CC Exhibit 06-05-2018 Item No. 19 FY18-19 Final Budget Study SessionJune 5, 2018FY 2018-19 Final BudgetHearing and Adoption
Today’s PresentationGeneral Fund RevenueFund BalanceRecommended ExpendituresChanges since the 2017-18 Final BudgetStaffing
Today’s PresentationAdditions from the Budget Study SessionFollow Up from the Budget Study SessionIssues and ChallengesNext Steps
General Fund Revenue
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%
FY 2018-19 Staffing RequestsCurrent FTEs 199.75Recommended FTEs 202.75Department(s) Classification Salaries BenefitsTotal Costs Funding Source/PurposeAdministration Risk Manager (Assistant to the City 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
Additions from the Budget Study SessionFund Project Expenditure Fund BalanceGeneral Fund Senior Mobility/RYDE Program $ 22,000 $ (22,000)General Fund BMR Linkage Fees Update $ 175,000 $ (175,000)General Fund Performing Arts Program $ 67,000 $ (67,000)General Fund Airport Noise Ad‐hoc Comm. $ 25,000 $ (25,000)General Fund Sheriff Costs for Tournament of Bands $ 3,500 $ (3,500)TOTAL $ 292,500 $ (292,500)
Appropriations Limitation –Proposition 111 – Article XIIIB•FY 2017/18 Appropriations Limitation $96,028,488•Per capita cost of living – 3.67%•Change in County Population – 0.99%•FY 2018/19 Appropriations Limitation$100,538,305
Ryde Program
CAO/Risk Manager ComparisonCity PopulationCAO Staff: Total Staff Attorney% of CAO Budget to Total City Budget Risk ManagerCity of Mountain View 79,278 1:124 In house 0.6%Risk Manager in Finance and Administrative Services DepartmentCity of Palo Alto 66,478 1:88 In house 0.5% Risk Manager in HR DepartmentCity of San Jose 1,000,000 1:75 In house 1.1% Risk Manager in Finance DepartmentCity of Santa Clara 125,948 1:184 In house 0.2%Risk Manager Proposed in FY 18/19 ‐ unknown departmentCity of Saratoga 30,569 n/a Contract 0.8%Risk Manager = Rec & Facilities Director who volunteered to take on the roleCity of Sunnyvale 149,831 1:131 In house 0.5% Risk Manager in HR DepartmentCity of Campbell 42,726 n/a Contract 0.6% Risk Manager = Finance DirectorCity of Cupertino 60,572 1:49 In house 1.4%Proposed in CMO Currently Risk Manager = City AttorneyCity of Gilroy 48,821 n/a Contract 0.4% Risk Manager = HR DirectorCity of Los Altos 31,402 n/a Contract 0.6% Risk Manager = Assistant City ManagerCity of Milpitas 75,410 n/a Contract 0.4%Risk Manager = Finance DirectorCity of Morgan Hill 41,779 1:46 In house 0.6% Risk Manager = City AttorneyTown of Los Gatos 30,391 1:80 In house 0.6%HR handles Risk Management, work together with Town AttorneyCity of Menlo Park 32,026 n/a Contract 0.4%Risk Manager = Admin Services DirectorRedwood City 85,992 1:92 In house 0.6%Risk Manager = Prinicipal Analyst in HR Department
Limited Term Conversion –Associate Civil Engineer●Transportation efforts included in the workplan, Traffic Impact Fee development, and Bicycle Transportation Plan implementation.●Increased 2016 Bicycle Transportation Plan funding in FY 2017-18 Adopted Budget.●Stevens Creek Boulevard Protected Bike Lanes●Carmen Road bicycle/pedestrian bridge feasibility study.
