city of santa ana fiscal year 2015-2016 … of santa ana fiscal year 2015-2016 proposed budget...

CITY OF SANTA ANA

FISCAL YEAR 2015-2016

PROPOSED BUDGETPRESENTED BY: DAVID CAVAZOS, CITY MANAGER

Miguel

Pulido

Mayor

Vincent

Sarmiento

Mayor

Pro Tem

Ward 1

Michele

Martinez

Ward 2

Angelica

Amezcua

Ward 3

David

Benavides

Ward 4

Roman

Reyna

Ward 5

Sal

Tinajero

Ward 6

JUNE 2, 2015

AGENDA

• City Manager’s Budget & Economic Conditions

Overview

• Trial Budget & Community Budget Hearings

• FY 2014-15 Year-End Projections

• Fiscal Year 2015-16 Proposed Budget

• Capital Improvement Program

• Fiscal Year 2015-16 Adopted Budget Calendar

• Next Budget Calendar Steps

2

CITY MANAGER’S BUDGET

& ECONOMIC OVERVIEW• 8.8% growth in Top 6 Revenue Sources over a 3-Year period

– $147.6M (Projected FY 14/15) vs. $135.6M (FY 12/13)

• 11.5% Sales Tax growth over a 3-Year period


• 17.3% Hotel Visitors Tax growth over a 3-Year period


• Assessed Property Values have increased by 8.5% over a 3-Year period

– $20.4B (FY 14/15) vs. $18.8B (FY 12/13)

• 41.5% growth in Building Valuation


• Unemployment rate has significantly declined

– 5.0% (Mar 15) vs. 13.0% (Mar 09)

3

PO

SIT

IVE

DIR

EC

TIO

N

“Advancing in all key areas”

$3.0

$45.3

$-

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

$55

$60

FY 09-10 FY 14-15 Projected

In M

illio

ns

1,743%

Growth

4

$10.0M

Projected FY

14-15 Surplus

Projected Unassigned Ending

Balance: $55.3M

CITY MANAGER’S BUDGET

& ECONOMIC OVERVIEW

Projected $55.3M Ending Fund Balance at June 30, 2015

Pending Year-End closing & Account Reconciliation: August-October

FY 14-15

PROJECTED YEAR-END SURPLUS

TOTAL GENERAL FUND

5

GENERAL FUNDFY 2014-2015

REVISED BUDGET

FY 2014-2015

PROJECTED

YEAR-END RESULTS

Total Revenues* 208,918,360$ 215,691,000$ 6,772,640$ 3.2%

Total Expenditures* 208,918,360$ 204,684,000$ (4,234,360)$ -2.0%

VARIANCE

Projected Year-End Surplus: $10-$12M

FY 2014-15 Surplus

Council Consideration

• Deferred Maintenance, Capital Improvement and Information Technology

• General Plan/Zoning Code Update and Strategic Visioning/Branding Plan

• Maintain 20% General Fund Reserve level

6

FY 14-15

TOP 6 REVENUE SOURCES

YEAR-END PROJECTIONS

7

REVENUE SOURCEFY 2014-2015

REVISED BUDGET

FY 2014-2015

YEAR-END

PROJECTED RESULTS

Sales Tax* 43,519,000$ 43,583,247$ 64,247$ 0.1%

Property Tax* 29,759,000 30,900,855 1,141,855 3.8%

Property Tax In-Lieu of VLF* 26,801,000 27,620,605 819,605 3.1%

UUT* 24,001,000 25,234,396 1,233,396 5.1%

Business License* 11,300,000 11,326,298 26,298 0.2%

Hotel Visitors Tax* 8,200,000 8,811,133 611,133 7.5%

TOTAL* 143,580,000$ 147,476,534$ 3,896,534$ 2.7%

VARIANCE

“Sales Tax Forecast deserves Bull’s-eye award!”

FY 15-16 BASELINE BUDGET ASSUMPTIONS

• $2.5M for the recurring implementation of the Strategic Plan

• COPS grant 2nd Year allocation

• Additional Planning & Building staff-$1.1M

– 4 Building Inspectors/1Permit Processor-$565k

– 3 Senior Plan Check Engineers/1 Senior Plumbing-Mechanical Systems

Specialist-$600k

• No cuts to programs or services

• Medical Marijuana Dispensaries (MMD) Enforcement Plan

8

• Includes revised annualized health insurance rates of 7% ($12.4 million)

• Includes FY 15-16 actuarial PERS rates:

– Safety: 46.5%

– Miscellaneous: 28.5%

(Total Pension Costs, Safety & Miscellaneous, - $18.8 million)

• Recommended Cost of Living Adjustment to be included in FY 15-16 Budget

– Process Steps:

• Council Approval of Compensation Package

• Determine final compensation & benefits for each bargaining group & associated General Fund Departments

• Amend proposed or amend adopted budget

9

FY 15-16 BASELINE BUDGET ASSUMPTIONS

10

Direct staff to include $2.55 million in

Expenditures & $2.55 million corresponding

revenues in City’s proposed FY 15-16

budget. (Simple majority vote)

Approximately $7.55 million over two fiscal

years 1, 2

1General Fund Only2Pension and Health Insurance costs are

included in proposed FY 15-16 budget

Options

RECOMMENDATION

Recognize expenditures &

revenues after budget

adoption and conclusion of negotiations.

