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RPV Long Range Financial Plan Volume II - Financial Forecast, Analysis and Alternatives (1981) RALPH ANDERSEN AND ASSOCIATES I CITY OF RANCHO PALOS VERDES LONG RANGE FINANCIAL PLAN VOLUME II FINANCIAL FORECAST, ANALYSIS AND ALTERNATIVES I 1.. I I E I. 1446 ETHAN WAY • SUITE 101 • SACRAMENTO, CALIFORNIA 95825 • (916) 929-5575 CITY OF RANCHO PALOS VERDES LONG RANGE FINANCIAL PLAN VOLUME II FINANCIAL FORECAST, ANALYSIS AND ALTERNATIVES April , 1981 Prepared by: Ralph Andersen & Associates 1446 Ethan Way Suite 101 Sacramento, California 95814 (916) 929-5575 TABLE OF CONTENTS Page Number CHAPTER I INTRODUCTION AND OVERVIEW 1 CHAPTER II FINANCIAL FORECAST 5 SECTION A: REVENUES 6 SECTION B: EXPENDITURES 15 CHAPTER III ANALYSIS AND CONCLUSIONS 22 CHAPTER IV FINANCING ALTERNATIVES 32 APPENDICES APPENDIX A: Current City Boundaries, Revenue Forecast A-1 APPENDIX B: Current City Boundaries, Expenditure Projections. B-1 APPENDIX C: Eastview Area Annexation, Revenue Forecast C-1 APPENDIX D: Eastview Area Annexation, Expenditure Projections D-1 APPENDIX E: Full-Time Employee Projection E-1 INDEX OF TABLES AND CHARTS Table Page Number 1 1981-82 and 1990-91 Principal General Fund Revenues 7 2 Annual Percent Change In Revenue 10 3 Annual , Recurring Expenditure Categories As A Percent Of Total Expenditures 17 4 Parks Development Projection 20 5 Civic Center Master Plan Expenditure Projection 21 6 Revenue vs. Expenditure Forecast by Fund 23 7 General Fund Without Parks Maintenance & Operation 24 8 Summary of Operational Resources and Requirements (Constant Dollars) 28 9 Summary of Operational Resources and Requirements (Inflation Dollars) 29 10 Summary of Eastview Area Revenue and Expenditures 31 Chart 1 Revenue Growth: In Constant Dollars 12 2 Revenue Growth: Including Inflation 12 3 Expenditure Trend: In Constant Dollars 16 4 Expenditure Trend: Including Inflation 16 5 Annual , Recurring Expenditure Trends 18 CHAPTER I INTRODUCTION AND OVERVIEW This Is One Of Two Volumes Of Which The Long Range Financial Plan Is Comprised The Long Range Financial Plan Report is separated into two volumes which are: . Volume I, a detailed presentation and definition of assump- tions used in preparing revenue and expenditure projections of the Financial Plan. That volume not only makes clear the basis for financial projections, but also provides the City with important information necessary to update the plan per- iodically, er- iodically, or modify assumptions in light of changing con- ditions. on- ditions. . Volume II, A presentation of all financial projections, including ten-year annualized revenue and expenditure pro- jections, an analysis of trends, conclusions, and alterna- tive financing approaches. This Volume Presents The Long Range Financial Plan Projections, Analysis, Con- clusions and Alternative Financing Approaches Volume I involved a number of tasks which developed assumptions and methodolo- gies to be used in the Financial Plan. This volume represents the completion of subsequent tasks that developed revenue projections (Appendices A and C) detailed by revenue source in both constant (1980) dollars and with inflation assumptions. Likewise, expenditure projections (Appendices B and D) were de- tailed by each City budget category in both constant and inflationary dollars. 1 This rgport is organized into chapters which identify financial forecast trends (Chapter II) , provide an analysis and conclusions regarding the City's long term financial condition (Chapter III) , and present financing alternatives (Chapter IV) . Detailed revenue and expenditure data are contained in a series of appendices. A Series of Tasks Were Completed Project tasks were divided into four phases. A major phase was Phase I, which resulted in Volume I of this report, Revenue and Expenditure Assumptions. After the City Council and City staff reviewed and approved assumptions and methodology detailed in the draft Volume I, any necessary changes were incor- porated into the current Volume I, and staff proceeded with the remaining phases of the project. The remaining phases and tasks which have been com- pleted include: Phase II: . Developed a long range forecast of revenues and expenditures using the assumptions defined and agreed upon in Phase I. . Developed appropriate charts, tables, and graphics depicting revenue and expenditure trends and forecasts. Phase III: . Identified financing alternatives available to the City for a long range financial plan considering the results of the long range expenditure and revenue forecasts developed in Phase II. 2 . Identified alternative revenue sources to accomplish the capital project goals of the City. Phase IV: . Prepared a draft final report (Volume II) for review with the City which presents a long range financial plan and in- cludes: n- cludes: - Ten year annualized revenue and expenditure projections showing net overall surplusCorD deficit for each per i cid, including: .. Separate forecasts for current City boundaries and the planned Eastview area annexation. .. Projections in both constant (1980) dollars, and inflated dollars. .. Separate projections for ongoing opera- tions, and non-recurring costs. .. Identifiable impacts of Proposition 13 and 4. - An identification of alternative revenue sources that might be available to fund any proj ected deficiencies. . Prepare a final report which incorporates any needed modi- fications to the draft report, and present it to the City. After review of the report by the City, the remaining task will be accom- plished. 3 . Conduct a training session for designated City staff on use v of the financial plan and procedures for updating the plan. 4 CHAPTER II FINANCIAL FORECAST Revenues and Expenditures Are Forecast In Constant And Inflationary Dollars To The Year 1990-91 This chapter contains a summary of forecasted revenues and expenditures for the ten-year period 1981-82 through 1990-91. Separate forecasts are made in con- stant dollars and inflationary dollars. The constant dollar forecast permits an analysis of real growth and trend changes without the distorting effects of inflation. This inflation forecasts help identify the compounding impact of inflation on City finances. This chapter is divided into two sections which discuss revenues and expendi- tures tures respectively. Major changes, patterns or trends are discussed and are supported by the detailed data contained in the appendices which are organized as follows: l 4 Appendix A: Current City Boundaries Revenue Appendix B: Current City Boundaries Expenditures Appendix C: Eastview Area Annexation Revenue Appendix D: Eastview Area Annexation Expenditures Appendix E: Full-Time Employee Projection Financial Forecasts Are Based On Assumptions And Methodology Presented In Volume I Of This Report On January 13, 1981, project staff reviewed with the City Council and City staff, recommended assumptions and methodology for preparing the financial 5 forecasts contained in this report. The City Council approved those assump- tions with certain modifications and those are contained in Volume I of this report. In reviewing all projections, it is important to note that forecasted revenues and expenditures reflect the extension of current _policies_ and levels of service over the next ten years. An important use of this report will be to re-evaluate certain policies and service levels in light of the information provided. Section A: Revenues Certain Key Revenue Categories Continue To Have A Major Influence On The City's Total Resources As indicated in Volume I, certain revenue categories generate significantly more revenue than others. In 1980-81,0of the 21 recurring ger.eral fund rev- enue categories generated nearly 90% of the total . These eight revenue cate- gories, representing approximately 38% of the revenue sources continue to gen- erate nearly 90% of the City' s total general fund revenue over the ten year period. Since many of these revenue sources grow proportionately more in inflationary periods, their impact is then even greater considering inflation. � � The top 3 revenue categories represent 54% of general fund revenue in 1981-82 �,i ( and grow to 62% by 1990-91. These are Motor Vehicle In-Lieu Fees, Sales Tax, ` 'and Property Tax. It is significant to note that while Proposition 13 has significantly reduced property tax revenues, they continue to be a principal revenue source for the City of Rancho Palos Verdes, particularly as the City grows toward the build-out anticipated by the General Plan. The major revenue sources and the changes occurring from 1981-82 to 1990-91 are indicated by the following table: 6 TABLE 1 1981-82 Principal General Fund Revenues Constant $ Percent Inflation Percent Rank Revenue Source Amount of Total $ Amount of Total 1 Motor Vehicle In-Lieu Fees $ 714,188 28% $ 773,952 28% 2 Sales and Use Tax 384,961 15 410,150 15 3 Property Tax 284,067 11 292,183 11 i 4 Interest 243,000/ 9 270,000 10 5 Franchise Taxes 189,312 7 - 206,387 8 6 Building and Safety Fees 155,000 6 155,000 6 7 Property Transfer Taxes 125,837 5 139,571 5 8 Cigarette Tax 109,496 4 109,496 4 TOTALS $2,205,861 86% $2,356,739 86% All General Fund Revenue $2,560,048 100% $2,952,338 100% 1990-91 Principal General Fund Revenues Constant $ Percent Inflation Percent Rank