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Home My WebLink About050625- 03.1 Presentation ppt2025/26 Operating Budget & Capital Improvement Program Budget Study Session May 6, 2025 Operating Budget & CIP Review and Adoption Process •Released Draft 2025/26 Operating Budget (May 1), Draft CIP (est. May 8) •Public Study Sessions to consider Draft 2025/26 Operating Budget & CIP (May 6, 13, 20, and 27 if necessary) •Public Hearing to consider approving Draft 2025/26 Operating Budget & CIP (June 17, 2025) 2Draft 2024/25 Operating Budget & Capital Improvement Program Operating Budget & CIP Operating Budget •Roadmap for municipal service delivery to meet unique community needs. Capital Improvement Program (CIP) •Plan for building and maintaining physical infrastructure in state of good repair. A living document, designed to adapt to economic changes and unexpected events. 3Draft 2025/26 Operating Budget & Capital Improvement Program Photo Credit: Joseph A. Calabrigo Purpose Vision & Mission Small Town Atmosphere, Outstanding Quality of Life Our Mission: Deliver superior municipal services that make people’s lives better. 4Draft 2025/26 Operating Budget & Capital Improvement Program Vision & Mission 5Draft 2025/26 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 Service Priorities Budgeting Approach Focus on Fiscal Sustainability 6Draft 2025/26 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 Format & Organization Draft Budget similar to FY 2024/25 7Draft 2025/26 Operating Budget & Capital Improvement Program 6 operating departments include 46 individual divisions or programs: 1.General Government 2.Police Services 3.Administrative Services 4.Development Services 5.Maintenance Services 6.Recreation, Arts & Community Services Operating Budget FY 2025/26 Draft 2025/26 Operating Budget & Capital Improvement Program 8 Operating Budget Executive Summary 9Draft 2025/26 Operating Budget & Capital Improvement Program •Balanced Budget for FY 2025/26. •Positive overall fiscal condition •No unfunded liabilities - period. •Sufficient reserves maintained for Operating and Capital. •Cost increases driven by Contracted Services and Equipment costs . •Increased LLAD funding critical beyond FY 2025/26 Other CDA Loan Repayments Town of Danville Operating Budget Revenues & Expenditures | Overview 10Draft 2025/26 Operating Budget & Capital Improvement Program CDA/Successor Agency General Purpose Revenues Municipal Services Special Purpose Revenues Service Priorities •Public Safety •Maintenance of Public Facilities •Planning and Historic Preservation •Parks and Recreation •Economic Vitality •Community Events Transfers Out: •LLAD Operations •Pavement Management •Capital Improvements •Asset Replacement •Reserves 2025/26 Revenue Forecast 11Draft 2025/26 Operating Budget & Capital Improvement Program Fiscal Year 2023/24 2024/25 +/-2025/26 +/- Town Funds General Fund $30,269,143 $31,448,308 3.9%$32,723,274 4.1% Special Revenue $10,824,635 $10,667,811 -1.4%$10,880,169 2.0% Total Town Funds $41,093,778 $42,116,119 2.5%$43,603,443 3.5% CDA/Successor Agency $2,281,625 $2,272,850 -0.4%$1,830,677 -19.5% Grand Total (Town + CDA)$43,375,403 $44,388,969 2.3%$45,434,120 2.4% 2025/26 Major Revenues | General Fund 12Draft 2025/26 Operating Budget & Capital Improvement Program Fiscal Year 2023/24 2024/25 +/-2025/26 +/- General Fund Property Tax $17,000,000 $17,900,000 5.3%$18,900,000 5.6% Sales