City of Corona, California

Fiscal Year 2015-16

Budget Workshop – June 3,

2015

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INTRODUCTIONDARRELL TALBERT, CITY MANAGER

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Strategic Plan

The City of Corona’s Mission is to serve as the caretaker and protector of our community through thoughtful planning and the highest and best use of our fiscal and human resources; providing a solid foundation for a sustainable future.

Corona is an inclusive, diverse City that treasures its past while embracing its future; values an exceptionally high quality of life; attracts diverse economic opportunities; provides ample resources for entertainment and recreational opportunities for people of all ages; and provides transparent governance to engage its residents.

• Promote Public Safety: Protect our Residents and Businesses

• Focus on the Revitalization of the Downtown Area: 6th St. and Main St.

• Enhance Economic Development with a Focus on Hi-Tech Opportunities

• Actively Engage in Public and Private Partnerships to Provide Services and Amenities

• Improve Circulation and Reduce Traffic

• Improve Communications with Our Community

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Goals

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FINANCIAL OVERVIEWKERRY EDEN, ASSISTANT CITY MANAGER

/ ADMINISTRATIVE SERVICES DIRECTOR

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Current Year AchievementsFY 2014-15

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• Implemented• City of Corona Smart Phone App• Online DisclosureDocs• NeoGov Insight• Web portal for DWP customers• Arbor Access – Urban Forestry Database and

Mapping System• Enhancements & Upgrades

• OneSolution Finance • Team Corona website• Integration of Telestaff software with

OneSolution Finance• Advanced CIS utility billing system• Geographic Information System (GIS)• Functional bandwidth for City internet• Digital radio system for Corona Cruiser and

Dial-A-Ride• Underway

• New City website• OneSolution Finance• OneSolution Community• Enterprise Asset Management

Technology• Began construction of Animal Services and

Enforcement Facility relocation• Citywide ADA improvements• Implemented sidewalk maintenance program• Relocation of Fire headquarters, training,

prevention, and operations into one location• Award of bid for new Community Center

construction• Expansion of CNG fueling station• Pre-fabricated restrooms installed in most

parks• Lighting and standardized concrete furniture in

most parks• Turf removal projects throughout City medians,

parkways and LMD’s• Electric vehicle charging stations• Public information message board• Home Gardens Water District interconnection• Reclaimed waterline projects at Butterfield and

Stagecoach parks• Partnered with CNUSD and California

Conservation Corps for turf removal projects

Infrastructure

Current Year AchievementsFY 2014-15

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• Air Support Program• Implemented Tactical Response to Violent Incidents

Program• Implemented Homeless Outreach and Psychiatric

Evaluation (HOPE) Team- two additional officers hired• Free CPR training program• Phase I of citywide unified camera system project• Two new fire engines• Emergency calls - first unit on-scene within five

minutes, 90% are less than five minutes

Public Safety

• Open House at city hall• Maintained 200 banners in Military Banner

program• Memorial Day walk collaboration• Adaptive recreation program• Expanded aquatics program• Expanded demonstration garden at city hall• Added Historic Civic Center tenants with a focus

on art• Increased video capture of meetings to include

study sessions and workshops

Community

• Implemented Personnel Classification and Affordable Care Act

• 47% decrease in OSHA recordable occurrences

• Restructured Workers Comp Program

• Upgraded credit rating on the Corona Public Financing Authority and the Corona Redevelopment Agency Tax Allocation Bonds

• Refunded four Community Facility District Bonds• Refunded two Corona Redevelopment Agency Tax

Allocation Bonds• Park Bond paid off • Grant funds - $7.4M DWP, $2.8M Public Works, $547K

Police, $151K Fire, $88K Library

Financial

• Over 450 business visits• Hosted 18 events• Enhanced TeamCorona.com website• Team Corona meetings to help companies relocate or

expand in the City• Presentations given at various service clubs and

organizations

Economic Development

Employee Relations

Citywide Funds

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Citywide Funds by TypeProposed FY 2015-16 FY 2015-16 Total

Expenditures$ 309,497,394

Governmental

50.7%

Fiduciary7.4%

Proprietary

41.9%

Governmental - $ 156,820,404

Debt Service Funds0.1% $ 208,400

Capital Projects 1.7% $ 2,708,079

Special Rev. Funds13.2%$ 20,647,096

General Funds 85.0%$ 133,256,829

Proprietary - $ 129,800,045

Airport 0.1% $ 136,193

Transit 2.3% $ 3,031,000

Internal Service 9.3% $ 12,090,116

DWP 88.3%$ 114,542,736

Fiduciary - $ 22,876,945

Successor Agency37.6%$ 8,600,471

Agency Funds 62.4%$ 14,276,474

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Expenditure TypeAdopted 2014-15

