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Home My WebLink About050223 2023-24 Budget CIP presentation2023/24 Operating Budget & CIP Town Council Study Session May 2, 2023 Danville Town Offices | Community Meeting Room Operating Budget & CIP Purpose •The Operating Budget is the spending plan that reflects the Town Council’s municipal service delivery priorities for the upcoming fiscal year. It details the funding for the daily operations such as personnel costs, vendors, contractors, utilities, and supplies. •The Capital Improvement Program (CIP) is the long-range plan for all capital improvement projects and funding sources over the next five fiscal years. Projects usually include large scale infrastructure improvements, infrastructure maintenance, and other one-time investments. 2Draft 2023/24 Operating Budget & Capital Improvement Program Photo Credit: Lara George Operating Budget & CIP Review and Adoption Process •Release Draft 2023/24 Operating Budget & CIP (April 28, 2023) •Public Study Sessions to consider Draft 2023/24 Operating Budget & CIP (May 2, 9, 16 and 23, 2023) •Public Hearing to consider approving Draft 2023/24 Operating Budget & CIP (June 6, 2023) 3Draft 2023/24 Operating Budget & Capital Improvement Program Photo Credit: Lara George Vision and Mission Our Community Vision Small Town Charm, Outstanding Quality of Life. 4Draft 2023/24 Operating Budget & Capital Improvement Program Vision and Mission Our Community Mission Deliver superior municipal services that make people’s lives better. 5Draft 2023/24 Operating Budget & Capital Improvement Program Photo Credit: Lara George Vision and Mission Service Priorities 6Draft 2023/24 Operating Budget & Capital Improvement Program •Keep residents, businesses and property safe •Provide well-maintained public facilities •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 Photo Credit: Lara George Budgeting Approach Focus on Fiscal Sustainability 7Draft 2023/24 Operating Budget & Capital Improvement Program •Focus on Vision, Mission & Priorities •Combine approaches to deliver service •Invest in partnerships and technology •Don’t borrow… maintain healthy reserves •Estimate conservatively Photo Credit: Lara George Operating Budget Executive Summary 8Draft 2023/24 Operating Budget & Capital Improvement Program •Balanced Budget for 2023/24. •Strong recovery from COVID-19; aided by Cares Act and ARPA Local Fiscal Recovery Funds. •Many services re-imagined and adapted. •Healthy reserves maintained, in both the Operating & Capital Budgets. •No unfunded liabilities -period. •Overall fiscal condition: positive and sustainable. Photo Credit: Lara George 9Draft 2023/24 Operating Budget & Capital Improvement Program Capital Improvement Program •Recommend funding 29 capital projects with total appropriations of $10.1 million, no debt. •ARPA Local Fiscal Recovery Funds provide a major boost toward economic recovery. •“Full plate” of projects to deliver. •Sufficient estimated CIP General Purpose fund balance available to fund currently planned projects for next 5 years. Executive Summary Photo Credit: Lara George Format & Organization Similar to FY 2023/24 10Draft 2023/24 Operating Budget & Capital Improvement Program •46 Divisions or Programs are organized into 6 operating Departments: 1.General Government 2.Police Services 3.Administrative Services 4.Development Services 5.Maintenance Services 6.Recreation, Arts & Community Services •For 2023/24, five programs are shifted among departments to better reflect organizational changes that have occurred over past year. Photo Credit: Lara George Format & Organization Program Area Shifts 11Draft 2023/24 Operating Budget & Capital Improvement Program •Economic Development Program -shifts from Administrative Services to General Government •Community Events Program -shifts from Recreation, Arts & Community Services to General Government •Emergency Preparedness Program -shifts from General Government to Police Services. •Animal Control Program -shifts from Police Services to Administrative Services •Library Services Program -shifts from Recreation, Arts & Community Services to Administrative Services Photo Credit: Lara George 2023/24 Revenue Forecast Draft 2023/24 Operating Budget & Capital Improvement Program 12 Fiscal Year 2021/22 2022/23 +/-2023/24 +/- Town Funds General Fund $26,210,144 $28,665,329 9.4%$30,269,143 5.6% Special Revenue $9,564,022 $9,827,912 2.8%$9,955,194 1.3% Total Town Funds $35,774,166 $38,493,241 7.6%$40,224,337 4.5% CDA/Successor Agency $2,274,714 $2,272,250 -0.1%$2,281,625 0.4% Grand Total (Town + CDA)$38,048,880 $40,765,491 7.1%$42,505,962 4.3% 2023/24 Major Revenues | General Fund Draft 2023/24 Operating Budget & Capital Improvement Program 13 Fiscal Year 2021/22 2022/23 +/-2023/24 +/- General Fund Property Tax $15,200,000 $16,200,000 6.6%$17,000,000 4.9% Sales Tax $5,250,000 $6,000,000 14.3%$6,500,000 8.3% Recreation Fees $1,500,001 $2,034,067 35.6%$2,485,491 22.2% Franchise Fees $2,222,254 $2,238,788 0.7%$2,238,788 0.0% All Other $2,037,889 $2,192,474 7.6%$2,044,864 -6.7% Grand Total (General Fund)$26,210,144 $28,665,329 9.4%$30,269,143 5.6% 2023/24 Major Revenues | Special Revenue Draft 2023/24 Operating Budget & Capital Improvement Program 14 Fiscal Year 2021/22 2022/23 +/-2023/24 +/- Special Revenue LLAD $3,129,750 $3,129,750 0.0%$3,129,750 0.0% Building & Planning $2,153,200 $2,153,200 0.0%$2,139,950 -0.6% Gas Tax $1,664,828 $1,800,000 8.1%$1,850,000 2.8% Measure J Return-to-Source $710,139 $771,781 8.7%$836,146 8.3% Clean Water $572,700 $572,700 0.0%$572,700 0.0% Solid Waste VIF $846,851 $872,257 3.0%$898,424 3.0% All Other $486,554 $528,224 8.6%$528,224 0.0% Grand Total (Special Revenue)$9,564,022 $9,827,912 2.8%$9,955,194 1.3% 2023/24 Recommended Expenditures Draft 2023/24 Operating Budget & Capital Improvement Program 15 Fiscal Year 2021/22 2022/23 +/-2023/24 +/- Town Funds General Fund $23,300,924 $25,336,288 8.7%$26,794,216 5.8% Special Revenue $9,949,040 $10,431,302 4.8%$10,784,635 3.4% Total Town Funds $33,249,964 $35,767,590 7.6%$37,578,851 5.1% CDA/Successor Agency $1,174,714 $1,172,250 -0.2%$1,181,625 0.8% Grand Total (Town + CDA)$34,424,678 $36,939,840 7.3%$38,760,476 4.9% 2023/24 Expenses by Department Draft 2023/24 Operating Budget & Capital Improvement Program 16 Fiscal Year 2021/22 2022/23 +/-2023/24 +/- General Government $2,484,386 $2,770,344 11.5%$3,032,129 9.4% Police Services $9,646,346 $11,164,094 15.7%$11,323,619 1.4% Administrative Services $3,577,257 $4,310,501 20.5%$4,950,754 14.9% Development Services $4,279,420 $5,179,933 21.0%$5,374,995 3.8% Maintenance Services $7,250,157 $8,516,458 17.5%$8,917,276 4.7% Recreation, Arts & Community Services $2,785,831 $3,826,260 37.3%$3,980,078 4.0% Grand Total $30,023,397 $35,767,590 19.1%$37,578,851 5.1% 2023/24 Expenses by Category Draft 2023/24 Operating Budget & Capital Improvement Program 17 Fiscal Year 2021/22 2022/23 2023/24 +/- Employee Expenses $12,499,923 $13,499,324 $14,444,303 7.0% Temporary Salaries $764,385 $1,063,105 $906,120 -14.8% Administration $524,027 $537,372 $635,575 18.3% Materials & Supplies $1,403,804 $1,541,068 $1,553,809 0.8% Contracted Services $13,315,012 $14,076,721 $14,258,085 1.3% Equipment $1,045,081 $1,039,576 $1,076,897 3.6% Program Activities $3,697,732 $4,010,424 $4,704,062 17.3% Grand Total $33,249,964 $35,767,590 $37,578,851 5.1% 2023/24 Recommended Fund Transfers Draft 2023/24 Operating Budget & Capital Improvement Program 18 Fiscal Year 2021/22 2022/23 2023/24 LLAD $1,100,000 $1,300,000 $1,350,000 Pavement Management $250,000 $900,000 $850,000 CIP - General Purpoase $750,000 $2,451,594 $0 CIP - Park Facilities $2,206,773 $0 $350,000 CIP - Civic Facilities $0 $0 $72,480 Asset Replacement $0 $75,000 $50,000 Operating Reserve $0 $0 $2,200,000 Grand Total $4,306,773 $4,726,594 $4,872,480 2023/24 Lighting & Landscape Assessment | Fund Activity Draft 2023/24 Operating Budget & Capital Improvement Program 19 Zone Expenses Revenue Revenue Revenue GF Subsidy (Operations + OH)(%)(+/-)(Transfer In) A $1,178,130 $583,858 49.6%($594,272)$400,000 ($194,272) B $1,154,975 $746,968 64.7%($408,007)$250,000 ($158,007) C $843,462 $664,183 78.7%($179,279)$100,000 ($79,279) D $1,981,586 $1,134,741 57.3%($846,845)$600,000 ($246,845) $5,158,153 $3,129,750 60.7%(2,028,403)$ $1,350,000 (678,403)$ LLAD Fund Balance 2023/24 Personnel | FTE Positions Draft 2023/24 Operating Budget & Capital Improvement Program 20 Fiscal Year Budget Actual Budget Actual Budget Actual Regular Staff 92.25 88.25 93.25 93.25 95.25 95.25 Contract Staff (Police)30.00 29.00 30.00 29.00 30.00 30.00 Part-Time Temporary Staff 35.75 28.75 35.75 35.75 34.25 34.25 Grand Total 158.00 146.00 159.00 158.00 159.50 159.50 2021/22 2022/23 2023/24 Master Fee Schedule Cost Recovery: Service Fees and Charges 21Draft 2023/24 Operating Budget & Capital Improvement Program The Master Fee Schedule for User and Cost Recovery Fees (“Master Fee Schedule”) details fees and charges for services provided to residents and customers. They are calculated to recover a portion of the cost to provide these municipal services. Summary for 2023/24 •Master Fee Schedule is reviewed annually as a part of the Draft Operating Budget & CIP process •CPI adjustment (2%) for select fees Photo Credit: Lara George Operating Budget & CIP Summary Draft 2023/24 Operating Budget & Capital Improvement Program 22 •2023/24 Operating Budget is balanced •Continuous adaptation to utilize the best service delivery approaches •Operating reserve equivalent to 42.6% of total Operating Budget; 59.8%of General Fund Budget (exceeds minimum 20% required) •Town has no unfunded pension or OPEB liabilities •Funds 29 capital projects totaling $10.1 million, without incurring debt •Overall positive fiscal condition •Continues to be on a fiscally sustainable course Photo Credit: Lara George Thank You Questions? Draft 2023/24 Operating Budget & Capital Improvement Program 23 Photo Credit: Lara George