Loading...
Budget Presentation 2017-18 Final FY 2017/18 OPERATING AND CAPITAL BUDGET & FY 2017/18 - 2021/22 CAPITAL IMPROVEMENT PROGRAM Town Council Meeting 5/16/2017 1 Good Governance Community Character Quality Public Infrastructure Public Safety Civic Enrichment Fiscal Stability CORE GOALS 2 Reconstruct Phase II of Almond Grove Streets Complete the Bicycle Pedestrian Master Plan Create a Complete Streets Policy Implementation Plan Enhance the Diversity of Businesses in the Downtown Address Downtown Parking Address Unfunded Pension and OPEB Liabilities Develop Measure B Transportation Projects and Funding Requests Reduce Summer Cut Through Traffic Install Bicycle and Pedestrian Improvements Obtain an Age-Friendly Community Designation STRATEGIC PRIORITIES FY 2017-2019 3 Key Principles: Balance the budget to maintain service levels Continue to make progress on Strategic Priorities identified by the Town Council Identify opportunities to enhance service delivery through technology and open government Proposed Fy 2017/18 budget 4 General Fund Balanced Budget Proposed Fy 2017/18 budget 5 Expected Increase Property Tax Transient Occupancy Tax Business License Tax Franchise Fees Expected Decrease Sales Tax GENERAL FUND REVENUE TRENDS General fund revenues 6 Limited Increases Non-Discretionary/Contractual Salary, Retirement, and OPEB Mandated Increases Urban Run Off, Clean Water Utility Rate Increases OSHA Gas Masks One-Time Uses Street Tree Trimming Library Collections PROPOSED FY 2017/18 BUDGET General fund expenditures 7 OUTLOOK FIVE-YEAR FORECAST 8 TOWN’S TOTAL UNFUNDED LIABILITY CALPERS/OPEB 9 CITIES UNFUNDED PENSION LIABILITY CALPERS 10 CITIES FUNDED PENSION RATIO CalPERS 11 LOS GATOS LEADS IN ADDRESSING OPEB Los Gatos – 50% funded OPEB 50% funded 12 ACTIONS TAKEN BY THE TOWN CALPERS/OPEB 2009 OPEB Trust established (Pre-funding) 2015 Side Fund $4.5M paid off 2016 GF CalPERS/OPEB Reserve established (minimum $300K per FY; $1.9 million from FY 15/16 year end savings) FY 16/17 $1 Million OPEB additional payment FY 17/18 Proposed $1 Million from prior years savings Council Finance Committee exploring other strategies 13 CIP Development Process Council Core Goals and Strategic Priorities Current and Scheduled Projects Priorities are Matched to Available Resources Planning Commission Review Capital Improvement program Proposed 5 Year CIP 14 Proposed 5-year CIP: $45.2 M Proposed FY 2017/18 CIP: $25.4 M Carryforward: $21.4 M New Funding: $4.0 M FUNDING OVERVIEW Capital Budget Material Contracts – RFP or Bid Service Contracts – RFP or Bid Consultant Contracts – RFP (qualifications based) Construction Contracts – Bid (price determinative) 15 GFAR (65%) Utility Undergrounding (15%) Gas Tax (13%) Traffic Impact Mitigation Fees (5%) Grants and Storm Drain Fee (3%) Total is 101% due to rounding. SOURCE OF FUNDS Capital Budget Material Contracts – RFP or Bid Service Contracts – RFP or Bid Consultant Contracts – RFP (qualifications based) Construction Contracts – Bid (price determinative) 16 Project Concept – the Idea Stage Rough scope and estimate Refine Scope – Is there a Viable Project? Driven by available funds or project need Detailed Estimate (Engineer’s Estimate) Cost estimated by market, experience, comparisons Bid Supported Costing Project defined and bid. CREATING A CAPITAL PROJECT Capital Budget Costs +/- 50% or more Costs +/- 30% - 50% Costs +/- 15% - 30% Costs +/- 10% - 15% 17 Capital Budget CREATING A CAPITAL PROJECT 18 Design Approval of Plans & Specs (Council) Authority to Award (Council) Construction Close Out (Council) STEPS TO CAPITAL PROJECT DELIVERY Capital Budget Design is iterative Approval of plans and specs allows Council to see the project. Provides design immunity. Authority to award – non discretionary for bids Often combine these two steps. Construction – where the project gets built Close Out – report out project results. Decrease claim timeframe from 90 to 60 days. Moving towards posting report outs on the website in association with the project status. 19 Material Contracts Computers, Vehicles, etc. Service Contracts Landscaping, Custodial, etc. Consultant Contracts Financial Services, Design Services Construction Contracts Building or Repairing TYPES OF CONTRACTS Capital Budget Material Contracts – RFP or Bid – buying something Service Contracts – RFP or Bid – more operating budget type items Consultant Contracts – RFP (qualifications based) Construction Contracts – Bid (price determinative) 20 Design Design Review Public Outreach & Communication Project Delivery and Inspection Testing Construction PROJECT COSTS Capital Budget Design is typically consultant costs. Costs vary dramatically depending on project. Should equal 10% of project cost. ------- Design Review is intensive for complex projects. Public Outreach at a high level is important. These are the beginning of staff costs. Should total 8-12% of project cost. Discussion on tracking these costs. --------- Project Delivery and Inspection are in house costs. This is the opportunity to ensure the project is built correctly. Consider the life of the project – pavement, buildings, etc. --------- Testing – Allows for highly technical analysis of materials and methods. Concrete cylinders as an example. ------- Construction – the build it phase. Most of the project costs here. --------- Close out – final paperwork, payment, grant reimbursement, etc. Can be time consuming. 21 Accountability & Transparency Reflect Actual Program Costs Target 8% - 12% Staff Capacity 4 FTE Operating Budget for Project Delivery (+1.9 FTE Administrative) Summer Spike in Project Delivery Existing Staffing Hours Short of Need Potential for Temp Staffing to Increase Capacity PROJECT STAFFING Capital Budget Estimated 5000+ hours in need to deliver projects in CIP Manage demand with temp staffing Cost to project Alternative to spread project delivery over time. 22 Almond Grove Pavement Maintenance SR2S / Bike Ped Plan Projects Belgatos Park Restroom Bachman Park Storm Drain Master Plan FY 2017/18 PROJECT HIGHLIGHTS Capital Budget Pavement - $2.5M per year. Holds the Town steady at a PCI of 66 $28M backlog. $3.5M to get to a 72. $3M to increase to a 70 23 RECOMMENDATIONS 24 RECOMMENDATIONS Consider the FY 2017/18 Proposed Operating Budget Consider the FY 2017/18 - 2021/22 Proposed CIP 25 Calpers Investment loss impact to pension liability 26 Equipment Replacement Fund 27 Facilities Maintenance Fund 28 ABAG Self Insurance Fund 29 Workers’ Comp Self Insurance Fund 30 Management Information System Fund 31 Office Stores Fund 32 Vehicle Maintenance Fund 33