Proposed 2015-16 % Chg

Personnel 112,425,328$ 115,440,460$ 2.7%

Services / Supplies 132,810,592 133,059,752 0.2%

Capital Outlay 1,322,000 1,461,765 10.6%

Debt Service 27,077,736 23,379,604 -13.7%

Capital Projects 46,951,623 36,155,813 -23.0%

Total Funding 320,587,279$ 309,497,394$ -3.5%

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All Funds • Personnel

• Based on current MOU agreements

• Includes anticipated health impacts

• Includes minimum wage impacts

• Includes sick leave accruals for part time

• Capital Outlay

• Increase of $638K for vehicles

• Decrease of $498K for machinery and Equipment

• Debt Service

• Decrease related to refunding of CFD and Tax Allocation Bonds

• Capital Projects

• Decrease of $14.8M in utility related projects

• Increase of $2.4M in buildings, facilities, and systems

• Increase of $1.1M for drainage projects

• Increase of $0.7M in Roads, Bridges, and Freeways

Outlook

Proposed Budget – Exp. by TypeProposed FY 2015-16

Total Expenditures $36,155,813

Capital Improvement by CategoryProposed FY 2015-16

Assessment Dist – 4.4% $1,600,500

Bldg/Fac/Syst – 17.7% $6,399,110

Drainage – 3% $1,100,000

Housing/Econ – 8.7% $3,132,199

Lighting/Signal – 1.8% $634,375

Other – 1.4% $514,957

Roads/Bridges – 16.7% $6,025,672

Water – 18.3% $6,634,000

Wtr Reclamation – 28% $10,115,000

Assessment Dist

Bldg/Fac/Syst

Drainage

Housing/Econ

Lighting/Signal

Other (Dev & Parks)

Roads/Bridges

Water

Wtr Reclamation

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General Fund

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Property Taxes 40,087,695$

Sales and Use Taxes 40,915,000

Other Taxes 8,825,700

Licenses, Fees and Permits 1,468,930

Fines, Penalties and Forfeitures 859,900

Investment Earnings 1,181,282

Intergovernmental Revenues 1,057,694

Current Services 5,909,076

Other Revenues 11,593,854

Recreation Revenues 890,852

Designated Revenues 913,451

Payment in Lieu of Services 12,426,125

Total 126,129,559$

Total Revenue $ 126,129,559

Sales and Use Taxes

32.4%

Property Taxes 31.8%

Other Taxes 7.0%

Payment in Lieu 9.9%

Designated 0.7%

Recreation 0.7%

Licenses, Fees & Permits 1.2%

Investments 0.9%

Intergovernmental 0.8%

Current Services 4.7%

Fines, Penalties & Forfeitures 0.7%

Other Revenues 9.2%

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Type of Revenue

General Fund RevenueProposed FY 2015-16

• $40.1M in total property taxes exceeds previous high point of $39.0M in Fiscal Year 2007-08, excluding one time receipts in FY 2012-13 related to RDA dissolution

• Property Taxes – 31.8% of Total Sources• Estimated assessed valuation increase of 3.5%

General FundProperty Tax

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Outlook

Comparing FY 2007/08 to 2015/16

Total property taxes are estimated to exceed FY 2007-08, previous high point of $39.0 million

• Sales/Use Taxes – 32.4% of Total Revenue (30.4% Recurring, 2% One Time)• Revenue of $40.9M consists of $38.3M plus a one time payment of $2.6M

for the unwinding of the Triple Flip • Recurring activity estimated to increase 4.4%

General FundSales and Use Taxes

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Outlook

Comparing FY 2005/06 to 2015/16

$1.6 million in recurring sales tax revenues are needed to return to the high point of $39.9 million in FY 2005-06

Expenditure TypeAdopted 2014-15

Proposed 2015-16 % Chg

Personnel 89,242,044$ 91,267,164$ 2.3%

Services / Supplies 24,253,786 25,901,157 6.8%

Capital Outlay 42,000 - -100.0%

Debt Service 4,539,007 4,532,230 -0.1%

Capital Projects 121,000 4,413,739 3547.7%

Total Funding 118,197,837$ 126,114,290$ 6.7%

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General Fund

• Personnel

• Prepared based on current MOU agreements

• Service Supplies

• Increase for third party plan check services, offset with additional revenues

• Increase of $70K for July 4th event

• Increase of $81K for community center operations, partially offset with revenues

