City of Huntington Beach
FY 2024/25 Budget Adoption
City Council Public Hearing
June 4, 2024
1 SUPPLEMENTAL
COMMUNICATION
Meeting Date:_____________
Agenda Item No. ___________
#19 (24-420)
6-4-2024
Presentation Overview
• Proposed FY 2024/25 General Fund Budget Review
• Proposed Revenue Adjustments
• FY 2024/25 Budget Approval and Related Actions Requested 2 Proposed FY 2024/25
General Fund Budget Review
3 FY 2024/25 General Fund Proposed Budget Review
• Proposed FY 2024/25 General Fund Budget is structurally balanced, with a projected $1.7 million surplus
The surplus figure has been updated from the May 21st Study Session to include proposed Master Fee and Emergency Medical Fee (EMS) revenues increases totaling $1.9M Proposed increases to key positions within the City Attorney’s Office to assist with attraction and retention of talent and to fill critical vacancies have also been included. 4 * GF portion of Waterfront allocation, of which
25% is being transferred to the Section 115
Trust, 23% is being transferred to the
Equipment Replacement Fund, 15% is being
transferred to the Workers’ Compensation Fund
and 37% is being transferred to the General
Liabilities Fund
** Includes Debt Service, Capital Expenditures,
and Transfers
• Continued Infrastructure Investments in FY 2024/25
General Fund transfer to the Infrastructure Fund totals $14.5M CIP budget totals $35.3M (decrease from prior year of $41.2M due to $4.5M of AES projects in FY 2023/24) General Fund (Fund 100)
(in thousands)
Proposed
FY 24/25
Revenues (recurring) $294,818
Revenues (one‐time) * 6,877
Total Revenues 301,695
Personnel Costs 191,221
Operating Costs 57,374
Non‐Operating Costs ** 51,400
Total Expenditures 299,995
Surplus / (Deficit) $1,700
FY 2024/25 General Fund Proposed Revenues - $301.7M
5 Property Tax
$108.2M, 35.8%
Sales Tax
$53.5M, 17.7%Franchises
$10.6M 3.5%
Transient Occupancy Tax
$16.8M, 5.6%
Utility Users Tax
$23.0M, 7.6%
License & Permits
$8.8M, 2.9%
Fines & Forfeitures
$4.6M, 1.5%
Use of Money & Property
$22.6M, 7.5%
Revenue from Other Agencies
$8.8M, 2.9%
Charges for Current Services
$35.7M, 11.8%
Other Revenue
$1.6M, 0.5%
Non‐Operating Revenue
$7.5M, 2.5%
FY 2024/25 General Fund Proposed Revenues - $301.7M
• Major revenue variances include:
Property Tax: $108.2 million (3.8% or $3.3 million increase) - Higher assessed valuations as of January 1, 2024 versus prior fiscal year Revenue from other Agencies: $8.8 million (200.5% or $6.1 million increase) - Expected reimbursement of $6.2 million fr om participation in the Voluntary Rate Range Intergovernmental Transfer (VRRP IGT) Program. These revenues are partially offset by expenditures related to program participation. Non-Operating Revenue: $7.5 million (173.8% or $4.7 million increase) - FY 24/25 includes one-time transfer of $6.9 mi llion for first repayment related to the Waterfront Loan Superior Court Judgement
- Partially offset by FY 23/24 one-time revenues of $2.3 million for Emerald Cove Superior Court Judgement
6 FY 2024/25 General Fund Proposed Expenditures - $300.0M * Transfers include Infrastructure, Equipment, General Liability & Section 115 Trust Transfers
** Other includes City Council, City Clerk, and City
Treasurer
7 Personnel
$191.2M,
63.7%
Operating
$57.4M,
19.1%
Debt Service
$6.5M, 2.2%
Transfers *
$44.9M, 15.0%
BY CATEGORY
Other **
1.3%
City Attorney
1.4% City Manager
1.2%
Finance
1.9%
Community
Development
3.4%
Community &
Library Services
5.4%
Human Resources
1.0%
Information
Services
2.8%
Non‐
Departmental
22.0%
Public Works
8.1%
Fire
20.8%
Police
30.6%
BY DEPARTMENT
FY 2024/25 General Fund Proposed Expenditures - $300.0M Historical By Department
8 FY 2024/25 General Fund Proposed Expenditures - $300.0M • Major expenditure variances include:
Personnel: $191.2 million (4.9% or $9.0 million increase) - Increase to PERS Normal Cost and PERS UAL
