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Home My WebLink About061725-08.1 Operating Budget CIP PPT (6-17-2025) 2025/26 Operating Budget & Capital Improvement Program Town Council Meeting June 17, 2025 Budget & CIP Two Interlocking Parts 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. Living documents -designed to adapt to economic changes and unexpected events. Photo Credit: Joseph A. Calabrigo 2025/26 Operating Budget & Capital Improvement Program 2 Review & Adoption Process Operating Budget & Capital Improvement Program Released •Draft 2025/26 Operating Budget (May 1) and Draft CIP (May 8) Public Study Sessions •to consider Draft 2025/26 Operating Budget & CIP (May 6, 13, and 20, 2025) Public Hearing •to consider approving 2025/26 Operating Budget & CIP (June 17, 2025) 2025/26 Operating Budget & Capital Improvement Program 3 Danville’s Vision Small Town Atmosphere Outstanding Quality of Life Our Mission: Deliver superior municipal services that make people’s lives better. 2025/26 Operating Budget & Capital Improvement Program 4 Service Priorities Implementing Danville’s Mission •Keep residents, businesses and property safe •Provide well-maintainedpublic facilities •Protect our environment, preserve our historyand retain our special character •Celebrate the diversityof our Town and value all members of our community •Provide opportunities that support residents’ growth and enrichment •Promote and support economic vitality and growth •Representand promote Danville’s best interests •Celebrate community through family-oriented special events •Effectively engageand communicatewith residents and businesses 2025/26 Operating Budget & Capital Improvement Program 5 Budgeting Approach Focus on Fiscal Agility and Sustainability in-house contract •Pairexpertise with efficiencyto deliver high quality results partnerships •Build to extend service capacity without expanding footprint •Follow disciplined pay-as-you-go philosophy, no debt reserves •Maintain healthy , use conservative revenue estimates to safeguard against uncertainty 2025/26 Operating Budget & Capital Improvement Program 6 Format & Organization Service Delivery 6 operating departmentsinclude 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 2025/26 Operating Budget & Capital Improvement Program 7 Operating Budget FY 2025/26 2025/26 Operating Budget & Capital Improvement Program 8 Operating Budget 2025/26 Financial Snapshot Financial Position –Strong & Stable •Balanced budget ($46.86M in revenues; $42.63M recommended expenditures) •No unfunded liabilities –period •Sufficient reserves (>20% reserve policy) Forecast –Economic Headwinds •Cost pressures (inflation, contracted services, equipment costs, utilities) 2025/26 Operating Budget & Capital Improvement Program 9 Revenues & Expenditures | Overview General PurposeService Priorities •Property Tax•Public Safety •Sales Tax•Maintenance of Public Facilities •Franchise Fees General Purpose Municipal •Planning and Historic •Recreation Fees RevenuesServices Preservation •All Other Town of Danville •Parks and Recreation Operating Budget •Economic Vitality •Community Events Special Purpose •LLAD •Building & Planning Special Purpose Transfers Out Transfers •Gas Tax Revenues •LLAD Operations Out •All Other (Subsidy) •Pavement Management •Capital Improvements •Asset Replacement CDA/Successor AgencyCDA/Successor Agency 2025/26 Operating Budget & Capital Improvement Program 10 Revenues & Expenditures | Overview General PurposeService Priorities •Property Tax•Public Safety •Sales Tax•Maintenance of Public Facilities •Franchise Fees General Purpose Municipal •Planning and Historic •Recreation Fees RevenuesServices Preservation •All Other Town of Danville •Parks and Recreation Operating Budget •Economic Vitality •Community Events Special Purpose •LLAD •Building & Planning Special Purpose Transfers Out Transfers •Gas Tax Revenues •LLAD Operations Out •All Other (Subsidy) •Pavement Management •Capital Improvements •Asset Replacement CDA/Successor AgencyCDA/Successor Agency 2025/26 Operating Budget & Capital Improvement Program 11 2025/26 Revenue Forecast * *Reflects increase from Draft Operating Budget, attributable to formation of new LLA 2025-04. Addition $1.44 million in new revenue reduces LLAD operating deficit, lessens reliance on General Fund 2025/26 Operating Budget & Capital Improvement Program 12 2025/26 Major Revenues | General Fund 2025/26 Operating Budget & Capital Improvement Program 13 2025/26 Major Revenues | Special Purpose * 2025/26 Operating Budget & Capital Improvement Program 14 2025/26 Recommended Expenditures 2025/26 Operating Budget & Capital Improvement Program 15 2025/26 Expenses by Department * *Reflects increase from Draft Operating Budget, attributable to late notification from EBMUD of new water rate increase by 12.2% of $195,178 over 2024/25 despite reduced water usage. 