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Home My WebLink About050421 - PowerPoint presentation 2021-22 Draft Budget and CIPgat :4:1`# DAINVILLEl The 2021/22 Operating Budget & Capital Improvement Program For the Town of Dill1V1 !It, ;Ind the Successor Agency to the former CDA RENEE MORGAN MAYOR NEWELL ARNERICH VICE MAYOR DAVID FONG COUNCILMEMBER KAREN STEPPER COUNCILMEMBER ROBERT STORER COUNCILMEMBER JOSEPH A. CALABRIGO TOWN MANAGER LANI HA FINANCE MANAGER/TREASURER STEVEN JONES CITY ENGINEER 2021/ 22 BUDGET & CAPITAL IMPROVEMENT PROGRAM DANVILLE CALIFORNIA ACTIONS FOR CONSIDERATION Resolution XX -2021 - Approving the 2021/22 Operating Budget and Appropriation Limit; Resolution XX -2021 -Approving the Five -Year CIP and appropriating funds for 2021/22 capital projects; Resolution XX-2021SA -approving the 2021/21 Operating Budget for the Successor Agency; Resolution XX -2021 - Approving the 2021/22 Master Fee Schedule MANVILLE CALIFORNIA BUDGET & CIP PROCESS Draft Budget and CIP released & posted on Town website on April 29, 2021 Public Study Sessions to consider Draft Budget and CIP on May 4, May 11, May 18 & May 25, 2021 Public Hearing to consider approving 2021/22 Budget and CIP on Tuesday, June 15, 2021 DANVILLE CALIFORNIA PURPOSE OF THE BUDGET & CIP ➢ Establish/review highest priorities for municipal service delivery to meet unique community needs Identify, plan for and fund one-time capital needs DANVILLE CALIFORNIA BUDGET & CIP FORMAT Unchanged from 2020/21 Program pages have been updated, including descriptions, goals and highlights Ten -Year Forecast updated to cover years through 2030/31 Master Fee Schedule updated DANVILLE CALIFORNIA DANVILLE'S VISION iN— . "Small Town Atmosphere, Outstanding Quality of Life" MISSION: DELIVER SUPERIOR MUNICIPAL SERVICES THAT MAKE PEOPLE'S LIVES BETTER We: Keep residents, businesses and property safe Provide well-maintained public facilities y Protect our environment, preserve our history and retain our special character Celebrate the diversity of our Town and value all members of our community Provide opportunities that support residents' growth and enrichment Promote and support economic vitality and growth Represent and promote Danville's best interests Celebrate community through family oriented special events Effectively engage and communicate with residents and businesses DANVILLE CALIFORNIA DANVILLE'S APPROACH =FISCAL SUSTAINABILITY Focus on Vision, Mission & Priorities Combine approaches to deliver service Invest in partnerships and technology Don't borrow... maintain healthy reserves Estimate conservatively DANVILLE CALIFORNIA IMPACTS OF COVID-19 Coronavirus pandemic (March 2020) created immediate and significant impacts for the Town 90% of cities w/populations of 25- 50,000 projected drastic service level impacts 2019/20 Budget was adjusted - revenues & expenses reduced by $2.2 million CALIFORNIA DEPARTMENT OF PUBLIC HEALTH tie CuvervngQ .noe. June 113. 