HomeMy WebLinkAbout6.3 - 3240 Proposed Budget Fiscal Year 2020-21 and Fi
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STAFF REPORT
CITY COUNCIL
DATE: June 2, 2020
TO: Honorable Mayor and City Councilmembers
FROM:
Linda Smith, City Manager
SUBJECT:
Proposed Budget, Fiscal Year 2020-21 and Fiscal Year 2021-22
Prepared by: Lisa Hisatomi, Director of Administrative Services
EXECUTIVE SUMMARY:
The City Council will consider approval of the Proposed Budget for Fiscal Years 2020-
21 and 2021-22 and related salary plans.
STAFF RECOMMENDATION:
Conduct the public hearing, deliberate, and adopt the following: 1) Resolution Adopting
a Budget for the City of Dublin for Fiscal Year 2020-21; 2) Resolution Establishing a
Salary Plan for Full-Time Personnel in Accordance with the Personnel Rules; 3)
Resolution Establishing a Salary Plan for Management Positions Exempt from
Competitive Services.
FINANCIAL IMPACT:
The Proposed Budget includes citywide revenues of $124.5 million in Fiscal Year 2020-
21 and $121.7 million in Fiscal Year 2021-22 (in all funds, including internal service
funds). Expenditure proposals total $126.7 million and $119.6 million in Fiscal Years
2020-21 and 2021-22, respectively (in all funds, including capital funds and internal
service funds). The total citywide fund balance is projected at $282.4 million, and
$284.5 million in Fiscal Years 2020-21 and 2021-22, respectively.
The Proposed General Fund Budget is balanced in both years, with a projected addition
to reserves of $8.1 million in the first year, and $6.4 million in the second year. The
General Fund and certain Special Revenue Funds have been impacted by the COVID-
19 pandemic and shutdowns. These impacts are discussed in the Transmittal Letter of
the budget document.
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DESCRIPTION:
The attached Proposed Budget for Fiscal Years 2020-21 and 2021-22 includes a
Transmittal Letter (Section B) from the City Manager, which provides a holistic
discussion of the financial health of the City, the two-year budget, reserve changes,
Capital Improvement Program appropriations, and factors used in the 10-Year Forecast.
As such, the Transmittal Letter is attached here separately (Attachment 1) that it may
serve to introduce and summarize the budget document itself.
The Proposed Budget document (Attachment 2) is organized as follows:
A. Table of Contents
B. Transmittal Letter - Discussion of the City’s overall financial picture
C. Introductory - Community profile and description of budget process
D. Funds Summary - Definition of fund classifications; projection for all funds
E. General Fund Summary - General Fund revenues and expenses
F. Departments - Departmental projections, including accomplishments and goals
G. Capital Improvement Projects (CIP) - Summary of CIP appropriations for Fiscal
Years 2020-21 and 2021-22, with funding sources
H. Proprietary Funds - Internal Service Fund projections
I. Fiduciary Funds - Projections in funds for which the City is a fiscal agent
J. Strategic Plan
K. Appendix - Historical information and Position Allocation Plan
While the document contains Capital Improvement Program (CIP) appropriations for
Fiscal Years 2020-21 and 2021-22, the full 2020-2025 CIP proposal is presented in a
separate document and adopted by the City Council separately at a public hearing on
tonight’s agenda. Any changes made by the City Council during that public hearing will
be incorporated into the final adopted budget.
STRATEGIC PLAN INITIATIVE:
Strategy #1: Assure the City's long-term financial sustainability;
Strategic Objective A: Maintain strong conservative fiscal policies.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
A Budget Hearing Notice was posted on May 29, 2020.
ATTACHMENTS:
1. City Manager's Transmittal Letter
2. Proposed Budget Fiscal Years 2020-21 and 2021-22
3. Resolution Adopting a Budget for the City of Dublin for Fiscal Year 2020-21
4. Resolution Establishing a Salary Plan for Full-Time Personnel in Accordance with the
Personnel Rules
5. Resolution Establishing a Salary Plan for Management Positions Exempt from
Competitive Service
Letter City of Dublin Fiscal Years 2020-21 and 2021-2 Budget Page B-1
City of Dublin
CITY MANAGER TRANSMITTAL LETTER
June 2, 2020
Honorable Mayor and City Council Members:
I hereby submit to you the City of Dublin’s Fiscal Year 2020-21 and 2021-22 Budget, covering the beginning of
a new two-year budget cycle.
There are three primary goals of the budget cycle: 1) Fully fund current City operations; 2) Continue funding
future capital endeavors now, through the setting aside of specific reserves; and 3) Maintain adequate operating
reserves over the long term. The short-term action items detailed in this letter and planned for in the budget
numbers support these three goals.
This is a comprehensive document, with fund summaries, revenue and expenditure summaries, position
allocations, and illustrative charts and graphs that aim to present the City’s financial position in a clear and
transparent manner. Behind the data is the City’s plan to both deliver services to the Dublin community in the
short term, while remaining focused on the long-term financial health of the City
Budget-In-Brief: Key Issues
Executive Summary
Budget Impact of COVID-19
The Fiscal Years 2020-21 and 2021-22 preliminary budget was presented to the City Council at the Strategic
Planning meeting on March 4, 2020, showing significant surpluses in the General Fund. Since the presentation,
the COVID-19 pandemic and related shutdowns have had a significant impact on the national and local
economies, with indicators showing signs of a coming recession.
The City of Dublin is already facing operational impacts in the current year due to the shelter in place order
issued by Alameda County, particularly related to the closing of City facilities and the suspension of certain
programs. In addition, the City is experiencing larger revenue losses, including taxes and investment income, that
are tied to declines in the broader economy. Staff expects these impacts to continue for the foreseeable future
and have prepared a two-year budget with the latter in mind.
