2020 Study Issues/ Budget Issues Workshop

2020 Study Issues/Budget Issues Workshop

February 27, 2020

Introduction

Kent SteffensCity Manager

3City of Sunnyvale – 2020 Study Issues/Budget Issues Workshop – February 27, 2020

2019 Study Issues Workshop Results

OCM, 3

CDD, 7

ESD, 3

FIN, 1

LCS, 3

DPW, 9

DPS, 1 HRD, 1

28


Study Issues in Progress‐ Year/Department

1 1 1 12

2

1 12

3

1

1

1

1

1

0

1

2

3

4

5

6

7

8

9

10

11

12

2011 2014 2016 2017 2018 2019

Study Issues in Progress

CDD LCS DPW OCM ESD DPS HRD FIN

Total = 20


Completed Study Issues Post‐ 2019 Workshop

8 STUDY ISSUES

CDD 14‐10 Update to the Murphy Avenue Design Guidelines DPW 16‐01 Develop a Vision Zero Plan‐Total Elimination of Traffic Fatalities DPW 18‐08 Develop a Dockless Bicycle Share Pilot Program ESD 13‐05C Eco‐district Feasibility and Incentives ESD 18‐01 Encouraging Heat Pump Water and Space Heating LCS 19‐01 Options and Benefits of Establishing a Library Foundation OCM 17‐01 Storing Outdoor Dining Furniture Overnight on Sidewalks on Murphy Avenue OCM 19‐01 Council Policy on Display of Flags at City Hall


Continuing Study Issues Completion Target

Estimated Completion by Spring 2020: 9 Study Issues CDD 11‐02 Downtown Development Policies for Parking CDD 16‐14 Exploring Options for Establishment of a Plaque Program for Heritage

Resources CDD 17‐09 2017 Housing Strategy CDD 19‐01 Evaluation of Right‐To‐Lease Ordinance DPW 14‐13 Scoping of Grade Separations for Caltrain Crossings at Mary Avenue

and Sunnyvale Avenue FIN 19‐01 Evaluate Options for Revisions to the Sunnyvale Business License Tax HRD 19‐01 Develop a Workforce Initiative That Creates Partnerships to Develop a

Pipeline for Students to Enter Public Sector Employment LCS 19‐02 Consider Options for Establishing an Amnesty Program for Overdue

Library Material Fines DPS 19‐01 Ban the Sale of Flavored Tobacco Products


2020 Proposed Study IssuesOCM, 1

CDD, 15

ESD, 2FIN, 1ITD, 1

LCS, 3

DPW, 11

34


Proposed Study Issues Requiring a Budget Supplement

ITD, 1

CDD, 12

ESD, 2

LCS, 1

DPW, 10

26

$3.93 Million

Mid‐Year Budget Update for 2020

Tim KirbyDirector of Finance


Agenda

Expenditure Overview

Major Revenue Overview

Pension Update

Recommended Budget Approach

Conclusion


Major General Fund Revenues

Stable

FY 2019/20 Trend vs. Planned

CityControlled

Percent of General Fund

Budget

Property Tax 42%

Sales Tax 15%

TOT 10%

UUT 4%

Total 71%

* View as a group, not individually


$687,383

$1,795,171

$1,684,767

400K

600K

800K

$1.0 M

$1.2 M

$1.4 M

$1.6 M

$1.8 M

$2.0 M

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Single Family Average Price History

Median Assessed Value: $610,000


Number of Single Family Full Value Sales

‐

100

200

300

400

500

600

700

800

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019


Property Tax Revenue Growth History

‐5%

0%

5%

10%

15%

20%

25%

09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21

Residential Non‐Residential(Comm, Ind, Other)

