Loading...
HomeMy WebLinkAboutTC Agd Pkt 2012-06-06 (2)TOWN OF TIBURON T, PRELIMINARY MUNICIPAL BUDGET PLAN FiSCAL YEAR 2012-13 PRESENTED TO MAYOR JIM FRASER VICE MAYOR EMMETT O' DONNELL COUNCILMEMBER RICHARD COLLINS COUNCILMEMBER ALICE FREDERICKS COUNCILMEMBER FRANK DOYLE PREPARED BY MARGARET A. CURRAN, TOWN MANAGER HEIDI BIGALL, DIRECTOR OF ADMINISTRATIVE SERVICES PRESENTED JUNE 65 2012 Table of Contents Town Manager's Budget Letter PUBLIC WORKS Town Organization Chart 1 All Divisions Directory of Town Officials 2 Administration & Engineering Town Council, Commission and Board Members 3 Streets Maintenance Parks Maintenance Corporation Yard FUND RESOURCES OVERVIEW Street & Signal Light System Overview of Total Appropriations 5 Cypress Hollow Special District Statement of Fund Balances 6 Changes to Fund Balances 7 NON-DEPARTMENTAL All Divisions OPERATING BUDGET PLAN Risk Management/Joint Power's Authorities Overview of Operating Revenues & Expenditures 9 Low-Moderate Income Housing Town Owned Housing OPERATING REVENUES & SOURCES OF FUNDS Belvedere-Tiburon Library Agency Overview of Operating Revenue Plan 11 Summary of Operating Revenues 12 CAPITAL OUTLAY & ALLOWANCE Operating Budget Revenues 13 Planned Capital Outlay Purchases Planned Technology Outlay Purchases OVERVIEW OF OPERATING EXPENDITURES Overview of Operating Expenditure Plan Summary of Department Expenditures Summary of Funding for Department Expenditures Summary of Expenditures by Object DEPARTMENT OPERATING EXPENDITURES 17 CAPITAL IMPROVEMENT PROGRAM 18 Overview of Planned Funding 19 Streets Improvement Program 20 Drainage Improvement Program Community Improvement Program Five-Year Capital Improvement Program TOWN ADMINISTRATIVE SERVICES All Divisions Administrative Services Legal Services Legislative Support Town Hall Facility COMMUNITY DEVELOPMENT All Divisions Planning & Design Review Building Inspection Advance Planning 22 23 24 26 27 29 30 32 34 POLICE DEPARTMENT All Divisions 36 Police Services 37 Police Facility/EOC 40 DEBT SERVICE PROGRAM Principal, Interest & Fiscal Fees Bond Issue Information SUPPLEMENTAL INFORMATION Assessed Value of Property Assessor's Parcel Data Town Staffing (2010 - 2013) 42 43 45 47 48 49 50 52 53 54 55 56 58 59 61 62 63 64 65 67 68 70 72 74 TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 Date: June 6, 2012 To: Mayor and Town Council From: Peggy Curran, Town Manager Subject: Fiscal Year 2012-13 Proposed Municipal Budget Plan INTRODUCTION I am pleased to present the proposed Fiscal Year 2012-13 Municipal Budget Plan. It represents Staff's best effort at projecting revenues and expenditures for the coming year within the guidelines set by the Council and with great assistance from the Town Council Budget Committee of Mayor Fraser and Councilmember Fredericks. As presented, your budget is balanced. No new programs or service enhancements are proposed for next year, so it essentially represents status quo revenues and spending. The Town's financial situation remains strong. At the end of Fiscal Year 2012-13, the Town anticipates an operating surplus of $73,481. We will begin the year with an estimated $16.9 million in total fund resources. The proposed budget allows the Town to continue to provide the residents with exceptional municipal services, the maintenance of Town infrastructure and the completion of two significant community projects which have been in the planning for several years now. The Town of Tiburon has enjoyed a fiscally sound balance of revenue and expenditures for several decades. The Council's focus has been to operate within its means while maintaining basic services. Since incorporation, the Town has been fortunate in that it has not had to borrow funds for operations or use restricted reserves to fund personnel. Additionally, the Town maintains sufficient reserves should it need to weather another fiscal crisis or suffer a natural disaster. The Town's long-term fiscal conservatism has allowed it to weather the significant economic downturn that began five years ago. Since Fiscal Year 2007-08 operating revenues have declined by $769,001, based on revenue estimates for the fiscal year ending June 30, 2012. In response, Staff began reducing revenue projections and expenditures in FY 2007-08. Staffing has been reduced by approximately 5% (2.6 FTE "full time equivalent") through attrition and restructuring, and several employee contract changes were negotiated to realize immediate and substantial budget savings and to reduce long-term liabilities. Tiburon Town Council June 6, 2012 Page 2 of 7 This fiscal year we have begun to experience a,slow recovery of revenues. We believe it is likely that Fiscal Year 2010-11 will have been the bottom of the downward revenue trend. Staff is projecting overall operating revenues to increase by 3.86% over the current year's adopted budget. We believe we should treat the current economic recovery as fragile, however, and not be overly optimistic in our projections lest the greater economy suffer another downturn, For that reason and in our general abundance of caution, Staff recommends the Town continue its