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HomeMy WebLinkAbout2016/06/07 - Agenda Packet - SpecialAGENDA CITY COUNCIL AND FIRE PROTECTION DISTRICT SPECIAL MEETING Tuesday, June 7, 2016 5:00 p.m. City Hall Tri-Communities Room 10500 Civic Center Drive Rancho Cucamonga, CA 91730 A. CALL TO ORDER: A1. Pledge of Allegiance A2. Roll Call: Mayor Michael Mayor Pro Tem Spagnolo Council Members Alexander, Kennedy and Williams B. COMMUNICATION FROM THE PUBLIC: This is the time and place for the general public to address the Fire Protection District and City Council on any item listed on the agenda. State law prohibits the Fire Board or City Council from addressing any issue not previously included on the Agenda. The Fire Board or City Council may receive testimony and set the matter for a subsequent meeting. Comments are to be limited to five minutes per individual or less, as deemed necessary by the Mayor, depending upon the number of individuals desiring to speak. All communications are to be addressed directly to the Mayor and not to the members of the audience. This is a professional business meeting and courtesy and decorum are expected. Please refrain from any debate between audience and speaker, making loud noises, or engaging in any activity which might be disruptive to the decorum of the meeting. C. ITEMS OF DISCUSSION: C1. DISCUSSION AND CONSIDERATION OF PROPOSED BUDGETS FOR FISCAL YEAR 2016/17 (The budget is available for review at the City Clerk’s Office, Biane Library, Archibald Library, the Senior Center at Central Park, and on the City’s website.) D. ADJOURNMENT I, Linda A. Troyan, City Clerk Services Director, of the City of Rancho Cucamonga, hereby certify that a true, accurate copy of the foregoing agenda was posted on June 2, 2016, per Government Code 54954.2 at 10500 Civic Center Drive, Rancho Cucamonga, California, and on the City’s website. ______________________________ Linda A. Troyan, MMC City Clerk Services Director, City of Rancho Cucamonga City of Rancho Cucamonga, California Fiscal Year 2016/17 Preliminary Budget Library Services Services to the Community Library Services Technology Library Services Services Adult Literacy Budget and Grants and Outreach Tech Centers Operations Special ecial Projects Services Website/Social Back 2 Basics Adult Budget Teen Services Children's Services g Staff Development Programs Programs Personnel Information Information Services Services Collection Collection -_- - Fiscal Year 2016/17 Preliminary Budget — Page 249 CITY OF RANCHO CUCAMONGA, CALIFORNIA Fiscal Year 2016/17 Preliminary Budget Capital Improvement Program Detail by Category Category/Project Description Funding Source Amount Fiber Optics Improvements Municipal Utility 100,000 Commercial Smart Meter Replacement Municipal Utility 375,000 Day Creek Blvd and Base Line Rd- Line Extension Municipal Utility 200,000 Foothill Blvd at Spruce Ave-Line Extension Municipal Utility 153,000 Haven Ave at 6th St Light Installation Municipal Utility 25,000 Municipal Utility Total: 941,500 Parks Central Park-Phase II Design Study Park Development 250,000 Central Park-Rubberized Surface Replacemet Park Development 80,000 Central Park-Trail Head Improvements Park Development 25,000 Etiwanda Creek Park- Phase II Park Development 300,000 LMD 4R Parks-Lighting Retrofits Phase III LMD 4R 135,000 Victoria Arbors Park-Rubberized Playground Surface Replacement LMD 2 140,000 Parks Total: 930,000 Railroad Crossings Arrow Rte at Railroad Spur-New Concrete Panels Gas Tax R&T 7360 75,000 (Continuation of Design with Construction funded) Hellman Ave at Metrolink Tracks- Widen Crossing (Continuation of Design with Construction funded) Transportation 1,050,000 Railroad Crossings Total: 1,125,000 Streets 6th St from Milliken to Charles Smith - Pavement Rehabilitation Gas Tax R&T 7360 35,000 9th St from Grove to Hellman-Pavement Rehabilitation Measure I 300,000 Arrow Rte East of I-15 freeway-Widening Gas Tax R&T 7360 5,000 I fiscal Y ur 2016 17 I'rclinninar\ l'agc 157 CITY OF RANCHO CUCAMONGA, CALIFORNIA Fiscal Year 2016/17 Preliminary Budget Financial Policies • Fire District Facilities Capital Repair The Fire District's fund balance committed for the Fire District facilities capital repair is hereby committed to a minimum goal of 50%of capital assets value comprised of construction in progress (excluding infrastructure), building improvements, and improvements other than building for public safety-fire activities. • Working Capital The City's