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About the Cover About the Cover The FY 2015-16 budget cover features five photographs capturing various events and projects occurring within the City over the past year. Top Left: The City’s second skate park opened within Planz Park in May 2014. The park is approximately 7,000 square feet and includes a beginner-friendly bowl, a mix of modern street features and an iconic sculpture inspired by the “Bakersfield” arch. The skate park is open during normal park hours and is lighted for night time use. Top Right: Crews work to pour the bridge deck of the new Morning Drive interchange at State Route (SR) 178. The Thomas Road Improvement Program project will construct a new interchange at SR 178 and Morning Drive, and will widen State Route 178 from two to four lanes between the Fairfax Road Interchange and Canteria Drive. The project will also widen and realign Morning Drive. The project is expected to be completed in the summer 2015. Middle Left: Bakersfield Fire Department Academy 2013-2 poses for photo after completing training. The 24 week-long academy graduated 15 recruit firefighters in 2014. Middle Right: Two recumbent bike riders enjoy a ride on the Kern River Parkway Trail through the Park at River Walk. The 32-mile multi-use path is a very popular recreational feature among residents and visitors for commuting and exercising. Bottom: In March 2015, 12 new Bakersfield Police Officers graduated from the Kern County Sheriff’s Office Regional Training Center Basic Academy, Class of 2014-14. The current sworn complement of the Police Department is 404, the largest in the Department’s history. Photography Credits: - City of Bakersfield Public Works Department - Gilbert Vega - Bakersfield Fire Department - Bakersfield Convention and Visitor’s Bureau - Bakersfield Police Department THIS PAGE INTENTIONALLY LEFT BLANK CITY OF BAKERSFIELD PROPOSED BUDGET FY 2015 – 16 MAYOR Harvey L. Hall CITY COUNCILMEMBERS Willie Rivera Councilmember, Ward 1 Terry Maxwell Councilmember, Ward 2 Ken Weir Councilmember, Ward 3 Bob Smith Councilmember, Ward 4 Harold Hanson Councilmember, Ward 5 Jacquie Sullivan Councilmember, Ward 6 Chris Parlier Councilmember, Ward 7 Submitted by Alan Tandy City Manager CITY OF BAKERSFIELD EXECUTIVE STAFF Alan Tandy City Manager Virginia Gennaro City Attorney Art Chianello Water Resources Manager Doug Greener Fire Chief Nick Fidler Public Works Director Dianne Hoover Recreation and Parks Director Doug McIsaac Community Development Director Greg Williamson Police Chief Nelson Smith Finance Director Steve Teglia Assistant City Manager Chris Huot Assistant City Manager TABLE OF CONTENTS BUDGET MESSAGE v Letter of Transmittal v Distinguished Budget Presentation Award xxix Employee Incentive Program xxx Organizational Chart xxxi BUDGET SUMMARIES 1 Revenues and Appropriations – General Fund 2 General Fund Budget Charts 3 Resources and Appropriations Operating Budget – All Funds 4 Operating Budget – All Funds Charts 5 Operating Fund Distribution 6 Operating Fund Distribution Charts 7 Departmental Appropriations by Fund 8 General Fund – Appropriations by Department 12 Financial Summary – All Funds 14 Estimated Balances – June 30, 2016 17 Interfund Transfers – Summary 18 Interfund Transfers – Detail 19 REVENUES 21 Property/Sales Tax Revenues Graphs 24 Transient Occupancy Tax/License and Permit Revenues Graphs 25 Motor Vehicle-In-Lieu Revenues/Charges for Services Graphs 26 General Fund – Revenue by Source 27 Estimated Revenue by Fund 29 LEGISLATIVE 31 Legislative 32 Mayor & City Council 34 EXECUTIVE 39 City Manager 43 City Clerk 47 Human Resources 50 Risk Management 53 Information Technology 57 i Table of Contents (Continued) FINANCIAL SERVICES 61 Administrative Services 64 Accounting and Reporting 66 Treasury 68 Purchasing 70 Successor Agency 72 CITY ATTORNEY 75 POLICE SERVICES 81 Headquarters 85 Support Services 89 Operations 102 Investigations 112 Animal Control 123 FIRE SERVICES 127 Administration 130 Fire Safety 133 Fire Suppression 136 PUBLIC WORKS 141 Administrative Services 145 Thomas Roads Improvement Program (TRIP) 147 Engineering 151 General Services 158 Streets 163 Equipment 166 Wastewater 169 Solid Waste 172 WATER RESOURCES 175 Agricultural Water 179 Domestic Water 182 RECREATION AND PARKS 185 Administrative Services 189 Recreation 191 Parks 194 COMMUNITY DEVELOPMENT 197 Planning 200 Building 207 ii Table of Contents (Continued) NON-DEPARTMENTAL 211 SPECIAL FUNDS 213 Special Revenue Funds 215 Internal Service Funds 226 Fiduciary Fund 229 Capital Improvement Program Funds 231 Debt Service Funds 240 Schedule of Long-Term Debt Outstanding 242 Schedule of Long-Term Debt Maturities 243 ENTERPRISE FUNDS 245 SUCCESSOR AGENCY FUNDS 253 CAPITAL IMPROVEMENT PROGRAM 257 Letter of Transmittal 257 C.I.P. Summary by Fund Chart 