pattern of conservative revenue forecasts. Operating expenditures are proposed to increase by 2.93% over the current year's adopted budget. This increase is a combination of negotiated salary and benefit increases, fully funding the Town's capital Equipment Replacement Program, and increases in Joint Power Agency dues or fees that the Town has no control -over. BUDGET OVERVIEW With every budget we define a few terms to allow a better understanding of the document. The Operating Budget includes all of those programs that involve ongoing costs associated with running the Town. These include personnel, services and supplies, as well as certain minor capital equipment purchases. The Capital Budget includes programs or projects that result in long term physical improvement for the community. These projects are typically funded through the Town's restricted funds and designated reserve funds. Examples include street paving, installation of sidewalks and park or facility improvements. The Overall Budget is comprised of all funding sources for operations. Included here are restricted funds from other governmental sources for specific uses (e.g., grant funding) and Town Council adopted fees that must be used for specific purposes (e.g., long range planning fee for the purpose of updating the General Plan). The overview below compares the current adopted budget to that proposed for FY 2012-13. Overall Operating Budget General Fund Operating Budget 2011/12 2011/12 2012/13 % 2011/12 2011/12 2012/13 % Adopted Estimated Proposed Change Adopted Estimated Proposed Chan e Revenues $8,558,731 $8,863,787 $8,882,981 3.86% $6,949,003 $7,300,586 $7,262,739 4.15% Expenditures $8,558,731 $8,333,739 $8,809,500 2.93% $6,949,003 6,700,538 7,189,258 3.46% Tiburon Town Council June 6, 2012 Page 3 of 7 FINANCIAL HEALTH OF THE TOWN The Town's overall financial health remains strong. We continue to provide high- quality services to our residents while showing a 11,888;888 small operating surplus. We find ourselves in this 10;so0;0o0 desirable position due to prudent fiscal 8; 1:81 management, both presently and historically. ;8881888 08;8° 8'8 General Fund Reserves While operating surpluses experienced 0 s80 080 prior to the economic downturn have ebbed, the ,0 0,0 0 h \t% po Town still continues to have sufficient General ryoo ti~ ,yoo ti~ ryoo ti4p Fund Reserves. We continue to maintain our Council policy-driven General Fund Operating ,Po','' ryo~ti~ Reserve at 25% of expenditures, along with several other General Fund policy restricted and discretionary set-asides. We will begin Fiscal Year 2012-13 with approximately $5.27 million in our General Fund policy restricted reserves and an additional $5.85 million in General Fund discretionary set-asides for a total of $11.12 million. In addition, the Town begins the fiscal year with $5.79 million in restricted fund revenues. Before the economic downturn, the Town was been able to rely upon large annual General Fund year-end operating surpluses to replenish reserves, but this has not been the case for some time. Consequently, current capital spending plans will impact future spending options absent a significant turn-around in revenues. Of course, we will continue to strive for year- end surpluses to build reserves, and a measured, thoughtful capital spending program for community benefit remains within our grasp. The chart above presents a history of total General Fund reserves. As presented, the Fiscal Year 2012-13 budget calls for spending down General Fund Discretionary Reserves by nearly $3 million in capital improvement projects, largely for the new recreation facility and Lyford Drive parking lot (much of this expenditure was budgeted in the current year but not expended so is reappropriated in the new budget). During Fiscal Year 2011-12, the Town Council authorized the payoff of the Town's Ca1PERS side- funds with General Fund Unallocated Reserves. As directed by Council, the Operating Budget will repay the reserves until the entire $650,000 has been replenished. Paying off the side-funds has eliminated the 7.75% interest rate that was being charged by CalPERS to amortize the liability. The Town is fortunate that its balanced operating plan currently does not require any reductions in workforce and cuts in services that many other jurisdictions have had to endure. I must also give special thanks to the Town's employees who have been willing to make salary and benefit concessions over the past several years to enable the Town to maintain a balanced budget throughout these challenging times. Tiburon Town Council June 6, 2012 Page 4 of 7 CHANGES TO MUNICIPAL BUDGET PLAN Revenues For Fiscal Year 2012-13, Staff projects overall operating revenues to increase by 3.86%, or $324,250, compared to the adopted FY 2011-12 budget. General Fund Operating Revenues are projected to increase 4.15%, or $313,736. To put this into perspective, if Staff's projected revenues for FY 2012-13 hold true, the Town will have experienced a 10.0%, or $859,522 in General Fund revenue loss since the high in FY 2007-08. Staff anticipates that the economic recovery that