2022-05-03 CC Agenda SPC - PRESENTATION - Budget Study SessionCITY OF
ELSEGUNDO
FY 2022-2023
BUDGET STUDY SESSION
May 3, 2022
No.
1
PROPOSED APPROPRIATIONS
Fund Name Adopted FY 2021-22 % of Total Budget
General Fund $77,651,553 48.5%
(ALL FUNDS)
Proposed FY 2022-2023 % of Total Budge
$81,745,682 51.3%
2
Water Fund
31,314,039
19.6%
32,471,408
20.4%
3
Transportation Funds
10,242,136
6.4%
9,892,136
6.2%
4
Debt Service POBs
9,800,000
6.1%
9,770,085
6.1%
5
Wastewater Fund
6,520,356
4.1%
6,115,220
3.8%
6
General Fund CIP
5,055,900
3.2%
1,701,000
1.1%
7
Equip. Replacement Fund
5,000,000
3.1%
4,100,000
2.6%
8
Workers Comp. Fund
3,490,975
2.2%
3,620,400
2.3%
9
General Liability Fund
3,094,306
1.9%
3,301,699
2.1%
10
Dev. Services Trust
1,900,000
1.2%
1,100,000
0.7%
11
Public Safety Special Rev.
1,802,948
1.1%
1,225,000
0.8%
12
Other Special Rev.
1,650,800
1.0%
2,229,265
1.4%
13
Rec & Econ Dev Trust Fnd
1,000,000
0.6%
897,000
0.6%
14
Cultural Dev. Trust Fund
585,346
0.4%
326,000
0.2%
15
Debt Service Fund
545,000
0.3%
545,000
0.3%
16
Solid Waste Fund
270,000
0.2%
270,000
0.2%
17
Senior Housing Fund
105,313
0.1%
75,313
0.0%
18
Golf Fund
10,000
0.0%
10,000
0.0%
I
Sales Tax
$12,465,206
$12,950,000
$484,794
3.9%
2
Business License Tax
11,380,000
11,935,200
555.1200
4.9%
3
Transient Occupancy Tax
10,475,000
11,040,000
565,000
5.4%
4
Property Tax
9,842,525
10,145,860
303,335
3.1%
5
Chevron TRA
7,322,517
7,578,805
256,288
3.5%
6
Utility Users Tax (UUT)
6,789,500
7.1269,908
480,408
7.1%
7
Charges for Service
4,552,523
4,797,150
244,627
5.4%
8
Franchise Tax
3,000,000
3,300,000
300,000
10.0%
9
Transfers -in
2,011,733
3,047,549
1,035,816
51.5%
10
Interest & Rentals
11073,750
2,874,000
11800,250
167.7%
11
Intergovernmental Rev
2.0178,909
21231,761
52,852
2.4%
12
Other Revenues
1,771,502
2.0163,683
392.0181
22.1%
13
License & Permit
2,050,000
2,100,000
50,000
2.4%
14
Fines & Forfeitures
294,000
311.1766
171,766
6.0%
15
FEMA COVID-19 Reimb.
