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FY-2020-2021-Budget.Pdf Table of Contents Fiscal Year 2020-2021 INTRODUCTION City Manager’s Message…………………………………………………………………………………………………………1 City Council Budget Resolution………………………………………………………………………………………………4 La Puente City Council………………………………………………….…………………………………….…………………..6 Organizational Structure…………………………………………………………………………………………………………7 La Puente at a Glance……………………………………………………………………………………………………………..8 Departmental Indicators…………………………………………………………………………………………………………12 GUIDE TO THE BUDGET What is the Budget?...............................................................................................................................................13 Budget Process……………………………………………………………………………………………………………………….14 Fiscal Policies…………………………………………………………………………………………………………………………..15 Summary of Estimated Fund Balances……..……………………………………………………………………………..16 Personnel Summary………………………………………………………………………………………………………………..18 Budget in Brief………………………………………………………………………………………………………………………..19 5-Year Fund Balance Projection……………………………………………………………………………………………...20 REVENUE SUMMARY Revenue Sources…………………………………………………………………………………………………………………….21 Revenue Details……………………………………………………………………………………………………………………...23 EXPENDITURE SUMMARY Budgeted Expenditure by Type……………………………………………………………………………………………..29 Budgeted Expenditure by Fund……………………………………………………………………………………………..31 Gann Appropriations Limit…………………………………………………………………………………………………….35 GENERAL GOVERNMENT City Council….………………………………………………………….…………………………………………………………….37 City Manager’s Office…………………………………………………………………………….……………………………...41 City Clerk……………………………………………………………………………………………………………………………….45 PEG Access Fund…………………………………………………………………………………………………………………...49 ADMINISTRATIVE SERVICES Financial Services…………………………………………………………………………………………………………………...53 Human Resources/Risk Management…………………………………………………………………………………….57 General Services……………………………………………………………………………………………………………………..61 Table of Contents - continued Fiscal Year 2020-2021 PUBLIC SAFETY Public Safety Services……………………………………………………………………………………………….….……………65 Supplemental Law Enforcement……………………………………………………………………….…………..…………..69 JAG Grant Fund……………………………………………………………………………………………………….………………..73 Code Enforcement……………………………………………………………………………………….……………………………77 Emergency Preparedness Services…………………………………………………………………….……………………...81 Animal Services…………………………………………………………………………………………………………………………85 DEVELOPMENT SERVICES Public Works Services……………………………………………………………………………………………………………….89 Measure W Fund………………………………………………………………………………………………………………………93 AQMD Fund……………………………………………………………………………………………………………………………..97 Engineering Services……………………………………………………………………………………………………………….101 Streets-Gas Tax Fund………………………………………………………………………………………………………………105 Measure M Fund…………………………………………………………………………………………………………………….109 Measure R Fund…………………………………………………………………………………………………………………….113 Proposition A Fund………………………………………………………………………………………………………………..117 Proposition C Fund………………………………………………………………………………………………………………..121 Series 2019A Debt Service Fund…………………………………………………………………………………………….125 Series 2019B Debt Service Fund……………………………………………………………………………………………..129 Transportation-Capital Projects Fund……………………………………………………………………………………..133 Planning and Zoning Services…………………………………………………………………………………………………137 Building and Safety Services…………………………………………………………………………………………………...141 Housing and Community Services………………………………………………………………………………………….145 CDBG Fund……………………………………………………………………………………………………………………………..148 CalHome Fund,……………………………………………………………………………………………………………………….150 Parks……………………………………………………………………………………………………………………………………….153 Measure A Safe Parks Fund…………………………………………………………………………………………………….156 Lighting and Landscape Maintenance District Fund……………………………………………………………...158 COMMUNITY SERVICES Recreation Services………………………………………………………………………………………………………………...161 Youth Learning Activity Center……………………………………………………………………………………………….165 Senior Services………………………………………………………………………………………………………………………..169 Community Promotions………………………………………………………………………………………………………….173 Table of Contents - continued Fiscal Year 2020-2021 PROPRIETARY FUNDS Sewer………………………………………………………………………………………………………………………………………177 Equipment Replacement Fund………………………………………………………………………………………………..181 Vehicle Maintenance and Replacement Fund…………………………………………………………………………185 SUCCESSOR AGENCY Successor Agency…………………………………………………………………………………………………………………...189 CAPITAL IMPROVEMENT PROGRAM CIP Overview…………………………………………………………………………………………………………………………..193 CIP by Project………………………………………………………………………………………………………………………….195 CIP by Fund…………………………………………………………………………………………………………………………….197 Summary of Capital Improvement Projects…………………………………………………………………………….199 DESCRIPTION OF FUNDS Description of Funds………………………………………………………………………………………………………….