1

Budget Workshop
City of Lakeport
Fiscal Year 2016-17

June 21, 2016

Margaret Silveira, City Manager
Daniel Buffalo, Finance Director

Agenda
Schedule
The document
The budget approach
Highlights
Analysis
Questions

Budget Schedule, FY 2016-17

February
Develop budgetary approach and document format
Strategic planning with Council

March
Goal setting with Council

April
Distribute budget instructions and workbooks to departments
Schedule first round of meetings between CM and departments
First round department budget meetings

May
Second round budget meetings
Develop CM budget message and document draft

June
Budget hearings
Final revisions

Document finalization
Adoption

The Document
2016-17 Budget Workshop

The Document
Ease of use
Elements
City Managers
Budget Message
Summary data
Fund detail
General
Water
Sewer

CIP
Departments
Appendices

Navigable
electronically

The Document (cont)

Navigation:

Bookmarks
Table of contents
Ideal for iPad or other tablet

The Document (cont)

Content:

Items presented by major category

Revenue
Taxes
Charges for service
Grants/subventions

Expenditures
Salaries and benefits
Operations
Loans/grants
Debt service
Capital outlay

The Document (cont)

How to read:

Funds
Revenue by source
Expenditures by category
Budget and estimated actuals

2 years projections
Department use

The Document (cont)

How to read:

Departments
Overview
Outcomes/accomplishments
Department goals/objectives
Budget detail

Sections of Note
CM Budget Message (final draft)
City-wide summary
Per capita spending
(to be provided in final document)

CIP proposed expenditures

(to be provided in final document)

Personnel schedule (appendix)

11

The Approach
2016-17 Budget Workshop

12

The Fundamentals

Started earlier

More collaborative

Strategic
Renewed Council priorities

Continued focus on project completion

Downtown Main Street
Bevins
Lakeshore Storm Damage Rehab
Police Department modifications
Carnegie Library ADA
Giselman water main and road rebuild

Continued emphasis on efficiencies

Service delivery enhancement/effectiveness

Telling the story

Investments prioritized in:
Operating efficiencies and cost control
Economic development
Infrastructure and capital

14

City-wide goals
Council Priorities:
1. Focus on personnel

Recruitment and retention strategies

2. Explore new revenue sources

3. Complete Lakefront strategic plan

15

City-wide goals
Council Priorities:
1. Focus on personnel

Recruitment and retention strategies

2. Explore new revenue sources

3. Complete Lakefront strategic plan
4. Sidewalk policy
5. New funding for new, specific purposes
Community policing
SRO

6. Improvement to website
7. Solar
8. Giselman

16

Highlights
2016-17 Budget Workshop

17

Highlights
Total City revenues:
$13.89 million

Total expenditures:
$20.85 million

18

Highlights
Total expenditures:
$20.85 million
Personnel - $5.03 million
Operations (Materials, supplies, professional services, etc.) $3.43 million
Debt service $6.42 million
CIP - $5.69 million

19

Highlights (cont)
Personnel Changes:
Admin:
Administrative Services Specialist
1 FTE, budgeted for year, expected start January 2017

Engineering:
City Engineer
To be combined with Public Works Director
Recruitment to begin in late summer

Police:
12 sworn, regular officers and SRO
12th position temporarily funded by one-time general fund resources
SRO funded by LUSD and one-time general fund resources

Public Works:
Public Works Director
Combined with City Engineer

Maintenance Worker I
Not funded in 2016-17

20

Highlights (cont)
Balanced general fund
Fiscally and structurally
~$35K surplus estimated (<1% of expenditures)

Strengthening enterprise funds

Strong focus on:

Public Safety
Human capital
Project execution
Cost control

Increased emphasis on:

Economic development

21

Highlights (cont)
General fund
Estimated budget surplus in FY 2015-16 expected
~$388K
Savings from
Unfilled positions

Operations
Capital projects

Regular revenues relatively flat

Costs up
Personnel
13 sworn PD officers, including SRO
Labor negotiations

Pensions (lower than originally anticipated)

Health

22

Highlights (cont)
Estimated budget surplus in FY 2015-16 expected
~$388K
Savings from
Unfilled positions
Operations
Capital projects

Use of surplus in 2016-17:

Use of Assigned Fund Balance
S. Main Annexation - Planning

Recommended
$

Legal fees: S. Main Annexation

3,000
15,000

Hotel feasibility study

5,000

Lakefront planning marketing

2,000

City mural

5,000

Funding for Carnegie Library roof/ceiling repair

25,000

LAFCO Annexation fees - Planning

5,000

CalED 101 training

1,500

Labor groups signing bonus

72,214

Legal fees: Marijuana ordinance and related work

10,000

Funding for 12th PD Officer - one year

100,000
Total use $

243,714

23

Highlights (cont)
Use of surplus in 2016-17:
Use of Assigned Fund Balance
S. Main Annexation - Planning

Recommended
$

Legal fees: S. Main Annexation

3,000
15,000

Hotel feasibility study

5,000

Lakefront planning marketing

2,000

City mural

5,000

Funding for Carnegie Library roof/ceiling repair

25,000

LAFCO Annexation fees - Planning

5,000

CalED 101 training

1,500

Labor groups signing bonus

72,214

Legal fees: Marijuana ordinance and related work

10,000

Funding for 12th PD Officer - one year

100,000
Total use $

243,714

24

Highlights (cont)
Department Share of GF
FY 2015-16
Departmental Use
Police

FY 2016-17

Recommended
$

Variance

% Share Recommended % Share Increase (Decrease) % Change

1,849,729

37.96%

2,006,539

47.01%

156,810

8.48%

Parks, Buildings, and Grounds

360,278

7.39%

348,760

8.17%

(11,518)

-3.20%

Roads and Infrastructure

762,643

15.65%

299,559

7.02%

(463,084)

-60.72%

Building

252,007

5.17%

251,731

5.90%

(276)

-0.11%

Non-Departmental

305,704

6.27%

242,519

5.68%

(63,185)

-20.67%

Planning

259,105

5.32%

208,639

4.89%

(50,466)

-19.48%

Administration

263,451

5.41%

203,181

4.76%

(60,270)

-22.88%

Finance and Information Technology

204,803

4.20%

155,497

3.64%

(49,306)

-24.07%

PW Administration and Compliance

117,397

2.41%

104,213

2.44%

(13,184)

-11.23%

Engineering

65,917

1.35%

89,196

2.09%

23,279

35.32%

Legislativ e

100,642

2.07%

85,460

2.00%

(15,182)

-15.09%

Economic Dev elopment

51,000

1.05%

77,000

1.80%

26,000

50.98%

117,191

2.41%

75,906

1.78%

(41,285)

-35.23%

City Attorney

97,750

2.01%

68,000

1.59%

(29,750)

-30.43%

Water O&M

44,929

0.92%

51,803

1.21%

6,874

15.30%

Sewer O&M

0.00%

0.00%

20,000

0.41%

0.00%

Westshore Pool

Housing
CLMSD Special Projects
Total use

4,872,546

0.00%
100.00% $

4,268,003

0.00%
100.00% $

(20,000)
(604,543)

-100.00%
-

25

Highlights (cont)
General Fund Use Compared
2015-16 to 2016-17
FY 2015-16
50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

FY 2016-17

26

Highlights (cont)
Water enterprise strengthening
Revenues up from rate restructuring
No operating deficit
Capital projects (outside USDA)
Giselman water main

27

Highlights (cont)
Sewer enterprise in stable position
Revenues up from rate restructuring
No operating deficit
Strong focus on I&I work

Several key capital expenditures

Sewer main replacements
Replacement of antiquated equipment

Building reserves

28

Property tax distribution

Lakeport Unified School District

2,721,606

Lake County
1,911,189
ERAF (Education Augmentation Fund)
1,281,700

City of Lakeport
889,314

Lake Co Vector Control

144,721

Mendocino College
529,468

Lakeport Fire Protection District

636,342

County Office of Education

235,240

29

Recommended Appropriations:
Departments
Fiscal Year 2016-17
Expenditure Detail by Department
Uses

Name
Non-Departmental
City Council
Administration
Economic Development
City Attorney
Finance and IT
Community Development:
Planning
Building
Housing
Engineering
Police
Public Works:
Administration and Compliance
Streets and Infrastructure
Parks, Buildings & Grounds
Westshore Pool
Water O&M
Sewer O&M
CLMSD Special Projects

