Proposed 2015/16 Operating Budget & Capital Improvement Program, Danville Town Council, June 16, 2015

1. Overview of the Town of Danville
Proposed 2015/16 Operating Budget &
Capital Improvement Program
Danville Town Council
June 16, 2015

2. Budget & CIP Process
• April 24, 2015 – Draft budget released and posted on
the Town’s website
• May 5, 12, 19 and 26, 2015 – Draft budget reviewed
by the Town Council at four public study sessions
• June 1, 2015 – Final draft posted on website
• June 16, 2015 – Final budget scheduled for adoption

3. Purpose of the Operating Budget & CIP
• Establish/review highest
priorities for municipal
service delivery to meet
unique community needs
• Identify, plan for and
fund one-time capital
needs

4. Town Service Priorities:
• Public safety
• Community appearance
• Appropriate development standards
• Broad range of recreational and
enrichment opportunities
• Economic vitality and growth
• Proactive regional presence
• Community Celebrations/Special Events

5. Highlights
• The Town’s overall fiscal condition continues to be
excellent
• 2015/16 budget continues the Town’s tradition of
conservative fiscal management
• Fiscal condition heading into 2015/16 better than
forecast last year at this time
• Total revenues: $34,159,567 (3.7%)
($32.0 M for Town and $2.2M for Successor Agency)
• Total expenditures: $30,666,137 (2.2%)
($29.3 M for Town Operating and $1.4 for Successor Agency)
• Capital Appropriations: $5,961,803
• State Dept. of Finance dropped their appeal
($9.26 M to be repaid over 10 years)

6. Revenues
General Fund
• Total General Fund: $23,615,597 (6.5%)
• Property Tax: $12,817,433 (5.8%)
(inclusive of Triple Flip)
• Sales Tax: $4,219,145 (10.3%)
• Recreation Fees & Charges: $2,350,115 (2.3%)
• Franchise Fees: $2,118,077 (4.3%)
• All Other General Fund: $2,110,827 (10.8%)

7. Special Purpose
• Total Special Purpose: $8,369,507 (2.9%)
• Lighting and Landscape Assessment District:
$3,132,011 (No Change)
• Building & Planning: $2,548,256 (3.8%)
• Gas Tax: $954,614 (15.3%)
• Measure J Return-to-Source: $705,884 (0.2%)
• Clean Water Assessment: $577,276 (0.3%)

8. Revenue Trends –
Sales & Property Tax
$3.25
$3.17
$3.44
$3.73 $3.79 $3.82 $3.83
$4.22
$11.61
$11.31
$10.99
$11.24
$11.81
$12.22
$12.11
$12.82
$9.0
$9.5
$10.0
$10.5
$11.0
$11.5
$12.0
$12.5
$13.0
$3.0
$3.5
$4.0
$4.5
$5.0
$5.5
$6.0
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
(est)
2015/16
(budget)
Sales Tax Property Tax
($millions)

9. Total General Fund & Special Revenue
$8.41
$7.65
$7.94
$7.79
$8.71
$8.41
$8.62
$8.37
$21.13
$20.55
$21.09
$21.57
$22.15
$21.28
$22.17
$23.62
$15.0
$16.0
$17.0
$18.0
$19.0
$20.0
$21.0
$22.0
$23.0
$24.0
$25.0
$7.0
$7.5
$8.0
$8.5
$9.0
$9.5
$10.0
$10.5
$11.0
$11.5
$12.0
2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
(est)
2015/16
(budget)
Special Revenue General Fund
($millions)

10. Operating Expenditures
• Total Operating Expenditures:
$29,292,673 (2.3%)
• General Government: $1,684,681 (4.1%)
• Police Services: $8,713,653 (0.5%)
• Administrative Services: $3,675,869 (0.2%)
• Development Services: $4,147,018 (10.1%)
• Maintenance Services: $7,096,107 (13.8%)
• Recreation, Arts & Community Services:
$3,975,344 (4.1%)

11. General
Gov’t
6%
Police
30%
Maintenance Services
24%
Recreation, Arts and
Community Services
14%
Development
Services
14%
Administrative
Services
12%
Town Expenditures by Department

12. Total Operating Expenditures
by Function and Expense Category
$1,538,131
$3,330,583
$1,757,849
$1,373,322
$1,885,179
$7,870,236
Recreation Services
Maintenance
Services
Development
Services
Administrative
Services
Police Services
General
Government
Employee Expenses Temp Staff Administration
Contracted Services Program Activites Other

13. Transfers and Designations from
General Fund
• Capital Improvement
 $2,600,000 to fund Pavement Management
Program
 $1,243,203 to fund CIP General Purpose
• Lighting and Landscaping
 $450,000 to subsidize LLAD benefit zones A & D

14. Operating Reserve Policy
• Town Council Policy:
Minimum 20% of Budget
• 2015/16 Reserve:
$11,111,504,
equivalent to 38% of budget

15. Staffing and Employee Costs
• No changes in total staffing levels:
 90.75 FTE permanent
 30.0 FTE contract (sworn police officers)
 33.5 FTE part-time temporary
• Total employee expenses: $10,757,374 (3.5%)
 Eliminate 1.5 FTE Community Services Officers
 Add 0.5 FTE Community Events Coordinator
 1.0 FTE Maintenance Worker
 Salary range adjustment
 Merit-based salary adjustment
 No unfunded pension or OPEB liabilities

16. Master Fee Schedule
• DUI Emergency Response Reimbursement Fees adjusted
to reflect sworn personnel costs (reduction for straight
time costs, increase for overtime costs)
• Revenue Neutral Changes:
 Picnic area reservations charged on per picnic table
basis
 Hourly rates at Community Centers and Vets Hall
combine room rental and AV costs
• Pass-through costs collected for State Department of
Fish and Game increased pursuant to state law

17. Ten-Year Forecasts
(2024/25 Projections)
• Total Revenues: $37,784,424 in 2024/25 (10.6%)
• General Fund Revenues: $26,980,591 (14.2%)
• Special Revenues: $8,431,694 (1.3%)
• Total Expenditures: $35,870,364 (22.5%)
• Successor Agency Expenditures: $1,328,950 (3.3%)
• General Fund Transfers:
 $2,973,088 for CIP and Pavement Management
 $840,000 for LLAD operating over the next ten years
• Forecast demonstrates fiscal sustainability through
2024/15

18. 2015/16 Appropriation Limit
(per Prop 111)
• Prop 111 Limit for 2015/16:
$34,373,983
• Revenues subject to limit:
$20,840,829
• Based on population
growth within Contra
Costa County and annual
growth in California per
capita income

19. Capital Improvement Program
• Identifies current and future
capital needs, and sources of
funding for projects
categorized as:
 General Improvements
 Parks and Facilities
 Transportation
• 30 separate projects
recommended for 2015/16
with appropriations totaling
$5,961,803

21. Pavement Management Program
• Funded at $3.0 million for
2015/16
• Goal: Maintain minimum
average PCI of 70 Town-wide
• Current average Town-wide
PCI increased from 73 to 76

22. Summary
• Sufficient revenue available to
fund all 2015/16 Operating and
Capital expenditures
• Overall fiscal condition is
excellent
• 2015/16 Operating Reserve
funded at 38%
• No unfunded liabilities
• 10 Year Forecasts show Town is
on a fiscally sustainable course