125,535
0
(125,535)
(100%)
Franchise Tax, $3,300,000 (4%)
Transfers -in, $3,047,549 (4%)
Charges for Services,
$4,797,150 (6%) A
Proposed FY 2022 -2023 General Fund Revenues $81,745,682
Chevron TRA, $7,578,80S
Other Revenues,
$9,681,200 , 12%
Transient ❑ccupancy Tax,
$11,040,000 (13%)
Property Taxes, $10,145,860
(12%)
Busine:
Sales Tax,
$12,950,000 (16%) ,
Top General Fund Tax Revenues Overview
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0 1
FY 2017/18 FY 2018/19 FY 2019/20 FY 2020/21 Estimated FY 2021/22 Projected FY 2022/23
—Property Tax Sales & Use Tax —UUT —Other Taxes —Transient Occupancy Tax —Business License
FY 2022-23 Revenue Assumptions
•Transient Occupancy Tax (TOT)
➢70%-75% occupancy rates
➢Pre-COVID occupancy rates averaged around 88%-92%
➢While improving, TOT is still down from peek of -$15 million
•American Rescue Plan Act (ARPA)
➢$1,986,733 allocated to the City of El Segundo for FY 2022-23
➢ Used to balance the General Fund for FY 2022-23
•Transfer -in from the Pension Trust to pay CaIPERS
➢Recommend one-time use of $1,015,816 for FY 2022-23
➢Use to pay Unfunded Accrued Liability (UAL) for FY 2022-23
GL,`,ECUNU0
City of El Segundo 1 350 Main St. El Segundo, CA 90245 6
Topgolf Revenue
FY 2022-2023 — General Fund Payments
Included in FY 2022-2023 revenue estimates
• Annual $1,300,000 driving range ground lease payment
➢$910,000 (70%) dedicated to annual pension contribution
➢$390,000 (30%) dedicated to the repayment of loan to the Equipment Replacement Fund
• Annual $200,000 Community Benefit Contribution
➢Dedicated to Recreation and Park capital improvement projects
• Recurring 3% beverage fee payment at driving range & golf course (minimum guarantee of
$2007000)
➢Dedicated to General Fund for general use purposes
• Annual $20,000 golf course ground lease payment
➢Dedicated to General Fund for general use purposes
ELSEGUND0
7
1
Police
$ 19,436,175
$ 20,267,792
$831,617
4.3%
2
Fire
13,782,667
14,273,091
490,424
3.6%
3
Transfers Out
10,958,908
9,489,700
(1,469,208)
(13.4%)
4
Public Works
9,027,404
9,949,972
922,568
10.2%
5
Non -Departmental
6,204,993
6,023,801
(181,182)
(2.9%)
6
Community Services
5,648,231
5,624,113
(24,118)
(0.4%)
7
Development Services
3,098,785
3,791,516
692,731
22.4%
8
Information Technology
3,023,930
3,879,458
855,528
28.3%
9
City Manager
2,453,282
2,797,063
343,781
14.0%
10
Finance
2,412,820
2,568,336
155,516
6.4%
11
Human Resources
1,193,063
1,537,846
344,783
28.9%
12
City Attorney
561,950
770,450
208,500
37.1%
13
City Clerk
530,749
425,238
(105,511)
(19.9%)
14
City Council
356,596
347,307
(9,289)
(2.6%)
15
COVID-19 Response
264,725
0
(264,725)
(100.0%1
8
FY 2022-2023
Proposed General Fund Appropriations
},a►rnan _ i;„ �$ .� Elected Officials & City
Attorney, 2%
Finance _ ��/
City
Development Services
5%
lnfor on Techt, olog)
SC=rViC-5, .510
Communit-v Services . 7%-/
Non-Departs-nental 7%
FY 2022-2023 Budget Appropriation Assumptions
•$81,745,628 total Proposed Appropriations
➢$61,214,754 (75%) Personnel related (salaries &benefits)
➢$20,530,928 (25%) Operations &Maintenance
• Public Safety = $4270297609 (51.5% of General Fund)
➢Police: $16,093,317 (personnel), $3,939,825 (POBs), $4,174,475 (OW)
➢Fire: $12,157,437 (personnel), $3,548,901 (POBs), $2,115,654 (OW)
ELSEGUND6
City of El Segundo 1 350 Main S1. El Segundo, CA 90245 10
FY 2022-2023 Budget Appropriation Assumptions
➢Salaries & Benefits adjustments based on multi -year MOUs
➢Police and Fire MOUs expired September 30, 2021
➢Zero based budgeting for Public Safety Departments
➢Minimum hourly wage effective each January 1:
•2022 = $15
• 2023 = $15
E SEGUNDO
City of El Segundo 1 350 Main St. El Segundo, CA 90245 11
FY 2022-2023 Budget Appropriation Assumptions
