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CC 05-15-2018 Exhibit Item No. 1 Study Session - FY18-19 Proposed Budget Study Session PresentationMay 15, 2018FY 2018-19 Proposed BudgetStudy Session Today’s PresentationMajor accomplishments FY17/18Changes to the budget documentFive Year General Fund ForecastGeneral Fund RevenueFund Balance Today’s PresentationRecommended Expenditures by Dept.StaffingIssues and ChallengesNext StepsCapital Improvement Program Major AccomplishmentsLaunched the POGO student carpool pilot programCoordinated the return of the 4thof July FireworksExpanded Senior Center Hours Coordinated YAC Attack teen conference Major AccomplishmentsLaunched Senior Mobility Pilot: RYDEOpted into the Green Prime service for 100% renewable energy for city facilitiesTransformed the City Hall Landscape to a drought tolerant demonstration garden Major AccomplishmentsInitiated the implementation of Recruitment Software Established a Labor Management Committee Implemented an Asset Management Module Changes to the Budget DocumentSankey DiagramDepartment Org Charts and Performance MeasuresGFOA recommended updates (glossary terms, budget cycle diagram)20-year forecast Pass Thru Revenue - Apple ParkProposedExpendituresApple Park $41,000 $41,000 $6,150 Projected Pass‐Thru RevenuesProjected Admin Overhead (15%) Revenues Special Projects Special Projects (Cont.) General Fund Fund Balance Recommended Expenditures General Fund - $77,497,090 Recommended Expenditures All Funds - $131,401,229 Changes from the FY 2017-18 Adopted BudgetCategoryFY 17‐18 Adopted FY 18‐19 ProposedChange % ChangeEmployee Compensation $ 22,304,177 $ 23,733,905 $ 1,429,728 6%Employee Benefits $ 10,155,732 $ 10,880,163 $ 724,431 7%Total Personnel Costs Changes $ 32,459,909 $ 34,614,068 $ 2,154,159 7%Materials $ 7,448,417 $ 8,002,788 $ 554,371 7%Contract Services $ 27,247,011 $ 28,224,116 $ 977,105 4%Cost Allocation $ 9,861,914 $ 11,427,121 $ 1,565,207 16%Capital outlays/Special Projects $ 34,005,161 $ 20,524,177 $ (13,480,984)‐40%Contingencies $ 1,907,416 $ 1,589,249 $ (318,167)‐17%Debt Services $ 3,167,538 $ 3,169,438 $ 1,900 0%Transfer out/Other Financing Uses $ 32,770,813 $ 23,850,272 $ (8,920,541)‐27%Total All Funds $ 148,868,179 $ 131,401,229 $ (17,466,950)‐12% Council and CommissionsSalary and Benefits +$38,772Materials +$24,597Contract Services +$7,475Cost Allocation -$19,699Contingencies -$6,030FY 17‐18Adopted BudgetEXPENDITURES $924,637 $969,752 $45,115Category FY 18‐19 Proposed BudgetVariance Community Funding RequestsNon‐Profit Organization FY 17‐18 FY 18‐19 ChangeFriends of Deer Hollow Farm $15,000 $15,000 $0Cupertino Historical Society $15,000 $20,000 $5,000Euphrat Museum of Art $10,000 $15,000 $5,000Cupertino Rotary $12,000 $12,000 $0Iranian Federated Women’s Club $400 $5,000 $4,600Korean American Community Services$0 $5,000 $5,000Bay Shore Lyric Opera $0 $1,500 * $1,500TOTAL $52,400 $73,500 $21,100* This request was increased to $3,750. AdministrationSalary and Benefits +$669,317Contract Services -$233,793Materials +$21,700Cost Allocation +$46,249Special Projects +$104,470Contingencies +$50,718FY 17‐18Adopted BudgetEXPENDITURES $5,467,897 $6,126,558 $658,661Category FY 18‐19 Proposed BudgetVariance Special Projects - AdministrationSpecial Projects CostsResidential Drought Tolerant Landscaping Pilot program $175,000 Residential Energy Reduction and Efficiency Program $6,000 Utility Box Art Painting ‐ Round 4 $10,000 Employee Commute Program $50,500 Total $241,500 Law EnforcementIncreased Contract CostsFY 17‐18 Adopted BudgetEXPENDITURES $12,344,307 $12,984,853 $640,546Category FY 18‐19 Proposed BudgetVariance Innovation and TechnologySalary and Benefits +$103,327Cost Allocation +$432,379Materials +$488,185Contract Services +$361,500Special Projects -$656,230Contingencies -$74,637Other Financing Uses -$255,674FY 17‐18 Adopted BudgetEXPENDITURES $7,496,436 $7,895,286 $398,850Category FY 18‐19 Proposed