HomeMy WebLinkAboutITEM NO. 15 - 20-21 BUDGET WORKSHOPCITY OF TUSTIN
Fiscal Year 2020/21
Budget Workshop
Overview
2
Fiscal Update on COVID-19 Related Impacts to:
2019/20 General Fund Revenues & Expenditures
2020/21 Budget (2nd Year of Biennial Budget)
2020/21 Capital Improvement Program
Pension Funding Update
General Fund Reserves
19/20 General Fund Revenues
3
19/20 General Fund Expenditures
4
Total 19/20 Expenditures: $70,784,965
20/21 General Fund Revenues
5
20/21 General Fund Expenditures
6
Total 20/21 Expenditures: $72,447,779
Capital Expenditures
7
2020/21 Capital Improvement Plan
$44.7 million, including $30.3 million in projects
budgeted in 2019/20 and are requested to be carried-over.
Projects include, but are not limited to traffic and street
improvements, Water system improvements, park
projects, and improvements at the Tustin Legacy.
$350,000 of accessibility improvements that were
previously funded by the General Fund is proposed to be
funded by the Gas Tax Fund.
Projects That Are Recommended to be Deferred
South Hanger Rehabilitation ($4.1 million)
Improvements to Public Facilities ($748,000)
Pension Funding Update
8
Funded Status as of 6/30/18
(Based on Report dated July 2019)
Public Agency Average
70% Funded
Tustin
76% Funded
Pension Paydown Plan
9
In 2018 the City Council established a goal to payoff all
pension debt within 15 years.
An additional payment of $3.3 million to CalPERS was
budgeted in 2020/21 from the Land Proceeds Fund.
It is recommended that the City only pay legally required
amounts to CalPERS in 2020/21 and defer additional
paydown until financial conditions are better understood
later this fiscal year.
Even if the City did not make an additional paydown
payment to CalPERS in 2020/21, it is anticipated that
additional annual payments of $3 million to CalPERS
would recommence in 2021/22, which would allow all
pension debt to be paid-off by 2032.
General Fund Reserves
10
The General Fund Reserve Policy provides that the
City will maintain a reserve of 15% to 20% of annual
General Fund expenditures.
However, if the City Council declares a financial
emergency, General Fund Reserves may fall to less
than 15%
General Fund Reserves are projected to be $9.9
Million (14% of General Fund Expenditures) at
6/30/21
General Fund Reserves (Continued)
11
At this time, rather than declare a financial
emergency, it is recommended that the City Council
consider the following transfers to the General Fund,
which utilizes expenditure savings and would bring
General Fund Reserves to approximately $14 Million
(20% of General Fund expenditures):
$3.3 Million Transfer From Land Proceeds Fund
$1.1 Million Transfer from General Fund CIP Fund