Revenue Source Amount of Total $ Amount of Total 1 Motor Vehicle In-Lieu Fees $ 749,280 25% $1,679,160 27% 2 Sales and Use Tax 663,754 22 1,394,226 23 3 Property Tax 440,681 15 717,505 12 4 Franchise Tax 214,200 7 480,060 8 5 Building and Safety Fees 155,000 5 318,532 5 6 Property Transfer Tax 142,380 5 404,040 7 7 Interest 113,156 4 275,786 5 8 Business License Tax 110,944 4 242,079 4 fTOTALS $2,589,395 88% $5,511,688 90% All General Fund Revenue $2,952,338 100% $6,112,106 100% 7 • The City Has Little Direct Control Over Its Principal Revenue Sources An important consideration in City financial planning is the fact that the City has little direct control or influence over the eight revenue categories that constitute nearly 90% of City general fund revenue. Of those revenues shown in the preceding Table 1, all but two have tax rates or fees established by State law. As for the other two, Building and Safety fees are required by State law to bear a relationship to the cost of the service, and interest revenue is a direct function of the availability of other revenues and prevail- ing investment rates. The amount of revenue can, however, be influenced indirectly by the City. For example, by agressively encouraging additional sales tax generating businesses to locate in the City, additional sales tax revenue can be derived. The City has taken another unique approach in this regard by the agreement with the City of Rolling Hills Estates to share their sales tax revenues to offset Rancho Palos Verdes public safety costs. Other revenues relate very closely to the rate and amount of development or population growth in the City. These would include Motor Vehicle In-Lieu fees and Cigarette Tax (per capita) , Property Tax and Property Transfer Tax (growth by the value of new construction), Fran- chise Fees (growth influenced by development) , and Building and Safety Fees (directly affected by construction). Development And Population Are Major Influences On City Revenues The City is well aware of the effects of population on City revenues, having set aside a special reserve for the anticipated revenue decline in 1981-82 when the City's official population (for purposes of per capita revenue subventions) will be based on the 1980 United States Census data (36,510) rather than the 8 estimated amount of three times the number of registered voters (59,925) esta- blished when the City incorporated, which remained in effect until the official census. The City will face a similar situation with the Eastview area annexa- tion which will have per capita revenues come to the City based on three times the registered voters (approximately 12,501) rather than the estimated actual population of 6,671. The City will benefit from this "windfall" provision of State law until the next Federal Census in 1990 or until the City's actual population exceeds the estimate (not likely until after 1990) . A number of revenues come to the City as State subventions all or in part, on a per capita basis. These include: . Motor Vehicle In-Lieu Fees 8o - SI 1 , 75- 7, 7 y o = Lio ?" . Cigarette Tax �- / ' 3 5 �� 3 c.. 7 - . Highway Users Taxes . Federal Revenue Sharing In 1980-81 these amounted to $1,757,740 or 40% of the City's annual , recurring revenues. In 1981-82 these will decrease to $1,359,367, a reduction of $398,373 or 23%/In the future, this amount will increase proportionate to the City's population growth. Also, a new revenue source, Financial Aid to Local Agencies should come to the City from the State, with one half the amount based on population, and is estimated at $75,724 in 1981-82. The effect of popula- 1 �_ tion change on City revenues can be seen further in the following review of the revenue forecast. 9 After An Anticipated Decrease In 1981-82 And 1982-83, Total City Revenues Will Increase An Average Of 1.2% Per YearAs Real Growth Until 1990-91 In 1981-82 the City will experience a decrease in revenue as a result of a change to actual population being used as the basis for receiving State per capita subvention revenue. In 1982-83, further decrease will occur due to de- creasing grant revenue in the Highway and Transportation Fund. In subsequent years, total revenues will increase an average of 1.2% per year, with general fund revenues increasing an average of1.6%,;-5per year in constant (1980) dol- 1 ars. When inflation assumptions are taken into consideration, total revenue will increase an average of <1.5% per year\ through 1990-91, with general fund revenues increasing by an average of<9.p . When the City is bu i l tout --- in 1990-91, total revenues wi 11_ decline again due_to a sharp reduction in non- recurring development related revenues. This is demonstrated by the following table. TABLE 2 ANNUAL PERCENT CHANGE IN REVENUE Constant Dollar Change Inflationary Dollar Change Year General Fund All Revenue General Fund All Revenue 1981-82 (-8.6%) (-21.6%) (-2.4%) (-16.6%) 1982-83 0% (-8.9%) 7.8% (3.8%) 1983-84 2.4% (1.0%) 10.4% 4.4% 1984-85 0.8% 1.0% 8.9% 6.6% 1985-86 1.0% 0.8% 8.4% 7.7% 1986-87 2.1% 1.5%. 9.7% 8.7% 1987-88 2.3% 1.6% 10.0% 8.9% 1988-89 2.2% 1.5% 9.9% 9.0% 1989-90 2.2% 1.6% 9.9% 9.0% 1990-91 1.6% (-12.2%) 9.3% (-10.1%) 10 As can be seen from Table 2, general fund revenues will grow at a faster rate than the total . In fact there is essentially no real growth in revenues out- side the general fund, with the exception of Highway Users Taxes which are subvented to the City on a per capita basis. Other non-general fund revenues are primarily non-recurring and related closely to development in the City. The trend in City Revenues Can be seen graphically by Chart 1 and 2 on the following Pae.9 Non-Inflationary Growth In Revenues Is Minimal , And Is Largely Due To Develop- Ment, Population Growth, And Real Economic Growth As can be seen on Chart 1, the City will experience relatively little real growth in_revenue over the next ten years. Including inflationary influences, r revenue will increase an average of approximately 8.5% per year. This is largely offset by the i nfl ati mary....impact_._on---_expenditures as noted in Section B of this chapter. Real revenue growth will occur as a result of development, _pcmulatei -r-owt.h,_ and _r_eaL_aconomic growth (primarily affecting sales tax revenue). The impact of each of these factors is summarized as follows: I . Development will affect General Fund revenues primarily in the areas of property tax and property transfer tax as the value of new construcion increases the base to which these respective taxes are applied. The Parks and Recreation Fund i s highly dependent_up vel oprnent_ to maintain revenues in areas of Quimby Act Park Fee revenue and Environmental Excise Tax revenue. Without development, the Parks and Recreation Fund must depend solely on Federal Revenue Shar- ing, and there is considerable doubt as to whether that will be a continuing revenue source. 11 CHART 1 REVENUE GROWTH: IN CONSTANT DOLLARS In Million $ 7.0 - 6.0 - 5.0 - • - ALL REVENUE 4.0 - 3.0 - • \ � � . GENERAL FUND 2.0 - 80-1 81-2 82-3 83-4 84-5 85-6 86-7 87-8 88-9 89-90 90-1 YEARS CHART 2 REVENUE GROWTH: INCLUDING INFLATION In Million $ ALL REVENUE 8.0 - 7.0 6.0 - GENERAL FUND _ / • 5.0 - • 4.0 - • • 3.0 - • • � • i • • • — 2.0 - 80-1 81-2 82-3 83-4 84-5 85-6 86-7 87-8 88-9 89-90 90-1 YEARS 12 . Population, as noted earlier, highly influences revenues in both the General Fund and the Highway and Transportation Fund. As the City is built out, a leveling in revenues can be expected as is projected in 1990-91. This leveling is compounded by reductions in development revenue that will occur as the City is built out. . Real Economic Growth tends to impact primarily 'Sales Tax and Business License Tax Revenues. Real (non-inflationary) growth in business activity is not expected to exceed an average 3.5% per year. Actual declines have been exper- ienced recently in Cigarette tax revenue, and to some extent in Highway Users taxes reflecting decreased consumption in each area. Revenues From The Eastview Area Annexation Will Be Essentially Constant Over The Ten Year Period The Revenues Forecast for the Eastview Area Annexation are detailed in Appendix C and will come to the City when annexation is implemented. Revenues to the City from the Eastview Area are primarily influenced by the current population of the area; little or no additional devel opment_can be expected. The annexa- tion will not likely generate additional revenue in the Federal Revenue Sharing Fund, Environmental Excise Tax Fund, nor Quimby Act revenue in the Parks and Recreation Fund. Since the Federal Revenue Sharing Act was adopted with a constant appropriation and population is only one of many factors in the allo- cation formula, no additional Revenue Sharing revenue is projected. Environ- mental Excise Tax and Quimby Act revenue is not projected since no development is expected in the annexation area. 13 Significant amounts of General Fund Revenue and Highway Users Tax Revenue can be expected, primarily due to a significant sale tax base in the Eastview area, and the additional population the area will bring to the City' s population base. As noted earlier, the population base for distributing State per capita subvention revenue will be based upon three times the number of registered voters or 12,501. This will decrease to the