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  • City of South Lake Tahoe

    Early Citizen Budget Input

    Finance Department May 7, 2019

  • • Incorporates a long-term perspective – This will allow for recognition that important projects or initiatives will eventually require funding.

    • Establish links to broad organizational goals - No municipality has an unlimited budget so carefully considering limited resources and how to allocate them properly is an important part of budgeting.

    • Focus decisions on outcomes – Align major budget items to expected outcomes in order to demonstrate why the City is spending funds in a certain way.

    • Involve and promote effective communication with stakeholders – Information about where tax dollars are going and whether or not the City is meeting established goals.

    Building a Budget

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  • Budget Calendar – 2019-2020

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    February 15, 2019 City Council Team Building and Goal Setting Meeting

    CC and DHs met to discuss key issues facing the community, set goals and identify potential pathways and approaches toward achieving 2019 goals

    April 23, 2019

    2019-2020 Budget Instructions and Forms (B/A with Adopted and adjstnts) sent to City Departments

    Departments begin developing 2019-2020 budget requests

    May - June, 2019 City Council budget/capital planning workshop and 5yr plan presentation

    City Council will review and discuss 5yr plan and will assign priorities and desired timeframes for set goals

    May 7, 2019 Early Citizen Budget Input Public Hearing

    Meeting to discuss Citizen top priorities for the 2019-2020 fiscal year

    May 6 - May 23, 2019 Budget Module is open to City Departments

    Departments enter their budget requests using Budget Module (direct budget update)

    May 15, 2019 Finance distributes Departmental Budget Word Document forms

    Departments begin to update description of services for the Budget document

    May 23, 2019 Budget entries and Backup Forms Due

    Departments complete their direct budget update. Departments submit budget backup forms to Finance.

    June 21, 2019 Preliminary Budget

    Finance completes revenue projections and compilation of departmental budgets into preliminary budget; performs review and prepares questions

    June 26, 2019 Budget Word Documents Due Departments submit updated Budget Word Documents to Finance Dept

    June 28, 2019 CIP Budget Requests received from PW

    Finance receives CIP sheets, and prepares graphs and summary sheets

    July 1 - July 10, 2019 Preliminary Budget Review Meetings with CM

    Departments meet with City Manager and Finance Director to review budget requests for 2019-2020 Budget

    August 2, 2019 Completion of Proposed 2019-2020 Budget

    Finance makes changes recommended during Preliminary Budget Review Meetings

    August 20, 2019 City Council Meeting - Budget Workshop

    Presentation of proposed 2019-2020 Budget to City Council for review and discussion

    September 3 or 17, 2019 City Council Meeting Adoption of 2019-2020 Budget

  • On-going • Money we receive yearly used to

    pay for expenses that are on- going for example, salaries and benefits, office expenses and debt service.

    • Examples of on-going revenues are Transient Occupancy Tax (TOT), Sales Tax, Measure Q Transactions tax and Property Tax

    One-Time (Reserves) • Once you use one-time funds they are

    gone and will not necessarily replenish. • Uses of one-time funds are capital –

    building and major repairs, capital – equipment and vehicles, non-recurring or one-time expenses.

    • Some one-time expenses can also be on- going expenses for example the City can budget to replace vehicles yearly or on an as needed basis (one-time).

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    Two “kinds” of money

  • Revenues - All funds

    General Fund 47%

    Special Revenue Funds 16%

    Capital Project Fund 18%

    Debt Service Fund 3%

    Enterprise Fund 4%

    Internal Service Fund 5%

    Trust and Agency Fund 7%

  • Expenses – All Funds

    Special Revenue Funds, 16%

    Capital Projects Fund, 20%

    Debt Service Fund, 3%

    Enterprise Funds, 3%

    Internal Service Funds, 5%

    Trust and Agency Funds, 7%

    General Fund, 46%

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  • Where the money comes from?

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  • Where the money comes from?

    2018-2019 Top 5 General Fund Revenue Types are: • Transient Occupancy Tax (TOT) 25% • Property Tax 18% • Project Area TOT 15% • Sales Tax 12% • Measure Q Tax 6% _____________________ Comprise 75.9% of the $44.8 million General Fund revenue budget. Total TOT equals 39.9% of all general fund revenues. The total TOT does not include Measure P Restricted TOT which should generate $2.3 m for Parks and Recreation.

