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Proposed Budget for Fiscal Year 2019/20

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Proposed Budget for Fiscal Year 2019/20 DARRELL STEINBERG CITY OF SACRAMENTO FACTS Mayor ANGELIQUE ASHBY The City of Sacramento was founded in 1849 and is the oldest Mayor Pro Tempore, District 1 incorporated city in California. PROPOSED BUDGET | FISCAL YEAR 2019/20 | CITY SACRAMENTO OF YEAR 2019/20 BUDGET | FISCAL PROPOSED ALLEN WARREN In 1920, city voters adopted a Charter (municipal constitution) Councilmember, District 2 and a City Council/City Manager form of government. JEFF HARRIS The City is divided into eight districts. Councilmember, District 3 Elected members of the City Council serve STEVE HANSEN a four-year term. Councilmember, District 4 The Mayor and other Councilmembers have an equal vote in all JAY SCHENIRER matters. Councilmember, District 5 The City of Sacramento currently encompasses approximately 100 square miles. ERIC GUERRA Vice Mayor, District 6 The current estimated population is 501,344 as reported by the State of California, Department of Finance as of Janurary 2018. RICK JENNINGS, II Councilmember, District 7 LARRY CARR Councilmember, District 8 City of Sacramento Proposed Budget FISCAL YEAR 2019/20 CityofSacramento.org PROPOSED CITY OF SACRAMENTO FISCAL YEAR 2019/20 BUDGET DARRELL STEINBERG Mayor ANGELIQUE ASHBY JAY SCHENIRER Mayor Pro Tempore, District 1 Councilmember, District 5 ALLEN WARREN ERIC GUERRA Councilmember, District 2 Vice Mayor, District 6 JEFF HARRIS RICK JENNINGS, II Councilmember, District 3 Councilmember, District 7 STEVE HANSEN LARRY CARR Councilmember, District 4 Councilmember, District 8 HOWARD CHAN City Manager CHRISTOPHER C. CONLIN MICHAEL JASSO LEYNE MILSTEIN Assistant City Manager Assistant City Manager Assistant City Manager VACANT Assistant City Manager Prepared by DEPARTMENT OF FINANCE BUDGET, POLICY and STRATEGIC PLANNING DIVISION Dawn Holm Daniel Choe Jason Bader Marian Fahy Angie Galieote Zonousia Lee Elizabeth Ramos Michael Tamayo In conjunction with Department Staff CITY HALL 915 I STREET, 5TH FLOOR SACRAMENTO, CA 95814 3 4 FY2019/20 Proposed Budget Table of Contents SECTION – 1 Budget Message ........................................................................... 9 Operating Budget Excellence Award ............................................. 13 SECTION – 2 Budget Overview ........................................................................ 15 Proposed Budget Overview ........................................................ 17 History of the City of Sacramento ................................................ 18 Budget Presentation .................................................................. 21 The Budget Process .................................................................. 21 Financial Management Policies ................................................... 23 Budget Hearings ....................................................................... 23 Council Priorities ....................................................................... 24 FY2019/20 Program and Service Improvements ............................ 27 2019-2024 CIP .......................................................................... 29 Performance Measurement ......................................................... 30 On the Horizon – Future Fiscal Challenges .................................. 31 General Fund Revenues: Options and Opportunities ..................... 34 Conclusion ............................................................................... 35 SECTION – 3 The Forecast .............................................................................. 37 Proposed Financial Forecast ...................................................... 39 Financial Forecast ..................................................................... 39 General and Measure U Funds Overview ..................................... 39 General and Measure U Fund Expenditures ................................. 41 General Fund and Measure U Revenues ...................................... 45 Enterprise Funds ....................................................................... 55 SECTION – 4 How to Read This Document ........................................................ 71 SECTION – 5 Budget Schedules ....................................................................... 81 SECTION – 6 Mayor and City Council .............................................................. 111 SECTION – 7 City Attorney ............................................................................. 117 5 FY2019/20 Proposed Budget SECTION – 8 City Auditor ............................................................................... 125 SECTION – 9 City Clerk .................................................................................. 131 SECTION – 10 City Manager ............................................................................. 137 SECTION – 11 City Treasurer ........................................................................... 147 SECTION – 12 Community Development ............................................................ 155 SECTION – 13 Convention and Cultural Services ................................................ 165 SECTION – 14 Finance .................................................................................... 177 SECTION – 15 Fire .......................................................................................... 185 SECTION – 16 Human Resources ...................................................................... 193 SECTION – 17 Information Technology .............................................................. 203 SECTION – 18 Police ....................................................................................... 213 SECTION – 19 Public Works ............................................................................. 225 SECTION – 20 Utilities ..................................................................................... 237 SECTION – 21 Youth, Parks, & Community Enrichment ....................................... 249 SECTION – 22 Citywide and Community Support ................................................ 257 SECTION – 23 Debt Service ............................................................................. 267 SECTION – 24 Staffing ..................................................................................... 273 SECTION – 25 Multi-Year Projects .................................................................... 299 6 FY2019/20 Proposed Budget SECTION – 26 Financial Policies ...................................................................... 313 EMS Revenue Recovery and Fee Waiver Policy ........................... 315 Budget Control Policy ............................................................... 321 Debt Management Policy ........................................................... 325 Debt Management Policy - Disclosure ........................................ 341 DSCR and Development Services Fund Management Policy ......... 345 General Fund Economic Uncertainty Reserve Policy .................... 349 Interfund Loans ........................................................................ 353 Investment Policy ..................................................................... 357 Measure U Financial Management .............................................. 369 Other Post-Employment Benefits (OPEB) .................................... 373 Pension Funding ...................................................................... 377 Risk Management Funding and Reserve Policy ............................ 381 SECTION – 27 Resources ................................................................................. 385 SECTION – 28 Resolution ................................................................................. 397 7 FY2019/20 Proposed Budget 8 FY2019/20 Proposed Budget 1 SECTION – 1 Budget Message 9 FY2019/20 Proposed Budget 10 Howard Chan City Hall City Manager 915 I Street, Fifth Floor Sacramento, CA 95814-2604 916-808-5704 April 24, 2019 Honorable Mayor and City Council Sacramento, California Dear Mayor and Members of the City Council: I am pleased to present a balanced budget for fiscal year (FY) 2019/20 totaling $1.2 billion for operations and capital improvement projects. The budget represents the City’s financial plan for the upcoming year and reflects an increase of $64.8 million or 6% compared to the FY2018/19 Approved Budget. The combined General Fund and Measure U Fund budget of $588.5 million represents an increase of $53.3 million or 10% compared to the prior year approved budget. The Measure U programming reflects new revenues from the sales tax increase approved by voters in November 2018, effective April 1, 2019. This budget offers a road map for the City’s efforts to successfully bolster and expand the delivery of vital core services while also focusing on Council’s commitment to inclusive economic development and increased youth programming. It is important to keep in mind that, like most California municipalities, Sacramento continues to face aging infrastructure, increasing retirement costs and obligations, which put pressure on our finances. However, because of thoughtful planning, deliberate use of resources and creative partnerships, the City’s budget forecast is balanced over the next five fiscal years. With the passage of the expanded Measure U sales tax, Sacramento voters demonstrated their desire to invest more in their city’s future. The newly formed Measure U Advisory Committee, consisting of community members, will work in tandem with City staff to make recommendations to the City Council how best to program
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