has been 2012113 Proposed Budget General Fund Revenues $7,262,739 Licenses & Permits % Intergovernmental- 1 Charges for Services 4% Other Revenues Investment I 1% Fines & F 2' Property Taxes 57% underway will continue through FY Other Taxes 2012-13. Per a State determination, assessed property valuation will increase by the maximum allowable under Proposition 13, which will have the positive effect of a 2% increase in secured property taxes. ERAF property taxes are expected to decline by 7.2% from this year's adopted budget. Overall, Staff is anticipating all sources of property taxes to increase 3.1 % over the adopted FY 2011-12. Property tax receipts have historically been the Town's "bread and butter" revenue, representing approximately 57% of General Fund Operating Revenues for FY 2012-13. The housing market appears to have reached its bottom in prices; this is expected to have a continued positive effect on property taxes as homes are reassessed upwards upon transfer. The pie chart above shows the breakdown by revenue category of the projected FY 2012-13 General Fund Operating Revenues of $7,262,739. The category of Other Taxes, which includes sales, property transfer and transient occupancy taxes, is projected to increase by 13.8% over this year's adopted budget. These increases are based on actual receipts the Town is experiencing from these sources. Franchise Fees are anticipated to increase 13.1 % over the adopted FY 2011-12 budget due to the increased Franchise Fee negotiated with Mill Valley Refuse Service last June. Investment Earnings are projected to decrease by 14.7% due to low interest earnings and the reduction of invested funds during the year as we pay for capital improvement projects. Tiburon Town Council June 6, 2012 Page 5 of 7 Intergovernmental Revenue is proposed to decrease 37.7% over the adopted FY 2011-12 budget due to the elimination of the payment of Vehicle License Fees from the State. This projection accounts for a $25,000 loss. As of this date, the State of California is faced with a projected $16 billion deficit. The State's ability to take certain revenues from the Town is limited by Proposition IA. In FY 2009-10 the State suspended Proposition 1 A, allowing it to "borrow" 8% of the Town's secured property tax receipts. The State is unable to borrow property tax revenues in FY 2012-13. Based on the Governor's May Revise, it is not anticipated that the State will take any additional revenue from the Town. As proposed, the FY 2012-13 budget includes State funding for the Citizens Option for Public Safety (COPS) grant. Expenditures Overall operating expenditures are projected to increase by 2.93%, or $250,769, over the adopted FY 2011-12 budget. General Fund operating expenditures are proposed to increase by 3.46%, or $240,255. There are no Staff or service level changes proposed for FY 2012-13. Approximately $110,000 of the increased expenditure is related to salary and benefit increases. These increases partially return Staff to their fiscal position prior to the requirement made several years ago that employees pay 100% of their share of PERS costs, an effective average pay reduction of 4%. Police dispatching services, which are provided by the County of Marin, will increase $30,000 over current costs. In order to balance the FY 2011-12 Operating Budget, Capital Equipment and Technology depreciation allowances were budgeted at 80% of normal. Staff has increased these allocations back to full funding, which represents a $35,000 increase in appropriations over FY 2011-12. The remaining expenditure increases are due primarily to increases in JPA dues and other costs that the Town has little control over. Beginning in FY 2012-13, each department has a new expenditure line item entitled "CaIPERS Side Fund Repayment". This amount represents the difference between what the Town is required to pay as an employer to CaIPERS and what the Town would have been paying had we not paid off the side-funds in November 2011. The amount budgeted for each department will Fiscal Year 2012-13 be transferred into a new General Expenditures by Department Fund Reserve until the original $3OWo $650,000 is repaid. The bar chart below shows $2,500,0 the FY 2012-13 Operating Budget $2,000,0 by department. Further clarification of department $1,500,0 expenditure variations are explained below. $1,OW'° The Administrative Services Department's overall budget is proposed to increase by 2.9% or $40,992 over the current year. M ToW ■ General Fund Administrative Services Non-DepaAmenlat Community Deielopment Police Depervnenl PUNIC Works 6 Engineering Tiburon Town Council June 6, 2012 Page 6 of 7 The Administration Division is proposed to increase by 3.9%. Staff is proposing $15,000 in the Professional Consultant line item for an Organizational and Operational Review of the Department. $3,000 is being appropriated to have personnel records dating back to 1964 digitized from it current micro film format. The Legal Services Division is proposed to decrease by 0.27%. This is due to reducing contractual service in anticipation of returning to a more normal spending