City of South Lake Tahoe

Early Citizen Budget Input

Finance DepartmentMay 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, 2019City 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, 2019City 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, 2019Early Citizen Budget Input Public Hearing

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

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

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

May 15, 2019Finance 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 DueDepartments submit updated Budget Word Documents to Finance Dept

June 28, 2019CIP Budget Requests received from PW

Finance receives CIP sheets, and prepares graphs and summary sheets

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

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

August 2, 2019Completion of Proposed 2019-2020 Budget

Finance makes changes recommended during Preliminary Budget Review Meetings

August 20, 2019City 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 Fund47%

Special Revenue Funds16%

Capital Project Fund18%

Debt Service Fund3%

Enterprise Fund4%

Internal Service Fund5%

Trust and Agency Fund7%

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 Fundrevenue budget. Total TOT equals39.9% of all general fund revenues. The total TOT does not include Measure PRestricted 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 TaxTOT - Project AreaSales TaxMeasure QOther 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 getsonly 22% of thetotal 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 QCollected 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

2013-2014Actual

2014-2015Actual

2015-2016Actual

2016-2017Actual

2017-2018Actual

2018-2019Amended

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

2013-2014Actual

2014-2015Actual

2015-2016Actual

2016-2017Actual

2017-2018Actual

2018-2019Amended

Budget

PoliceFireGen GovFinanceParks & RecPublic WorksDevelopment SvcsOther Expenses:

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

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2018-2019 General Fund Expenditure Budget

Police22%

Fire 14%

General Government7%

Finance5%

Recreation4%

Public Works11%

Development Services4%

Other33%

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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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