• Decrease in City Attorney’s Office operating costs by $200K

• Capital Projects

• Public Safety Enterprise Communication (PSEC) Radio Interoperability $1.15M

• 911 System $1.0M

• Technology Enhancements $600K

• Citywide Camera Project Phase II $427K

Outlook

General Fund – Exp. by TypeProposed FY 2015-16

Total

Expenditures

$ 126,114,290

Police $ 43,262,407Fire 24,369,280Maintenance Services 7,966,885Administrative Services 5,020,270Library & Recreation Svcs. 4,557,743Community Development 3,300,553Public Works 2,866,922Information Technology 2,676,602Management Services 2,123,205Legal and Risk Management 1,757,193City Council 181,839City Treasurer 14,506Department Subtotal 98,097,405

General Government 19,070,916Debt Service 4,532,230Capital Projects 4,413,739Non-Departmental Subtotal

28,016,885

Total $ 126,114,290

General Fund Expenditures Proposed FY 2015-16

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Departments

Police34.30%

Fire19.32%Maint

Svcs6.32%

Admin Svcs

3.98%

Lib/Rec Svcs

3.61%

Comm Dev

2.62%

Pub Works2.27%

Info Tech2.12%

Mgmt Svcs

1.68%

Legal/Risk

1.39%

City Council0.15%

City Treasurer

0.01%

Genl Govt

15.12%

Debt Svc3.60%

Capital Projects 3.50%

Estimated Budgeted Forecast ForecastFY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18

Revenues 125,864,710$ 126,129,559$ 126,374,072$ 127,338,980$ Expenditures (124,044,705) (126,114,290) (126,360,566) (126,935,274)

Annual Total 1,820,005$ 15,269$ 13,506$ 403,706$

General Fund Financial Forecast Proposed FY 2015-16

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• FY 2014-15 had $1.9M in one time developer fees• FY 2015-16 has $2.6M in one time sales/use tax revenues• FY 2016-17 - Revenues

• Increase in property taxes (3%) , recurring sales taxes (3%), and transfers• Decrease due to one time sales tax revenue occurring in FY 2015-16 and end of Cal GRIPS

funding • FY 2016-17 – Expenditures

• Increases for health rates, PERS, and safety personnel cost of living adjustment• Decrease in capital projects budget due to one time items funded in FY 2015-16

Financial Forecast

Notes

Dept. of Water & Power Funds

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DWP Funds – Operating Revenue and Expenditures

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Water

Reclaimed Water

FY 2014-15 Adopted

FY 2015-16 Proposed

$-

$20

$40

$60

$80

$61.6 $61.4

$56.1 $55.8

Revenues

Valu

e in M

illio

ns

FY 2014-15 Adopted

FY 2015-16 Proposed

$-

$2

$4

$6

$8

$10

$6.5

$3.3

$4.5 $4.5

Revenues

Valu

e in M

illio

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DWP Funds – Operating Revenue and Expenditures

2020

Water Reclamation

Electric

FY 2014-15 Adopted

FY 2015-16 Proposed

$-

$10

$20

$30

$40 $32.9 $33.4

$29.2 $26.9

Revenues

Valu

e in M

illio

ns

FY 2014-15 Adopted

FY 2015-16 Proposed

$-

$5

$10

$15

$20 $16.9

$17.6

$15.7 $16.5

Revenues

Valu

e in M

illio

ns

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All DWP Funds

DWP Funds - Expenditures by TypeProposed FY 2015-16

• Personnel

• Prepared based on current MOU agreements

• Net increase of 3 full time positions

• Service Supplies

• Decrease in lease payments, computer equipment, and administrative services charges

• Debt Service

• Increase $334K Brine Line System Discharge

• Increase $185K for 2013 Wastewater Revenue Bonds

• Capital Projects

• Home Gardens Well 32 and 33 $3.8M

• WRF#3 Decommissioning Force Mains $3M

• WRF#3 Decommissioning Pumping Improvements $3M

• WRF#3 Decommissioning Gravity Sewer Lines $2.5M

Outlook

Expenditure TypeAdopted 2014-15

Proposed 2015-16 % Chg

Personnel 16,332,150$ 17,567,668$ 7.6%

Services / Supplies 83,445,336 79,807,408 -4.4%

Capital Outlay - 73,765 N/ A

Debt Service 5,602,928 6,203,133 10.7%

Subtotal Operating 105,380,414 103,651,974 -1.6%

Capital Projects 31,606,769 17,093,895 -45.9%

Total Funding 136,987,183$ 120,745,869$ -11.9%

DWP Funds Financial OverviewProposed FY 2015-16

• Utility rates include replacement factor in rate structure for future capital replacement projects

