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1b - Financial Summaries Section5/13/2011 PROPOSED C - 1 0 50 100 150 200 250 300 FINANCIAL SUMMARIES Total Revenues and Expenditures Summary schedules which provide a high level overview of the entire Town budget, in a fund-type summary, as well as by fund-specific and category-specific summary levels. Total Budgeted Fund Activity ...................................................................................................................... C – 3 Total Revenue, Expenditure, and Fund Balance Trend Information ............................................................. C – 4 Total Revenues, Expenditures, and Fund Balance – 5 Year Summary ......................................................... C – 6 Total Town and RDA Revenues – by Fund ................................................................................................... C – 10 Total Town and RDA Expenditures – by Fund ............................................................................................. C – 12 Total Town and RDA Revenues – by Category ........................................................................................... C – 14 Total Town and RDA Expenditures – by Category ....................................................................................... C – 15 General Fund Revenues and Expenditures Summary schedules which identify the Town’s General Fund operating sources and uses at the department and category levels. The Fund Balance Activity summarizes the General Fund sources and uses which impact the resulting ending fund balance. General Fund Revenues – by Department .................................................................................................... C – 16 General Fund Expenditures – by Department ............................................................................................... C – 17 General Fund Revenues – by Category ......................................................................................................... C – 18 General Fund Expenditures – by Category .................................................................................................... C – 20 General Fund Tax Revenues per Capita – Cities of Santa Clara County ..................................................... C – 22 General Fund Tax Revenues – 10 Year History of Key Tax Revenues ....................................................... C – 23 General Fund – Fund Balance Activity ......................................................................................................... C – 24 Operating Transfers A schedule summarizing activity by fund, of estimated fund transfers for the prior year and budgeted for the adopted fiscal year. Schedule of Inter-fund Transfers ................................................................................................................... C – 25 5/13/2011 PROPOSED C - 2 FINANCIAL SUMMARIES Fund Balance Fund Balance schedules, one which summarizes activity and ending fund balances to provide a quick look at the ongoing status of the individual funds, and another which provides a 5 year trend. Fund Balance Activity Summary – by Fund ................................................................................................ C – 26 5 Year Comparative Fund Balance – by Fund ............................................................................................... C – 28 Departmental Budgets Department level schedules provide an overview of funding source and expenditure use, by each program within the department. Department Revenues – by Program ............................................................................................................. C – 30 Department Expenditures – by Program........................................................................................................ C – 32 Staffing The labor position schedules provide a summary level view of operational staffing assignments, funding, and trends. The Personnel Changes Summary discusses staffing levels and labor costs in more detail. Departmental Staff – by Fund ....................................................................................................................... C – 34 Summary of FTE’s – by Department ............................................................................................................ C – 35 5 Year History of Funded Positions – by Department .................................................................................. C – 36 Summary of Personnel Changes ................................................................................................................... C – 37 Positions by Home Department ..................................................................................................................... C – 43 5/13/2011 PROPOSED C - 3 TOTAL BUDGETED FUND ACTIVITY SUMMARY FY 2011/12 This Total Budgeted Fund Activity Summary schedule groups the Town’s funds into four categories based on fund purpose: Operating Funds - Ongoing operations are funded out of the various Operating Funds. This includes the Town’s General Fund departmental program operations, as well as special revenue activities and internal service functions. Fiduciary Funds – These funds are held in a fiduciary capacity, with little variation in activity. The Parking District Fund facilitates a debt service function, and the Library Trusts are held for special uses for the Library. Capital Funds - Representing the capital improvement program activity, the Capital Funds reflect the significant progress made in the ongoing push in the capital program to complete projects, and the resulting decrease in fund balances. Redevelopment Agency Funds – The RDA is financially external to the Town, however, it is included in the Town’s budget to reflect the integral association between the two agencies. These funds represent the three functions of the RDA: the capital program to enhance the project area, the financing aspect of the Agency, and the affordable housing element of the program. Revenues,Expenditures, Fund EstimatedPY CarryfwrdsUse of FBEstimatedBalance Fund BalanceandandFund BalanceChange Fund Category7/1/2011Transfers InTransfers Out6/30/2012From PY Operating Funds General Fund20,732,446$ 33,424,883$ 36,266,128$ 17,891,201$ (13.7%) Community Dev Block Grant267,574 223,094 222,031 268,637 0.4% Non-Point Source59,257 135,000 135,900 58,357 (1.5%) Assessment Districts 108,731 40,200 37,100 111,831 2.9% Equipment Replacement Fund3,062,621 319,819 204,092 3,178,348 3.8% Workers Comp Self Insurance2,813,497 687,085 623,097 2,877,485 2.3% ABAG Self Insurance1,972,403 532,958 625,224 1,880,137 (4.7%) Office Stores Fund247,754 118,500 134,050 232,204 (6.3%) Mgmt Information Systems2,282,847 1,001,546 1,056,207 2,228,186 (2.4%) Vehicle Maintenance 411,225 540,100 536,200 415,125 0.9% Facilities Maintenance919,754 1,050,300 1,142,733 827,321 (10.0%) Total Operating Funds32,878,109$ 38,073,485$ 40,982,762$ 29,968,832$ (8.8%) Trust & Agency Funds Library Trust Funds869,700$ 56,318$ 479,534$ 446,484$ (48.7%) Parking District Agency Fund325,038 141,830 148,265 318,603 (2.0%) Total Trust & Agency Funds1,194,738 198,148 627,799 765,087 (36.0%) Capital Funds GFAR13,275,950$ 9,730,000$ 10,350,399$ 12,655,551$ *(4.7%) Traffic Mitigation Fund79,232 2,185,000 2,185,000 79,232 0.0% Grant Funded CIP Projects 8,081 690,150 690,150 8,081 0.0% Storm Drain Funds829,949 102,540 285,000 647,489 (22.0%) Construction Tax Fund2,400,548 51,010 - 2,451,558 2.1% Gas Tax Fund134,971 834,310 756,000 213,281 58.0% Total Capital Funds16,728,731$ 13,593,010$ 14,266,549$ 16,055,192$ (4.0%) Redevelopment Agency Funds Capital Projects1,262,871$ 660,000 715,952 1,206,919$ (4.4%) Debt Service7,684,946 8,810,055 8,849,535 7,645,466 (0.5%) Low/Moderate Housing Program- 1,666,032 406,091 1,259,941 Total Redevelopment Funds8,947,817$ 11,136,087$ 9,971,578$ 10,112,326$ 13.0% TOTAL ALL FUNDS59,749,395$ 63,000,730$ 65,848,688$ 56,901,437$ (4.8%) 5/13/2011 PROPOSED C - 4 TOTAL TOWN & RDA REVENUE, EXPENDITURE, & FUND BALANCE TREND INFORMATION *Expenditures and Transfers-Out may exceed Revenues due to the inclusion of planned and carry-forward capital projects. Approximately $14 M funding for Library project came from issuance of Certificates of Participation (COP) in FY 2009/10. RevenuesExpendituresDesignated and and Fund Year EndReferenceTransfers InTransfers OutBalance 2002/03Actuals37,405,672 41,334,324 45,747,094$ 2003/04Actuals48,158,229 42,448,325 51,456,998$ 2004/05Actuals36,878,439 40,696,344 47,639,093$ 2005/06Actuals40,170,433 35,716,244 52,093,282$ 2006/07Actuals47,575,202 40,769,411 58,899,073$ 2007/08Actuals57,785,659 54,751,856 62,238,414$ 2008/09Actuals58,959,243 51,969,286 69,273,392$ 2009/10Actuals68,176,236 62,169,732 75,479,395$ 2010/11Estimated52,378,712 66,320,898 59,749,395$ 2011/12Adopted63,000,730 65,848,688 56,901,437$ 5/13/2011 PROPOSED C - 5 TOTAL TOWN & RDA REVENUE, EXPENDITURE, & FUND BALANCE TREND INFORMATION The Town continues to focus on priority issues of maintaining public safety; maintaining and enhancing infrastructure including streets and parks; and providing library, community development, and community services to the Town. These priorities are coordinated with protecting the Town’s fiscal health, and ensuring cost efficient and effective delivery of Town-wide administrative services. A continued emphasis on the implementation of various cost savings, revenue enhancements, operating efficiencies and a policy to establish a revenue stabilization reserve over recent years have softened the impact of continuing negative fiscal developments. However, as depicted in the revenue and expenditures graph on the previous page, fund balances are not expected to grow in FY 2011/12. Fund balances are actually expected to decline due to the use of designated reserves for vital capital improvements as approved in the FY 2011/12 – 2015/16 Capital Improvement Plan. The FY 2011/12 budget is a balanced budget, but the five-year financial forecast projects continuing deficits each year thereafter if the economy doesn’t improve significantly or further corrective actions not are taken. Shortfalls are the result of recessionary impacts on the Town’s locally generated revenues, anticipated declines in sales tax revenue from Netflix, due to changes in their business model, and projected cost increases for employer paid benefits due to PERS investment losses, and the ongoing impacts of funding post-retirement health benefits on an actuarial basis as required by Governmental Accounting Standards Board (GASB) Statement #45. Other key trends affecting the fund balance forecast include: Salary and Benefits Increases – Salaries and benefits account for 34% of the Town’s total expenditures and 57% of General Fund expenditures in FY 2011/12. Delivery of Town services is highly dependent on labor. The single largest driver of this cost has been the Town’s contribution to the Public Employees Retirement System (PERS) on behalf of public safety employees. The Town’s safety retirement contribution rates paid to the PERS have more than doubled in the recent past years and are expected to continue to increase over the next several years. In FY 2010/11, the employer PERS contribution rate for safety employees was 33.58% and is expected to adjust to 38.65% in FY 2011/12. For all other employees, the rate will increase from 14.43% in FY 2010/11 to 18.49% in FY 2011/12. In response to the fiscal challenges facing the Town, discussions with bargaining groups are underway to explore the potential for achieving budget savings through a variety of cost containment strategies, including furloughs.The Memorandum of Understanding (MOU) with the Town Employees’ Association (TEA) expired as of December 31, 2010 and a new Tentative Agreement has been reached between the parties. The Tentative Agreement includes a 2- tier pension formula and increases employee contributions for dependent health coverage. The agreement is pending final adoption by Council. The agreement between the Town and American Federation of State, County and Municipal Employess (AFSCME) expired on December 31, 2010; however, AFSME requested to delay negotiations until a new agreement with TEA is adopted. The current agreement with the Police Officers Association (POA) reflects a salary adjustment of 4% in FY 2011/12. Options are being explored with the POA to restructure its current labor agreement in lieu of furloughs given impacts on patrol schedule. Other Cost Drivers – A significant cost drivers for the Town is the continuing rise in energy costs, including fuel for safety and maintenance vehicles, water for parks and landscaping, natural gas and electricity to heat and cool buildings, and lighting for street lights, parking lots, and Town facilities. The Energy Information Administration of the U.S. government projects that energy costs will continue to increase in FY 2011/12. As a result, the Town will continue to explore energy efficient alternatives at existing and future facilities. Revenue Recovery – Recovery from the current economic recession is predicted to be slow and revenues for FY 2011/12 are expected to show little growth. Total Town revenues for FY 2011/12 have been adjusted to reflect revised estimates made during the current year, averaging 14% higher than the prior year estimated revenues. This change in revenue is largely due to increased funding in the General Fund Appropriated Reserve (GFAR) from the Public Improvement Grant. 