(Requires Appropriations Adjustment &

supermajority vote)

ALTERNATIVE

Non-General Fund salary increases are included

within the proposed FY 15-16 Budget

City Charter Requirement(Santa Ana City Charter)

11

ADHERING TO THE FISCAL POLICY

General Fund Budget Policy Directives:

“It shall be established that a balanced budget will be

presented annually to the City Council for adoption.

A balanced budget will be defined as ongoing

recurring operating revenues matching ongoing

recurring operating expenditures including debt

service.”

“One-time or term specific funding can only be used to

match one-time non recurring expenditures, term

specific projects and programs, as well as capital

expenditures.” 12

13

FY 2015-16 PROPOSED BUDGET

$-

$50

$100

$150

$200

$250

GF Revenue GF Expenditures

Mill

ion

s

Fire Dept.

Police Dept.

Recreation &

Library

All Others*

*Includes Non-Departmental, City Attorney’s Office, Bowers Museum, HR, City Manager’s

Office, Community Development, Clerk of the Council, & Legislative Affairs

Debt ServicePBAPWA

FMSA

Sales Tax

Property Tax

GENERAL FUND BUDGET: $225.15M

Property Tax

In Lieu VLF

Utility Users Tax

Use of Money

Business Tax

Other Rev. & Taxes

Lic., Permits & FinesCh. for Svcs. & Fees

Hot. Vis. Tax

Intergovernmental

Franchise Fees

=BALANCED

BUDGET!!!

Pol

ice

Fire

Par

ks,

Rec

reat

ion

& L

ibra

ry

Oth

er*

Deb

t Ser

vice

Pla

nnin

g

Pub

lic W

orks

Fin

ance

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

*Includes Non-Departmental, City Attorney’s Office, Bowers Museum, HR, City Manager’s Office,

Community Development, Clerk of the Council, & Legislative Affairs

52.4%

18.7%

9.2%6.5%

4.5% 3.9% 2.9% 1.9%

14

FY 2015-16GENERAL FUND PROPOSED BUDGET

FUNDING RECOMMENDATIONS

15

FY 15-16 Trial Budget:

• 7 Police Officers $500k • Safe Mobility Program $500k

• Upgrade of Police Equipment $100k • Council Liaison $140k

• Purchase of Additional Library • Funding to support Econ. Dev.

Materials $200k & Neigh. Improv. $250k

• Expansion of Library Hours $83k • Audit Program $140k

• Zoo Master Plan Development $125k • Funding for Neigh. Assoc. $52k

• City Sponsored Events $140k • Civic Center Capital Projects

• Fields, Lighting & Facilities $150k $225k

• Deferred Maintenance* $400k • Ongoing IT Assessment $150k

• Code Enforcement Technological

Improvements $125k

* Non-General Fund

Trial Budget Adjustments:

•Additional funding to purchase • Additional Recreation Classes

E-books $22k $165k

• Additional funding for Neigh. • Youth Commission $25k

Assoc. $18k • CERT Program/Emer. Mgmt. $65k

• Staffing for Body Camera • Joint Use-Def. Maint. $75k

Program $200k • Removal of Council Liaison $(140k)

Funded by

removal of

Council

Liaison

Continued public input through Community Budget Hearings (April-May)

• Conducted Budget Hearings

– Approx. 150 attendees

– 40+ Speakers/Comment cards

• 38%-Public Safety topics

• 20%-Roadway Improvements/CIP

• 8%-Parks & Recreation topics

• 8%-Funding for deferred maintenance

• 8%-Miscellaneous topics

• 5%-Zoning & ordinance topics

• 5% Orange County Fire Authority

• 5%-Strategic Plan

• 3% Housing topics

16

TRIAL BUDGET & COMMUNITY BUDGET

HEARINGS

“Community Input on Trial Budget”

Funding Recommendations

17

FY 15-16 Proposed Budget:

• 7 Police Officers $500k • Safe Mobility Program $500k

• Upgrade of Police Equipment $100k • Funding to support Econ. Dev.