The most significant short-term (one- to three-year) impact of the COVID shutdowns on Dublin’s budget is a
steep decrease in anticipated taxes and interest income beginning in Fiscal Year 2019 -20, with smaller decreases
in development, transient occupancy tax, and recreation revenues. The cumulative effect of these hits is the loss
of $16.7 million over three years, as shown below.
Letter City of Dublin Fiscal Years 2020-21 and 2021-2 Budget Page B-2
Change to
FY 19-20
Change to
FY 20-21
Budget
Change to
FY 21-22
Forecast Total Loss
Property Taxes ($1,394,000) ($1,690,000) ($3,084,000)
Sales Taxes ($1,845,000) ($3,457,950) ($3,355,099) ($8,658,049)
Development Revenue ($500,000) ($500,000)
TOT ($500,000) ($500,000)
Interest ($250,000) ($1,095,985) ($1,490,985) ($2,836,970)
Net Recreation Revenue ($587,498) ($567,146) ($1,154,644)
Total ($3,182,498) ($7,015,081) ($6,536,084) ($16,733,663)
Defining the longer-term impact is more challenging, as it depends upon how quickly normal business resumes,
how employment levels recover, and what the post-COVID environment looks like. It could be that City
revenues will not return to pre-COVID levels until late Fiscal year 2020-21 or even the following year. The
recovery for sales tax will likely take much longer, potentially over five years.
Additionally, if financial markets remain volatile because of the pandemic, it is likely that pension costs wil l rise,
and unfunded liabilities will grow. While the City of Dublin is currently well-positioned to weather a hit similar
to the last rate hike, it will be important for us to be prepared for extraordinary cost increases.
With all of this in mind, the Fiscal Years 2020-21 and 2021-22 Budget includes the following:
- Reduced General Fund revenues as shown above, with the assumption of businesses re-opening
beginning in June 2020
- Reduced recreation services through Summer 2020 (related revenue and expenditures)
- Reduced development services (related revenue and contracted expenditures)
- $1 million per year funding set aside for the pension liability
- A reduction to fuel tax revenues that fund streets projects (Gas Tax reduced by 20%, ACTC -related
revenue reduced by 10%)
With these adjustments, the City’s fiscal position still remains relatively strong in the short term, with the General
Fund in a surplus position for the budget cycle. However, as the world emerges from COVID shutdowns and
the “new normal” is defined, there will likely be further adjustments needed to the budget and 10-Year Forecast.
Budget Overview
The Budget includes citywide revenues1 of $124.5 million in Fiscal Year 2020-21 and $121.7 million in Fiscal
Year 2021-22. Expenditure2 proposals total $126.7 million and $119.6 million in Fiscal Years 2020-21 and 2021-
22, respectively. The total citywide fund balance is projected at $282.4 million, and $284.5 million in Fiscal Years
2020-21 and 2021-22, respectively. All fund balances are projected in the positive, with the exception of grant
funds, which are reimbursed after expenditures are incurred, and the Public Facility Fees Fund, due to the timing
difference in the collection of fees and the construction of parks and facilities.
1 Governmental Funds and Internal Service Funds. Excludes Transfers In and Fiduciary Funds.
2 Governmental Funds and Internal Service Funds. Excludes Transfers Out and Fiduciary Funds .
Letter City of Dublin Fiscal Years 2020-21 and 2021-2 Budget Page B-3
The General Fund Budget is balanced in both years, with a projected addition to reserves of $8.1 million in the
first year, and $6.4 million in the second year. Though Property Tax continues to show some growth in both
years,
Sales Tax, development revenue, and interest earnings are projected to be significantly lower due to the impact
of COVID-19 as discussed above. On the expenditure side, a budget reduction of roughly $1.1 million in
personnel costs is projected in Fiscal Year 2020 -21 as the net result of a reduction of Parks and Community
Services temporary salaries, increased PERS costs, and significant savings in retiree health costs. Contracted
Services costs (Police, Fire and Maintenance) continue to rise, increasing a combined 3.9% and 4.3% in the first
and second year, respectively.
General Fund 10-Year Forecast
An update to the General Fund 10-Year Forecast was presented to the City Council on March 4, 2020. At that
point, a General Fund deficit was projected by Fiscal Year 2029-30, due largely to the rising cost of contracted
services, and a decrease over time in development revenues. However, incorporating the impacts of COVID-
19 brings the operating deficit forward by three years to Fiscal Year 2026-27 ($1.0 million). The assumptions
used in the Forecast are discussed in the Forecast section below.
Short-Term Priorities and Factors
The following is a discussion of the short-term considerations addressed in the two-year budget.
1. Brace for long-term impacts of COVID-19
The City’s conservative budgeting approach has allowed for the establishment of healthy reserves for a variety
of short- and long-term needs. In prior budget cycles, surpluses were used to shore up reserves for future capital
projects, unfunded liabilities, and contingencies. In planning for the post-COVID environment, of particular
concern is the potential for slow recovery to sales tax, and whether there will be additional losses in property tax
revenue, which is less reactive in the short term to an economic downturn. It is also likely that we will see an
increase in the City’s pension liability and associated ongoing costs. Accordingly, the two-year budget does not
include any new programs or significant enhancements above baseline costs, and the focus of quarterly financial
reviews will include a measurement of how well the City is prepared to weather a recession.