5/13/2011 PROPOSED C - 6 2007/08Actual 2008/09Actual 2009/10Actual 2010/11 Estimate 2011/12Budget 2007/08Actual 2008/09Actual 2009/10Actual 2010/11 Estimate 2011/12Budget REVENUESProperty Tax 6,580,164 7,066,858 7,057,258 7,057,255 7,057,265 - - - - - VLF Backfill 2,141,994 2,307,040 2,343,495 2,343,495 2,366,930 - - - - - Sales & Use Tax 9,345,432 8,486,999 8,317,217 9,067,220 9,400,000 - - - - - Franchise Fees 1,659,830 1,698,061 1,699,839 1,699,835 1,716,830 - - - - - Transient Occupancy Tax 1,245,078 966,638 923,783 923,780 933,020 - - - - - Other Taxes 456,712 350,172 408,612 408,610 408,945 33,725 33,540 33,768 37,760 37,760 Licenses & Permits 2,450,829 1,820,007 2,035,308 1,973,325 1,902,335 - - - - - Intergovernmental 868,249 634,580 878,656 695,430 739,893 104,702 133,046 49,945 294,570 210,594 Town Services 1,853,054 2,054,603 2,565,437 2,491,896 2,571,951 166,660 135,000 135,000 135,000 135,000 Internal Srvc Reimbursement - - - - - - - - - - Fines & Forfeitures 311,155 563,721 571,245 547,696 597,856 - - - - - Interest 3,123,491 2,107,206 870,512 588,101 717,981 35,010 23,254 15,130 14,940 14,940 Other Sources 2,914,343 10,004,684 3,681,779 3,929,259 4,594,957 - - - - - CIP Proj Reimbursement - - - - - - Fund Transfers In 372,479 437,925 440,326 463,920 416,920 - - - - TOTAL REVENUES 33,322,810 38,498,494 31,793,467 32,189,822 33,424,883 340,097 324,840 233,843 482,270 398,294 EXPENDITURESSalaries & Benefits 19,588,636 20,403,018 19,356,682 19,784,411 20,711,882 114,146 130,428 91,481 87,719 106,868 Operating Expenditures 4,712,396 5,385,818 5,940,791 5,981,489 6,797,795 49,406 51,632 51,932 51,063 58,180 Grants & Awards 196,042 208,240 228,850 250,070 175,620 35,564 179,502 536,234 219,640 25,464 Fixed Assets - - 3,140,811 - - - - - - - Interest - - - - - 21,376 10,332 1,638 - 100 Internal Service Charges 3,409,347 3,540,057 3,240,600 3,034,362 3,136,104 40,869 40,066 15,949 13,508 9,348 Capital Projects - - - - - - - - - - Capital Acquisitions 62,628 536,229 - - - - - - - - Facilities Maintenance - - - - - - - - - - Debt Service 930,718 929,239 931,371 1,355,236 2,094,727 - - - 1,000 - Transfers 6,339,504 2,213,054 825,000 900,000 3,350,000 82,210 115,979 6,756 4,920 195,070 TOTAL EXPENDITURES 35,239,271 33,215,655 33,664,105 31,305,568 36,266,128 343,571 527,939 703,990 377,850 395,030 Net Increase (Decrease) (1,916,461) 5,282,839 (1,870,638) 884,254 (2,841,245) (3,474) (203,099) (470,147) 104,420 3,264 Beginning Fund Balance 19,004,029 17,129,877 22,709,278 20,838,637 20,732,446 1,346,710 1,343,236 1,140,137 669,990 774,410 Ending Fund Balance 17,129,877$ 22,709,278$ 20,838,637$ 20,732,446$ 17,891,201$ 1,343,236$ 1,140,137$ 669,990$ 774,410$ 777,674$ GENERAL FUNDTOTAL TOWN & RDA REVENUES, EXPENDITURES & FUND BALANCE FIVE-YEAR SUMMARYSPECIAL REVENUE FUNDS 5/13/2011 PROPOSED C - 7 2007/08Actual 2008/09Actual 2009/10Actual 2010/11 Estimate 2011/12Budget 2007/08Actual 2008/09Actual 2009/10Actual 2010/11 Estimate 2011/12Budget REVENUESProperty Tax - - - - - - - - - - VLF Backfill - - - - - - - - - - Sales & Use Tax - - - - - - - - - - Franchise Fees - - - - - - - - - - Transient Occupancy Tax - - - - - - - - - - Other Taxes - - - 145,556 136,775 139,685 142,288 139,030 Licenses & Permits - - - - - - - - - - Intergovernmental - - - - - - - - - - Town Services - - - - - - - - - Internal Srvc Reimbursement 4,304,486 4,425,622 4,121,575 3,996,210 4,092,268 - - - - - Fines & Forteitures - - - - - - - - - - Interest 50 40 39 22 40 22,020 17,707 11,036 11,667 11,118 Other Sources 169,438 115,029 156,556 161,130 158,000 25,276 32,341 20,738 545,718 48,000 CIP Proj Reimbursement - - - - - - - - Fund Transfers In 15,500 20,980 8,990 - - - - - - TOTAL REVENUES 4,489,474 4,561,671 4,287,160 4,157,362 4,250,308 192,852 186,823 171,459 699,673 198,148 EXPENDITURESSalaries & Benefits 981,152 1,069,437 1,003,584 961,993 1,104,004 - - - - - Operating Expenditures 2,781,996 2,291,094 2,473,435 2,715,678 2,734,600 36,661 26,020 24,526 25,971 482,359 Grants & Awards - - - - - - - - Fixed Assets 451,350 248,319 376,858 192,269 189,000 - - - - - Interest - - - - - 142,836 145,681 142,930 144,583 145,440 Internal Service Charges - - - - - - - - - - Capital Projects - - - - - - - - - - Capital Acquisitions - - - - - - - - - - Facilities Maintenance - - - - - - - - - - Debt Service - - - - - - - - - - Transfers 119,471 659,804 201,800 194,000 294,000 - - - - - TOTAL EXPENDITURES 4,333,969 4,268,654 4,055,677 4,063,940 4,321,604 179,497 171,701 167,456 170,554 627,799 Net Increase (Decrease) 155,505 293,017 231,483 93,422 (71,296) 13,355 15,122 4,003 529,119 (429,651) Beginning Fund Balance 10,936,652 11,092,157 11,385,174 11,616,657 11,710,079 633,140 646,495 661,617 665,620 1,194,739 Ending Fund Balance 11,092,157 $ 11,385,174 $ 11,616,657 $ 11,710,079 $ 11,638,783 $ 646,495 $ 661,617 $ 665,620 $ 1,194,739 $ 765,088 $ LIBRARY TRUSTS & PARKING ASSESSMENT FUNDS TOTAL TOWN & RDA INTERNAL SERVICE FUNDS REVENUES, EXPENDITURES & FUND BALANCE FIVE-YEAR SUMMARY 5/13/2011 PROPOSED C - 8 2007/08Actual 2008/09Actual 2009/10Actual 2010/11 Estimate 2011/12Budget 2007/08Actual 2008/09Actual 2009/10Actual 2010/11 Estimate 2011/12Budget REVENUESProperty Tax - - - - - 8,072,177 8,574,216 9,022,789 8,029,440 8,205,160 VLF Backfill - - - - - - - - - - Sales & Use Tax - - - - - - - - - - Franchise Fees - - - - - - - - - - Transient Occupancy Tax - - - - - - - - - - Other Taxes 29,656 14,392 - - - 35 73 - - Licenses & Permits 202,492 142,143 272,862 332,500 274,000 - - - - - Intergovernmental 2,155,286 1,366,727 3,154,121 3,024,569 3,517,290 - - - - - Town Services - - - - - - - - - - Internal Srvc Reimbursement - - - - - - - - - - Fines & Forteitures - - - - - - - - - - Interest 134,270 118,620 68,430 47,910 48,570 897,964 700,010 220,128 289,637 186,200 Other Sources 153,286 334,601 16,594,852 270,293 6,113,000 4 - 16,044 - - CIP Proj Reimbursement 41,105 (10,500) - - - 930,718 929,239 931,371 1,355,236 2,094,727 Fund Transfers In 6,273,466 2,642,933 834,635 900,000 3,640,150 550,000 575,000 575,000 600,000 650,000 TOTAL REVENUES 8,989,561 4,608,916 20,924,900 4,575,272 13,593,010 10,450,863 10,778,500 10,765,405 10,274,313 11,136,087 EXPENDITURESSalaries & Benefits 48,297 5,515 103,210 152,300 154,199 250,867 196,443 308,043 324,645 252,869 Operating Expenditures* - - 40,186 25,050 - 174,209 206,491 353,094 297,010 278,462 Grants & Awards - - - - - 932,700 90,000 412,000 150,000 - Fixed Assets - - - - - - - - - - Interest - - - - - 651,556 635,075 617,204 1,020,236 1,209,726 Internal Service Charges 2,280 240 2,667 6,485 - 15,516 11,354 16,972 18,050 13,752 Capital Projects 5,340,853 5,084,990 7,390,910 14,444,390 13,894,350 1,401,592 1,086,833 4,957,121 418,510 1,000 Capital Acquisitions - - - - - - - - - - Facilities Maintenance - - - - - - - - - - Debt Service - - 309,158 20,500 - 5,167,419 5,780,395 8,242,544 12,847,690 7,565,769 Transfers 120,259 113,001 250,396 265,000 218,000 550,000 575,000 575,000 600,000 650,000 TOTAL EXPENDITURES 5,511,689 5,203,746 8,096,527 14,913,725 14,266,549 9,143,859 8,581,591 15,481,978 15,676,141 9,971,578 Net Increase (Decrease) 3,477,872 (594,830) 12,828,373 (10,338,453) (673,539) 1,307,004 2,196,909 (4,716,573) (5,401,828) 1,164,509 Beginning Fund Balance 12,148,119 15,625,991 15,031,161 27,859,534 17,521,081 15,180,946 16,487,948 18,684,857 13,968,284 8,566,456 Ending Fund Balance 15,625,991$ 15,031,161$ 27,859,534$ 17,521,081$ 16,847,542$ 16,487,950$ 18,684,857$ 13,968,284$ 8,566,456$ 9,730,965$ * Includes Pass Thrus REDEVELOPMENT AGENCY CAPITAL PROJECT FUNDSTOTAL TOWN & RDA REVENUES, EXPENDITURES & FUND BALANCE FIVE-YEAR SUMMARY 5/13/2011 PROPOSED C - 9 2007/08Actual 2008/09Actual 2009/10Actual 2010/11 Estimate 2011/12Budget REVENUESProperty Tax 14,652,343 15,641,075 16,080,047 15,086,695 15,262,425 VLF Backfill 2,141,994 2,307,040 2,343,495 2,343,495 2,366,930 Sales & Use Tax 9,345,432 8,486,999 8,317,217 9,067,220 9,400,000 Franchise Fees 1,659,830 1,698,061 1,699,839 1,699,835 1,716,830 Transient Occupancy Tax 1,245,078 966,638 923,783 923,780 933,020 Other Taxes 665,649 534,914 582,138 588,658 585,735 Licenses & Permits 2,653,321 1,962,150 2,308,170 2,305,825 2,176,335 Intergovernmental 3,128,237 2,134,353 4,082,722 4,014,569 4,467,777 Town Services 2,019,714 2,189,603 2,700,437 2,626,896 2,706,951 Internal Srvc Reimbursement 4,304,486 4,425,622 4,121,575 3,996,210 4,092,268 Fines & Forteitures 311,155 563,721 571,245 547,696 597,856 Interest 4,212,805 2,966,837 1,185,275 952,277 978,849 Other Sources 3,262,347 10,486,655 20,469,969 4,906,400 10,913,957 CIP Proj Reimbursement 971,823 918,739 931,371 1,355,236 2,094,727 Fund Transfers In 7,211,445 3,676,838 1,858,951 1,963,920 4,707,070 TOTAL REVENUES 57,785,659 58,959,245 68,176,234 52,378,712 63,000,730 EXPENDITURESSalaries & Benefits 20,983,090 21,804,839 20,863,000 21,090,488 22,329,822 Operating Expenditures 7,754,668 7,961,055 8,883,964 10,820,259 10,351,396 Grants & Awards 1,164,306 477,742 1,177,084 638,000 201,084 Fixed Assets 451,350 248,319 3,517,669 325,000 189,000 Interest 815,768 791,088 761,772 146,283 1,355,266 Internal Service Charges 3,468,012 3,591,717 3,276,188 3,040,461 3,159,204 Capital Projects 6,742,445 6,171,823 12,348,031 17,088,486 13,895,350 * Capital Acquisitions 62,628 536,229 - - - Facilities Maintenance - - - - - Debt Service 6,098,137 6,709,634 9,483,073 10,945,550 9,660,496 Transfers 7,211,444 3,676,838 1,858,952 2,031,896 4,707,070 TOTAL EXPENDITURES 54,751,848 51,969,284 62,169,733 66,126,423 65,848,688 Net Increase (Decrease) 3,033,801 6,989,958 6,006,501 (14,129,066) (2,847,958) * Beginning Fund Balance 59,249,596 62,325,704 69,273,387 73,878,461 59,749,395 Ending Fund Balance 62,325,706 $ 69,273,387 $ 75,279,888 $ 59,749,395 $ 56,901,437 $ * Change in these items reflect completion of the Police Operation Building and the initiation of the Library construction.TOTAL ALL FUNDSTOTAL TOWN & RDA REVENUES, EXPENDITURES & FUND BALANCE FIVE-YEAR SUMMARY 5/13/2011 PROPOSED C - 10 TOTAL TOWN & RDA REVENUES BY FUND (Includes Transfers In) 2007/082008/092009/102010/112010/11%2011/12Change FundFund NameActualsActualsActualsAdoptedEstimatedChangeAdoptedfrom PY General Funds 111General Fund33,057,656 38,498,494 31,793,465 33,196,691 32,189,822 4.4%33,424,883 0.7% Special Revenue Funds 221Solid Waste Management265,154 - - - - - 211HCD Housing Rehabilitation32,140 20,454 13,191 12,500 12,500 (5.2%)12,500 0.0% 212HCD-CDBG104,702 133,046 49,945 124,401 294,570 149.1%210,594 69.3% 222Urban Run-Off Program166,660 135,000 135,000 135,000 135,000 0.0%135,000 0.0% Assessment Districts 231Blackwell District3,308 3,250 3,348 3,240 3,240 (3.2%)3,240 0.0% 232Kennedy Meadows District10,549 10,624 10,595 10,625 10,625 0.3%10,625 0.0% 233Gemini Court District4,375 4,392 4,389 4,380 4,380 (0.2%)4,380 0.0% 234Santa Rosa Heights District6,480 6,265 5,610 5,950 5,950 6.1%5,950 0.0% 235Vasona Heights District9,901 9,935 10,004 9,935 9,935 (0.7%)9,935 0.0% 236Hillbrook District1,983 1,873 1,762 6,070 6,070 244.5%6,070 0.0% Internal Service Funds 611Self Insurance Fund586,436 540,326 491,082 511,820 511,870 4.2%532,958 4.1% 612Worker's Comp Self Insurance668,518 650,526 648,890 675,590 675,612 4.1%687,085 1.7% 621Management Info Systems951,982 1,037,521 1,002,319 1,003,390 1,020,220 0.1%1,001,546 (0.2%) 622Office Stores Fund104,521 144,924 119,598 124,500 120,800 4.1%118,500 (4.8%) 631Equipment Replacement409,460 427,220 389,675 334,560 334,560 (14.1%)319,819 (4.4%) 632Vehicle Maintenance Fund612,247 638,022 624,500 487,600 487,600 (21.9%)540,100 10.8% 633Facilities Maintenance Fund1,156,310 1,123,133 1,011,096 1,006,700 1,006,700 (0.4%)1,050,300 4.3% Trust & Agency Funds 711Library Trust24,385 31,932 20,601 30,900 46,500 50.0%45,800 48.2% 712Hooked on History Project3,141 1,519 1,076 100 3,335 (90.7%)3,018 2918.0% 713Ness Trust Bequest4,950 5,490 3,710 2,000 