agenda item after the agenda packets have been distributed to the City Council be available to the public. The attached documents were received in the City Clerk’s office after distribution of the June 1, 2021, Regular City Council meeting agenda packet. Item 6.3 1256 CITY MANAGER’S OFFICE MEMORANDUM DATE: June 1, 2021 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: Item 6.3: Resolution Adopting a Budget for the City of Dublin for Fiscal Year 2021- 22 The June 1, 2021, City Council Meeting includes an item updating the Fiscal Year 2021-22 Budget. Attachment 1, Resolution Adopting a Budget for the City of Dublin for Fiscal Year 2021-22 included an Exhibit A, the Fiscal Year 2021-22 Summary of Appropriations. After the agenda was posted, Staff identified an error in Exhibit A. The following four Governmental Funds were listed twice: City Council, City Manager, City Clerk, and City Attorney; however, included in the Total Governmental Funds once. Therefore, a redlined version of the document (Attachment 1) is attached hereto, removing the duplicating listing of these four Governmental Funds. 1257 Attachment 1 RESOLUTION NO. XX -21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ADOPTING A BUDGET FOR THE CITY OF DUBLIN FOR FISCAL YEAR 2021-22 WHEREAS, the City Council of the City of Dublin desires to establish a Budget for Fiscal Year 2021-22; and WHEREAS, the City Council has reviewed and considered the Budget documents and has received input from the public; and WHEREAS, the City Manager has prepared a balanced budget which provides for organizational adjustments and allocation of resources in a manner which aligns with available resources and the Strategic Plan elements; and WHEREAS, the General Fund Operating Budget is balanced without the need to draw from the Reserve for Economic Stability in order to balance funding with planned expenditures; and WHEREAS, the City Council is required to adopt a budget and financial plan before the Fiscal Year begins on July 1, 2021; and WHEREAS, the Summary of Appropriations (Exhibit A) attached hereto and made part of this Resolution, reflects the Fiscal Year 2021-22 Budget for Governmental and Proprietary Funds for the City of Dublin; and WHEREAS, Human Services grants are presented to the City Council for approval after the preparation of the Proposed Budget and the Summary of Appropriations (Exhibit A) may need to be revised based on the amount approved; and WHEREAS, the City Council desires to confirm adjustments made administratively to the Capital Improvement Project balances during the preparation of the Proposed Budget and accommodate the carryover of unspent Fiscal Year 2020-21 Capital Improvement Project appropriations, for those projects where work and expenditures will continue in Fiscal Year 2021- 22; and WHEREAS, the City Council desires to accommodate a process the carryover of unspent Fiscal Year 2020-21 operating expenditures, both encumbered and unencumbered, excluding personnel costs, for activities where work and expenditures will continue in Fiscal Year 2021- 22; and WHEREAS, The City Council desires to delegate the authority to appropriate Internal Service fund balances that have been set aside for facilities, vehicle, and equipment replacement purposes to the City Manager in Fiscal Year 2021-22. 1258 Attachment 1 WHEREAS, The City Council also desires to delegate the authority to appropriate Committed and Assigned fund balances that have been approved by the City Council for specific purposes to the City Manager in Fiscal Year 2021-22. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby: 1. Adopt the Fiscal Year 2021-22 Budget Appropriation for the City of Dublin, as outlined in Exhibit A plus the final Human Services grants amount approved by the City Council; 2. Authorize the City Manager to make expenditures appropriations in accordance with the Budget as adopted, with the exception of those expenditures which require prior City Council approval, in accordance with the adopted City ordinances, rules and regulations; 3. Authorize the City Manager to transfer budgeted amounts between line items, provided that the transfer is within the same fund, regardless of the specific department activity. This includes the authority to transfer from the General Fund budgeted contingency amounts that are approved by the City Council during the budget adoption. A full accounting of any such transfers will be provided to the City Council during the quarterly financial reviews; 4. Recognize that the Budget as presented also includes a Contingency for Fiscally Responsible Adjustments, the utilization of which will be determined by fiscal outcomes of June 30, 2021; 5. Authorize the City Manager to increase revenue and expenditure budget for various departmental functions, when corresponding revenues comes in over budget: this would apply to developmental activity, inspection activity, recreation program activity, and any other departmental activity which generates correlating revenues, as verified by the Administrative Services Director. Increased appropriations shall continue to be documented in the financial records and conveyed to the City Council as part of the quarterly financial reviews; 6. Authorize the City Manager to increase revenues and expenditures related to the award of grants, where there is no net impact to the City, as verified by the Administrative Services Director. Increased appropriations shall continue to be documented in the financial records and conveyed to the City Council as part of the quarterly financial reviews; 7. Authorize the City Manager to make transfers among the various funds, consistent with the “Fund Balances FY 2021-22” as presented in the Proposed Budget. Fund transfers are reported as part of the regular financial reports provided to the City Council; 1259 Attachment 1 