BudgetVariance Special Projects - ITSpecial Project CostsHyperConverge ‐ Phase II $70,000 MFP Refresh ‐ Phase II $95,000 Campus Wireless LAN $98,000 Public Wireless Hotspots $52,000 Video Storage Area Network $50,000 Total $365,000 Administrative ServicesSalary and Benefits +$694,965Contract Services +$110,280Cost Allocation +$21,771Contingencies -$14,567Salary and Benefits +$694,965Contract Services +$110,280Cost Allocation +$21,771Contingencies -$14,567FY 17‐18 Adopted BudgetEXPENDITURES $5,979,807 $6,792,256 $812,449Category FY 18‐19 Proposed BudgetVariance Recreation & Community ServicesSalary and Benefits +$230,420Materials -$333,886Contract Services +$204,337Cost Allocation +$882,782Special Projects +$50,000Contingency -$115,926Other Financing Uses +$77,127Salary and Benefits +$230,420Materials -$333,886Contract Services +$204,337Cost Allocation +$882,782Special Projects +$50,000Contingency -$115,926Other Financing Uses +$77,127FY 17‐18 Adopted BudgetEXPENDITURES $16,447,578 $17,442,432 $994,854Category FY 18‐19 Proposed BudgetVariance FestivalsRecreationFacility/Park/Road PermitsPublic Works Sheriff MaterialsKids ʹN Fun Festival Aug. 11, 2018 Taiwanese Cultural and Sports Association $ 1,598 $ 7,440 $ 2,803 $ 5,289 $ ‐ $ 17,129 Fall Festival Sept. 15, 2018 Cupertino Rotary $ 1,512 $ 5,938 $ 3,008 $ 5,289 $ ‐ $ 15,746 Diwali October 13, 2018 Cupertino Chamber of Commerce $ 1,564 $ 6,710 $ 3,031 $ 5,264 $ ‐ $ 16,569 Veteranʹs Day Nov. 11, 2018 Cupertino Veteranʹs Memorial $ 642 $ 1,000 $ 18 $ 1,593 $ 3,253 Egg Hunt April 13, 2019 Home of Christ Church $ 861 $ 1,000 $ 38 $ ‐ $ ‐ $ 1,900 Holi April 7, 2019 Cupertino Chamber of Commerce $ 984 $ 3,000 $ 18 $ 871 $ ‐ $ 4,874 Cherry Blossom April 27‐28, 2019 Toyokawa Sister City $ 4,007 $ 17,466 $ 5,801 $ 4,356 $ ‐ $ 31,629 World Journal May 11, 2019 World Journal/Cupertino Chinese School $ 2,065 $ 4,960 $ 3,004 $ 4,356 $ ‐ $ 14,385 Tournament of Bands TBA Cupertino Tournament of Bands $ ‐ $ 3,150 $ 185 $ ‐ $ ‐ $ 3,335 Heroes Run TBA County of Santa Clara $ ‐ $ 4,326 $ 78 $ ‐ $ ‐ $ 4,404 Costs for FY 18‐19 Events $ 13,234 $ 54,990 $ 17,985 $ 25,425 $ 1,593 $ 113,225 TotalWaived FeesFestival Date Festival ProducerCity Expenses FestivalsRecreationFacility/Park/Road PermitsPublic Works Sheriff MaterialsKids ʹN Fun Festival Aug. 11, 2018 Taiwanese Cultural and Sports Association 5,000 $ 1,598 $ 7,440 $ 2,803 $ 5,289 $ ‐ $ 17,129 Fall Festival Sept. 15, 2018 Cupertino Rotary 3,000‐5,000 $ 1,512 $ 5,938 $ 3,008 $ 5,289 $ ‐ $ 15,746 Diwali October 13, 2018 Cupertino Chamber of Commerce 5,000 $ 1,564 $ 6,710 $ 3,031 $ 5,264 $ ‐ $ 16,569 Veteranʹs Day Nov. 11, 2018 Cupertino Veteranʹs Memorial 350 $ 642 $ 1,000 $ 18 $ 1,593 $ 3,253 Egg Hunt April 13, 2019 Home of Christ Church 500 $ 861 $ 1,000 $ 38 $ ‐ $ ‐ $ 1,900 Holi April 7, 2019 Cupertino Chamber of Commerce 500‐1,000 $ 984 $ 3,000 $ 18 $ 871 $ ‐ $ 4,874 Cherry Blossom April 27‐28, 2019 Toyokawa Sister City 10,000 $ 4,007 $ 17,466 $ 5,801 $ 4,356 $ ‐ $ 31,629 World Journal May 11, 2019 World Journal/Cupertino Chinese School 3,000 $ 2,065 $ 4,960 $ 3,004 $ 4,356 $ ‐ $ 14,385 Tournament of Bands TBA Cupertino Tournament of Bands 12‐20+ Bands with ~50‐180 members $ ‐ $ 3,150 $ 185 $ ‐ $ ‐ $ 3,335 Heroes Run TBA County of Santa Clara TBD $ ‐ $ 4,326 $ 78 $ ‐ $ ‐ $ 4,404 $ 13,234 $ 54,990 $ 17,985 $ 25,425 $ 1,593 $ 113,225 TotalWaived FeesFestival Date Festival ProducerCity ExpensesCosts for FY 18‐19 EventsApproximate Attendance Planning and Community DevelopmentSalary and Benefits -$73,209Materials +$8,853Contract Services -$117,701Cost Allocation +$345,483Special Projects -$8,075,000Contingencies -$87,872Other Financing Uses +$750,000Salary and Benefits -$73,209Materials +$8,853Contract Services -$117,701Cost Allocation +$345,483Special Projects -$8,075,000Contingencies -$87,872Other Financing Uses +$750,000FY 17‐18Adopted BudgetEXPENDITURES $16,550,502 $9,301,056 ($7,249,446)Category FY 18‐19 Proposed