2. Use surplus reserves for large scale future projects, unfunded liabilities, and asset replacements
In the last year, the City utilized reserve surpluses to set aside new General Fund reserves for the following:
- Downtown Public Improvements: increased by $1.0 million to $4.0 million total
- Fallon Sports Park: increased by $3.0 million to $3.1 million total
- Don Biddle Community Park: created a new reserve, $1.0 million total
- Catastrophic Loss: increased by $1.0 million to $15.8 million total in preparation for adding the new
Public Safety Complex to the City’s asset inventory
- Pension and OPEB: increased by $2.0 million to $14.0 million total to protect the City against the impacts
of potential lowered CalPERS discount rates
- Civic Center Renovation: increased by $1.0 million to $3.0 million total
- Contribution to Internal Service Funds: increased by $500,000 to $1.0 million total to cover planned
transfer from General Fund to Internal Service Funds for capital asset replacements
Letter City of Dublin Fiscal Years 2020-21 and 2021-2 Budget Page B-4
At the second City Council meeting in June 2020, Staff will propose that the surplus anticipated at the end of the
current Fiscal Year be shifted appropriately to contingency reserves and/or be used to pay down unfunded
liabilities. Additionally, in accordance with direction provided at the City Council meeting of May 19, 2020, the
City will shift approximately $3.7 million in General Fund Committed Reserves and $300,000 in Internal Service
Funds to cover the increased cost of the new Cultural Arts Center project.
3. Work with contracted service agencies on containing long-term costs
The rising cost of contract services (which make up 65% of the total General Fund Operating Budget) is one of
the primary factors in the projected operating deficit in the 10-Year Forecast. Contracts for police, fire, and
maintenance services are rising 5.7%, 2.4% (excludes one-time capital asset cost), and 5.4%, respectively, in the
Fiscal Year 2020-21 Budget. Much of the public safety increase is related to salary and benefit provisions, which
are typical to the nature of the work, whereas the increase in maintenance costs is related to adding inventory
(e.g. new parks) to the City’s list of assets to be maintained.
Staff will continue working in partnership with the Alameda County Sheriff’s Office, the Alameda County Fire
Department, and MCE each year to contain costs where possible, while providing for a safe, well -maintained
community.
4. Initiate and/or complete key capital improvement projects
The 2020-2025 Capital Improvement Program (CIP) Budget addresses several new large-scale City-built facilities,
parks, and streets projects that will be significant to the community. The new projects will impact the City’s
ongoing maintenance and replacement budgets. The separate CIP document contains a description of all
projects, current and planned, in the next five years. The following is a highlight of large-scale and new projects.
Civic Center improvement projects which include Civic Center HVAC and Roof Replacement and Civic
Center Rehabilitation provide for the planning, design, and construction of various rehabilitation and
renovation projects, replacement of the heating, ventilation, and air conditioning (HVAC) system and controls,
roof replacement, associated building modifications, and code compliance upgrades for City Hall and the Cultural
Arts Center within the Civic Center complex. The total budget for both projects is $6.8 million , funded by the
General Fund and Internal Service Funds.
The Cultural Arts Center, included in the CIP beginning in Fiscal Year 2019-20, renovates a 13,000-square-
foot space on the first floor of Civic Center formerly occupied by Dublin Police Services . The improved facility
will offer cultural, educational and social opportunities for the community, including gallery space, a black box
theater; multi-purpose art and music classrooms; a dance studio; and restrooms. The current budget is $5.9
million, funded by Public Facility Fees funds. With City Council approval of the schematic design, a budget
adjustment of $4.1 million is needed to fund additional identified programmatic elements and needed structural
upgrades in the project. At the June 16, 2020 City Council meeting, Staff will present a recommendation shifting
$3.7 million from General Fund Committed Reserves for this purpose, with the balance appropriated from
Internal Service Funds.
A third phase to Fallon Sports Park is included in the CIP and addresses the design and construction of the
remaining 14 acres of Fallon Sports Park, referred to as the Upper Terrace. The total project budget is $10.6
million, funded by the Public Facility Fees Fund.
Letter City of Dublin Fiscal Years 2020-21 and 2021-2 Budget Page B-5
There are also two park improvement projects, Parks Playground Replacement and Restrooms
Replacement, included in the Five-Year CIP that provide for new playground equipment and renovation of
existing restrooms at various parks. The combined budget for the two projects is $2.4 million, funded by the
General Fund.
The new Five-Year CIP also includes several major street improvement projects, including Dublin Boulevard
Extension - Fallon Road to North Canyon Parkway, which provides for construction of the 1.5-mile
extension of Dublin Boulevard from Fallon Road to North Canyons Parkway in Livermore. The total project
budget is $111.1 million, funded by a combination of special revenue funds and Traffic Impact Fee Fund.
Roughly $102.0 million is anticipated in future years (beyond the five-year CIP), and does not currently have an
identified funding source. The Iron Horse Trail Bridge at Dublin Boulevard provides for the construction
of the Iron Horse Trail bridge for bicycles and pedestrians over Dublin Boulevard. The total project cost is
$10.1 million, with the majority of the project funded by a Measure BB Grant. And, the Tassajara Road
Realignment and Widening - Fallon Road to North City Limit provides for the planning and preliminary
engineering to define a new roadway alignment for Tassajara Road between North Dublin Ranch Drive and the
City and Contra Costa County limit. The project also provides for the design and construction of a realigned
Tassajara Road from Fallon Road to the northern City limit, which will be coordinated with Contra Costa County.
The total project budget is $12.8 million, funded primarily by Traffic Impact Fees.