No.
0000
1010
1020
1054
1030
1041

Salaries
and
Benefits
$
18,084
88,270
421,627
444,175

Operations
$
418,508
49,765
76,290
137,000
131,500
192,417

1050
1051
1053
1052
2010

183,318
233,242
23,814
1,644,027

3010
3020
3030
3050
3060
3070
3071
Total

624,771
289,281
123,380
36,386
557,932
330,321
10,750
$ 5,029,378

Loans/
Grants
271,000
-

Debt
Service
$ 6,417,399
-

75,852
34,590
15,000
134,639
386,512

6,000
-

13,730
329,026
163,878
38,770
558,662
675,681
$ 3,431,820

277,000

Capital
Outlay
1,000
3,950
7,465

Total
$ 6,853,991
139,035
501,867
408,000
131,500
644,057

1,501,551
17,051
1,555
163,220

1,760,721
284,883
21,000
160,008
2,193,759

$ 6,417,399

1,307,503
275,902
750
864,000
1,555,246
$ 5,699,193

638,501
1,925,810
563,160
75,906
1,980,594
2,561,248
10,750
$ 20,854,790

30

Historical Expenditures:
Departments
Fiscal Year 2016-17
Departmental Expenditure History Comparison
Actual
Expenditures
Name
2013-14
Non-Departmental
10,314,963
Legislative
68,947
Administration
412,082
Economic Development
59,039
City Attorney
168,252
Finance and IT
436,656
Community Development:
Planning
178,302
Building
127,414
Housing
154,497
Engineering
592,316
Police
1,737,697
Public Works
Administration and Compliance
Streets and Infrastructure
990,921
Parks, Buildings & Grounds
244,802
Westshore Pool
61,341
Water
1,159,270
Sewer
932,629
CLMSD Special Projects
Total
$ 17,639,128

Actual
Expenditures
2014-15
223,389
86,231
516,649
39,280
150,414
557,876

Estimated
Expenditures
2015-16
2,608,520
100,642
603,121
352,500
151,250
650,814

Budget
Expenditures
2016-17
6,853,991
139,035
501,867
408,000
131,500
644,057

294,619
146,979
195,266
1,306,635
2,545,949

2,239,473
278,351
236,000
121,745
2,086,948

1,760,721
284,883
21,000
160,008
2,193,759

890,930
484,980
50,604
2,334,528
1,702,309
18,958
$ 11,545,596

565,933
2,255,627
674,678
117,191
3,615,094
5,205,092
10,750
$ 21,873,729

638,501
1,925,810
563,160
75,906
1,980,594
2,561,248
10,750
$ 20,854,790

31

Sales tax distribution

State general fund

5,050,484

City of Lakeport
2,054,434

Transportation fund
342,406

State local revenue fund

1,455,224
Local public safety fund
684,811
State local health fund
684,811

State education protection fund

342,406
State general fund
342,406

32

Measure I
Fiscal Year 2016-17
Eligible Measure I Costs
Measure I: Transaction and Use Tax
Measure I, passed by a simple majority (50% plus 1) of Lakeport voters in November of 2004, is a general (unrestricted)
transaction and use tax. A general, unrestricted tax is one that can be used to fund any program, function, service, or
project at the discretion of the City Council. It is not a special, restricted tax, which would require approval of two-thirds of
the voting public. Measure J, passed in conjunction with Measure I, was a distinctly separate, advisory measure indicating
the voting public's preference for the use of Measure I proceeds. The language for the two ballot measure was as follows:
Ballot Measure I:
Shall the City of Lak eport enact a one-half cent sales tax for City facilities, services and programs?
Advisory Measure J:
If Measure I is approved, should the proceeds fund repair and maintenance of City streets, park and community service
facilities, and expand public services and programs?

Estimated Revenue
Measure I: Transaction and Use Tax
Fiscal Year 2016-17 Recommended Uses
and Projects
Main Street revitilization
Carnegie Library repairs
Patch truck lease
General road maintenance & rebuild
Parks, buildings and grounds
Westshore Pool
Public Safety - Police

2016-17
$735,674
Cost

Other
Recommended
General
Financing
Measure I
Fund Share
Sources
Share

$ 2,942,546 $ 110,817 $2,831,729 $

200,000
25,000
175,000
38,000
7,600
30,400
1,090,810
229,958
860,852
363,160
323,760
39,400
75,906
75,906
2,193,759
2,006,539
187,220
$6,904,181 $2,779,580 $4,124,601 $

Total
Funding

29,330 $ 2,942,546
6,617
200,000
2,011
38,000
60,863
1,090,810
85,690
363,160
20,090
75,906
531,073
2,193,759
735,674 $6,904,181