……201 DEBT SUMMARY Debt Summary……………………………………………………………………………………………………………………...205 GLOSSARY Glossary……………………………………………………………………………………………………………………………….207 Glossary of Acronyms………………………………………………………………………………………………………….213 City Manager’s Message Fiscal Year 2020-2021 Dear Honorable Mayor, Members of the City Council and Citizens of La Puente, It is with great pleasure that I submit to you the adopted operating budget and capital improvement program for the fiscal year ending June 30, 2021. These documents work in tandem to provide a financial plan for the upcoming year and an authorization for the use of public resources. The combined expenditure budget for all City funds totals $35.4 million, including $12.1 million for capital projects. Like most communities across the nation, La Puente is facing unprecedented economic challenges as a result of the COVID-19 pandemic. The months-long shuttering of local businesses based on public health guidelines has had an inordinately negative impact on tax revenues, both in the General Fund and Special Revenue Funds. The City is currently facing a substantial reduction in available resources, and the future trajectory of its funding sources remains uncertain. Budgeting in the face of such obstacles has required a sophisticated response by City Council and staff. Working in conjunction with the community, the City has evaluated all categories of expenditures, and has prioritized essential services that keep La Puente safe, healthy, and clean. GENERAL FUND BUDGET The General Fund, which finances the majority of the City’s day-to-day operations, is expected to bear the largest impact of the economic downturn. Sales and Use Tax is projected to experience a 22% decline in the fiscal year 2020-2021. Property Tax, which contributes 40% of the General Fund’s revenue, remains stable at the present time. If recessionary conditions are prolonged and cause a reduction in real estate values, however, this funding source may also generate less revenue. Overall, General Fund revenues are projected to see a 2% decrease from the estimated actual totals for the prior fiscal period. Total operating expenditures in the General Fund are $15,267,400 and capital expenditures are budgeted at $1,404,900. This represents a 8% increase from the budget for fiscal year 2019-2020. Most of this increase is spurred by reallocation of wages and benefits related to maintenance of La Puente Park from the Lighting and Landscape Maintenance District Fund, which has been relied upon heavily in prior years, FY 2020-21 General Fund Revenue $15,267,400 FY 2020-21 General Fund Property Tax $ 6,667,300 Operating Expenditures Sales Tax $ 4,676,500 $15,267,400 Other Tax $ 1,409,100 General Government$ 3,382,300 Licenses & Permits $ 645,500 Public Safety $ 8,451,800 Fines & Forfeitures $ 280,000 Development Services$ 1,570,600 Use of Money $ 120,000 Recreation Services$ 1,792,500 Intergovt $ 67,500 Transfers Out $ 70,200 Charges for Service $ 824,300 Total $ 15,267,400 Other Financing Sources $ 577,200 Total Revenues $ 15,267,400 1 SIGNIFICANT TRENDS • Increase in Public Safety Costs — The City’s most important priority continues to be the safety of our residents, businesses and visitors. With recent gang violence and civic unrest, law enforcement services are more vital than ever. The budget allocation for the Public Safety Services includes a 6% increase in annual costs for the Los Angeles Sheriff Department (LASD) contract. • Changes in Personnel — Total personnel costs for fiscal year 2020-2021 are projected at approximately $6.4 million dollars, which is $1.2 million dollars more than the previous fiscal year and a 8.6% overall increase. Personnel costs represent 18% of total City expenditures, a significantly lower proportion than that of other municipalities. The addition of a full time Park Maintenance Worker position is an investment in the long- term success of the newly renovated La Puente Park. BALANCING THE BUDGET Both City Council policy and prudent management practices dictate that the City adopt a balanced budget each year, in which expenditures do not exceed revenues. Given the declining revenues contained within the fiscal year 2020-2021 budget, several areas were selected for strategic cost reductions, totaling almost $126,000: • Special Events (Community Promotion) - Due to social distancing protocols from public health authorities, many public events may be cancelled. • Special Events (Public Safety) - Reduction in Sheriff Department fees for policing special events. • Contract Services (Public Works) - Reduction in traffic control services for special events. • Community Outreach - Spotlight is published online and available at City facilities - reduced mailing. Fund balance reserves were not utilized for the purpose of balancing this budget, LONG-TERM
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