City of La Palma Proposed Budget Overview Fiscal Year 2013-14
May 7, 2013
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Tonight's Agenda Proposed Budget Overview All Funds Department
Budget Highlights and Discussion City Council direction Discussion
of May 15, 2013 Study Session goals 1
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City Manager's Budget Message Fiscally Sustainable Budget
Outlook and Assumptions Budget Strategies - 4 "R's" Budget Document
Improvements 2
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Improved Budget Document Priority Based Budgeting Expanded
Staffing Information Functional Descriptions Performance Measures
2013 City Council Goals Status Economic Trends Challenges, Issues
and Opportunities 3
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City Council Goals Balanced Budget Create Proactive Economic
Development Strategies Communications/Engagement Maintain Quality
of Life Maintain High Public Safety Levels 4
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Economic Trends Property and Sales Tax Impacts Economic
Development Assets Tesoro revenue Interest Rates 5
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Whats on the Horizon? Challenges, Issues and Opportunities
Tesoro - Economic Diversification Capital Investment Health Reform
Labor Pension Changes Organizational Efficiencies 6
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Reason for Optimism In Summary Positive Opportunities Tesoro 20
year operative agreement New development and new businesses New and
more comprehensive reserve policies Creation of an irrevocable
trust for OPEB liabilities Update of the Master Fee Schedule 10
year capital plan 7
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The Journey So Far Budget Development began in December
Continuous review, analysis and discussion Public review and input:
Three study sessions (one on May 15) Three City Council meeting
presentations so far Two more scheduled All of this gets us here
8
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Total Revenues, All Funds $17,722,595
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Total Expenses, All Funds $19,994,670
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General Fund Summary 11 Projected Revenues$8,328,100 Estimated
Surplus / (Deficit)($263,545)
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General Fund Revenues $8,328,100
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General Fund Expenditures $8,591,645
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General Fund Budget Department Cuts: Administration $ (32,230)
Community Development $ (144,220) Finance $ (8,000) Police $
(77,300) Public Works $ (44,500) Recreation and Community Services
$ (157,050) $ (463,300) Citywide Cuts: Energy Savings $ (30,000)
Reduce Brea IT Service (2 days/week) $ (23,100) Eliminate
Management Wellness benefit $ (4,500) City Manager COLA Elimination
$ (2,500) OPEB Trust Savings (One-Time) $ (91,000) $ (151,100)
TOTAL EXPENDITURE CUTS$ (614,400) Reductions and Revisions Progress
Towards Fiscal Sustainability
General Fund Budget 16 Use of Reserves Progress Towards Fiscal
Sustainability One-Time Use of Reserves for Operating (Bridge
Amount) $ (263,545) Purchase of Street Lights from SCE $ (600,000)
Energy Capital Projects $ (1,280,000) 800 Mhz Radio Upgrade
(Police) $ (200,000) City Council 2013 Goals (Start-up Expend) $
(50,000) TOTAL ONE-TIME USE OF RESERVES (FY 2013-14) $
(2,393,545)
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General Fund Reserves 17 Projected General Fund Balance
06/30/2013 $ 13,618,200 Estimated FY 2013-14 General Fund Expend $
8,591,645 Estimated FY 2013-14 General Fund Revenue $ 8,328,100
Variance (Deficit) / Surplus $ (263,545) Transfer to COR $
(400,000) Triple-Flip Over-Allocation $ (162,500) One-time Use of
Reserves $ (2,130,000) TOTAL RESERVES USE $ (2,692,500) Projected
General Fund Balance 06/30/2014 $ 10,662,155 06/30/2014 FB as % of
Expend124.1% Dollar Amount Reserves above 100% $ 2,070,510
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Impacts and Consequences 10.0 FTE eliminated / proposed for
elimination FY 2012-13 Adopted Budget: 64.0 FTE FY 2012-13 Amended
Budget: 60.0 FTE FY 2013-14 Proposed Budget: 54.0 FTE Reduction in
building/planner customer service Reduction to Public Works
response time Reduced technology support Reduced part-time support
(Recreation) 18
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Impacts and Consequences Reduce Concerts in the Park (from 8 to
6) Eliminate awards, advertising, supplies for: CAB Events (Arbor
Day, Memorial Day, Tree Lighting, etc) Halloween Carnival Fitness
Run For Fun La Palma Days Reduce overtime, training, professional
association memberships Reduced tree maintenance Suspension of
Police K-9 program 19
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Department Budget Highlights and Overviews
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Administration City Council Legal Services City Manager City
Clerk Community Promotions Intergovernmental
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Administration Functional Tasks City Manager Organization-wide
Management Oversee City Budgets Monitor Legislative Activities City
