The URL can be used to link to this page

Home My WebLink About061521-07.2 2021-22 Budget and CIP2021/22 Budget & Capital Improvement Program June 15, 2021 1 Actions for Consideration Resolution 29-2021 – Approving the 2021/22 Operating Budget and Appropriation Limit; Resolution 30-2021 – Approving the Five-Year CIP and appropriating funds for 2021/22 capital projects; Resolution 31-2021SA - approving the 2021/21 Operating Budget for the Successor Agency; Resolution 32-2021 – Approving the 2021/22 Master Fee Schedule 2 Budget & CIP Process Draft Budget and CIP released & posted on Town website on April 29, 2021 Five Public Study Sessions to consider Draft Budget & CIP on May 4, May 11, May 18, May 25 & June 1, 2021 Public Hearing to consider approving 2021/22 Budget and CIP on Tuesday, June 15, 2021 3 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 4 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 (largely unchanged) 5 Danville’s Vision “Small Town Atmosphere, Outstanding Quality of Life” 6 MISSION: Deliver Superior Municipal Services that make people’s lives better We: Keep residents, businesses and property safe Provide well-maintained public facilities Protect our environment, preserve our history and retain our special character Celebrate diversity, dignity and equality for 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 7 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 8 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 9 ImpactS of Covid-19 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 10 Budget – Key Points Recommended 2021/22 Budget is balanced Service levels continue to be impacted by COVID-19 – but recovery is underway Operating reserve of $12.31 million = 37% of operating budget Town has no unfunded pension or OPEB liabilities Overall financial condition continues to be positive 11 CIP – Key Points Recommend funding 35 capital projects with recommended appropriations of $9,413,612 without debt Major Projects are Town Office Relocation (B-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 12 2021/22 Revenue Forecast 13 Town Revenues 14 GENERAL FUND - Major SOURCES 15 16 Special (Restricted) Purpose - Major SOURCES 17 18 2021/22 Recommended Expenditures & transfers 19 ExpenDITURES by Department 20 21 ExpenDITURES by Category 22 Recommended Fund Transfers 23 2021/22 LLAD Fund Activity G.F. Subsidy Increases from $900,000 to $1,100,000; available LLAD Fund Balance increased from $2,988,487 to $3,117,941 24 TOWN STAFFING – TOTAL FTE Actual staffing will continue to be less for all three categories until economic recovery allows additional positions to be re-filled. 25 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 $46,349,240 Actual 2022/22 G.F. revenues subject to limit is $22,185,561 Danville is well below the limit 26 Ten-Year Forecast Revenues – Increase from $35.77 million to $41.87 million Expenditures – Increase from $33.25 million to $41.94 million Transfers – Average $2.51 million annually Forecast: Sales Tax – 3 year recovery Recreation Fees – 2 year recovery Other Revenues – 2 year recovery LLAD increase required by 2024/25 27 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 unchanged (except DUI cost recovery) 28 Capital Improvement Pprogram 35 projects recommended $9,413,612 in new appropriations Town Council changes: A-362 - Downtown Improvement Project (Master Plan) $100,000 A-561 - I-680 Interchange Landscaping $ 75,000 B-556 - Danville South Park $ 70,000 C-402 - El Pintado Loop Overlay $500,000 C-545 - Traffic Signal Controller Upgrade $200,000 TOTAL $945,000 29 Summary – Budget & CIP 2021/22 Budget is balanced Service levels continue to be impacted by COVID-19 – but recovery is underway Operating reserve = 37.0% of total Operating Budget; 52.8% of G.F. Budget (exceeds minimum 20% required) Town has no unfunded pension or OPEB liabilities Funds 35 capital projects totaling $9.41 million - no debt Continuing on a fiscally sustainable course 30 recommendations Resolution 29-2021 – Approving the 2021/22 Operating Budget and Appropriation Limit; Resolution 30-2021 – Approving the Five-Year CIP and appropriating funds for 2021/22 capital projects; Resolution 31-2021SA - approving the 2021/21 Operating Budget for the Successor Agency; Resolution 32-2021 – Approving the 2021/22 Master Fee Schedule 31 Purpose for Change 32 Service Level Impacts General Government Reduced hours of operation from 42.5 to 38.5 - close at 1:00 p.m. on Friday Police Department Reduced public counter assistance, parking enforcement and investigation follow-up on “C” cases Development Services Increased response and turnaround time for permit applications department-wide; increased response time for PW inspections; increased design/development time for CIP projects 33 Service Level Impacts Administrative Services Eliminated replacement of vehicles, technology purchases and upgrades impacting service delivery town-wide Maintenance Services Increased response time for CRM requests and park repairs; reduced funding for plant replacement and upkeep of buildings Recreation, Arts and Community Services Reduced funding and staffing for all programs, classes, events and activities; reduced availability of buildings for public use. Reduced funding for Library Services and Community events 34 American Rescue Plan Act (ARPA) Provides $65 billion to help cities bridge budget shortfalls and mitigate fiscal impact resulting from COVID-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 $10.6 million under the ARPA Draft 2021/22 Budget and CIP does not include ARPA funding 35