- Continuing impacts from FY 23/24 MOU updates
- Addition of 4 FTEs (more details on following slide)
Operating: $57.4 million (-2.6% or $1.56 million decrease) - Citywide effort to realign costs and pres erve funding for contractual increases and inflationary demands related to the provision of core services 9 Recommended FY 2024/25 Authorized Positions
• Staff is proposing 4 new positions in the FY 2024/25 Budget:
City Attorney’s Office
• Upgrade of 1 Deputy Community Prosecutor to Senior Deputy Community Prosecutor to lead City’s prosecutorial efforts for complex misdemeanor cases (General Fund)
Community Development Department
• (1) Building Inspection Supervisor to provide staff supervision and oversight of complex residential and commercial projects (General Fund) Fire Department
• (1) Limited-term Management Aide to serve as a community engagement coordinator (Opioid Funds)
Police Department
• (1) Real Time Crime Center Supervisor to oversee the proactive monitoring of available technology and information systems resources to aid in the prevention of crime (General Fund)
10 Recommended FY 2024/25 Authorized Positions
• Staff is proposing 4 new positions in the FY 2024/25 Budget:
Public Works Department
• (1) Fleet Maintenance Crew Leader to coordinate fuel sites and fuel system compliance (General Fund)
• (1) Senior Mechanic to meet demand fo r heavy equipment and safety fleet vehicle maintenance and repairs (General Fund)
• (-1) Non-General Fund position restructuring:
‒ Upgrade of 1 vacant Capital Projects Administrator to Capital Projects Supervisor to oversee construction project management and contract administration
‒ Upgrade of 1 vacant Deputy Director of Public Works to Deputy Public Works Director / City Engineer
‒ Elimination of City Engineer position (-1)
11 978.25
983.75 986.25 986.25 986.25 987.25
958.25
980.75
991.75
1,001.75
1,005.75
950.00
960.00
970.00
980.00
990.00
1,000.00
1,010.00
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 FY 23/24 FY 24/25 FY 2024/25 Full Time Equivalent – All Funds
Pre‐COVID
12 Proposed Revenue
Adjustments
13 EMS Cost Recovery Fee Adjustment
• The City’s EMS fees were last updated in 2021
• Based on a third-party assessment coordinated by the Fire Department, the FY 2024/25 proposed budget contemplates an adjustment to EMS fees to full cost recovery and includes two new fees • Standby Charges: This is to capture the time spent by Fire Department staff at the hospital waiting per the hospital’s request before they can be put back in service. • Facility Lift Assist / Non-Transport: This fee is for specif ic medical care facilities or residential nursing homes / assisted care facilities to conduct lift assists or other basic assessment of residents who do not need emergency transport to a local emergency department.
• If approved, approximately $1.6M in new General Fund revenue is anticipated annually % ChangeDifferenceRecommended
/Full Cost FeeCurrent FeeFee Description
ALS/BLS Assessment and Emergency Transport Fees
26%($437)$2,092$1,655Basic Life Support (BLS) Base Rate 27%($46)$220$174Advanced Life Support (ALS) Surcharge
26%($125)$599$474Non‐Resident Surcharge
26%($96)$462$366Treat No Transport Fee
44%($6.97)$22.74$15.77Mileage
53%($61)$176$115Oxygen
20%($13)$77$64EKG
New Fees
N/AN/A$149N/AStandby (ea. 30 min)
N/AN/A$376N/AFacility Lift Assist/Non‐Transport 14
Master Fee and Charges Schedule
Adjustments
• The City maintains a Master Fee and Charges Schedule identifying applicable fees and charges for various City services.
• Fees are reviewed and updated periodically
• The City last completed a comprehensive fee study in 2016 based on FY 2014/15 budget and financial data
• The proposed Master Fee and Charges Schedule incorporates a full cost of service study based on FY 2023/24 budget data and also includes strategic adjustments to certain fees.
