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Home My WebLink AboutAGENDA REPORT 2019 0724 CC SPC ITEM 04ACITY OF MOORPARK,  CALIFORNIA City Council Meeting of July 24, 2019 ACTION Presentation received. BY B.Garza. A. Workshop Discussion on Municipal Finances. Staff Recommendation: Receive a presentation on 1) City Revenue Sources, Expenditures, and Fund Balances, 2) City Budget versus Consolidated Annual Financial Reports, and 3) Future Budget Sustainability. (Staff: Irmina Lumbad) Item: 4.A. lill _ .......___ ______ C I mimY . F. 7,c-N. ....... .......' .,---b, ...... • 1\11, . • . , , i . ., , a ...,_ A Rhiiii II( F I N , .. ,. .. , A.__ .... b... ... , .___ ___...,, 7 '' 10( .8. H , C IN 0 rilr _ „ 24 , 2019 J ,..k., }IIII ,__ __ _c______... /04#lial .\., 11/Sil rill'''.°1 4 1.4ft_TAV 01\1 1 I 55k��J� v} kti/� ...._. Q Agenda OD Finance Structure 00o Revenue Sources 000o Expenditures OVDFund Balances (as of 7/1 /201 9) Flo Budget vs CAFR VODFuture itiv4044:6e, 9/ Eo i Finance Structure • Fund Accounting • Fund is a self- balancing set of accounts used by state and local governments for accounting and financial reporting . FO 9 F�' 9/ Eo i ' Fund Accounting - - FUND Special Capital Revenue Source Restriction General Revenue Revenue Fiducia Propert Taxes ----- Sales Taxes Mello-Roos CFD Tax User Fees Re• ularo Fees -KLE�-- Assessments Subventions Grants ----- Fines/Forfeitures IIMM mmimul -11M Contributions _____ F�°`P aspi. TA* Investment Earnin' s -�� rif4Pftog" ' Cityvvicl Revenue SPECIAL FRANCHISE FEES, ASSESSMENTS, $1 ,615,000.00 $2,491 ,150.00 OTHERS, PROPERTY TAXES, $11 ,861,336.00 $4,186,901.00 SALES TAXESII , $4,200,000.00 TRANSFERS I N, I NTERGOVT, $5,221 ,388.00 $6,482,344.00 FEES, $5,960,600.00 (*1*4 �I 5Tri Taxes Tax is monetary imposition by government on persons or property for the purpose of raising revenues to support government services of;;;NwF ogiV404i 9/ Eo i mi -[e oposition 13 General Tax Special Tax Use of Revenues Unrestricted Specific Purpose Governing Body General Law Cities & Majority Approval Counties - 2/3 Transactions & use tax - 2/3 Charter Cities - majority Voter Approval Majority 2/3 Other Rules Election with regularly Deposited in separate scheduled election of account and annual members of governing report body, unless an emergency is FoW°°2 declared. ' Proposition 218 Allow voters to repeal or reduce taxes , assessments , fees • Reiterating requirements for voter approval for general and sales taxes - Imposing procedural and substantive limitations of assessments and fees 0 9� )hiri 9/ Eo i ' Taxes vs Fees Proposition 26 Imposed charges are taxes EXCEPT: 1. Specific benefit to payor Z . Specific government service or product 3. Reasonable regulatory costs 4. Entrance or use of government property oa� F 9/ Eo i Taxes vs Fees Proposition 26 Imposed charges are taxes EXCEPT: 5 . Fine, penalty or charge as result of violation of law 6. Condition of property development 17 Assessments and property related fees ,aPw4%4 , *Riv4oi 9/ Eo i PropertyTaxes Property Tax = Assessed value x1 % Where , assessed value is purchase price adjusted by maximum of 2 % each year Air&� Eo i ....... 