6/7/2022
HUNTINGTON
INCORPORATED 0000000 B
City of Huntington Beach
Proposed FY 2022/23 Budget Adoption
City Council Public Hearing
June 7, 2022
Presentation Overview
• FY 2021/22 General Fund Budget Update
• Review of Budget Study Session Items
• Proposed FY 2022/23 General Fund Budget Review
• Proposed FY 2022/23 Capital Improvement Program Budget Review • Master Fee & Charges Schedule Review
• Next Steps - Approval of FY 2022/23 Budget Requested
BEACH
NGE COUNTY CAL
2 SUPPLEMENTAL
COMMUNICATION
Meeting Date: 6/7/22
1 31(22- 471)
Agenda Item No.:
6/7/2022
INCORPORATED 000000
FY 2021/22 General Fund
Budget Update
3 Economic Overview & Local Budgetary Impacts
• Economic trends indicate a continued economic recovery from the financial impact f COVID-19, but a recent decline in GDP signal cautio
> U.S. real GDP increased 2.3% in Q3 2021, 6.9% in Q4 2021, -1.4% in Q1 2022 > Slight decline in the last quarter due to Omicron restrictions in some parts of the country and > According to UCLA Anderson Forecast (April 2022) - Orange County - Labor markets and tourism is nearly restored to pre-pandemic levels and is expected to continue with a strong outlook
- Development surge is expected to continue
- Housing will face some headwinds due to recent steep price escalation As we emerge from the economic impacts of the pandemic, the City is monitoring recent developments in the economy:
• Russia/Ukraine Crisis
GTON
• Inflation & Prices
› Supply Chain Challenges
CH
• Rising Interest Rates
• Labor Shortages
4 2
6/7/2022
City Budget & Fiscal Position
We are projecting a FY 21-22 surplus with modest surpluses over the next four years as a result of key financial decisions made by City Council and the ongoing recovery from the COVID-19 economic downturn. • FY2021-22 is projected to conclude with a $3.4M surplus > Historic Infrastructure Investments in FY2021-22
> General Fund transfer to the Infrastructure Fund increased by 130% to $11.5M. • CIP budget increased 57% to $39.3M
• Additional One-Time Funding
• City received $29.6M through the American Rescue Plan Act. City Council approved an expenditure plan to invest funds in projects. 00000000 TON
CH
COUNTY Y CALIFO
5 HUNTINGTON 0000000 0000000000000
INCORPORATED
EAC
Review of Budget Study
Session Items
FЕВ. 17, 1909, Адіо
6 3
6/7/2022
Budget Study Session Held on May 17, 2022
Key City Council identified budgetary adjustments to the proposed FY 2022/2 udget from our Budget Study Session included the following 1) American Rescue Plan Act - Administrative Change
2) Review of Projects Requiring Additional Funding - Set-Asides and Project Priorities 3) Circuit Ride Share Program - Continue Program
NGTON
COUNTY CAL
7 American Rescue Plan Act
• The $1.9 trillion American Rescue Plan Act (ARPA) delivered $350 billion to state, local, territorial, and tribal governments in response to COVID-19.
• Huntington Beach will be receiving $29.6 million, split into two equal payments:
- $14.8 million was received in May 2021
- $14.8 million allocation payment is expected in June 2022 • On September 7, 2021, City Council approved an ARPA spending plan. • Under ARPA guidelines, the City has identified $52.7 million in lost revenue allowing the City broad latitude to deploy the funds for governmental services. • Recent efforts on the Federal level have been made to claw back unspent ARPA payments. Those efforts were unsuccessful.
• Based on Council feedback, the ARPA funds is allocated to eligible police and fire personnel costs in the proposed FY 2022/23 Budget to minimize the risk of future claw back efforts. • General Fund budget savings will be available to fund a newly established Huntington Beach Recovery Reserve to accomplish City Council's priorities approved on September 7, 2021. 4 6/7/2022
Review of Projects Requiring Additional Funding
Amount Est. Add'l Possible
Description Funded Project Cost Funding
Downtown Revitalization Improvements* $1.75M $8.2M-$17.3M General Grants/Public
Private
Oak View Library/Community Center Rehabilitation* $2M $15M-$20M Partnership Comprehensive Homeless Response Plan Implementation /
Healing Center $2.5M $50M-$80M Grants/Housing
ARPA/ HB Recovery Combine with
Permanent Supportive Housing / Healing Center $2.5M Healing Center Grants/Housing Future Park
Carr Park Improvements* $355K $3.6M DIF/Grants
Public Private
World Skatepark Development* $750K TBD Partnership
Public Private
Major City Facility Upgrade Project $3.2M TBD Partnership Future Park
Edison Park Improvements* $475K TBD DIF/Grants
Huntington Beach Blufftop Stabilization^ $400K $1M-$1.5M Grants Oil Well Abandonment*^ $500K General
• The projects listed above in most cases cover only the planning phase and will require additional funding for the construction phase of the project.
