ABSTRACT: Two
Noteworthy 20 March 2012 Special City Council Agenda Items, namely Receive and
file the City of
Carmel-by-the-Sea five-year
financial forecast and Receive and review the City of
Carmel-by-the-Sea Capital Improvement Plan
and refer it to the Planning Commission to review for General Plan Consistency, are presented. Sections of Agenda Item
Summaries are presented, the Packet is embedded, including Five Year Financial Forecast and Five Year
Capital Improvement Plan, July 1, 2012 – June 30, 2017, and
HIGHLIGHTS,
including
PROJECTS BY PRIORITY, are presented.
CITY
OF CARMEL-BY-THE-SEA
Special
Meeting
Tuesday,
March 20, 2012
4:30 p.m., Open Session
City
Hall
East
side of Monte Verde Street
between Ocean and Seventh Avenues
II.
Roll Call
IV.
Orders of Council
A.
Receive and file the City of Carmel-by-the-Sea
five-year financial forecast.
Description:
The Council will receive a report of the City’s five-year financial
forecast highlighting
the projected financial context. The five-year forecast of discretionary General
Fund revenues and their uses is intended to provide a context that may be
helpful in
weighing the financial consequences of current year decisions. The five-year
forecast shows
an increasing gap between revenues and expenditures as anticipated expenditures outpace
projected revenue. This gap is $500,000 in FY 2012-13 growing to $1.4 million in
Fiscal Year 2016-17. The City Council has taken action to reduce the future gap
by adopting
a second tier retirement system for new employees and by reducing service levels.
Additional measures to bridge the gap will be presented to the City Council as part
of the recommended FY 2012-13 budget.
Staff
Recommendation: Review and provide direction.
Important
Considerations: The City Council is anticipated to adopt the budget prior
to the start of the fiscal year with budget hearings scheduled for May 17,
2012, May 24, 2012, June 12, 2012, and June 19, 2012.
HIGHLIGHTS
Five Year Financial Forecast
FINANCIAL FORECAST OVERVIEW
The five-year forecast shows an increasing gap between
revenues and expenditures as anticipated expenditures outpace projected
revenue. This gap is $500,000 in FY 2012-13 growing to $1.4 million in Fiscal
Year 2016-17. The City Council has taken action to reduce the future gap by
adopting a second tier retirement system for new employees and by reducing
service levels.
FIVE-YEAR FINANCIAL FORECAST
Introduction and Summary
The five-year forecast of discretionary General Fund
revenues and their uses is intended to provide a context that may be helpful in
weighing the financial consequences of current year decisions. The revenue
projections focus on discretionary General Fund revenues. Discretionary revenue
is derived from local taxes, especially property, transient occupancy, and
sales taxes. On the expenditure side, the forecast projects the use of
discretionary revenue for department operations, including salaries and
benefits; capital improvements; and debt payment requirements.
The forecast revenue expenditure gap is driven by:
• The use of one-time sources to maintain levels of service
for FY 2010-11 and FY 2011-12 which, with flat revenue projections, exacerbate
the structural imbalance in future years;
• Continued growth in salary and benefit costs;
• Increasing deferred maintenance and capital investment
costs;
• No increases in staffing and annual average wage increases
of 2.16%;
• An average 7.0% increase in the actuarial cost of funding
existing retirement obligations with the adopted second tiers;
• Modest revenue growth slowly rebounding as the economy
improves.
Closing the gap will require services to continue to shrink,
employees to be compensated less, and/or new revenue sources to be created,
from economic development, annexation, natural growth of the economy (if any),
fee increases, and/or voter approved tax increases.
Summary of Forecast
§
Revenue are not projected to keep pace with
anticipated expenditures
§
Increases in levels of service are unlikely
without additional revenue
§
Further expenditure management and cooperation
with the employees will be necessary to maintain current levels of service.
Revenues
- Revenue
is projected to have modest growth during the forecast period
- Big 3:
- Property
tax average projected growth 1.74%
- TOT
average projected growth 3.6%
- Sales
tax average projected growth 2.9%
- Average
revenue growth $400,000 annually
Expenditures
- Salaries
and benefits are expected to grow on average $350,000 annually with no
increase in number of staff
- Health
insurance costs expected to growth by 8.4% annually
- CalPERS
rates expected to grow by 7% annually
- Forecast
projects creating a litigation reserve and a vehicle replacement fund
B.
Receive and review the City of Carmel-by-the-Sea
Capital Improvement Plan and refer it to the Planning Commission to review for General
Plan Consistency.