33

Westshore Pool
Westshore Pool
Budgeted Income Statement
Fiscal Year 2016-17

Year Ended
2015
Revenues
Gate fees
Swim lessons
Concessions
Rents and contributions
Total
Expenditures
Operating
Non-operating
Total
Net income (loss)

2,440
1,140
1,715
8,484
13,779

49,985
622
50,607
$ (36,828)

(Estimated)
Year Ended
2016
$

3,500
2,000
1,850
16,150
23,500

63,926
2,000
65,926
$ (42,426)

Budget
Year
2017
$

3,500
2,000
1,500
9,000
16,000

75,156
750
75,906
$ (59,906)

34

Analysis
2016-17 Budget Workshop

35

Analysis General Fund

REVENUES AND EXPENDITURES COMPARED
GENERAL FUND
6,000,000
5,000,000

4,000,000
3,000,000

Revenues

2,000,000

Expenditures

1,000,000
2010-11

2011-12

2012-13

2013-14

2014-15

2015-16
Estimated

2016-17
Budget

36

Analysis General Fund

(cont)
REVENUE COMPOSITION OVER TIME
GENERAL FUND
5,000,000
4,500,000
4,000,000
3,500,000
3,000,000

Licenses, Permits, and Franchises

2,500,000

Other

2,000,000

Charges for Service

1,500,000

Intergovernmental

1,000,000

Use of Money

500,000
-

Fines, Forfeitures, and Penalties

Taxes

37

Analysis General Fund

(cont)
REVENUES BY CATEGORY
ESTIMATED FY 2016-17
GENERAL FUND
Taxes
78%

Other
5%
Charges for Service
2%

Fines, Forfeitures,
Intergovernmental Use of Money
and Penalties
6%
0%
1%

Licenses, Permits, and

Franchises
8%

38

Analysis General Fund

(cont)
General Fund Balance
Last 10 Years
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16
Estimated

2016-17
Budget

39

Analysis General Fund

(cont)
EXPENDITURE COMPOSITION OVER TIME
GENERAL FUND
6,000,000

5,000,000

4,000,000
Capital Projects
3,000,000

Debt Service
Operations

2,000,000

Salaries and Benefits

1,000,000

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16
Estimated

2016-17
Budget

40

Analysis General Fund

(cont)
EXPENDITURES BY USE
ESTIMATED FY 2016-17
GENERAL FUND
Salaries and Benefits
65%

Capital Projects
3%
Debt Service
0%

Operations
32%

41

Analysis City-wide
REVENUES BY SOURCE
RECOMMENDED FY 2016-17
CITY-WIDE

State Funding
7.08%

Charges for Service

35.00%

Federal Funding
19.92%
Interfund Services Provided
1.35%

Fines, Forfeitures, Penalties

0.12%
Other Agencies
1.78%
Other
5.36%
Use of Money and Property
0.65%

Permits
0.67%

Licenses
0.01%
Franchise Fees
1.48%

Taxes
26.57%

42

Analysis City-wide (cont)

EXPENDITURES BY CATEGORY
RECOMMENDED FY 2016-17
CIP
27.3%

CITY-WIDE
Salaries and Benefits
24.1%

Operations
16.5%

Debt Service
30.8%

Loans/Grants
1.3%

43

Analysis City-wide (cont)

REVENUES BY ACTIVITY
RECOMMENDED FY 2016-17
Special revenue
11.07%

CITY-WIDE

Water service
28.77%

General
30.66%

Special assessments
2.65%
Sewer service
26.85%

44

Analysis City-wide (cont)

ACTIVITIES BY TYPE
RECOMMENDED FY 2016-17

Roads and infrastructure

5.78%

CITY-WIDE
General government
31.34%

Community development
3.79%
Housing and support programs
0.04%
Economic development
1.53%

Public safety
17.09%

Sewer operations
20.03%
Parks, buildings and grounds
4.98%
Water operations
15.43%

45

Fin
Questions
Discussion/Requests

46

Management Team Contacts

City Manager

Finance Director

Margaret Silveira
msilveira@cityoflakeport.com

Daniel Buffalo
dbuffalo@cityoflakeport.com

City Attorney
David Ruderman
druderman@cllaw.us

Chief of Police
Brad Rasmussen
brasmussen@lakeportpolice.org

Administrative Services
Director/City Clerk

Community Development
Director

Kelly Buendia
kbuendia@cityoflakeport.com

Kevin Ingram
kingram@cityoflakeport.com

Public Works Director

(Acting)
Doug Grider
dgrider@cityoflakeport.com