Historical Society - Cost per Square FootageGROSS STARTING PRICE GROSS ASKING PRICEHistorical Society Sq. Ft. 1062.00 Historical Society Sq. Ft. 1062.00 Gross Starting Rent per Sq. Ft. 2.70$ Gross Asking Rent per Sq. Ft. 3.08$ Total Monthly 2,867.40$ Total Monthly 3,270.96$ Total Annual 34,408.80$ Total Annual 39,251.52$
Deer Hollow AttendanceGeneral Public (Surveyed in 2013-14):●Bay Area Residents: >100,000 visits per year●Cupertino Residents: ~11,800 visits per yearEnvironmental Education Classes 2017-18:●Total: 4991 students in 209 classes●Cupertino Elementary Schools: 553 students in 22 Deer Hollow field trip classes
Community Funding* Cupertino Rotary revised estimate to 5,000Non‐Profit OrganizationFY 17‐18 Funding (1)FY 18‐19 Request (2)Difference (2)‐(1)Anticipated Funding from Other SourcesAnticipated Cupertino Attendees (3)Anticipated Total AttendeesAnticipated Cost Per Cupertino Attendee (2)/(3)Friends of Deer Hollow Farm $ 15,000 $ 15,000 $ ‐ $ 147,700 11,800 100,000 $ 1.27 Cupertino Rotary * $ 12,000 $ 12,000 $ ‐ $ 56,600 5,000 5,000 $ 2.40 Euphrat Museum of Art $ 10,000 $ 15,000 $ 5,000 $ 215,500 10,200 18,800 $ 1.47 Cupertino Historical Society $ 15,000 $ 20,000 $ 5,000 $ 70,000 5,500 5,500 $ 3.64 Bay Shore Lyric Opera $ ‐ $ 3,750 $ 3,750 $ 19,500 315 450 $ 11.90 Iranian Federated Womenʹs Club $ 400 $ 5,000 $ 4,600 $ ‐ 210 210 $ 23.81 Korean American Community Services $ ‐ $ 5,000 $ 5,000 $ 334,203 80 2,850 $ 62.50 Total 52,400$ 75,750$ 23,350$
Community Funding RCS Recommendations●Grant the same amount of funding as FY 2018 to all organizations and grant no funding to new organizations while the program is being updated●Create criteria/more thorough application for next year●Require a brief report on the impact of the funding. ●Require marketing/publicity/branding/City logo on program/event materials to recognize the City sponsorship
Community Funding RCS Recommendations●Publicize the Community Funding Program so other groups are aware of the opportunity ●Form a committee to evaluate applications and make recommendations●Allocate a maximum total funding amount and maximum funding amount per organization●Maintain the Community Funding Program and the festival fee waivers separately
Community Funding – Other CitiesWho receives applications? Are they vetted by staff? Does it go to Council?Do they currently have a funding cap? If so how much?How do they outreach to the public?Cupertino Received by: Administrative Services Department. Vetted by: City Council.No Posted on website, email past recipients and applicantsCampbell Received by: City Managerʹs Office. Vetted by: Civic Improvement Commission (CIC). Taken to Council for final approval.$50,000 Website, email lists, nextdoor, all social media.Los Gatos Received by: City Managerʹs Office. Vetted by: The Community and Senior Service Commission (CSSC) and the Arts and Culture Commission (ACC). Taken to Council for final approval. $80,000‐$100,000 for Human Service programs $10,000‐$20,000 for Arts, Cultural, and Education programs Email past recipients and applicants, social media, post on website, follow up with contacts.Menlo Park Received and vetted by: Community Service & Finance staff (who score and review applications, and provide recommendations to the Council subcommittee). Subcommittee decides how much to allocate to each organization. Taken to Council for final approval. $266,000 (1.7% of General Fund property tax revenue) Email past recipients as well as additional oganizations referred by City Council members and staff, public digest.Morgan Hill Received by: Community Services Department. Staff reviews applications for completeness and prepares staff report for Council. Vetted by: City Council. No funding cap. Email past recipients, post on city website, press release sent to local papers.Redwood City Received by: Recreation & Community Services Dept. Vetted by: Civic Cultural Commission. Taken to Council for final approval.$40,000 for Large Grants ($1,001 or more.$9,000 for Small Grants ($1,000 or less). $9,896 for Commission Events (Amounts may vary).Email past applicants, recipients, and other local arts organizationsSaratoga Received by: City Managerʹs Office. Staff reviews applications for completenes and prepares staff report for City Council. Vetted by: City Council. $40,000 for Community Events Grants. $148,659 for Community Grants. Email, social media, post app online and Nextdoor. Saratoga news, contact past applicants.Sunnyvale Received by: Community Services Department. Vetted by: Council Subcommittee ʺCommunity Event and Neighborhood Grant Distribution Subcomitteeʺ. Taken to Council for final approval.No funding cap for Community Event Grants. Email lists, social media.
