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Home My WebLink AboutAGENDA REPORT 2024 0403 CCSA REG ITEM 09B POWERPOINTCity of Moorpark Long Term Financial Plan City Council Consideration April 3, 2024 Presentation Agenda •Background •Development & Review of Long-Term Financial Plan Assumptions •Long Term Financial Plan •Financial Scenarios •Recommendation Background •City of Moorpark has a long history of financial stewardship. –City Council direct fiscal policies •Investment Policy •Reserve Policy •Purchasing Policy –Strong Fiscal Management •Retirement funded at 97% per 2022 actuarial •Other Post Employment benefits super funded at 185% per 2022 actuarial •Ended last 7 years with multi-million $ budget surpluses •“Pay -go” philosophy on capital improvement projects = No General Fund Debt Service •Traditionally enjoyed strong General Fund (GF) reserves –Recognized by GFOA for transparency, accuracy in reporting and compliance •Annual Comprehensive Financial Reporting (Awarded for decades) •Annual Budgeting (Awarded 2020) Background •City of Moorpark faces fiscal threats –Rising Expenses •GF subsidies (Landscape & Parks maintenance) •Service Contracts •Human Resource expenses (compensation and benefits) –Resources needed for: •Public Safety •Transportation / Infrastructure maintenance and rehabilitation •Addition services (trails, public facilities, parks etc) –Other Factors •Lagging regional economy •Limited financial resources (no auto malls, big box stores) •Revenue structure (low prop. tax) Background •Goal 3, Objective 3.5: “Financial Sustainability” City Council Goal •Tool designed to highlight and project financial sustainability •Not accounting, not budgeting •Assist with projecting impacts of current and future policy decisions. City Council Directed staff to develop a long-term financial plan •Flexible to economic uncertainty •Reflective of local economy and resources •Updated and presented annually •Adopted and remain a “living document” LTFP should be: Background (cont’d) Committee met twice in Q1 2024 to review and finalize LTFP. Referred to Administration, Public Safety and Finance Committee for review, direction, finalization and recommended to City Council Long-Term Financial Plan Assumptions Assumptions are the most important element of any LTFP •Historical revenues / expenditures •Changes to Consumer Price Index •Regional & local economy Ability to project into the future •In doing so, assumes every dollar is collected and expended. Assumptions – Population Growth City of Moorpark Population Changes – 1990 to 2021 Assumptions – Property Tax History $ 0 $ 500,000 $ 1,000,000 $ 1,500,000 $ 2,000,000 $ 2,500,000 $ 3,000,000 $ 3,500,000 $ 4,000,000 $ 4,500,000 19 9 9 - 0 0 20 0 0 - 0 1 20 0 1 - 0 2 20 0 2 - 0 3 20 0 3 - 0 4 20 0 4 - 0 5 20 0 5 - 0 6 20 0 6 - 0 7 20 0 7 - 0 8 20 0 8 - 0 9 20 0 9 - 1 0 20 1 0 - 1 1 20 1 1 - 1 2 20 1 2 - 1 3 20 1 3 - 1 4 20 1 4 - 1 5 20 1 5 - 1 6 20 1 6 - 1 7 20 1 7 - 1 8 20 1 8 - 1 9 20 1 9 - 2 0 20 2 0 - 2 1 20 2 1 - 2 2 20 2 2 - 2 3 20 2 3 - 2 4 Property Taxes City of Moorpark Property Tax Breakdown Assumptions – Sales tax (7.25%) 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 $3,747,284 $3,679,295 $3,992,211 $3,967,466 $4,088,872 $4,336,676 $4,040,141 $4,575,526 $5,219,884 $4,948,566 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 CITY OF MOORPARK - 10 YEARS SALES TAX HISTORY Assumptions – General Fund Transfer History $999,787 $1,165,975 $1,202,407 $1,360,393 $1,469,077 $1,335,666 $1,685,621 $1,495,638 $1,340,430 $1,154,621 $1,196,027 $1,060,566 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 Ax i s T i t l e 06/30/2013 06/30/2014 06/30/2015 06/30/2016 06/30/2017 06/30/2018 06/30/2019 06/30/2020 06/30/2021 06/30/2022 06/30/2023 06/30/2024 GF Transfer $999,787 $1,165,975 $1,202,407 $1,360,393 $1,469,077 $1,335,666 $1,685,621 $1,495,638 $1,340,430 $1,154,621 $1,196,027 $1,060,566 GF Transfer Assumptions – Employee Compensation HISTORICAL COLA ADJUSTMENTS-MOORPARK 3 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 Cost of Living Adjustment vs . Consumer Price Index (LA Area) by Fiscal Year COLA CPI - LA Mar 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 COLA 0.00%0.00%0.00%1.00%1.00%1.00%1.00%2.00%2.00%1.00%0.00%2.00%2.00%7.00 3.00 CPI -LA Mar 1.90%3.00%2.00%1.30%1.00%0.50%1.70%2.70%3.80%2.70%1.90%2.20%8.50%3.70%TBD Assumptions – Public Safety Cost Trends Public Safety Costs Trend 75/23 /2022 Assumptions •No General Fund Contributions to: –Capital Improvements •Street maintenance ($1.5M per year target per Pavement Management Program) •Facility replacement –No Service Enhancements Long Term Financial Plan DETAILED OVERVIEW Long-Term Financial Plan $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2023 10-Year Financial Plan GF Revenues GF Expenses Long-Term Financial Plan Projected Deficit (FY 27/28) Scenario – 15% Exp. Reduction Projected Deficit (FY 27/28) Scenario – 0.25% Sales Tax Projected Deficit (FY 27/28) Scenario – 0.50 % Sales Tax Projected Deficit (FY 27/28) Scenario– Increase in Prop. Tax Assessed Valuation Projected Deficit (FY 27/28) Scenario– High Sales Tax Provider Projected Deficit (FY 27/28) Recommendations Administration, Finance & Public Safety Committee and staff recommend adoption of the LTFP. *Direct staff to integrate plan into budget annually for City Council review and adoption City of Moorpark Long Term Financial Plan City Council Consideration April 3, 2024