BudgetVariance Public WorksSalary and Benefits +$483,842Materials +$348,922Contact Services +$61,700Cost Allocation -$53,585Special Projects -$1,216,269Contingencies -$72,212Other Financing Uses +$309,090Capital Outlays -$198,021Salary and Benefits +$483,842Materials +$348,922Contact Services +$61,700Cost Allocation -$53,585Special Projects -$1,216,269Contingencies -$72,212Other Financing Uses +$309,090Capital Outlays -$198,021FY 17‐18 Adopted BudgetEXPENDITURES $34,794,219 $34,457,686 ($336,533)Category FY 18‐19 Proposed BudgetVariance Special Projects – Public WorksSpecial Project CostsWaste Characterization Study $105,000Waste Tonnage Audit $45,000Apple Park $41,000Office Improvements $175,000Baseball Field Renovation ‐ Schools $35,000Baseball Field Renovation ‐ Wilson Park $35,000Cement Mow Band ‐ Wilson Park $12,000Cement Mow Band ‐ Creekside Park $10,000Annual Sidewalk, Curb, and Gutter $850,000Sidewalk Grinding $50,000Streetlight Pole Placement $80,000 Special Projects – Public WorksSpecial Project (Cont.) CostsPark Pathway Light Poles $17,000Partial exterior painting ‐ City Hall $15,000Window Replacements ‐ Library $10,000Granite Polishing ‐ Library $6,000Changing Tables ‐ Quinlan $10,000Automatic Bottle Fillers ‐ Quinlan $12,000Track Lighting ‐ Quinlan $12,000Office Window ‐ Quinlan $15,000Automatic Door Opener ‐ Quinlan $20,000Repaint Building Exterior ‐ McClellan Ranch $12,000Rodent Control ‐ McClellan Ranch $30,000 Special Projects – Public WorksSpecial Project (Cont.) CostsReplace Gymnastics Area Floor ‐ MV Rec Center $48,000Preschool Kitchenette Remodel ‐ MV Rec Center $45,000Paint lower level floor and stairwell ‐ Sports Ctr $30,000Paint racquetball and gym ‐ Sports Center $30,000Panel replacement in lower level ‐ Sports Center $15,000Painting ‐ Teen Center $30,000Carpet replacement ‐ Teen Center $20,000New floor, plumbing, fixtures, paint, etc. ‐ Creekside $30,000Replaster Pool ‐ Blackberry Farm $200,000Traffic Signal System Upgrade $400,000Total $2,445,000 Non-DepartmentalFY 17‐18 Adopted BudgetEXPENDITURES $18,935,272 $14,353,350 ($4,581,922)Category FY 18‐19 Proposed BudgetVariance* This table does not include Capital Reserve transfers out. Capital Improvement ProjectsFY 17‐18 Adopted BudgetEXPENDITURES $22,368,000 $17,868,000 ($4,500,000)Category FY 18‐19 Proposed BudgetVariance Additional ProposalsCommunity Development - BMR Linkage Fees Update +$175,000Recreation & Community Services –Performing arts +$82,000Public Works – Senior Mobility/RYDE program +$22,000 FY 2018-19 Staffing RequestsCurrent FTEs 199.75Recommended FTEs 202.75Department(s) Classification Salaries Benefits Total Costs Funding Source/PurposeAdministration Risk Manager $130,079 $50,497 $180,576 General FundManage liabilities, Insurance, Worker’s CompensationAdministrative Services Senior Management Analyst, 2 year limited term$122,900 $47,464 $170,364 General FundContinue Current Technical and Analytical ProjectsPublic Works Engineering Technician $87,448 $38,768 $126,216 General FundDevelopment Services Projects Limited Term to PermanentAdministration Environmental Programs Assistant$38,120 $11,317 $49,437 General FundSustainability and CAP Public Works Associate Civil Engineer $11,841 $3,426 $15,267 General Fund Bicycle & Pedestrian Transportation Traffic Impact Fee$390,388 $151,472 $541,860POSITIONS FUNDED BY THE GENERAL FUND Issues and ChallengesRetirement CostsDiscount Rate from 7.5% to 7% Issues and ChallengesRetirement Costs (continued)Limited Term PositionsAssigned CalPERS ReserveSection 115 as a Pension Rate Stabilization Program Issues and ChallengesRevenue VolatilityHealth Benefits Next StepsFY 2017-18Third Quarter Report May 15thFY 2018-19CIP Presentation May 15thHearing and Adoption June 5thFirst Quarter Report Nov 2018 Accessing the BudgetOnline at www.cupertino.org/budget On the City’s transparency portal www.cupertino.org/opengovCopies available at City Hall and the Cupertino Library