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General Fund Adopted Budget Fy2017-2018

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CITY OF WOODLAND ADOPTED BUDGET FISCAL YEAR 2017-2018 CITY OF WOODLAND FISCAL YEAR 2017-2018 ADOPTED BUDGET MEMBERS OF THE CITY COUNCIL Angel Barajas, Mayor Enrique Fernandez, Mayor Pro Tempore Tom Stallard, Council Member Xochitl Rodriguez, Council Member Skip Davies, Council Member STAFF PREPARED BY Paul Navazio, City Manager Kim McKinney, Finance Officer Kim McKinney, Finance Officer Evis Morales, Senior Analyst Ana Gonzalez, City Clerk Lynn Johnson, Senior Analyst Kara Ueda, City Attorney Rachael Smith, Human Resources Analyst II Dan Bellini, Police Chief Rebecca Ramirez, Fire Chief Ken Hiatt, Community Development Director Greg Meyer, Public Works Director Greta Galindo, Library Services Director Christine Engel, Community Services Director The Mission of Woodland is….. The City of Woodland will create and sustain community vitality by: Providing quality services, programs and facilities Safeguarding our community Promoting community involvement Planning for our City’s future TABLE OF CONTENTS Manager’s Transmittal City Manager’s Proposed Budget Transmittal Memorandum…I-IX 1. City Council Priorities Goals…………………………………….1-15 2. Budget Preparation Process………………………………….16-19 3. Budget Summary…………………………………………………….20-38 4. General Fund 5-Year Forecast………………………………..39-47 5. City Organization Organizational Chart……………………………………………………48 Approved FTEs…………………………………………….…………49-53 6. Department Summaries Administrative Services………………………….………………54-63 Community Development……………………….……………..64-79 Community Services……………………………………………...80 -86 Police …………………………………………………………………….87-95 Fire ………………………………………………………………………96-102 Library…………………………………..…..……………………….103-108 Public Works………………………………..………….………...109-126 7. Capital Improvement Program Budget…………..…..127-218 8. Debt Service Schedule……………..……………………..…………219 9. Appendices Financial Policies…………………………………………………….…220 Investment Policy…………….…………………………………221-226 Glossary……………………………………………………………..227-231 July 1, 2017 Honorable Mayor and Members of the City Council: Presented herein is the City’s Adopted Budget for fiscal year 2017/2018. The adopted spending plan totals $158.24 million, supporting city operations ($111.13 million), capital projects ($26.55 million) and debt service obligations ($20.56 million) and represents an increase of 1.5% from last year’s adopted budget. Consistent with previous years, costs associated with the City’s investment management function ($90,000) are not shown as expenditure appropriations, but are instead netted against total investment income for the fiscal year. General Fund $49,148,886 Enterprise Funds 56,877,132 Special Revenue Funds 13,899,630 Internal Service Funds 16,662,099 Capital Funds 14,527,250 Debt Service Funds 6,262,379 Successor Agency 867,157 Total $158,244,533 The budget includes a set of specific funding recommendations totaling $2,191,256, including $1,999,456 in one-time funding and $195,800 in ongoing budget augmentations, and supports a staffing level of 296 full-time equivalent positions. This staffing level represents a net increase of 2 position over the prior year, and remains 81 positions (21%) fewer than pre-recession staffing levels of FY2008/09 budget. The General Fund budget, totaling $49.15 million, as adopted, represents an increase of $1.8 million over the prior year, with $1.62 million representing one-time funding allocations from available excess General Fund reserves. The overall budget, including specific funding recommendations to meet selected priority needs result in an anticipated year-end fund balance in the General Fund of $12.77 million (29.9%), or $4.23 million above the Council-adopted reserve policy level of 20%. The adopted FY2017/18 Capital Improvement Program budget includes funding recommendations totaling $26.55 million, of which $11.25 million is allocated for investment in transportation I Manager’s Transmittal infrastructure, $11.82 million to advance capital projects with our water and sewer utilities, and $3.23 million supports park and library facility improvements. Of this amount, $3.63 million is provide through Measure E, consistent with the FY2017/18 funding allocations approved by the Council earlier in the budget process. The budget represents the sixth year of implementation of the city’s framework designed to advance the Council’s goal of fiscal stability. The FY2017/18 budget provides a modest amount of budget flexibility to address priority needs. While the city has made significant progress in tackling its long-term structural budget deficit, managing personnel costs and addressing unfunded liabilities, more work is needed over the next few years. The updated General Fund forecast currently reflects a projected deficit of $1.2 