1,500 (46.1%)1,500 (25.0%) 714Betty McClendon Trust3,040 2,800 1,890 1,000 1,000 (47.1%)1,000 0.0% 716Barbara J Cassin Trust- - - - 501,250 - %5,000 - % 721Parking District #88157,336 145,082 144,182 146,088 146,088 1.3%141,830 (2.9%) Capital Project Funds 411GFAR6,985,783 3,035,695 17,807,049 1,393,698 1,221,293 (92.2%)9,730,000 598.1% 421Grant Funded CIP Projects1,204,395 696,557 2,379,704 1,025,219 2,082,218 (56.9%)690,150 (32.7%) 461Storm Drain #157,092 163,682 39,962 48,120 68,120 20.4%48,120 0.0% 462Storm Drain #264,394 55,208 61,285 54,320 63,420 (11.4%)53,420 (1.7%) 463Storm Drain #311,192 (2,302) 2,665 4,100 700 53.8%1,000 (75.6%) 471Traffic Mitigation- 46,100 60,429 454,000 368,877 651.3%2,185,000 381.3% 472Const Utility Underground106,096 87,352 68,766 47,240 82,240 (31.3%)51,010 8.0% 481Gas Tax - Street & Signal560,610 526,622 505,041 494,350 796,048 (2.1%)834,310 68.8% Redevelopment Agency Funds 911RDA - Capital Project Funds688,569 641,908 580,951 625,000 617,937 7.6%660,000 5.6% 921RDA - Debt Service Fund 7,834,896 8,145,423 8,313,191 8,823,720 7,965,486 6.1%8,810,055 (0.2%) 931RDA - Low/Moderate Housing 1,927,398 1,991,170 1,871,270 1,730,890 1,690,890 (7.5%)1,666,032 (3.7%) Total Fund Rev and Transfers-In57,785,659 58,959,243 68,176,241 52,533,697 52,486,356 (22.9%)63,000,730 19.9% 5/13/2011 PROPOSED C - 11 TOTAL TOWN & RDA REVENUES BY FUND 2007/082008/092009/102010/112010/112011/12% of ActualsActualsActualsAdoptedEstimatedAdoptedTotal General Fund33,322,810$ 38,498,494$ 31,793,466$ 33,196,691$ 32,189,822$ 33,424,883$ 53.0% Special Revenue Funds340,098 324,839 233,844 312,101 482,270 398,294 0.6% Internal Service Funds4,489,474 4,561,672 4,287,160 4,144,160 4,157,362 4,250,308 6.7% Trust & Agency Funds192,852 186,823 171,459 180,088 699,673 198,148 0.3% Capital Project Funds8,989,562 4,608,914 20,924,901 3,521,047 4,575,272 13,593,010 21.6% Redevelopment Agency Funds10,450,863 10,778,501 10,765,406 11,179,610 10,274,313 11,136,087 17.7% Total Rev & Transfers In57,785,659$ 58,959,243$ 68,176,236$ 52,533,697$ 52,378,712$ 63,000,730$ 100.0% FY 2011/12 Revenues By Fund FY TotalStatus 2002/0337,405,672 Actuals 2003/0448,158,229 Actuals 2004/0536,878,439 Actuals 2005/0640,170,433 Actuals 2006/0747,575,202 Actuals 2007/0857,785,659 Actuals 2008/0958,959,243 Actuals 2009/1068,176,236 Actuals 2010/1152,378,712 Estimated 2011/1263,000,730 Projected TOWN and RDA REVENUE HISTORICAL TREND (Includes Transfers In) - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 5/13/2011 PROPOSED C - 12 TOTAL TOWN & RDA EXPENDITURES BY FUND (Includes Transfers Out) 2007/082008/092009/102010/112010/11%2011/12% FundFund NameActualsActualsActualsAdoptedEstimatedChangeAdoptedChange General Funds 111General Fund35,239,271 33,215,655 33,664,105 33,257,706 31,305,568 (1.2%)36,266,128 9.0% 111Special Revenue Grants- - - - - - %- - % Special Revenue Funds 221Solid Waste Management- - - - - - 211HCD Housing Rehabilitation21,376 157,104 505,823 251,700 196,000 (50.2%)5,100 (98.0%) 212HCD-Community Block Grant102,396 134,056 49,498 122,518 28,803 147.5%216,931 77.1% 222Urban Run-Off Program186,399 203,370 114,977 137,432 115,947 19.5%135,900 (1.1%) - - - - %- % Assessment Districts 231Blackwell District2,490 2,422 3,420 3,220 3,220 (5.8%)3,220 0.0% 232Kennedy Meadows District6,767 6,811 6,859 7,630 7,630 11.2%7,630 0.0% 233Gemini Court District3,076 3,076 3,076 5,000 5,000 62.5%5,000 0.0% 234Santa Rosa Heights District8,638 8,638 8,638 11,590 7,990 34.2%7,990 (31.1%) 235Vasona Heights District7,957 7,601 7,362 6,670 6,670 (9.4%)6,670 0.0% 236Hillbrook District4,472 4,861 4,336 6,590 6,590 52.0%6,590 0.0% Arroyo Del Rancho- - - - %- % Internal Service Funds 611Self Insurance Fund856,026 304,072 504,146 647,392 618,102 28.4%625,224 (3.4%) 612Worker's Comp Self Insurance477,923 651,298 506,795 632,463 587,490 24.8%623,097 (1.5%) 621Management Info Systems913,662 985,887 967,384 1,114,436 948,026 15.2%1,056,207 (5.2%) 622Office Stores Fund107,937 119,407 126,686 143,000 129,403 12.9%134,050 (6.3%) 631Equipment Replacement Fund480,136 232,047 578,737 330,366 368,899 (42.9%)204,093 (38.2%) 632Vehicle Maintenance Fund571,825 600,994 464,303 537,428 504,904 15.7%536,200 (0.2%) 633Building Maintenance Fund926,460 1,374,949 907,626 1,072,372 907,116 18.2%1,142,733 6.6% Trust & Agency Funds 711Library Trust18,340 15,627 17,980 43,875 19,811 144.0%38,155 (13.0%) 712Hooked on History Project9,850 7,617 3,592 - 3,335 (100.0%)2,000 - % 713Ness Trust Bequest- - - 189,007 - - %191,750 1.5% 714Betty McClendon Trust5,691 - - 96,179 - 97,629 1.5% 716Barbara J Cassin Trust- - - - - 150,000 - % 721Parking District #88145,589 148,436 145,884 147,408 147,408 1.0%148,265 0.6% Capital Project Funds 411GFAR3,257,217 3,696,379 5,192,280 25,635,602 10,945,811 393.7%10,350,399 (59.6%) 421Grant Funded CIP Projects1,368,653 552,259 1,743,648 1,025,219 2,548,784 (41.2%)690,150 (32.7%) 461Storm Drain #126,337 163,890 45,890 - - (100.0%)285,000 - % 462Storm Drain #2- - - - - - %- - % 463Storm Drain #321,000 261,457 17,180 - 25,000 (100.0%)- - % 471Traffic Mitigation14,259 46,100 60,429 454,000 368,877 651.3%2,185,000 381.3% 472Const Utility Underground- - 208,347 - 4,707 (100.0%)- - % 481Gas Tax - Street & Signal824,223 483,661 828,753 606,000 1,020,546 (26.9%)756,000 24.8% 482Traffic Congestion Relief- - - Redevelopment Agency Funds 911RDA - Capital Project Funds2,007,716 1,574,059 1,237,563 704,125 764,079 (43.1%)715,952 1.7% 921RDA - Debt Service Fund 5,850,269 6,448,986 8,882,082 9,412,880 7,699,762 6.0%8,849,535 (6.0%) 931RDA - Low/Moderate Housing 1,285,874 558,546 5,362,333 3,527,548 6,830,945 (34.2%)406,090 (88.5%) Total Operating Exp by Fund:54,751,829 51,969,265 62,169,732 80,129,356 66,126,423 28.9%65,848,688 (17.8%) 5/13/2011 PROPOSED C - 13 TOTAL TOWN & RDA EXPENDITURES BY FUND General Fund 55.1% Special Revenue Funds 0.6% Internal Service Funds 6.6% Trust & Agency Funds 1.0% Capital Project Funds 21.7% Redevelopment Agency Funds 15.1% 2007/082008/092009/102010/112010/112011/122011/12 ActualsActualsActualsAdoptedEstimatedAdopted% General Fund35,239,271$ 33,215,655$ 33,664,105$ 33,257,706$ 31,305,568$ 36,266,128$ 55.1% Special Revenue Funds343,571 527,939 703,989 552,350 377,850 395,031 0.6% Internal Service Funds4,333,969 4,268,654 4,055,677 4,477,457 4,063,940 4,321,604 6.6% Trust & Agency Funds179,470 171,680 167,456 476,469 170,554 627,799 1.0% Capital Project Funds5,511,689 5,203,746 8,096,527 27,720,821 14,913,725 14,266,549 21.7% Redevelopment Agency Funds9,143,859 8,581,591 15,481,978 13,644,553 15,294,786 9,971,577 15.1% Total Exp & Transfers Out54,751,829$ 51,969,265$ 62,169,732$ 80,129,356$ 66,126,423$ 65,848,688$ 100.0% FY TotalStatus 2002/0341,334,324 Actuals 2003/0442,448,325 Actuals 2004/0540,696,344 Actuals 2005/0635,716,244 Actuals 2006/0740,769,411 Actuals 2007/0854,751,856 Actuals 2008/0951,969,286 Actuals 2009/1062,169,732 Actuals 2010/1166,126,423 Estimated 2011/1265,848,688 Projected TOWN and RDA EXPENDITURE HISTORICAL TREND (Includes Transfers Out) - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 5/13/2011 PROPOSED C - 14 TOTAL TOWN & RDA REVENUES BY CATEGORY FY 2011/12 Budgeted Revenues Total Budgeted Revenues (exclusive of Bond Proceeds and Transfers In) for most revenue categories reflect moderate declines. Key revenue highlights include: Property Tax – Property Tax revenues are anticipated to experience flat growth in FY 2011/12. Sales and Use Tax – Town sales and use tax revenues continue to be impacted by the national recession. However, this decline was partially offset in FY 2010/11 by the continued success of one internet retail business, coupled with an increase in sales tax revenue from another general retail provider and auto dealer. This boost in sale tax revenue, which was adjusted as part of the FY 2010/11 mid-year update, reflects an 11% increase in the proposed FY 2011/12 sales tax revenue compared to the prior year adopted budget. Sales tax projections indicate that the adjustment made in FY 2010/11 is not a trend and subsequent fiscal years will reflect a much lower rate of growth given the economic climate and declining revenues from the internet retail business due to changes in their business model. Licenses and Permits – Licenses and Permits reflect a 1% decrease in 2011/12. While development activity is forecasted to be lower in FY 2011/12, fee adjustments and overhead charges may help to offset this anticipated decline. Intergovernmental Revenues – Decreases in intergovernmental revenues are due reductions in carry-forward grant funding from the prior year. Interest – Interest income is forecasted to be lower in FY 2011/12 due to a declining interest rate environment and reduced cash balances than prior years as a result of significant capital expenditures planned for the coming fiscal year. 2007/082008/092009/102010/112010/112011/12% of RevenuesActualsActualsActualsAdoptedEstimatedAdoptedTotal Property Tax15,288,335$ 16,161,596$ 16,662,186$ 15,510,328$ 15,086,695$ 15,262,425$ 24.2% VLF Backfill Property Tax2,141,994 2,307,040 2,343,495 2,366,930 2,343,495 2,366,930 3.8% Sales & Use Tax9,345,432 8,486,999 8,317,217 8,350,000 9,067,220 9,400,000 14.9% Franchise Fees1,659,830 1,698,061 1,699,839 1,931,950 1,699,835 1,716,830 2.7% Transient Occupancy Tax1,245,078 966,638 923,783 989,800 923,780 933,020 1.5% Miscellaneous Other Taxes1,203,959 1,171,044 1,264,326 1,119,000 588,658 585,735 0.9% Licenses & Permits2,615,874 1,908,204 2,246,326 2,198,000 2,305,825 2,176,335 3.5% Intergovernmental Revenues3,128,238 2,134,354 4,082,722 6,041,188 4,014,569 4,467,777 7.1% Town Services 2,189,966 2,301,206 2,844,636 2,705,336 2,626,896 2,706,951 4.3% Internal Service Reimbursements4,212,787 4,357,464 4,039,222 3,910,160 3,996,210 4,092,268 6.5% Fines & Forfeitures369,292 618,771 629,288 645,000 522,856 597,856 0.9% Interest4,212,805 2,966,836 1,185,278 1,612,560 952,277 978,849 1.6% Miscellaneous Other Sources2,960,610 10,204,189 20,078,972 6,638,365 6,394,120 13,008,684 20.6% 50,574,200$ 55,282,402$ 66,317,290$ 54,018,617$ 50,522,436$ 58,293,660$ Plus Transfers In:7,211,444 3,676,838 1,858,951 2,031,896 1,963,920 4,707,070 7.5% Total Revenues & Other Sources57,785,644$ 58,959,240$ 68,176,241$ 56,050,513$ 52,486,356$ 63,000,730$ 100.0% Total Revenues 5/13/2011 PROPOSED C - 15 TOTAL TOWN & RDA EXPENDITURES BY CATEGORY FY 2011/12 Budgeted Expenditures Total Budgeted Expenditures (exclusive of Transfers Out) include budgeted Capital Improvements, which can vary significantly from year to year. Net of Capital Projects, total expenditures reflect a decrease for FY 2011/12 compared to the prior year adopted budget. Expenditures of note include: Salaries and Benefits – Salary and benefit expenditures reflect a 4% increase due to increases in PERS employer contribution rates and salary adjustments per the Police Officers Association (POA) labor agreement. The FY 2011/12 labor expenditures also include post retirement expenses related to GASB 45. Fixed Assets – Budgeted fixed asset costs stem primarily from scheduled vehicle and equipment replacements. The variance in expenditures from year to year does not impact current year charges to the departments, only the actual cash out to replace the asset. Internal Service Charges – Internal service charges have increased due to anticipated opening of the new Library in 2012 and other adjustments related to changes in staffing, operating costs, and equipment replacement schedules. Debt Service – Debt service charges reflect the Redevelopment Agency’s two Certificates of Participation Bond Issues (1994 and 2002) through a leasing expense and reimbursement revenue which nets to zero for the Town, while Redevelopment Agency (RDA) funds provide the actual debt payment for the bond issues. It also includes expenses related to the issuance of the 2010 COP Bond Issues for the construction of the new Library. As with the 1994 and 2002 COPs, the RDA reimburses the General Fund for the debt service payment. 