Council Support Support City Council Activities City Clerk Manage
Legislative and Business License Processes Conduct Municipal
Elections Public Records and Brown Acts Community Promotions Manage
SEAACA Contract Maintain Website Oversee OCFA Agreement Legal
Services Oversee City Attorney and Labor Attorney services Human
Resources Labor-Management Relations Benefits, Recruitment,
Classification, Performance Management Training Risk Management
Protect the Assets of the City Through Proactive Activities &
Policies Manage Claims Against the City Identify Risk
Hazards/Promote Safety Information Technologies Manage Citywide
Technology Infrastructure and Equipment 22
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Administration Performance Measures 23 # of City Employees per
1,000 Population # of Press Releases and E-Blasts Issued # of
Agendas/Staff Reports Posted to Website # of Sick Leave Hours Used
per 1,000 Hours Worked % of Business Licenses Renewed Online # of
Workers Compensation Claims per 100 FTE
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Administration Changes and Impacts FY 2013-14 24 Changes Across
the board reductions in Meetings, Trainings, and Supplies budgets
Elimination of Minutes Clerk at meetings Reduction in information
technology support 4% savings on City Attorney costs Impacts Less
meeting and training dollars available for City Council and
Administration staff Reduced service to public at meetings and
reduced productivity Reduced ability to respond to technology
issues/problems Potential liability risks associated with utilizing
City Attorney less
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Phone System Upgrade (carried over from FY 2012-13) Labor
Negotiations as current MOUs expire June 30, 2014 City Attorney RFP
Information Technology RFP Administration FY 2013-14 Budget
Highlights 25
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Finance Department
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Finance Functional Tasks 27 Ensure fiscal stability through
long-term financial planning Provide internal financial support to
all City functions Ensure accounting and financial rules followed
Fulfill all State Controller and Grand Jury requests for payroll
data/reports Analyze projected expenses to ensure adequate cash
flow Provide full spectrum of utility billing customer service
Oversee internal controls
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Finance Performance Measures 28 Promote use of auto pay/credit
card payment options for all utility customers Convenient, customer
friendly The way business done in 2013 Implement ePayables invoice
payment process Increased efficiency Lower costs
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Reduced training budget Will need to find low cost/free methods
for training and updates Reduced use of consultant services
Elimination of property tax consultant 12.0% Reduced expenses since
FY 2010-11 Finance Changes and Impacts FY 2013-14 29
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Continue improved financial reporting: Expanded quarterly
reports Continue updating/modernizing reserve policies: Special
revenue and Enterprise funds next Explore new investment options
(within City Council approved policies) Continue support of
citywide operations through sound financial practices Finance FY
2013-14 Budget Highlights 30
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Community Development Department DIVISIONS Land Use
PlanningBuildingandSafety Code Enforcement Econ Dev Housing
Successor Agency Responsibilities
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Community Development Functional Tasks Administration Manage
Contract Personnel Implement Housing Programs Implement ED Plan
Building and Safety Plans examination Permit issuance Construction
Inspection Code Enforcement Prevent, Detect, & Investigate Code
Violations NDPES Compliance FOG Program Planning Current &
Advance Planning Entitlement processing CEQA compliance 32
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Community Development Performance Measures Administration
Number of contacts made Number of Articles prepared % of new B/Ls
Building and Safety Number of Plan Checks Number of Permits issued
Number of Inspection Code Enforcement Number of Inspections Number
of Cases Closed % of Citizen initiated cases Planning Number of
entitlements processed Number of reports prepared % of Plan Checks
in 7 days 33
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Changes: Reduction of 33% in full-time staffing levels
Elimination of department Administrative support and Permit
Technician Impacts: Consolidated public counter hours Walk-ins 7:30
am to 12:00 pm Appointments 1:00 pm to 5:30 PM Community
Development Changes and Impacts FY 2013-14 34
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22.2% Reduction in Personnel Costs 18.7% Reduction in
Maintenance and Operations Expenses 20.2% Reduction in Total
Departmental Expenditures Community Development FY 2013-14 Budget
Highlights 35
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Recreation and Community Services Making a positive difference
in our community by encouraging citizen involvement fostering human
development and strengthening community through people, parks &
programs.