General Fund balance committed for Working Capital is established at a goal of a minimum of 5% of the City's General Fund operating budget for the upcoming fiscal year. The Fire District's fund balance committed for Working Capital is established at a goal of a minimum of 50% of the District's operating budget for the upcoming fiscal year. • Self-Insurance The City's General Fund balance committed for payment for general liability claims primarily through the use of interest earnings on the reserve but not limited to such in the event of an unfavorable interest rate environment is established at a minimum goal of seven times the City's total yearly SIR for all types of insurance coverage. • Employee Leave Payouts The City's General Fund balance and the Fire District's fund balance committed for employee leave payouts as valued in accordance with the City's labor contracts as of the last day of the fiscal year. • PERS Rate Stabilization The City's General Fund and Fire District's fund balance committed to offset projected rate increases identified in the respective annual CaIPERS actuarial valuation for two fiscal years after the year of financial reporting and identified by the City's actuarial consultant for three more years for a total of five years' projection. • Booking Fees The City's General Fund balance committed to provide funding for an increase in the booking fees charged to the City by the County of San Bernardino in the event that backfill funding is not provided by the State of California. • Vehicle and Equipment Replacement The Fire District's fund balance committed for the replacement of fire safety vehicles and equipment as determined based on the District's replacement criteria is established at a minimum goal of 50% of District vehicle and equipment replacement value. I fiscal Ycar 2016'17 1'rclliudgct Page 265 L, • • : CITY OF RANCHO CUCAMONGA, CALIFORNIA Fiscal Year 2016/17 Preliminary Budget List of Acronyms ADA Americans with Disabilities Act HVAC Heating, Ventilating, and Air AQMD Air Quality Management District Conditioning BERT Business Emergency Response IAQ Indoor Air Quality Training IESBDC Inland Empire Small Business BYB2RC Bring Your Business 2 Rancho Development Center Cucamonga IPM Integrated Pest Management C.A.N.I.N.E. Campus Awareness, Narcotic KIDS Kids Interactive Discovery Space Intervention, Narcotic Education LED Light-Emitting Diode CAFR LMD Comprehensive Annual Financial Landscape Maintenance District Report PCI Pavement Condition Index CAL-ID RAN California Identification System PD Park District Remote Access Network PERS Public Employees Retirement CDBG Community Development Block System Grant PSVN Public Safety Video Network CERT Community Emergency Response RCLS Rancho Cucamonga Library Training Services CFD Community Facilities District RCMU Rancho Cucamonga Municipal CIP Capital Inprovement Project Utility CNG Compressed Natural Gas REGIS Rancho Enterprise Geographic CPI Consumer Price Index Information Systems CPR Cardiopulmonary Resusitation ROPS Recognized Obligation Payment CSD Community Services Department Schedule CVWD Cucamonga Valley Water District SANBAG San Bernardino Associated EIR Environmental Impact Review Governments ESRI Environmental Systems Research SBCERA San Bernardino County Employee Institute Retirement Association FLSA Fair Labor Standards Act SBOE California State Board of FTE Full Time Equivalent Equalization FY Fiscal Year SCE Southern California Edison GFOA Government Finance Officers SLD Street Lighting District Association TOD Transit Oriented Development GIS Geographic Information Systems TOT Transient Occupancy Tax GOTMD Greater Ontario Tourism VLF Vehicle License Fees Marketing District HdL Hinderliter de Llamas HHW Household Hazardous Waste HR Human Resources kcal Year 2W 6 17 I'reIlllllllaf\ Iiuc112et I' we 272 J CITY OF RANCHO CUCAMONGA, CALIFORNIA Fiscal Year 2016/17 Adopted Budget Description of Funds by Fund Type Fund # Fund Description GENERAL FUND 001 General Fund - The general operating fund of the City which accounts for all general tax receipts and fee revenue not allocated by law, Council policy or contractual agreement to other funds. General Fund expenditures include operations traditionally associated with activities which are not required to be accounted for or paid by another fund. OTHER GENERAL FUNDS 003 Reimb St/County Parking Cit - Established for the tracking of revenues and expenditures related to State and San Bernardino County surcharges on parking citations. 