actual population of approximately 6,671 when the 1990 Federal Census is conducted and is projected to decrease total Eastview Area Revenues by approximately 18% in that year. 14 Section B: Expenditures Overall Expenditure Trends Reflect Increases In Recurring Maintenance Costs In The General Fund, And Highway And Transportation Fund; And A High Level Of Construction Planned For The Parks And Recreation Fund And Capital Improvements Fund Throughout the ten year study period, a large volume of construction activity has been planned for the Parks and Recreation Fund to implement the Parks Master Plan, and implementation of Civic Center Master Plan is reflected as construction expenditures in the Capital Improvements Fund. The General Fund is, in turn, impactedrimarily in added costs to operate and maintain the parks constructed. Growth trends are graphically illustrated by the following charts which reflect both constant dollar trends (Chart 3) and expenditure trends including inflation (Chart 4) . Annual, Recurring Costs Are Reflected In The General Fund, Highway And Trans- Portation Fund, and Transfers To The Equipment Replacement Fund The General Fund represents nearly one-half of the City's ongoing operations and maintenance costs. Additional maintenance costs are shown in the Highway and Transportation Fund which represents the other half of annual , recurring costs. Projected expenditures for the Highway and Transportation Fund include that level estimated by the Public Works Director as necessaryto preserve or maintain existing highways and structures, including_reconstruction projects. The General Fund expenditure projections generally reflect a continuation of current levels of service with the exception of costs associated with parks development and minor increases reflective of population increases. Changes in annual , recurring expenditures (General Fund and Highway and Transportation Fund) are indicated by the following table which shows the various expenditure categories as a percent of total annual recurring expenditures. 15 CHART 3 EXPENDITURE TREND: IN CONSTANT DOLLARS In Million $ 6.0 - 5.0 - 4.0 - 3.0 - • `•____� . • GENERAL FUND • + x x • HIGHWAY & TRANS. 2.0 • CAPITAL IMPROVEMENT FUND FUND • 1.0 - •/ - - - - • - - -• - - - • - • - • - 0.0 - • — • • ` . PARKS AND REC. FUND • I I 80-1 81-2 82-3 83-4 84-5 85-6 86-7 87-8 88-9 89-90 90-1 YEARS CHART 4 EXPENDITURE TREND: INCLUDING INFLATION In Million $ 7.0 - GENERAL FUND 6.0 - • HIGHWAY & TRANS. FUND 5.0 - 4.0 - xx 3.0 - 2.0 - ,` _ CAPITAL IMPROVEMENTS FUND - -' 1.0 - f �-- - -•- - •-- - -•--- - - ,.j PARKS AND REC. FL 80-1 81-2 82-3 83-4 84-5 85-6 86-7 87-8 88-9 39-90 90-1 YEARS 16 TABLE 3 ANNUAL, RECURRING EXPENDITURE CATEGORIES AS A PERCENT OF TOTAL EXPENDITURES (In Constant Dollars) Expenditure Category 1981-82% 1985-86% 1990-91% City Council 0.2% 0.2% 0.2% City Manager 1.5 1.4 1.4 City Attorney 2.7 2.6 2.5 Public Works 2.2 2.3 2.3 Parks and Recreation 6.8 9.9 11.7 Environmental Services 3.0 2.9 2.8 Community Services 1.3 1.3 1.2 Administrative Services 2.7 3.1 2.6 Non-Departmental 9.4 11.2 13.5 Public Safety 17.1 17.6 17.7 Regulatory, Inspection 0.6 0.6 0.6 Subtotal General Fund 47.7 53.3 56.7 Highway & Transportation Fund 52.0 46.6 43.3 Equipment Replacement Fund 0.3 0.2 0.2 TOTAL, Recurring 100.0% 100.0% 100.0% Operations And Maintenance Costs Resulting From Parks Development Are The Major Reason For Increases In Annual , Recurring Expenditures Table 3 demonstrates that Parks and Recreation and Non-Departmental expendi- tures will comprise an increasing portion of total recurring expenditures while all others will remain essentially the same or require smaller portions of total recurring expenditures by 1990-91. Increases in Parks and Recreation, and Non-Departmental expenses are directly related to operation and maintenance of Parks developed through the Parks and Recreation Fund. Non-Departmental 1 costs includes water and electricity costs associated with parks and employee overhead costs relative to employees added for parks maintenance and opera- tions. 17 Relative growth trends in annual recurring expenditures are further demonstra- ted by Chart 5 below. CHART 5 ANNUAL, RECURRING EXPENDITURE TRENDS (In Constant Dollars) In Million $ 4.5 I A LL OTHERS 3 - 3.0 - ► 2.5 - 2.0 - 1.5 - 1.0 - NON-DEPARTMENTAL 0. 5 - •� �� _ _ r„ _ __._ - _ _ PARKS AND RECREATI 00 - x 80-1 81-2 82-3 83-4 84-5 85-6 86-7 87-8 88-9 89-90 90-1 YEARS Non-Recurring Expenditures Are Reflected In The Parks And Recreation Fund And The Capital Improvements And Acquisition Fund Implementation of the Parks Master Plan and Civic Center Master Plan will result in a significant level of expenditure over the next ten years in both the Parks and Recreation Fund and the Capital Improvements and Acquisition Fund. These are detailed in Appendices B and D of this report. No non-recur- ring capital expenses are projected to occur as a result of the Eastview Area Annexation. 18 Expenditures In The Parks And Recreation Fund Are Scheduled According To Avail- able Special Revenue Sources And Are Largely Dependent Upon Development In The City Priorities for implementation of the City' s Park Master Plan have been estab- lished by the City and were used as the basis for projecting parks development expenditures in accordance with forecasts of specified revenues which have, by current City policy, been allocated to parks development and acquisition. These revenues include: Quimby Act Development Fees Environmental Excise Tax Federal Revenue Sharing All but Federal Revenue Sharing are directly related to development. ' Develop. ment related revenues constitute an average of approximately 75 percent of revenue available for parks development. Assuming the availability of these revenues as indicated in the revenue forecast, park development expenditure priorities were projected as follows in Table 4. TABLE 4 PARKS DEVELOPMENT PROJECTION Projects Scheduled By City Priority and Available Funds (In Constant Dollars) Year Funds Available Project Development 1981-82 Reserve Balance School Site Payment $ 131,000 (from '80-81) $ 28,160 Hesse, Phase I (95% of Annual Revenue 785,483 project) 922,643 House Sale 240,000 Total: 1981-82 $1,053,643 Total : 1981-82 $1,053,643 19 TABLE 4 - Continued PARKS DEVELOPMENT PROJECTION Projects Scheduled By City Priority and Available Funds (In Constant Dollars) 1982-83 Annual Revenue $ 785,511 School Site Payment $ 124,800 1980 St. Park Bond 144,750 Hesse, Phase I (balance) 77,357 Total : 1983-83 $ 930,261 Hesse, Phase II (100% 364,810 Hesse, Phase III (31%) 363,294 Total: 1982-83 $ 930,261 1983-84 Annual Revenue $ 785,509 School Site Payment $ 118,600 Total : 1983-84 $ 785,509 Hesse, Phase III (89%) 666,909 Total: 1983-84 $ 785,509 1984-85 Annual Revenue $ 785,483 School Site Payment $ 112,400 Total: 1984-85 $ 785,483 Hesse, Phase III (balance) 124,371 Pt. Vicente, Phase II (52%) 548,712 Total: 1984-85 $ 785,483 1985-86 Annual Revenue $ 785,483 School Site Payment $ 106,200 Total : 1985-86 $ 785,483LaderacLi1,PPhaseTI 100%� 540,000 Pt. Vicente, Phase VI (29%) 130,995 Total: 1985-86 $ 785,483 1986-87 Annual Revenue $ 785,483 Pt. Vicente, Phase VI (bal .) $ 319,005 Total : 1986-87 $ 785,483 Abalone Cove Beach 50,000 Trail System 25,000 Pt. Vicente, Phase III (55%) 391,478 Total: 1986-87 $ 785,483 1987-88 Annual Revenue $ 785,483 Pt. Vicente, Phase III (bal ) $ 317,522 Total : 1987-88 $ 785,483 Pt. Vicente, Phase IV (34%) 467,961 Total: 1987-88 $ 785,483 1988-89 Annual Revenue $ 785,483 Pt. Vicente, Phase IV (92%) $ 785,483 Total : 1988-89 $ 785,483 Total: 1988-89 $ 785,483 1989-90 Annual Revenue $ 785,483 Pt. Vicente, Phase IV (bal .) $ 111,566 Total : 1989-90 $ 785,483 Pt. Vicente, Phase V (100%) 613,000 Portugese Bend (4%) 60,927 Total: 1989-90 $ 785,493 1990-91 Annual Revenue $ 196,000 Portugese Bend (18%) $ 196,000 Total : 1990-91 $ 196,000 Total : 1990-91 $ 196,000 20 r i Capital Improvement And Acquisition Fund Expenditures Reflect Implementation Of The Civic Center Master Plan Implementation of the several phases of the Civic Center Master Plan have been scheduled in accordance with the assumptions in Volume I of this report. These are detailed in Appendix B and are summarized in the following table. TABLE 5 CIVIC CENTER MASTER PLAN EXPENDITURE PROJECTION (In Constant Dollars) Year Master Plan Phase Amount 1981-82 Phase I (2) $1,747,475 1982-83 Phase I (2) 1,747,475 1983-84 Phase II 22,550 1984-85 Phase III 167,750 1985-86 Phase IV (2) 583,500 1986-87 Phase IV (1) 583,500 1987-88 Phase V (%) 591,675 1988-89 Phase V (%) 591,675 1989-90 Phase VI ' 220,400 1990-91 0 TOTAL $6,256,000 21 CHAPTER III ANALYSIS AND CONCLUSIONS Funding Resources Are Compared To Projected Expenditures By Fund To Determine Deficiencies Or Surpluses Utilizing the revenue forecasts and expenditure projections detailed in the appendices and discussed previously in Chapter II, an. analysis was prepared for each fund comparing funding resources (revenue, transfers from other funds, and reserves) with projected expenditures. Table 6 presents a summary of each fund for the ten year study period. 