2007/082008/092009/102010/112010/112011/12% of ActualsActualsActualsAdoptedEstimatedAdoptedTotal Salaries and Benefits20,983,098$ 21,804,841$ 20,863,006$ 21,520,906$ 21,090,488$ 22,329,822$ 33.9% Operating Expenditures8,351,241 8,575,531 9,826,039 11,041,081 10,820,259 12,703,676 19.3% Grants1,164,306 477,742 1,177,085 638,300 638,300 201,084 0.3% Fixed Assets496,967 206,759 401,374 326,620 325,000 159,000 0.2% Interest164,212 156,013 144,568 146,283 146,283 145,440 0.2% Internal Service Charges3,468,012 3,591,717 3,276,189 3,102,511 3,040,461 3,159,204 4.8% Capital Projects6,759,456 6,749,612 15,464,330 30,376,508 17,088,486 13,925,350 21.1% RDA Pass Thrus3,210,934 3,792,492 6,214,077 4,154,830 4,154,830 3,777,313 5.7% Debt Services2,942,159 2,937,720 2,944,113 6,790,420 6,790,420 4,740,729 7.2% 47,540,385$ 48,292,427$ 60,310,781$ 78,097,459$ 64,094,527$ 61,141,618$ Transfers Out7,211,444 3,676,838 1,858,951 2,031,896 2,031,896 4,707,070 7.1% Total Uses of Funds54,751,829$ 51,969,265$ 62,169,732$ 80,129,355$ 66,126,423$ 65,848,688$ 100.0% Total Expenditures Expenditures 5/13/2011 PROPOSED C - 16 GENERAL FUND REVENUES BY DEPARTMENT FY 2011/12 Departmental Revenues *The Town Manager’s Office, Human Resources, Finance & Administrative Services, Clerk Administration, and Management Information Services Programs are all accounted for within the Administrative Services Department. In FY 2009/10 the Town Treasurer was incorporated into Administrative Services Department. ** The Community Services Department is being integrated into the Administrative Services Department and other departments. ***Transfers were increased beginning in FY 2008/09 for residual balances from closed funds being transferred to the General Fund and internal service rebate transfers effective FY 2009/10. 2007/082008/092009/102010/112010/112011/12% of DepartmentsActualsActualsActualsAdoptedEstimatedAdoptedTotal Town Treasurer2,973,491$ 1,957,205$ -$ -$ -$ -$ 0.0% Non-Departmental 22,444,086 28,375,775 21,822,679 22,287,820 22,984,907 23,320,847 75.4% *Administrative Services1,138,510 1,141,562 1,945,466 2,140,410 1,539,221 1,710,754 5.5% Community Development2,954,123 2,700,613 3,404,087 3,112,026 2,827,162 2,913,699 9.4% Police Department1,583,859 1,877,228 2,134,464 1,937,610 1,949,626 1,961,341 6.3% Parks & Public Works606,756 766,365 835,523 887,085 913,550 959,745 3.1% Community Services205,616 245,187 207,994 116,600 110,480 - 0.0% Library Department71,532 67,395 71,555 62,750 45,720 46,850 0.2% Total General Fund Revenues31,977,973$ 37,131,330$ 30,421,768$ 30,544,301$ 30,370,666$ 30,913,236$ 100.0% Town Debt Payments:930,718$ 929,239$ 931,371$ 2,213,470$ 1,355,236$ 2,094,727$ **Fund Transfers In:148,369 437,925 440,326 438,920 463,920 416,920 Net Operating Revenues 33,057,060$ 38,498,494$ 31,793,465$ 33,196,691$ 32,189,822$ 33,424,883$ 5/13/2011 PROPOSED C - 17 GENERAL FUND EXPENDITURES BY DEPARTMENT FY 2011/12 Departmental Expenditures * The Town Manager’s Office, Human Resources, Finance & Administrative Services, and Clerk Administrator, and Management Information Services programs are all accounted for within the Administrative Services Department. In FY 2009/10 the Town Treasurer was incorporated into Administrative Services Department. ** The Community Services Department is being integrated into the Administrative Services Department and other departments. 2007/082008/092009/102010/112010/112011/12% of DepartmentsActualsActualsActualsAdoptedEstimatedAdoptedTotal Police Department12,232,467$ 13,055,755$ 12,784,152$ 13,106,941$ 13,018,498$ 13,708,500$ 44.5% Parks & Public Works5,241,601 5,791,780 5,137,185 5,462,380 5,273,829 5,720,908 18.6% Non-Departmental 1,262,486 1,926,496 4,892,280 2,720,800 2,343,270 3,014,570 9.8% Community Development3,037,483 3,297,602 3,405,712 3,365,010 2,936,639 3,210,624 10.4% *Administrative Services2,809,863 2,711,224 2,744,956 2,762,275 2,741,463 3,271,091 10.6% Library Services1,948,020 2,018,591 1,994,569 1,861,210 2,026,772 1,867,521 6.1% **Community Services1,009,011 1,145,189 925,281 842,020 685,826 - 0.0% Town Council23,492 23,820 23,600 23,600 24,035 28,187 0.1% Treasurer94,755 101,884 - - - - 0.0% Clerk - Elected2,418 1,021 - - - - 0.0% 27,661,596$ 30,073,362$ 31,907,735$ 30,144,236$ 29,050,332$ 30,821,401$ 100.0% Town Debt Payments:930,718$ 929,239$ 931,371$ 2,213,470$ 1,355,236$ 2,094,727$ Fund Transfers Out:6,339,504 1,916,500 825,000 900,000 900,000 3,350,000 Net Operating Expenditures34,931,818$ 32,919,101$ 33,664,106$ 33,257,706$ 31,305,568$ 36,266,128$ Total General Fund Exp 5/13/2011 PROPOSED C - 18 GENERAL FUND REVENUES BY CATEGORY FY 2011/12 General Fund revenues and fund transfers are estimated to increase by 0.7% from the FY 2010/11 adopted budget. The Town’s operations are funded through a variety of revenue sources as depicted above. Revenues were estimated by trend analysis and historical data as explained below: Sales Tax – While the Town only receives 1 cent of the 9.25 cents of sales tax paid per dollar of taxable sales generated in the Town, Sales and Use Tax remains one of the General Fund’s largest revenue sources. The FY 2011/12 budget reflects an 13% increase from the prior year’s adopted budget due to the continued success of one internet retail business, coupled with an increase in sales tax revenue from another general retail provider and auto dealer. This adjustment is reflected in the FY 2010/11 estimated budget. Sales tax projections indicate that the FY 2010/11 adjustment is not a trend and subsequent fiscal years will reflect a much lower rate of growth given the economic climate and declining revenues from the internet retail business due to changes in their business model. . Property Tax – FY 2011/12 property tax revenue is anticipated to experience minimal growth based on data from the Santa Clara County Assessor’s Office. Los Gatos is one of the few cities in Santa Clara County that is expected to experience positive assessed valuation growth for FY 2011/12. The FY 2011/12 budget reflects an increase of 1.9% over the prior year’s adopted budget. The Town receives 9.5 cents of each property tax dollar paid by property owners. The remaining 90.5 cents of each dollar is distributed to several other taxing jurisdictions, including local schools and community college districts (46.3 cents), ERAF I & II (11.7 cents), the County of Santa Clara (15.7 cents), Santa Clara County Central Fire Protection District (13.7 cents), and other special districts (totaling 3.1 cents) that serve the community. 2007/082008/092009/102010/112010/112011/12FY 06/07 Revenue CategoryActualsActualsActualsAdoptedEstimatedAdopted% Property Tax7,036,876$ 7,417,030$ 7,057,258$ 6,928,770$ 7,057,255$ 7,057,265$ 21.1% VLFBackfill Property Tax2,141,994$ 2,307,040$ 2,343,495$ 2,366,930$ 2,343,495$ 2,366,930$ 7.1% Sales & Use Tax9,345,432$ 8,486,999$ 8,317,217$ 8,350,000$ 9,067,220$ 9,400,000$ 28.1% Franchise Fees1,659,830$ 1,698,061$ 1,699,839$ 1,931,950$ 1,699,835$ 1,716,830$ 5.1% Transient Occupancy Tax1,245,078$ 966,638$ 923,783$ 989,800$ 923,780$ 933,020$ 2.8% Other Taxes1,144,647$ 1,142,305$ 408,612$ 372,070$ 408,610$ 408,945$ 1.2% Licenses & Permits2,413,381$ 1,766,062$ 2,035,308$ 1,920,000$ 1,973,325$ 1,902,335$ 5.7% Intergovernmental828,619$ 594,690$ 844,868$ 676,610$ 695,430$ 739,893$ 2.2% Town Services 1,889,088$ 2,108,548$ 2,565,437$ 2,486,336$ 2,491,896$ 2,571,951$ 7.7% Fines & Forfeitures369,292$ 618,771$ 571,245$ 589,000$ 547,696$ 597,856$ 1.8% Interest3,123,491$ 2,107,205$ 870,512$ 1,205,410$ 588,101$ 717,981$ 2.1% Other Sources 1,711,559$ 8,847,220$ 3,715,565$ 4,940,895$ 3,929,259$ 4,594,957$ 13.7% Total Revenues 32,909,287$ 38,060,569$ 31,353,139$ 32,757,771$ 31,725,902$ 33,007,963$ Fund Transfers In148,369 437,925 440,326 438,920 463,920 416,920 1.2% Total Revenues & Transfers33,057,656$ 38,498,494$ 31,793,465$ 33,196,691$ 32,189,822$ 33,424,883$ 100% 5/13/2011 PROPOSED C - 19 GENERAL FUND REVENUES BY CATEGORY Town Services –Town services reflects a 3.4% increase. Although there is flat growth in private development activity the decline in revenue was lessened by the adjustment in fees and charges for services as part of the Town’s Comprehensive User Fee update in Spring 2010. Licenses & Permits – Licenses and Permits reflect a projected 1% decrease FY 2011/12 due to slow development activity. While development activity is forecasted to be low in FY 2011/12, adopted fee adjustments and overhead charges may help offset the revenue decline. Intergovernmental Revenues – Intergovernmental revenues are various local, state, and federal grants and reimbursements for police, library, and general funding purposes. The 9.4% increase in revenue is due to changes in available funding. Interest Earnings – Interest income is forecasted to be 40.4% lower in FY 2011/12 due to a declining interest rate environment and reduced cash balances from prior years as a result of significant capital expenditures planned for the coming fiscal year. Franchise Fees – Compared to the prior fiscal year, franchise fees, including cable television, electric utility and solid waste have decreased by 11%. Transient Occupancy Tax – Estimates for Transient Occupancy Tax (TOT) reflects a 5.7% decrease due to reductions in travel and tourism. Transfers In – There are no significant changes expected in this revenue category in FY 2011/12. Other Sources – Other sources reflect a 7% decrease compared to the prior fiscal year. This change is largely due to the Library Bond payment scheduled for FY 2011/12. Fines and Forfeitures – These revenues include library and traffic fines and administrative citations which are expected to increase by 1.5%, primarily due to parking enforcement efficiencies. 5/13/2011 PROPOSED C - 20 GENERAL FUND EXPENDITURES BY CATEGORY The FY 2011/12 General Fund Operating Budget (net of transfers out) represents an 8% increase compared to the net FY 2010/11 adopted operating expenditures budget of $33,257,706. Salary & Benefits – Delivery of Town services are highly dependent on labor and comprise 57% of budgeted General Fund Expenditures for FY 2011/12. Despite strategic reductions made in staffing, overtime, and operating expenditures, salary and benefits increased by 3.7%. Managing rising labor and benefit costs, including other post-employment benefits (OPEB) continues to be a challenge. The increase is largely due to increases in miscellaneous and safety PERS rates, and health care costs for active and retired employees. Operating Expenses – The FY 2011/12 operating expenditures represents a 1.5% decrease when compared to the FY 2010/11 adopted budget. Town-wide efforts continue to emphasize the important of containing operating costs while maintaining core services; however, factors such as escalating energy costs, rising intergovernmental fees, and general cost increases have offset many departmental reductions. Grants & Awards –The Town provides General Fund grants and awards to local nonprofit organizations for a variety of human, art, and educational services. FY 2011/12 grants and award funding reflects a decrease compared to the prior year. Internal Service Charges – This expense represents the service program costs charged back to the operational programs for Workers Compensation Insurance, Liability Insurance, Office Equipment, Management Information Services, Vehicle Maintenance, and Building Maintenance services. The FY 2011/12 reflects a $94,843 increase in the Internal Service Fund. Debt Service – The Town facilitates the Redevelopment Agency’s three Certificates of Participation Bond Issues (1994, 2002 and 2010) through a leasing expense and reimbursement revenue which nets to zero for the Town, while Redevelopment Agency (RDA) funds provide the actual debt payment for the bond issues. Transfers Out – The General Fund’s transfer to the Capital Projects Fund increased to $3,350,000 for FY 2011/12 in the annual appropriation to fund the CIP. This increase was largely due to funding for the Creekside Sports Park. 2007/082008/092009/102010/112010/112011/12% of Expenditure CategoryActualsActualsActualsAdoptedEstimatedAdoptedTotal Salary & Benefits19,445,618$ 20,403,014$ 19,356,682$ 19,963,544$ 19,784,411$ 20,711,882$ 57.1% Operating Expenses4,556,099 5,915,806 5,940,791 6,899,035 5,981,489 6,797,795 18.7% Grants & Awards 196,042 208,240 228,850 213,660 250,070 175,620 0.5% Fixed Assets 62,628 14,724 24,516 26,736 - - 0.0% Internal Service Charges 3,401,192 3,531,570 3,240,601 3,041,261 3,034,362 3,136,104 8.6% Purchased Land & Buildings- - 3,116,295 - - - 0.0% Total Expenditures 27,661,579$ 30,073,354$ 31,907,735$ 30,144,236$ 29,050,332$ 30,821,401$ Debt Service930,718 929,239 931,371 2,213,470 1,355,236 2,094,727 5.8% Fund Transfers Out:6,339,504 1,916,500 825,000 900,000 900,000 3,350,000 9.2% Total Expenditures & Transfers34,931,801$ 32,919,093$ 33,664,106$ 33,257,706$ 31,305,568$ 36,266,128$ 100% 5/13/2011 PROPOSED C - 21 GENERAL FUND TAX REVENUES CITIES OF SANTA CLARA COUNTY – TAX REVENUES PER CAPITA TO BE UPDATED FY 2008/09 Tax Revenue Amounts and Per Capita * * Latest fiscal year for which data is available $-$100$200$300$400$500$600$700$800$900 Sunnyvale Saratoga Santa Clara San Jose Palo Alto Mountain View Morgan Hill Monte Sereno Milpitas LOS GATOS Los Altos Hills Los Altos Gilroy Cupertino Campbell Property TaxSales TaxOccupancy TaxBusiness License Tax CitiesPopulationAmountPer CapitaAmountPer CapitaAmountPer CapitaAmountPer Capita