2c. FY21 Budget Presentation — original pdf

Backup

Forecast Presentation May 15, 2020 Presentation Topics • Budget Process • Department Overview -Key Performance Metrics • FY21 Department Forecast • Residential Rates Forecast • CIP Highlights • Clean Community Fee May 15, 2020 Zero Waste Advisory Commission 2 Budget Process • November 2019 – Management Retreat Held – Performance Review and Department Assessment • March 2020 – Financial Forecast Submitted – City timeline for budget approval is compressed • May 2020 – Proposed Budget Due • July 2020 – Proposed Budget Presented to Council • August 2020 – Budget Readings May 15, 2020 3 Department Overview Key Performance Measure FY17 Actuals FY18 Actuals FY19 Actuals FY20 FY20 Amended Estimated Lost Time Injury Rate Per the Equivalent of 100 Employees Percent of Combined Residential Collection Services Collected On-Time Average Customer Satisfaction With the Quality of all Curbside and HHW Services Estimated Percent of Curbside Collected Materials Diverted from Landfills by ARR Percent of URO-Affected Properties Reporting Access to Recycling for Employees and Tenants 0.95 0.24 2.03 0.00 1.0 99.89 99.89 99.89 100 99.89 74 75 75 85 85 37.5 36.8 37.5 38.1 39.0 May 15, 2020 Zero Waste Advisory Commission 86 85 85 85 80 4 Financial Forecast FY 2020 Budget $102.2 M CCF Amend. $1.7 M Cost Drivers $2.1 M New Invest. $0.7 M FY 2021 Budget $106.7 M 5-Year Forecast 114.9 119.6 123.4 127.3 102.2 106.7 29.65 33.90 36.15 36.90 38.70 38.95 15.00 14.00 Budget ($ millions) 14.90 15.50 CIP ($ millions) 15.20 15.20 Typical Rate Payer ∗ Typical Rate Payer data reflects monthly residential rate in dollars Forecast Highlights  Significant rate increase required to bring budget in alignment $4.25/month increase to Base Fee  11 new positions in operations to account for customer growth and to reduce overtime;  $6.75 Base Fee increase projected over the 5 year forecast. May 15, 2020 Zero Waste Advisory Commission 5 Rate Development Goal – for rates/fees to cover total Cost of Service Components of Calculation: – Revenue Offsets – Customers – Direct and Indirect Expenses May 15, 2020 Zero Waste Advisory Commission 6 Cost of Service Components Direct Expenses Indirect Expenses  Cost of equipment, fuel, vehicle maintenance and supplies  Employee costs – Salaries, benefits, taxes, insurance  Internal Indirect  Administrative and Support Staff (Safety, HR, Finance, QA, Executive Management, Strategic Initiatives, Customer Service, Cart Maintenance, etc.)  External Indirect  Corporate Purchasing, Budget, City Manager’s Office, Technology, etc. 7 5-Year Financial Forecast Expenses and Revenue $ In Millions FY20 2021 2022 2023 2024 2025 ESTIMATED FORECAST FORECAST FORECAST FORECAST FORECAST BEGINNING FUND BALANCE $ 16.7 $ 11.5 $ 11.4 $ 11.3 $ 10.9 $ 11.2 REVENUE & TRANSFERS IN $ 96.5 $ 106.6 $ 114.8 $ 119.2 $ 123.7 $ 125.4 EXPENSES & TRANSFERS OUT $ 101.7 $ 106.7 $ 114.9 $ 119.6 $ 123.4 $ 127.3 CHANGE IN FUND BALANCE $ (5.2) $ (0.1) $ (0.1) $ (0.5) $ 0.3 $ (1.9) ENDING FUND BALANCE $ 11.5 $ 11.4 $ 11.3 $ 10.9 $ 11.2 $ 9.3 FTEs 470 481 518 525 534 539 8 Residential Rates AMENDED FORECAST FORECAST FORECAST FORECAST FORECAST CLEAN COMMUNITY FEE 2020 2021 2022 2023 2024 2025 ARR Residential $ 4.70 $ 4.70 $ 4.70 $ 4.70 $ 4.70 $ 4.70 $ 14.70 $ 18.95 $ 19.95 $ 20.70 $ 21.20 $ 21.45 BASE FEE CART FEES 24 gallon Res $ 3.85 $ 3.85 $ 4.30 $ 4.30 $ 4.80 $ 4.80 32 gallon Res $ 5.10 $ 5.10 $ 5.75 $ 5.75 $ 6.40 $ 6.40 64 gallon Res $ 10.25 $ 10.25 $ 11.50 $ 11.50 $ 12.80 $ 12.80 96 gallon Res $ 28.80 $ 28.80 $ 34.55 $ 38.40 $ 38.40 $ 38.40 TYPICAL RESIDENTIAL RATEPAYER CCF+ Base fees + 64 gallon Res $ 29.65 $ 33.90 $ 36.15 $ 36.90 $ 38.70 $ 38.95 May 15, 2020 Zero Waste Advisory Commission 9 CIP Forecast Highlights FY 2021 Appropriation – $12.2 million FY 2021 Spending Plan – $14.0 million Projects by Category Vehicles and equipment Landfill Improvements Buildings and Improvements ‘21 Spending Plan $13.5 million $0.1 million $0.3 million 10 Clean Community Fee Purpose • Clean Community Fee (CCF) is established by ordinance to provide litter and nuisance abatement, street cleaning, household hazardous waste disposal, and the implementation and enforcement of the URO • Billed to all residential and commercial customers in the city including apartment complexes and other multi-family customers • Clean Community Customer Count (as of January 2020) ‒ Residential – 408,767 customers ‒ Commercial – 25,250 customers May 15, 2020 Zero Waste Advisory Commission 11 Clean Community Fee • In FY 2020, ARR Proposed reducing the CCF to achieve a realignment of costs – i.e. proposed reduction was offset by a Base Fee increase • Council decided to maintain the CCF at its current level pending a report back to Council • Councilmember Ellis’ Budget Amendment and Direction May 15, 2020 Zero Waste Advisory Commission 12 CM Ellis’ Direction • An informal audit of all City-funded litter abatement (and litter prevention) services to keep clean our parks, waterways, streets, preserves, and any other similarly serviced public lands or spaces. For each service, the audit should provide – Lead Department – Program or Service Name – Details of the Program or Service – Source(s) of Funding – FY 2017-18, FY 2018-19, and FY 2019-20 Funding Amounts (broken out by funding source and by ongoing vs one-time, as appropriate) 13 CM Ellis’ Direction (cont’d) • A cost of service study for the Clean Community Fee that presents options for expanded environmental clean-up services and their associated funding requirements, including – Increased levels of grounds litter abatement in parks and other outdoor PARD facilities – Increased levels of trash and recycling receptacle servicing in parks and other outdoor PARD facilities – Increased levels of street sweeping services – Increased levels of community outreach for litter prevention – Additional homeless encampment cleanups – Any other new or increased litter abatement or prevention services recommended by staff 14 Clean Community Fee-Status • ARR developed plan in collaboration with other City • departments Informal Audit – Completed April 2020 – Inventory of litter abatement activities performed by Budget Office • ARR will propose a budget amendment at the end of May to expand city-wide litter abatement activities to meet most of Council’s direction • Partnerships with Parks, Public Works, Downtown Community Court, Watershed Protection May 15, 2020 Zero Waste Advisory Commission 15 THANK YOU