22 TABLE 6 REVENUE VS. EXPENDITURE FORECAST BY FUND (In Constant Dollars) 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1910-91 CURRENT CITY BOUNDARIES GENERAL FUND .a,TS'487o. ' Revenue $2,560,048 2,557,631 2,618,759 2,639,103 2,664,553 2,720,652 2,784,204 2,844,236 2,906,245 2,952,338 Expenditures .Z V 3a /Q a 2,389,002 2,510,656 2,556,233 2,638,604 _2,756 640 2,837,297 2,910 344 2,929,513 3,019,982 3,087, 82 Surplus/(deficit) 171,046 46,975 62,526 499 (92,087) (116,645) (126,140) (85,277) (113,737) (135,614) HIGHWAY AND TRANSPORTATION FUND Revenue 454,748 460,748 466,746 472,746 478,745 484,744 490,743 496,742 502,741 502,741 Grants _ 968,600 397,000 372,500 260,000 260,000 260,000 260,000 260,000 260,000 _26_0,000 Total Resources 1,423,348 857,748 839,246 732,746 738,745 744,744 750,743 756,742 762,741 762,741. Expenditures: Maintenance 1,045,833 1,045,833 1,045,833 1,045,833 857,941 829,853 803,103 803,103 803,103 803,103 ('1 Construction 1,557,000 1,078,500 1,172,500 1,552,800 1,552,800 1,552,800 1,557_,800 1552,800 1,552_,G00 14552„fl00 Surplus/(deficit) (1,179,485) (1,266,585) (1,379,087) (1,865,887) (1,671,996) (1,637,909) (1,605,160) (1,599,161) (1,593,162) (1,593,162) PARKS AND RECREATION FUND Revenue 650,760 555,510 410,760 410,760 410,760 410,760 410,760 410,760 410,760 - ro Transfers from other funds 402_,883 374,751 374,749 374,723 374,723 374,723 374,723 374,723 374,723 196,000 co Total Resources 1,053,643 930,2.61 785,509 785,483 785,483 785,483 785,483 785,483 785,483 196,000 Expenditures 1,053,643 930,261 785,509 785,483 785,483 785,483 785 483 785x483 785.,I83 196,000 Surplus/(deficit) - - - - - - - - CAPITAL IMPROVEMENT FUND Transfers from other funds - - - - - - - - - - Reserves 1,347,2.10 _ - - - - - - - - - Total Resources 1,347,210 - - - - - - - - Expenditures 1.,747,475 1,747 475 22,550 167 750 583,500 583,500 591,675, 591,675 __22(1009 - _____ Surplus/deficit) (400,265) (1,747,475) (22,550) (167,750) (583,500) (583,500) (591,675) (591,675) (220,400) - Among The Four Major Expenditure Funds, Only The Parks And Recreation Fund Is Projected To Have Sufficient Funding In analyzing the information presented in Table 6 as well as the detailed in- formation developed in the appendices, certain conclusions and findings become apparent and are discussed, by fund as follows: General Fund As noted in the preceding chapter, the principal increase in General Fund expenditures occurs as a result of operations and__ maintenance costs related to parks development. If park .a operations and maintenance costs are not included in_ General <, Fund expenditures, the General Fund would, in fact have grow- ing annual surpluses rather than deficits. This is demon- strated as follows: TABLE 7 GENERAL FUND WITHOUT PARKS MAINTENANCE & OPERATION • (In Constant Dollars) 1981-82 1986-87 1990-91 Revenue $2,560,048 $2,720,652 $2,952,338 Expenditures (less Park Maint. & Oper.) 2,465,2442 523,801 2,694,386 Net Surplus/(deficit) $ 94,804 $ 196,851 $ 257,952 Highway and Transportation Fund The Highway and Transportation Fund has historically been funded primarily by the Highway Users Tax and County Aid. These revenues have been supplemented by State or Federal grants and, occasionally by transfers from the General Fund. 24 ��\ Table 6 demonstrates that these historical funding sources will not be sufficient to provide a level of expenditure necessary to maintain highways and related transportation structures. This problem is compounded by inflation since Highway Users Taxes and County Aid do not increase proportion- ate to inflation (remain essentially constant) while costs of maintenance increases at or above inflationary rates. The expenditure projections for the General Fund assume no trans- fer of available revenue to the Highway and Transportation Fund, and only after transfers to the Equipment Replacement Fund. Unfortunately, the General Fund does not have avail- able revenues to transfer after 1984-85 in constant dollars, and not after 1981-82 when inflation is considered. As noted earlier, the General Fund would have additional revenue avail- able for transfer if added parks maintenance and operation costs were not born by the General Fund. Parks and Recreation Fund Sufficient revenues will be generated from Quimby Act park fees the Environmental Excise Tax and Federal Revenue Sharing to finance_park_development throughout the ten year period if the City continues to allocate all of these revenues to the Parks and Recreation Fund. As shown in Chapter II, Section B of this report (Table 4) , essentially all of the current Park Master Plan priorities can be accomplished within the ten year study period. The only exception is development of Por- tugese Bend which would have to be developed over a longer period, primarily since it is of lowest priority and would begin after the City is build out and development related 25 revenues are no longer received. It should be noted that approximate of the revenue to the Parks and Recreation Fund is related to development, therefore, implementation of the Parks Master Plan is laregly dependent upon continued development in the City and renewal of Federal Revenue Sharing l I in three years. Capital Improvement and Acquisition Fund All projected expenditures in the Capital Improvement and Acquisition Fund are related to implementation of the Civic Center Master Plan. The only funding resource available is the current reserves in that fund amounting to approximately $1,347,210. This is insufficient to finance even the first phase of development envisioned by the Master Plan. The Capital Improvement and Acquisition Fund has no specific funding source and has historically relied on transfers from the General Fund. As noted earlier, there will not be suffi- cient surpluses in the General Fund for transfer to this fund. Therefore, the City faces alternatives of raising new, additional revenue to finance the Civic Center , alt rnatives are discussed in the following chapter) , or reducing the scope to match currently +a i'1 ablg resources_ of a prnximately $1,347,210 in reserves. A reduced scope may be appropriate if the City is to continue to provide services on a primarily contractual basis. 26 The Two Areas Of Recurring And Non-Recurring Financial Needs Should Be Consi- dered The preceding analysis leads to a conclusion that the City has two principal areas of financing requirements. First, annual recurring operation and mainte- nance requirements are represented--by--the-General--Fund, Highway and Transporta- tion Fund and Equipment Replacement Fund. These funds should be viewed to- gether when considering the financing of ongoing operational and maintenance requirements of the City. Second, non-recurring requirements are primarily represented by the Parks and Recreation Fund and the Capital Improvement and Acquisition Fund. As noted earlier, sufficient revenues are projected to finance construction in the Parks and Recreation Fund, but there will not be sufficient revenue for implementation of the Civic Center Master Plan. With respect to ongoing operation and maintenance requirements, the primary influences are absorption in the General Fund of operation and maintenance costs of newly developed parks, and providing for ongoi nq maintenance and reconstruction needs in the Highway and Transportation Fund where revenues specific to that fund are insufficient, particularly considering inflation. If the three funds are viewed together that involve ongoing operation and maintenance requirements, the cumulative effects for the ten year period are presented in constant dollars in Table 8 and including inflation factors in Table 9. 27 TABLE 8 SUMMARY OF OPERATIONAL RESOURCES AND REQUIREMENTS (In Constant Dollars) 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 Total General Fund Revenue $2,560,048 2,557,631. 2,618,759 2,639,103 2,664,553 2,720,652 2,784,204 2,844,236 2,906,2.45 2,952,338 Less: General Fund Expenditures 2,376,272 2,497,926 2,543,503 2,625,874 2,743,910 2,824,567 2,897,614 2 916.783 3,007,15? 3,075,52 Balance: Surplus/(deficit) 183,776 59,705 75,256 13,229 (79,357) (103,915) (113,410) (72,547) (101,007) (122,914) Less: Transfer to Equip. Repl. Fund 12730 12,730 12,730 ]2,730 12,730. 