Lastly, the new Five-Year CIP includes four projects (listed below) that are planned to be funded by the Public
Facility Fees Fund, however, the Fund does not have sufficient cash flow within the five-year period to cover
these. Staff and the City Council discussed this at the Strategic Planning meeting of March 4, and it was ultimately
decided to fund the latter three using General Fund surpluses that were anticipated pre-COVID. Now, with the
revenue budget losses and unknown financial recovery period, Staff is recommending utilizing half of expected
surpluses over Fiscal Years 2019-20, 2020-21, and 2021-22 to complete these projects within the five-year CIP
timeframe. The Iron Horse Nature Park project will remain in the CIP but will require additional funding
(potentially from grants) and coordination with Zone 7 in order to proceed.
- The Iron Horse Nature Park and Open Space: 12.13 acres of nature park and open space adjacent to
the Iron Horse Trail, from the Dublin/San Ramon city limit to the confluence of Amador and South San
Ramon Creeks, that will be developed in partnership with Zone 7 Water Agency ($11.6 million);
- Wallis Ranch Community Park: 8.85 acres in the Wallis Ranch development with a play area, picnic
facilities, turf area, natural area, restrooms, pathways, lighting, and irrigation and landscaping ($6.7
million);
- Library Tenant Improvements Project: renovation of 5,150 square feet of currently unoccupied space
within the building for both library and community use ($1.8 million); and
- Jordan Ranch Neighborhood Square: 2.0 acres in the Jordan Ranch development ($1.5 million).
Fiscal Year 2020-21 Budget: The Details
REVENUES
Citywide revenues total $124.5 million in Fiscal Year 2020-21 (including internal service funds, excluding
transfers in and Fiduciary Funds), representing an increase of $3.2 million from the Fiscal Year 2019-20 Amended
Budget. This revenue amount reflects the net result of a decrease in General Fund revenues due to the fiscal
impact of COVID-19 and the receipt of grants for streets improvement projects.
Total General Fund revenues are budgeted at $92.3 million, a decrease of $2.8 million from the Fiscal Year 2019 -
20 Amended Budget.
Letter City of Dublin Fiscal Years 2020-21 and 2021-2 Budget Page B-6
Highlights:
• Property Taxes and Sales Taxes remain the City’s largest ongoing revenue sources, accounting for 54%
of total governmental fund revenues in FY 2020-21.
• General Fund revenues are decreasing $2.8 million, due to the net impact of a slight increase in Property
Tax, and significant decrease in Sales Tax and interest earnings.
• Development revenues in the General Fund will decline by $1.0 million due to the slowdown of
development activities.
• Sales Tax and Measure B/BB Sales Tax revenues have also been impacted by COVID-19. It is currently
projected that Gas Tax will decline by 20% and Measure B/BB Funds by 10% as compared to the
preliminary budget from early March. This results in a decrease of $290,000 from the Fiscal Year 2019 -
20 Amended Budget.
• Grant funding is increasing by a net $1.9 million in Fiscal Year 2020-21, due primarily to the funding of
a Measure BB grant for the Iron Horse Trail Bridge project.
• The Garbage Service Fund is projected to increase by $1.7 million in Fiscal Year 2020 -21 due to a new
garbage service contract with AVI and an increase in rates. The related increase to franchise fees in the
General Fund is $730,000.
OPERATING EXPENDITURES
The Fiscal Year 2020-21 Budget totals $98.01 million in all funds (including internal service fund purchases,
excluding transfers out and Fiduciary Funds). This is made up of operating appropriations of $94.4 million
and $3.7 million is Internal Service Fund costs, which include equipment purchases and Information
Technology costs. The Fiscal Year 2020-21 Budget also includes CIP appropriations totaling $28.6 million.
The Fiscal Year 2020-21 General Fund operating budget, excluding transfers to capital improvement
projects, totals $82.1 million, with ongoing revenues covering ongoing expenditures by $10.3 million. Most
operational departmental expenditure budgets are adjusted each year in a relatively consistent manner, that
is, they change with CPI adjustments, or are increased by another specific known factor.
Examples are:
- Personnel costs are driven by the provision of salaries and benefits as approved by the City Council.
Pension and retiree health rates are set by CalPERS and actuaries. The Budget incorporates the City’s
most recently increased rates and includes an additional lump sum payment towards the pension liability,
as discussed below.
- Supplies and Services remain generally static across departments.
- Capital Outlay budgets remain generally static across departments, unless there are one-time planned
purchases, such as for new software or equipment. The Fiscal Year 2020-21 Budget contains a reduction
of $240,000 in such purchases from the prior year Adopted Budget.
Highlights:
Personnel
The two-year budget reflects an updated position allocation plan, projected salaries, health rates, and retirement
benefits. Total personnel costs are projected to decrease $1.1 million (-5.2%) in the first year and increase $1.7
million (8.5%) in the second year. This is due primarily to the net impact of a reduction in temporary salaries
related to parks and recreation programs that have been suspended, and a decrease in required retiree health
Letter City of Dublin Fiscal Years 2020-21 and 2021-2 Budget Page B-7
contributions in the first year. In the second year, temporary salaries associated with recreation programs have
been added back, while PERS and group health rate increases have been incorporated.
While pension costs continue to increase, $300,000 in Fiscal Year 2020-21 and additional $195,000 in Fiscal Year
2021-22, retiree health payments are decreasing significantly, due to the City’s capping of the benefit plan for
new hires (after January 1, 2016). Staff had initially projected savings of $4.0 million over 15 years, but with nearly
a quarter of the City workforce turning over in the last two years, the savings from the capped benefit are being
realized earlier than anticipated. Staff now expects savings of $6.9 million over the same 15-year period.
Contracted Services Costs
In Fiscal Years 2020-21 and 2021-22, total contract services make up 65% of the overall General Fund
expenditure budget. Public Safety contract costs make up 44% of the total operating budget.