Tax $6,500,000 $6,565,000 1.0%$6,400,000 -2.5% Recreation Fees $2,485,491 $2,572,688 3.5%$2,758,085 7.2% Franchise Fees $2,238,788 $2,387,000 6.6%$2,573,592 7.8% All Other $2,044,864 $2,023,620 -1.0%$2,091,597 3.4% Grand Total (General Fund)$30,269,143 $31,448,308 3.9%$32,723,274 4.1% 2025/26 Major Revenues | Special Purpose 13Draft 2025/26 Operating Budget & Capital Improvement Program Fiscal Year 2023/24 2024/25 +/-2025/26 +/- Special Revenue LLAD $3,129,750 $3,129,750 0.0%$3,144,908 0.5% Building & Planning $2,139,950 $2,753,200 28.7%$2,440,744 -11.3% Gas Tax $1,850,000 $1,895,879 2.5%$1,943,276 2.5% Solid Waste VIF $898,424 $925,376 3.0%$1,256,361 35.8% Measure J Return-to-Source $836,146 $857,050 2.5%$878,476 2.5% Clean Water $572,700 $578,332 1.0%$584,020 1.0% All Other $528,224 $526,224 -0.4%$632,384 20.2% Grand Total (Special Revenue)$9,955,194 $10,665,811 7.1%$10,880,169 2.0% 2025/26 Recommended Expenditures 14Draft 2025/26 Operating Budget & Capital Improvement Program Fiscal Year 2023/24 2024/25 +/-2025/26 +/- Town Funds General Fund $26,804,216 $28,614,857 6.8%$29,796,914 4.1% Special Revenue $10,824,635 $11,145,608 3.0%$11,474,126 2.9% Total Town Funds $37,628,851 $39,760,465 5.7%$41,271,040 3.8% CDA/Successor Agency $1,181,625 $1,172,850 -0.7%$1,171,276 -0.1% Grand Total (Town + CDA)$38,810,476 $40,933,315 5.5%$42,442,316 3.7% 2025/26 Expenses by Department 15Draft 2025/26 Operating Budget & Capital Improvement Program Fiscal Year 2023/24 2024/25 +/-2025/26 +/- General Government $3,082,129 $3,460,508 12.3%$3,424,706 -1.0% Police Services $11,323,619 $12,257,068 8.2%$12,966,938 5.8% Administrative Services $4,950,754 $5,245,189 5.9%$5,704,403 8.8% Development Services $5,374,995 $5,181,053 -3.6%$5,416,686 4.5% Maintenance Services $8,917,276 $9,481,440 6.3%$9,586,277 1.1% Recreation, Arts & Community Services $3,980,078 $4,135,208 3.9%$4,172,030 0.9% Grand Total $37,628,851 $39,760,466 5.7%$41,271,040 3.8% 2025/26 Expenses by Category 16Draft 2025/26 Operating Budget & Capital Improvement Program Fiscal Year 2023/24 2024/25 +/-2025/26 +/- Employee Expenses $14,444,303 $14,732,995 2.0%$14,990,823 1.8% Temporary Salaries $906,120 $948,520 4.7%$991,920 4.6% Administration $635,575 $629,231 -1.0%$671,683 6.7% Materials & Supplies $1,553,809 $1,674,469 7.8%$1,809,632 8.1% Contracted Services $14,308,085 $15,174,807 6.1%$15,581,180 2.7% Equipment $1,076,897 $956,126 -11.2%$1,337,094 39.8% Program Activities $4,704,062 $5,644,318 20.0%$5,888,708 4.3% Grand Total $37,628,851 $39,760,466 5.7%$41,271,040 3.8% 2025/26 Increased Expenses 17Draft 2025/26 Operating Budget & Capital Improvement Program Increased Expense Category Amount of Increase Contributing Factors Contracted Services $406,373 Increased Police contract costs associated with a 75% increase in liability insurance. Additional contract cost increases for Library Services and Animal Control through Contra Costa County. Equipment $380,968 Increase in the number of ALPR cameras in public parks. Increased Asset Replacement expenditures (primarily Police vehicles). Employee Expenses $257,858 Increase for CPI-based salary range adjustments, benefit cost changes, and annual merit-based pay-for-performance increases. Program Activities $244,390 Continued increases in costs driven by water (EBMUD) and electricity (PG&E) despite reduced usage. Adminstration, Temporary Salaries, Materials & Supplies $221,015 