1?.1730 12,730 12,730 12730 12,730 Balance: Surplus/(deficit) 171,046 46,975 62,526 499 (92,087) (116,645) (126,140) (85,277) (113,137) (135,644) Less: Highway fund Deficit 1,179,485 1,266,585 1,379,187 1,865,887 1 671996 1,637,909 1,605,160 1 599,161 1,593,162 1,593067 Balance: Surplus/(deficit) $(1,008,439) 11,219,610) 11,316,561) 11,865,388) (1,764,083) (1,754,554) (1,731,300) (1,684,438) (1,706,899) (1,728,806) Additional Resources: co Reserve for Revenue Decline $ 500,000 - - - - - - - - - Balance: Surplus/(deficit) (508,439) (1,219,610) (1,316,561) (1,865,388) (1,764,083) (1,754,554) (1,731,300) (1,684,438) (1,706,899) (1,728,806) Annexation Revenue Surplus 277,644 310,906 316,271 336,550 342,909 364,316 _ 371,836 394,337 403,038 _212,1191 Net Balance: Surplus/(deficit) $ (230,7952 (908,704) (1,000,290) 11,528,838) (1,421,174) (1,390,238) (1,359_„464) 11,290,1011 11003,861) 11,515,815J. TABLE 9 SUMMARY OF OPERATIONAL RESOURCES AND REQUIREMENTS (In Inflation Dollars) 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 Total General Fund Revenue $2,734,231 2,946,293 3,252,093 3,540,303 3,838,007 4,211,999 4,633,048 5,090,841 5,594,595 6,117,106 Less: General Fund Expenditures 2,588779 2,975,988 3,289,173 3,699,760 4,173,649 4 638310 2,117,167 5582 352 6 211,851 L861,148 Balance: Surplus/(deficit) 145,452 (29,695) (37,080) (159,457) (335,642) (426,311) (504,119) (491,511) (619,256) (751,342) Less: Transfer to Equip. Repl. Fund _ 13,876 15,12.5 16,486 17,969 19,407 70,959 22,636 24,447 26,402 _ 28,515 Balance: Surplus/(deficit) 131,576 (44,820) (53,566) (177,426) (335,049) (447,270) (526,755) (515,958) (645,658) (779,857) Less: highway Fund Deficit 1,321,499 1,624,919 1,994,015 282,864 2,795,183 3,005,748 3232,964 3 52802 31840,589 4,188,056 Balance: Surplus/(deficit) $(1,189 924 11,669,799) (2,047,581) J_2,999,290) (3,130,232) (3,453 0182 (3,759,719 (4,44,81) (4,486 2171 (4.067,9131 Additional Resources: 1) Reserve for Revenue Decline $ 500,000 __- Balance: Surplus/(deficit) (689,923) (1,669,799) (2,047,581) (2,999,290) (3,130,232) (3,453,018) (3,759,719) (4,044,781) (4,486,247) (4,967,913) Annexation Revenue Surplus 3(16367 354,859 378138 423,495 455,314 512,791 556 392 630,779 688,230 _ 417,652. Net Bal.: Surplus/(deficit) $_5313,55 11,314940) ( ,669,443) (2,575,795) (2,674,918) (2,940,7271 13,203,327 (3,414,002 (3,798,0171 11,550 2611 The Eastview Area Annexation Will Provide Additional Revenue To The City As noted in Tables 8 and 9, an important additional funding resource for the City will result from annexation of the Eastview Area. Revenue derived from the Eastview Area is projected to exceed costs to serve the area throughout the ten year study period. This revenue surplus can be used throughout the City to help offset ongoing operational and maintenance requirements. Utilizing the detailed data contained in Appendices C and D, Table 10 was prepared to summarize the financial impact of the Eastview Area Annexation. 30 TABLE 10 SUMMARY OF EASTVIEW AREA REVENUE AND EXPENDITURES 1981_82 1982183 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91_ IN CONSTANT DOLLARS Projected Revenue $ 989,970 1,002,032 1,014,597 1,027,676 1,041,235 1,055,442 1,070,162 1,085,463 1,101,364 901,117 Projected Expenditures _ 712,326 691,126 _ 69,326 6911126 698,326 _691 126 _ 698,326 691,126 698,376 _.691,126 Surplus/(deficit) $ 277 644 310,906 31.6 271 136,550 342 9U9 364,316 371,836 394,137 403 038 212,991 IN INFLATIONARY DOLLARS Projected Revenue $1,062,087 1,155,166 1,758,702 1,373,660 1,491,272 1,62.0,904 1,764,126 1,92.2,151 2,096,315 1,923,767 Projected Expenditures 755,720 800,307 880, 64 950,T65 1,035,958 1,108,113 1,207,734 1,291,372 1708 085 1505,615 Surplus/(deficit) $ 306067 _ 354,859 378,138 423,495 455,314 _517_,791 556,392. J630,779 „688 230 _417,652 CHAPTER IV FINANCING ALTERNATIVES The City Should Consider Alternative Approaches To Financing Ongoing Operations And Maintenance, And Capital Improvements Chapter III demonstrates that the City has two basic areas which require an examination of alternative financing, (1) ongoing operations and maintenance costs which would require a recurring revenue source (particularly parks opera- tion and maintenance, and Highway and Transportation maintenance) , and (2) financing of non-recurring capital improvement costs, particularly the proposed Civic Center Master Plan. This chapter presents alternative approaches to financing these two areas which imply different sets of considerations and approaches. RECURRING FUNDING SOURCES Propositions 13 And 4 Have Placed Significant Limitations On Recurring Revenue Alternatives The passage of Proposition 13 (now Article XIIIA of the State Constitution) and Proposition 4 (now Article XIIIB of the State Constitution) place important limitations on the City's ability to develop new revenue sources. Generally, Proposition 13 prohibits the City from levying a property tax and limits growth in existing property tax revenue to the City which is levied by the County. Proposition 13 places a further limitation by requiring that any "special tax" (generally defined as a new tax, including increases in current taxes) receive approval by two-thirds of City voters. Fees, charges or assessments have not been interpreted as "special taxes" and can therefore provide a more readily implemented revenue source. 32 Proposition 4 places further limits in that all revenue derived from "proceeds of taxes" cannot exceed the base year (1978-79) limit as adjusted by (1) the percent increase in population (projected to average 1.6% for the City) and (2) either the percent change in the United States Consumer Price Index or the percent change in State per capita income, whichever is less (projected at an overall average of 8.4% in this study). As with Proposition 13, fees, charges and special assessments are not subject to the limitations of Proposition 4. Taking into consideration the impact of Propositions 13 and 4 as well as other statutory provisions, the following discussion of alternative additional fund- ing sources is presented: . Increase In Existing Taxes The City is essentially foreclosed from this alternative. As noted in Chapter II, most current revenues which generate significant amounts of revenue (nearly 90% of current City revenue) have tax -rates set by State law, and would require legislation and/or two-thirds voter approval . Revenue from these sources can be increased indirectly by increasing the base upon which the taxes are collected, most notably re- tail sales, and new property construction. . New Taxes As previously discussed, Proposition 13 prohibits implement- ing a new tax ("special tax") without a two-thirds approval of the voters. Further, if a new tax were to cause the City to exceed the Proposition 4 limit on taxes, not only would it require a two-thirds vote, but such a tax would also be 33 limited to four years authorization without another vote of approval . While it is possible to adopt a new tax (except on the value of property) under these conditions, it is not probable and could be of limited long term value. . Fees and Charges Neither of the Propositions prohibits a City from levying fees or charges based on recovering costs from users of ser vices. The only limitation is that of Proposition 4 which effectively provides that any amount of revenue from fees or charges which exceeds the "cost reasonably born" in pro- viding ro- viding the service must be considered a tax for purposes of the tax limit. Practically, the City has a viable source of revenue in charging users or beneficiaries for a number of municipal services. The City has already established fees which cover some or all costs in certain service areas. However, there may be current fees and charges that do not cover costs (including applicable indirect and overhead costs), and there may be additional service areas for which the City may wish to establish fees and charges. To that extent, additional ongoing revenues from fees and charges are available for use by the City. It should be noted that such revenues can vary with user demand for services. . Special Assessments Districts As with user fees and charges, special assessment districts may be established for a number of purposes specified by State Legislation. Generally, these districts are estab- lished within boundaries that define an area of benefit. 34 Those within the defined boundaries are assessed annual fees that are based on the cost and benefit received as esta- blished through a study. Typically, one or more areas or zones of benefit are established for proportioning costs, most often on a per parcel or household basis. Such assess- ments are set on a fixed amount basis and are typically re- vised annually based on costs of services provided. Such assessments may be used only for the purposes defined by the district and provisions of State law which authorize such districts. Special assessment district practices and procedures vary greatly but most commonly they may be esta- blished by a City Council after providing notice to affected property owners and providing an opportunity for a public hearing. Some require approval by vote of those in the district. Some examples of areas for which assessment dis- tricts may be established include: ,,/' - Park Maintenance (Landscape and Lighting Act of 1972) - Street Lighting (Landscape and Lighting Act of 1972) - Fire Service (authorized by Government Code Section 53970, and requires voter approval) - Police (authorized by Government Code Section 53970, and requires voter approval ) 35 . Private Homeowners' Associations Some operation and maintenance areas typically associated with government can be owned and operated by private home- owners' associations . This is most often done with park areas that are owned and maintained privately. A Special Assessment District For Landscape Maintenance Offers The City A Good Opportunity To Meet Recurring Financing Needs As noted previously in this report, if parks operation and maintenance costs are excluded, the General Fund would have a surplus of revenue, which could be applied to highway maintenance or other ongoing operations and maintenance requirements. One or more special assessment districts may be established under authority of the Landscape and Maintenance Act of 1972 which would effectively remove park, and perhaps other landscape maintenance costs from the General Fund. In this way, those benefiting from park improvements would pro- vide for their maintenance under the special assessment district and thereby relieve the General Fund