Festivals*Costs for Public Works for the Heroes Run was updated to more accurately reflect staff time. RecreationFacility/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 $ 3.43 Fall Festival Sept. 15, 2018 Cupertino Rotary 5,000 $ 1,512 $ 5,938 $ 3,008 $ 5,289 $ ‐ $ 15,746 $ 3.15 Diwali October 13, 2018 Cupertino Chamber of Commerce 5,000 $ 1,564 $ 6,710 $ 3,031 $ 5,264 $ ‐ $ 16,569 $ 3.31 Veteranʹs Day Nov. 11, 2018 Cupertino Veteranʹs Memorial 350 $ 642 $ 1,000 $ 18 N/A $ 1,593 $ 3,253 $ 9.29 Egg Hunt April 13, 2019 Home of Christ Church 500 $ 861 $ 1,000 $ 38 N/A $ ‐ $ 1,900 $ 3.80 Holi April 7, 2019 Cupertino Chamber of Commerce 750 $ 984 $ 3,000 $ 18 $ 871 $ ‐ $ 4,874 $ 6.50 Cherry Blossom April 27‐28, 2019 Toyokawa Sister City 10,000 $ 4,007 $ 17,466 $ 5,801 $ 4,356 $ ‐ $ 31,629 $ 3.16 World Journal May 11, 2019 World Journal/Cupertino Chinese School 3,000 $ 2,065 $ 4,960 $ 3,004 $ 4,356 $ ‐ $ 14,385 $ 4.80 Tournament of Bands October 13, 2018 Cupertino Tournament of Bands 4,625 $ ‐ $ 3,150 $ 185 $ 3,500 $ ‐ $ 6,835 $ 1.48 Heroes RunNovember 3, 2018 County of Santa Clara 1,000 $ ‐ $ 4,326 $ 3,200* N/A $ ‐ $ 4,326 $ 4.33 TotalEst. Cost Per AttendeeFestival Date Festival ProducerApproximate AttendanceWaived Fees City Expenses
Performing Arts De Anza/SF Shakespeare●Recreation & Community Services +$67,000; reduced by $15,000 from Proposed Budget●Estimated Revenues - $8,500●Average cost per participant - $3,656
How the City Supports Performing ArtsSan Francisco Shakespeare Festival – Performance●City funds the free program at Memorial Park Amphitheatre ●2017: Hamlet ●2018 Plan: A Midsummer Night's DreamSan Francisco Shakespeare Festival – Programming/Youth Theatre ●2017 Youth Summer Camp (doing again for 2018)●Play: Julius Caesar ●Ramayana – Youth Theatre Production in partnership with enActe Arts●3 Performances at Quinlan in 2017Summer Camps●CLAP Arts: Summer 2017. Camps include:●Center Stage Camp, Get Up and Dance Camp, Hogwarts Camp, Hip Hop Camp
Consolidation of CommissionsFY 2018‐19 PROPOSED BUDGETLibrary Comm. Public Safety Comm. Parks & RecreationCONSOLIDATED BUDGETSalary and Benefits 11,810$ 11,254$ 20,403$ 20,403$ Materials and Supplies Office Supplies 200$ 5,000$ 56$ 5,000$ Meeting Expenses‐$ ‐$ 2,400$ 2,400$ General Supplies 300$ ‐$ 525$ 525$ Conference and Meeting 200$ ‐$ 7,000$ 7,000$ Contract Services 4,700$ 10,000$ 500$ 10,000$ Cost Allocation 9,870$ 1,941$ 9,282$ 9,870$ Contingencies 270$ 750$ 524$ 1,246$ 5% of Materials and ContractsTOTALS27,350$ 28,945$ 40,690$ 56,444$ Total Consolidated(96,985)$ Less Total of all CommissionsGRAND TOTAL 96,985$ (40,541)$ Total Projected Savings
Issues and ChallengesRetirement CostsRevenue VolatilityHealth Benefits
Recommendations●Adopt Resolution No. 18-056 establishinga special project budget for Public WorksTraffic Engineering Program for costsrelated to Apple Pass through Revenuesfor FY 2018-19●Adopt Resolution No. 18-057 establishingan Operating Budget and Capital Budgetfor FY 2018-19
Recommendations●Adopt Resolution No. 18-058 establishingan Appropriation Limit for FY 2018-19●Approve the appropriation of $22,000 inPublic Works for the Senior Mobility/RYDEProgram●Approve the appropriation of $175,000 inCommunity Development for the BMRLinkage Fees Update
Recommendations●Approve the appropriation of $67,000 inRecreation and Community Services for aPerforming Arts Program●Approve the appropriation of $25,000 in Administration for the Cities Association Ad Hoc Committee for the Santa Clara/Santa Cruz Counties Airport/Community Roundtable
Recommendations●Approve the appropriation of $3,500 for Sheriff’s costs related to the Tournament of Bands
Next StepsFY 2018-19Hearing and Adoption June 5thCIP June 5thPublish the Final Budget August 1stFirst Quarter Report Nov 2018
Accessing the BudgetOnline at www.cupertino.org/budget On the City’s transparency portal www.cupertino.org/opengovCopies available at City Hall and the Cupertino Library