• Communities primarily use tax revenues to fund services that provide community-wide benefits such as Public Works, Public Safety, and Park Maintenance. • Communities use fees and charges (direct recove ry) to fund services that provide a direct benefit to an individual or business, such as: plan review, permitting, and inspection. • If adopted as proposed, the updated schedule is expected to generate up to $1,262,586 in additional annual revenue, $908,045 of which is General Fund revenue. 15 Master Fee and Charges Schedule
Adjustments
City Treasurer Fees
• Increase Credit Card Transaction Fee (FN-67) from 2.29% to 3.00% • Projected decrease in subsidy: $73,500 General Fund, $94,030 Other Funds City Manager Fees
• Restructuring of Film Permit Fees to align with other cities Restructured Application Fee Introduction of Peak Season filming fees Addition of equipment fees Standardized fee schedule for staff time New 15% coordination fee
• Civic Center Room Rentals
• Projected decrease in subsidy: $32,480 Other Funds
16 Master Fee and Charges Schedule
Adjustments
Community Development Proposed Adjustments
• New Expedited Plan Review Fee
• Offered at 2x the regular plan review rate
• Reduces building plan review turnaround time by 50%
• Projected decrease in subsidy: demand-based, to be evaluated in FY 2024/25 • Strand Parking Structure
• Parking Rate adjustments to align with other similar mixed-use facilities and comparable parking programs in Orange County
• Peak pricing months would be extended from May 16-September 14 to April 1- October 31 to align with periods of higher demand
• Projected decrease in subsidy: $100,774 General Fund, $100,774 Other Funds 17 Master Fee and Charges Schedule
Adjustments
Community & Library Services Proposed Adjustments
• New Specific Events Ticketed Event Fee
• Event organizers seeking permits for ticketed events will be required to pay a per-ticket fee for all ticketed events based on the face value of the ticket • Projected increase in revenue: $200,000 General Fund in Year 1 • Sports Complex (HCPSC) Tournaments and Special Events Parking • New parking charge to increase the daily parking rate on Tournament/Special Event days from the current $2 to $10.
• 40% of the revenue generated from this f ee would be placed in a dedicated fund for HCPSC capital improvements.
• Projected increase in revenue: $267,194 General Fund, $178,127 Other Funds Ticket Value Per Ticket Fee
$0 - $50 $2
$51 - $200 $4
$201+ $6
18 Master Fee and Charges Schedule
Adjustments
Community & Library Services Proposed Adjustments (continued) • Room Rental Hourly Increases
• Recommended increase of $15 per hour at the following facilities:
Senior Center in Central Park Clubhouses
Community Center Rooms Central Library Theater Rental
C and D Rooms in the Central Library
• Rates were last adjusted in December 2018
• Projected increase in revenue: $115,760 General Fund
19 Master Fee and Charges Schedule
Adjustments
Community & Library Services Proposed Adjustments (continued) • Newport Beach: $77/hour (Resident Non-Profit groups) to $344/hour for Non-Resident Commercial Rates
• Irvine: $37/hour (Resident Youth Non-Profit to $79/hour for Commercial For Profit) • Projected increase in revenue: $21,000 General Fund
ProposedCurrentField Rental Hourly Rates
$22.00/hr . or $198 per day$15.00/hr .HB Nonprofit/Organized 55+ Senior Groups $32/hr . or $238 per day$25.00/hr .Adult or Youth Residents $37.00/hr . or $285.00/day$25.00/hourNon‐Resident/Non‐Profit Groups *NEW* $42/hr . or $342.00/day$25.00/hourCommercial/Business/For‐Profit *NEW* 20 Master Fee and Charges Schedule
Adjustments
Police Proposed Fees
Projected decrease in subsidy: $50,000 General Fund
CITY PHOTOS AUDIO VIDEO
BODY-WORN
CAMERAS DISPATCH
REPORT
REQUEST
Costa Mesa $ 29.75 $ 30.00 $ 50.00 $ 50.00 $ 40.00 $ 9. 00 Fountain Valley 15.00 15.00 15.00 15.00 15.00 No charge Garden Grove 20.00 20.00 20.00 20.00 20.00 $0.10 per page Newport Beach 38.00 81.00 162.00 165.00 94.00 3.25 Huntington Beach
(Proposed) 25.00 25.00 25.00 25.00 25.00 5 .00 Orange* 25.00 25.00 25.00 25.00 25.00 24.00 Santa Ana 21.00 47.00 47.00 47.00 47.00 $0.21 per page Tustin 37.00 37.00 37.00 37.00 37.00 No charge Huntington Beach
(Current) No charge No charge No charge No charge No charge No charge * City of Orange charges $82.00 for police reports exceeding 75 pages.