Residential Value 60%

Nonresidential Value 40%


Source: HDL

Sales Tax by Major Industry Group

$0K

$400K

$800K

$1,200K

$1,600K

$2,000K

$2,400K

3Q16

4Q16

1Q17

2Q17

3Q17

4Q17

1Q18

2Q18

3Q18

4Q18

1Q19

2Q19

3Q19

Business And Industry

State & County Pools

Autos And Transportation

Restaurants And Hotels

General Consumer Goods

Building And Construction

Fuel And Service Stations

Food And Drugs


Transient Occupancy Tax Historical

$4 M

$6 M

$8 M

$10 M

$12 M

$14 M

$16 M

$18 M

$20 M

$22 M

$24 M

9/10 11/12 13/14 15/16 17/18 19/20


Transient Occupancy Tax FY 20/21 Assumptions

Economy Hotels

PremiumHotels

Occupancy Rate

70% 77%

Avg. Room Rate

$135 $216

Available Rooms (1)

1,342 2,348

(1) Exclude rooms exempt from TOT


Utility Users Tax Historical

0

$1.0 M

$2.0 M

$3.0 M

$4.0 M

$5.0 M

$6.0 M

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Telecom Gas Electric


Development Revenues

$0

$5

$10

$15

$20

$25

$30

$35

05/06 07/08 09/10 11/12 13/14 15/16 17/18 19/20*

Industrial Commercial Residential

*Year to date through January


‐

5

10

15

20

25

30

35

40

Water Sewer Solid Waste

Millions

FY 2019/20 Year to Date FY 2018/19 Year to Date

Utility Revenues

Rate Increase: 0%

Rate Increase: 4.0%

Rate Increase Varies


Utility Revenues

$0

$10

$20

$30

$40

$50

$60

10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20

Millions

Water Fees Sewer Fees Solid Waste Fees


Agenda



Pension Update


Conclusion


Year to Date Operating Expenditures by Department – All Funds

$0 $20 $40 $60 $80

Public Works

Public Safety

OCM

OCA

NOVA

Library and Community…

Information Technology

Human Resources

Finance

Environmental Services

Community Development

MillionsActual To Date Budget to Date

Year to Date: $20 M Below Budget

Operating Data through January 31, 2020 (58.3% of the year passed)


General Fund Operating Expenditures by Department

$ M $10 M $20 M $30 M $40 M $50 M $60 M $70 M

Community Development

Environmental Services

Finance

Human Resources

Library and Community Services

Office of the City Attorney

Office of the City Manager

Public Safety

Public Works

Actual Budget

Year to Date: $6.8 M Below Budget

Operating Data through January 31, 2020 (58.3% of the year passed)


Operating Expenditure Pressures• Traffic Signal Maintenance + $50 K per year

• Software as a service + $250 K per year

• Tree pruning contract increases + $200 K per year

• Aligning Public Safety Overtime budget, cost still in development


Pension Update

Agenda




Conclusion


Pension Liability Belonging to Retirees and Inactive Employees

State Average City of Sunnyvale

Miscellaneous 56% 57%

Safety 67% 71%


Pension Demographic Information ‐Miscellaneous


Pension Demographic Information – Safety


Pension Contribution FY 19/20 vs. FY 20/21 Rates

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2021 2025 2029 2033 2037 2040

FY 19/20 Safety FY 20/21 Safety FY 19/20 Misc FY 20/21 Misc



Agenda



Pension Update

Conclusion


FY 2020/21 Recommended BudgetOverall budget approach:

•Position the City for economic volatility

•Maintain a balanced budget for 20 years

•Continue to be cautious and thoughtful with revenue projections

•Manage operating and capital cost escalations

• Identify uses for Service Level Set Aside


FY 2019/20 Recommended Budget

• Focus on Operating Budget

• Currently evaluating operating expenditures and major expenditure assumptions

• City Manager reviewing and evaluating base and adjusted budgets – hold on new additions

• Budget Workshop End of May

• Public Hearing and Budget Adoption in June


Conclusion

Agenda



Pension Update


2020 Study Issues/ Budget Issues Workshop

Documents

Transcript of 2020 Study Issues/ Budget Issues Workshop