Included in FY2022/23 Proposed Budg
Funded in Prior Fiscal Ye:
9 Possible Funding Sources for Projects
• Possible Funding Sources for these projects include:
- Strategic Initiatives Reserves $16.5M (General Fund)
- Proceeds from Prior City Manager Housing Agreement of $1.66M (General Fund) - CA Superior Court decision in favor of the City related to the dissolution of former RDA $5.2M ($1.5M GF, $3.7M Housing Fund) - Unallocated funds originally allocated to the Talbert Channel Trail Project $272K (HB Recovery) - State and Federal Grants for Oak View, Healing Center/Permanent Supportive Housing, Blufftop, and Park Projects - Future Park Development Impact Fee Funding
- Public and Private Partnerships
• $19.7M General Fund, $3.7M Housing Funds, and $272K HB Recovery Funds • $78M-$122M of estimated cost of projects with 4 capital projects with undetermined costs • Based on City Council feedback:
- Set-aside proceeds from City Manager Housing Agreement $1.66M, and RDA legal proceeds $1.5M in the Strategic Initiative Reserve to fund City Council priorities - total Strategic Initiative Reserve $19.7M - Set-aside $3.7M in Housing Funds for the Healing Center - Funding priorities will be discussed further next fiscal year, but Council expressed strong interest in prioritizing the Downtown Revitalization Improvements and Healing Center Projects - General Fund surplus set-aside in reserves based on the City's Financial Policy (Pension Rate Stabilization, Economic Uncertainties, Infrastructure and Capital Reserves) 10
5 6/7/2022
Circuit Ride Share Program
• On July 13, 2021, the City launched a Circuit Pilot Program which provides free rides to visitors and residents within Downtown Huntington Beach using the Ride Circuit app
• The pilot program ends on June 30, 2022
• 4-5 HB Circuit all-electric, low-speed, six-seat golf carts Based on 9 Months of Service: @ CIRCUIT
Monthly ridership range - 6,910 to 10,614
Average monthly ridership - 8,619
Average wait time - 7:44 minutes
Survey Summary from December 2021 - March 2022
Responses from 742 riders:
• 678(91% are HB residents Huntington
• 728 (98%) want to keep this service
• 605(82%) used the service to visit local restaurants
and businesses
• Most common response was "it's free and electric"
11 Circuit Ride Share Program
Huntington Beach 2022-2023 Schedule
July 1 - June 30
West Dallas Hours of Operation
Monday: Closed
FRED - San Diego Tuesday - Thursday: 12pm-9pr
sunday Jamy: am 10pm
Lo'mert Park
Total Contract Cost: $474,000
Total Cost to the City: S350,000
• City will seek to offset costs by pursuing grant funding, private sponsorship, and advertising revenue
• Based on Council feedback, $350K is included in the FY22/23 Proposed Budget to fund the Circuit Ride Share Program
12 6
6/7/2022
HUNTINGTON
INCORPORATED B
Proposed FY 2022-23
General Fund Budget Review
13 FY 2022/23 General Fund Proposed Budget with Changes • Proposed FY 2022/23 General Fund Budget based on feedback from City Council Study Session is structurally balanced, with a projected $690K surplus General Fund (Fund 100) Poposed
(in thousands)
Revenues (Recurring) $253,552 • Continued Infrastructure Investments in ARPA Funds FY2022/23
29,607
Total Revenues 283,159 General Fund transfer to the Infrastructure Fund increased by 17% to $13.5M
Personnel Costs 169,892
Operating Costs 48,567 • CIP budget increased 52% to $59.7M Non-Operating Costs 34,403
HB Recovery Projects 16,135
Total Expenditures 268,997
ACH
HB Recovery Reserves 13,472
Surplus $690
12, 1000, 200
14 7
6/7/2022
FY 2022/23 General Fund Proposed Revenues - $283.2M
Non-Operating Revenue
10.6%
Other Revenue
0.6%
Charges for Current
Services
9.2% Property Tax
Revenue from Other 34.7%
Agencies
1.0%
Use of Money & Property.
