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PowerpointPublic Safety Committee Presentation February 9, 2016 Menifee Profile Incorporation: 2008/09 2015/16 ✦Area: 46.8 Sq Miles 46.8 Sq Miles ✦Population: 64,328 85,385 ✦City Employees: 15 (.5/ 14.5 contract)56 ✦Sworn Contract 44 (.70)48 (.56) Support/Officers: ✦Firefighters: 45 45 ✦Parks:5 (westside –County)8 (westside-City) 16 (eastside-VW) 18 (eastside-VW) ✦General Fund $ 16,910,098 $ 29,654,308 Budget: ✦Reserves: $8,077,772 $ 7,566,790 Menifee Snapshot ✦Median Age: 56 37 yrs old ✦Number of Households: 24,305 31,345 ✦Average Household Income: $54,903 $68,036 ✦Median Home Sales Price: $288,000 $372,250 Incorporation 2008/09 2015/16 Revenue Assumptions in Building the Forecast Model Assume the sale price of New Homes increase 3%each year,over 5 years Current average sale price of a new home $372,250 per LPS Data Solutions Existing homes assessed value increases 1.5%each year,over 5 years,max 2.0% Assume 500 new home will enter the market each year,over 5 years Based on State Controller’s report,population of 2.9 per single family home Sales Tax will Increase 8%each year,over 5 years Franchise Fees will increase 4%per year,over 5 years Building Permits estimated @$4,200/home,plus $1.3M for Commercial TI/Plan Checks Planning Department,Plan Check Review $1.0 Million each year Engineering Department,Plan Check Review 1.5 Million each year TOT project increase 8%per year,over 5 years All other misc.General Fund revenues increase 5.0%/YR over the next 5 years County Augmentation will generate just over $1.0 Million/YR for the next 3 years and is sunsets in FY 2018. Expenditure Assumptions in Building the Forecast Model Police Services increases @ 8%per year,for the next 5 years (Status Quo-not adding Officers) Fire Services increases @ 5%per year,for the next 5 years (Status Quo-not adding Firefighters) No increase in current staffing (Status Quo) Employer’s PERS rate increases @ 1%per year.Current rate of 11 .99%,and FY 2016/17 @12.7%. All eligible employees receiving normal 5%step increase until top step No increase in City Services No Capital Equipment for the General Fund Total General Fund Expenditures increasing 5.5%per year Sources of Current Revenue The four primary revenues sources of the General Fund make up 90%of the total general fund revenues: Property Tax Revenues (38%) Sales Tax Revenues (21%) Franchise Fees (11 %) Developer Review Fees (20%) ✦Other General Fund revenues consist of Transient Occupancy Tax (TOT),and Business License Fees. ✦Transfer from other funds to support General Fund over head costs,County Augmentation revenue,miscellaneous revenues from Parks &Rec.,Traffic Citations and Animal License fees. ✦Other General Fund revenues make up approximately 10%of the General Fund Revenues,with the County Augmentation revenue representing 3%of this total. Financial Forecast 5 Year Projections $0.00 $5,000,000.00 $10,000,000.00 $15,000,000.00 $20,000,000.00 $25,000,000.00 $30,000,000.00 $35,000,000.00 $40,000,000.00 $45,000,000.00 2016 2017 2018 2019 2020 2021GENERAL GOVERNMENT FIRE POLICE PROPERTY TAXSALES TAX FRANCHISE FEES DEVELOPER FEES TOTCOUNTY AUGMENTATION OTHER -$5,072,180-$4,413,934Annual Gap Annual Gap Annual Gap Annual Gap $29.6 Million$32.6 Million$38.3 Million$40.4 Million$31.7 Million$31.9 Million$33.2 Million$34.6 MillionExpend Revenue Expend Revenue Expend Revenue Expend Revenue Expend Revenue Expend Revenue* -$2,145,695 -$2,699,996 -$5,754,506 •Status Quo=No Increase/Decrease in Staff/Public Safety