• Purchase of Additional Library & Neigh. Improv. $250k

Materials $222k • Audit Program $140k

• Expansion of Library Hours $83k • Funding for Neigh. Assoc. $70k

• Zoo Master Plan Development $125k • Civic Center Capital Projects

• City Sponsored Events $140k $225k

• Fields, Lighting & Facilities $150k • Ongoing IT Assessment $150k

• Deferred Maintenance* $400k • Staffing for Body Camera Program 200k

• Code Enforcement Technological • Additional Recreation Classes $165k

Improvements $125k • CERT Program/Emerg. Mgmt. $65k

• Youth Commission $25k • Joint Use-Deferred Maint. $75k

* Non-General Fund

FY 15-16 Deferred Maintenance Projects• Total of $400k allocated for

Deferred Maintenance:

– $130k-Roof restoration of the

Corporate Yard

– $100k-Address various park facility

deferred maintenance

– $60k-Fire station improvements

– $40k-Front door upgrades to be ADA

compliant & exterior painting of the

South West Senior Center

– $40k-Rebuilding of air handler at New

Hope Library

– $30k-Install commercial commodes &

exterior painting of the Corbin Center18

19

CAPITAL IMPROVEMENT PROGRAM

Presented by:

Fred Mousavipour

Executive Director of Public Works

CAPITAL IMPROVEMENT PROGRAM (CIP)

$68,074,534

Street Improvements

$15,979,653

Traffic Improvements

$11,663,000

Utility / Drainage / Lighting

$32,219,849

City FacilityImprovements

$8,212,032

24%

17%47%

12%

Street Improvements


Utility / Drainage / LightingImprovements

City Facilities

20

STREET IMPROVEMENTS

$15,979,653

Planning 4– Projects$1,150,000

Roadway Improvements10 – Projects$12,218,393

Sidewalk/Streetscape 4 – Projects$2,611,260

• Non-Motorized Connectivity

Citywide Study

• Pavement Management

• Project Development

• Right-of-Way Management

• Alley Improvements

• Arterial Preventative Maintenance

• Arterial Street Rehabilitation:

− Bristol: 17th to Santa Clara

− Edinger: Raitt to Pacific

− Fairview: Alton to Segerstrom

− Lawson: Memory to NCL

• Local Preventative Maintenance

• Residential Street Repair

• Warner Industrial Community

Pavement Improvements

• Fairview Bridge and Street

Improvements

• Omnibus Concrete

• Edinger Ave Landscape

Improvements

• Willits Sullivan Community

Beautification

• Non-Motorized Connectivity

Citywide Improvements

21

TRAFFIC IMPROVEMENTS

$11,663,000

Planning6 – Projects

$940,000

Traffic Signal1 – Project$260,000

Mobility/Safety9 - Projects$9,463,000

Streetcar

$1,000,000

• Bike Lane Project

Development

• Citywide Speed Limit Study

• Complete Streets Plans

• Safe Mobility Santa Ana

• Traffic Management Plans

• Traffic Safety Project

Development

• Westminster Ave / 17th

St Corridor Traffic Signal

Synchronization

• Safe Routes to Schools

− Heninger Elementary

− King Elementary

− Monte Vista Elementary

− Washington Elementary

• Bike Lanes - Newhope,

Civic Center & Grand

• Bishop/Pacific/Shelton Bike

Boulevards

• Maple Bike Trail Safety

Enhancements

• South Main Corridor

Improvements

• Continue partnership with

OCTA

• Design Oversight

22

PUBLIC UTILITY / DRAINAGE

IMPROVEMENTS$32,219,849

Sewer Improvements

5 – Projects $4,482,600

Water Improvements

8 - Projects$19,421,630

Facility Improvements

5 – Projects$7,040,000

Street Light Improvement

1 – Project $85,000

Storm Drainage/Water

Quality5 – Projects$1,190,619

• SA-5 MWD Turnout

Vault Relocation

• Segerstrom (San

Lorenzo) Sewer Lift

• S. Station

Perimeter Wall

• Well No. 32

Rehabilitation

• Walnut Pump

Station

• Drainage Master

Plan Supplement

• First St.

Undercrossing Lift

Station

• Residential Catch

Basin Connector

Pipe Screen

Installation

• Santa Ana Delhi

Channel Diversion

• Morrison Park LID

• Perform study

and formulate

plan to perform a

Citywide LED

conversion

• Sewer Main

Improvements

− Columbine

− Warner Industrial

Park

− Parton, Garnsey,

Van Ness, 15th

Streets

• Citywide Sewer

Main Improvements

• Sewer Main Repairs

& Replacements

• Water Main

Improvements

− Bristol Phase 3B

− Warner Industrial

Park

− S. Bristol

• Neighborhood Water

Main Projects

− Centennial

− Riverview

− West Grove

Valley

• Advanced Meter

Infrastructure 23

CITYFACILITIES$8,212,032

Transit Facilities2 – Projects

$958,519

Recreation Improvements

9 – Projects$3,091,583

Park Facilities6 – Projects$2,036,930

Zoo Facilities2 - Projects$2,125,000

• Safe Transit Stops

• SARTC ADA

Improvements

• Amazon’s Edge Giant

River Otter

• Master Plan

• Playground Equipment:

− Centennial Park

− Delhi

− Lillie King

− Madison

− Rosita

− Thornton

• Dan Young Soccer

Complex – Turf

• Pacific Electric Park

Improvements

• Memory Lane & Santa

Ana River Park Site

• Centennial Lake

Circulation Study

• Sandpoint Paseo Security

Lighting

• Santa Ana Stadium

Structural Repairs

• Santiago Park Gas House

Landscape

• Thornton Park Electrical /

Restroom / Lighting

• Plaza Santa Ana

Restroom

24

FEATUREDPROGRAMS

PMP Program$200,000

SMSA Program $780,000

Street Light LED Conversion

$85,000

Warner Assessment

District$6,000,000

• Pavement Management

Program

• Develop Funding Plan to

Eliminate Backlog

− Arterial Street

Backlog: $63 million

− Residential Street


− Industrial Street


• Preserve Funding to

Maintain Improved

Streets

• Safe Mobility Santa Ana

• Address Transportation

System Safety

− Analyze Traffic

Collisions

− Identify Contributing

Factors

− Recommend

Improvements

− Develop Cost Estimates

− Prioritize Improvements

− Fund Initial Projects

• Purchase Street Lights

from SCE

• Finance Through

Reduced Rate Savings

• Replace with LED

• Lower Energy

Consumption and Cost

• More Responsive

Maintenance

• Consistent with PMP

• Creative Financing Option

• Warner Industrial

Community

• Funding Plan for Backlog

on Industrial Streets

25

SAFE MOBILITY

SANTA ANA (SMSA)

$780,000

26

Allocation of Space Reallocation of Space

o $500,000 from General Fund to be allocated for

priority projects identified by the SMSA Study

o Curb extensions at crossing

o Painted and elevated cross walk

o Refuge medians

o Bike lane striping

Example Improvements:

FUTURE OPPORTUNITIES

$721,155,775

Street Improvements$554,379,375


$4,912,000

Utility / Drainage / Lighting

$102,603,500

City Facility Improvements

$59,260,900

• Pavement Rehabilitation

− Alleys

− Arterial Streets

− Neighborhood Streets

− Industrial Streets

• Street / Bridge / Grade

Separation Improvements

& Widening Projects

• Traffic Planning

• Traffic Signal

• Safety / Mobility

• Facility Improvements

• Sewer Improvements

• Water Improvements

• Citywide Storm Drain

Improvements

• Water Quality

Improvements

• Street Light LED

Conversion

• Transit Facilities

• Park Facilities

• Public Safety Facilities

• General Municipal

Facilities

27

October 29, 2014Sunshine Ordinance Budget

February 19, 2015 Com-Link Meeting

March 17, 2015 City Council Meeting Trial Budget & CIP

March 26, 2015 Com-Link CIP Presentation

April 2, 2015Development & Transportation

Committee

April 2, 2015Community Budget Hearing

(Casa de Santiago)

CIP OUTREACH

PLAN

28

April 13, 2015 Planning Commission Presentation


(John Adams Elementary School)

April 23, 2015Com-Link Trial Budget & CIP


(Newhope Branch Public Library)

May 19, 2015 City Council Draft Budget & CIP

May 27, 2015

Community Budget Hearing

June 16, 2015 City Council Final Budget & CIP

29

CIP

PROJECT

TRACKING

December 2, 2014Adopted FY 15-16 Budget Calendar

January 23, 2015-February 17, 2015Departmental Budget Meetings with

Budget Team

February 17, 2015Adopted One-Year Forecast & Four-Year

Projections

March 17, 2015 City Manager’s Trial Budget

Presentation

March 30, 2015Sunshine Ordinance Budget Outreach

April-May 2015Community Budget Hearings

FY 15-16

Adopted Budget

Calendar

30

April, 2015Preliminary Seven-Year CIP presented to

Development & Transportation Committee

May 2015City Council one-on-one Meetings

May 19, 2015City Manager’s Proposed FY 15-16

Budget Work-Study Session

June 2, 2015Tentative Budget/CIP Ordinance

Adoption

June 16, 2015Final Budget/CIP Ordinance Adoption

July 1, 2015

Start of the New Fiscal Year

31

June 16, 2015

Final Budget/CIP Ordinance Adoption

City Council Meeting

July 1, 2015

Budget Implementation

August/October 2015

City Council FY 14-15 Surplus

Study-Session

Next Budget Calendar Steps

city of santa ana fiscal year 2015-2016 … of santa ana fiscal year 2015-2016 proposed budget...

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