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DWP Funds

Notes

Reclaimed Water Water Water Reclamation Electric

Revenue 61,427,662 3,254,113 33,375,582 17,614,485 Operating Expenditures 54,062,645 2,831,844 24,580,900 15,973,452 Net Operating Results 7,365,017$ 422,269$ 8,794,682$ 1,641,033$

Principal Payments on Debt 1,693,595 1,669,268 2,330,000 510,270 Capital Improvement Projects 5,747,930 870,000 10,442,965 33,000 Net Change (76,508)$ (2,116,999)$ (3,978,283)$ 1,097,763$

Available Working Capital 76,508 2,116,999 3,978,283 - Surplus / (Deficit) -$ -$ -$ 1,097,763$

Citywide Goals and Capital Projects

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Citywide GoalsFY 2015-16

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• Socrata – Open Data Solutions for Data Transparency

• New City Website

• OneSolution Finance

• New workflows to automate manual processes

• Online open enrollment, W-2s, W-4s, personnel information

• Contracts management

• Cashiering

• Fixed Assets

• OneSolution Community

• Business license, permitting, licensing, inspection, code enforcement

• Expansion of DisclosureDocs program

• Electronic Document Management System

• NeoGov Insight

• Employee performance management

Technology• Design of reclaimed water storage tank for Corona Hills

• Redundant electric interconnection for Dos Lagos and Crossings service areas

• System upgrades at Water Reclamation Facility #2

• New traffic signals at six intersections

• HVAC system replacement at Historic Civic Center Recreation Gymnasium

• Nine electric vehicle chargers added throughout the City

• Turf Removal project at Sheridan Park

• Interior and Exterior painting of Senior Center

Infrastructure

• $1.2M - Public Safety Enterprise Communication (PSEC) radio interoperability

• $1.0M - new Emergency 911 phone system • Phase II of Citywide Unified Camera System

project• Body worn camera project• Critical Incident Stress Management program

Public Safety

• Expedited solar permit process (AB 2188)

• Technical update to the City’s General Plan

• Urban Water Management Plan

• Administrative Services – merging of Finance and Human Resources

• Legal & Risk Management – merging of City Attorney’s Office and Risk Management

Citywide GoalsFY 2015-16

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• $1.0M in reserves for equipment replacement

• $24.8M anticipated MARA funding for Foothill Parkway (Measure A Fund 227)

• Increase $1.4M Measure A capital projects

• Decrease of $2.9M for debt service in Successor Agency Funds

• Decrease of $853K in debt service for Agency Funds

• Part time employees added to Budget’s Schedule of Positions

Financial

• Mayor’s Messages

• New Animal Services and Enforcement facility to open

• New Community Center to open

• Deployment of seven new low-floor Corona Cruiser buses

• Two new lighted basketball courts at City Park

• Water-wise demonstration garden at the Library

• Public Technology Center for permit history and property information

Community • Cal/OSHA vaccination program (Police, Fire, DWP)

• Contract negotiations with CGEA and CSA

• Enhanced administrative training courses

Other

• Connect business community to State representatives

• Grow job base by creating new and fostering existing relationships with business community

• Build Business Retention and Expansion program with business visits, industry roundtable events and quality customer service

• Promote and market the City of Corona to stimulate the investment of capital within the city

• Pursue business industry roundtable meetings and conduct events

Economic Development

Employee Relations

• $3.8M - Home Gardens well projects• $1.0M - Southwest Grand Blvd quadrant waterline replacement• $300K - Skyline water storage tank• $300K - Supervisory Control & Data Acquisition (SCADA) backbone

licensed radio installation

Capital Improvement ProjectsMajor Activity

• $8.5M - Water Reclamation Facility #3 decommissioning

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Water Reclamation

Water

Drainage• $1.1M - Storm drain line

Capital Improvement ProjectsMajor Activity

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• $2.6M - Pavement rehabilitation for local streets• $600K - Curb and gutter installation, replacement and maintenance• $400K - Phase II of Chase Drive improvements• $400K - Sidewalk construction

Roads, Bridges and Freeways

• $742K - LMD 84-2 Zone 10 improvements• $279K - LMD 84-2 Zone 15 improvements• $200K - CFD 2001-1 landscape improvements

Assessment Districts

• $634K - Citywide street light and traffic signal replacement and repairs

• $250K - Hardscape improvements in Parks

Lighting, Signals and Parks

CONCLUDING REMARKSDARRELL TALBERT, CITY MANAGER

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