006 CVWD Reimbursements - Established as a clearing account for expenses and reimbursements associated with City performed street repairs within the City on behalf of Cucamonga Valley Water District. 008 County of S.B. Reimbursements - Established as a clearing account for expenses and reimbursements associated with City performed storm drain facility maintenance on behalf of the San Bernardino County Flood Control District. 016 Comm Dev Technical Services - Established to account for the City's General Plan Update Fee as well as funds that have been set aside for Economic and Community Development Special Services. 017 Law Enforcement Reserve - Established to account for the funding and use of the City's General Fund balance committed for public safety purposes. 018 Traffic Safety - Established to account for vehicle code fines collected to fund the City's contracted crossing guard services. 019 Info Technology-Development - Established to account for fees collected to fund the internal cost of providing information technology services for the Community Development Departments. 020 City Technology Fee - Established to account for fees collected to fund a future replacement of the City's land management system. 022 Mobile Home Park Program - Established to account for revenues and expenditures associated with the City's mobile home park inspection program. _ - I kcal Year 2O1(, 17 I>rcliminar\ I;udlget Page 27; CITY OF RANCHO CUCAMONGA, CALIFORNIA Fiscal Year 2016/17 Adopted Budget Description of Funds byFund Type Fund # Fund Description 188 Integrated Waste Management- Established to account for AB939 recycling fee revenues from the City's refuse haulers and can only be used for the City's Household Hazardous Waste Disposal program. Assembly Bill 939 is a law that was passed by the State of California that mandates that all cities divert a specified percentage of their solid waste from their landfills in accordance with established deadlines. 190 Prop 42-Traffic Congestion Mit - Established to account for gasoline sales tax revenue received from the State of California for transportation purposes, including city and county street and road repairs and maintenance. Proposition 42, a legislative constitutional amendment, permanently dedicated revenues from this sales tax on gasoline to transportation infrastructure needs. 194 Proposition 1B State Funding - Proposition 1B (Prop 1 B) provides state funding to cities and counties to fund the maintenance and improvement of local transportation facilities. The funding is allocated based on population. 195 State Asset Seizure - Established to account for the funds received from the State for the equitable transfer of forfeited property and cash in which the City directly participates in the law enforcement efforts leading to the seizure and forfeiture of the property. 196 CA Asset Seizure 15% - Established to account for 15% of State Asset Seizure (Fund 195) designated for the sole purpose of funding programs designed to combat drug abuse and divert gang activity pursuant to the provisions of Health & Safety Code Section 11489(b)(2)(A)(i). 197 Federal Asset Seizure - Established to account for the funds received from the Federal government for the equitable transfer of forfeited property and cash in which the City directly participates in the law enforcement efforts leading to the seizure and forfeiture of the property. 198 Citywide Infrastructure Impry - This fund was established to account for reimbursement revenue received from various local, State and Federal agencies and utilities for capital improvement projects completed in the City. The accumulated funds will be used for future capital improvement projects as authorized by the City Council. I iscal Year 21116 17 PreliminarN Page 279 ! CITY OF RANCHO CUCAMONGA, CALIFORNIA Fiscal Year 2016/17 Adopted Budget Description of Funds by Fund Type Fund # Fund Description INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. 712 Equip/Vehicle Replacement- Established to account for the accumulation of user charges to various City departments and the costs associated with replacing the City's vehicles and equipment. 