Fines & forfeitures
License & Permits. 10000000
2.9% GTON BEA
Utility Users Tax
6.5%
Transient Occupancy Tax
5.1% Franchises / Sales Tax
3.0% 18.8% COUNT
15 FY 2022/23 General Fund Budget Revenues - $283.2M
• General Fund revenues anticipated to increase by $37.9 million ($8.3M+ $29.6M ARPA) General Fund Revenue (in millions)
$290 $283.2
$270 Economic Recovery +15.5% or +3.4% w/o
Decline due to +3.5% $245.3 ARPA
$250 COVID -4.6%
$236.0 $237.0
$225.2 +5.2%
$230
$210
$190
$170
$150
FY18/19 Actual Pre-COVID FY19/20 Actual FY20/21 Actual FY21/22 Projected FY22/23 Proposed 16 8
6/7/2022
FY 2022/23 General Fund Budget Revenues
• Major revenue variances include:
• Property Tax: $98.3 million (5.7% or $5.3 million increase) - Higher assessed valuations as of January 1, 2022 versus prior fiscal year • Sales Tax: $53.3 million (2.1% or $1.1 million increase) - Increase due to strong consumer demand across all industry groups and increased prices > Transient Occupancy Tax: $14.5 million (8.2% or $1.1 million increase) - Reduced travel restrictions expected to fuel increased local tourism to Huntington Beach, exceeding pre-COVID-19 revenues of $14 million in FY2018/19 > Revenue from Other Agencies: $2.7 million (-26.7% or $1 million decrease) - Strike team reimbursements are not included in the FY2022/23 budget, but are included in the FY2021/22 projected revenues
> Charges for Current Services: $26 million (4.9% or $1.2 million increase) - Primarily attributed to increases in Emergency Medical Services Transports and Billing Rates > Non-Operating Revenue: $30.1 million (6,638% or $29.6 million increase) - Recognition of ARPA revenues
17 FY 2022/23 General Fund Proposed Revenues
Projected Proposed
Revenues Revenues Increasel % Increase/
(in thousands) FY2021/22 FY2022/23 (Decrease) (Decrease) Property Tax 92,938 98,259 5,321 5.7%
Sales Tax 52,265 53,343 1,079 2.1%
Franchises 8,536 8,604 68 0.8%
Transient Occupancy Tax 13,371 14,471 1,100 8.2%
Utility Users Tax 18,457 18,457 0.0%
License & Permits 8,016 8,201 185 2.3%
Fines & Forfeitures 4,516 4,534 18 0.4%
Use of Money & Property 16,807 16,887 80 0.5%
Revenue from Other Agencies 3,712 2,721 (990) -26.7%
Charges for Current Services 24,820 26,026 1,207 4.9%
178
Other Revenue 1,368 1,604 235 17.2%
Non-Operating Revenue 446 30.051 29,605 6,637.9%
Total 245,251 283,159 37,908 15.5%
18 9
6/7/2022
FY 2022/23 General Fund Proposed Expenditures - $269.0M
USES OF FUNDS BY DEPARTMENT
Transfers* Public Works. Other** Administrative Community
8.0% 3.0% Services _Development
16.9% 3.8% 3.8%
Community &
Library Services
5.4%
Finance
Debt Service 2.4%
7.0% Police
29.9%
Personnel Fire
Services 19.5%
Operating 58.2%
Expenses
17.9%
Non-Departmental
24.4%
* Transfers include Infrastructure, Equipment, General Liability & Other includes City Council, City Manage Section 115 Trust Transfers, HB Recovery ity Attorney, City Clerk, and City Treasur 19 Recommended FY 2022/23 Authorized Positions
• Staff is proposing 4 new General Fund positions in the FY 2022/23 Budget:
City Clerk Department
- (1) Records Specialist to manage public records requests City Manager Department
- (1) Executive Assistant to provide administrative support to the City Manager and Assistant City Manager - restore eliminated position
- (1) Social Worker to assist with the growing Homeless caseload within the Homeless and Behavioral Health Division
- Transfer non-sworn Homeless and Behavioral Health staff from the Police Department to the City Manager's Office
Finance Department
- (1) Accounting Technician Il to process accounts payable invoices and serve as a concierge at City Hall - partially restore accounts payable position eliminated as part of SIP
11. 109.00
20 10
6/7/2022
Recommended FY 2022/23 Authorized Positions
• Staff is proposing a net addition of 5 Other Fund positions in the FY 2022/23 Budget:
Public Works Department
Position Reductions (3)
- Eliminate (2) Water Meter Readers and (1) Water Meter Repair Technician due to implementation of the Automated Water Meter Infrastructure.
Position Additions (7)
- Add (1) Field Service Representative, (1) Water Distribution Maintenance Leadworker, (1) Water Equipment Operator, (1) Water Systems Technician III, and (1) Water Utility Locator to enhance water system maintenance, focus on air quality mandates and Water Production and Flood Control reporting, and address the high volume of service requests.