Campbell40,4208,882,191$ 220$ 9,222,268$ 228$ 1,287,184$ 32$ 232,424$ 6$ Cupertino55,84012,950,000 232$ 14,140,000 253$ 2,140,000 38$ 700,000 13$ Gilroy51,50810,927,795 212$ 11,650,355 226$ 870,175 17$ 575,564 11$ Los Altos28,45812,740,166 448$ 2,697,494 95$ 1,289,722 45$ 403,338 14$ Los Altos Hills8,8893,205,734 361$ 89,349 10$ - -$ 233,529 26$ LOS GATOS30,4979,178,868 301$ 8,575,872 281$ 1,245,078 41$ 1,138,057 37$ Milpitas70,81754,204,253 765$ 16,250,920 229$ 5,549,931 78$ 417,031 6$ Monte Sereno3,6191,111,122 307$ 9,144 3$ - -$ 46,850 13$ Morgan Hill39,8145,903,101 148$ 6,552,031 165$ 1,110,669 28$ 161,483 4$ Mountain View74,76225,647,300 343$ 16,263,600 218$ 3,154,900 42$ 220,600 3$ Palo Alto64,48425,382,000 394$ 20,476,000 318$ 7,071,000 110$ - -$ San Jose1,006,892499,843,000 496$ 135,215,388 134$ 23,900,000 24$ 39,901,000 40$ Santa Clara117,24239,918,830 340$ 35,780,564 305$ 9,762,655 83$ 843,902 7$ Saratoga31,6798,155,362 257$ 1,043,034 33$ 151,378 5$ 321,347 10$ Sunnyvale138,8265,683,758 41$ 26,919,485 194$ 5,683,758 41$ 1,199,364 9$ Average117,583 48,248,899$ 410$ 20,325,700$ 173$ 4,214,430$ 36$ 3,313,892$ 28$ Property TaxSales TaxOccupancy TaxBusiness License Tax 5/13/2011 PROPOSED C - 22 GENERAL FUND TAX REVENUES BUDGET WITH 10 YEAR HISTORY Sum of Key Change from RevenuesPrior Year 2000/01Actuals4,472,583$ 9,429,256$ 1,286,276$ 1,003,928$ 16,192,043$ 13.0% 2001/02Actuals4,784,476$ 6,953,880$ 788,408$ 986,525$ 13,513,289$ (16.5%) 2002/03Actuals4,977,119$ 6,928,817$ 713,064$ 1,003,014$ 13,622,014$ 0.8% 2003/04Actuals5,207,381$ 6,914,526$ 829,026$ 1,071,865$ 14,022,798$ 2.9% 2004/05Actuals5,302,061$ 7,904,130$ 868,908$ 1,015,000$ 15,090,099$ 7.6% 2005/06Actuals5,831,822$ 8,655,566$ 1,028,664$ 1,058,642$ 16,574,694$ 9.8% 2006/07Actuals7,036,876$ 9,345,432$ 1,245,078$ 1,176,422$ 18,803,808$ 13.4% 2007/08Actuals7,417,030$ 8,486,999$ 966,638$ 1,138,057$ 18,008,724$ (4.2%) 2008/09Actuals7,057,258$ 8,317,217$ 923,783$ 1,139,107$ 17,437,365$ (7.3%) 2009/10Actuals7,057,258$ 8,317,217$ 923,783$ 1,122,000$ 17,420,258$ (3.3%) 2010/11Estimated7,057,255$ 9,067,220$ 923,780$ 1,085,000$ 18,133,255$ 4.0% 2011/12Budgeted7,057,265$ 9,400,000$ 933,020$ 1,085,000$ 18,475,285$ 6.1% Business License Tax Occupancy Tax Sales Tax Property TaxFiscal Year 5/13/2011 PROPOSED C - 23 GENERAL FUND ESTIMATED FUND BALANCE ACTIVITY Fund Balance Activity includes: FY 2011/12 Budgeted Revenue and Expenditure appropriations, and transfers to and from the General Fund. Authorized Carryovers reflect operating appropriations authorized in FY 2010/11 that are brought forward into FY 2010/11 appropriations as a funding source. The actual carryover amount will be determined at FY 2010/11 year-end, with funding offset by undesignated reserves. Effective FY 2005/06, a practice of equally distributing year-end undesignated fund balance between the Revenue Stabilization Reserve and Capital Improvements and Special Projects Reserve was established. An updated General Fund Reserve Policy will be considered as part of the FY 2011/12 budget.. Undesignated Fund Balance is year-end fund balance not previously identified for a specific purpose, and is therefore available to reprogram as appropriations or designated reserves by Council. Current Town practice is to designate all year-end fund balance to the two above reserves, thereby eliminating undesignated fund balance. EstimatedRevenues &Expenditures &Estimated July 1, 2011Fund BalanceFund BalanceJune 30, 2012 BalanceSourcesUsesBalance Reserved Fund Balance Reserve for Long Term Notes-$ -$ -$ -$ Advance to RDA1,500,000$ - - 1,500,000 Unreserved Fund Balance Undesignated Reserves Plus Appropriated Designated Reserves 1,620,334 33,424,883 32,916,128 2,129,089 Undesignated /Available Designated Reserves Manager's Contingency- - - - Designated Productivity100,000 - - 100,000 Open Space Reserve562,000 - - 562,000 GASB Market Fluctuations- - - - Sustainability Reserve140,553 - - 140,553 Economic Uncertainty Reserve3,678,001 - - 3,678,001 YE Savings- - - - Capital / Special Projects3,817,598 - (650,000) 3,167,598 Authorized Carryovers127,340 - - 127,340 Actuarial400,000 - - 400,000 Revenue Stabilization Reserve5,795,032 - - 5,795,032 Vasona Land Sale2,991,589 - (2,700,000) 291,589 Net Designated and Reserved (Sources) 20,732,447$ 33,424,883$ 29,566,128$ 17,891,201$ Total Use of and Addition To Reserves Use of / Addition to GF Reserves: 5/13/2011 PROPOSED C - 24 SCHEDULE OF INTERFUND TRANSFERS FISCAL YEAR 2011/12 2010/112010/112011/122011/12 Transfers InTransfers OutTransfers InTransfers Out General Funds General Fund463,920$ 900,000$ 416,920$ 3,350,000$ Special Revenue Funds Solid Waste Management HCD Housing Rehabilitation HCD-Community Dev Block Grant190,150 Urban Run-Off Program Special Revenue Grants Landscape & Lighting Districts Blackwell District460460 Kennedy Meadows District1,5101,510 Gemini Court District610610 Santa Rosa Heights District660660 Vasona Heights District1,4301,430 Hillbrook District250250 Arroyo Del Rancho District Internal Service Funds Equipment Fund194,000194,000 Worker's Comp Self Insurance Self Insurance Fund Office Stores Fund Management Information Systems Vehicle Maintenance Fund Facilities Maintenance Fund-100,000 Capital Project Funds GFAR900,000124,0003,450,000102,000 Traffic Mitigation35,00010,000 Grant Funded CIP Projects190,150 Storm Drain #1 Storm Drain #2 Storm Drain #3 Construction Utility Underground Gas Tax - Street & Signal106,000106,000 Redevelopment Agency Funds RDA - Capital Project Funds600,000650,000 RDA - Debt Service Fund 600,000650,000 RDA - Low / Moderate Housing Total Transfers 1,963,920$ 1,963,920$ 4,707,070$ 4,707,070$ Fund Description EstimatedAdopted Budget 5/13/2011 PROPOSED C - 25 FUND BALANCE ACTIVITY SUMMARY FISCAL YEAR 2011/12 7/1/11Plus PlusLessLessSource &6/30/12 EstimatedRevenues &Transfers Expenditures &TransfersUse of Estimated BalanceCarryforwardsInCarryforwardsOutReservesBalance General Fund Undesignated Reserves 10036000Undesignated FB Activity1,620,334$ 33,007,963416,92032,916,1283,350,000 3,350,000$ 2,129,089$ Identified FB Appropriation -- - - - - Total Fund Balance Available To Be Appropriated2,129,089$ Designated Reserves 10036007Civic Center Improvements-- - - - - 10036014Manager's Contingency-- - - - - - 10036015Designated Productivity100,000- - - - - 100,000 10036017Open Space Reserve562,000- - - - - 562,000 10036080Sustainability Reserve140,553- - - - - 140,553 10036023GASB Market Fluctuations-- - - - - - 10036150Economic Uncertainty Reserve3,678,001- - - - - 3,678,001 10036200YE Savings-- - - - - - 10036420Capital / Special Projects3,817,598- - - - (650,000) 3,167,598 10036018Authorized Carryovers127,340- - - - - 127,340 Reserve for Long Term Notes-- - - - - - 10036481Advance to RDA1,500,000- - - - - 1,500,000 10036482Actuarial400,000- - - - - 400,000 Designated for State ERAF III-- - 10036421Revenue Stabilization Reserve5,795,032- - - - - 5,795,032 Vasona Land Sale2,991,589- - - - (2,700,000) 291,589 Total General Fund20,732,446$ 33,007,963$ 416,920$ 32,916,128$ 3,350,000$ -$ 17,891,201$ Special Revenue Funds 21136000Housing Conservation Program(846)$ 12,500$ -$ 5,100$ -$ -$ 6,554$ 21236000Community Dev Block Grant268,420210,594- 26,781190,150- 262,083 22136000Solid Waste--- --- - 22236000Urban Run-Off Source Fund 59,257135,000- 135,900-- 58,357 23136000Blackwell Assessment District4,7253,240- 2,760460- 4,745 23236000Kennedy Assessment District22,53410,625- 6,1201,510- 25,529 23336000Gemini Assessment District10,4584,380- 4,390610- 9,838 23436000Santa Rosa Assessment District52,9135,950- 7,330660- 50,873 23536000Vasona Assessment District16,6529,935- 5,2401,430- 19,917 23636000Hillbrook Assessment District1,4496,070- 6,340250- 929 Total Special Revenue Funds435,563$ 398,294$ -$ 199,961$ 195,070$ -$ 438,826$ Internal Service 63136000Equipment Replacement3,062,621319,819$ -$ 10,092194,000$ -$ 3,178,348$ 61236000Worker's Comp Self Insurance2,813,497687,085- 623,097-- 2,877,485 61136000ABAG Self Insurance1,972,403532,958- 625,224-- 1,880,137 62236000Office Stores Fund 247,754118,500- 134,050- - 232,204 62136000Mgmt Information Systems2,282,8471,001,546- 1,056,207- - 2,228,186 63236000Vehicle Maintenance411,225540,100- 536,200- - 415,125 63336000Facilities Maintenance919,7541,050,300- 1,142,733- - 827,321 Total Internal Service Reserves11,710,099$ 4,250,308$ -$ 4,127,603$ 194,000$ -$ 11,638,804$ Trust & Agency 71136000Library Trust80,31245,800$ -$ 38,155$ -$ -$ 87,957$ 71336000Ness Trust Bequest190,2181,500- 191,750 - - (32) 712Library History Project8513,018- 2,000 - - 1,869 714Betty McClendon Trust97,0691,000- 97,629 - - 440 716Barbara J Cassin Trust501,2505,000- 150,000 - - 356,250 72136000Parking District #88325,038141,830- 148,265- - 318,603 Total Trust & Agency Reserves1,194,738$ 198,148$ -$ 627,799$ -$ -$ 765,087$ 5/13/2011 PROPOSED C - 26 FUND BALANCE ACTIVITY SUMMARY FISCAL YEAR 2011/12 7/1/11Plus PlusLessLessSource &6/30/12 EstimatedRevenues &Transfers Expenditures &TransfersUse of Estimated BalanceCarryforwardsInCarryforwardsOutReservesBalance Capital Project Funds 41136000GFAR11,793,7406,280,000$ 3,450,000$ 10,248,399$ 102,000$ -$ 11,173,341$ 41136080GFAR - Designated for Parking 1,460,210- - - - - 1,460,210 GFAR - PEG22,000- - - - - 22,000 47136000Traffic Mitigation79,2322,185,000-2,175,00010,000- 79,232 42136000Grant Funded CIP Projects8,081500,000190,150690,150-- 8,081 46136000Storm Drain #1269,44848,120-285,000-- 32,568 46236000Storm Drain #2635,40153,420---- 688,821 46336000Storm Drain #3(74,900)1,000---- (73,900) 47236000Construction Tax - Underground2,400,54851,010---- 2,451,558 48136000Gas Tax134,971834,310-650,000106,000- 213,281 Total Capital Projects Funds16,728,731$ 9,952,860$ 3,640,150$ 14,048,549$ 218,000$ -$ 16,055,192$ Redevelopment Agency 91136000RDA - Capital Project Funds1,262,87110,000$ 650,000$ 715,952$ -$ -$ 1,206,919$ 92136000RDA - Debt Service Fund 7,684,9468,810,055-8,199,535650,000 - 7,645,466 93136000RDA - Low / Moderate Housing 01,666,032-406,091- - 1,259,941 Total Redevelopment Reserves8,947,818$ 10,486,087$ 650,000$ 9,321,578$ 650,000$ -$ 10,112,327$ TOTAL RESERVES59,749,395$ 58,293,660$ 4,707,070$ 61,241,618$ 4,607,070$ -$ 56,901,438$ 5/13/2011 PROPOSED C - 27 FUND BALANCE RESERVES 5 YEAR COMPARATIVE BALANCES 6/30/20086/30/20096/30/20106/30/20116/30/2012 ActualActualActualEstimatedBudgeted YE BalanceYE BalanceYE BalanceYE BalanceYE Balance General Fund Reserved Fund Balances Reserve for Encumbrances----- Reserve for Long Term Notes548,261586,640--- Advance to RDA1,500,0001,500,0001,500,0001,500,0001,500,000 Actuarial----- Unreserved Fund Balances Undesignated Reserves Available to be Appropriated- - - 1,620,334 (1,220,911) Identified Fund Balance Appropriation- - Designated Reserves Civic Center Improvements----- Debt Service--- Manager's Contingency100,000100,000--- Designated Productivity100,000100,000100,000100,000100,000 Open Space Reserve562,000562,000562,000562,000562,000 Post Retirement Medical----- Market Flucations--526,525- Sustainability Reserve-240,553190,553140,553140,553 Actuarial400,000400,000400,000400,000 GASB Market Fluctuations456,430785,908--- Economic Uncertainty Reserve3,678,0013,678,0013,678,0013,678,0013,678,001 YE Savings1,432,000175,000--- Capital / Special Projects4,351,9213,670,0834,545,0983,817,5983,817,598 Authorized Carryovers31,910139,610127,340127,340 127,340 Designated for State ERAF III- - - - - Revenue Stabilization Reserve4,369,354 4,692,516 6,217,532 5,795,032 5,795,032 Vasona Land Sale- 6,078,967 2,991,589 2,991,589 2,991,589 Operting Grants- - - -- Total General Fund Reserves17,129,877$ 22,709,278$ 20,838,637$ 20,732,446$ 17,891,201$ Special Revenue Funds Solid Waste Fund296,554 - - - - Housing Conservation Program811,935 675,286 182,654 (846) 6,554 Community Dev Block Grant3,211 2,202 2,650 268,420 262,083 Urban Run-Off Source Fund 88,551 20,181 40,204 59,257 58,357 Blackwell Assessment District3,948 4,777 4,705 4,725 4,745 Kennedy Assessment District11,990 15,804 19,539 22,534 25,529 Gemini Assessment District8,451 9,766 11,078 10,458 9,838 Santa Rosa Assessment District60,354 57,981 54,953 52,913 50,873 Vasona Assessment District8,410 10,745 13,387 16,652 19,917 Hillbrook Assessment District7,531 4,543 1,969 1,449 929 Designated for Capital Imp- - - - - Total Special Revenue Funds1,300,935$ 801,284$ 331,139$ 435,563$ 438,826$ Internal Service Equipment Replacement3,090,850$ 3,286,022$ 3,096,960$ 3,062,621$ 3,178,348$ Worker's Comp Self Insurance2,584,056 2,583,280 2,725,375 2,813,497 2,877,485 ABAG Self Insurance1,855,443 2,091,698 2,078,635 1,972,403 1,880,137 Office Stores Fund 237,927 263,443 256,357 247,754 232,204 Management Information Systems2,124,081 2,175,716 2,210,653 2,282,847 2,228,186 Vehicle