2929 PEOPLE IN CALIFORNIA MUST WEAR FACE COVERINGS WHEN IN A HIGH-RISK SITUATION AND THERE IS AN INABILITY TO MAINTAIN SOCIAL DISTANCING OF 6 FEET FACE COVERINGS REQUIRED IN DOWNTOWN DANVPIIE PLEASE PUT YOUR FACE MASK ON BEFORE ENTERING DOWNTOWN THANK YOU SAFETY AND WELL BEING OF OUR COMMUNITY IMPACT OF COVID-19 (CONT'D) 2020/21 budget process was delayed Town Council needed to consider a range of revenue scenarios; adopted a budget projecting a net $5 million revenue loss Expenditures & transfers were reduced to offset the loss A 2-4 -year economic recovery was forecast Mid -year 2020/21 budget review showed revenues and expenditures tracking better than forecast DANVILLE CALIFORNIA SUMMARY - BUDGET Recommended 2021/22 Budget is balanced Service levels continue to be impacted by COVID-19 - but recovery is underway Healthy operating and capital reserves are maintained Town has no unfunded pension or OPEB liabilities Overall financial condition continues to be positive SUMMARY - CAPITAL IMPROVEMENT PROGRAM Recommend funding 16 capital projects with recommended appropriations of $8.96 without debt Major Projects are Town Office Relocation (8-626), Diablo Road Trail (C-055) and Pavement Management Program (C-610) Estimated available CIP General Purpose fund balance is sufficient to fund currently planned projects for next 5 years General Fund transfers into the CIP sunset by 2028/29 DANVILLE CALIFORNIA 2021/ 22 REVENUE FORECAST 2019/20 2020/21 2021/22 Town Pre -CO VID w/COVID +/- Recovery +/- General Fund $ 26,846,684 $ 23,963,524 -10.7% $ 26,210,144 9.4% Special Revenue $ 9,490,271 $ 8,112,057 -14.5% $ 9,564,022 17.9% Total Town $ 36,336,955 $ 32,075,581 -11.7% $ 35,774,166 11.5% CDA/SA $ 2,280,575 $ 2,279,212 -0.1% $ 2,274,714 -0.2% Grand Total $ 38,617,530 $ 34,354,793 -11.0% $ 38,048,880 10.8% DANVILLE CALIFORNIA TOWN REVENUES 15 Year Average 2021/22 of Total Revenue General Fund 73.00% 73.30% Special Revenue 27.00% 26.70% DANVILLE CALIFORNIA MAJOR REVENUES -GENERAL FUND Property Tax Sales Tax Recreation Fees Franchise Fees All Other TOTAL 2019/20 Pre-COVID $14,505,222 $5,577,220 $2,576,145 $2,326,932 $2,106,165 $27,091,684 2020/21 2021/22 w/COVID +/- Recovery +/- $14,505,222 NC $ 15,200,000 4.8% $4,339,328 -22.2% $ 5,250,000 21.0% $1,351,262 -47.5% $ 1,500,001 11.0% $2,280,969 -2.0% $ 2,222,254 -2.6% $1,486,743 -29.4% $ 2,037,889 37.1% $23,963,524 -11.5% $ 26,210,144 9.4% DANVILLE CALIFORNIA SUMMARY OF GENERAL FUND REVENUE SOURCES FISCAL YEAR 2021/22 TRANSFER TAX 2.5% $65014 SALES TAX 20% $5250K TRANSIENT OCCUPANCY 0.5% $125K CHARLES FOR SERVICES 0.2% $451( BUSINESS LICENSE 1.2% $325K FRANCHISE CABLE 3.1% $800K FRANCHISE GAS 8- ELECTRIC 2.2% $5751( FRANCHISE SOLID WASTE 3.2% $847K VEHICLE LICENSE FEES 0.1% $321( INTERGOVERNMENTAL O% $1K FINES 8- FORFEITS 0.6% $ISOK INTEREST INCOME 13% $329K RENTAL INCOME 0.6% $170K PROPERTY TAXES 58% $15200K Total $26,210,144 MISC. REVENUE 0.8% $210K RECREATION FEES & CHARGES 5.7% $1500K DANVILLE CALIFORNIA MAJOR REVENUES -SPECIAL PURPOSE (RESTRICTED) LLAD Bldg & Planning Gas Tax Measure J RTS Clean Water Solid Waste VIF All Other TOTAL 2019/20 Pre -CO VID $ 3,120,682 $ 2,212,200 $ 1,919,117 $ 815,217 $ 572,700 $ 482,182 $ 384,173 $ 9,506,271 2020/21 w/CO VI D $ 3,129,750 $ 1,787,458 $ 969,080 $ 576,288 $ 572,710 $ 585,000 $ 491,771 $ 8,112,057 NC -19.2% - 49.5% - 29.3% NC 21.3% 28.0% -14.7% 2021/22 Recovery $ 3,129,750 $ 2,153,200 $ 1,664,828 $ 710,139 $ 572,700 $ 846,851 $ 486,554 $ 9,564,022 +- NC 20.5% 71.8% 23.2% NC 44.8% -1.1% 17.9% DANVILLE CALIFORNIA SUMMARY OF TOTAL REVENUE