Budget Study Session - Agenda
CITY COUNCIL AGENDA 2023-05-01 (SPECIAL).PDF
Preliminary Budget Study Session
PRELIMINARY STUDY SESSION (002).PDF
1. Documents:
1.I. 4:30 PM
Documents:
CITY OF LA VERNE
SPECIAL MEETING
CITY COUNCIL AGENDA
__________________________________________________________________________
Monday, May 1, 2023, at 4:30 p.m.
La Verne City Hall – Council Chambers,
3660 D Street, La Verne, CA 91750
In compliance with the American Disabilities Act, any person with a disability who requires a modification or accommodation to participate in a meeting should contact the City Clerk’s Office at (909) 596-8726 at least 48 hours prior to the meeting. Regular Meetings are held on the 1st and 3rd Monday of every month.
Individuals can email their comments to the Assistant City Clerk at [email protected] up to noon on the day of the meeting. Those comments will be shared with City Council in advance of the City Council meeting and included as part of the permanent record. Please be advised that public comments submitted by emails or any other format to the City are public records that will be made available for public viewing.
Individuals who wish to share their comments directly during the meeting may do so by emailing the Assistant City Clerk at [email protected] with their phone number and the item(s) they wish to speak on. Requests will be accepted before and throughout the meeting and staff will call you back at the appropriate time. Once items are considered by the City Council, no further p ublic comment on that matter will be accepted. A time limit of 3-minutes is set for all public comments.
Council Meeting Decorum : Per the City’s Rules for Decorum, all Speakers and Members of the Audience are to conduct themselves with decorum and not engage in willful conduct which interrupts the meeting or with the orderly conduct of the meeting.
CALL TO ORDER
ROLL CALL: Council Member Meshal “Kash” Kashifalghita, Council Member Steven Johnson, Council Member Wendy Lau, Mayor Pro Tem Rick Crosby, and Mayor Tim Hepburn.
Tim Hepburn, Mayor
Rick Crosby, Mayor Pro Tem
Wendy Lau, Council Member
Steve Johnson, Council Member
Meshal “Kash” Kashifalghita, Council Member
www.cityoflaverne.org
(909) 596-8726 - Phone
(909) 596-8740 - Fax
City Hall Council Chamber
3660 D Street
La Verne, CA 91750
AGENDA, La Verne City Council Special Meeting, May 1, 2023, Page 2
1. The City Council will meet in a Study Session for the following:
2023-24 Budget and the 5-year Capital Improvement Plan
PUBLIC COMMENTS/ORAL COMMUNICATIONS - This is the time set aside for anyone wishing to address the City Council on items not listed in any other place on the agenda. Under the provisions of the Brown Act, the legislative body is prohibited from talking or engaging in discussion on any item not appearing on the posted agenda. However, your concerns may be referred to staff or set for discussion later. Please email your public comment to the Assistant City Clerk at [email protected]. Your public comment will be shared with the City Council and included as part of the permanent record. There is a 3-minute time limit on public comments.
ADJOURNMENT
THE NEXT REGULAR MEETING of the La Verne City Council is scheduled for May 1, 2023, at 6:30p.m.
ADVISORY STAFF
Ken Domer, City Manager
JR Ranells, Assistant City Manager
Kimberly Hall Barlow, City Attorney
Lupe Gaeta Estrella, Assistant City Clerk
Meg McWade, Public Works Director
Eric Scherer, Community Development Director
Christy Lopez, Finance Director
Sam Gonzalez, Acting Police Chief
Christopher Nigg, Fire Chief
Yvonne Duran, Community Services Director
Cody Howing, City Engineer
Posting Statement: A true and correct copy of this Agenda was posted on April 25 2023, at the bulletin board at La Verne City Hall, 3660 D Street, La Verne, and on the City’s website at www.cityoflaverne.org.