The following table shows changes to contracted services costs in the General Fund, with details shown in the
General Fund Section of this document. Budget increases incorporate cost-of-living adjustments in Public Safety,
and new inventory added to the service contract for maintenance.
(1) Police and Fire liability insurance amounts are not included above; they are included in Services & Supplies.
RESERVES
Total General Fund reserves are projected at $168.9 million at the end of Fiscal Year 2019-20, a decrease of $10.4
million over Fiscal Year 2018-19. The unassigned/available cash flow reserve is projected at $75.4 million, before
any designation by the City Council to specific Committed reserves, and before Staff completes the necessary
accounting adjustments to reserves at the end of the current Fiscal Year. The City Council will make reserve
designations during the City Council meeting of June 16, 2020.
2020-2025 Capital Improvement Program
The 2020-2025 CIP totals $90.9 million over the five-year period. The General Fund contribution for the CIP
period is $8.8 million, primarily for Green Stormwater Infrastructure ($2.2 million), Civic Center Rehabilitation
($1.3 million), Parks Playground Replacement ($1.4 million), Restrooms Replacement ($1.0 million), Resiliency
and Disaster Preparedness Improvements ($703,095), and other miscellaneous projects totaling $2.1 million.
The chart below illustrates total CIP expenses by funding source-type.
* Contracted Services Detail
Adopted
2019-20
Amended
2019-20
Budget
2020-21
Forecast
2021-22
Police Services (1)20,096,213 20,201,920 21,298,390 22,337,368
Fire Services (1)13,747,665 13,747,665 14,290,786 14,917,637
Maintenance Services (MCE)5,318,478 5,379,678 5,736,379 5,875,336
Development 5,171,018 5,278,823 4,616,073 4,364,288
Other Contracted Services 6,320,609 7,691,436 7,111,538 7,026,286
Total Contracted Services 50,653,983$ 52,299,522$ 53,053,166$ 54,520,915$
Letter City of Dublin Fiscal Years 2020-21 and 2021-2 Budget Page B-8
CIP Expenses, All Funds
FINANCING 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025
Five-Year
Total
General Fund $1,231,570 $2,285,550 $2,485,780 $2,445,855 $327,715 $8,776,470
Special Revenues $9,153,717 $3,002,559 $3,224,329 $3,224,329 $2,925,309 $21,530,243
Special Revenue -
Assessment Districts $40,106 $40,106 $40,106 $40,106 $40,106 $200,530
Special Revenue - Public
Art Fund $100,450 $400,000 $500,450
Traffic Impact Fees $7,887,221 $1,865,096 $20,630 $112,260 $815,360 $10,700,567
Public Facilities Fees $8,955,001 $11,165,700 $3,204,719 $2,502,150 $4,117,200 $29,944,771
Internal Service Funds $220,000 $1,563,638 $90,000 $1,873,638
Dublin Crossing Fund $1,000,000 $1,000,000
Other $1,496,676 $1,496,676
Developer Built $3,742,556 $3,742,556
Unidentified $3,591,000 $3,078,000 $4,482,000 $11,151,000
General Fund $1,231,570 $2,285,550 $2,485,780 $2,445,855 $327,715 $8,776,470
TOTAL
FINANCING $30,084,741 $27,656,205 $12,143,564 $8,324,700 $12,707,690 $90,916,900
Highlights:
Below is a list of projects over $1.0 million with new anticipated funding in the next five years, with
the funding sources indicated. The cost listed does not include existing budgets in Fiscal Year 201 9-
20. Those details can be found in the separate CIP document.
General Improvements
- Civic Center HVAC and Roof Replacement: $1.7 million (General Fund, ISF)
- Civic Center Rehabilitation: $1.3 million (General Fund)
- Cultural Arts Center: $5.0 million (Public Facility Fees)
- Library Tenant Improvements: $1.8 million (Public Facility Fees, ISF, General Fund advance)
Parks
- Fallon Sports Park - Phase 3: $7.4 million (Public Facility Fees)
- Iron Horse Nature Park and Open Space: $11.6 million (Public Facility Fees, Unidentified)
- Jordan Ranch Neighborhood Square: $1.5 million (Public Facility Fees, General Fund
advance)
- Parks Playground Replacement: $1.4 million (General Fund)
- Restrooms Replacement: $1.0 million (General Fund)
- Wallis Ranch Community Park: $6.7 million (Public Facility Fees, General Fund advance)
Streets
- Annual Street Resurfacing: $11.0 million (Special Revenue Funds, General Fund)
- Citywide Bicycle and Pedestrian Improvements: $2.1 million (General Fund, Special Revenue
Funds)
- Citywide Signal Communications Upgrade: $1.3 million (Special Revenue Funds, Traffic
Impact Fees, ISF)
Letter City of Dublin Fiscal Years 2020-21 and 2021-2 Budget Page B-9
- Dublin Boulevard Extension - Fallon Road to North Canyon Parkway: $7.2 million (Special
Revenue Funds, Traffic Impact Fees, Other, Unidentified)
- Green Stormwater Infrastructure: $2.2 million (General Fund)
- Iron Horse Trail Bridge at Dublin Boulevard: $8.6 million (Special Re venue Funds, Dublin
Crossing Fund)
- St. Patrick Way Extension: $3.7 million (Developer Build)
- Tassajara Road Realignment and Widening - Fallon Road to North City Limit: $10.8 million
(Special Revenue Funds, Traffic Impact Fees, Other)
10-Year General Fund Forecast
As discussed above, while the General Fund operating budget is balanced in the two -year budget
period, the 10-Year Forecast shows a projected operating deficit of $1.0 million in Fiscal Year 2026 -
27, as illustrated in the table below.