of this added cost. Together with increased applica- tion of user fees and charges, such special districts can focus General fund resources on more generalized services such as public safety, regulatory and inspection services, general government, and operation and maintenance costs which cannot be associated with special benefit districts. NON-RECURRING/CAPITAL FUNDING SOURCES The Civic Center Master Plan Would Require Additional Funding The information provided in Chapter III indicates that the City has sufficient revenues allocated to the Parks and Recreation Fund to construct essentially 36 all current priorities of the Parks Master Plan over the next ten years. How- ever, the one non-recurring capital cost without sufficient funding is the Civic Center Master Plan. As currently envisioned, full implementation of the several phases of the Civic Center Master Plan will require considerably more funding than is currently available in the Capital Improvements and Acquisitions Fund reserves. Further, because of demands on General Fund revenues for ongoing operation and mainte- nance requirements, future transfers of revenue from the General Fund to fin- ance the Civic Center Master plan cannot be anticipated. Therefore, unless the scope of the Civic Center is reduced to match reserves currently available (approximately $1,347,210) , additional funding will be required. Additional Financing Alternatives Are Available For Capital Improvements As with recurring revenue sources, Proposition 13 has limited the alternatives for financing capital improvements such as the Civic Center Master Plan. One of the most frequently used and least expensive means of long term financing for capital improvements has been general obligation bonds which are secured by property tax. By prohibiting cities from levying a property tax, Proposi- tion 13 has eliminated this important historical funding source. However, other means of funding capital improvements are available and are discussed as follows: . Pay-As-You-Go The City has used this method to finance park construction, by dedicating revenues from Federal Revenue Sharing, Quimby Act park fees and the Environmental Excise Tax to the Parks and Recreation fund. However, as discussed previously under 37 recurring revenue sources, the City has a very limited ability to enact new or increased revenues sufficient to finance the Civic Center Master Plan, and existing revenue sources are not even sufficient for ongoing operations and maintenance. Therefore, the City has little or no oppor- tunity for pay-as-you-go financing. . Grant Funding Some special grant funding has been utilized by cities to supplement capital improvement costs, including economic development grants or special grants for energy efficient projects. Under current economic conditions and Federal budget policies, grant funding is very doubtful . . Revenue Bonds Basic authority for this funding source is the Revenue Bond Act of 1941 (Government Code Section 54.300, et. seq.) which provides for a majority vote, and specifies that revenue bonds are a means of financing an enterprise that is " . ..a revenue-producing improvement, building, system, plant, works, facilities, or undertaking used for. .." a number of specified purposes, none of which would be directly appli- cable to a civic center. However, the revenue bond techni- que is also incorporated into some of the other financing alternatives discussed subsequently. . Lease-Purchase This method of financing typically entails the formation of a private non-profit corporation for the sole purpose of 38 constructing the needed facility (civic center). Once formed, the private non-profit corporation issues bonds and supervises construction of the facility. The bonds are secured by an agreement between the non-profit corporation and the City which provides that the City will make annual lease payments sufficient to cover the annual principal, interest, and related costs of the non-profit corporation. The agreement further provides that when the bonds have been retired, title to the facility would vest with the City. Non-profit corporation status of the separate entity is important to avoid the activity being subject to federal and state taxes as well as property taxes. This is a viable alternative assuming the City will have sufficient revenue to pay annual lease payments. . Joint-Powers Or Joint Agency Financing This technique is similar to lease-purchase financing, ex- cept that a non-profit corporation is not utilized as the agency to construct and finance the facility. Instead, a contractual agreement with another governmental agency (federal government, state government, county, city, school or special district) establishes a separate, third agency under authority of the Joint Exercise of Powers Act, which may issue revenue bonds which are secured by annual lease payments. An ordinance approving the issuance of revenue bonds must be approved by each agency and the respective ordinances are subject to local referendum. An advantage of the joint agency approach is that interest cost on the bond funds is typically less. 39 . Assessment Bonds Similar to maintenance assessment districts, special assess- ment districts can be formed for the purpose of construct- ing certain public improvements by selling bonds which are secured by annual assessments on property within the defined assessment district. Special assessments are utilized for improvements that directly benefit property, e.g. , streets, curbs, gutters, water, sewers, and drainage. While this may provide a beneficial means of financing, many of the City's capital improvements needs (particularly in the Highway and Transportation Fund and perhaps the Parks and Recreation Fund) it would not seem effective for the Civic Center. However, should this financing method be applied to other areas, revenue might be released for application to Civic Center construction. 40 APPENDIX A CURRENT CITY BOUNDARIES REVENUE FORECAST • A-1 • REVENUE FORECAST: CURRENT CITY BOUNDARIES IN CONSTANT (1980) DOLLARS Base Year Forecast Years Revenue Category 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 General Fund AnnualRecurring_ Motor Vehicle In-Lieu Fees $ 954,330 714,188 673,103 683,986 694,868 705,750 716,633 727,515 738,398 749,280 749,280 Interest 300,000 243,000 196,830 159,432 129,140 102,312 104,430 106,832 109,096 111,42.3 113,156 Sales and Use Tax 281,310 384,961 450,046 516,998 535,092 553,821 573,204 598,668 619,620 641,308 663,754 Property Tax 270,540 284,067 298,270 313,184 328,843 345,285 362,549 380,677 399,710 419,696 440,681. Franchise Taxes 186,110 189,312 192,423 195,534 198,645 201,756 2.04,867 207,978 211,089 214,200 214,200 Building and Safety Fees 143,560 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 155,000 Property Transfer Tax 123,950 125,837 127,905 129,973 132,041 134,108 136,176 138,244 140,312 142,380 142,380 Cigarette Tax 113,350 109,496 105,773 102,177 98,703 95,347 92,105 88,974 85,948 83,026 80,203 Business License Tax 78,650 81,403 84,252 87,201 90,253 93,412 96,681 100,065 103,567 107,192 110,944 Fines, Forfeitures & Penalties 92,900 91,000 91,000 91,000 91,000 91,000 91,000 91,000 91,000 91,000 91,000 Financial Aid to Local Agencies - 75,724 76,969 78,214 79,458 80,702 81,947 83,191 /84,436 85,680 85,680 Other, Miscellaneous 106,060 106,060 l0_060 106,0610 106,060 106,060 106,060 106,)60 _- 106,060 106,060 106,060 Subtotal: Recurring Gen. Fund 2,649,760 2560,048 2,557,631 2 618,759 2,639,103 2 664,553 2,220 652 2,784,204 2,844,236 2,906,2.45 2,95.2,338 Subtotal: Non-recurring Gen. 152,050 Special Funds, Recurring: ry Highway and Transportation Fund: Highway Users Taxes 494,2.60 339,683 345,088 350,492 355,897 361,302 366,706 372,111 377,515 382,920 382,920 County Aid & Other Grants 905,280 1,038,600 467,000 442,500 330,000 330,000 330,000 330,000 330,000 330,000 330,000 Interest 105000 __ 45,065 45,660 46,254 46049 47,443 48,038 ___48,632 49,227 __49,821 _ 49,821 Subtotal: Highway & Trans. 1,504,540 1,423348 857,748 839,2.46 732,746 738,745 744,744 _750,743 756,742 762,741 762,741 Federal Revenue Sharing Fund: Federal Revenue Sharing Grant 195,800 196,000 196 000 196,000 _1961,000 196,000 _196,000 196000 196,000 196,000 __196,000 Subtotal: Fed. Rev. Sharing 195,800 196000 196,000 196000 196000 196,000 196,000 196;,000 196,000 196,000 _ 196,,000 Special Funds, Non-Recurring: Environmental Excise Tax Fund: Environmental Excise Tax _ 80,730 178,723 178,751 178,749 178,723 178,723 178,723 178,723 1783723 _178,723 Subtotal: Environ. Tax Fund 80,730 178,723 178,751 178,749 178723 178,723 178,723 178,723 178,723 1.78_,72.3 Parks and Recreation Fund: Quimby Act Revenue 60,000 410,760 410,760 410,760 410,760 410,760 410,760 410,760 410,760 410,760 - Grant, and Land Sale 1,439,670 240,000 144,750 Subtotal: Parks & Rec. Fund 1,499070 650.760 555,510 4101760 410760 410,760 410,760 410,760 410,760 41.0,760 __ _ _ TOTAL: Annual, Recurring 4,350,100 4,179,396 3,611,379 3,645,005 3,567,849 3,599,298 3,661,396 3,730,947 3,796,978 3,860,986 3,911,079 fOTAI.: Non-Recurring 1,732.,450 ___6111.0P3 _734,261 589,509 5891483 589,483 589083 _589,483 5890P 589083 GRAND FOTAI.: ALL REVENUE $6,082,550 4,768,879 4,345,640 4,234,514 4,157,332 41188,781 4 250,879 4,320,430 4,386,461 4,454,469 3,911,079 REVENUE FORECAST: CURRENT CITY BOUNDARIES INCLUDING INFLATION ASSUMPTIONS Base Year Forecast Years Revenue Categooi 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1.989-90 1.990-91 General Fund Annual Recurring Motor Vehicle In-Lieu Fees $ 954,330 773,952 799,876 886,037 981,151 1,076,428 1,180,5% 1,294,357 1,418,849 1,554,840 1,679,160 Interest 300,000 270,000 243,000 218,700 196,830 171,242 188,366 207,203 2.27 923 2F0,715 275,786 Sales and Use Tax 281,310 410,150 516,379 639,794 719,768 802,541 894, 833 1,005,792 1,121,459 1,250,426 1,394,22.6 Property Tax 270,540 292,183 318,479 348,735 383,608 425,805 472,643 524,634 582,344 646,402 717,505 Franchise Taxes 186,110 206,387 228,644 253,427 280,440 307,777 337,428 369,875 405,622 444,360 480,060 Building and Safety Fees 142,560 155,000 168,950 184,156 200,730 216,788 234,131 252,861 273,090 294,937 318,532 Property Transfer Tax 123,950 139,571 157,334 177,514 200,203 22.5,888 2.54,678 287,091 323,256 364,140 404,040 Cigarette Tax 113,350 109,496 105,773 102,177 98,703 95,347 92,105 88,974 85,948 83,02.6 80,203 Business License Tax 78,650 88,481 99,541 111,984 12.5,982 140,470 156,624 174,636 194,719 217,11? 