Description:
At this meeting, the City Council will review the Capital Improvement Plan
(CIP). Staff will present an overview of the five-year plan and describe each
of the projects. The Planning Commission
then will review the projects contained in the CIP and will advise the City
Council on its recommendations regarding the proposed capital projects (Carmel
Municipal Code 3.06.020) and review it as to determine its consistency with the
City’s General Plan (California Government Code 65403). The Planning
Commission’s findings will be transmitted to the City Council.
Staff
Recommendation: Review and provide direction.
Important
Considerations: The City Council is anticipated to adopt the budget prior
to the start of the fiscal year with budget hearings scheduled for May 17,
2012, May 24, 2012, June 12, 2012, and June 19, 2012.
HIGHLIGHTS
Capital Improvement Plan
City of Carmel-by-the-Sea, CA
2012/13 –
2016/17
The CIP (Capital Improvement Plan) identifies 77 projects
for the five-year period. The CIP identifies new facility construction, facility
refurbishment, and infrastructure projects, and their respective funding
sources, if any, to create a sound planning document. The program includes the
design, construction, and major rehabilitation of capital improvements that
have a long-term life span, and cost more than $10,000. With these projects, the
City Council would be investing approximately $7.5 million over the next five
years. This major investment in the City’s infrastructure represents a
significant commitment to our community’s future.
The 5-Year Capital Improvement Program for Fiscal Year
2012-2013 through 2016-2017 includes various projects for the benefit of the
citizens of Carmel-by-the-Sea. Each of the projects meets some or all of the
following criteria:
• Elimination of potentially hazardous or unsafe conditions
and potential liabilities
• Replacement of high maintenance and
inefficient/ineffective infrastructure
• Improvement to and/or creation of new services to the
Public
• Outside agency regulatory requirements and mandates
• Stimulation of the local economy/eliminate blighted conditions
• Compliance with the City of Carmel-by-the-Sea General Plan
• Preservation of existing assets
Each project is prioritized in accordance with the following
priority label categories.
Priority 1: The project is urgent and/or mandated, and must be
completed quickly. The City could face severe consequences if the project is
delayed, possibly impacting the health, safety, or welfare of the community, or
having a significant impact on the financial well being of the City. The
project must be initiated or financial/opportunity losses will result.
Priority 2: The project is very important and addressing it
is necessary. The project impacts safety, law enforcement, health, welfare,
economic base, and/or quality of life in the community.
Priority 3: The project is important and would enhance the
quality of life and would provide a benefit to the community.
Priority 4: The timing of the project is less important but
completion of the project would improve the community providing cultural,
recreational, and/or aesthetic effects.
Priority 5: The project would be an improvement to the
community, but need not be completed within a five-year CIP.
PROJECTS BY PRIORITY (Department) (Total Project Cost or Total Over Time Period)
Priority 1 Critical
Del
Mar Master Plan (Community Planning & Building) Total:
$200,000
ASBS Dry Weather Diversion (Community Planning &
Building) Total Project Cost: $383,000
Ambulance Lease Purchase (Safety; Ambulance) Total: $62,522
Replace Ambulance Vehicle (Safety; Ambulance) Total Project Cost: $150,000
Heart Monitor (Safety; Ambulance) Total Project Cost: $27,000
Self Contained Breathing Apparatus (Safety; Ambulance) ) Total Project Cost: $24,000
Utility Truck Lease (10/11) (Safety; Fire) Total: $23,744
Fire Engine 09/10 (Safety; Fire) Total: $282,208
Alerting System (Safety; Fire) Total Project Cost: $42,000
Self Contained Breathing Apparatus (Safety; Fire) Total Project Cost: $36,000
Interface for patrol audio/video equipment (Safety; Police) Total Project Cost: $30,559
Mobile Data Terminal software and installation (Safety; Police) Total Project Cost: $16,000
Street and Road Projects (Public Works) Total Project Cost: $1,455,800
Caterpillar Loader (Public Works) Total: $89,040
Sunset
Center Roof Repairs
(Facilities) Total Project Cost: $75,352
Forest Theater Renovation (Facilities) Total Project Cost: $1,150,000
650/chipper (Forest, Parks
& Beach) Total: $43,578
City Hall Garden
(Forest, Parks & Beach) $25,000
TOTAL COST: $4,115,803.