10-Year Forecast ($ in thousands)
In developing the Forecast, Staff continued the practice of conservatively projecting revenues, and
growing expenditures using historical information. While predicting economic health in the long term
is challenging, we believe that at this time, the forecast is a fair representation of the City’s potential
financial future. The following are the assumptions used in the Forecast, for Fiscal Years 2022 -23
onward. It is important to note that the adjustments (growth or declines) are built upon the currently
Letter City of Dublin Fiscal Years 2020-21 and 2021-2 Budget Page B-10
anticipated two-year impacts of COVID-19. A significant continuation of the shutdowns will
necessitate an update to the Forecast.
10-Year Revenues
Property Tax
• CPI adjustment: 2% increase (out of a maximum of 2%) on all existing non -Prop 8 homes
throughout Forecast.
• Transfer of ownerships: growth based on historical averages.
• Prop 8 recapture: minimal increase due to large Prop 8 recapture already occurring.
Sales Tax
• Growth factor: 3.0% from FY 2022-23 onward.
• No new large sales tax generators included.
• All sharing agreements have been factored in.
Development Revenues
• Steady decline of 5-10% per year as the community nears build-out.
Charges for Services
• 1% increase per year as an inflationary factor.
10-Year Expenditures
Personnel
• No new positions.
• COLA: up to 3% annually; Merit Pay: up to 3% annually, beginning FY 2022-23.
• Benefit increases according to actuarial estimates (increased PERS rates incorporated, along
with decreased retiree health costs)
• $1 million per year funding for PERS unfunded liability and rate hike protection.
Contracted Services
• Annual increase to Police Services Costs: 5.5% - addition of a deputy in each year beginning
FY 2022-23.
• Annual increase to Fire Services: 5.0%
• Annual increase to Maintenance Services: 4.0%
• Annual increase to all other: 4.0%
Preventative Maintenance
• $1.0 million per year
Conclusion
Since the recession of 2009, the City has been fortunate to experience healthy growth in our major
ongoing revenue categories. We have fully funded City operations, enhanced public safety services,
kept our streets in excellent condition, and opened new parks and facilities. At the same time, we have
consistently used surpluses to supplement City reserves for contingencies. As such, we are well -
Letter City of Dublin Fiscal Years 2020-21 and 2021-2 Budget Page B-11
positioned, relative to many other agencies, to withstand the currently expected impacts of the
COVID-19 pandemic. As we move through this crisis and into a “new normal,” we remain
committed to identifying budget solutions that will ensure the long-term fiscal health of this
organization.
I want to thank the City of Dublin staff for their dedication to this community, made evident by the
excellent work they do every day. I would also like to express my gratitude to the City Council for its
leadership and guidance during these challenging times.
Respectfully,
Linda Smith
City Manager
June 2, 2020 - Agenda Item No. 6.3
Due to the size of this attachment, please use link below to view in
full
Attachment 2 – Proposed Budget Fiscal Years 2020-21 and 2021-22
RESOLUTION NO. XX-20
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
***************************
ADOPTING A BUDGET FOR THE CITY OF DUBLIN FOR FISCAL YEAR 2020-21
WHEREAS, the City Council of the City of Dublin desires to establish a Budget for Fiscal
Year 2020-21; and
WHEREAS, the City Council has reviewed and considered the Budget documents and
has received input from the public; and
WHEREAS, the City Manager has prepared a balanced budget which provides for
organizational adjustments and allocation of resources in a manner which aligns with available
resources and the Strategic Plan elements; and
WHEREAS, the General Fund Operating Budget is balanced without the need to draw
from the Reserve for Economic Stability in order to balance funding with planned expenditures;
and
WHEREAS, the City Council is required to adopt a budget and financial plan before the
Fiscal Year begins on July 1, 2020; and
WHEREAS, the Summary of Appropriations (Exhibit A) attached hereto and made part
of this Resolution, reflects the Fiscal Year 2020-21 Budget for Governmental and Proprietary
Funds for the City of Dublin; and
WHEREAS, the City Council desires to confirm adjustments made administratively to the
Capital Improvement Project balances during the preparation of the Proposed Budget and
accommodate the carryover of unspent Fiscal Year 201 9-20 Capital Improvement Project
appropriations, for those projects where work and expenditures will continue in Fiscal Year 2020-
21; and
WHEREAS, the City Council desires to accommodate a process the carryover of unspent
Fiscal Year 2019-20 operating expenditures, both encumbered and une ncumbered, excluding
personnel costs, for activities where work and expenditures will continue in Fiscal Year 20 20-
21; and
WHEREAS, The City Council desires to delegate the authority to appropriate Internal
Service fund balances that have been set aside for facilities, vehicle, and equipment
replacement purposes to the City Manager in Fiscal Year 2020-21.
WHEREAS, The City Council also desires to delegate the authority to appropriate
Committed and Assigned fund balances that have been approved by the City Council for specific
purposes to the City Manager in Fiscal Year 20 20-21.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby:
1. Adopt the Fiscal Year 2020-21 Budget Appropriation for the City of Dublin, as outlined in
Exhibit A;
2. Authorize the City Manager to make expenditures appropriations in accordance with the
Budget as adopted, with the exception of those expenditures which require prior City
Council approval, in accordance with the adopted City ordinances, rules and regulations;
3. Authorize the City Manager to transfer budgeted amounts between line items, provided
that the transfer is within the same fund, regardless of the specific department activity.