- (1) Traffic Maintenance Service Worker to improve traffic signal maintenance response - (1) Contract Administrator to administer construction contracts within the approved Capital Improvement Program (CIP)
Finance Department
- (1) Senior Accounting Technician in the Finance Department to provide customer service, billing, and system maintenance and implementation support for the City's municipal services team (water, sewer, and trash)
21 FY 2022/23 Full Time Equivalent - All Funds
1,000.00
Proposed
995.00 Budget
Pre-COVID 989.75
990.00
986.25 986.25 986.25 987.25
985.00 983.75
980.75
980.00 978.25
975.00
972.75
970.00
965.00
950.00
958.25
955.00
Restructure
Plan
950.00
FY 13/14 FY 14/15 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 22 11
6/7/2022
Pension Update
• March 2021, City Council approved refinancing 85% of our pre-existing pension debt at a historically low interest rate of 2.925% allowing the City to save $166.7 million during the next 24-year period
• HB's annual pension payments are anticipated to be up to $17.4M less than if we did not refinance
• FY22/23 Pension Payment $28M vs. $37.7M yielding $9.7M Savings • CalPERS return in FY20/21 was 21.3%:
/ CaPERS Funding level 102.8% vs. 76.7% funded
/ No UAL payment required in FY23/24
• Refinancing will be the better option as long as in the long term CaPERS is able to maintain a market rate of return greater than 2.925% (CaPERS target 6.8%) • As part of our pension debt refinancing plan, the City also adopted an Unfunded Accrued Liability Pension Funding Policy mandating that we set-aside additional funds to payoff any new future pension debt
• A $1.4 million transfer is included in the proposed FY 2022/23 budget to prefund pension liabilities via our Section 115 Trust 23 Pension Payment Comparison with and without Refinancing Pension Payment Amounts
FY 2021/22 - FY 2030/31
50 45
40 35
No UAL Future UAL payments dependent on CaPERS return
30 21.3% CaPERS
Return FY20/21 25
20 15
10 5
FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 Fy 29/30 FY 30/31 5,471,553 5,471,553 5,471,553 5,471,553 5,471,553 5,471,553 5,471,553 5,471,553 5,471,553 BPOB 22,571,894 22,571,365 22,569,834 22,576,076 22,569,314 22,573,775 22,568,519 22,571,680 22,570,145 22,570,992 - UAL
W/O POB$34,924,927 $37,718,694 $39496,628 $41,40,002 $40678,545 $41,846,298 $43,012,009 $43,045,744 $44,24,443 45,476,104 24 12
6/7/2022
Financial Outlook
General Fund (Fund 100) Projected Projected Projected Projected Projected (in thousands) FY21/22 FY22123 FY23/24 FY24/25 FY25/26
Revenue (Recurring) $245,251 $253,552 $257,487 $261,997 $266,605 ARPA Funds 29,607
Total Revenues 245,251 283,159 257,487 261,997 266,605
Personnel Costs 164,431 169,892 171,090 173,566 176,032 Operating Costs 43,658 48,567 49,979 51,456 52,960
Non-Operating Costs* 33,767 34,403 35,735 36,339 36,991 HB Recovery Projects 16,135
Total Expenditures 241,856 268,997 256,804 261,361 265,983 HB Recovery Reserves 13,472
Surplus $3,395 $690 $683 $636 $622
*Includes Debt Service, Capital Expenditures, and Transfers 25 HUNTINGTON
INCORPORATED FY 2022/2023
EAC Capital Improvement
Program (CIP) Review
26 13
6/7/2022
FY 22/23 CIP BUDGET
›Budget
> New Appropriations: $ 60 M ($25M 2 yrs ago)
›Continuing Appropriations: $ 6 M
Total $ 66 M
›Funding sources proposed:
> General/Infrastructure Fund
›Enterprise Funds (Water and Sewer)
›Special Revenue Funds (Measure M, Gas Tax, Prop 42, RMRA, AQMD, PEG, Park & PD DIE, Quimby)
> Grants (CDBG, Prop 68)
27 CIP FUNDING SOURCES
pital Improvement Program FY 2022/
Appropriations by Funding Soul
$59,680,511
Park Funds
Water Funds RMRA Gas Tax/Prop 42
2%
6% 5%
Grants/Other
26%
Infrastructure - Measure M
Fund 4%
35% Sewer Funds
14%
28 14
6/7/2022
DRAINAGE $12.8M
• Heil Avenue Storm Water Pump Station $11M
• Repairs to Channel C6 SC1 $120k
• Storm Drain PS Building Improvements $300k
• Storm Drain PS Forebay Improvements $300k
• Half Round Grates $300k
• McCallen Storm Drain Trash Removal $810k
29 FACILITIES $10.4M
• Joint Youth Training Center $2M
• Central Library Children-Teen Concept Plan $350k
• Oak View Community Center Rehab $2M
• Civic Center UST Replacement $1.2M
• Civic Center Generator and Main Switchgear $1.4M
• Roof Replacement City Yard Bldg "A" $155k
• City Hall Space Planning and Office Improvements $158k Ridigi
30 15
6/7/2022
FACILITIES (Cont.)