➢Zero based budgeting for O&M (all departments)
➢Equipment replacement charges
➢FY 2021-22 - 50%
➢ FY 2022-23 — 100%
ELSEGUNDO
City of El Segundo 1 350 Main S=. El Segundo, CA 90245 12
FY 2022-2023 Budget Appropriation Assumptions
➢Frozen Positions
FY 2020-21 = 22
FY 2021-22 = 23.5
12.5 vacant positions frozen full fiscal year
11 vacant positions frozen part of the year
FY 2022-23 proposing 14 frozen positions
8
vacant
positions
frozen
full fiscal year
6
vacant
positions
frozen
part
of
the year
ELSEGUNDO
City of El Segundo 1 350 Main St. El Segundo, CA 90245 13
Proposed FY 2022-2023Full Year
-.. Position •-
Police Police Officer* 2.0 12
Fire
Firefighter/Paramedic
1.0
12
Fire
Emergency Services Coordinator
1.0
12
Fire
Fire Prevention Specialist
1.0
12
Public Works
Equipment Mechanic
1.0
12
Public Works
Park Maintenance Worker II
1.0
12
City Clerk
Deputy City Clerk II
1.0
:0
12
*City Manager & Police Chief Discretion
14
Proposed FY 2022-2023 Partial ar Frozen Positions
Department Position .-
City Manager Communications & Legislative Affairs Manager 1.0
6
Public Works
Facilities System Mechanic
1.0
6
Public Works
PW Inspector
1.0
3
Public Works
Street Maintenance Worker
1.0
3
Develop. Services
Principal Planner
1.0
3
Community Sery Community Services Director
1.0
2
$120,000,000
$100, 000, 000
$60,000,000
$40,000,000
$20,000,000
$0
10-YEAR GENERAL FUND FINANCIAL FORECAST
General Fund Ten -Year Projection
FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 FY2031
Revenues •.==-z Appraprfatrons Fund 9alance
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10, 000, 000
$5,000,000
$0
Description
Adopted
Estimated Beginning Unassigned Fund Balance on July 1, 2022
$24,277,097
Estimated FY 2022-2023 Revenues
81,745,682
Proposed FY 2022-2023 Appropriations
(81,745,682)
Estimated Ending Fund Balance (June 30, 2023)
24,277,097
20% Reserve Requirement (based on proposed appropriations)
16,349,136
Estimated Ending Unassigned Fund Balance
$7,927,961
17
City Council direction on FY 2022-23 Reserve Strategy
• General Fund Reserve options
1. 20% General Fund Reserve = $1673497136
2. 21 % General Fund Reserve = $17,166,593 (staff recommendation)
3. 22% General Fund Reserve = $1779847050
• Economic Uncertainty Reserve
1. Fully fund policy reserve at $2 million (staff recommendation)
a. Will require a transfer of $100,000 from unassigned General Fund Balance
2. Retain the current balance of $1.9 million
18
City Council direction on FY 2022-23 Reserve Strategy (continued)
• Pension Trust = $5.1 million
➢Recommend one-time use of $1,015,816 for FY 2022-23
➢Use to pay Unfunded Accrued Liability (UAL) for FY 2022-23
• Topgolf Policy recommendation for the annual $1,300,000 driving range
ground lease payment
➢$910,000 (70%) dedicated to annual pension contribution
➢$390,000 (30%) dedicated to the repayment of loan to the Equipment Replacement
Fund
19
Information Technoloqy FY 2022-2023 Initiatives
1. Start security camera and door access control project.
2. Research and plan replacement Enterprise Resources Planning (ERP) system.
3. Study Smokey Hollow area and internet service provider potential.
4. Fill open positions and assess the staffing to optimize department.
5. Implement contract and insurance management software.
6. Implementation of Record Retention Policy.
7. Upgrade network infrastructure & cyber security systems.
8. Research and plan replacement of an asset management and facility maintenance system.
9. Implement a cloud -based integrated library system.
10. Create a new strategic plan for the department.
11. Completed the development & Implement Graphical Information System (GIS) strategy.
12. Develop an enterprise data management strategy and continued cloud roadmap - business information
dashboards.