This includes the authority to transfer from the General Fund budgeted contingency
amounts that are approved by the City Council during the budget adoption . A full
accounting of any such transfers will be provided to the City Council during the quarterly
financial reviews;
4. Recognize that the Budget as presented also includes a Contingency for Fiscally
Responsible Adjustments, the utilization of which will be determined by fiscal outcomes
of June 30, 2020;
5. Authorize the City Manager to increase revenue and expenditure budget for various
departmental functions, when corresponding revenues comes in over budget: this would
apply to developmental activity, inspection activity, recreation program activity, and any
other departmental activity which generates correlating revenues, as verified by the
Administrative Services Director. Increased appropriations shall continue to be
documented in the financial records and conveyed to the City Council as part of the
quarterly financial reviews;
6. Authorize the City Manager to increase revenues and expenditures related to the award
of grants, where there is no net impact to the City, as verified by the Administrative
Services Director. Increased appropriations shall continue to be documented in the
financial records and conveyed to the City Council as part of the quarterly financial
reviews;
7. Authorize the City Manager to make transfers among the various funds, consistent with
the “Fund Balances FY 2020-21” as presented in the Proposed Budget. Fund transfers
are reported as part of the regular financial reports provided to the City Council;
8. Authorize the City Manager to increase the appropriations for Fiscal Year 2020-21
expenditures in an amount not to exceed the amount of funds encumbered or designated
by the City Manager as needed for expenses that did not occur prior to the year -end, but
are expected to be expended in Fiscal Year 2020-21 consistent with the original purpose.
This ability to carry-over funding shall not apply to savings from personnel services and
shall only occur if the Department Activity total for non-personnel expenditures was less
than the amount budgeted for the same. This must also be evaluated on a fund by fund
basis. The actual amount of the increased appropriation shall be reported to the City
Council, and the City Manager may assign the fund balance in an amount suffici ent to
account for the increase;
9. Authorize the City Manager to adjust the Fiscal Year 2020-21 appropriations to account
for the carryover of unspent Capital Improvement Project appropriations from Fiscal Year
2019-20. All such adjustments shall be clearly recorded in the City financial records and
shall only be for projects that remain incomplete as of June 30, 2020; and
10. Authorize the City Manager to transfer funds between capital projects, within the same
funding source. Any revisions, which alter the project’s budget by adding a new funding
source, are to be approved by the City Council.
11. Authorize the City Manager to appropriate funds from Committed and Assigned fund
balances that have been approved by the City Council for specific purposes.
12. Authorize the City Manager to appropriate funds from Internal Servi ce Funds that have
been set aside for facilities, vehicle, and equipment replacement purposes.
PASSED, APPROVED AND ADOPTED this 2nd day of June 2020.
AYES:
NOES:
ABSENT:
________________________________
Mayor
ATTEST:
____________________________
City Clerk
EXHIBIT A
FISCAL YEAR 2020-21 SUMMARY OF APPROPRIATIONS
(Governmental and Proprietary Funds)
OPERATING PROGRAMS APPROPRIATIONS
Governmental Funds
City Council $536,898
City Manager $2,923,195
City Clerk $881,131
Human Resources $1,815,914
City Attorney $987,780
Administrative Services $1,938,346
Non-Departmental $13,593,193
Community Development $6,789,974
Fire Department $15,160,725
Police Department $24,602,519
Parks & Community Services $8,869,776
Public Works $16,319,930
Total Governmental Funds $94,419,381
Proprietary Funds
Information Services $2,015,544
Parks & Community Services $24,931
Non-Departmental $1,613,059
Total Proprietary Funds $3,653,535
Total Operating Programs $98,072,915
CAPITAL IMPROVEMENT PROGRAM
General $599,150
Public Art $100,450
Parks $8,998,866
Streets $18,889,599
Total Capital Improvement Program (1) $28,588,065
(1) Includes City funded project costs only
RESOLUTION NO. XX - 20
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * *
ESTABLISHING A SALARY PLAN FOR FULL-TIME PERSONNEL IN ACCORDANCE WITH
THE PERSONNEL RULES
WHEREAS, the City Council has adopted a Salary & Benefit Plan pursuant to the
Personnel System Rules; and
WHEREAS, the City Council adopted Resolution No. 51-19 and subsequent
amendments which establish a Salary Plan for full -time personnel in accordance with the
Personnel System Rules; and
NOW, THEREFORE, BE IT RESOLVED that the following salary provisions shall be
established in accordance with City’s Personnel System Rules.
BE IT FURTHER RESOLVED that any previous enacted salary provisions contained in
Resolution No. 51-19 and subsequent amendments shall be superseded by this Resolution.
ARTICLE I: SALARY PROVISIONS
SECTION A: REGULAR EMPLOYEES EXEMPT FROM FAIR LABOR STANDARDS ACT
(FLSA) OVERTIME PROVISIONS
Employees covered under this Section shall be paid a monthly salary within the following ranges
with the exclusion of any Performance Pay Adjustment granted in accordance with the
Personnel System Rules. In the event that it is deemed by the City Manager to be in the best
interest of the City, temporary appointments of no more than 6 months, where the work
assignments are such that they can be completed with less than a 40-hour week, may be
approved based upon hourly rates. The total salary paid for such work shall not be less than the
“salary test” required for an exemption under the FLSA.
Monthly
Minimum
Monthly
Maximum
Accountant $8,578 $10,725
Assistant Civil Engineer $8,728 $10,910
Associate Civil Engineer $10,151 $12,689
Associate Planner $8,578 $10,725
Budget Analyst $9,445 $11,806
City Clerk $10,862 $13,577
Deputy City Clerk $7,400 $9,250
Environmental Coordinator $8,212 $10,267
Executive Aide $7,400 $9,250
Financial Analyst $9,445 $11,806
Housing Specialist $9,445 $11,806
Management Analyst II $8,212 $10,267
Network Systems Coordinator $8,212 $10,267
Parks & Facilities Development Coordinator $8,578 $10,725
Plans Examiner II $8,212 $10,267
Recreation Supervisor $8,377 $10,468
Senior Accountant $9,445 $11,806
Senior Management Analyst $9,445 $11,806
Senior Civil Engineer $11,373 $14,216
Senior Planner $9,776 $12,221
SECTION B: REGULAR EMPLOYEES COVERED BY OVERTIME PROVISIONS OF THE
FLSA.