Council Study Session
Preliminary Budget Review
Fiscal Year 2023/24
May 1, 2023
Budget Process
Five Year Financial Forecast
FY 23/24 Proposed Budget Overview
Next Steps
Preliminary Budget Study Session|3
Budget Process FY2022-23
FEBRUARY
2/16 CIP sent
to
Departments
for review
2/21 Payroll
Projection
Reports sent to
Departments
for review
Preliminary Budget Study Session|4
Budget Process FY2022-23
FEBRUARY MARCH
2/16 CIP sent
to
Departments
for review
2/21 Payroll
Projection
Reports sent to
Departments
for review
3/2 Payroll
Projections Due
3/6 Budget sent
to Departments
for FY2022-23
Projections &
FY2023-24
Requested
Appropriations
3/13 CIP Review
3/27 Budget
Projections &
Requests Due
3/30 Revenue
Estimates Due
Preliminary Budget Study Session|5
Budget Process FY2022-23
FEBRUARY MARCH APRIL
2/16 CIP sent
to
Departments
for review
2/21 Payroll
Projection
Reports sent to
Departments
for review
3/2 Payroll
Projections Due
3/6 Budget sent to
Departments for
FY2022-23
Projections &
FY2023-24
Requested
Appropriations
3/13 CIP Review
3/27 Budget
Projections &
Requests Due
3/30 Revenue
Estimates Due
4/13 Budget
sheets for
review
4/17 Budget
Request
Meetings
4/26 Budget
Summary for
5/1/23 Study
Session
Preliminary Budget Study Session|6
Budget Process FY2022-23
FEBRUARY MARCH APRIL MAY
2/16 CIP sent
to
Departments
for review
2/21 Payroll
Projection
Reports sent to
Departments
for review
3/2 Payroll
Projections Due
3/6 Budget sent
to Departments
for FY2022-23
Projections &
FY2023-24
Requested
Appropriations
3/13 CIP Review
3/27 Budget
Projections &
Requests Due
3/30 Revenue
Estimates Due
4/13 Budget
sheets for
review
4/17 Budget
Request
Meetings
4/26 Budget
Summary for
5/1/23 Study
Session
5/1 City Council
Preliminary
Budget Study
Session
5/9 Appropriation
Review with
Measure LV
Committee
5/10 Planning
Commission re-
view of
CIP Projects
5/22 Budget
Books for City
Council Review
Preliminary Budget Study Session|7
Budget Process FY2022-23
FEBRUARY MARCH APRIL MAY JUNE
2/16 CIP sent
to
Departments
for review
2/21 Payroll
Projection
Reports sent to
Departments
for review
3/2 Payroll
Projections Due
3/6 Budget sent to
Departments for
FY2022-23
Projections &
FY2023-24
Requested
Appropriations
3/13 CIP Review
3/27 Budget
Projections &
Requests Due
3/30 Revenue
Estimates Due
4/13 Budget
sheets for
review
4/17 Budget
Request
Meetings
4/26 Budget
Summary for
5/1/23 Study
Session
5/1 City Council
Preliminary
Budget Study
Session
5/9
Appropriation
Review with
Measure LV
Committee
5/10 Planning Co
mmission re-view
of CIP Projects
5/22 Budget
Books for City
Council Review
6/5 City
Council Study
Session
6/19 Adoption
of Budget
Budget Process
Five Year Financial Forecast
FY 23/24 Proposed Budget Overview
Next Steps
Preliminary Budget Study Session|10
Five Year Revenue Forecast Highlights
• Projecting a
4.0% revenue
growth,
averaged over
5 years
• Taxes make up
about 56% of all
General Fund
Revenues
• $2.4 Million of