Priority 2 Very Important
Windows Software Upgrade (Administrative Services) Total Project Cost: $25,000
Network Equipment Priority (Administrative Services) Total: $32,000
Voice over IP Telephone System (Administrative Services) Total Project Cost: $72,000
Critical Network Spare Equipment (Administrative Services) Total: $10,000
Diesel Filter System Monitor (Safety; Ambulance) Total Project Cost: $8,000
Diesel Filter System (Safety; Fire) ) Total Project Cost: $25,000
Patrol Vehicle Replacement (Safety; Police) Total: $412,432
Parking Vehicle (Safety; Police) Total: $51,509
Street Sweeper Lease (Public Works) Total: $95,908
Guadalupe to 5th Storm Drain (Public Works) Total Project Cost: $300,000
Santa Fe
& 4th Storm Drain (Public Works) Total Project Cost: $300,000
PD HVAC Replacement and Re-Roof (Facilities) Total Project Cost: $385,000
Sunset
Center Downspout/Gutter Repairs
(Facilities) Total Project Cost: $10,000
Sunset Center
Mission Street Planter Repairs (Facilities) Total Project Cost: $15,000
Card Key Security System (Facilities) Total Project Cost: $25,000
Scenic Rd. Restrooms (Forest,
Parks & Beach) Total: $225,000
Waterfront Area Signs (Forest,
Parks & Beach) Total Project Cost: $12,000
Mission Trail Invasive Tree Removal (Forest,
Parks & Beach) Total Project Cost: $45,000
Priority 3 Important
Financial System Upgrades (Administrative Services) Total: $32,000
Website Update (Administrative Services) Total: $35,000
Admin Copier (Administrative Services) Total Project Cost: $14,400
Permit Tracking Software (Community Planning & Building) Total Project Cost: $20,000
Housing Element Update (Community Planning & Building) Total Project Cost: $60,000
Park Branch Library carpeting (Library) Total Project Cost: $38,000
Art Appraisal (Library) ) Total Project Cost: $17,500
Park Branch Library Painting – Interior (Library) Total Project Cost: $16,665
Paint/Sign Truck Total Project Cost: $95,000
Superintendent Vehicle (Public Works) Total Project Cost: $42,000
Gardener Trucks (Public Works) ) Total Project Cost: $70,000
Dump Truck (Public Works) ) Total Project Cost: $90,000
Water Truck (Public Works) ) Total Project Cost: $80,000
PD/PW Roof/Patio Replacement (Facilities) Total Project Cost: $850,000
PD/PW Re-Painting (Facilities) Total Project Cost: $27,000
PW Garage Roll-Up Door Replacement (Facilities) Total Project Cost: $9,800
Sunset
Center Planter Re-construction
(Facilities) Total Project Cost: $12,000
Sunset
Center Re-painting (East
side) (Facilities) Total Project Cost: $25,000
Sunset
Center North Side Re-painting
(Facilities) Total Project Cost: $25,000
Harrison Memorial Library
Re-painting Project (Facilities) Total Project Cost: $28,000
Flanders Plumbing and
Plaster Repairs (Facilities) Total Project Cost: $24,000
Flanders re-roof project (Facilities) Total Project Cost: $225,000
Flanders Sewer Line Repair/Replacement
(Facilities) Total Project Cost: $35,000
Sand Replenishment (Forest,
Parks & Beach) Total: $185,000
Tennis Court renovation (Forest,
Parks & Beach) Total Project Cost: $55,000
Beach stair maintenance (Forest,
Parks & Beach) Total Project Cost: $24,000
Mission Trail Park
water tank (Forest, Parks & Beach) Total Project Cost: $35,000
Beach fire baskets tank (Forest,
Parks & Beach) Total Project Cost: $23,000
Replace Forester Truck (Forest,
Parks & Beach) Total Project Cost: $30,000
TOTAL COST: $2,223,365.
Priority 4 Less Important
Energy Efficient Vehicle (Community Planning & Building) Total Project Cost: $25,000
GPS & License Plate recognition (Safety; Police) Total Project Cost: $104,176
PW Offices Floor Replacement (Facilities) Total Project Cost: $6,800
Vista Lobos Electrical Main
Panel Replacement (Facilities) Total Project Cost: $6,800
PD Parking Lot Re-surfacing (Facilities) Total Project Cost: $14,500
Sunset
Center Wood Patio Stage
Replacement (Facilities) Total Project Cost: $8,000
Sunset
Center Bach
Offices Building
Re-Roof (Facilities) Total Project Cost: $25,000
Rio Park Improvements (Forest,
Parks & Beach) Total Project Cost: $40,000
Priority 5
None
GRAND TOTAL: $8,618,293. (FY 2012/2013 through 2016/2017
Special City Council Meeting, March 20, 2012 Packet