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  • Where the money comes from? (con’t)

    25.0%

    17.9%

    14.9%

    12.0%

    6.1%

    24.1%

    2018-2019 General Fund Revenues by Type

    City TOT (incl. audits) Property Tax TOT - Project Area Sales Tax Measure Q Other Revenue

    Vehicle License Fees 4.9% Public Services 4.1% Franchise Fees 3.3% Business Tax 3.3% Public Safety 3.5% Recreation 2.5% Miscellaneous 2.5%

    TOTAL 24.1% 9

  • TOT ( Transient Occupancy Tax) • The City receives 12% or 14% of room rate for stays less than 30 days

    (2% restricted for Measure P)

    • 120 hotel/motels remit monthly TOT

    • For the City’s approximately 1,700 vacation home rentals, staff works with 40 property management companies who remit monthly tax, and over 800 individual home owners remit quarterly tax

    • This revenue source is seasonal and thus, inconsistent and remains dependent on tourism; however it is approximately 40% of General Fund revenue received

    • TOT is a good leading indicator of economic activity

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  • El Dorado County, 30% Lake Tahoe

    Unified School District, 26%

    South Tahoe Public Utility District, 11% Lake Tahoe

    Community College, 6%

    Other Agencies,

    5%

    City of South Lake Tahoe,

    22%

    Property Tax Allocation

    The City gets only 22% of the total Property

    Taxes collected by the County.

    Property Tax (1% of Assessed Value, Collected by El Dorado County)

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  • State/County 79.3%

    Public Safety, 6.9%

    Local Trans, 3.4%

    City of South Lake Tahoe,

    10.3%

    .5% of purchase within City Limits

    City receives 10.3% of the 7.25% sales tax collected within the City limits or approximately .75%, but receives 100% of the .5% of Measure Q Transactions and Use Tax.

    MEASURE Q

    Sales Tax and Measure Q Collected by the State of California

    SALES TAX 7.75% RATE

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  • -

    2,000,000

    4,000,000

    6,000,000

    8,000,000

    10,000,000

    12,000,000

    2013-2014 Actual

    2014-2015 Actual

    2015-2016 Actual

    2016-2017 Actual

    2017-2018 Actual

    2018-2019 Amended

    Budget

    TOT Project Area TOT Property Tax Sales Tax Measure Q

    General Fund Revenues: Top 5 Types ($ million) Previous 5 Years Actuals and 2015-2016 Amended Budget

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  • Where does the money go?

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  • General Fund Expenses: By Department ($ million) Previous 5 Years Actuals and 2018-2019 Amended Budget

    -

    2,000,000

    4,000,000

    6,000,000

    8,000,000

    10,000,000

    12,000,000

    14,000,000

    16,000,000

    18,000,000

    2013-2014 Actual

    2014-2015 Actual

    2015-2016 Actual

    2016-2017 Actual

    2017-2018 Actual

    2018-2019 Amended

    Budget

    Police Fire Gen Gov Finance Parks & Rec Public Works Development Svcs Other Expenses:

    - Fund Transfers - Non-Departmental - Emergency Preparedness - Rents & Leases

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  • 2018-2019 General Fund Expenditure Budget

    Police 22%

    Fire 14%

    General Government 7%

    Finance 5%

    Recreation 4%

    Public Works 11%

    Development Services 4%

    Other 33%

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  • 17

    Larger items included in General Fund Expenditure – Other for 2018- 2019 budget year:  Transfer-out to Streets $483,109  Transfer out to Snow $979,340  Transfer out to City CIP $4,890,916  Transfer out to City Debt Service $2,700,000  Transfer out to Successor Agency $2,000,000  PERS unfunded liability (Misc) $1.758,000  Animal Control $470,000  Airport Rent $277,140

    General Fund Expenditures - Other

  • 2019-2020 Budget

    The City of South Lake Tahoe is requesting your help.

    Let us know what your 2019-2020 top priorities are to ensure that all priorities are considered during the budget process.

    Thanks in advance for your insight and suggestions.

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  • QUESTIONS/COMMENTS?????

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