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Home My WebLink About2023-24 Budget CIP Adoption June 6 (FINAL)2023/24 Operating Budget & Capital Improvement Program June 6, 2023 Actions for Consideration 2023/24 Operating Budget & Capital Improvement Program 2 •Resolution No. 39-2023 -Approving the 2023/24 Operating Budget and Appropriation Limit; •Resolution No. 40-2023 -Approving the Five-Year CIP and appropriating funds for 2023/24 capital projects; •Resolution No. 41-2023 SA -Approving the 2023/24 Operating Budget for the Successor Agency; •Resolution No. 42-2023 -Approving the 2023/24 Master Fee Schedule Operating Budget & CIP Review and Adoption Process •Released Draft 2023/24 Operating Budget & CIP (April 28, 2023) •Public Study Sessions to consider Draft 2023/24 Operating Budget & CIP (May 2, 9, & 16, 2023) •Public Hearing to consider approving Draft 2023/24 Operating Budget & CIP (June 6, 2023) 32023/24 Operating Budget & Capital Improvement Program Photo Credit: Lara George Operating Budget & CIP Purpose •Establish/review goals and priorities for ongoing municipal service delivery to meet unique community needs. •Identify, plan for and fund one-time capital projects and ongoing capital maintenance needs. 42023/24 Operating Budget & Capital Improvement Program Photo Credit: Joseph A. Calabrigo Vision & Mission Small Town Atmosphere, Outstanding Quality of Life Our Mission: Deliver superior municipal services that make people’s lives better. 5Draft 2023/24 Operating Budget & Capital Improvement Program Vision & 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 businessesPhoto Credit: Lara George Budgeting Approach Focus on Fiscal Sustainability 72023/24 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 conservativelyPhoto Credit: Lara George Operating Budget Executive Summary 82023/24 Operating Budget & Capital Improvement Program •Balanced Budget for 2023/24. •Strong recovery from COVID-19; aided by Cares Act and ARPA. •Many services re-imagined and adapted. •Healthy reserves maintained, in both the Operating & Capital Budgets. •No unfunded liabilities -period. •Overall fiscal condition: positive andsustainable. Photo Credit: Lara George 92023/24 Operating Budget & Capital Improvement Program Capital Improvement Program •Funding 29 capital projects with total appropriations of $10.1 million, no debt. •ARPA 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 102023/24 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 Photo Credit: Lara George 2023/24 Revenue Forecast 2023/24 Operating Budget & Capital Improvement Program 11 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 2023/24 Operating Budget & Capital Improvement Program 12 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 2023/24 Operating Budget & Capital Improvement Program 13 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 2023/24 Operating Budget & Capital Improvement Program 14 Fiscal Year 2021/22 2022/23 +/-2023/24 +/- Town Funds General Fund $23,300,924 $25,336,288 8.7%$26,804,216 5.8% Special Revenue $9,949,040 $10,431,302 4.8%$10,824,635 3.8% Total Town Funds $33,249,964 $35,767,590 7.6%$37,628,851 5.2% 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%$38,810,476 5.1% 2023/24 Expenses by Department 2023/24 Operating Budget & Capital Improvement Program 15 Police Services $9,646,346 $11,164,094 15.7%$11,323,619 1.4% Maintenance Services $7,250,157 $8,516,458 17.5%$8,917,276 4.7% Development Services $4,279,420 $5,179,933 21.0%$5,374,995 3.8% Administrative Services $3,577,257 $4,310,501 20.5%$4,950,754 14.9% Recreation, Arts & Community Services $2,785,831 $3,826,260 37.3%$3,980,078 4.0% General Government $2,484,386 $2,770,344 11.5%$3,082,129 11.3% Grand Total $30,023,397 $35,767,590 19.1%$37,628,851 5.2% 2023/24 Expenses by Category 2023/24 Operating Budget & Capital Improvement Program 16 Fiscal Year 2021/22 2022/23 2023/24 +/- Employee Expenses $12,499,923 $13,499,324 $14,444,303 7.0% Contracted Services $13,315,012 $14,076,721 $14,308,085 1.6% Program Activities $3,697,732 $4,010,424 $4,704,062 17.3% Materials & Supplies $1,403,804 $1,541,068 $1,553,809 0.8% Equipment $1,045,081 $1,039,576 $1,076,897 3.6% Temporary Salaries $764,385 $1,063,105 $906,120 -14.8% Administration $524,027 $537,372 $635,575 18.3% Grand Total $33,249,964 $35,767,590 $37,628,851 5.2% 2023/24 Increased Expenses 2023/24 Operating Budget & Capital Improvement Program 17 Expense Category Amount Description Employee Expenses $944,979 Salaries, workers comp, health insurance, SDI Insurance $405,952 General liability, property, earthquake Contract Expenses $231,364 Animal services, library services, street sweeping, community events, information technology Utility Expenses $121,400 Water (East Bay Municipal Utility District) Police Expenses $100,080 Liability insurance, crime lab, Cal ID Miscellaneous $ 57,486 Total Increase $1,861,261 2023/24 Recommended Fund Transfers 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 $340,000 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 $4,862,480 2023/24 Lighting & Landscape Assessment | Fund Activity 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 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 Appropriation Limit Set by State Statute 212023/24 Operating Budget & Capital Improvement Program •Limits amount of General Fund revenue that can be appropriated in any fiscal year (proceeds of taxes only) •2023/24 limit is $51,850,346 •Actual 2023/24 G.F. revenues subject to limit is $25,270,077 •Danville is well below the appropriation limit Photo Credit: Lara George Ten Year Forecast 2023/24 Operating Budget & Capital Improvement Program 22 •Revenues –Increase from $42.5 million to $46.5 million •Expenditures –Increase from $37.6 million to $45.8 million •Transfers –Average $3.0 million annually •Former CDA repayment to Town retired in 2025/26 •2001 COPs retired in 2026/27; 2001 TRBs retired in 2028/29 •LLAD increase required by 2025/26 •Operations are sustainable for the ten-year period Master Fee Schedule Cost Recovery: Service Fees and Charges 23Draft 2023/24 Operating Budget & Capital Improvement Program 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 Capital Improvement Program (Key Points) 2023/24 Operating Budget & Capital Improvement Program 24 •Recommends funding 29 capital projects with total appropriations of $10.1 million, without debt. •ARPA Funds provide a major boost toward economic recovery. •Major Projects include Downtown Improvements (A-362), Multi-Sport Skate Park (B-616), Town Green & Arts District (B-628), Diablo Road Trail (C-055) and Pavement Management Program (C-610). •“Full plate” of projects to deliver. •Estimated available CIP General Purpose fund balance is sufficient to fund currently planned projects for next 5 years. Operating Budget & CIP Summary Draft 2023/24 Operating Budget & Capital Improvement Program 25 Photo Credit: Lara George •Operating Budget is balanced •Continuously adapting service delivery approaches •Operating reserve = 42.5% of total Operating Budget; 59.8%of General Fund Budget •No unfunded pension/OPEB liabilities •Funds 29 capital projects totaling $10.1 million, with no debt •Overall positive fiscal condition •Continues on a fiscally sustainable course Recommendation 2023/24 Operating Budget & Capital Improvement Program 26 Conduct public hearing. Consider and approve: •Resolution No. 39-2023 -Approving the 2023/24 Operating Budget and Appropriation Limit; •Resolution No. 40-2023 -Approving the Five-Year CIP and appropriating funds for 2023/24 capital projects; •Resolution No. 41-2023 SA -Approving the 2023/24 Operating Budget for the Successor Agency; •Resolution No. 42-2023 -Approving the 2023/24 Master Fee Schedule