242,079 Fines, Forfeitures & Penalties 92,900 91,000 91,000 91,000 91,000 91,000 91,000 91,000 91,000 91,000 91,000 Financial Aid to Local Agencies - 82,406 91,307 101,218 112,176 123,032 134,971 148,031 162,2.49 177,660 191,940 Other, Miscellaneous 106,960 115,605 126,010 137,351 149,712 161,689 174,624 188,594 203,682 219,977 237,575 Subtotal: Recurring Gen. Fund 2,649,760 2,734,231 2,946293 1_252 093 3,540,303 3,838,007 9211,999 4,633,048 5,090 0841 5594,595 6,112,10.6_ Subtotal: Non-recurring Gen. 152,050 n Special Funds, Recurring: L^' Highway and Transportation Fund: Highway Users Taxes 494,260 339,683 345,088 350,492 355,897 361,302 366,706 372,111 377,515 382,920 302,920 County Aid & Other Grants 905,280 1,125,774 502,730 476,025 437,011 466,372 498,082 532,328 569,315 609,260 652,401 Interest 105,000 45065 45,660 46,254 46,849 47,443 48,038 48,..92 49,227 49,821 _ 49,821 Subtotal: Highway & Trans. 1,504,540 1,510,522 893,478 872,771 839_,_757 875,117 912,82.6 953,971 996,057 1,042,001 1,085,142_ Federal Revenue Sharing Fund: Federal Revenue Sharing Grant 195,800 _196,000 196,000 196,000 196,000 196,000 196,000 196,900 196_000 196,000 _ 196,000 Subtotal: Fed. Rev. Sharing 195,800 196,000 196,000 196,000 196,000 196,000 196,000 196000 _ 196,000 __196,000 196,000 Sj ec i al Funds,_Non-Recurring: Environmental Excise Tax Fund: Environmental Excise Tax 80730 178,723 194,837 212,398 231,514 250x035 270,038 291,641 314,972 _340,170 Subtotal: Environ. Tax Fund _ 80,730 178,723 194,837 212,398 231.,514 250,035 270,038 291,641 314,972 340070 Parks and Recreation Fund: Quimby Act Revenue 60,000 455,944 506,099 561,767 623,562. 692,154 768,293 857,8(13 946,612 1,050,738 - Grants and Land Sale 1/139,670 2.40,000 _ 144750 Subtotal: Parks & Rec. Fund 1,499,670 695,944 650,649 561,767 62.3,562 692 054 768 293 852,803 946,612 1,050,738 TOTAL: Annual, Recurring 4,350,100 4,440,753 4,035,771 4,320,864 4,576,060 4,909,124 5,320,825 5,782,119 6,282,898 6,832,596 7,393,748 10TAL: Non-Recurring 1.,732,450 634,667 845686 774,165 855,076 942,189 1,038,331 1,144,444 1,261,584 1,390,908 GRAND TOTAL: ALL REVENUE $6,082,550 5,075,420 4,881,457 5,095029 5,431.,136 5,851,313 6,359056 6,926,563 7,544,482 8,273,504 7,393,248 i APPENDIX B ' CURRENT CITY BOUNDARIES EXPENDITURE PROJECTIONS B-1 EXPENDITURE PROJECTIONS: CURRENT CITY BOUNDARIES IN CONSTANT (1980) DOLLARS - Base Year Projection Years Expenditure Category 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-9.1_ General Fund Annual, Recurring_ General Government: City Council $ 9,290 9,290 9,290 9,290 9,290 9,290 9,290 9,290 9,290 9,290 9,2.90 City Manager 74,420 74,420 74,420 74,420 74,420 74,420 74,420 74,420 74,420 74,420 74,420 City Attorney 134,400 134,400 134,400 134,400 134,400 134,400 134,400 134,400 134,400 134,400 134,400 Public Works 108,720 110,460 112,227 114,023 115,847 117,700 119,584 121,497 123,441 12.5,416 125,416 Parks and Recreation 244,210 339,014 413,407 413,407 448,407 512,706 557,706 591,906 591,906 637,806 637,806 Environmental Services 151,930 151,930 151,930 151,930 151,930 151,930 151,930 151,930 151,930 151,930 151,930 Camnunity Services 63,290 63,723 64,076 64,430 64,784 65,138 65,492 65,845 66,199 66,553 66,553 Administrative Services 119,470 135,720 119,470 135,720 143,840 160,090 143,840 160,090 143,840 160,090 143,840 Non Departmental 544,760 470,056 518,802 533,130 557,150 579,168 615,363 622 004 641,216 653,075 _ 737,325 Subtotal: General Government 1,450 490 1,489,013 1,598,02.2. 1,630,750 1,700,068 1,804,842 1,872,025 1,931,382 1,936,642 2,012,980 2,080,980 Public Safety: - Sheriff 837,120 847,995 860,584 873,376 886,372 899,575 912,990 926,620 940,468 954,537 954,537 Other 7,150 7,204 7,2.60 7,317 7,374 7,433 7,492 7,552 7,613 7,675 __ 7675 co Subtotal: Public Safety 844,270 855,199 867,844 880,693 893,746 907,008 920,482 934,172 948081 962212 962,2.12 N Regulatory, Inspection & Misc.: - -- ---" Building and Safety 6,530 6,530 6,530 6,530 6,530 6,530 6,530 6,530 6,530 6,530 6,530 Engineering 22,030 22,030 22,030 22,030 22,030 22,030 22,030 22,030 22,030 22,030 22,030 Animal Services - 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 District Attorney 800 800 800 800 800 800 800 800 800 800 800 Health 200 200 200 200 200 , 200 200 200 200 200 200 Subtotal: Regulatory 29,560 32,060 32,060 32,060 32,060 32,060 32,060 32,060 32,060 32,060 32 060 Transfers to Other Funds: - - - Capital improvement/Acq. 500,000 - - - - - Equipment Replacement 12,730 12,730 12,730 12,730 12,730 12,730 12,730 12,730 12,730 12,730 12,730 Highway and Transportation 15,000 - - - - - - - _ - - Subtotal: Transfers 527730 183,776 59,705 75,256 13,229 12,730 12_,730 _ 12,730 _ 12,730 . 12,730 12,730 Encumbered Reserves (Prior Year) 96,360 - _ - - - - - _ - TOTAL: GENERAL FUND $2,948,410 22389,002 2,510,656 2,556,233 L638 2,756,640 2,837,297 2,910,344. 2,92.9 513 32019,982 3 087,982 EXPENDITUJE PROJECTIONS: CURRENT CITY BOUNDARIES IN CONSTANT (1980) DOLLARS Base Year Projection Years Expenditure Category 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 19139-90 .1990191 Highway and Transportation Fund: Engineering $ 15,500 15,500 15,500 15,500 15,500 15,500 15,500 15,500 15,500 15,500 15,500 Maintenance 563,030 1,030,333 1,030,333 1,030,333 1,030,333 842,441 814,353 787,603 787,603 787,603 787,603 Construction Projects 1,485,160 1,557,000 1,078,500 1,172,500 1,552,800 1,552,800 1,552,800 1,552,800 1,552,800 1,552,800 1,552,800 Encumbered Reserves (Prior Yr) 241,740 - - - - - _ - - - - TOTAL: HIGHWAY & TRANS. FUND $$2305 430 2i 602,833 2,124,333 2,218,333 2598,633 2,410,741 2,382,653 2355,903 7355,903 ?.,355,903 2,355,903 Parks and Recreation Fund: Capital Improvements $1,895,630 922,643 805,461 666,909 673,083 679,283 785,483 785,483 785,483 785,483 196,000 Capital Acquisitions 138,000 131,000 124,800 118,600 112,400 106,200 - - -Encumbered Reserve Reserve (Prior Yr) 987,950 - ; ` -__- _ _-_--. ________ TOTAL: PARKS & REC. FUND $3021,580 1,.053,643 930,261 785,509 785,483 785,483 785,483 785,483 785,483 785,183 19x,000 Capital Improvements & Acq. Fund: Improvements $ 200,000 1,747,475 1,747,475 22,550 167,750 583,500 583,500 591,675 591,675 220,400 - co Acquisitions - - - - - - - - - - - r Encumbered Reserves (Prior Yr) 241,420 - - - Lo TOTAL: CAPITAI. IMPROVE. FUND $_ 441,420 1,747,475 1,747 475 _ 22,550 167,750 583 500 583,500 591,675 591,675 __220,.400 =,,-,,,,,. _- Equipment Replacement Fund: Replacements and Reserves $ 2,000 12,730 12,730 12 730 18730 12,730 12,730 12,730 1.2x730 _ 12,730 _12,730 TOTAL: EQUIP. REPLACE. FUND $ 2 000 12,730 12,730 12,730 _ 12,730 _ 12,730 _ 12,730 12,730 12,730 12,730 ---12,730 Revenue Sharing Fund: Transfers to Other Funds $ 200 000 196:000 -196,000 196,000 196 000 196 000 196 ow 196,000 __196,000 _196,000 _ 196,000 TOTAL: REVENUE SHARING FUND $-200,000 196,000 196,000 1961,000 196 000 196,000 __196,000 196,000 _ 196L000 196,000 _-19(,000 Environmental Excise Tax Fund: Transfers to Parks & Rec. Fund $_ 70000 178 723 178,751 178,749 178,723 178,723 -178,723 178,_ 723 -1.78,723 __178,723 ___ - TOTAL: ENVIRONMENTAL FUND $- 70,000 178,723 178,751 _178,149 -178,723 178 723 178 723 178,723 -178,123 178,723 EXPENDITURE PROJECTIONS: CURRENT CITY BOUNDARIES INCLUDING INFLATION ASSUMPTIONS Base Year Projection Years Expenditure Category 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 General Fund Annual, Recurring_ General Government: City Council $ 9,290 10,126 11,037 12,031 13,114 14,163 15,296 16,520 17,841 19,269 20,810 City Manager 74,420 81,118 88,418 96,376 105,050 113,454 122,530 132,333 142,919 154,353 166,701 City Attorney 134,400 146,496 159,681 174,052 189,717 204,894 221,285 238,988 258,107 278,756 301,056 Public Works 108,720 120,244 132,990 147,087 162,678 178,295 195,411 214,171 234,731 257,265 277,846 Parks and Recreation 244,210 369,525 503,050 535,374 632,962 781,625 918,251 1,052,518 1,136,720 1,322,858 1,428,687 Environmental Services 151,930 165,604 180,508 196,754 214,462 231,619 250,148 270,160 291,773 315,114 340,324 Cc*nnrnity Services 63,290 69,376 76,164 83,396 91,498 99.136 107,631 117,030 126,972 137,912 149,112 Administrative Services 119,470 147,935 141,94? 