714 Comp Equip/Tech Replcment Fund - Established to account for the accumulation of resources and the costs associated with replacing the City's data processing equipment and maintaining current technology. Fiscal Year 2016/17 Prcliminary Budget - Page 286 •' City of Rancho Cucamonga Fiscal Year 2016/17 Proposed Budgets Budget Study Session June 7, 2016 A Year of Transitions •Transition –“A movement, development, or evolution from one form, state, or style to another.” •FY 2016/17 is definitely a year of transition •Rancho Cucamonga has finally reached a point where, from FY 2016/17 forward, we should experience true new growth (as opposed to regaining ground lost during the recession) A Year of Transitions •Property tax, minus the new post-RDA taxes, will surpass our pre-recession peak of $4,874,790 in FY 2008/09 •Sales tax is projected to reach $28,854,580, just slightly higher than our pre-recession peak of $28,617,960 in FY 2007/08 A Year of Transitions •We are challenged by sustained growth in fixed costs •Electricity and natural gas rates have increased more than 6% in the last 5 years, despite becoming more energy-efficient •Utilities are some of our biggest fixed costs to operate facilities •City Council directed staff to explore opportunities to reduce fixed costs whenever possible A Year of Transitions •Rancho Cucamonga has invested in Solar RC •Investment in solar infrastructure projects are starting to yield net budget savings from this very first full year of operations, and will only grow in the future $100,000 $250,000 $400,000 $550,000 $700,000 Energy Costs w/o Solar Energy Costs w/Solar Solar RC Expansion Project Energy Cost w/o Solar vs. with Solar FY 2016/17 Savings: $129,307 Energy Cost Debt Repayment A Year of Transitions •As we enter this year of transition, it is important to: •Rethink priorities •Develop new habits of conservation •Create a new normal •Staff is working hard to ride the wave of transition and develop intentional new habits that will ensure success and permanence A Year of Transitions •Some examples of transitions and changes coming to Rancho Cucamonga include: •Replace use of Gas Tax funds with General Fund dollars to cover budget deficits in Street Light Districts •Purchasing City street lights from Southern California Edison to save the City an estimated $1.3 million in cost for electricity each year •Replacing soon to be terminated leased space for Family Sports Center with a new City Gymnasium located off Rochester FY 2016/17 Budget Changes •Top priorities for FY 2016/17 •Implementation of 2015 Economic Development Strategic Plan •Focus on critical infrastructure projects •Improvements to public safety and critical community services •Continued development of technology and workforce reorganization •Priorities were carefully developed to be consistent with the City Council Goals Economic Development •In March 2016, Rancho Cucamonga’s unemployment rate continued to decrease even more to 4.2% •Anything below 5% is considered full employment •Current rate is less than half of where we were at this time four years earlier •In the first four months of 2016, we issued 1,700 building permits, an increase of 16% over the same time period in 2015. •Overall, local economic development is picking up solidly Economic Development •Examples of the activity, innovation and growth occurring at the local level: •Two hotel projects are in the grading or construction phase •A new Stater Bros. supermarket is coming soon to the NW corner of Base Line Road and Day Creek Boulevard •Construction is underway for additional commercial space in the Vons/Trader Joe’s shopping center at Haven and the 210 freeway Economic Development •Mixed use multi-story housing projects are currently going through staff review, design review, or Planning Commission approval for Hermosa/Foothill, Etiwanda/ Foothill, and East/Foothill •Haven City Market tenant improvement plans were submitted to the Building and Safety Department and are currently in review (former K-Mart site) •All approvals have been granted for a new commercial center to replace the old China Buffet at Foothill and Spruce Avenue •GOALS soccer complex lease agreement was recently approved by the City Council Economic Development •All of these developments help support the strategies contained in the City’s Economic Development Strategic Plan approved last March 2015 •Five target industries identified: 1.Health Care and Social Assistance; 2.Transportation, Warehousing, and Wholesale Trade; 3.Retail, Accommodation/Food Services; 4.Manufacturing; and 5.Professional, Scientific, and Technical Services Infrastructure •As the City transitions toward being a largely built- out community, our infrastructure is also transitioning into one that is