0. i 0 w Pc--.r _, 1 i iii a _ A IIIIa A _._ k l 0 N Co Supt of Schools, Others, $0.0225 $0.0246 ERAF, $0.0382 1 Ventura Community Col lege Genera I, $0.0578 Moorpark General Fund, $0.0977 Unified School General Moorpark, $0.3343 ERAF 93-94 Shift, $0.0787 \- Fire Protection Genera I Fund, �� y District, $0.1639Adiati-%,% *AAA ii X0101.40413*0) 0 ',0-›.,, dip,' roper y _ MI_ • $4,500,000 $4,000,000 - ■ I $3,500,000 $3,000,000 I $2,500,000 $2,000,000 $1,500,000 $1,000,000 : $500,000 : $0 MD o° oti oti o0 o°` o� � � oc c) o ti ti 0, o, 4) cb c) o • , ;c� ° °tioti6)1o°` ° 000� odtitititil tioti/ ti� ti� ti� ti� ti� o o ,o o ,o o ,�o ,�o �o ,�o �o ,�o �o �o ,�o �o ,�o o o ,o o` 9 ,� --=-- � ye rag ey -- . e Average City property tax Santa Paula 20.961% Unincorporated County 20.570% Fillmore' 20.255% Oxnard' 18.118% Ventura' 16.673% Port Hueneme 14.893% Ojai 12.657% Simi Valley 11.865% Moorpark 9.587/0 Camarillo 6.055% Thousand Oaks 5.656% FSP c.1‘ Do not participate in fire district. )16,1%/14% - roperty a • f VL Vehicle License Fee — tax on ownership of a registered vehicle . Cities share based on population . • May 2004 VLF rate 2% 0 . 65% • Cities VLF loss revenue backfilled with transfers from school property tax shares • 2011 legislature eliminated cities share of 0. 65% VLF 001111 ii/114/5 ,0440,(4, \AIWA _ _ __..,.._._.......-- - roperty a - lie - e f VL • 4,000,000 3,500,000 1 3,000,000 2,500,000 2,000,000 1,500,000 - M 1,000,000 +• 500,000 M la M ihih, 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 moo. Q ;; f *441,40i,44i OrsOlp , "lo 0W edeve - y • Created in 1987 to eliminate blight in the project area • Revenue source - Property Tax increment revenue 6+ million • Uses — housing , economic, rehabilitation & redevelopment functions ✓ Built RCHSC , parks, streets ✓ Acquired land for redevelopment ✓ Funded theater °4;;; 4k • ibRIV4014i 9/ Eo i utioent A -• Impact: Lost revenue source to support ^ � • Low-Mod Housing • Economic Development • Capital projects • Cost allocation to General Fund $500 , 000 Residual Property Tax Increment • Average $448 , 000 • Lowest FY 2013/14 $259 , 000 • Highest FY 2018/29 $788 , 000ig ,,c "`'° "Ph 10v1 A0411.1*; °9/ Eo i Appc, icorAh 1111 11°'""'11%tarpairli; KO wild! %,„.„„,001K-, 61-81OZ 8Z-LIOZ LZ-9ZOZ 9Z-SZOZ SZ-1710Z 17T-EIOZ E1-ZIOZ ZZ-ZZOZ - 000`001 000100z 000,00E .a 000'0017 000100 S 000`009 000`OOL - 000`008 - 000'006 Fun • oanting '1"mgigr`' FUNS Special Capital Revenue Source Restriction General Revenue Revenue Fiducia Propert Taxes ----- General No V --- Special YeslnLieuofVLF No d �Tax Increment Noozfard, cApc , V �■-- • • ii4V401-4t SaIes & UseTax Sales & Use Tax = Total retail price x 7 . 25% Sales tax — imposed on retailers tangible personal property. Use tax — imposed on purchaser of tangible personal property that is used , stored or consumed when sales tax is not collected . - 9/ Eo i .... ., ---'111 ......_ - -. es and Use Tax ---114::,--..-- -. .- TY Rate Jurisdiction Purpose 3.9375% State State General Fund 0.5000% State Local revenues to support Health & Social Services Program 0.5000% State Local revenues to support Public Safety Programs 1 .0625% State Local revenues to support corrections and rehabilitation programs 1 .0000% Local City/County General Fund IIIrri 0.2500% Local County Transportation Fund 7.2500% TOTAL 4ii :;;i1 9 y �<<; "PiRIV40* 1.9/iiiipv, E0 i an • i se .- - Rate by City City Rate Camarillo 7.25% Fillmore 7.25% Moorpark 7.25% Ojai 7.25% Oxnard 7.75% Port Hueneme 8 .75% Santa Paula 8 .25% Simi Valley 7.25% Thousand Oaks 7.25% q oa ° Ventura 7.75% pv\ i'4441, : b-§7a1"-1 s - ---___: . -...°.....