2025/26 Operating Budget & Capital Improvement Program 16 2025/26 Expenses by Category * *Reflects increase from Draft Operating Budget, attributable to late notification from EBMUD of new water rate increase by 12.2% of $195,178 over 2024/25 despite reduced water usage. Draft 2025/26 Operating Budget & Capital Improvement Program 17 2025/26 Personnel | FTE Positions Draft 2025/26 Operating Budget & Capital Improvement Program 18 10 Year History * Draft 2025/26 Operating Budget & Capital Improvement Program 19 2025/26 Recommended Fund Transfers 2025/26 Operating Budget & Capital Improvement Program 20 2025/26 Landscape & Lighting Assessment | Fund Activity Before Forecasted Fund Activity ** LLAD 2025-01 2025/26 Operating Budget & Capital Improvement Program 21 2025/26 Landscape & Lighting Assessment | Fund Activity After Forecasted Fund Activity ** LLAD 2025-01 2025/26 Operating Budget & Capital Improvement Program 22 Ten Year Forecast (through 2034/35) Service Levels •: Assumes FY 2025/26 service levels for 10 years Revenue Forecast10.25% •: Overall Increase of General Fund Revenues : Increase by 12.94% o Special Purpose Revenues : Increase by 16.56% o Successor Agency Revenues : Decrease by -80.12% o Operating Expenditure Forecast29.41% •: Increase by (2.89% annually) General Fund Transfers •: Average $2.91 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 •: Measure J Return-to-Source (absent renewal by 2034) 2025/26 Operating Budget & Capital Improvement Program 23 Master Fee Schedule Cost : Service Fees and Charges Recovery 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 24 Capital Improvement Program 2025/26 –2029/30 2025/26 Operating Budget & Capital Improvement Program 25 Capital Improvement Program What is a CIP 5-year program •Revolving to fund and plan for infrastructure. creates •A capital project a new physical asset changes or an existing one, in order to: •Prolongits useful life •Increaseits value or •Enhanceits capabilities •Reviewed and adopted as a part of the Operating Budget process. 2025/26 Operating Budget & Capital Improvement Program 26 High Level Summary fiscal pressure 1.Increasing on General Fund the from multiple fronts. capital 2.Emphasis on maintenance of existing infrastructure. 3.Strategic shift toward reserving set-aside funds for future large-scale capital needs. 2025/26 Operating Budget & Capital Improvement Program 27 FY 2025/26 CIP Recommendation $12.03M 43 •Appropriate to fund CIP projects , with remaining 34 projects are funded through prior-year allocations. $5.34M increase •Represents a over the prior year’s CIP appropriation. project •Reflects near-term delivery goals and reserving set-aside funds for future large-scale capital needs. 2025/26 Operating Budget & Capital Improvement Program 28 Key CIP Priorities for FY 2025/26 •Town Green/ Arts District Pavillion and Maker Space (B-628, B-629) •Diablo Road Trail and HAWK Signal (C-055, C-057) •DVP Playground Replacement (B-560) •Sycamore Valley Road Improvements (C-635) •25/26 Pavement Management (C-610), coordinated with Sycamore Valley Road Improvements Table A: Two-Year Project Priority Timeline, as presented at 2025 Annual Town Council Planning & Goal Setting Workshop. 2025/26 Operating Budget & Capital Improvement Program 29 Pavement Management Program PCI of 70 Recommended appropriation maintains local and arterial roadways at a minimum average PCI is a measure of pavement quality on a scale of 0 to 100. PCI of 100: New pavement 70-100: Very Good to Excellent PCI of ≤10: Pavement failure 2025/26 Operating Budget & Capital Improvement Program 30 Capital Maintenance Extensive Public Infrastructure Assets Significant capital investment since incorporation. Extensive infrastructure inventory: •Civic Facilities •Parks and Park Features •Street Infrastructure •Storm Drain Infrastructure Draft 2025/26 Operating Budget & Capital Improvement Program 31 Legacy of Danville’s Capital Investments Majority of infrastructure was built between the 1960s through late 1990s. 16 Public Buildings Street Infrastructure 16 Public ParksStorm Drain System & Trail