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