FY 22/23
revenues
comes from
Measure LV
-
10 20
30 40
50 60
FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Millions
Taxes License & Permits Intergovernmental Charges for Services Fines & Forfeitures Use of Money & Property Transfers In Total Actuals Projected
GENERAL FUND REVENUES
Preliminary Budget Study Session|11
Property Tax Trends Highlights
• Largest tax
revenue – about
60%
• New housing
developments in
La Verne
• 4% revenue
growth, averaged
over 5 years
$-
$2
$4
$6
$8
$10
$12
$14
$16
$18
$20
FY
2018-19
FY
2019-20
FY
2020-21
FY
2021-22
FY
2022-23
FY
2023-24
FY
2024-25
FY
2025-26
FY
2026-27
FY
2027-28
Millions
Actuals Projected
Assumptions
• Consulted property
tax specialists
• Considered
historical data
• Home sales
decline
• Flattening of
median home
price
Preliminary Budget Study Session|12
Property Tax Breakdown
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
FY 19/20 FY 20/21 FY 21/22 FY 22/23
Comparison of Percent Change in
Net Taxable Assessed Values
La Verne LA County
*Includes any exemptions to assessed value
Preliminary Budget Study Session|13
Sales Tax Revenues Highlights
• 2nd largest tax
revenue –
about 20%
• Expecting slow
growth moving
forward – 2%
avg. over 5
years
$0
$1
$2
$3
$4
$5
$6
$7
FY
18/19
FY
19/20
FY
20/21
FY
21/22
FY
22/23
FY
23/24
FY
24/25
FY
25/26
FY
26/27
FY
27/28
Millions
Actuals Projected
Assumptions
• Economic
slowdown
• Rise in CA
unemployment
rate
*Does not include Measure LV Revenues
Preliminary Budget Study Session|14
Sales Tax Breakdown
For every $100,
you pay $10.25 in
sales tax…
STATE: 6%
• 5.0% - CA General Fund
• 0.5% - Local Revenue Fund
• 0.5% - Public Safety Fund
COUNTY: 2.5%
• 0.25% - Bradley-Burns
• 0.25% - Measure H
• 0.5% - Prop A
• 0.5% - Prop C
• 0.5% - Measure R
• 0.5% - Measure M
LOCAL: 1.75%
• 1.0% - Bradley-Burns
• 0.75% - Measure LV
Preliminary Budget Study Session|15
Measure LV & Guidelines Measure LV
Priorities
Tier 1
• Fund the City’s traditional
compensation model.
Costs associated with
annual salary adjustments,
health insurance
premiums, other related
benefit costs.
Tier 2
• Program or service
enhancements, reviewed
by Oversight Committee
and recommended to
Council.
• Emergency response
capabilities (personnel or
operational), unfunded
GF CIPs, level of
maintenance for streets,
sidewalks, etc.
• Measure LV was a 0.75% local sales and use tax
increase, approved by voters in March 2020. Estimated
to generate $4,920,000 in FY 2023-24.
• Used to maintain funding for general city services based on Guidelines passed by the City Council.
• Citizen Oversight Committee reviews spending of
revenues, and reviews potential Tier 2 expenditures with recommendation to City Council.
• Measure LV is vitally important to the City’s ability to operate, but it has to be conservatively managed to be
a sustainable funding source for the City.
Preliminary Budget Study Session|16
Sales Tax Trends|Measure LV What is
Measure LV?
