EQUIPMENT LEASE PURCHASE
WITH
BANC OF AMERICA
Rekha Nayar, Finance Director
Sarah Hollenbeck, Managing Director, PFM
Financial Advisors LLC
June 13, 2023
Proposed Fleet Purchase
2 Description Amount
Fire
Ladder Truck $2,268,000
F550 SD 305,900
Type I Apparatus 1,016,025
Type I Apparatus 1,016,025
Subtotal 4,605,950
Public Works
10 Wheeler 250,000
Subtotal 250,000
Accessories & Fees 144,050
Total $5,000,000
• The City needs to purchase five new/
replacement vehicles in FY2023 at a total cost of
$5 million
• Financing these purchases will maintain
available budget for other needed General
Fund fleet units
Financing Overview
• Lease financing with Banc of America
Public Capital Corp: $5M
Interest Rate: 3.96% (locked through June
27th)
Interest amount: $766k
Transaction cost estimate at $64.5k
• To be paid semiannual installments of
$831k
• Term: 7 years, FY2023-24 to 2029-30
3 Documents to Be Approved
4 • Resolution Authorizing Execution of Master
Equipment Lease
• Resolution Authorizing City Manager to
Purchase City Vehicles and Equipment
• Master Equipment Lease Purchase
Agreement
• Escrow and Account Control Agreement
Timeline
5 • June 13 – City Council Authorization to
approve transaction and related
documents
• June 23 – Closing of financing, delivery
of funds
• Place order in June 2023
Seagrave Ladder Truck build 18-24
months
Ford F-550 SD build 8-12 months
Type 1 Apparatus build 15-18 months
CONTACT(S)
Rekha Nayar,
[email protected]
FY 2023-24 Proposed Budget
Mike Malone, City Manager
Rekha Nayar, Finance Director
June 13, 2023
Proposed Budget Revenue &
Expenditure (All Funds)
FY 2023-24
• City totally manages 101 Funds
Proposed Budget page 13 & 14
(In Millions) Adopted
FY 2022-23
Proposed
FY 2023-24
Revenues 279.02$ 297.50$ 18.48$ 6.6% Expenditures 290.55 302.73 12.17 4.2% Total (11.53) (5.23)
Difference
Amt %
2 General Fund
Proposed Budget Expenditure
FY 2023-24
3 General Fund
Proposed Revenue & Expenditure
FY 2023-24
Proposed Budget page 21 & 30
4 General Fund Budget
FY 2022-23 Adopted vs FY 2023-24 Proposed
Proposed Budget page 21 & 30
5 Property Tax 37.20$ 39.95$ 2.75$ 7.4% Sales Tax 39.93 38.98 (0.95) (2.4%)
Other 33.77 35.24 1.48 4.4%
Program Revenues 19.71 18.65 (1.06) (5.4%)
Revenue (Excluding Measure P) 130.61$ 132.82$ Police 57.96 57.89 (0.07) (0.1%)
Fire 33.45 32.94 (0.51) (1.5%)
Public Works 10.04 10.43 0.39 3.9%
Planning & Development 6.59 6.62 0.03 0.5%
Administration 12.48 14.79 2.31 18.5%
Citywide 9.18 10.12 0.94 10.3%
Expenditures 129.69 132.78
Net (Revenue-Expenditure) 0.92$ 0.03$
(In Millions) FY 22-23
Adopted
FY 23-24
Proposed
Difference
AMT %
General Fund by Department
Increase Proposed (amount over $100K)
6 General Fund Five Year Forecast
(excluding Measure P)
(In Millions)
Revenue/Transfers in 130.61 132.82 135.33 138.23 142.88 147.88 Expenditures/Transfers Out 129.69 132.78 133.68 138.03 142.99 148.15 (Deficit)/Surplus for Year 0.92 0.03 1.65 0.20 (0.11) (0.26) Available Ending Reserves
excluding Measure P $ 21.50 $ 24.34 $ 25.99 $ 26.19 $ 26.08 $ 25.82 % Funded 17% 18% 19% 19% 18% 17%
General Fund Five Year Trends through Fiscal Year 2027-2028 FY 2027-28
Projected
FY 2023-24
Proposed
FY 2024-25
Projected
FY 2022-23
Adopted
FY 2025-26
Projected
FY 2026-27
Projected
Proposed Budget page 16 & 17
7 FY 2023-24 Proposed FTE changes
Proposed Budget page 12 & 137 - 150
8 Department Position Title FTE change
Police Add Administrative Manager 1
Police Freeze Police Officer -1
Information Technology IS Support Tech II 1
Housing Adding Housing Specialist I/II 1
General Fund & Housing
Responses from study session
• MI CFD alternatives to be presented to council in Sept 2023
• Main street request for $100K will be proposed from
ARPA reallocation
• City’s fleet has 16 motorcycles. Proposed budget has 2 for replacement.
9 Responses from study session - Dredging
Marina Dredging history and way forward:
Restructured loan of $18.8 m in 2000
City is repaying $700K till 2042
Dredging Project History
2020: 50,000 Cubic Yard (CY) Project ($1.2M)
2017: 20,000 CY Dredging Project ($556k)
2015: 53,000 CY Project ($1.1M)
2013: 65,000 CY Project ($1.04M)
Future Needs
Short-term: $750k for basin entry and fuel island emergency dredge
Mid-term: Working with F3 of 5 Year Sustainability Plan 10 Responses from study session
Economic Development in Proposed budget:
Moving development projects forward
Acquisition of school sites from VCUSD
Disposition of city-owned property
Continued Mare Island conveyance, administration, and special assignment implementation
Business attraction and retention
Implementation of the Economic Development Strategic Plan Grant implementation
11 Conclusion
• City continues to maintain a
structurally balanced General Fund
budget
• Vacancy savings of $7.1 mil has been
utilized to balance the budget
• Approved budget goes into effect on
July 01
st, 2023
12 CONTACT(S)
Mike Malone: [email protected]
Rekha Nayar: [email protected]
13