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HomeMy WebLinkAbout3B--Development of the City of Redding biennial budget for Fiscal Years 2023-25 CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: February 16, 2023 FROM: Barry Tippin, City Manager ITEM NO. 3B ***APPROVED BY*** btippin@cityofredding.org btippin@cityofredding.org SUBJECT: 3B--Consider development of the City of Redding biennial budget for Fiscal Years 2023-25. Recommendation Accept presentation and provide direction regarding development of the next City of Redding biennial budget for Fiscal Years 2023-25. & 202 3 p 202 2 0 o 2 h , 6 s 1 k y r r a o u r b W e F t e g d u B Biennial Budget e t a d p U t 23 e - g d u B r a e Y - d i MFiscal Year 2022 e 2 v 2 r / e 1 % % s 3 e / 2 d R e 7 1 e 6 t v 3 l . .r c 2 a / e e u j s 0 8 t 2 o e 3 c r / e 1 AR 2 P6 c n a l a B Projected 6/30/23 h s a C Actual 12/31/22 d n u Actual 9/30/22 F l a r e Actual 6/30/22 n e $- $5,000 $25,000 $20,000 $15,000 $10,000 G r e s s r d e e n e v u o s r u n s n s n o n n i o e n l i l l o e i li o e i it t b Mc p v Mc e j e0 x j 7 . e o . o 1r 2r m E$p R$p e c e Budget Actual D u r h T Expenses l a u t c A o t Revenues t e g d $- u $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 B Other s l i a t Other Governments Revenue from e D Internal l Departments a u t Building Related Fees c A January Other Taxes o t t December e Cannabis Tax g s n d o Transient i t u Occupancy Tax c e j o B r p s r Property Tax e e e v o u u n n o i n l l e Sales Tax i e v M 7 e . v $- 2 R$ e $500,000.00 $(500,000.00) $2,000,000.00 $1,500,000.00 $1,000,000.00 $(1,000,000.00) $(1,500,000.00) $(2,000,000.00) R Other Taxes Cannabis s e u FYE 2023 n e v FYE 2022 Transient Occupancy Tax e R FYE 2021 x Property tax a T l a c i Sales tax r o t $0 s i $8,000,000$6,000,000$4,000,000$2,000,000 $18,000,000$16,000,000$14,000,000$12,000,000$10,000,000 H 9 9 4 , s 8 8 l 7 , i 1 $ a t General Government e 4 5 D 3 , 8 3 l 6 , 1 $ a Community Services u t c 7 4 8 A, 9 1 4 $ o t Development Services t e ) 9 4 5 g , 0 7 4 ( d $ Public Works u s n o B i t c s ) 3 e 7 j e e 6 , o 7 r r r 4 Fire 6 p , 1 u ( r u $ t e i t d i n d u d n n o e n ) i l 6 l 0 i p 6 , e 9 M 6 x 7 Police ( p 1 $ E$ x E 3 2 2 - 2 0 2 Y F s t s e u q e R t e g d u B y t i C d n u l F SAFER Staffing o Range/FirearmsEmployee Training CostsPOST ProgramContract costs due to CPI r – t l –––– n a o r C l e a e c n $35,000 $56,000 $25,000 $39,330 im $120,000 Equipment Costs li e r on i e P ooo F o A o G d e u n i t n o C – d s e n s c i e v u c ir v e r F S e t Employment Costs l S Mailing FeesBank Service FeesOperating Materials/SuppliesComputer Hardware Employee Training & Travel n – y e ––––– a t i k m r rn p eu l o e l m C e $2,500 $1,500 $1,700 $2,000 $6,700 n $14,000 mv y t ioe e C oooo C o D o G s t s e u q e R t ) d e n u g F e d c i u v r e B S l a s n r k e t r n I ( o s e Utility ExpensesWAPA Foregone PowerOperating Materials & Supplies t W Specialized ServicesVehicle Fuel & LubricantOperating Materials & SuppliesVehicle Fuel & LubricantVehicle Fuel & Lubricant a ––– Benton Landfill Maintenance c –––r–– e t –o e c t s L i a a l A w W r eS b t e d U t$780,000 $340,000 $30,000 $30,000 $75,000 s$15,000 $800,000 $8,000 $10,000 i / l u aa oT W ooooo W oo S o E o P s t s e u Drainage q – e R t e g d u Benton Airfield Air Center Vehicle Fuel & LubricantArc Flash StudyVarious Cost increases Security Contract CostsConsultant Costs Solar Maintenance B –––– ––– s t Benton Miscellaneous MaintenanceBadging CostsOther Consulting Costs r o ooo $30,000 building maintenance$10,000 $33,000 $9,000 $6,700 $5,000 $20,000 p r ooooooo i A s t s e u q e R t e Lane Project required additional overhead g d Purchased Power Cost