• PD Heliport Hangar (Design) $200k
• PD Comm. Center Remodel $1.2M
• PD Traffic Office Remodel $415k
• PD Women's Locker Room (Design) $145k
• Replace R22 AC Equipment $165k
• World Skatepark Development Planning $750k
• Oil Production Abandonment $250k
31 NEIGHBORHOOD $4.2M
• Residential Curb Ramps $665k
• Residential Overlay $3.5M
Zone 2
32 16
6/7/2022
PARKS AND BEACHES $3.2M
• Huntington Bluffs Stabilization Project $400k
• Carr Park Improvements (Design) $355k
• Edison Park Reconfiguration (Design) $475k
• Sports Complex LED Lighting Retrofit $430k
• Huntington Central Park Slater Playground Equipment $475k • Marina Park Reconfiguration (Design) $440k
• Pattinson Park Playground/Picnic Area Improvements $625k 33 SEWER IMPROVEMENTS $8.2M
• Sewer Lift Station Improvements $4.9M
• Sewer Lining - Various Locations $1.4M
• Edinger Sewer, Murdy Channel $1.9M
34 17
6/7/2022
STREETS & TRANSPORTATION
Condition PC Range
Very Good (86-100)
Rank Fiscal Year
Good (75-85)
2003 2006 2008 2010 2012 2014 2016 2018 2020
54.1 64.2 69.7 73.4 76.4 76.5 74.7 76.1 80.2 Fair (60-74) Local 68.1 64.0 62.6 71.6 72.1 78.7 77.6 76.5 77.2
Citywide 63.1 64.1 65.1 72.3 73.5 77.9 76.7 76.4 78.9 Poor (41-59) Very Poor (0-40)
35 STREETS & TRANSPORTATION $17.5M
• Arterial Rehabilitation $6.2M
• Arterial Beautification $1M
• Downtown Revitalization Improvements $1.8M
• Downtown Street Lighting $650k
• Fiber Optic Projects $1.1M
(Garfield, Gothard, Central Library, Bella Terra PD Substation) Arterial Rehab - Before Arterial Rehab - After
36 18
6/7/2022
STREETS & TRANSPORTATION (CONT.)
• Heil Fire Station Signal Improvements $290k
• TS Synchronization - Bolsa $20k
• Bridge Preventive Maintenance Program $500k
• Bridge Rehabilitation $3.8M
• Goldenwest Median Turf Replacement $175k
• Citywide Mobility and Corridor Improvements $2M
37 WATER IMPROVEMENTS $3.3M
• Water Well No. 9 Roof Redesign Project $468k
• Water Well No. 4 Facility Upgrades $1.5M
• Water Main Replacement Projects $1.25M
• Water Production Building Rehabilitation $83k
38 19
6/7/2022
HUNTINGTON BE 0000000
NCORPORATED
Master Fee and Charges
Schedule Review
39 Background
• March 1, 2022 - City Council directed staff to review the Master Fees and Charges Schedule and review the results with the Finance Commission for recommendation prior to City Council Consideration.
• March to May - Finance staff worked with the City's fee consultant and other departments to develop recommended fee adjustments based on CPI adjustments and market rate analysis • May 25, 2022 - After extensive review and discussion, Finance Commission voted to recommend staff's proposed fee adjustments with modifications to City Council • June 7, 2022 - Review fee adjustment recommendations with City Council for consideration 40 20
6/7/2022
Background
• The City maintains a Master Fee and Charges Schedule identifying applicable fees and charges for various City service
• Fees are reviewed and updated periodically
> The City last completed a comprehensive fee study in 2016 based on FY 2014/15 budget and financial • Since then, certain fees were added to implement new programs (e.g., Air Show, Short-Term Rentals) or changed based on market analysis and department feedback • Communities primarily use tax revenues to fund services that provide community-wide benefits.
> Public Works, Public Safety, Park maintenance
• Communities use fees and charges (direct recovery) to fund services that provide a direct benefit, such as:
> Plan review, Permitting, Inspection
41 Background
• Since 2016, regional inflation has increased by 19%
• Cities throughout the State face inflationary pressures for labor-related and operating costs
> California minimum wage has increased by 50% since 2016 • Insurance and utility costs continue to rise
• A best practice in government finance is for cities to perform a comprehensive fee study update every three to five years
For FY 2022-23, staff recommends adjusting most development and operational permit fees by 5.93%
Minimal inflationary adjustments are proposed for Library and Community Services hourly rates only
• Non-inflationary changes to certain department fees are also proposed 42 21
6/7/2022
Municipal Fees in California
• Why do cities charge fees for services?