slowly aging •More frequent and regular maintenance required •New facilities will require their own level of maintenance •$197,000,000 in reserves set aside for maintenance and repair as well as construction of future facilities were seized by the State of California when it eliminated Redevelopment Infrastructure •When the current economic recovery first began, City Council challenged staff to start replacing those reserves •Rebuilding is in progress •Budgeted General Fund reserve contributions: •FY 2013/14: $508,680 •FY 2014/15: $607,480 •FY 2015/16: $700,000 •FY 2016/17: $1,000,000 •At this rate, it would take over 100 years to replace what was lost Infrastructure •Key infrastructure projects for FY 2016/17: •Construction of Base Line / I-15 interchange •Replacement of leased Family Sports Center with the City’s own Gymnasium ($15 million) •Installation of $3.9 million Cucamonga Storm Drain Upper Phase 3 •Undergrounding of utilities on Arrow Route ($724,000) and Base Line Road ($559,000) •Completion of Los Amigos Park in Southwest Rancho Cucamonga ($3.9 million) •$850,000 Extreme Makeover of the Animal Center Infrastructure •Replacement of flooring at Central Park in halls and rooms ($310,000) •Completion of second floor of Biane Library at Victoria Gardens ($2.5 million) •$625,000 for concrete replacement •$255,000 to fill in missing pieces of sidewalk •$510,000 for tree maintenance contract •$200,000 in new or upgraded ADA ramps citywide •$250,000 Traffic Center Management Upgrade (citywide) Infrastructure •Single largest infrastructure component the City is responsible for is the network of streets inside our incorporated boundaries •Traditionally, largely maintained by all local governments using gasoline tax revenues, which are declining Infrastructure •Rancho Cucamonga’s goal for local street maintenance is no less than a 79% pavement condition index (PCI) and more towards our goal of 85% •California roads are at a 66% PCI Infrastructure •City is utilizing all $3,552,840 in projected Gas Tax revenues, along with $2,762,470 in projected Measure I revenues, for local streets overlay and slurry seal programs; minor sidewalk projects; and pavement management •Without an increase in Gas Tax revenue, Rancho Cucamonga will also slowly fall behind the infrastructure curve like so may other agencies have in the last 5 to 7 years •City is partnering with the League to address issue with the Governor and Legislature Public Safety/Community Services •Utilization of technology as force multiplier •Automated License Plate Readers (ALPRs) •Public Safety Video Network (PSVN) •K-9s •Electric motorcycles •Public safety has always been the City Council’s highest priority and remains so today Public Safety/Community Services •Part II crimes decreased 12% (amazing!) •Part I crimes increased 8% (much lower than comparable size agencies) •Increase is largely due to changes in methodology of what is counted and how certain things are classified •In 2015, Deputies took more reports and made more arrests, on a lower volume of calls for service, than at any time in the last three years Public Safety/Community Services •Long term goal is to keep deputy to citizen staffing ratios stable •For FY 2016/17, staff is recommending hiring one additional Deputy Sheriff and one Sheriff Services Specialist (SSS) out of current resources •City is applying for a COPS Hiring Program Grant to bring on an additional three Deputies in FY 2016/17 •Matching funds are budgeted in anticipation of approval Public Safety/Community Services •Goal is to add additional Deputies in the future •This is a challenge with the Sheriff’s Contract budget in the General Fund increasing from $31,530,550 to $33,088,530 largely due to salary increases and retirement cost increases Public Safety/Community Services •FY 2016/17 Proposed Budget includes funding for another bus for Senior Transportation Programs as well as funding to expand our special needs programs •City’s highly successful 24-hour Kitten Nursery will be continuing again this year Personnel/Technology •Rancho Cucamonga (like other cities) delivers the vast majority of its services through our personnel •Single largest expense as we are a service-based business •During the Great Recession, the City’s workforce shrank by 25% or over 110 full time equivalent positions •Coming out of the recession, City Council directed staff to focus on moderating growth in new personnel to help control personnel related costs Personnel/Technology •City accomplished this goal through •Continued implementation of new technology •Strategic personnel decisions •Reprioritizing existing resources •Ways we are leveraging new technologies to serve as force multipliers across the organization: •Accela Automation building permit and Electronic Document Review process •Implementing additional modules in OneSolution, the City’s finance system, to automate processes Personnel/Technology •Expanding PSVN and ALPR systems •Implementing new ESRI software to visualize building projects in 3-D to ensure a better fit with surroundings •Upgrading to a new voice over internet protocol (VoIP) telephone system •Installation of public facing high speed internet access at Biane and Archibald Libraries and improved internet speed across the entire City network •Development of business intelligence and spatial reference platforms for all enterprise applications to allow better data visualization and analysis Personnel/Technology •Made possible by modest, sustained revenue growth, the FY 2016/17 Proposed Budget continues the trend of improving services to the community through strategic personnel decisions •Included in the FY 2016/17 Proposed Budget is a modest set of personnel changes and reclassifications at a total cost to the City of slightly over $300,000, including salary and benefits •Reflects the addition of a net 3.5 full-time and 14 part- time positions •Concentrated in Public Works and Administrative Services Operating Budgets The operating budgets for Rancho Cucamonga are comprised of the following: •City General Fund $77,501,290 •Fire District Operational Funds $33,242,760 •Library Fund $ 4,730,730 In addition to the operating budgets, the complete City budget includes other special funds which are restricted from use for general municipal operations. The total budget for Special Funds (including CIP) is $100,089,170. The Fire District’s Capital Fund budget is $24,946,730. City General Fund –Key Revenues •City General Fund budget comprised of multiple sources including seven key revenues (91.6% of total General Fund revenues) 1.Sales tax 2.Vehicle license fees (VLF and Motor Vehicle in Lieu) 3.Franchise fees 4.Property tax (includes post-RDA property tax and property transfer tax) 5.Development fees 6.Business licenses 7.Transient occupancy taxes City General Fund Revenues $20,000,000 $22,000,000 $24,000,000 $26,000,000 $28,000,000 $30,000,000 Sales Tax $13,000,000 $14,000,000 $15,000,000 $16,000,000 $17,000,000 $18,000,000 VLF and Property Tax In-Lieu of VLF $5,000,000 $5,500,000 $6,000,000 $6,500,000 $7,000,000 $7,500,000 Franchise Fees $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 Property Taxes* *Includes Property Transfer Tax City General Fund Revenues $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 Development Fees $1,750,000 $1,900,000 $2,050,000 $2,200,000 $2,350,000 $2,500,000 $2,650,000 $2,800,000 Business Licenses $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 Transient Occupancy Taxes City General Fund Operating Budget $50,000,000 $55,000,000 $60,000,000 $65,000,000 $70,000,000 $75,000,000 $80,000,000 $85,000,000 Changes in Operating Budget -City General Fund $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 Reduction in Usage of Reserves -City General Fund Economic Circumstances Rsrv Interest from Fund 025 Insurance Reimb from Fund 025 Fire District and Library Revenues •Principal revenue source is property tax; fluctuates based on: –Changes in property tax assessments –New secured properties being added to the tax roll •Typically property tax changes lag one to two years behind other revenue changes •Fire District post-RDA property tax revenues are allocated between the District’s General Fund and the Capital Reserve Fund to provide for current operational needs Changes in Operating Budgets and Reserves $20,000,000 $22,000,000 $24,000,000 $26,000,000 $28,000,000 $30,000,000 $32,000,000 $34,000,000 $36,000,000 Changes in Operating Budget -Fire District $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 Reduction in Usage of Reserves -Fire District $3,500,000 $3,700,000 $3,900,000 $4,100,000 $4,300,000 $4,500,000 $4,700,000 $4,900,000 Changes in Operating Budget -Library Fund $- $50,000 $100,000 $150,000 $200,000 $250,000 Use of Library Reserves Operating Budget Analysis: Fire District •FY 2016/17 Fire District Operating Budget: $33,242,760 •A $1,194,310 or 3.7% increase from prior year •No use of reserves for the operating budget •Continues to redistribute operating expenses in various areas to improve accountability and transparency •No increase in CFD assessments for five years in a row •Reflects District’s commitment to maintaining rates and, where possible, to reduce rates in a prudent manner •Suspend Fire Inspection Fees again Operating Budget Analysis: Fire District •Applied the California Municipal Health Financial Diagnostic to the Fire District for the first time •Improves accountability and transparency •Fire District is financially stable and healthy Operating Budget Analysis: Library •FY 2016/17 Library Budget: $4,730,730 •A $237,550 or 5.3% increase from prior year •Increases funding for Children’s Programming Fund •Maintains funding for books and materials for adults and children at both libraries •Continues successful entrepreneurial endeavors to support operating budget City Operating Budgets City General Fund, Library Fund, and Fire District Operational Funds Public Safety: 59.0% * *A healthy city typically has between 50% and 70% of its budget dedicated to public safety. An unhealthy city is in excess of 70%. 2.7%2.0% 10.7%2.4% 0.7% 4.5% 2.3% 9.5% 2.1% 4.3% 30.1% 28.9% Animal Care & Services Governance Admin. Services Building & Safety Community Development Community Services Engineering Services Public Works Services Planning Library Police Fire Special Districts •There are 38 special assessment districts in the City; most created prior to Prop 218 •Continuing challenge: West-side Districts •Measure A rejected •City Council approved: •A series of one-time expenditures of General Fund capital reserves designed to yield savings over time •Provided a General Benefit Equivalent payment to PD 85 and LMD 1; capped to provide equity with the East-side Districts Special Districts •Need to address long-term fiscal stability of PD 85 (Heritage and Red Hill Parks), LMD 1 (8 parks and various green spaces/trails), and SLD 2 (local street lights) •Implementation of Council-approved changes are not yet complete •Rebid landscape contracts and reduce personnel costs; required negotiations with labor group in progress •Over the next 5 to 10 years, recently approved Empire Lakes mixed use project will contribute in excess of $400,000 annually to the reserves of these districts Special Districts •Together, these changes will help stabilize these districts for the next several years at a “C-” level of service •A new approach will eventually be needed to ensure fiscal stability for the west side parks and landscape districts •In the meantime, a West-side Citizens’ Oversight Committee was formed and has begun its work reviewing the PD 85, LMD 1, and SLD 2 budgets, including revenues and expenditures Special Districts •Overall, City is committed to ensuring revenues and expenses remain balanced; however, all recurring costs such as water, electricity, and contract services, must be covered •Recommended changes for FY 2016/17 include: •LMD 2: Increase of 2.41% •LMD 3B: Decrease of 20% (commercial and industrial property owners) •LMD 4R: Increase of 2.41% •LMD 6R: Increase of 2.41% •CFD 2000-03: Increase of 6% Special Districts •List of fiscally-troubled districts has dwindled as the City has addressed and is addressing many of the major ones •Still work to do in the future •LMD 7 remains in a deficit position •Rate increases in this district will require property owner consideration in the future Fiscal Summary •Proposed FY 2016/17 Budget is a product of past and continuing fiscal discipline enhanced by a recovering economy •Following is a summation of all FY 2016/17 City budgets: •City General Fund $ 77,501,290 •Library Services $ 4,730,730 •Fire Protection District $ 58,189,490 •Special Funds (including CIP)$100,089,170 Conclusion •Rancho Cucamonga remains committed to maintaining its more than 30 year tradition of fiscal stability and providing the highest quality services to its customers within budgetary constraints •To ensure a vibrant and healthy community, the City must maintain a comprehensive suite of community services, guided by the City Council Goals as well as the City’s established Vision Statement, Mission Statement, and Values Conclusion •Looking ahead, we need to plan as carefully for the last phases of the City’s development as those before us did for the first 39 years •Ensure that our high development standards are continued and that long-term fiscal sustainability of the organization remains at the forefront Any Questions or Comments?