pattern for litigation and related expenses. The Legislative Support Division's total appropriation is being increased by $2,000. This is based on estimated expenditures for the current year. There are no notable changes recommended to the Town Hall Facility Division. The Community Development Department budget is proposed to increase by 2.47%, or $24,510. Additional funding of $7,500 is proposed in contractual services in anticipation of costs associated with processing the Soroko development. All other appropriations are mainly status quo. The Police Department budget is projected to increase by 3.33% or $94,385. This increase is due to the previously mentioned $30,000 increase in Dispatching Services, and an increase of $8,000 in Records Management Fees paid to the County. The remaining increases are due to fully funding the equipment allowances ($18,000) and salary and benefit increases. The Public Works Department budget is proposed to increase by 3.15% or $39,904 over last year. Fully funding the equipment allowances adds an additional $8,500. Staff is recommending an appropriation of $7,500 for causal hire. All other line items remain relatively status quo. The Non-Departmental budget is proposed to increase 2.49% or $50,977 in FY 2012-13. Expenses in the Non-Departmental budget relate to insurance premiums (workers compensation, liability, and property), Joint Power Agreements, Town-owned housing units and the Belvedere-Tiburon Library Agency property tax pass-though. The Town has very little control over most expenses in this budget. Infrastructure Improvements and Capital Projects The FY 2012-13 Capital Improvement Program (CIP) budget is a significant undertaking due to several large projects becoming ripe for construction in FY 2012-13. As proposed the overall CIP program totals $6.42 million. Community CIP projects total $5.2 million and includes completion of the Del Mar Valley utility undergrounding project, the Ned's Way recreation facility and the Lyford Drive parking lot project. Also included are several smaller projects associated with the downtown revitalization report, and other ongoing park, streets, drainage and facility maintenance projects. During the past several years street resurfacing was a Council priority. In FY 2012-13 Staff is appropriating $1.1 million for reconstruction and overlay of streets in the Del Mar undergrounding district. This will complete the reconstruction of all "failed" streets identified ion the mid-2000s. It is anticipated that going forward the Town will need to expend $750,000 per year to maintain its street infrastructure at its current level. Tiburon Town Council June 6, 2012 Page 7of7 The FY 2012-13 Capital Improvement Budget allocated $100,000 in drainage improvement projects. The Town has limited restricted fund resources to fund drainage improvement projects. It is anticipated in future years the Town will need to appropriate General Fund Reserves to provide adequate funding to maintain the Town's storm drainage system. Included with the budget is a five-year Capital Improvement Program Plan projection. This provides Council and Staff with a glimpse into the future of CIP projects. It should be noted that the Council is not being asked to adopt this five-year outlook, as it will surely shift as needs and resources come into clearer focus. Rather, its purpose is to help anticipate future expenditures and demands on the budget. CONCLUSION The Town Council and community can once again be assured that the Town of Tiburon is financially sound. Additionally, the Town can proudly say that during this long economic downturn, the Town Council and Staff have made the tough decisions to make cuts and concessions that helped us weather the immediate challenges and will only make the Town financially stronger in the years to come. As a result of these policies and decisions, the Town is emerging from the Great Recession more quickly than many other local agencies, and our financial outlook is stable. As always, Town Staff will continue to carefully manage the Town's finances to assure that revenues are collected in a timely manner and that all expenses are scrutinized. Administrative Services Director Heidi Bigall in particular and the entire management team are to be commended for their assistance in developing the Town's Municipal Budget Plan and for their assistance all year long in sound budget stewardship. I also wish to thank the Town Council's Budget Committee, Mayor Jim Fraser and Councilmember Alice Fredericks, for their review, comment and good counsel during the budget preparation process. We look forward to a dialogue with the Town Council on the budget and it its timely adoption for the start of the new fiscal year on July 1, 2012. Town Organization Chart Citizens of Tiburon Town Council Town (Manager Town Town Planning Design Treasurer Attorney Commission Review Board Heritage & Arts Parks, Open Commission Space and Trains Commission Belvedere/ Bel/Tib Tiburon Joint Library Recreation Agency }administration Public Works Police Community Department Department Department Development Department Page-1