Increases u – Meter Shop Testing & Equipment Industry StandardsMajor planned work to be completed: Canby, MR, ER Bechelli WECC Compliance Mock Audit Replacement of outdated equipment & tools B ––– –– c i r t $4,000,000 $65,000 $170,000 $50,000 $300,000 substations w/ increases to substation equipment cost$300,000 relocation than planned c e oooooo l E s t s e u q e R t e * ) g d n u d F * ) u e ) d c d ) i n n dv u r B u n F e Fu S e F e l c i s c e a i v c )vn r i rr d u ve 1297 Riviera Dr ee r n t S – e S u n l I o l S F (a a l n es n ar e r c e ne i i et r vt g n re n nI t o I el( (n Io S s t ( a n l e n l sh a c e i l Block 7 Project increases with associated Program IncomeLiability Claims ExpenseERP Project c n n vProfessional Services & Consulting Land Purchase Building Improvements r e –m–o– r i Secured Storage & Shredding FeesTraining & New Hire Costs e – –t– eT te e –– a g n S n I c a i ( c or i n n t e s g a u ay d s n ir o M m i l m $313,920 $55,300 $2,400 $700,000 $20,000 $781,400 $7,000 s o r p k $135,000 ucm o s f oeio m n M H oo R o R o C o I o E oo : n o i t a! u d o Y n k e n Cycle Budget Report and approve a - h m T m o c Budget Resolution st e R Accept Mid81 t n e m p o l e v e D t 25 - e g d u B l a i 24 & 2024 n - n e i B2023 s e g d n n a u h s F C e l s v r i a e t i ra gc c e e i l ne y n ij - o e db s d i P h n d G O ct u M n s a e o Fo& t n 2 og Br o s 2 sd iA l - tp n u 3 1 a P B pp a 21 Bo RE A o m00 G AtP & L u22 r e l s f O n n n e g sa o o a w o g dl n& A r g a pu P p s e en n e tiB uUr n u i a ndt a o I nr i ww n e M eos v oo u UllY vf pny ll - r t r eEei ie oo 0 RRFFRAP1C e ooooooooo v O s ek r uo a no l e t e Y vu - e eto r ad ic i xd M a m to t o r m r n o o j a o r af e c y e mn f o n i no i t s s o a a t w e e r st e m ie ua u r vc c d o n f en o p n e FRiuU v ooo e R 2.5% 2.5% 2.5% 4.0%4.0%2.5%4.0% (4.5%) – –––––– – 24 25 26 27 28 29 23 ------ - Assumptions FY 23FY 24FY 25FY 26FY 27FY 28 Thereafter FY 22 Actual Recommended Prior x a T s e l a $45,000,000$40,000,000$35,000,000$30,000,000$25,000,000$20,000,000 S 3.0% 7.3%3.0% 3.0% – ––– 23 24 25 --- Assumptions FY 22FY 23FY 24 Thereafter Actual Recommended x a Prior T y t r e p o r $35,000,000$33,000,000$31,000,000$29,000,000$27,000,000$25,000,000$23,000,000$21,000,000$19,000,000 P 4.0% 4.0% 4.0% (8.9%) – –– – 24 25 23 -- - Assumptions FY 23FY 24 Thereafter FY 22 x a T y c n a Actual p u c c Recommended O t n e i s n $0 a r $8,000,000$6,000,000$4,000,000$2,000,000 $12,000,000$10,000,000 T 4.0% 4.0% 4.0% – –– 24 25 -- Assumptions FY 23FY 24 Thereafter s e Other Taxes Actual x a T r e h Other Taxes Recommneded t O & Cannabis Actual s i b a n Cannabis Recommended n $0 a $500,000 $4,000,000$3,500,000$3,000,000$2,500,000$2,000,000$1,500,000$1,000,000 C y r 2031-32 a 2030-31 m m 2029-30 u 2028-29 S e 2027-28 u n 2026-27 e v 2025-26 e 2024-25 Recommended R Prior x 2023-24 a Actual 2022-23 T – 2021-22 d n 2020-21 u F 2019-20 l a 2018-19 r e 2017-18 n e $95,000,000 $90,000,000 $85,000,000 $80,000,000 $75,000,000 $70,000,000 $65,000,000 $60,000,000 $55,000,000 $50,000,000 G 3 2 - 2 2 0 2 4 n i 2 U - 3 n E 2 o i 0 t R 2 e l n p i m g o m e r o b c F t s t c n n e a j e s o o rn m L o y P i t a – o p p i off - n O d d o i e a le l ll i u b R d m a l ei e 4 ha 10 Year loan w/ no payments for 2 yearsApproximately $475K per year for 8 yearsInterest using historical pooled cash ratesContinue with current financial plan paymentsOne Time PayInterest only for period and pay over remaining years thereafter . c i cv 3 oooooo l $SA o ooo P U E 4 2 - R 3 2 0 m 2 o 9 n r i 1 g F 0 e 2 b r n s e t a b n o o e t s L c $3.7 Million n m - d o y O i k e t a i – r l off p p - p a n O pd o i ae P le l ll it u b r s d m a e l e ei r 6 Balance