› To recover costs for services provided to individuals for which there is no benefit to the greater general public
• Enable continuity of service levels by improving cost recovery levels • Periodic reviews ensure user and regulatory fees are set according to the costs of service
> User fees must be linked to and not exceed the estimated reasonable cost of service • The full cost of services sets the maximum limit of a cost-based fee > Direct program costs for labor, services, and supplies • Facilities overhead
Departmental administration
> Citywide administration and central support services
• Generally, fees from users of one program may not be used to pay for costs incurred to serve users of a different program
43 Cost of Service
Hourly Rate Time
for Personnel Required to Cost of
Perform the =
Providing Service
Services Service
Fully Burdened Hourly Estimated or Known Maximum Fee Amount Rates: Times for Providing GTON
• Direct and indirect labor Services
costs
Services and supplies
• Agency Overheac
44 22
6/7/2022
Cost of Service
The program's full cost of service that is supported by other City's revenue sources (typically the General Fund)
Maximum Level of Cost
Recovery = 100%
City Subsidy
Cument Level of Cost
Recovery - X%
Full Cost of 000000000
Service ($) Revenue from GTON
Current Fee
($) CH
Minimum Level of Cost
Recovery = 0% COUN
45 HUNTINGTON 00000000000
1000000 INCORPORATED
EA
Fee Recommendations
FEB. 17, 1909, Afi
46 23
6/7/2022
Proposed Fee Schedule Updates for FY 2022/23
• Update fees by 5.93% to adjust for inflation
This adjustment is significantly less than the change in CPI of 19% (2016-2021) • Projected reduced General Fund subsidy: $301K
• Other refinements to the Master Fee and Charges Schedule to better align certain fees and charges with services provided
• Finance Commission voted to recommend the Proposed Fee Schedule with Commission's modifications on May 25, 2022
NGTON BE
47 Fee Schedule Update - Fire
Proposed Change - Restructure Fire/Life Safety Inspection Fees • Implement a new self-inspection fee (F-99) for extra-low risk occupancies • A nominal fee of $15 would be charged to cover the cost of managing the program • Approximately 2,100 businesses would be eligible to participate • Streamline the fee schedule for fire and life safety inspections and change fee to include one inspection and charge for re-inspections
• The transition to select low-risk self-inspections would allow Fire staff to focus more time on other critical duties such as fire suppression response training, pre-planning to map hazards and risks, and community risk reduction • Realigning the program would result in an estimated $1,900 decrease in cost recovery
48 24
6/7/2022
Fee Schedule Update - Fire
Proposed Change - Restructure Fire/Life Safety Inspection Fees (continued) • Add a fee (F-262) for late submission of Inspection, Test, and Maintenance (ITM) reports to increase the compliance rate for fire system maintenance ($15/month) • Businesses will receive automated notifications beginning 30 days in advance of the due date and the late fee will be assessed once the report is 90 days overdue • A similar fee is assessed for annual Hazardous Material Business Plan submissions, which has resulted in a 95% compliance rate 00000000
• Currently, 42% of businesses have overdue ITM reports NG TON • The fee is expected to increase compliance to 95% and provide annual increased fee recovery of $24,900
Y CALIFORN
COUNTY
49 Fee Schedule Update - Fire
Proposed Change - Restructure Fire/Life Safety Inspection Fees (continued) Current Fee Schedule Proposed Fee Schedule
Description Fee Description Fee
F-99 72 F-99 Self-inspection Report
108 F-100 Up to 2,000 sq. ft. 108
200 F-101 2,001 - 10,000 sq. ft. 280
320 F-102 Over 10,000 sq. ft. 400
F-262 IT Late Fee (per month 15
724 High Rise Inspections
Repeat inspection//violation notice 80 F-121 7 Stories (base fees) Actual Cost* F-122 Per floor above 7 stories Actual Cost*
2,900 Junior Lifeguard Program Fees
223 F-142 Resident Fees Charged 556
F-143 Non-Resident Fees Charged 583
605 F-143.3 Sand Crab (resident and non-resident) 159 NGTON 635 *F-252 Fire Prevention Hourly Rate
EF:143 Sand Crad resides Chad non fesident) 150 BEACH
• Minor revisions to Central Net Training Center User Fees are also proposed to align fees with training programs administered at the Center ORA • Reduction in fees for residents and non-residents for the Junior Lifeguard
COUNTY CA
program are also proposed 50
25 6/7/2022
Fee Schedule Update - Public Works
Proposed Changes