Maintenance231,301 268,331 428,529 411,225 415,125 Facilities Maintenance968,508 716,699 820,170 919,754 827,321 Total Internal Service Reserves11,092,166$ 11,385,189$ 11,616,677$ 11,710,099$ 11,638,804$ Fund Balance Reserves 5/13/2011 PROPOSED C - 28 FUND BALANCE RESERVES 5 YEAR COMPARATIVE BALANCES 6/30/20086/30/20096/30/20106/30/20116/30/2012 ActualActualActualEstimatedBudgeted Fund Balance ReservesYE BalanceYE BalanceYE BalanceYE BalanceYE Balance Trust & Agency Library Trust34,698$ 51,002$ 53,623$ 80,312$ 87,957$ Ness Trust Bequest179,518 185,008 188,718 190,218 (32) Library History Project9,464 3,366 851 851 1,869 Betty McClendon Trust91,379 94,179 96,069 97,069 440 Friends of the Library- - - - - Barbara J Cassin Trust- - - 501,250 356,250 Parking District #88331,435 328,060 326,358 325,038 318,603 Total Trust & Agency Reserves646,494$ 661,615$ 665,619$ 1,194,738$ 765,087$ Capital Project Funds GFAR9,974,385$ 9,528,699$ 22,418,258$ 11,793,740 11,173,341 GFAR - Designated for Parking 1,972,000 1,757,000 1,460,210 1,460,210 1,460,210 GFAR - PEG - - 22,000 22,000 22,000 Traffic Mitigation79,233 79,233 79,232 79,232 79,232 Grant Funded CIP Projects(305,711) (161,410) 474,646 8,081 8,081 Storm Drain #1207,464 207,256 201,328 269,448 32,568 Storm Drain #2455,489 510,697 571,981 635,401 688,821 Storm Drain #3227,673 (36,086) (50,600) (74,900) (73,900) Construction Tax-Undergrounding2,375,244 2,462,596 2,323,015 2,400,548 2,451,558 Gas Tax640,219 683,180 359,469 134,971 213,281 Total Capital Projects Funds15,625,995$ 15,031,165$ 27,859,539$ 16,728,731$ 16,055,192$ Redevelopment Agency RDA - Capital Project Funds2,997,773$ 2,065,623$ 1,409,013$ 1,262,871$ 1,206,919$ RDA - Debt Service Fund 6,291,674 7,988,113 7,419,222 7,684,946 7,645,466 RDA - Low / Moderate Housing 7,198,500 8,631,125 5,140,055 0 1,259,941 Total Redevelopment Reserves16,487,947$ 18,684,861$ 13,968,291$ 8,947,818$ 10,112,327$ TOTAL RESERVES62,283,414$ 69,273,392$ 75,279,903$ 59,749,395$ 56,901,438$ 5/13/2011 PROPOSED C - 29 DEPARTMENT REVENUES BY PROGRAM 2007/082008/092009/102010/112010/112011/12 ActualsActualsActualsAdoptedEstimatedAdopted Town Council 1101Administration-$ -$ -$ -$ -$ -$ Total Town Council-$ -$ -$ -$ -$ Town Clerk 1102Town Clerk-$ -$ -$ -$ -$ -$ Total Town Clerk-$ -$ -$ -$ -$ -$ Town Treasurer 1103Administration2,973,491$ 1,957,205$ -$ -$ -$ -$ Total Town Treasurer2,973,491$ 1,957,205$ -$ -$ -$ -$ Town Attorney 1301Administration591$ 2,455$ 4,000$ -$ 945$ -$ 1302ABAG - Self Insurance Fund586,436 540,326 491,082 511,820 511,870 532,958 Total Town Attorney587,027$ 542,781$ 495,082$ 511,820$ 512,815$ 532,958$ Administrative Services Department 1201Non-Departmental23,523,173$ 29,742,939$ 23,194,376$ 24,940,210$ 24,804,063$ 25,832,494$ 2101Town Manager Administration- - - - - 5,500 2103Housing Program- - - - - 12,500 2104HCD Housing Rehab- - - - 147,285 210,594 2201Human Resources- - - - - - 2202Workers' Compensation Fund668,518 650,526 648,890 675,590 675,612 687,085 2301Finance & Administrative Services1,138,511 1,139,107 1,941,466 2,140,410 1,538,276 1,652,981 2302Office Stores Fund104,521 144,924 119,598 124,500 120,800 118,500 2303Parking Assessment District157,336 145,082 144,182 146,088 146,088 141,830 2501Management Information Systems951,982 1,037,520 1,002,319 1,003,390 1,020,220 1,001,546 2801Operating Grant- - - - - 39,013 2999Pass Thru Accounts- - - - - 13,260 Total Administrative Services26,544,041$ 32,860,098$ 27,050,831$ 29,030,188$ 28,452,344$ 29,715,303$ Community Development 3101Administration- - - - - - 3201Developmental Review647,320 538,887 761,510 577,500 612,500 562,500 3401Code Compliance100 400 1,900 500 83,930 1,000 3301Inspection Services1,780,490 1,144,379 1,279,818 1,249,000 1,299,006 1,274,000 3202Advanced Planning56,099 236,298 411,148 299,000 244,000 299,000 3501BMP Housing Program- - - 69,226 69,226 107,699 3999Pass Thru Accounts470,115 780,649 949,711 916,800 518,500 669,500 Total Community Development2,954,124$ 2,700,613$ 3,404,087$ 3,112,026$ 2,827,162$ 2,913,699$ Police Department 4101Administration8,328$ 81,716$ 29,332$ 3,500$ 55,760$ 8,500$ 4201Records & Communication17,615 22,359 12,221 15,000 16,400 14,500 4202Personnel & Community Services315,701 267,543 246,943 331,010 331,010 341,210 4301Patrol533,922 628,332 686,259 601,050 592,200 573,700 4302Traffic423,181 328,968 531,554 421,510 386,216 386,216 4303Investigations291 3,649 10,481 3,200 900 575 4304Parking Program236,728 520,547 590,404 552,340 552,140 626,640 4800Grants Program - Police28,507 - 17,130 - - - 4999Pass Thru Accounts19,586 24,114 10,140 10,000 15,000 10,000 Total Police Department1,583,859$ 1,877,228$ 2,134,465$ 1,937,610$ 1,949,626$ 1,961,341$ 5/13/2011 PROPOSED C - 30 DEPARTMENT REVENUES BY PROGRAM 2007/082008/092009/102010/112010/112011/12 ActualsActualsActualsAdoptedEstimatedAdopted Parks & Public Works 5101Administration-$ -$ -$ -$ -$ -$ 5201Engineering Program Services- - - - - - 5202Engineering Development Srvcs292,624 295,304 415,299 427,100 427,100 427,100 5203Non-Point Source Fund166,660 135,000 135,000 135,000 135,000 135,000 5301Park Services171,144 207,174 198,743 179,985 206,450 201,985 5302Sustainability Fund- - - - - 50,660 5401Street & Signals6,760 372 9,943 - - - 5402Equipment Replacement409,460 427,220 389,675 334,560 334,560 319,819 5403Vehicle Maintenance612,247 638,021 624,500 487,600 487,600 540,100 5404Facilities Maintenance1,156,310 1,123,134 1,011,096 1,006,700 1,006,700 1,050,300 5405Property Damage32,919 117,117 82,107 - - - 5501Lighting & Landscape Districts36,595 36,340 35,709 40,200 40,200 40,200 5999Pass Thru Accounts103,309 146,398 129,432 280,000 280,000 280,000 8011GFAR6,985,786 3,151,950 17,807,049 1,393,698 1,221,293 9,730,000 8021Grant Funded CIP Projects1,204,396 696,557 2,379,704 1,025,219 1,974,574 690,150 8031Storm Drain #157,092 47,428 39,962 48,120 68,120 48,120 8032Storm Drain #264,394 55,208 61,284 54,320 63,420 53,420 8033Storm Drain #311,192 (2,303) 2,665 4,100 700 1,000 8041Traffic Mitigation- 46,100 60,428 454,000 368,877 2,185,000 8042Utility Undergrounding106,096 87,352 68,766 47,240 82,240 51,010 8051Gas Tax - Street & Signals560,610 526,623 505,041 494,350 796,048 834,310 Total Parks & Public Works11,977,594$ 7,734,995$ 23,956,402$ 6,412,192$ 7,492,882$ 16,638,174$ Community Services 6101Administration-$ -$ -$ -$ -$ -$ 6201Neighborhood Center28,300 26,106 14,555 61,000 61,060 - 6204Arts & Culture42,532 52,470 31,108 5,500 5,500 - 6205Community Grants- 2,975 - - - - 6302Sustainablity257,450 32,177 48,891 50,100 30,660 - 6303AB2020 Beverage Container7,704 7,714 5,000 - - - 6401Town Housing Services132,945 120,691 107,186 - - - 6501HCD Housing Program32,140 20,454 13,191 12,500 12,500 - 6502Comm. Development Block Grant2,839 1,098 1,061 124,401 - - 6503CDBG Block Grant101,863 131,948 48,885 - 147,285 - 6999Pass Thru Accounts1,840 3,054 1,255 - 13,260 - Total Community Services607,613$ 398,687$ 271,132$ 253,501$ 270,265$ -$ Library 7101Administration13,495$ 12,745$ 15,412$ 7,250$ 7,050$ 7,050$ 7201Adult Services- - - - - - 7202Children's Services- - - - - - 7203Acquisitons & Cataloging4,682 4,558 4,813 4,500 3,506 4,000 7204Circulation Services53,355 50,092 51,330 51,000 35,164 35,800 711Library Trust24,384 31,931 20,601 30,900 46,500 45,800 713Clelles Ness Bequest Trust4,950 5,490 3,710 2,000 1,500 1,500 712Library History Project3,141 1,520 1,076 100 3,335 3,018 714Betty McClendon Trust3,040 2,800 1,890 - 1,000 1,000 716Barbara J Cassin Trust- - - 1,000 501,250 5,000 Total Library107,047$ 109,136$ 98,832$ 96,750$ 599,305$ 103,168$ Redevelopment Agency 9101Capital Projects Fund688,569$ 641,908$ 580,951$ 625,000$ 617,937$ 660,000$ 9201Debt Service6,891,927 7,214,257 7,381,820 7,468,484 6,608,550 6,714,128 9202RDA DEBT FOR 1992 COPs260,456 251,210 249,271 253,500 255,000 253,000 9204RDA DEBT FOR 2002 COPs682,513 679,956 682,100 678,575 678,775 679,476 9205RDA DEBT TO 2010 COPS- - - 423,161 423,161 1,163,451 9301Low / Moderate Housing1,927,398 1,991,169 1,871,263 1,730,890 1,690,889 1,666,032 Total Redevelopment Agency10,450,863$ 10,778,500$ 10,765,405$ 11,179,610$ 10,274,312$ 11,136,087$ Carryforward of CIP Grant Revenue3516816 Total Revenues by Department:57,785,659$ 58,959,243$ 68,176,236$ 56,050,513$ 52,378,712$ 63,000,730$ 5/13/2011 PROPOSED C - 31 DEPARTMENTAL EXPENDITURES BY PROGRAM 2007/082008/092009/102010/112010/112011/12 ActualsActualsActualsAdoptedEstimatedAdopted Town Council 1101Administration147,830$ 163,364$ 160,202$ 181,429$ 174,184$ 209,182$ Total Town Council147,830$ 163,364$ 160,202$ 181,429$ 174,184$ 209,182$ Town Clerk 1102Administration2,418$ 1,021$ -$ -$ -$ -$ 1055Administration-$ -$ -$ -$ -$ -$ Total Town Clerk2,418$ 1,021$ -$ -$ -$ -$ Town Treasurer 1103Administration94,755$ 101,884$ -$ -$ -$ -$ Total Town Treasurer94,755$ 101,884$ -$ -$ -$ -$ Town Attorney 1301Administration251,654$ 229,980$ 251,667$ 223,105$ 218,900$ 227,041$ 611ABAG - Self Insurance Fund856,024 304,072 504,146 647,392 618,102 625,224 Total Town Attorney1,107,678$ 534,052$ 755,813$ 870,497$ 837,002$ 852,265$ Administrative Services Department 1201Non-Departmental$2,193,204$2,855,735$5,823,651$4,934,270$3,698,5065,109,297$ 2101Town Manager Administration470,203 452,184 673,498 650,837 658,878 1,048,324 212CDBG Administration- - - - 99,090 211HCD Housing Rehab- 5,100 212Comm. Development Block Grant- 26,781 2201Human Resources576,627 545,066 390,688 410,560 422,978 397,112 2301Finance & Administrative Services1,087,349 1,060,473 1,062,106 1,095,427 1,064,318 1,104,484 2401Town Clerk218,699 283,973 230,394 224,519 226,240 161,778 2801Tobacco Prevention Initiatitves- - - - - 39,013 2999Pass Through- - - - - 13,254 612Workers' Compensation Fund477,923 651,302 506,795 632,463 587,490 623,097 622Office Stores Fund107,937 119,408 126,686 143,000 129,403 134,050 621Management Information Systems863,721 780,616 967,384 1,114,436 948,026 1,056,207 721Parking Assessment District145,616 148,457 145,884 147,408 147,408 148,265 Total Administrative Services6,222,263$ 6,897,214$ 9,927,086$ 9,352,920$ 7,883,247$ 9,965,852$ Community Development 3101Administration105,251$ 89,769$ 106,347$ 141,966$ 147,763$ 142,913$ 3201Developmental Review953,049 846,853 792,228 811,430 807,605 834,475 3401Code Compliance51,044 54,049 26,904 48,666 45,077 46,327 3301Inspection Services1,290,318 1,201,568 1,159,387 1,036,499 1,022,651 1,055,360 3202Advanced Planning167,586 324,709 371,139 340,422 327,991 354,350 3501BMP Housing Program- - - 69,226 67,052 107,699 3999Pass Thru Accounts470,237 780,654 949,706 916,800 518,500 669,500 Total Community Development3,037,485$ 3,297,602$ 3,405,711$ 3,365,009$ 2,936,639$ 3,210,624$ Police Department 4101Administration494,777$ 500,754$ 488,663$ 483,464$ 482,648$ 493,323$ 4201Records & Communication1,459,075 1,566,101 1,693,890 1,790,230 1,729,320 1,856,205 4202Personnel & Community Services624,802 603,670 822,623 832,001 804,422 858,712 4301Patrol6,418,423 6,992,385 6,297,791 6,429,649 6,391,772 6,720,066 4303Investigations2,017,421 2,153,800 2,138,493 2,147,494 2,206,571 2,259,000 4302Traffic740,387 719,597 769,632 833,221 798,186 887,447 4304Parking Program442,932 495,338 548,421 580,882 588,579 623,747 4999Pass Thru Accounts19,586 24,114 10,592 10,000 17,000 10,000 4807Recovery Act Jag Grant14,047 2270Police Department Grants15,065 Total Police Department12,232,468$ 13,055,758$ 12,784,152$ 13,106,941$ 13,018,498$ 13,708,500$ 5/13/2011 PROPOSED C - 32 DEPARTMENTAL EXPENDITURES BY PROGRAM 2007/082008/092009/102010/112010/112011/12 ActualsActualsActualsAdoptedEstimatedAdopted Parks & Public Works 5101Administration313,785$ 375,740$ 260,812$ 265,116$ 260,547$ 276,366$ 5201Engineering Program Services 681,119 787,382 688,241 844,148 653,674 847,369 5202Engineering Development Srvcs798,366 769,055 674,246 592,179 697,798 614,139 5301Park Services1,917,504 2,194,912 1,532,274 1,715,937 1,661,532 1,647,648 5302Conservation, Recycling Sust.208,395 5401Streets / Signals / Sidewalks1,376,196 1,436,056 1,762,184 1,765,000 1,712,052 1,846,990 5405Property Damage49,340 82,237 89,996 - - - 5999Pass Thru Accounts105,290 146,397 129,432 280,000 288,226 280,000 222Urban Run-Off Program Fund163,209 179,920 114,978 137,432 115,947 135,899 23XLighting & Landscape Districts28,480 28,489 28,771 35,780 32,180 32,180 411GFAR3,257,216 3,696,381 5,051,708 2,281,337 10,821,811 10,248,399 471Traffic Mitigation- 39,099 56,604 444,000 333,877 2,460,000 421Grant Funded CIP Projects1,368,654 552,256 1,743,647 1,025,219 2,548,783 690,150 461Storm Drain #126,337 163,890 45,890 - - - 462Storm Drain #2- - - - - - 463Storm Drain #321,000 261,457 17,180 25,000 - 472Utility Undergrounding- - 208,347 4,707 - 481Gas Tax - Street & Signals718,223 377,661 722,753 