at 6/30/22 15 Year loan w/ no payments for 4 yearsApproximately $400K per year for 11 yearsInterest using historical pooled cash ratesContinue with current financial plan paymentsOne Time PayInterest only for period and pay over remaining years thereafterNo pay back c ha .e t cv 3 oooooooo c n $ISA o oooo S s n o i t a d n e m m o s c e e i t i R l i r c a a e F Y - d d i n u M $2.5 Million F - 2 l 2 a 8 upgrades - - r s 1 e n 2 n o 0 i e t 2 a G t n r o S e Fire Station 9Fire Station 1Budget AvailableRecommendation: Use available funds & use available cash flow to do as much as possible. Station 9 will be a future conversation as funding permitsApproved $250K per yearRecommendation: Reduce to $125K per year s e h r t e i oooooo t FO a d oo p U – s n Total $300K o i – t t a n d e n 24 - m e e Total $650KTotal $500K m c –– a m l o New total $450K per year p New total $235K per yearNew total $450K per year c – e –– e R R t s r n a a e r Additional $245K per year e e – m Y p m - i d a i u C q M E n Approximately $500K per year 2 Additional $450K per year Additional $150K per year r – –– 2 & o - 1 k W 2 c 0 y o t 2 d Recommend reducing by $200K Recommend reducing by $95K Recommend reducing by $50K S o n ooo B g od Rolling Stock Equipment Replacement Rolling Stock New Estimate n e i s e l u oooo l c e i t n FirePoliceAllocated $750K per yearPolice developing plan for implementation in 2023 l o i at o R oooo dn P po oo UC n n o i a l l l i p r m a 2 e 0 y . 6 0 $ 1 s - y m b e t d I e s e b s r t o o a n s L 26 o b d - i e l n 25 a l - p u i o i ne l m l $1.25 million U i eb - ) v 5 m o $1.27 million n $1 million e g t 2 - - . o 5 i R n . ld 3 Starting 2025 l i i 2 e $ d – t Starting 2024 d $ - n M c– - u n de $2.5 million 0 F- n p r u 1 l x a e $ t a F e b r a o d s et w a l A n l m p o i Riverfront Specific Plan Street Maintenance Police Park Rangers Stillwater Park Rangers Additional beat e tr e P U t SBG(oooo I oo R oooo A r a e y r e p K 3 y 6 t i $ n f s u to d r e s o e g p c n p i g o o vr $1 Million n ap - i e s d ilw d n v ae n o o un i r t u n pg f a n n u si a e t eu c t e s R t u a l s raf i d k m e & i t s n i x a g r o o u n r l i e NPV Savings Approximately Short TermLong TermSave costs of issuance by combining with refundingGeneral Fund and current economic conditions t p a B m a pv i TA o R oo E oo 3 1 oooo 0 2 $700K per year - t n e r o e i ut t g a c d d u rn 3 Fire Captains t u – e Approximate Cost Needs of Community, Airports Budget, General Fund budget S B m t $245K of approximate $600K max PILOTARFF o General Fund provides one day loan to Airport to resolve negative cashBased on a variety of factors o n t m e r o r Airport pays partial PILOT to General Fund o Airport receives services from General Fund o Airport Grants and PFC activity cause negative cash at year end o Eliminate PILOTDetermine amount of GF Service performed and determine appropriate charge for services o Consider granting loans to Airport that are more durable in nature to assist whe appropriate rc o ue p C ooo R ooo r i oo A r e v l o y a d al c U h pu sh si Et eo i r a F R w w p f C o yd o d ot t ee U e t e hn s Esc st r r r ea t a R u u v p s e rb eo e emr zcr e i m i s i la ev i et teoe e a hn URNtYRIh ooo 1 9 0 2 5 8 n 3 2, 5 a , , l 5 8 3 P 2 2 5 t 3 y 7 0 t , , e 9 0 f 1 a n S $$ $ e 932 0 4 m 23 493 7 4 16 996 2 6 ,,, 00 n , , ,, 921 a 5 y 0 l 55 475 7 5 05 P 411 7 4 94 s,, a 33 u 11 o e n p a l l e c e s i r $ $$$ $$ M $ P S R t n t e E n m e y ds ma s yng p P d aun e i r n l F P v Pu l a s y l laF g S r a h r l tn a e u i e a nU n nv t h o et E na o MASGROT C 2 2 / 0 3 / 6 s e c n 8 y a t l 0 i a l 5 i, B 0 b 3 R a 4 F i , 9 4 C L 6 0 5 A 0 1 7 d , – 6 $ , 3 e - y 9 t 6 in l d 0 6 i a , l 8 b n , 