ELSEGUNDO
City of El Segundo 1 350 Main S:. El Segundo, CA 90245 20
21
New Requests
• Request
for
a new position
—Receptionist
($78,000 to
be distributed
between
the
General
Fund,
Water
Fund,
&Wastewater
Fund)
➢ Came out of the Strategic Planning Workshop
➢ Will report to the City Manager's Office
• Small number of positions to be reclassified and salary range
adjustments
➢ City Manager's Office: Reclass Economic Development Coordinator to
Senior Management Analyst
➢ Finance: Reclass Management Analyst to Senior Management Analyst
➢ Development Services: Reclass Principal Planner to Senior Planner & a
part-time Administrative Analyst to a full-time Administrative Analyst
ELSEGIINDO
City of El Segundo 1 350 Main St. El Segundo, CA 90245 22
FY 2022-2023 Cultural Development Fund
Arts & Culture Commission budget recommendations as presented to City Council on April 19tn
• Cultural Arts Coordinator (75% of position): $105,000
• El Segundo Art Walk: $58,000
• Festival of Holidays: $40,000
• Visual Artists in Community Fund: $35,000
• Arts and Culture Community Engagement Fund: $35,000
• 2nd City Talks: $35,000
• Operations Account: $10,000
• Poet Laureate Program: $8,000
Total = $326,000
ELSEGUNDO
City of El Segundo 1 350 Main St. El Segundo, CA 90245 23
PROPOSED 5-YEAR
CAPITAL IMPROVEMENT PROGRAM
® Goal 4: Develop Quality Infrastructure and Technology
Objective:
El Segundo's physical infrastructure supports an
appealing, safe, and effective community.
25
Roller Hockey Rink
City Hall Windows Replacement
9 Civic Center Remodel Phase I
Pavement Rehabilitation Projects
Annual Sidewalk Repairs
• PD Women's Bathroom Remodel
• Stevenson Field Fence Repair
26
6 Grand Ave. Water Main Replacement
O New Sidewalks at 400 Block of W. Mariposa Ave.
® El Segundo Blvd. Improvements
m Library Park Activation
• Park Place Transportation Extension Design
® Recreation Park Checkout Building Restrooms
i City Hall Restroom ADA improvements
e The Plunge Design
® Main & Imperial Entryway
27
ROLLER HOCKEY RINK
29
CITY HALL WINDOWS REPLACEMENT -AFTER
CITY HALL WINDOWS REPLACEMENT -BEFORE
,--
o
41:bt
.
•' 7 ' in �
s
LA
CITY HALL WINDOWS REPLACEMENT -AFTER
w
A
CIVIC CENTER REMODEL -DURING
Am.__, va
s�-'
CIVIC CENTER REMODEL -DURING
PAVEMENT REHAB. PINE AVE. BEFORE
``._�
Eli
.dlJ .