• A 0.75% local sales
tax increase,
approved by
voters March 2020
• Used to maintain
funding for general
city services
• Citizen Oversight
Committee
reviews spending
of revenues
$-
$2
$4
$6
$8
$10
$12
1 2 3 4 5 6 7 8 9 10
Millions
Measure LV Sales Tax LV Employee Compensation Expenses Tier 2 Expenses Fund Balance FY 20-21 21-22 22-23 23-24 24-25 25-26 26-27 27-28 28-29 29-30 Preliminary Budget Study Session|17
Five Year Expenditure Forecast 1. STATUS QUO
• Personnel – No new
positions, COLAs; 3.5%
increases for LVFA, 3.0%
for all others
• Operational – Only
inflationary
GENERAL FUND EXPENDITURES
2. PREFERRED
• Personnel – Current &
Anticipated salary
negotiations
• Operational – Follows
historical trends
3. IDEAL
• Personnel – Status
Quo + 3% increases
• Operational – Status
Quo + 2.5% increases
$50
$52
$54
$56
$58
$48
$50
$51
$53
$54
$41
$46 $46 $47
$48
$49
$50
$35
$40
$45
$50
$55
FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 Millions
Ideal Preferred Status Quo
Preliminary Budget Study Session|18
Five Year Financial Forecast
$48
$47
$48
$49
$50$48 $48
$51
$53
$55
$44
$48
$52
$56
$60
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Millions
Status Quo
Expenses Revenues
$48
$50
$51
$53
$54
$47
$48
$51
$53
$55
$44
$48
$52
$56
$60
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Millions
Preferred
Expenses Revenues
$50
$52
$54
$56
$58
$48 $48
$51
$53
$55
$44
$48
$52
$56
$60
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Millions
Ideal
Expenses Revenues
Budget Process
Five Year Financial Forecast
FY 23/24 Proposed Budget
Next Steps
Preliminary Budget Study Session|20
General Fund Reserves Balances Fund Balance
Classification
• Committed –
amounts determined
by formal action by
City Council
(Fund
Balance Policy #216)
• Restricted –
specific purpose
stipulated by
legislation or external
resource providers
(donations,
contributions, SB1186)
• Assigned –
specific purpose
which do not meet
committed or
restricted criteria
(vacation/sick liability,
unexpected capital
improvements)
Fiscal Year 2022-23
Beginning Fund Balance @ 7-1-2022 $ 12,645,800
Resources 44,868,502
Appropriations (45,488,457)
Estimated Ending Fund Balance @ 6-30-2023 $ 12,025,845 Committed
Emergency Contingency 15% 1 7,082,915
Working Capital Reserve 5% 2,360,972
Restricted 331,744
Assigned
Benefit Obligations 1,921,914
Capital Projects2 328,300
1$619,955 from committed reserves for prior year encumbrances, police vehicles and partial year funding for new Police Clerk
2$171,700 from Assigned reserves for Lowell Brandt Park Playground Preliminary Budget Study Session|21
FY 2023-24 Proposed Budget Overview Scenarios
• Status Quo
• Preferred
• Ideal
Personnel Personnel Personnel
Operating Operating Operating
-
10 20
30 40
50 60
Cautious Status Quo Ideal
Expenditures Expenditures Expenditures
Millions
Personnel Operating
Status QuoStatus Quo Preferred Ideal
Revenue,
$48.2
Preliminary Budget Study Session|22
Personnel Changes/ Requests Overall
Vacancies:
• 15 FTEs
10 Full-Time
5 Part-Time
• $1,441,314
GF: $1,122,964
Other Funds:
$318,350
New Requests
• FTEs: 7
• $676,035
GF: $548,498
Other Funds:
$127,537
Administration ( )
Community Development
Police
Public Works
Community Services
Fire
No Vacancies
New Request/Upgrades:
3 Vacancies: $433,492
New Request/Upgrades:
9 Vacancies(5 PT): $610,929
New Request/Upgrades:
No Vacancies
New Request/Upgrades:
1 Vacancy: $187,054
New Request/Upgrades:
FTE 1
Amount $68,060
FTE 3
Amount $412,107
FTE 0
Amount $28,528
FTE 2
Amount $127,537
2 Vacancies: $209,839
New Request/Upgrades:
FTE 1
Amount $39,803
FTE 0
Amount $0
City Manager, City Clerk,
Personnel, Finance, Info Systems
Budget Process
Five Year Financial Forecast
FY 23/24 Proposed Budget
Next Steps
Preliminary Budget Study Session|24
Next Steps
• Council feedback and direction
• Status Quo Budget
• Preferred Budget
• Ideal Budget
• Staff will continue developing budget
• Staff will return for next Study Session on June 5th
• Budget Adoption scheduled for June 19th
Preliminary Budget Study Session|25
Questions
&
Comments