or Services •Slow Growing Revenues (Property Taxes (3%), Sales Taxes (8%), Misc Revenue (5%)) •No New Revenue Growth Base Annual Gap Current Year $34.4 Million$36.3 Million$29.6 Million$30.5 Million*County Augmentation Sunsets 2015/16 Expenditures 2015/16 Revenues Two -Pronged Solution to Challenge 1) Expenditure Reductions (not going to solve issue alone) and 2) Revenue Generating Options Police 36%Fire 28% Police 36% General Government $5,975,045 20% Parks and Recreation $711,546 3% Community Development $1,223,136 4% Public Safety, $19,015,159 64% Public Works & Engineering $2,729,422 9% Fire 28% Police 36% Potential Ideas/Solutions Expenditure Reduction Efforts ✦City Manager has cut or reduced training & education opportunities for staff ✦Reduced expenses in all categories-continuing to do more with less ✦Shifted expenses off General Fund where appropriate ✦Ongoing Disagreements with Riverside County Sheriff & Board of Supervisors regarding Public Safety Costs ✦Renegotiated reductions in Animal Service, Fire and Police contracts without changing level of services. ✦Additional efforts in reducing current expenditures: ✦Update Cost of Services Study ✦Perform Utility Efficiency Study/Utility Audit for City-Owned Facilities (for all city owned facilities including Senior Center, LLMD’s, Parks, etc.) ✦Perform Development Impact Fee Analysis ✦Replaced consultants w/staff to combine duties for less cost to city Potential Ideas/Solutions Expenditure Reduction Efforts Potential Ideas/Solutions Revenue Generating Efforts ✦Continue to meet with legislators and advocate for Vehicle License Fee (VLF) restoration ($4.2M revenue loss FY15/16; total revenue loss since FY 11/12 to FY 20/21 is $49M) ✦Monitor and seek funding through public and private grant opportunities to offset other expenditures Economic Related Studies: ✦Hotel Feasibility Study Auto Mall Feasibility Study Industrial Park Overlay or Business Park Plan Business Incentive Ordinance McCall Medical Corridor Overlay HDL Studies Derrigo Studies Other Efforts: ✦Website overhall New Econ Dev Materials/ Citywide Branding Infrastructure Improvements Community Services Dept improving Quality of Life Potential Ideas/Solutions Revenue Generating Efforts Potential Ideas/Solutions “New” Revenue Generating Options 1. Sales Tax Measure (for Public Safety) 1 cent= $6.2M ½ cent= $3.1M ¼ cent=$1.5M 2. Transient Occupancy Tax Increase (TOT) (current 10%) +4%=$76k +3%=$57k +2%=$38k +1%=$19k 3. Local Measure for Community Service District Enhancements (CSD) Residential (31,345 Residential Rooftops in 2015) $50=$1.7M $75=$2.35M annually Commercial & Residential (60,000 combined parcels) $50= $3M $75=4.5M annually Potential Ideas/Solutions “New” Revenue Generating Options 4. Utility Users Tax (UUT) 2%= $1.8M 4%= $3.6M 5%=$4.5M 6%= $5.5M 5. Community Facilities District (CFD) for Public Safety (new residential developments) # of residential units in pipeline 2000-3000 homes expected to be built in the next 5 years 5 yrs= $1.2M (500 new homes annually @511) 10 years= $2.5M (500 new homes annually @511) Take-Away Summary 1. Sales Tax Measure:1 Cent $ 36.5M ½ Cent $ 18.2M ¼ Cent $ 7.5M 2. Utility Users Tax (UUT)$ 27.5M 3. CSD: Community Service Enhancements:$ 12M-$22M 4. Community Facilities District (CFD):$ 3.8M 5. Transient Occupancy Tax Increase (TOT):$ 258K Public Safety Rising Costs (status quo)< $20 M> Revenue Generating Options: Over 5 years (2016-2021) Community Outreach Plan ✦Education ✦Participation ✦Solicitation ✦Consideration ✦Implementation