Employees covered under this Section shall be paid hourly wages within the following ranges
with the exclusion of any Performance Pay Adjustment granted in accordance with the
Personnel System Rules. The monthly salaries are shown for informational purposes only.
Monthly
Minimum
Monthly
Maximum
Hourly
Minimum
Hourly
Maximum
Administrative Aide $7,047 $8,810 $40.6532 $50.8264
Administrative Technician $6,407 $8,008 $36.9629 $46.1986
Assistant Planner $7,597 $9,495 $43.8315 $54.7760
Code Enforcement Officer $6,837 $8,546 $39.4430 $49.3037
Environmental Technician $7,116 $8,899 $41.0521 $51.3384
Finance Technician I $5,385 $6,731 $31.0650 $38.8313
Finance Technician II $5,985 $7,479 $34.5292 $43.1466
Graphic Design & Comm. Coordinator $7,116 $8,899 $41.0521 $51.3384
Heritage Center Director $7,116 $8,899 $41.0521 $51.3384
Information Systems Technician I $6,146 $7,684 $35.4601 $44.3302
Information Systems Technician II $6,830 $8,538 $39.4032 $49.2573
Management Analyst I $7,392 $9,239 $42.6479 $53.3000
Office Assistant I $4,557 $5,697 $26.2909 $32.8669
Office Assistant II $5,064 $6,330 $29.2165 $36.5173
Permit Technician $6,407 $8,008 $36.9629 $46.1986
Plans Examiner I $7,448 $9,308 $42.9671 $53.6989
Public Works Inspector $7,822 $9,777 $45.1281 $56.4051
Public Works Technician I $6,770 $8,462 $39.0574 $48.8184
Public Works Technician II $7,448 $9,308 $42.9671 $53.6989
Recreation Coordinator $7,116 $8,899 $41.0521 $51.3384
Recreation Technician $6,407 $8,008 $36.9629 $46.1986
Senior Code Enforcement Officer $7,597 $9,495 $43.8315 $54.7760
Senior Finance Technician $6,830 $8,538 $39.4032 $49.2573
Senior Office Assistant $5,570 $6,962 $32.1356 $40.1677
Senior Public Works Inspector $8,604 $10,755 $49.6409 $62.0456
BE IT FURTHER RESOLVED that the changes contained herein shall be effective July
1, 2020.
PASSED, APPROVED AND ADOPTED this 2nd day of June 2020.
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
RESOLUTION NO. XX- 20
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
* * * * * * * * *
ESTABLISHING A SALARY PLAN FOR MANAGEMENT POSITIONS EXEMPT FROM
COMPETITIVE SERVICE
WHEREAS, the City Council has adopted a Salary & Benefit Plan pursuant to the Personnel
System Rules; and
WHEREAS, the City Council adopted Resolution No. 52-19 and subsequent amendments
which establish a Salary Plan for full-time management positions exempt from competitive service
in accordance with the City’s Personnel System Rules; and
NOW, THEREFORE, BE IT RESOLVED that the following salary provisions shall be
established in accordance with City’s Personnel System Rules.
BE IT FURTHER RESOLVED that any previous enacted salary provisions contained in
Resolution No. 52-19 and subsequent amendments shall be superseded by this Resolution.
ARTICLE I: SALARY PROVISIONS
A. REGULAR EMPLOYEES EXEMPT FROM FAIR LABOR STANDARDS ACT (FLSA)
OVERTIME PROVISIONS
Monthly
Minimum
Monthly
Maximum
Administrative Services Director $15,446 $19,308
Assistant City Manager $16,621 $20,773
Assistant Dir. of Community Development $12,126 $15,157
Assistant Parks & Community Services Director $12,126 $15,157
Assistant Dir. of Admin Svcs/Finance $12,126 $15,157
Assistant to the City Manager $11,070 $13,838
Capital Improvement Program Manager $11,993 $14,991
Chief Building Official $11,993 $14,991
City Clerk/Records Manager $11,070 $13,838
Assistant Public Works Director/City Engineer $12,912 $16,140
City Manager
$24,238
Community Development Director $14,978 $18,724
Communications Manager $11,070 $13,838
Economic Development Director $12,126 $15,157
Economic Development Director/Public Information Officer $13,920 $17,401
Heritage & Cultural Arts Manager $11,070 $13,838
Human Resources Director $13,920 $17,401
Human Resources Manager $11,070 $13,838
Information Systems Manager $11,070 $13,838
Parks & Community Services Business Manager $11,070 $13,838
Parks & Community Services Director $15,209 $19,009
Plan Check Engineer $11,070 $13,838
Planning Manager $11,744 $14,682
Principal Planner $11,070 $13,838
Public Works Director/Asst City Engineer $14,865 $18,582
Public Works Trans & Ops Mgr. $11,993 $14,991
Public Works Manager $11,070 $13,838
Public Works Maintenance Superintendent $11,070 $13,838
Recreation Manager $11,070 $13,838
Special Projects Manager $11,070 $13,838
BE IT FURTHER RESOLVED that the changes contained herein shall be effective
July 1, 2020.
PASSED, APPROVED AND ADOPTED this 2nd day of June 2020.
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________________
Mayor
ATTEST:
_______________________________________
City Clerk