266 Key to Funding Codes 267 C.I.P. Five-Year Plan Summary by Department 268 C.I.P. Five-Year Plan Funding Summary 269 C.I.P. Five-Year Plan Department Detail 270 APPENDICES 279 City Council Ward Boundaries Map 280 Miscellaneous Statistics 281 Miscellaneous Statistics Graphs 282 Personnel Complement by Division 284 Salary Schedule 287 City Budget Process 296 Budget Calendar 297 Operating Budget 298 Basis of Accounting and Budgeting 299 Investment Policy 301 Budget Amendment Process 302 GLOSSARY 303 iii THIS PAGE INTENTIONALLY LEFT BLANK iv BUDGET MESSAGE FROM CITY MANAGER REMOVE THIS PAGE Alan Tandy· City Manager May 6, 2015 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: ALAN TANDY, CITY MANAGER AT SUBJECT: FISCAL YEAR 2015-16 PROPOSED BUDGET The FY 2015-16 Proposed Budget reflects a significant departure from the growth-oriented budgets of the past three fiscal years. The ripple effects of the depressed oil prices and the ongoing drought have started to negatively impact major revenue sources. At the same time the City continues to experience increases to employee healthcare and pension costs. Combined, these factors have limited staff’s ability to enhance department service levels, consider additional staff positions and fund discretionary capital improvement projects within the FY 2015-16 Proposed Budget. Countywide oil production activity has decreased considerably since the third quarter of 2014, with the current price per barrel of crude oil approximately 50 percent lower when compared to summer 2014 prices. As a result, local oil production and support companies have laid-off workers and curtailed production activity. The latest report published by the State Employment Development Department shows a 13.2 percent year-over-year decrease in countywide oil-related employment. In return, sales tax, the largest General Fund revenue source, has shown declines in two out of the previous four quarters. The declines have been specifically linked to oil industry-related purchases, as well as other indirect categories. This trending has required staff to lower the current year revenue projections, which subsequently impacts the projected revenue estimates for next fiscal year. Unfortunately, oil industry experts have varied opinions as to when oil prices will increase and a subsequent rebound in local production activity will occur. The next sales tax report will be available in mid-June. ____________________________________________________________________________ City of Bakersfield • City Manager’s Office • 1600 Truxtun Avenue Bakersfield, California • 93301 (661) 326-3751 • Fax (661) 324-1850 v Honorable Mayor and City Council FY 2015-16 Proposed Budget - Letter of Transmittal May 6, 2015 In addition to the decline in sales tax, development-related revenue is anticipated to show minimal growth and transient occupancy revenue is anticipated to decline slightly in FY 2015-16, when compared to current year revised estimates. These trends are reflective of a projected plateau in the homebuilding sector, as well an anticipated decrease in oil-related travel to the region. Property tax revenue is expected to show moderate growth in FY 2015-16 based on initial information from the Kern County Assessor’s Office. However, if the depressed oil prices linger into next calendar year, property values within the City may be negatively impacted, which, in turn, would affect related revenue sources as early as FY 2016-17. As outlined below, staff is not proposing any new positions as part of the budget. A deletion of one vacant full time position is proposed as the result of a reorganization of the Telecommunications and Information Technology Divisions. The authorized complement remains five percent below 2008 full time staffing levels. The FY 2015-16 Capital Improvement Program (CIP) Budget includes federal and local match funding for the remaining Thomas Roads Improvement Projects, with the balance of the projects mostly funded with restricted funding sources or enterprise funds. One-time funds for discretionary projects are very limited in nature and projects which are being proposed focus on critically needed improvements to City facilities and right-of-way improvements. Pursuant to City Council Goals, local road maintenance outside of the TRIP program continues to be funded above historical levels. However, due to the economic climate, many other identified capital projects were not able to be addressed in the upcoming year and will be evaluated in the future as funding becomes available. Budget Overview and Highlights Personnel Complement: Unfortunately, the current economic climate does not afford the ability for staff to propose any new positions as part of the Proposed Budget. Most Departments continue to operate below optimal
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