500,000 914,546 - 631Equipment Replacement435,606 211,067 384,737 136,366 174,899 10,093 632Vehicle Maintenance571,825 600,994 464,303 537,428 504,904 536,200 633Facilities Maintenance901,460 941,395 899,826 1,072,372 907,116 1,042,733 270PPW Department Grants Total Parks & Public Works12,733,610$ 12,844,388$ 14,875,929$ 11,632,314$ 21,657,599$ 20,876,561$ Community Services 6101Administration132,533$ 126,229$ 109,276$ 178,530$ 158,900$ -$ 6201Neighborhood Center515,646 458,854 292,002 153,223 114,289 - 6401Housing Program132,944 120,691 107,186 - - - 212CDBG Administration47,663 29,542 28,803 6205Community Grants145,638 145,147 130,062 146,813 111,353 - 6204Arts & Culture80,402 94,888 68,004 120,749 107,986 - 6303AB2020 Grants15,155 - - - 6999Pass Thru Accounts1,840 3,054 716 - - - 6302Conservation, Recycling196,324 202,880 242,705 193,298 - Solid Waste307,449 211HCD Housing Rehab21,376 157,104 505,823 251,700 196,000 48,297 46,447 Total Community Services1,386,125$ 1,348,738$ 1,478,767$ 1,123,262$ 910,629$ -$ Library 7101Administration289,531$ 310,562$ 306,663$ 301,058$ 332,143$ 323,255$ 7201Adult Services547,514 559,681 564,512 471,924 482,939 421,507 7202Children's Services384,377 408,927 374,580 406,945 390,455 404,536 7203Acquisitons & Cataloging220,130 224,881 205,435 177,900 161,445 182,621 7204Circulation Services506,462 514,540 543,380 503,383 659,790 535,601 711Library Trust18,340 15,627 17,980 43,875 19,811 38,155 713Clelles Ness Bequest Trust- - - 189,007 - 191,750 712Library History Project9,850 7,617 3,592 - 3,335 2,000 714Betty McClendon Trust5,691 - - 96,179 - 97,629 715Barbara J Cassin Trust- - - - - 150,000 Total Library1,981,895$ 2,041,835$ 2,016,142$ 2,190,271$ 2,049,918$ 2,347,054$ Redevelopment Agency 911Capital Projects Fund2,007,715$ 1,574,059$ 1,237,563$ 704,125$ 764,079$ 715,952$ 921Debt Service5,300,269 5,873,986 8,307,082 8,812,880 7,099,762 8,849,535 931Low / Moderate Housing1,285,874 558,544 5,362,334 3,527,548 6,830,945 406,091 Total Redevelopment Agency8,593,858$ 8,006,590$ 14,906,979$ 13,044,553$ 14,694,786$ 9,971,578$ Total Operating Expenditures47,540,385$ 48,292,446$ 60,310,780$ 54,867,196$ 64,162,502$ 61,141,616$ Plus Transfers Out7,211,444 3,676,819 1,858,951 2,031,896 1,963,920 4,707,070 Carryforward CIP Projects23,230,265$ Total Expenditures by Department:54,751,829$ 51,969,265$ 62,169,731$ 80,129,357$ 66,126,422$ 65,848,686$ 5/13/2011 PROPOSED C - 33 SUMMARY OF POSITIONS DEPARTMENTAL STAFF BY FUND Authorized2007/082008/092009/102010/112011/12 PositionsFundedFundedFundedFundedFunded General Fund Town Council0.85 0.85 0.95 0.85 0.85 0.85 Town Attorney0.85 0.80 0.90 0.90 0.90 0.85 Administrative Services15.10 14.75 13.85 12.50 12.25 15.10 Community Development15.45 17.95 17.80 17.00 15.05 15.45 Police Department59.50 61.00 61.00 60.00 59.50 59.50 Parks & Public Works26.30 27.85 31.50 29.50 26.80 26.30 Community Services - 3.90 5.15 5.15 3.20 - Library8.35 10.35 10.35 10.35 8.60 8.35 Total General Fund Staff126.40 137.45 141.50 136.25 127.15 126.40 Special Revenue Funds Administrative Services- 0.10 - - - - Parks & Public Works1.00 1.72 1.00 1.00 1.00 1.00 Community Services - 1.30 0.05 0.05 0.05 - Total Special Revenue Fund Staff1.00 3.12 1.05 1.05 1.05 1.00 CIP Library Project Funds PPW Manager1.00 - - - 1.00 1.00 Total CIP Library Proj Funds Staff1.00 - - - 1.00 1.00 Internal Service Funds Town Attorney0.65 0.25 0.65 0.65 0.65 0.65 Administrative Services3.70 3.95 3.80 3.65 3.65 3.70 Parks & Public Works3.70 4.43 4.50 4.50 3.70 3.70 Total Internal Services Funds Staff8.05 8.63 8.95 8.80 8.00 8.05 Redevelopment Agency Administrative Services0.80 0.80 0.80 0.80 0.80 0.80 Community Development0.75 0.85 1.00 0.80 0.75 0.75 Parks & Public Works- - - - - - Community Services - 0.05 0.05 0.05 - - Total Redevelopment Agency Staff1.55 1.70 1.85 1.65 1.55 1.55 Total Town FTEs 138.00 150.90 153.35 147.75 138.75 138.00 Administrative Services Department staffing numbers include the following programs: Town Manager's Office; Human Resources; Finance & Administrative Services; Clerk Administration; Management Information Services;and several programs prevailing provided in the Community Services Department. 5/13/2011 PROPOSED C - 34 SUMMARY OF POSITIONS BUDGETED FTES BY DEPARTMENT Blue Bar Shading – Town Staff Purple Bar Shading – Hourly Employees FY 2011/12 Budgeted FTEs by Department (Includes Converted Hourly Employees) Administrative Services Department staffing numbers include the following six programs: Town Manager’s Office; Human Resources; Finance & Administrative Services; Clerk Administration; Management Information Services; and several programs prevailing provided in the Community Services Department. Hourly Employee positions result from seasonal, temporary, and part-time labor needs. Authorized/Hourly Emp FundedStaffTotal Town Staffconverted Budgeted DepartmentsPositionsto FTEsPositions Town Council0.85 0.08 0.93 Town Attorney1.50 - 1.50 Administrative Services 19.60 0.89 20.49 Community Development16.20 0.78 16.98 Police Department59.50 1.40 60.90 Parks & Public Works32.00 4.23 36.23 Library8.35 4.85 13.20 Total Positions138.00 12.23 150.23 5/13/2011 PROPOSED C - 35 SUMMARY OF POSITIONS FUNDED FTES BY DEPARTMENT Five Year Staffing Trend Note – FTEs represent Town staff positions funded in annual budgets. Numbers do not include temporary hours or the filled or unfilled status of the positions. 2007/082008/092009/102010/112011/12 DepartmentsFundedFundedFundedFundedFunded Town Council0.85 0.85 0.95 0.85 0.85 Town Attorney1.00 1.50 1.50 1.50 1.50 Administrative Services19.60 18.45 16.95 16.70 19.60 Community Development18.80 18.80 17.80 15.80 16.20 Police Department61.00 61.00 60.00 59.50 59.50 Parks & Public Works34.00 37.00 35.00 32.50 32.00 Community Services 5.25 5.25 5.25 3.25 - Library10.35 10.35 10.35 8.60 8.35 Total Budgeted FTEs150.85 153.20 147.80 138.70 138.00 5/13/2011 PROPOSED C - 36 SUMMARY OF PERSONNEL CHANGES FY 2011/12 he Town’s total budgeted labor and benefit costs for FY 2011/12 increased to $22.3 million ($21.5 million in FY 2010/11). Of this amount, labor and benefit costs in the General Fund account for nearly $20.7 million ($19.9 million in FY 2010/11) or 57.7% of the Town’s General Fund expenditures. Contractually obligated increases in salaries, health insurance rates and retirement are driving labor costs up significantly, offset by continuing reductions in staffing, primarily through the elimination of vacant positions. A number of cost saving strategies have been employed in the budget to help mitigate part of the increase in personnel costs. The following discussion describes some of the staffing expenditures, savings and budget impacts. Employee Compensation and Benefits Personnel costs represent salaries of full and part-time personnel (including vacation, holiday, and sick leave compensation) and benefits, including health coverage, life and disability insurance, and retirement contributions. For represented positions, annual wage increases and benefit adjustments are negotiated under each bargaining unit’s Memorandum of Understanding (MOUs). Wage increases and benefit adjustments for unrepresented positions are determined under the Council’s authority and are not subject to bargaining. Memorandums of Understanding/Wages The FY 2011/12 budget assumes that the Town will achieve savings of approximately $800,000 through cost containment strategies, which include 40 hours of unpaid furloughs per employee (pro-rated for part- time employees.) Discussions with the bargaining units are underway regarding the specific terms affecting represented employees. Highlights of the existing MOUs or known- actions are as follows: The Town Employees Association (TEA) negotiated a new Tentative Agreement with no scheduled increases and 10% cost-sharing for dependent health coverage beginning January 1, 2012. The agreement also includes a two-tier pension plan for new employees hired after January 1, 2012. The Tentative Agreement is pending Council adoption. By resolution, the salaries for confidential employees mirror the TEA contract. Park and Public Works maintenance employees, represented by AFSCME, requested to delay their bargaining process for a new contract until after the T.E.A. agreement is finalized. The Town is honoring AFSCME’s request for a delay. The Town’s agreement with the Police Officer’s Association contractually obligates the Town to provide a 4% increase to all sworn employees effective July 1, 2011. The 4% increase was previously negotiated but was delayed one year by mutual agreement. The parties are discussing options to further restructure the contract in lieu of furloughs given impacts on patrol scheduling and coverage. In Spring 2010, patrol operations transitioned to 12-hour shift to provide staffing flexibility and reduce overtime. Implementation of this new schedule will be closely monitored. Management’s salary and benefit terms are reflected in the Town’s Management Compensation Plan which is approved by Council. Management employees will not receive an increase in FY 2011/12 and will begin paying 5% for dependent health coverage effective January 1, 2012. Benefits Although no major coverage changes are anticipated for health insurance benefits, general increases in medical insurance rates are anticipated and will adversely impact budgeted labor costs. The Town’s basic insurance premium coverage (Kaiser) increased by 7% effective January 1, 2011. The new rates effective January 2012 will not be known until November 2011. T 5/13/2011 PROPOSED C - 37 SUMMARY OF PERSONNEL CHANGES FY 2011/12 Pension Plan The Town’s two pension plans are 2.5% at 55 (effective July 1, 2008, prior formula was 2% at 55) for "Miscellaneous Employees” (non-safety) personnel and 3% at 50 for “Safety Employees” (Sworn Personnel). A two-tier pension plan is currently being negotiated for miscellaneous employees to change the formula to 2% at 60 for new hires after January 1, 2012. Pension reform continues to be an important topic in regard to cost-containment and staff is monitoring a number of state-wide initiatives that may impact future pension costs. In prior years, specifically from FY 1998/99 through FY 2003/04, retirement costs for miscellaneous and safety employees were negligible due to PERS “super funding” calculations from prior investment boom years. Following conservative practices, the Town continued to charge itself a PERS retirement expense (based on the average PERS employer rates of years past) during these low-rate years and set aside the savings in a reserve account to be used to offset future increases in PERS rates. More recently, however, due to the low interest rate climate, PERS has been compelled to significantly increase contribution rates to cover rising retiree costs and PERS investment losses sustained in the down economy. In FY 2011/12, the Town’s miscellaneous employee rate will increase to 18.5%; the safety rate will increase to 38.6%. As anticipated, a portion of this increase in retirement costs will be offset with the utilization of the PERS reserve account which has a current balance of $2.8 million. The planned draw down of reserves is anticipated to smooth the effects of any future rate increases, should they occur. The added benefit of expensing retirement costs and setting a liability account aside during the employer “zero rate” years is the stability that it has afforded staffing levels. Strategically using the PERS reserve will mitigate impacts of forecasted rate increases. Issued by CalPERS in October 2010, the following schedule reflects the Town’s PERS pension rate for FY 2011/12 and expected rate for FY 2012/13. All other future rates are based on the Town’s five-year forecast model. PERS Pension Plan FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 Safety 3% @ 50 33.55%33.60%33.84%33.58%38.65%39.9%**46.50%49.00%49.50%49.50% Misc 2.5% @ 55 * 12.99%15.18%14.60%14.43%18.49%19.6%**20.00%21.50%22.00%22.50% ** Based on estimates received from PERS Actuarials in Oct 2010. *According to union contracts with T.E.A. and AFSCME the Town changed the retirement formula from 2% at 55 to 2.5% at 55 effective July 1, 2008 in exchange for salary consession. 