FEE TYPE
21 Master Fee and Charges Schedule
Adjustments
Fire Proposed Adjustments
• Adjustments are proposed based on updated review of cost of service for Community Risk Reduction, Central Net Training Center, Plan Review, and other Fire program fees. • Additional new fees such as copies and instructor wages are recommended in the Central Net Training Center category
• Projected decrease in subsidy: $10,337 General Fund, $2,610 Other Funds Public Works Adjustments
• Adjustments are proposed based on a review of actual costs • The majority of fees are deposit-based, and unused fees are returned to the applicant • Projected decrease in subsidy: $37,000 General Fund
Annual Inflationary Adjustment
• Recommended that City Council authorize the City Manager or designee to make annual inflationary adjustments to fees and charges
• Based on the prior year annual percentage change in the all-urban Consumer Price Index for Los Angeles-Long Beach-Anaheim, California (CPI), not to exceed five percent (5%) per year. • Other Orange County cities that have adopted this method include: Newport Beach, Costa Mesa, Seal Beach, and Lake Forest.
22 Master Fee and Charges Schedule Summary
DEPARTMENT
City Treasurer - Credit Card Transaction Fee 73,500 $
City Manager - Film Permit Fee Restructuring 32,480
City Manager - Civic Center Room Rentals TBD
Community Development - Expedited Plan Review TBD
Community Development - Strand Parking Fees 100,774
Community & Library Services - Ticketed Event Fee 200,000 Community & Library Services - Sports Complex Tournaments & Special Events Parking 267,194 Community & Library Services - Room Rentals 115,760
Community & Library Services - Field Rentals 21,000
Fire Fees - Inspection, Plan Review, and Hourly Rates 10,337 Police - Records Fee 50,000
Public Works Fees 37,000
Total Estimated General Fund Revenue Impact 908,045 $
City Treasurer - Credit Card Transaction Fee (Other Funds) 94,030 Community Development - Strand Parking Fees 100,774
Community & Library Services - Sports Complex Tournaments & Special Events Parking 178,127 Fire Fees - Central Net User Fees 2,610
Total Estimated All Funds Revenue Impact 1,283,586 $
23 General Fund Long-Term Financial Plan
with Proposed Master Fee and EMS Fee Changes
24 * FY 22/23 one‐time revenue consists of $29.6M in American Rescue Plan Act funding and $1.8M in transfers from the Housing Agreement and Triple Flip fund. FY 23/24 one‐time consists of General Fund portion of Emerald Cove settlement. FY 24/25 one‐time consists of the General Fund portion of the first payment of the Waterfront Loan Settlement. Future payments of the Waterfront Loan are calculated on an annual basis in accordance with Health and Safety Code Section 34191.4(b)(3)(A). ** Future CalPERS UAL Costs are estimated using the most recent CalPERS investment return of 6.1% in FY 22/23. The current forecast requires use of Section 115 Trust reserves (per UAL Policy) starting in FY 25/26. (in thousands) Actual
FY22/23
Projected
FY23/24
Proposed
FY24/25
Projected
FY25/26
Projected
FY26/27
Projected
FY27/28
Revenue (Recurring) 277,069 279,775 294,818 296,455 303,967 311,720 Revenue (One‐Time)* 35,648 5,470 6,877 ‐‐‐
Planned Use of Reserves ‐ 8,804 ‐‐‐‐
Total Sources of Funds 312,717 294,049 301,695 296,455 303,967 311,720 Expenditures less UAL 254,720 264,960 274,797 282,175 290,563 297,805 CalPERS UAL ** 4,891 5,000 5,215 8,981 12,727 16,458
POB Payment 13,663 13,276 13,106 12,750 12,537 12,537
One‐Time Expenditures 18,721 8,804 6,877 ‐‐‐
Total Expenditures 291,995 292,040 299,995 303,906 315,827 326,800 Restricted Reserves 16,978 ‐‐‐‐‐
Surplus/(Deficit) $3,744 $2,009 $1,700 ($7,451) ($11,860) ($15,080) General Fund Long-Term Financial Plan
without Proposed Master Fee and EMS Fee Changes