SOURCES FISCAL YEAR 2021/22 PEG FEE 0.2% $82K PS SLESF 0.3% $10oK PS ABANDONED VEHICLE ABATE 0.1% $24K PS ASSET SEIZURE 0% $11( BUILDING Et PLANNING 5.7% $2153K ENGINEERING 0.7% $261K CAS TAX 4.4% $1665K 1M1EASURE J 1.9% $710K �"�—GLEAN WATER 1.5% $5731 LLAD-ZONEA 1.5%v.. LLAD -ZONEB 2% $747K LLAD- ZONE C 1.7% $6641 LLAD-ZONED 3% $11351( GENERAL FUND 68.9% $262101 Total $38,048,880 SUCCESSOR AGENCY RPTTF 6% $2275K SOLID WASTE 2.2% $847K DONATIONS/CONTRIBUTIONS 0% $51( ASSET REPLACEMENT - GENERAL 0% $9K ASSET REPLACEMENT- LIB/CC 0% $5K DANVILLE CALIFORNIA 2021/ 22 RECOMMENDED EXPENDITURES 2019/20 Pre-COVID General Fund $23,852,232 Special Revenue $ 9,743,839 TOTAL TOWN $33,596,071 Successor Agency $ 1,180,575 GRAND TOTAL $34,776,646 2020/21 w/COVID -±L $22,785,838 - $22,785,838 -4.5 % $ 8,192,323 -15.9% $30,978,161 -7.8% $ 1,179,212 -0.1% $32,157,373 -7.5% 2021/22 Recovery -±L $23,300,924 - $23,300,924 2.3% $ 9,949,040 21.4% $33,249,964 7.3% $ 1,174,714 -0.4% $34,424,678 7.1% DANVILLE CALIFORNIA EXPENSE BY DEPARTMENT General Gov't Police Services Admin. Services Dev. Services Maint. Services Rec., Arts, & C.S. TOTAL 2019/20 Pre -CO VID $ 2,082,094 $10,267,608 $ 4,071,336 $ 4,972,431 $ 7,867,415 S 4,335,187 $33,596,071 2020/21 w/COVID -±L $ - $ 1,864,513 -10.5% $10,132,889 -1.3% $ 3,796,878 -6.7% $ 3,804,345 -23.5% $ 7,362,710 -6.4% $ 4,016,826 -7.3% $30,978,161 -7.8% 2021/22 Recovery -±L- $ 1,945,545 4.3% $10,806,192 6.6% $ 3,954,123 4.1% $ 4,954,302 30.2% $ 8,001,658 8.7% $ 3,588,144 -10.7% $33,249,964 7.3% DANVILLE CALIFORNIA SUMMARY OF EXPENDITURES FISCAL YEAR 2021/22 MAINTENANCE SERVICES ADMINISTRATIVE SERVICES 23.2% $8002K 11.5% $3954K POLICE SERVICES 31.4% $10806K Total $34,424,678 DEVELOPMENT SERVICES 14.4% $4954K GENERAL GOVERNMENT 5.7% $1946K RECREATION SERVICES 10.4% $3588K SUCCESSOR AGENCY 3.4% $1175K DANVILLE CALIFORNIA CALIFORNIA EXPENSE BY CATEGORY Employee Exp. Temp. Salaries Administration Mat's & Supplies Contracted Svcs. Equipment Prgm. Activities TOTAL 2019/20 Pre -CO VID $12,565,100 $ 1,092,010 $ 645,227 $ 1,440,577 $13,059,851 $ 887,926 $ 3,905,380 $33,596,071 2020/21 $11,288,843 $ 787,542 $ 521,647 $ 1,388,093 $12,573,142 $ 686,259 $ 3,732,635 $30,978,161 - 10.2% - 27.9% - 19.2% - 3.6% - 3.70/0 -22.7% - 4.4% -7.8% 2021/22 Recovery FL $12,499,923 10.7% $ 764,385 -2.9% $ 524,027 0.5% $ 1,403,804 1.1% $13,315,012 5.9% $ 1,045,081 52.3% $ 3,697,732 -0.9% $33,249,964 7.3% DANVILLE CALIFORNIA RECOMMENDED FUND TRANSFERS 2019/20 2020/21 2021/22 LLAD Operations $ 1,000,000 $ 900,000 $ 1,100,000 Pavement Management $ 25,000 $ - $ 250,000 CIP General Purpose $ 1,235,005 $ - $ CIP B-626 Town Offices $ 2,100,000 $ 1,675,240 $ 750,000 CIP - Park Facilities $ - $ - $ 2,206,773 Asset Replacement $ 125,000 $ - $ Total Transfers $ 4,485,005 $ 2,575,240 $ 4,306,773 DANVILLE CALIFORNIA 2021/ 22 LLAD FUND ACTIVITY Op. & O.H. Assessment Zone Expenses Revenue A $ 973,929 $ 583,858 B $1,094,130 $ 746,968 C $ 755,348 $ 664,183 D $ 1,825,250 $1,134,741 $4,648,657 $3,129,750 Assessment Revenue 0/0 59.9% 68.3% 87.9% 62.2% 67.3% Transfer In +/- in Fund ±L G.F. Subsidy Balance S (390,071) $ 250,000 $(140,071) $ (347,162) $ 250,000 $ (97,162) $ (91,165) $ - $ (91,165) $ (690,509) $ 600,000 $ (90,509) ($1,518,907) $1,100,000 ($418,907) G.F. Subsidy Increases from $900,000 to $1,100,000; available LLAD Fund Balance increased from $2,988,487 to $3,117,941 DANVILLE CALIFORNIA PERSONNEL -FTE POSITIONS Regular Contract (Police) Temporary Total 2019/20 Budget Actual 95.25 92.25 30.00 29.00 36.50 36.00 161.75 157.25 2020/21 2021/22 Budget Actual Budget Actual 95.25 83.25 92.25 88.25 30.00 28.00 30.00 29.00 36.00 24.00 35.75 30.00 161.25 135.25 158.00 147.25 Actual staffing will continue to be less for all three categories until economic recovery allows additional positions to be re filled. DANVILLE CALIFORNIA Provides $65 billion to help cities bridge budget shortfalls and miti ate fiscal impact resulting from CO ID -19 Funds may be allocated to: Responding to the COVID-19 emergency and addressing its economic effects Providing premium pay to essential employees or grants to their employers Providing government services affected by COVID-19 revenue reductions Investing in water, sewer or broadband infrastructure Danville will be eligible to receive up to $8.38 million under the ARPA Draft 2021/22 Budget and CIP does not include ARPA funding 41 DANVILLE CALIFORNIA MASTER FEE SCHEDULE ➢ Town adopts a Master Fee Schedule for User and Cost Recovery Fees ➢ Fee Schedule is reviewed annually ➢ 2021/22 Master Fee Schedule increased by 2.9 % for CPI adjustment DANVILLE CALIFORNIA SUMMARY - BUDGET & CIP 2021/22 Budget is balanced Service levels continue to be impacted by COVID-19 - but recovery is underway Operating reserve equivalent to 38.3% of total Operating Budget; 54% of G.F. Budget (exceeds minimum 20% required) Town has no unfunded pension or OPEB liabilities Funds 16 capital projects totaling $8.96 million - no debt Continuing on a fiscally sustainable course DANVILLE CALIFORNIA RECOMMENDATIONS Resolution XX -2021 -Approving the 2021/22 Operating Budget and Appropriation Limit; Resolution XX -2021 - Approving the Five -Year CIP and appropriating funds for 2021/22 capital projects; Resolution XX-2021SA - approving the 2021/21 Operating Budget for the Successor Agency; Resolution XX -2021 - Approving the 2021/22 Master Fee Schedule MANVILLE CALIFORNIA PROPOSITION 111 APPROPRIATION LIMIT ➢ Appropriation limit set by Prop 4 (1979) and Prop 111 (1990) - limits amount of General Fund revenue that can be appropriated in any fiscal year. ➢ Applies to proceeds of taxes only 2021/22 limit is $43.7 million ➢ Actual 2022/22 G.F. revenues subject to limit is ➢ Danville is well below the limit $20.12 million Department $ Change from 20/21 Reason(s) General Government $81,032 Increased personnel/temporary salary costs offset by reduced Municipal Elections costs. Police Services Administrative Services $673,303 Increased contract cost for sworn personnel and restoration of funding for temporary salaries. $157,245 Restoration of Asset Replacement expenditures. Development Services $1,149,957 Restoration of personnel/temporary salary costs; increased contract plan checked services; and one-time costs associated with Housing Element preparation. Maintenance Services $638,948 Increased personnel and utility costs offset by reduced contract costs. Recreation, Arts & Community Services -$428,683 Continued significant program and service reductions continue due to pandemic.