-' 2019 Q1 City Gross Receipts Oxnard $8,378,151 .00 Thousand Oaks $7,633,367.00 Ventura $6,563,936.00 o/orraipir„ Simi Valley $4,493,788.00 Camarillo $3,618,852.00 Unincorporated $1 ,332,834.00 Fillmore $959,318.00 Moorpark $927,108.00 Santa Paula $608,627.00 Ojai $413,166.00 Port Hueneme $390,546.00 "PiRI - , c<<;Total $35,319,693.00 1,V40* o9/ Eo ,_ -,- a es an . use Revenues $5,000,000 $4,500,000 $4,000,000 $3,500,000 • $3,000,000 1 $2,500,000 rt $2,000,000 ±- $1 ,500,000 w $1 ,000,000 $500,000 -1 4- ,\ `1• 3 Dk h co1 0 �NNN1,1 IL t\Q" t\\' t\rl' t\t)" ti)# t\C3' 1\cb'(1/ (1/ (1/ (1/ (1/ 9/ 9/ (1/ (1/ 0 0 0 0 0 0 0 0 0 0 )164401-4 o �9/ Eo i Fun . � oGPting FUNS Special Capital Revenue Source Restriction General Revenue Revenue Fiducia Sales & Use Taxes ----- General (1 %) No V --- Special (add on) Yes V - 0 9� ibRIV4014t o9/094,Eo i Real Tax Tax imposed on transfer of ownership of real estate 350,000 300,000 IN 250,0001.-1111111 200,000 150,000 - 100,000 50,000 ca� aK �'�o\ 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 m5 F°PQA�/ �?'�: 9gT�o j‘P Mèiio - Roos COmmu 'i y Facies Tax ( C1 ' D ) Special tax imposed to property owners to finance the infrastructure or public services (public safety, flood or storm protection , etc. ) in connection with new development . 0 F - CFD 2OO4TMQrarr HighIandbIic Safety A B C =A * B D E =A ' D F = C - E Wind Cumulative Fiscal CFD down Wind down Lost GF GF Year Parcels Rate Revenue Rates Revenues Revenues Reduction 2018/19 650 $604 $392,700 $450 $292,500 $100,200 $100,200 2019/20 650 $622 $404,492 $350 $227,500 $176,992 $277, 192 2020/21 650 $641 $416,639 $250 $162,500 $254,139 $531 ,331 2021/22 650 $660 $429,151 $0 $0 $429,151 $960,482 2022/23 650 $680 $442,038 $0 $0 $442,038 $1 ,402,519 2023/24 650 $700 $455,312 $0 $0 $455,312 $1 ,857,831 r0.04- 4k .. Fun . A •-j • mi FUND Special Capital Revenue Source Restriction General Revenue Revenue Fiduciary Transfer Tax No V Mello-Roos CFD Yes V V ;;;‘• "PiRIV40* f9/ Eo Fees • User fees — charged for use of public service or program Examples — recreation fees , copy fees , facility rental , court light fees , F etc. ikiv40* ��' Eo Fees • Regulatory fees — charged for government program which regulates or mitigate impact of the activities Examples — traffic mitigation fee , park fee , building & safety permit fees , r- animal license , plan check or inspection fees 4.1, °44k' )1,1%01% o9/ Eo i Fun . nting FUND Special Capital Revenue Source Restriction General Revenue Revenue Fiduciary User Fee* Yes Regulatory Fee Yes V * if the cost of service/program is directly supported by the General Fund. 1111 TA <<; ii4V40.4t Franchise Fees Payment to municipalities for rent or "toll " for use of streets and rights of way Type Rate Cable/Video 5% of gross revenues plus 1 %-3% of gross revenues for PEG Solid Waste per contract 0 Electic, Gas & Oil 2% of Gross annual receipts ■ � _<< ‘, Alm*0:142War �9/ Eo i 144plp ,Ifftkarla 14, WM.. LIO I 1 '1;67,4W70° OZ -L 10Z L OZ 9 I OZ 9 x171-OZ 171-- OZ -Z I-OZ Z OZ - 000'00Z - 000'0017 - 000'009 - 000'008 - 000'000'I#Hoi_ia A - 1-111- 000`00Z`� 000`00i7` 000'009'1- 000'008'1- Seed 00`009`1- 000`008`1- Fun . nting FUNS Special Capital Revenue Source Restriction General Revenue Revenue Fiducia Franchise Fees No --- PEG Franchise Fee Yes lir lip.. F_ i O/air Eo i Special Benefit Assessments Benefit assessments based upon special benefits that a property or business will derived from the improvements or services provided . Aliaa 0.4gr„ co4 ,-Nr4ot 9/ Eo i Special Benefit Assessments District Authority Purpose FY 2019/20 Levy Parks Landscape & installation, $857,544 Improvement Lighting Act of maintenance & service District (1 ) 1972 of improvements on 21 parks (69 acres) Lighting & Landscape & installation, $1 ,633,606 Landscape Lighting Act of maintenance & service Maintenance 1972 of streetlights, Districts (27) landscape, trails, basins, and other 311ti• improvements within each district ,c c,,„ ° esPrn, P � F • 9/ Eo /--,-- 6,),, A'..0il o55 /..0Yft ali ,,,c,,- ,arisnit-,,,, ', ti F 1 IA&91 / 6. . 