million for FY2018/19, growing to $3.2 million by FY2021/22, attributable almost entirely to projected increases in CalPERS retirement contribution rates resulting from lower interest earnings assumptions adopted by the CalPERS Board. Otherwise, the City’s fiscal and economic outlook has improved over the course of the prolonged economic recovery and is expected to further benefit from implementation of the newly adopted General Plan as well as targeted investment in infrastructure and initiatives to support economic development opportunities. Ongoing Progress Across All Council Goal Areas In presenting a spending plan for FY2017/2018 to continue advancing specific City Council priorities, it is appropriate to highlight some of the key accomplishments from the past year. Within the area of long-term fiscal stability, the city continues to benefit from the progress made over the past three years - working with its represented employee groups - to restructure labor agreements, reducing costs, and sharing in the long-term risk associated with rising health and pension costs. The City also continues to make progress in addressing unfunded liabilities by setting aside additional funds in our effort to incrementally pre-fund retiree medical benefits. Three years ago the City established an irrevocable OPEB trust account and following an initial contribution in excess of $1 million, annual contributions are being made to the fund, in excess of the funding required to pay for retiree health insurance premiums on a pay-as-you-go basis. This year’s budget again recommends allocations to pre- fund retiree medical benefits as we approach full funding on an actuarial basis. Significant progress has also been made on several major infrastructure projects, most notably the Davis-Woodland water supply project, related local water storage infrastructure and completion of our initial recycled water project. A major focus continues to be work needed to implement a comprehensive flood solution for our community. As the Army Corps of Engineers nears completion of its feasibility study, our local project team has worked with the State Department of Water Resources to refine project features required to meet local and state requirements. Advocacy at the State and Federal levels will be required to secure funding needed for completion of the Corps’ feasibility study. A major emphasis over the past year has been on economic and community development, culminating in the adoption by the Council of the City’s new General Plan. The General Plan will provide the roadmap to managed growth for our community, while providing added flexibility and predictability for development opportunities identified as best meeting community needs - chief among these are business expansion and job creation. II Manager’s Transmittal Concurrently, the adoption of the Climate Action plan will guide ongoing efforts to reduce our community’s carbon footprint consistent with State’s greenhouse gas reduction targets. This year also saw completion of the City’s 2.4-megawatt solar array project and decision to join a Community Choice Energy JPA in partnership with Yolo County and the City of Davis. The community also responded to the recent drought by aggressively implementing water conservation measures that exceeded state mandated savings targets. Adopted Budget Recommendations The overall Adopted Budget is consistent with the budget framework developed over the past several fiscal years as well as feedback provided by the City Council through its regular quarterly budget updates and the Spring Budget Workshops held this past March. As has been the case in recent years, the budget necessarily incorporates fairly conservative revenue estimates, which contribute to limited discretionary budget flexibility. Nonetheless, the ability of the city to maintain, and increase, reserve levels has provided an opportunity to exercise diligence in implementing long-term, sustainable structural budget changes, while also providing the ability to utilize a prudent amount of one-time funding to address priority needs, above what can be supported by the baseline budget. The budget also includes one-time funding recommendations totaling $1,995,456, including $1,615,856 in proposed General Fund appropriations from available excess reserves and an additional $379,600 from non-General Fund sources. The following summarizes the specific one-time funding recommendations included as part of the FY2017/18 Adopted Budget: III Manager’s Transmittal One-Time Funding - General Fund Fire Admin. /Mgmt. $ 450,795 Disaster Preparedness 50,000 Economic Development 214,854 Community Choice Energy 500,000 Cyclical Tree Pruning 100,000 Public Information Plan 30,000 Homeless Funding 100,000 COPS Grant (FY17/18 Matching Costs) 120,207 Sub-Total General
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