HomeMy WebLinkAboutFY 2017-19 PROPOSED BUDGET PRESENTATION - 6.6.17Proposed Biennial Budget
FY 2017-19
$141,538,588
FY 2017-18 Total Revenue
2
FY 2017-18 General Fund Revenue
3$59,972,325
FY 2017-18 Total Expenses
4$249,339,629
FY 2017-18 General Fund Expenses
5$59,972,325
Non-Departmental Includes: Retiree Health Insurance, Animal Control Contract
$106,363,885
FY 2018-19 Total Revenue
6
FY 2018-19 General Fund Revenue
7$61,918,649
FY 2018-19 Total Expenses
8$112,569,625
FY 2018-19 General Fund Expenses
9$61,918,649
Non-Departmental Includes: Retiree Health Insurance, Animal Control Contract
Sales Tax
10
➢Sales tax revenue –3%increase for FY 2017-2019
➢Wind down of the Triple Flip in FY 2015-2016 –one-time payment ($1.48M)
Triple Flip
11
0.25% Sales Tax
from Cities
State General
FundCounty ERAF –
Property Tax
Flip 1
Flip 2
Flip 3
ERAF (Educational Revenue Augmentation Fund) –local property tax revenues shifted to support schools
➢Property tax revenue is projected to increase by 4%increase based on
information received from consultant and County
Property Tax
12
Tustin Unified $0.440
School District
ERAF $0.176
CITY OF TUSTIN $0.127
SOCCCD $0.089
County of Orange $0.062TUSTIN
OC Flood Control Dist.$0.020
Property Tax Distribution
13
OC Library Dist $0.017
OC Dept. of Education $0.016
Various Special Districts $0.054
$1.00
FY 2017-19 Use of Funds
14
NON-RESTRICTED
PARTIALLY
RESTRICTED
RESTRICTED
FUND FY 2017-18 FY 2018-19
GENERAL FUND $59,972,325 $61,918,649
BACKBONE FEE FUND $33,550,000 $0
EQUIPMENT REPLACEMENT FUND $3,248,806 $390,000
INFORMATION TECHNOLOGY FUND $2,147,500 $2,153,100
LAND HELD FOR RESALE FUND $38,140,120 $4,617,450
TUSTIN SL $654,000 $659,000
OBLIG. REIMB. FROM S.A. FUND $600 $600
CAPITAL PROJECT FUND - CIP $10,777,408 $2,196,000
SPECIAL EVENTS $420,853 $428,038
EMERGENCY FUND $0 $0
PARK DEVELOPMENT $6,206,709 $500,000
2010 MCAS TABs $15,017,669 $124,000
ASSESMENT DISTRICT $388,200 $465,700
ASSET FORFEITURE $0 $0
CABLE PEG FEE $50,000 $50,000
CDBG $1,545,547 $660,300
CFD 04-1 /06-1 /07-1 /13-1/14-1/Special Tax B $19,667,137 $12,640,987
GAS TAX $3,487,504 $1,788,280
LIABILITY $1,026,371 $1,059,411
MEASURE M / M2 $13,618,294 $949,000
SCAQMD FUND $100,200 $100,200
SUCCESSOR AGENCY (TRUST FUND)$2,400 $2,400
SUPPL. LAW ENFORCEMENT $115,100 $114,400
TUSTIN HOUSING AUTHORITY $454,745 $393,595
TUSTIN LLD $1,073,700 $1,088,700
UNEMPLOYMENT $18,000 $18,000
WATER ENTERPRISE $36,746,820 $19,337,815
WORKER'S COMP.$909,621 $914,000
TOTAL:$249,339,629 $112,569,625
PROPOSED EXPENDITURES
General Fund Expenditures
15
➢Includes Measure M2 MOE funding &GF funded CIP expenditures
➢Increase in pension contributions (normal costs &unfunded liability)
➢Unfunded liability payments ($2.7 M (FY 17-18)&$3.5 M (FY 18-19))
➢Increase in Fire Service contract
➢Includes economic development costs
➢Cost of mandates:(per fiscal year)
➢$1.3 M due to State/Federal Water Quality Regulations
➢$1.5 M for Measure M2 Compliance
➢Transfer into General Fund from Land Proceeds Fund:~$1.1 M per
fiscal year for economic development activities
➢Transfer into General Fund from Successor Agency fund,
Administrative Cost allocation of $250,000
Prior GF Fund Balance
16
➢Decrease GF fund balance as of 6/30/2017 are attributed to:
➢One-time /capital expenditures $3.5 M
➢Council Chamber renovation ($1 M)
➢City’s cost towards new OC animal shelter ($0.9 M)
➢Citywide pedestrian improvements ($0.6 M)
➢Building maintenance ($0.5 M)
➢Red Hill specific plan ($0.5 M)