25 * FY 22/23 one‐time revenue consists of $29.6M in American Rescue Plan Act funding and $1.8M in transfers from the Housing Agreement and Triple Flip fund. FY 23/24 one‐time consists of General Fund portion of Emerald Cove settlement. FY 24/25 one‐time consists of the General Fund portion of the first payment of the Waterfront Loan Settlement. Future payments of the Waterfront Loan are calculated on an annual basis in accordance with Health and Safety Code Section 34191.4(b)(3)(A). ** Future CalPERS UAL Costs are estimated using the most recent CalPERS investment return of 6.1% in FY 22/23. The current forecast requires use of Section 115 Trust reserves (per UAL Policy) starting in FY 25/26. (in thousands) Actual
FY22/23
Projected
FY23/24
Proposed
FY24/25
Projected
FY25/26
Projected
FY26/27
Projected
FY27/28
Revenue (Recurring) 277,069 279,775 292,267 293,402 300,725 308,287 Revenue (One‐Time)* 35,648 5,470 6,877 ‐‐‐
Planned Use of Reserves ‐ 8,804 ‐‐‐‐
Total Sources of Funds 312,717 294,049 299,144 293,402 300,725 308,287 Expenditures less UAL 254,720 264,960 274,797 282,175 290,563 297,805 CalPERS UAL ** 4,891 5,000 5,215 8,981 12,727 16,458
POB Payment 13,663 13,276 13,106 12,750 12,537 12,537
One‐Time Expenditures 18,721 8,804 6,877 ‐‐‐
Total Expenditures 291,995 292,040 299,995 303,906 315,827 326,800 Restricted Reserves 16,978 ‐‐‐‐‐
Surplus/(Deficit) $3,744 $2,009 ($851) ($10,504) ($15,102) ($18,513) FY 2024/25 Budget Approval
and Related Actions
Requested
26 City Council Approval Requested
27 1) Adopt a budget for Fiscal Year 2024/2025
2) Authorize the Professional Services Listing included in the FY 2024/2025 Budget 3) Adopt Resolution No. 2024-28 Establishing the Gann Appropriation Limit for Fiscal Year 2024/2025 in the amount of $1,217,866,589
4) Adopt Resolution No. 2024-27 Levying a Retirement Property Tax for Fiscal Year 2024/2025 to Pay for Pre-1978 Employee Retirement Benefits
5) Adopt Resolution No. 2024-24, “A Resolution of the City Council of the City of Huntington Beach Modifying Salary and Benefits for Non-Represented Employees by Adding the Deputy Public Works Director/City Engineer Classification and Establishing the Compensation 6) Adopt Resolution No. 2024-25, “A Resolution of the City Council of the City of Huntington Beach Amending the City’s Classification Plan by Adding the Classifications of Capital Projects Supervisor and Real Time Crime Center Supervisor
7) Adopt Resolution No. 2024-33, “A Resolution of the City Council of the City of Huntington Beach Modifying Salary and Benefits for Non-Represented Employees by Adding the Senior Deputy Community Prosecutor Classification and Establishing the Compensation and Amending the Non- Elected Non-Represented Employees Pay Schedule to Update the Compensation Range for the Chief Assistant City Attorney and Deputy Community Prosecutor City Council Approval Requested
28 8) Adopt Resolution No. 2024-31, “A Resolution of the City Council of the City of Huntington Beach Adopting an Updated Master Fee and Charges Schedule
9) Adopt Resolution No. 2024-32, “A Resolution of the City Council of the City of Huntington Beach Setting Advanced Life Support, Basic Life Support, and Emergency Ambulance Transportation Fees to be Charged by the Fire Department of the City of Huntington Beach 10) Adopt Resolution No. 2024-26, “A Resolution of the Huntington Beach City Council of the City of Huntington Beach, California Acknowledging Receipt of a Report Made by the Fire Chief of the Huntington Beach Fire Department Regarding the Inspection of Certain Occupancies Required to Perform Annual Inspections in such Occupancies Pursuant to Sections 13146.2 and 13146.3 of the California Health and Safety Code
11) Authorize the City Manager or designee to purchase one Triple Combination Pumper Engine in the amount of $1,257,063.
12) Direct 40 percent of Huntington Central Park Sports Complex (HCPSC) Tournaments and Special Events Parking to the HCPSC Capital Improvements Fund (Fund 325) to provide for HCPSC capital improvements.
Questions?
29