Increased costs driven primarily by additional part-time crime prevention personnel, application software licensing and maintenance fees, and community events supplies. $1,510,604 10 Year History 18Draft 2025/26 Operating Budget & Capital Improvement Program Increased Expense Category 2015/16 2025/26 % Difference SF Bay Area CPI*254.91 354.43 39.04% General Fund Revenue $23,615,597 $32,273,274 36.66% Total Operating Expenditures $29,292,673 $41,271,040 40.89% Personnel $10,757,374 $14,990,823 39.35% Police (Contract)$8,608,137 $12,966,938 50.64% Risk Management $516,500 $1,705,650 230.23% Utility - EBMUD $781,810 $1,626,200 108.00% Utility - PG&E $765,906 $1,156,260 50.97% Animal Control (Contract)$239,892 $506,787 111.26% *Consumer Price Index for All Urban Consumers (CPI-U) in the San Francisco Area (https://www.bls.gov/regions/west/news-release/consumerpriceindex_sanfrancisco.htm) 2025/26 Recommended Fund Transfers 19Draft 2025/26 Operating Budget & Capital Improvement Program Fiscal Year 2023/24 2024/25 2025/26 LLAD 1,350,000$ 1,450,000$ 1,500,000$ CIP - General Purpose -$ 1,384,004$ 1,833,314$ CIP - Park Facilities 350,000$ 520,000$ -$ CIP - Civic Facilities 72,480$ 27,000$ -$ Pavement Management 850,000$ 800,000$ 500,000$ Asset Replacement 50,000$ 50,000$ 50,000$ Operating Reserve 2,200,000$ -$ -$ Grand Total 4,872,480$ 4,231,004$ 3,883,314$ 2025/26 Lighting & Landscape Assessment | Fund Activity 20Draft 2025/26 Operating Budget & Capital Improvement Program Zone Expenses Assessment Assessment Difference GF Subsidy (Operations + OH)Revenue Revenue %(+/-)(Transfer In) A $1,242,269 $586,771 47.2%($655,498)$550,000 ($105,498) B $1,097,346 $750,686 68.4%($346,660)$200,000 ($146,660) C $1,016,796 $667,491 65.6%($349,305)$50,000 ($299,305) D $2,142,978 $1,139,960 53.2%($1,003,018)$700,000 ($303,018) $5,499,389 $3,144,908 57.2%(2,354,481)$ $1,500,000 (854,481)$ LLAD Fund Balance 2025/26 Personnel | FTE Positions 21Draft 2025/26 Operating Budget & Capital Improvement Program Fiscal Year 2023/24 2024/25 2025/26 Budget Budget Budget Regular Staff 95.25 95.75 95.75 Contract Staff (Police)30.00 30.00 30.00 Part-Time Temporary Staff 34.25 33.75 24.75 Grand Total 159.50 159.50 150.50 *Based upon converting total part-time temporary hours budgeted to full-time equivalents (1,950 hourse = 1.0 FTE) Ten Year Forecast (through 2034/35) 22 •Service Levels: Assumes FY 2025/26 service levels for 10 years •Revenue Forecast: Overall Increase of 9.06% o General Fund Revenues: Increase by 12.94% o Special Purpose Revenues: Increase by 12.41% o Successor Agency Revenues: Decrease by -80.12% •Operating Expenditure Forecast: Increase by 28.89% (2.89% annually) •General Fund Transfers: Average $1.79 million annually for all purposes •Former CDA Loan Repayment to Town: Complete by 2025/26 •Positive Balances: Building & Planning, Engineering, Gas Tax, Solid Waste VIF •Depleted Balance: LLAD Reserves (by 2026/27); Measure J Return-to-Source (absent renewal by 2034) Draft 2025/26 Operating Budget & Capital Improvement Program Master Fee Schedule Cost Recovery: Service Fees and Charges 23 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 2025/26 •Reviewed annually as a part of the Draft Operating Budget & CIP process. •CPI adjustment (2.8%) for select fees •Other minor adjustments. Draft 2025/26 Operating Budget & Capital Improvement Program Thank You! Budget Study Session | May 6, 2025 24