Audited 15/16 15/16 15/16 15/16 Audited 16/17 16/17 16/17 16/17 Projected
Ending Actual Actual Actual Actual Ending Projected Projected Projected Projected Ending
Balance Balance Balance
Fund Description 06/30/15
One-Time
Transfer In
/
Cash Revenues Expenditures
One-Time
Transfer Out 06/30/16
One-Time
Transfer In
/
Cash Revenues Expenditures
One-Time
Transfer Out 06/30/17
100 General Fund $24,253,738 $9,818,397 $55,279,565 $57,560,194 $1,314,579 $25,496,695 $1,188,500 $55,734,000 $60,028,552 $0 $22,390,643
Projected GF Fund Balance
17
➢Policy requires 20%
➢Staff projects the fiscal year 2017-18 General Fund Fund Balance at
$21.2 M –35.3%of operating expenditures
➢Staff projects the fiscal year 2018-19 General Fund Fund Balance at
$18.5 M –29.9%of operating expenditures
➢Purpose of a General Fund Reserve:
➢Cash flow
➢Emergencies/contingencies
➢Internal financing (preserving current service levels)
Projected 17/18 17/18 17/18 17/18 Projected 18/19 18/19 18/19 18/19 Projected
Ending Proposed Proposed Proposed Proposed Ending Proposed Proposed Proposed Proposed Ending
Balance Balance Balance
Fund Description 06/30/17
One-Time
Transfer In /
Cash Revenues Expenditures
One-Time
Transfer Out 06/30/18
One-Time
Transfer In /
Cash Revenues Expenditures
One-Time
Transfer
Out 06/30/19
100 General Fund $22,390,643 $1,704,500 $57,076,330 $59,972,325 $0 $21,199,148 $1,459,900 $57,789,827 $61,918,649 $0 $18,530,225
FY 2017-19 Capital Improvement Projects
18$144,062,861
Successor Agency
19
➢The last repayment to Successor Agency
➢Last payment -$3.2 M in December 2017
➢Successor Agency advance to General Fund (Originally $21.4 M)
➢The use of MCAS Tax Allocation Bonds:
➢CIP Projects:($14.9 M)
➢Veterans Sports Park at Tustin Legacy (20043)-$6.6 M
➢Total project cost $20.8 M
➢Moffett Drive Extension from Park Avenue to east of Peters Canyon Channel
(70224)-$7.3 M
➢Total project cost $8.7 M
➢Red Hill Ave Widening between Warner Ave &Edinger Ave (70227)-$1 M
➢Total project cost $3.5 M
Policy Question
20
➢Unfunded Pension liability
•Unfunded liability is created when market returns are lower than
projected and when actuarial changes are made to the plan (e.g. the
discount rate is lowered)
•Note: Due to the lowering of the discount rate to 7.0% in FY 2020 -21, the
Unfunded Liability is estimated to grow by an additional $15,000,000 as a
result of this change, to $60,694,712
Plan Employees Unfunded Liability
(FY 2017-18)
Funded Status
(FY 2017-18)
Average Public Agency
Funded Status
Miscellaneous –All Tiers 193 $18,915,043 80.8%75.5%
Safety –Tier 1 63 $26,630,504 77.8%72.6%
Safety –Tier 2 8 -$12,333 105.8%72.6%
Safety –Tier 3 19 $5,792 97.9%72.6%
TOTAL 283 $45,539,006 79.2%
•Unfunded liability is scheduled to be paid off within 30 years, unless paid
off sooner with an accelerated payment plan, with interest charged at
the discount rate
•Note: Annual payments would remain at FY 16-17 rates (and be fully paid
off in 14 years) if an additional discretionary payment of $29,000,000 was
made today
Projected Unfunded Liability Payments
21
➢Unfunded Pension liability
All Plans EEs FY 16-17 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23
Misc (All Tiers)193 $949,762 $1,177,300 $1,559,000 $1,981,000 $2,380,000 $2,765,000 $3,102,000
Safety (All Tiers)90 $1,209,489 $1,508,974 $1,987,000 $2,512,000 $3,003,000 $3,486,000 $3,898,000
All Plans 283 $2,159,251 $2,686,274 $3,546,000 $4,493,000 $5,383,000 $6,251,000 $7,000,000
Increase from 16-17 N/A N/A $527,023 $1,386,749 $2,333,749 $3,223,749 $4,091,749 $4,840,74
9
Questions
22