Network 140,000 square feet 158 centerline miles 5,068 hydraulic structures 3,519 street lights 44.7 miles open channel 198 acres 54 traffic signals 128.3 miles piping 17 bridges 60 acres of median & roadside landscaping Draft 2025/26 Operating Budget & Capital Improvement Program 32 Capital Maintenance Costs Arterial RoadwaysLocal Roadways $3.3 million $440,000 per mile per mile 20-year life 20-year life 18.04 centerline miles, cycle 140.34 centerline miles, cycle $2.97 million $3.07 million Estimated: annual set-asideEstimated: annual set-aside Draft 2025/26 Operating Budget & Capital Improvement Program 33 Capital Maintenance Costs PlaygroundsArtificial Turf Fields $1 million $1.5 million per field per playground 9-yearlife 15-yearlifeThree fields at 2 parks, cycle 5 playgrounds at 5 parks, cycle $333,333 $500,000 Estimated: annual set-aside Estimated: annual set-aside Draft 2025/26 Operating Budget & Capital Improvement Program 34 Capital Maintenance Costs Storm Drain InfrastructureSports Field Lighting $TBD $1 million per park Hydraulic structures, open channels, pipes 20-yearlife Three sets at 2 parks, cycle $TBD Estimated: annual set-aside $100,000 Estimated: annual set-aside Draft 2025/26 Operating Budget & Capital Improvement Program 35 Capital Maintenance Costs Bike Safety EnhancementsPedestrian Safety Enhancements $20 $30,000 per square foot per set 15-yearlife10-yearlife 450,000 square feet; cycle 16 sets of RRFBs; cycle $60,000 $48,000 Estimated: annual set-asideEstimated: annual set-aside Draft 2025/26 Operating Budget & Capital Improvement Program 36 Annual Capital Maintenance Highlight of Key Infrastructure Costs Annual Set-Aside Major Assets (sampling) Count Life CycleEstimated Cost (estimated) Arterial Roadways18.04 centerline miles20 years$3.3 million per centerline mile$2.15 million Local Roadways140.34 centerline miles20 years$440,000 per centerline mile$2.65 million Parks -Playgrounds5 main playgrounds15 years$1.5 million per playground$500,000 Parks -Turf Fields3 fields9 years$1 million per field$330,000 Hydraulic structures, open Storm Drain InfrastructureVariesTBD$100,000-250,000 channels, pipes Parks -Sports Field Lighting2 parks20 years$1 million per park$100,000 Bike Safety (green bike lanes)45,000 square feet15 years$900,000$50,000 Pedestrian Safety (RRFBs) 16 sets of RRFBs 10 years $30,000 per set $30,000 Total Annual Set-Aside:$6.01 million Draft 2025/26 Operating Budget & Capital Improvement Program 37 Focus on Capital Maintenance 71% of CIP Workload 60% of total CIP Budget Capital maintenance efforts constitute and Share of CIP Funding by Project Type Share of CIP Workload by Project Type 2025/26 CIP 2025/26 CIP Ongoing Capital Maintenance Rehabilitation/ 19% Ongoing Capital Replacement Maintenance Rehabilitation/ 32% 39% Replacement 41% New/Modified 40% New/Modified 29% Ongoing Capital MaintenanceNew/ModifiedRehabilitation/Replacement Ongoing Capital MaintenanceNew/ModifiedRehabilitation/Replacement 2025/26 Operating Budget & Capital Improvement Program 38 Supported Primarily FY 2025/26 CIP Appropriations by Revenue Type by the General Fund General purpose (General Fund) revenues Special Purpose 71% of the CIP now cover (up from 41% prior Revenue, year) supporting: $3,430,500 , (29%) •Pavement Management (local roadways) •Arterial Roadway Rehabilitation General Purpose •LLAD Capital Maintenance (not Operations) Revenue, $8,600,800 , (71%) •Stormdraininfrastructure replacement •CleanwaterProgram (NPDES) future large-scale capital needs •Set-asides for without debt General Purpose RevenueSpecial Purpose Revenue 2025/26 Operating Budget & Capital Improvement Program 39 Recommended Actions 2025/26 Operating Budget & CIP 2025/26 Operating Budget & Capital Improvement Program 40 Operating Budget: Recommendation 1.Conduct public hearing. 2.Consider and approve: Resolution No. 42-2025 •-Approving the 2025/26 Operating Budget and Appropriation Limit; Resolution No. 43-2025 SA •- Approving the 2025/26 Operating Budget for the Successor Agency; Resolution No. 44-2025 •-Approving the 2025/26 Master Fee Schedule. 2025/26 Operating Budget & Capital Improvement Program 41 Capital Improvement Program: Recommendation 1.Conduct public hearing. 2.Consider and approve: Resolution No. 45-2025 •-Approving the Five-Year CIP and appropriating funds for 2025/26 capital projects. 2025/26 Operating Budget & Capital Improvement Program 42 Thank You! June 17, 2025 2025/26 Operating Budget & Capital Improvement Program 43