• Revise the Fire Hydrant Flow Analysis fee (PW-9) from a deposit-based fee to This administrative change would reduce the number of refunds issued • Hourly Rate for the Engineering division (PW-77) would be used to calculate the fee
• Revise Utility Company Encroachment Permit fee (PW-22) to eliminate the "Encroachment Permit Expired" fee of $119
• No longer applicable as the permit may be continuously renewed as long. as the license and insurance remains current HUNTINGTON • Proposed revisions are administrative only (cost neutral)
CALIFORN
COUNTY
51 Fee Schedule Update - Community
Development
Proposed Change - Eliminate Outdoor Dining Fees PL 106 & 107 • License Agreement Use Charge (PL 106) is considered "rent," not a fee • Current annual rate of $0.01/sq ft was set in the 1990s and is well below market rates
• Similar fees charged by other coastal cities are location-based and range from $1-7.05/sq ft per month
• Rent charges will be brought to City Council at a future date to set rent charges to be included in License Agreements
Fee is unrelated to the Temporary Emergency Use Permit established NTING Y during the COVID-19 pandemic for the City's Open Air Dining Program 52 26
6/7/2022
Fee Schedule Update - Community
Development
Proposed Change - Eliminate License Agreement Code Enforcement Fee (PL 107) License Agreement Code Enforcement Fee (PL 107) is used for complaint-driven inspections
Current rate is $4/sq ft
Utilizing established Code Enforcement fees (CE-10 to CE-14) will more accurately cover staff time to review and investigate complaints
10000
ST COUNTY CHAND 000817, 1801, 300
53 Fee Schedule Update - Community
Development
Proposed Change - Revise Building Inspection Fees
Plan check consultants charge the City a percentage of the plan check fee (~70% • Consultants have noted the cost spent on plan review far exceeds the fee collected Current fees are significantly lower than comparable surrounding cities EXAMPLE: Fees for 2,500 sq ft Building valued at $300,000 Building Inspection Planning Plan Check Building Plan Check Fees (B-2) Fees (PL-95)* Fees (B-3)** Total
Huntington Beach (current) $ 2,164 995 $ 1,320 $ 4,479
1,580 323 2,577 4,480
Huntington Beach (proposed) 2,400 1,104 1,464 4,968
3,039 900 1,520 5,459
Costa Mesa 3,463 N/A 2,251 5,714
Newport Beach 3,648 520 2,837 7,005
County of Orange 5,490 N/A 3,569 9,059
46% of total Building Inspection Fee (B-2) * 61% of total Bullding Inspection Fee (B-2) 54 27
6/7/2022
Fee Schedule Update - Community
Development
Proposed Change - Revise Building Inspection Fees
EXAMPLE: Fees for Building valued at $2,001 - $25,000
Building Inspection Planning Plan Check Building Plan Check Fees (B-2) Fees (PL-95)* Fees (B-3)** Total
Huntington Beach (current) $ 295 $ 180 136 $ 611
Huntington Beach (proposed) 404 186 836
508 NA 838
703 N/A 268 971
450 310 225 985
572 323 351 1,246 p0000
836 208 642 1,686 GTON
• 46% of total Building Inspection Fee (B-2) ** 61% of total Bullding Inspection Fee (B-2) • Projected Annual Increased Cost Recovery: $324,000
COUNTY CALIFO
55 Fee Schedule Update - Community &
Library Services
Proposed Change - Revisions to Facilities Cancellation Fee, Camp HB, and Senior Outreach Center
• Facility Reservation Cancellation Fee: $10 to $25
• Senior Outreach Center: added rental rates for Residents, Non-Residents, and Commercial categories in preparation of the facility opening • Adjustments to Camp Charges
Camp HB: Proposed increase from $175/week to $180-200/week • Fees for similar programs offered by Costa Mesa and Irvine are $220 and $249 per week TINGTON
• Addition of Camp HB Extended Hours charge: $35-50/week 778 • The proposed ranges would phase in over multiple years • Proposed changes would take effect beginning Summer 2023
1. 180 00 CALIFORN
• Projected Annual Increased Cost Recovery: $9,000 56
28 6/7/2022
Fee Schedule Update - Community &
Library Services
Proposed Change - SANDS CLS Services Guide Advertising Rates Current Proposed
$ 3,500 No change
Inside Front Cover - full page 3,200 No change
Inside Back Cover - full page 2,800 3,200
2,000 3,000
1,200 1,500
800 1,000
1/2 page (B & W, Horizontal) 800
1/4 page (B & W, Vertical) 500
Inside Front Cover - 1/2 page N/A 1,600 NEW 00000000
Inside Back Cover - 1/2 page N/A 1,600 NEW
• Advertising rates were last adjusted in 2016
• Proposed rates would offset increased color printing cost:
• Projected Annual Increased Cost Recovery: $10,000
57 Fee Schedule Update - Community &
Library Services
Proposed Change - Sunset Vista RV Campground Daily Rates • Adjust rates to reflect increased demand on weekends and holidays • Holidays: week of Thanksgiving and Christmas, Veterans Day, Martin Luther King Jr.