8. Authorize the City Manager to increase the appropriations for Fiscal Year 2021-22 expenditures in an amount not to exceed the amount of funds encumbered or designated by the City Manager as needed for expenses that did not occur prior to the year-end, but are expected to be expended in Fiscal Year 2021-22 consistent with the original purpose. This ability to carry-over funding shall not apply to savings from personnel services and shall only occur if the Department Activity total for non-personnel expenditures was less than the amount budgeted for the same. This must also be evaluated on a fund by fund basis. The actual amount of the increased appropriation shall be reported to the City Council, and the City Manager may assign the fund balance in an amount sufficient to account for the increase; 9. Authorize the City Manager to adjust the Fiscal Year 2021-22 appropriations to account for the carryover of unspent Capital Improvement Project appropriations from Fiscal Year 2020-21. All such adjustments shall be clearly recorded in the City financial records and shall only be for projects that remain incomplete as of June 30, 2021; and 10. Authorize the City Manager to transfer funds between capital projects, within the same funding source. Any revisions, which alter the project’s budget by adding a new funding source, are to be approved by the City Council. 11. Authorize the City Manager to appropriate funds from Committed and Assigned fund balances that have been approved by the City Council for specific purposes. 12. Authorize the City Manager to appropriate funds from Internal Service Funds that have been set aside for facilities, vehicle, and equipment replacement purposes. PASSED, APPROVED AND ADOPTED this 1st day of June 2021 by the following vote: AYES: NOES: ABSENT: ________________________________ Mayor ATTEST: ____________________________ City Clerk 1260 Attachment 1 EXHIBIT A FISCAL YEAR 2021-22 SUMMARY OF APPROPRIATIONS (Governmental and Proprietary Funds) OPERATING PROGRAMS APPROPRIATIONS Governmental Funds City Council $521,831 City Manager $4,156,137 City Clerk $623,288 City Attorney $987,780 Administrative Services $3,578,313 City Attorney $987,780 City Council $521,831 City Clerk $623,288 City Manager $4,156,137 Community Development $6,057,463 Fire Department $15,599,988 Non-Departmental $19,023,813 Police Department $25,754,580 Parks & Community Services $8,328,487 Public Works $17,678,523 Total Governmental Funds $102,310,203 Proprietary Funds Information Services $2,165,002 Parks & Community Services $24,241 Non-Departmental $1,299,951 Total Proprietary Funds $3,489,194 Total Operating Programs $105,799,397 CAPITAL IMPROVEMENT PROGRAMS General $6,991,969 Public Art $544,700 Parks $7,933,216 Streets $5,687,686 Total Capital Improvement Programs (1) $21,157,571 (1) Includes City funded project costs only 1261 FY 2021-22 Budget Update June 1, 2021 ITEM 6.3 1262 Presentation Overview •Background •Citywide Funds •General Fund •10-Year Forecast •Recommendations 1263 Background •Biennial budget process •FY 21-22 is an Update Year o Comparison to FY 20-21 Amended Budget •Focus on General Fund •No major changes in other funds except o American Rescue Plan Act –Fed COVID -19 Aid o One-time grants 1264 Background •Preliminary Budget presented on April 20 •No changes since then, with these exceptions: •Sales Tax Revenues decreased $600,000 •Add 1 Recreation Coordinator –$0 net impact •10-Year Forecast –balanced through FY 27-28 1265 Citywide Summary FY 20-21 Amended FY 21-22 Update $ Change % Change Revenues Governmental Funds $122,586,552 $130,289,668 $7,703,116 6.3% Internal Service Funds $5,211,971 $5,224,760 $12,789 0.2% Total $127,798,523 $135,514,427 $7,715,904 6.0% Expenditures Governmental Funds $107,967,536 $102,310,203 ($5,657,333)-5.2% Internal Service Funds $6,935,111 $3,489,194 ($3,445,917)-49.7% CIP $81,550,317 $21,157,571 ($60,392,746)-74.1% Total $196,452,964 $126,956,968 ($69,495,996)-35.4% Ending Fund Balance Governmental Funds $229,138,445 $234,980,339 $5,841,894 2.5% Internal Service Funds $56,767,300 $59,482,866 $2,715,566 4.8% Total $285,905,745 $294,463,205 $8,557,460 3.0% 1266 GF Revenues Revenues -Net Increase $4.2M •Property Tax +$2.4M •Sales Tax +$933K •Development Revenue: +$527K •Charges for Services +$882K •Interest -$400K 1267 GF Expenditures Expenditures -Net Increase $1.7M •Personnel Costs +$1.8M •Contract Services +$558K •Capital Outlay -$1.1M 1268 Transfers Out Transfers Out/Contributions -$6.0M •Contribution to PERS Unfunded Liability -$1.0M •Transfers Out to ISF -$1.0M •Transfers Out to CIP -$4.0M o Committed/Assigned = $1.6M o Undesignated = $2.4M 1269 GF Reserves Operating Surplus $14.5M Increase in GF Reserve $8.5M FY 2020-21 Amended FY 2021-22 Update $ Change % Change Revenues $94,153,039 $98,397,780 $4,244,741 4.5% Expenditures (Excludes FY 19-20 carryover) 82,258,952 83,917,863 1,658,911 2.0% Ongoing Operating Budget Impact $11,894,087 $14,479,917 $2,585,830 21.7% Carryovers from Prior Year 2,135,147 Contribution to OPEB/PERS/ISF 4,000,000 2,000,000 Net Transfers In/Out 17,758,948 3,981,950 Total Reserves, End of Year $178,553,217 $187,051,184 $8,497,967 4.8% 1270 10-Year Forecast (10,000) 10,000 30,000 50,000 70,000 90,000 110,000 130,000 150,000 21-22 22-23 23-24 24-25 25-26 26-27 27-28 28-29 29-30 30-31 Other Revenue Charges for Svcs Intergov Rentals & Leases Interest Fines & Penalties Lic. & Permits Other Taxes Development Sales Tax Property Taxes Total Exp Operating Deficit FY 28-29 1271 Recommendation Adopt the following: •Resolution Adopting a Budget for the City of Dublin for Fiscal Year 2021-22 •Resolution Establishing a Salary Plan for Full-Time Personnel in Accordance with the Personnel Rules •Resolution Establishing a Salary Plan for Management Positions Exempt from Competitive Service 1272 Questions? 1273