4 P a 4 9 i u f s 1 $ L $3,912,698 u $ - $28,517,590 n -- n - o n n o e i U a a l l sn P na P l n l $245K of approximate $600K max PILOT e y etS o P i c e R General Fund o General Fund t f s s i e aA n NM o SP o e oooo P Cost 8% = - – 7% – 10.54% Employee Share – - ? Employee Cost - d e d n Total 20% Total 16.14% u f – – s n o i y t s i l i 2.125% = Net Cost City 10.875% n b – a e t i s L P o Classic (43% of Group) Share PEPRA (57% of Group) Net Cost City 8.14% d C e e l r d Miscellaneous blended rate is funding rate oo Cost of the plan including retired and active employeesIE investments gains/losses are 20 years with 5 year ramp up a n a m u Based on Percentage of pay to employees o“UAL Payments” are scheduled required payment like debt o Amortized using CalPERS amortization rules o rf on w N o U oo o H oo PARS Miscellaneous s t n Safety e General Fund UAL m - y 8,000,000 6,000,000 4,000,000 2,000,000 12,000,000 10,000,000 a P y t i l i b Misc Plan Other Funds a i L d Misc Plan GFPARS Other Funds e d Total City UAL n u f - n Safety PlanPARS GF 5,000,000 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 U ? s t s y e o n c o n m o i e s v n a h e s s p o a t c g r l n a i a e d n y r o i a s ht i t c g nd a e ud r e o a s o me y r d ai a u p y d t q e i e r e r i r p C u s y q e l n t e h o r n t i t e y r p n r a o a u p r c c t Fund a Section 115 TrustSend additional UAL payments to PERS/PARS directly e s t y h t u t a i oo h MCO ooo W h s a c l a n o i t i d d o a g d u e s r t o i i f y u e q s n e a r e y 2d B l a 2 u / t P o 0 n g 3 w e / n i 6 s s m e y u y r t $54,940,168 i $14,520,686 lu o - d i - l s e b p a d a i e n m L u m e f t B s n s yt l E o t n o i t P General Fund n e P a e O o rm g r i Unfunded Liability City analyzes current retirees during biennial budgetThrough this process budget provides resources to make required payments tr y t e i eu a ooo h NCMp t ooo O r o n f r o is a s y s u e e ic i y o sl c i tr no e ea e d P v g p l i f xd m c r o eu n e b ts d u t l no c gr a i a a naC n p oe s ly n y e mb e i id u a bn d n g aee e n d r i c i v i n z mu e o wy r ulq t yi l la le i ed r an c be tas n t s m n u y n nl u ot n e i o o i n C t t c m a d s p ct n e ih ntr s a si a m l uu n s u ow s Fo t a P s a lc nd s i r o e a ge t as r t a i s n m eis a sdf e e f k n Council Policy 412Council Policy 219 d eey k m Y a a e ssp te a e oo – t TGUUmUSiK 0 1 oooooo w r o o l j e a b m g s ’ n i y t p i p C o r r d o f f o s s t n ec a t l a a p p l d a pm i i u c le n t a a i a n n g i i f nt i e e i m 2 g b 1 n to t s a 4 r as - y gen l c na i tl l o lap o sss P eee e l rrr i iii v sr c uuu d e n qqq s n eee u e u o RfRRr C ooo s t t ro n j o o e e n f l l m go a t y n V i t a l i f n p f o e sL y m e tA i i te i rU C u C g s s r n n ai e o e d hi tt u l m n on c o e ir e n i s e h m t s v s t ey o e l ls c b s a o e n cc o ri R t fl i e t e d c c a n e e n e 9 n rn p o i 1 o s c G s 2 m r dr g m e y ne n t o ip c a r i r e fl l l uy d o a g c d t s n P s i p da l de i u e m w tr ed c k a eu m l n n% c e e c r t u a3x n o CSb7eI C oooo 3 2 - 2 2 31% 0 2 Y FireDevelopment ServicesCVB/Convention Center F – n 8% o 50% i t 3% c 4% 2% 2% n u PoliceCommunity ServicesNon DepartmentalLibrary F Discretionary Budget y b s e r u t i d n e 25% p x E FireParks & RecreationGeneral Government & Other d 40% 11% n u F 7% Total Budget l 6% a 3% 8% r e PolicePublic WorksDevelopment ServicesDebt n e G s e v t i y t n y c c e r n e u m j e t r e b n a g e p O a C t s n t n n & s a e 1 a r s M 2 l m l T a p e a i &o o h l ct e n nf G v o ao r i e yt nt t i e a nD e F g c f e i c a ai n & m n S u t m n a r e o c m i e gl n M v m db o o o uuc y t i BPCGE C ooooo ! u o Y ? k s n a n h o T i t s e u Q