Day, Presidents Day, and Memorial Day
• Modify the existing Reservation Cancellation Fee of $25 for cancellations less than 30 days to 2-day notification to align with other campground standards • Addition of Site Lock Fee of $5/night
• Allows campers to lock their space for best view or to be near family/friends INGTON for an improved camping experience
• Facility Improvements: lot repaved as part of the FY 2021/22 CIP, new electrical hookups, Wi-Fi access LEE COUNTY CAUSE
• New, user-friendly reservation system to be implemented in July 2022 58 29 6/7/2022
Fee Schedule Update - Community &
Library Services
Proposed Change - Sunset Vista RV Campground Daily Rates Sunset Vista Daily Rates Winter Camping (Oct 1 - May 31) Cure STolen
Recreational Vehicle (RV) plus Auto
Senior (62+) $60/day
With Disabled Person (DP) Placard $60/day| 65/day Sun-Thur $75/day Fri & Sat/Holidays
Reservation Cancellation Fee (>2 days prior to arrival date) N/A S Reservation Cancellation Fee (2 or less days prior to arrival date) N/A Reservation Fee 10
Reservation Cancellation Fee -25
BING TON
(for cancellations less than 30 days)
Space Lock Fee N/A $5/day NEW BEACH
"Holiday Rates
Thanksgiving Week (Sunday preceding Thanksgiving through Saturday night following Thanksgiving) Christmas Week (day preceding Christmas through New Year's Eve) Day preceding Veterans Day (observed), Martin Luther King Jr. Day, Presidents Day, Memorial Day • Projected Annual Increased Cost Recovery: $73,000
59 Fee Schedule Update - Summary
Summary of Proposed Changes to the Master Fee and Charges Schedule (by Department)
Inflationary Non-CPl New Fees Reduced Fees Fees Remaining Total by Department Adjustments Unchanged Department
Adjustments
City Clerk
o a
City Manager 24 29
Community & Library Senices 10 11 374 398
Community Development 203 8 267
Finance 42 17 60
Fire 145 16 89 1281
Information Services
Police 12 30
Public Works 73 27 101
Total 504 36 20 603 1167
• Includes recalibration, restructure, pass-through, and market rate adjustment. • 43% of total fees are adjusted for inflation, and have not been adjusted since the adoption of the Fee Schedule in 2016
• 52% of total fees will remain unchanged
CALIFOR
60 30
6/7/2022
Fee Schedule Update - Summary
Summary of Proposed Changes to the Master Fee and Charges Schedule (by Typical Fee Payer Category)
Inflationary Non-CPl Fees Remaining Total by
Typical Fee Payer New Fees Reduced Fees Fee Payer
Adjustments Adjustments* Unchanged
Business or Organization 108 10 4 90 212
Business or Individual 4 3
Business or Other Public Agency 10 65 83
Developer 1 1
Developer, Contractor, Business, or Individual 335 71 417 Developer, Contractor, or Business 29
Individual 250
Individual or Business 12 12
Individual or Organization 18 34 51
Individual, Organization, or Business 26 28
Organization 73 73
Other Public Agency 1
20 Total 504 603
* Includes recalibration, restructure, pass-through, and market rate adjustment.
The fees paid by developers, contracts, businesses, or homeowners with proposed adjustments are primarily building and planning fees for permitting of new construction or modifications to existing structures 61 Fee Schedule Update - Summary
• The intent of these adjustments is to reflect the gradual increase of costs due to inflationary pressures.
Proposed Master Fee and Charges Summary
Decrease in City
Department Fee Subsidy
CPI Adjustment of 5.93% $ 301,000
Fire 23,000
Community Development 324,000
Community & Library Services - Programs 9,000
Community & Library Services - SANDS 10,000
Community & Library Services - Sunset Vista 73,000
Total Estimated General Fund Savings $ 740,000
• If the Master Fee and Charges Schedule is amended as proposed, General Fund revenues subsidizing these fees would decrease by $740,000 and provide a corresponding increase in available discretionary General Fund revenue to be used for capital projects, equipment, and other City Council priorities. 62 31
6/7/2022
Fee Schedule Request for Council Direction
• Request for Council direction on the Proposed Fee Schedule recommended by Finance Commission. Options include the following:
1. Approve the Proposed Fee Schedule recommended by Finance Commission
2. Approve the Proposed Fee Schedule recommended by Finance Commission with City Council modifications
3. Do not approve changes to the Fee Schedule at this time • If approved, the proposed fee adjustments for Community and Library Services would take effect July 1, 2022. All other proposed fee adjustments would be effective August 8, 2022.
• FY2022/23 Proposed Budget does not include the $740K recommended updates to the Fee Schedule
63 HUNTINGTON 000000000000000000
INCORPORATED
BEAC Next Steps -
Approval of FY 2022/23
Budget Requested
FEB. 17, 1909, A.9i
64 32
6/7/2022
City Council Approval Requested
• City Council approval of the proposed FY 2022/23 budget is requested • Key budget components include:
1) Structurally balanced FY 2022/23 spending plan - $690K General Fund surplus 2) Continued investment in infrastructure
- General Fund transfer to the Infrastructure Fund increased by 17% to $13.5M - CIP budget increased 52% to $59.7M
3) American Rescue Plan Act - administrative change
4) Set-aside $1.66M CM Housing Agreement & $1.5M RDA legal proceeds in Strategic Initiative Reserves 5) Set-aside $3.7M RDA legal proceeds in Housing Funds for the Healing Center 6) Circuit Ride Share Program - continue program
- $350K is included in the FY22/23 Proposed Budget to fund the Circuit Ride Share Program NIGTON BEACH 7) Master Fee and Charges Adjustments
-Finance Commission proposed fee adjustments would increase cost recovery by $740K COUNTY
65 33