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 FY 14/15 FY 15/16 FY 16/17 Safety 3% @ 50 Misc 2.5% @ 55 * 5/13/2011 PROPOSED C - 38 SUMMARY OF PERSONNEL CHANGES FY 2011/12 Budget Management Strategies A number of strategies have been implemented to mitigate rising personnel costs. These include: charging staff time for grant-funded and Redevelopment Agency project work and proprietary services; increasing user fees to recover staff time costs for Town services; focusing staff time on core services to maintain the reduction in budgeted overtime; reducing hourly staffing use; and the elimination of vacant, benefited positions. Overtime Overtime expenditures continue to be assessed and adjustments continue to be made to reduce expenses where feasible. While unpredictable or non-controllable events will undoubtedly have their impact on the limited public safety and public works maintenance resources of the Town, adjustments to schedules and workload planning continues to generate a reduction in budgeted overtime from prior years. As a consequence, some non-critical Town services may see a reduction in service levels caused by staff being limited to regular work shifts; however, the restrictions have not proven to be problematic for normal operations of the Town. In March 2011, the patrol staffing structure was modified from a combined 10- hour and 12-hour structure to a straight 12 hour structure, increasing the number of officers on each shift while reducing the number of patrol teams. As a result of this change, the Police Department has been able to use the fifth patrol sergeant position to manage scheduling, training, and overtime accruals as well as community problem solving, specialized enforcement, and outreach efforts during the shift transition. Staffing Changes The FY 2011/12 Operating Budget has 150.23 budgeted positions, including temporary staff, and reflects a reduction of .18 FTE. Given the limited number of anticipated vacancies in FY 2011/12, reorganization strategies were put in place, emphasizing the centralization of customer-based functions, cross training, and realignment of work duties and responsibilities. The recommended FY 2011/12 staffing levels reflect the following changes from the prior year’s adjusted budget: Administrative Services – The Administrative Services budget, which includes the Town Manager’s Office, Human Resources, Finance, Clerk, and Management Information Systems (MIS), reflects an administrative restructuring strategy to better align services to achieve operational efficiencies. A cost neutral staffing plan has been developed, enabling the full integration of the Community Services Department into various Town departments, including the Administrative Services Department, and a realignment of Clerk functions. This staffing realignment will enable staff to allocate resources to enhance emergency preparedness and community outreach efforts as reflected in the adopted 2011 – 2013 Council Strategic Goals. To achieve this, an existing FTE in the Administrative Services Department was modified to serve as a Community Outreach Coordinator in the Police Department. Legal Services – As part of the administrative restructuring discussed above, the Town Attorney’s Office was reorganized to include a half-time Deputy Town Attorney that will also be appointed as a half-time Clerk Administrator. Community Development – The Community Development budget reflects the reallocation of .40 FTE from the Finance Department to provide support for increased housing-related responsibilities. Police –The Police Department budget reflects the reallocation of an existing FTE from the Administrative Services Department to provide additional support for emergency preparedness and outreach efforts as part of the 2011-2013 Council Strategic Goals ( this positions is funded in the Non-Departmental program). 5/13/2011 PROPOSED C - 39 SUMMARY OF PERSONNEL CHANGES FY 2011/12 Parks & Public Works (PPW) – The Parks and Public Works Department budget reflects a reduction of .50 FTE as a result of staffing adjustments and position reclassifications. Also included is the reallocation of an existing 0.5FTE as a result of the Administrative Services and Community Services restructuring. Library – The Library Department budget reflects a recommended reduction of .25 FTE, resulting in a Sunday closure and extended hours on Saturdays. Multiple reduction scenarios were studied; however, elimination of Sundays generated the greatest cost savings and the least operational impact. Internal Service Fund Allocations In addition to direct personnel expenditures, departments are charged for internal support services and employee insurance costs through payroll allocation charges. Appropriate charge-back rates are established based on either employee group historical costs or through a flat surcharge per employee. Annual reviews of these funds may result in adjustments to the rates. Liability Insurance Self-Insurance Fund rates (liability claim insurance premiums) for FY 2011/12 remain at the prior year rates as the Self-Insurance Fund Balance continues to be more than sufficient, and revenues are keeping pace with expenditures. Workers Compensation The Workers Compensation fund balance also continues to be healthy. The program’s allocation charges were increased in FY 2004/05 to keep pace with the increase in insurance premiums, and have been adjusted in FY 2011/12 to keep pace with increasing expenditures. Management Information The Management Information Systems (MIS) program is funded through two different charge-backs to the departments. One charge is based on a percentage of salary to fund the salaries and operating expenses of the MIS program. The second allocation charge is based on the department’s computer and printer equipment, established to fund the replacement cost of current technology equipment. 5/13/2011 PROPOSED C - 40 TOWN STAFF POSITIONS BY HOME DEPARTMENT Authorized2007/082008/092009/102010/112011/12 PositionsFundedFundedFundedFundedFundedComments Town Attorney1.00 1.00 1.00 1.00 1.00 1.00 Deputy Town Attorney0.50 - - - - 0.50 CY add .50 FTE. Position shared with .50 Clerk Administer position Legal Admin Assistant- - - 0.50 0.50 - CY delete .50 FTE Legal Assistant- - 0.50 - - - TOTAL FTEs1.50 1.00 1.50 1.50 1.50 1.50 Town Manager1.00 1.00 1.00 1.00 1.00 1.00 Assistant Town Manager1.00 1.00 1.00 1.00 1.00 1.00 Deputy Town Manager1.00 - - - - 1.00 CY add 1.0 FTE Administrative Programs Mgr.- 1.00 1.00 - - - Executive Asst. to Town Mgr.1.00 1.00 1.00 1.00 1.00 1.00 Economic Vitality Manager1.00 1.00 1.00 1.00 1.00 1.00 Office Clerk1.65 0.80 0.90 0.90 0.90 1.65 CY add .75 FTE Staff Technician0.75 - - - - 0.75 CY add .75 FTE TOTAL FTEs7.40 5.80 5.90 4.90 4.90 7.40 Community Services Director- 1.00 1.00 1.00 10 CY delete 1.0 FTE Administrative Analyst- 0.50 0.50 0.50 0.50CY delete .50 FTE Administrative Secretary- 1.00 1.00 1.00 1 0CY delete 1.0 FTE Senior Coordinator- 1.00 1.00 1.00 00 Volunteer Coordinator- 0.75 0.75 0.75 0.750 CY delete .75 FTE Secretary I - 1.00 1.00 1.00 0 0 TOTAL DEPARTMENT FTEs- 5.25 5.25 5.25 3.25 - Human Resources Director1.00 1.00 1.00 1.00 1.00 1.00 Administrative Analyst1.00 1.00 1.00 1.00 1.00 1.00 Human Resources Specialist- 0.25 0.25 0.25 - - TOTAL FTEs2.00 2.25 2.25 2.25 2.00 2.00 Finance & Admin. Director1.00 1.00 1.00 1.00 1.00 1.00 Assistant Budget/Finance Director1.00 - - - - 1.00 CY add 1.0 FTE Finance Manager- 1.00 1.00 1.00 1.00 - CY delete 1.0 FTE Accountant/Finance Analyst1.00 1.40 1.40 1.40 1.40 1.00 CY delete .40 FTE Payroll Specialist1.00 1.00 1.00 1.00 1.00 1.00 Budget Analyst 0.50 - - - - 0.50 CY add .50 FTE Account Technician2.00 3.00 2.60 2.00 2.00 2.00 TOTAL FTEs6.50 7.40 7.00 6.40 6.40 6.50 Clerk Administrator0.50 1.00 1.00 1.00 1.00 0.50 CY delete .50 FTE. Position shared with .50 FTE Deputy Town Attorney position Deputy Clerk0.50 0.75 0.75 0.75 0.75 0.50 CY delete .25 FTE MIS Specialist- 0.50 - - - - TOTAL FTEs1.00 2.25 1.75 1.75 1.75 1.00 MIS Manager1.00 1.00 1.00 1.00 1.00 1.00 Network Administrator1.00 1.00 1.00 1.00 1.00 1.00 IT Technician0.75 0.50 0.75 0.75 0.75 0.75 MIS Specialist- 0.50 - - - - TOTAL FTEs2.75 3.00 2.75 2.75 2.75 2.75 TOWN MANAGER'S OFFICE HUMAN RESOURCES FINANCE & ADMINISTRATIVE SERVICES CLERK ADMINISTRATION MANAGEMENT INFORMATION SERVICES COMMUNITY SERVICES TOWN ATTORNEY'S OFFICE 5/13/2011 PROPOSED C - 41 TOWN STAFF POSITIONS BY HOME DEPARTMENT Authorized2007/082008/092009/102010/112011/12 PositionsFundedFundedFundedFundedFundedComments Community Development Dir.1.00 1.00 1.00 1.00 1.00 1.00 Asst. Community Dev. Dir.- 1.00 1.00 1.00 - - Deputy Town Manager- - - 1.00 - - Planning Manager1.00 - - - 1.00 1.00 Building Official1.00 1.00 1.00 1.00 1.00 1.00 Administrative Analyst1.00 0.60 0.60 0.60 0.60 1.00 CY add .40 FTE Administrative Secretary1.00 1.00 1.00 1.00 1.00 1.00 Secretary III1.00 1.00 1.00 1.00 1.00 1.00 Senior Planner2.00 1.00 1.00 1.00 2.00 2.00 Associate Planner2.00 3.00 3.00 2.00 1.00 2.00 CY add 1.0 FTE Planner- 1.00 1.00 1.00 1.00 - CY delete 1.0 FTE Assistant Planner- 1.00 1.00 1.00 - - Planning Technician0.50 - - - 0.50 0.50 Building Inspector 3.50 4.00 4.00 4.00 3.50 3.50 Code Compliance Officer- 1.00 1.00 - - - Counter Technician 2.00 2.00 2.00 2.00 2.00 2.00 TOTAL FTEs16.00 18.60 18.60 17.60 15.60 16.00 Chief of Police1.00 1.00 1.00 1.00 1.00 1.00 Police Captain2.00 2.00 2.00 2.00 2.00 2.00 Police Sergeant8.00 9.00 9.00 8.00 8.00 8.00 Police Corporal 6.00 5.00 5.00 5.00 6.00 6.00 Police Officer24.00 25.00 25.00 26.00 24.00 24.00 Community Outreach 1.00 - - - - 1.00 CY add 1.0 FTE Community Services Officer4.00 4.00 4.00 4.00 4.00 4.00 Crime Analyst- 1.00 - - - - Police Admin Services Mgr.1.00 1.00 1.00 1.00 1.00 1.00 Executive Assistant to Chief1.00 1.00 1.00 1.00 1.00 1.00 Communications Dispatcher7.50 7.00 7.00 7.00 7.50 7.50 Parking Control Officer2.00 2.00 2.00 2.00 2.00 2.00 Police Records Specialist 3.00 3.00 4.00 3.00 3.00 3.00 TOTAL FTEs60.50 61.00 61.00 60.00 59.50 60.50 POLICE COMMUNITY DEVELOPMENT 5/13/2011 PROPOSED C - 42 TOWN STAFF POSITIONS BY HOME DEPARTMENT Authorized2007/082008/092009/102010/112011/12 PositionsFundedFundedFundedFundedFundedComments Parks & Public Works Director1.00 1.00 1.00 1.00 1.00 1.00 Asst PPW Dir/Town Engineer1.00 1.00 1.00 1.00 1.00 1.00 Superintendent2.00 2.00 2.00 1.00 2.00 2.00 PPW Manager1.00 - - 1.00 1.00 1.00 PPW Supervisor- 1.00 1.00 1.00 - - Administrative Analyst1.00 1.00 1.00 1.00 1.00 1.00 Administrative Specialist1.00 1.00 1.00 1.00 1.00 1.00 Public Works Specialist- 1.00 2.00 - - - Administrative Secretary1.00 1.00 1.00 2.00 1.00 1.00 Secretary III1.00 - - - 1.00 1.00 Environmental Service Coordinator0.50 - - - - 0.50 CY add .50 FTE Associate Civil Engineer 3.00 3.00 3.00 3.00 3.00 3.00 Assistant Civil Engineer1.00 1.00 1.00 1.00 1.00 1.00 Engineering Technician1.00 - 1.00 1.00 1.00 1.00 Sr Engineering Inspector 1.00 1.00 1.00 1.00 1.00 1.00 Engineering Inspector- 1.00 1.00 2.00 - - Building Inspector0.50 - - - 0.50 0.50 Parks Service Officer1.00 2.00 2.00 1.00 1.00 1.00 Town Arborist1.00 1.00 1.00 1.00 1.00 1.00 Tree Trimmer/High Climber- 1.00 1.00 1.00 1.00 - CY delete 1.0 FTE Lead Parks & Maint. Worker3.00 2.00 2.00 2.00 3.00 3.00 Sr. Parks & Maintenance Worker- - 1.00 - - - Parks & Maintenance Worker9.00 9.00 9.00 9.00 8.00 9.00 CY add 1.0 FTE Sweeper Operator1.00 1.00 1.00 1.00 1.00 1.00 Equipment Mechanic1.00 2.00 2.00 1.00 1.00 1.00 Apprentice Mechanic- - - 1.00 - - Facility Technician- 1.00 1.00 1.00 1.00 - CY delete 1.0 FTE TOTAL DEPARTMENT FTEs32.00 34.00 37.00 35.00 32.50 32.00 PARKS and PUBLIC WORKS DEPARTMENT 5/13/2011 PROPOSED C - 43 TOWN STAFF POSITIONS BY HOME DEPARTMENT *Addition of Library Manager/deletion of Principal Librarian occurred during the FY 2010/11 mid-year update process. Authorized2007/082008/092009/102010/112011/12 PositionsFundedFundedFundedFundedFunded Library Director1.00 1.00 1.00 1.00 1.00 1.00 Assistant Library Director- 1.00 1.00 1.00 - - Library Manager*2.00 - - - - 2.00 *CY add 2.0 FTE Principal Librarian- 2.00 2.00 2.00 2.00 - *CY delete 2.0 FTE Librarian2.25 2.25 2.25 2.25 2.25 2.25 Circulation Supervisor1.00 1.00 1.00 1.00 1.00 1.00 Library Assistant1.50 2.50 2.50 2.50 1.75 1.50 CY delete .25 FTE Secretary III0.60 0.60 0.60 0.60 0.60 0.60 TOTAL DEPARTMENT FTEs8.35 10.35 10.35 10.35 8.60 8.35 TOTAL TOWN FTEs138.00 150.90 153.35 147.75 138.75 138.00 2007/082008/092009/102010/112011/12 FundedFundedFundedFundedFunded Town Council5.00 5.00 5.00 5.00 5.00 Town Clerk1.00 1.00 - - - Town Treasurer1.00 1.00 - - - TOTAL ELECTED OFFICIALS7.007.005.005.005.00 2007/082008/092009/102010/112011/12 Temporary Hours by DepartmentFundedFundedFundedFundedFunded Town Council175 175 175 175 175 Administrative Services 425 1,425 1,621 2,346 1,848 Community Development 120 - - - 1,620 Police Department3,640 3,640 2,920 2,920 2,920 Parks & Public Works 8,760 5,184 6,780 7,412 8,791 Community Services470 470 470 255 - Library Department10,093 10,093 10,093 11,150 10,080 Total Temporary Hours by Department23,683 20,987 22,059 24,258 25,434 CONVERTED HOURLY EMPLOYEES11.39 10.09 10.61 11.66 12.23 (1.00 FTE = 2080 hours) LIBRARY ELECTED OFFICIALS HOURLY EMPLOYEES 5/13/2011 PROPOSED C - 44