6i-gioz gi-LiOZ Li-91OZ 9i-SiOZ ci-171OZ 17i-�1OZ a-ZIOZ Zi-IIOZ 0;-57,1PIdip0111:/ , 1 1 1 1 1 1 - 4 000`o0Z - 000`00i7 000'009 000`oog 000`000`i 000`o0Z`i 000`00-17`i - 000`000 000`oog`1 S)IJPd of JaJsuPJJ punj jPJUJ 01 sluewssessvilleueg leneds . l i Special Benefit Assessments General Fund Subsidy to LMD I350,000 300,000 250,0001111 200,000 150,000 � 100,000 -1 ir 50,000 - lhL 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 FO �9/ Eo i Fun . ounting FUND Special Capital Revenue Source Restriction General Revenue Revenue Fiduciary Special Benefit Assessments Yes V 0 9� )16,1%014t 9/41101v,' Eo i nte rg ove rn me nt Revenues --6 -RFT • Subventions — provisions of financial assistance from the State from state- imposed taxes or other resources . • Examples — Motor Vehicle Fuel tax, COPS , Homeowner's Exemption 0 9� *iv4oz. ,\AIWA ntergovernment Revenues Grants — award of federal or state assistance to carry out a public purpose of support or to stimulate the economy • Examples — CDBG , HMGP, Beverage Container Recycling _ Grant Avioi Other Revenues • Fine , forfeiture & penalties — money forfeited following conviction of misdemeanor or infraction committed within City boundaries • Examples — parking bail , restitutions 0 9� Fr•vol Other Revenues • Investment Earnings — interest earned from investment of surplus cash • Contributions — gifts , bequests or devise made to or for the City or in trust for public purpose r•sot 0 9� ,010 Eo i Fun . nting FUNS Special Capital Revenue Source Restriction General Revenue Revenue Fiducia Intergovernment Yes � Fines, forfeitures, -- penalties Yes/No V V Investment Earnings r Yes/No 11111 Contributions - Yes F mon= 0k � ii4V401-4t .9/ Eo i Expenditures • Appropriations Limit — restriction on the amount of government revenue (proceeds of taxes) which may be appropriated in any fiscal year • Limit = Appropriation @ Based Year ( 1986/87 ) x growth rate • FY 2019/20 limit - $40 , 808 ,451 it 4,0,47 Ace, \ Eo i itywlie - •-=-= dit�res $ 58 , 177 , 746 Transfers Out,_‘ Salary & $5,221,388 Benefits, ddihi $8,346,756 Capital, Services & $21,987,330 Supplies, --- $19,233,757 MI Debt Servi ce, - Utilities, $1,374,636 $2,013,879 Fa,a;c _......" _____....li. enera u ' u re (including Transfers Out) $25,000,000 II $20,000,000 $15,000,000 $10,000,000 M $5,000,000 `M I.. $0 1-- FY2 01 2/1 3 FY2 01 3/1 4 FY2 01 4/1 5 FY2 01 5/1 6 FY2 01 6/1 7 FY2 01 7/1 8 FY2 01 8/1 9 FY2 019/2 0 illik (A) (A) (A) (A) (A) (A) (E) (B) K C QPa a � O� 0:.ffigalr , Aillij"Ilk 1 BITMILCOLI4. I I'ioVIII1014107, 01,4 i gQTo �v� enera u xpenditure by Function $10,000 $9,000 in $8,000 $7,000 � r t) $6,000IMP 2 $5,0 00 ~ $4,000 � $3,000 $2,0 00 $1,o 00 $0 FY2012/13 FY2013/14 FY2014/15 FY2015/16 FY2016/17 FY2017/18 FY2018/19 FY2019/20 (A) (A) (A) (A) (A) (A) (E) (B) Public Safety General Government Parks & Recreation 11116. Public Services Capital Transfers Out Fo 9 , ,_,„ ropertyTax R ues vs P blic SafetyExpenditures $10,000,000 $8,500,000 MI 0 $7,000,000 illik 19-1- 11 $5,500,000 or $4,000,000 Or $2,500,000 Ir $1,000,000 FY2012/13 FY2013/14 FY2014/15 FY2015/16 FY2016/17 FY2017/18 FY2018/19 FY2019/20 (A) (A) (A) (A) (A) (A) (E) (B) o pQ�p_PrK ''-'A%.1 Property Taxes Public Safety °�+� �? rlil,_ii fillarld4 i o`er'MAW � AO94 T„0 ,Jay^ General Fund Subsidies 1 $2,000,000 $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 h $200,000 N h $o L` FY2012/13 FY2013/14 FY2014/15 FY2015/16 FY2016/17 FY2017/18 FY2018/19 FY2019/20 ok (A) (A) (A) Parks Community Devt (A) En ineering(A) LMD (A) Housin g (E) (B) 491plir dirliP4PtAr" FAID4011W.,:07, deo) Fund Balances at 7/ 1 /2019 No. of Surplus / Fund Type Funds (Deficit) General Fund 1 Library Fund 1 $985,271 Special Revenue Mitigation 19 $56,834, 101 Assessment Districts 29 $1 ,676,533 Streets/Transit 11 $5,678,397 Housing 3 $4,798,740 ODD/ENGR 2 Capital Funds Facilities/Infrastructure 3 $ 1 ,511 ,869 Equipment Replacement 5 $2,944,367 Special Projects 1 $22,345,993 MRA Remain Bond Proceeds 1 $1 ,941 ,687 0; wA I I 14k, TOTAL $98,652,458 iF Budget vs CAFR Budget is • Legal authority to spend and how much • Financial plan • Public policy -� • Communication device 0 9� ikiv40* Budget vs CAFR CAFR is government entities audited financial report • Revenue raised = -. • Expenditures • Compliance with standards & contractual provisions • Performance measure r•sot 0 9� f9/ Eo i Past • Reduced staff by 11 positions • Drought action plan to reduce water usage • ' Purchase of street lights , install LED to reduce energy consumption • Pay down pension & OPEB liabilities • Funded Equipment Replacement • Investment in technology � F0441141 omp Current General Fund Revenue vs Expenditures ill $25,000,000 1 $22,500,000 $20,000,000 . $17,500,000 $15,000,000 $12,500,000 $10,000,000 or $7,500,000 $5,000,000 lh IL FY2012/13 FY2013/14 FY2014/15 FY2015/16 FY2016/17 FY2017/18 FY2018/19 FY2019/20(A) (A) (A) (A) (A) (A) (E) (B) ig,liVil 14 c 1,4 o\ Revenue+Tfers Exp+Tfer e,4 �, „,,,ii. ,v,, Current • General Fund Reserve policy - $3 million reserve for Emergency or Contingency; plus 20% of annual expenditures unreserved . Excess transferred to Special Projects • CaIPERS and OPEB is 90% funded • Established 2-year Strategy and Objectives 0 9� *R1V4At 9/ Eo i Future Solvency — ability to pay for our obligations as they come due (fiscal ) Sustainability — ability to deliver public services and meet our obligations as they come due (fiscal/social/economic) 0 9� )1,4v4ol zetiovici \411 Future - Threats General Fund structural deficit Revenues • Loss of $430K in FY 2021 /22 (cumulative $960K) from CFD 2004- 1 Public Safety • Built -out capacity • Retail trends shifts • Decreasing federal and state funding Dp _ q ; o • Changes in legislations � F° App. *40VAZ Future - Threats Operating costs — rising faster than our resources • Pension and health care cost • Public Safety Contract cost • Utilities & service contracts • Minimum wage increasing to $ 15 by 2023 • Subsidy to Parks , LMD Community Development/Engineering funds a F°` �9 Future - Threats Capital Projects • Aging equipment & infrastructures • Technology 1 ' • 400limovar 1,4v,0317 • zorstApPr 9/ Eo i Future - Threats Capital Projects vs Resources Estimated Available Group Section Program Cost Resources PW Streets 48,495,164 PW Storm Drain 16,660,000 PW Medians & Walkways 2,053,490 PW Traffic Signals 1,443,443 PW Trails 1,186,856 Subtotal PW 69,838,953 PRCS Trails 2,515,000 PRCS Parks 14,304,062 PRCS Facilities 53,340,967 PRCS Open Space 3,040,000 PRCS LMD/Landscaping 8,050,823 o�p Subtotal PRCS 81,250,852 � k F 16,W4 TOTAL 151,089,805 under $85 million , CQLIuSio1U • City finances are well managed • Expenditures are rising faster than our resources • Structural General Fund deficit • Limited resources to fund CIP program 0.4gr„ 4;4 , 1,-w40* z9/ 1 Eo i