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?