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21-0601_MERCEY HOUSE LIVING CENTERS, INC._PowerPoint_F2bAdoption of Budget for Fiscal Year 2021-22 and Related Matters Item F2b June 1, 2021 Budget Workshop •On May 4 staff reviewed proposed budget with Council •Council directed staff to bring budget for adoption on June 1, after reflecting the following adjustments: •Increase budget for Mercy House services by $30,000 •Decrease OCSD budget by $64,000 (second estimate) 2 General Fund Budget Summary •Budgeted revenues exceed budgeted expenditures by $990,000 •This budget figure includes: •Council-directed workshop adjustments •Results of recently completed labor negotiations •Major contributors: •Elimination of prior structural deficit (Spring 2020 Reorganization) •Rapid recovery of sustaining revenues •Continued higher than normal development revenue 3 Proposed Changes in Employee Positions •Temporary part-time intern position (Public Works) •Included in proposed budget •Environmental Programs Analyst classification •Not included in proposed budget •To be funded upon effective date of utilities reorg •Forfeited Construction and Demotion funding 4 Results of Labor Negotiations •3-year agreement: •2% cost of living increases for 2021-22 and 2022-23 •2.5% cost of living increase for 2023-24 •One-time retention and recognition payments of $500 per employee •For MPEA members, an additional one time $300 telecomputing payment for use of employee-owned devices while working remotely •Impact -$150,000 increase in Fiscal Year 2021-22 General Fund budgeted expenditures 5 Results of Labor Negotiations •Expanded use of Personal Necessity Leave (CEA) •Addition of one recognized holiday (Martin Luther King day) •Results of labor agreements will be reflected in final budget 6 First Amendment of Sheriff Contract •Five -year agreement approved June 2020 •Proposed amendment establishes funding for each budget period •No change in service level •Reflects 4.4% increase over Fiscal Year 2020-21 cost 7 Mercy House Agreement •Expand homeless outreach supportive services •From one half-time position to one full-time position •Supportive services: •Homelessness prevention •Referrals for substance abuse counseling and medical treatment •Housing identification 8 Stonefield Park Synthetic Turf Project •Project in proposed Seven Year Capital Improvement Program •Replace natural turf with durable synthetic turf with long-term cost savings •On CUSD land •Currently scheduled for 2022-23 •Requesting to advance design phase ($300,000) to 2021-22 •Keeps construction on schedule and provides opportunity to explore additional sources of funding 9 10 Reserve Targets and Allocations –General Fund Reserve Proposed Reserve Targets Proposed Allocation of Available Funds Cash Flow $5,000,000 $5,000,000 Economic Uncertainty 10,000,000 10,000,000 Contingencies 5,000,000 3,500,000 Capital Replacement/City Hall Improvements 2,500,000 2,500,000 Eastern Open Space Deficit 2,500,000 2,500,000 Total $25,000,000 $23,500,000 Proposed Update of Investment Policy •Remove investment type not used by City •Supranationals – •Bonds issued by multinational organizations that lend to private sector worldwide •Removed due to complexity and abundance of available alternatives with comparable yields 11 Housing Authority Budget •Budgeted revenue -$434,000 (rental and investment income) •Budgeted expenditures -$272,000 (program expenses) 12 Recommendations 1.Adopt budget resolution, subject to adjustments for labor agreements and design funding for Stonefield project 2.Adopt seven-year CIP resolution 3.Approve seven-year Measure M2 CIP 4.Adopt appropriations limitation (Article XIIIB of Constitution) 5.Adopt debt service levy for Measure Y bonds 6.Approve reserve targets and allocations 13 Recommendations 7.Approve MOU for Classified Employees Association (CEA) 8.Approve MOU for Management and Professional Employees Association (MPEA) 9.Approve revised personnel rules and regulations 10.Adopt resolution for revised salary tables and Environmental Programs Analyst classification 14 Recommendations 11.Approve updated investment policy 12.Approve first amendment of law enforcement agreement 13.Approve Mercy House agreement 15 Thank you QUESTIONS?