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Recreation and Community Services Functional Tasks 37
Administration Frontline customer service for program registration
and facility reservations Community partnerships Staff Development
Youth and Family Services Recreation programming for youth, teens,
& families Teen job training Water safety classes Neighborhood
and Community Services Citywide special events Volunteer
recruitment, training, and retention Staff support to Community
Activities & Beautification Committee Health and Wellness
Education, Safety, and Recreation contract classes Social Services
(USDA, Meals On Wheels) Facility Operations & Resources Safe
and Attractive spaces and activities for recreation, sports,
meetings, etc. Community shelter during disasters Marketing
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Recreation and Community Services Performance Measures 38
Number of volunteer hours Number of facility rentals Number of
water safety/fitness class participants Corporate Connection
Sponsorship Revenue Customer Satisfaction Survey
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Elimination of 3.0 FTE 1.0 Full-time Senior Office Assistant
2.0 FTE Part Time Staff Customer Service Impacts Central Park
Staffed Hours Reduced Elimination of Teen Afterschool Program
Contracting Pee Wee Sports All program materials/supplies reduced
Recreation and Community Services Changes and Impacts FY 2013-14
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26.6% Reduction in Personnel Costs 15.4% Reduction in
Maintenance and Operations Expenses 23.5% Reduction in Total
Departmental Expenditures 11.7% Revenue Increase General Fund
Dependence Reduced FY 2012-13: 76.2% FY 2013-14: 65.3% Most
programs/services maintained Recreation and Community Services FY
2013-14 Budget Highlights 40
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Police Department
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Police Functional Tasks 42 Patrol Investigations Traffic
Enforcement/Accident Investigations Communications and Records
Citywide Disaster Preparedness Quality of Life Programs and
Service
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Police Performance Measures 43 Response Times to Priority 1
Calls for Service (2:39) Part I Crimes Reported (358 -18/340) Case
Closure Rates Crimes (33%) Number of Total Arrests (788) Accident
Investigations / Traffic Enforcement (193-63) Citizen/Internal
Complaints (IAs) Overtime Costs (How managed)
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Researching Feasibility to Outsource Dispatch Services Closed
Front Counter New CAD and Records Management System (Spillman)
Increased Efficiency/Accuracy Reorganization-Management Analyst/ASB
Sgt Outsource Disaster Preparedness Suspension of K-9
Program-Increased reliance on Mutual Aid Police Changes and Impacts
FY 2013-14 44
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Reduction in Crossing Guard Contract Costs $8,000-Cypress
Shared costs: $4,000-AUHSD, $4,000-Centralia Reduction in Annual
records system Maintenance Fees ($65,000) Realization of RNSP Asset
Seizure Funds Est.$160,000 for FY 2013-14 A Potential Cost Savings
by Outsourcing Dispatch ($50,000- $100,000) Suspension of K-9
Program ($6,500) Police FY 2013-14 Budget Highlights 45
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Public Works Department
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Public Works Functional Tasks 47 Administration Administration
Manage Contracts Administration of field and office operations
Customer service Employee Administration Engineering Engineering
Private Development Review Project Management of CIP Construction
Inspection Utility Management and Inspection (SCE, Time Warner, So
Cal Gas, etc.) NPDES Compliance Traffic Safety Committee
Maintenance Maintenance Block Walls, Sidewalks, Graffiti, Parks,
Street Trees and Medians, and Street Lighting maintenance Street
Repairs, Traffic Signals, and Traffic Control maintenance
Facilities Maintenance
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Public Works Functional Tasks 48 Water Water Treatment
Distribution Water Billing Customer Service Inquiries Sewer Sewer
Management of the sewer maintenance contract services Management
and Inspections of contract services
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Public Works Performance Measures 49 Respond to and eradicate
95% of graffiti complaints within 72 hours of receiving notice
(Council goal = Maintain quality of life) Identify and apply for at
least one grant award funding source for a street repair project by
June 30, 2014 (Council goal = Balance the budget) Continuously
improve the overall pavement condition Citywide and minimize claims
to the City due to damaged infrastructure (Council goal = Maintain
high public safety level)
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Public Works Changes and Impacts FY 2013-14 50 Changes:
Reduction of Maintenance Worker from Full-time to 27 hours per week
Impacts: Graffiti and miscellaneous aesthetic duties response time
may increase Potholes and miscellaneous potential liability items
response time may increase Less staff for events such as La Palma
Days, 4 th of July run, etc. Less staff for night and weekend
rotation for on-call emergency duties
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Public Works FY 2013-14 Budget Highlights 51 32.5% Reduction in
Personnel Costs for one Maintenance Worker Maintain budgets the
same as FY 2012-13 even with increase in State
requirements/mandates
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Capital Improvement Program $2.86 million proposed for FY
2013-14: Arterial and Residential Rehabilitation projects Water and
Sewer improvements Measure M, Gas Tax, Water Fund, Sewer Fund, and
Capital Outlay Reserve (COR) funding sources COR funded with
$400,000 transfer from General Fund
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CIP Summary by Project Type FY 2013-14 and FY 2014-15 ProjectFY
2013-14FY 2014-15 Arterial Streets$375,000$900,000 Residential
Streets655,000355,000 Water Improvements535,000465,000 Sewer
Improvements525,000 Community Center and Parks175,0000
Facilities595,0000140,000 Total:$2,860,000$2,385,000 53
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Budget Schedule Study Session #3: May 15 Budget Question and
Answer: May 21 Public Hearing and Anticipated Budget Adoption: June
4
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City Council and Public Comments and Questions
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City of La Palma Proposed Budget Overview Fiscal Year 2013-14
May 7, 2013