14 15 Mid Year Update - RevisedMid Year Budget Review and Long Range Financial Plan
5 Year Outlook
Revenues
General Fund
Median home price has increased 7% over the previous year
2014/15 Consumer Price Index (CPI) is only .5%
2015/16 CPI is forecasted at 2% plus 1.5% growth = 3.5% projected increase
Property Tax
2nd Quarter Sales Tax Gross Receipts is 2.1% less than previous year
City of Baldwin Park 10-year sales tax sharing agreement has expired
Restaurants and Casual Dining remains strong.
New retail center at Walnut Grove and Valley
Sales Tax
Business License revenues are up in comparison to last fiscal year
Administrative Citation collections have increased
Building Fees have increased
Other Revenues
Lean Staffing Levels
53 Full-time employees, down from high of 67
6 ¾-time employees, down from high of 18
The number of part-time positions has been significantly reduced over the past three years
Recent Successes Organizational Changes
Solid Waste Services Franchise Fee
Guaranteed a $500k minimum payment
Economic Development
Garvey Avenue Corridor Specific Plan
Qiao Garden Hotel and Doubletree Hotel Expansion
New Restaurants and businesses at Walnut Grove & Valley are open in FY 14-15.
New Ulta and PetSmart to open in Target Center
Recent Successes – General Fund Revenue
Federal CDBG and HOME Funding will likely continue to be reduced
Gas Tax funds are projected to decrease
Fixed costs for utilities and fuel outpace CPI
Termination of lease agreement for Metro PCS
External Factors
Today’s Reality
Today’s Reality
Today’s Reality
2013/14 Budget figures equate to approx. $144.11 per capita.
$28.88
General Fund Revenue Outlook
Sales Tax revenues will realize slow to moderate growth from economy and new businesses (2-3% annually)
Property Tax growth will be slow without new development. CPI for the 14/15 rates was only 0.5%; however 15/16 will be 2%
TOT growth could be substantial if new hotels are developed.
Revenues – Future Outlook
Expenditures
General Fund
Gen. Fd. Expenditure Outlook
Salary and Benefit costs will continue to rise.
Fuel for vehicles and other utilities will continue at rates of 5-7% annually.
Insurance costs projected to rise (5%)
LA County Sheriff’s Department contract is expected to rise due to facility improvements and technology improvements and liability costs that will be passed along to contract cities
(3-4%)
The Next Five Years
General Fund Overview
Inflation and cost increases will likely outpace revenue increases in the long-term.
Without increases to fees, new revenue sources, or a decrease in programs, the long-term variance would likely grow.
Stormwater Mandates Unfunded
Streets and Sidewalks
Infrastructure Improvements – Sewer
Expiring contracts
Future Issues Remain
Discussion and Questions