V4
r
-Im
36
PAVEMENT REHAB. WALNUT AVE. - BEFORE
PAVEMENT REHAB. WALNUT AVE. - AFTER
,MEN%
PAVEMENT REHAB. MAPLE AVE. - BEFOR
PAVEMENT REHAB. MAPLE AVE. - AFTER
m
�u
PAVEMENT REHAB. MARIPOSA AVE. - BEFORE
PAVEMENT REHAB. MARIPOSA AVE. - AFTER
t'�
43
44
45
ANNUAL SIDEWALK REPAIRS. UNEVEN SIDEWALK- AFTER
ANNUAL SIDEWALK REPAIRS. MISSING SIDEWALK- BEFORE
r
1' ti r
r .•
48
ANNUAL SIDEWALK REPAIRS. UNUSED DRIVEWAY APPROACH -BEFORE
Ll
f
ANNUAL SIDEWALK REPAIRS. UNUSED DRIVEWAY APPROACH -AFTER
4
14,0
_k
Proposed FY 2022-2023 CIP Projects
• Total projects = $22,593,420 (Refer to Attachment A - Proposed 4-year CIP)
➢Carryover projects in progress or about to begin = $6,388,000
➢New Projects = $16,205,420
0$8,550,000 Proposed Transportation Funds Appropriations
0$2,800,000 Proposed Enterprise Funds Appropriations
0$1,2207000 Proposed Special Revenue Funds Appropriation
0$3,635,420 Proposed General Fund Appropriations
E[.SEGUNDO
City of El Segundo 1 350 Main S1. El Segundo, CA 90245 51
Proposed FY 2022-2023 General Fund CIP: $3,635,420
• (#29) $750,000 Citywide HVAC replacement & repair
• (#32) $135,000 Citywide plumbing replacement & repair
• (#33) $6,300 Citywide miscellaneous electrical repairs
(#35) $29,120 exterior lighting & misc. facade
(#39) $185,000 Library elevator
(#45) $30,000 City maintenance yard plumbing
(#46) $1,500,000 The Plunge rehab reserve
• (#47) $1,000,000 Recreation Park Projects (based off assessments needs report)
• Use of General Fund unassigned reserves to pay for one-time CIP projects
E6SEGUNUO
52
Proposed FY 2022-2023 General Fund Unassigned Reserves
• FY 2022-2023 GF unassigned reserves = $7,927,961 (@ 20% reserve)
➢Less:
o$3,635,420 allocated towards CIP
o$100,000 allocated towards Economic Uncertainty Fund
➢$3,802,541 remaining
ELSEGUNDO
53
FY 2022-2023 PROPOSED APPROPRIATIONS:
SPECIAL REVENUE FUNDS;
ENTERPRISE FUNDS; &
INTERNAL SERVICE FUNDS
Proposed FY 2022-2023 Special Revenue Funds
• Transportation appropriations: $9,8927136
• Public Safety Special Revenue appropriations: $172257000
• Other Special Revenue Funds appropriations: $21229,265
• Senior Housing Fund appropriations: $75,313
• Total of all Special Revenue Funds = $137421,714
55
E SEGUNDO
Proposed FY 2022-2023 Debt Service Funds
• Douglas Street Gap Closure
• Funded with Traffic Mitigation Fees
• $545,000 proposed budget for principal and interest payment on loan
• Pension Obligations Bonds (POBs)
• Funded primarily by the General Fund & minimal amount from Enterprise Funds
• Debt Service Payment of $9,770,085 for FY 2022-23
ELSEGUYD0
56
Proposed FY 2022-2023 Enterprise Funds
• Water Fund
➢Estimated Revenues = $35,482,520
➢Proposed Operating Budget = $28,571,408
➢Proposed Capital Budget = $379007000
57
ELSEGUNDO
Proposed FY 2022-2023 Enterprise Funds
• Wastewater Fund
• Estimated Revenues = $579617391
• Proposed Operating Budget = $5,305,220
•Proposed Capital Budget = $800,000
58
E SEGUYDO
Internal Service Funds
• Equipment Replacement Fund
• Estimated Revenues: $1,827,370
• Proposed Budget: $4,100,000
59
E !jEGUNDO
Internal Service Funds
• General Liability
• Estimated Revenues: $3,330,000
• Proposed Budget: $3,301,699
Workers' Compensation
• Estimated Revenues: $3,209,150
• Proposed Budget: $3,620,400
60
ELSEGUNDO
Next Steps
FY 2022-2023 Budget:
➢Development Impact Fees (June 7, 2022)
➢City-wide Fee Resolution (June 7, 2022)
➢FY 2022-2023 Budget Public Hearing and Adoption (June 21, 2022)
➢Beginning of FY 2022-2023 (July 1, 2022)
E SEGUNDO
City of El Segundo 1 350 Main S1 El Segundo, CA 90245 61
r
Questions