175,761 203,042 244,058 236,828 284,670 276,236 332,039 322,2072 Non Departmental 544,760 512,361 615,502 690,418 786,463 882,946 1,013,176 1,106:039 1,231,418 1,354,528 1,651,610 Subtotal: General Government 1,450,490 12622_,785 1,909,292 2111,249 2,398,986 2,750,190 3,080562 1,432 429 3,716,717 4„172,094 4658,348 Public Safety: Sheriff 837,120 923,198 1,019,991 1,126,948 1,245,138 1,363,291 1,492,675 1,634,362 1,789,521 1,959,436 2,116,193 Other 7,150 7,850 8,615 9,457 10,382 11,294 12,288 13369 14,546 15,828 17,095 Do Subtotal: Public Safety 844,270 931,048 1,028,606 1,136,405 1,255,520 1,374,585 1,504,963 1,647,731 1,804,067 1.975_ 264 2,133,2.88 Regulatory, Inspection & Misc.: • Building and Safety 6,530 7,118 7,758 8,457 9,217 9,954 10,751 11,611 12,540 13,543 14,62.6 Engineering 22,030 24,013 26,174 28,529 31,097 33,585 36,272 39,173 42,307 45,692 49,347 Animal Services - 2,725 2,970 3,238 3,529 3,811 4,116 4,446 4,801 5,185 5,600 District Attorney 800 872 950 1,036 1,129 1,219 1,317 1,422 1,536 1,659 1,792 Health 200 218 238 259 282 305 329 355 384 _ 414 447 Subtotal: Regulatory 29,560 34,946 38,090 41,519 45,254 48,874 52,785 57007 61,568 66,493 _ 71,812 Transfers to Other Funds: Capital Improvement/Acq. 500,000 - - - - - - - - - - Equipment Replacement 12,730 13,876 15,125 16,486 17,969 19,407 20,959 22,636 24,447 26,402 2.8,515 Highway and Transportation 15,000 - - - -_ - - - - - - Subtotal: Transfers 527 730 145,452 15,125 _ 16,486 _17,969 19,407 20,959 22,636 24,447 _ 26,402 _ 28515 Encumbered Reserves (Prior Year) _ 96,360 - __ - _ - _ - - - - - __- TOTAL: GENERAL FUND $2,948,410 2,602,655 2,991,113 3,305,659 3,717,729 4,193,056 4,659,269 5,159,803 5,606,799 6,240,253 6,891,963 EXPENDITURE PROJECTIONS: CURRENT CITY BOUNDARIES INCLUDING INFLATION ASSUMPTIONS - Base Year Projection Years Expenditure Category 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 Highway and Transportation Fund: Engineering $ 15,500 16,895 18,416 20,073 21,880 23,630 25,521 2.7,563 29,768 32,149 34,721 Maintenance 563,030 1,117,996 1,218,615 1,328,291 1,447,837 1,279,414 1,336,416 1,397,304 1,513,051 1,629,815 1,760,201. Construction Projects 1,485,160 1,697,130 1,281,366 1,518,422 2,191,904 2,367,250 2,556,637 2,761,168 2,982,061 3,220,626 3,478,276 Encumbered Reserves (Prior Yr) 241,740 - - - - - - - - - - TOTAL: HIGHWAY & TRANS. FUND $2305,430 2,832,021 2,518,397 2 866,786 3,661,671 3,670,300 3918,574 4,186,035 4,524,880 4,882,590 5_,273,198 Parks arid Recreation Fund: Capital Improvements $1,895,630 939,667 916,886 851,565 938,676 1,031,989 1,234,331 1,340,444 1,457,584 1,586,908 196,000 Capital Acquisitions 138,000 131,000 124,800 118,600 112,400 106,200 - - - - - Encumbered Reserve (Prior Yr) 987,950 - - - - - - - - - - TOTAL: PARKS & REC. FUND $3,021,580 1,070,667 1,041 686 970,165 1 051,076 11138,189 1,234,331 1,340,444 1,457,584 1,586,908 __196,000 Capital Improvements & Acq. Fund: W Improvements $ 200,000 1,904,748 2,076,175 29,138 236,793 897,787 978,588 1,081,605 1,178,949 478,685 - r Acquisitions - - - - - - - - - - - (Ti Encumbered Reserves (Prior Yr) 241,420 - - - - - - - - - - TOTAL: CAPITAL IMPROVE. FUND $ 441 420 1,904,748 2,076,175 29,138 236,793 897,787 978_,_5R8 1,081,605 1,178,949 _ 478,685 Equipment Replacement Fund: Replacements and Reserves $ 2,000 13 876 15,125 16,486 17,969 19,407 20,959 22,636 _ 24,447 __ 26002 __28_015 TOTAL: EQUIP. REPLACE. FUND $____ 2,000 13,876 15,125 16,486 17,969 19,407 20,959 22_,636 24,447 26,402 2.8,515 Revenue Sharing Fund: Transfers to Other Funds $_200 000 196,000 196,000 196,000 196,000 196,000 196000 _ 196,000 196,000 ___196,9_00 _196,,000 TOTAL: REVENUE SHARING FUND $ 200,000 196,000 196,000 196000 196L000 196,000 196,000 _ 196,000 _196,000 . 196,000 196,.000 Environmental Excise Tax Fund: Transfers to Parks & Rec. Fund $ 70 000 178 723 1.94,837 212,398 231,514 250,035 __2.70,0.38 291,641 _314072 __340,.70 _____7___ TOIAL: ENVIRONMENTAL FUND $ _ _70,000 178,723 194,837 212,398 - 231,514 2.50,035 _270,038 _ _291,641 314,972 _340,170 __ - _ APPENDIX C EASTVIEW AREA ANNEXATION REVENUE FORECAST C-1 REVENUE FORECAST: EASTVIEW AREA ANNEXATION IN CONSTANT (1980) DOLLARS Base Year Forecast Years Revenue.Categoo 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1981-881988-89 1989-90 1290-91 General Fund-AnnualRRecurring: Motor Vehicle In-Lieu Fees $258,771 258,771 258,771 258,771 2.58,771 2.58,771 2.58,771 258,771 258,771 2.58,771 138,090 interest 32,568 33,013 33,477 33,961 34,464 34,987 35,532 36,098 36,686 37,298 31,916 Sales and Us? Tax 274,024 283,615 293,541 303,815 314,449 325,455 336,845 348,635 360,837 373,467 386,538 Property Tax - - - - - - - - - - - Franchise Taxes 63,755 63,755 63,755 63,755 63,755 63,755 63,755 63,755 63,755 63,755 34,022 Building and Safety Fees 26,088 26,088 26,088 26,088 26,088 26,088 26,088 26,088 26,088 26,088 26,088 Property Transfer Tax 222,615 22,615 22,615 22,615 22,615 22,615 22,615 22,615 22,615 22,615 22,615 Cigarette Tax 33,223 32,093 31,002 29,948 28,930 27,946 26,996 26,078 25,19? 24,335 23,508 Business License Tax 76,291 78,961 81,724 84,585 87,545 90,609 93,781 97,063 100,460 103,976 107,615 Fines, Forfeitures & Penalties 14,528 14,528 14,528 14,528 14,528 14,528 14,528 14,528 14,528 14,528 14,528 Financial Aid to Local Agencies 25,502 25,502 25,502 25,502 25,502 25,502 25,502 75,502 25,502 25,502 25,502 Other, Miscellaneous _19,409 19,109 19,409 19,409 19,409 19,409 19,409 19,409 _1,409 -_19,409 19,409 Subtotal: Recurring Gen Fund 846,774 858,150 870,412 882,977 896,056 909,665 923,822 938,542 953,843 969,744 829,831 Special Funds, Recurrinmc: Highway & Transportation Fund: N) Highway Users Taxes 99,501 110,758 110,758 110,758 110,758 110,758 110,758 110,758 110,758 110,758 59,105 County Aid 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 Interest 11,805 13 043 13,043 13,043 13,043 - 13,043 13,043 13,043 13,043 13,043 736? Subtotal: Highway & Trans. 119,125 131,620 131,620 131,620 131,620 131,620 131 620 131,620 - 131,620 131,67.0 74,286 Federal Revenue Sharing Fund: Federal Revenue Sharing Grant - -_ - _ - _ - - - - _ Subtotal: Fed. Rev. Sharing _ 7 - _ --_--_ - _ - - - -- Special .Funds-Non-Recurring: Environmental Excise Tax Fund: Environmental Excise Tax - - - - - - - - _ - _ Subtotal: Environ. Tax Fund ,-- - - - --__- -__ _-- -----_ __ ---_ --- Parks and Recreation Fund: - - - ----- -------- -- - Quimby Act Revenue - - - - _ _ - - _ - Grants -- -- - - - - _- ---- --- -- --_- Subtotal: Parks & Rec. Fund --- - - - - --- _--_ -- ----_-- - TOTAL: Annual Recurring 965,899 989,970 1,002,032 1,014,597 1,027,676 1,041,285 1,055,442 1,070,162 1,085,463 1,101,364 904,117 IOTAI.: Non-Recurring - - - - - - - - _ -GRAND TOTAL:TOTAL: AL..L REVENUE $965,899 989,970 1,002,032 1,014,597 1,027,676 1,041,285 1,055,442 1,070,162 1L085,463 1,101,364 904,.117 REVENUE FORECAST: EASTVIEW AREA ANNEXATION INCLUDING INFLATION ASSUMPTIONS Base Year Forecast Years Revenue Category 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 19.99-90 1990-91 General Fund Annual, Recurring_ Motor Vehicle In-Lieu Fees $258,771 282,023 307,400 335,027 365,154 394,407 425,909 460,037 496,790 536,543 309,201 Interest 32,568 35,787 39,367 43,349 47,771 52,294 57,280 62,789 68,867 75,565 71,115 Sales and Use Tax 274,024 308,277 346,812 390,163 438,933 489,411 545,693 608,448 678,419 756,437 843,428 s s s - s , Property Tax - - - - - Franchise Taxes 63,755 69,506 75,756 82,632 90,007 97,258 105,008 113,384 122,510 132,261 142,886 Building and Safety Fees 26,088 28,436 30,995 33,785 36,825 39,771 42,953 46,389 50,100 54,108 58,437 Property Transfer Tax 2.2,615 25,083 27,818 30,887 34,289 38,091 42,294 46,964 52,101 57,838 64,175 Cigarette Tax 33,22.3 32,093 31,002 29,948 28,930 27,946 26,996 26,078 25,192 24,335 23,508 Business License Tax 76,291 85,827 96,556 108,625 12.2,203 137,479 154,664 173,997 195,746 220,215 247,741 Fines, Forfeitures and Penalties 14,528 14,528 14,528 14,52.8 14,528 14,528 14,528 14,528 14,528 14,528 14,528 Financial Aid to Local Agencies 25,502 27,752 30,252 33,003 36,003 38,878 42,003 45,379 49,004 52,879 30,486 Other, Miscellaneous 19,409 21,155 23,060 - 25,135 27,397 2.9,589 31,956 34,513 37,274 40,256 43,476 Subtotal: Recurring Gen. Fund 846 774 930,467 1,023,546 1,127,082 1,242,040 1,359,652 1,489,284 1 632,506 1 790 531 1„964_,695 1 84E5_981 Special Funds„ilecurring: c-) Highway and Transportation Fund: w Highway Users Taxes 99,501 110,758 110,758 110,758 110,758 110,758 110,758 110,758 110,758 110,758 59,105 County Aid 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 7,819 Interest 11,805 13,043 13,043 13,043 13,043 13,043 13,043 1 6043 13,043 - 13,043 7,362 Subtotal: Highway & Trans. 119,12.5 131,620 131,620 131,620 131,62.0 131,620 131,620 -131,620 1_31,62.0 -131,620 74286_ Federal Revenue Sharing Fund: Federal Revenue Sharing Grant - - - - - - _ - - - - Subtotal: Fed. Rev. Sharing - --_ - - Special_FunrJs,_ Non_Recurring: - -- ---_-- ------- ------_--- Environmental Excise Tax Fund: Environmental Excise Tax - -_- - _-__- _ - - - - - - Subtotal: Environ. Tax Fund - - - - - - -- ---- - -- -- - - - - Parks and Recreation Fund: ---- - - - -- - - -- - ---- --------- Quimby Act Revenue - _ - - - - _ --- - - - --- - - - - Grants - - - - _- - -- --- Subtotal: Parks & Rec. Fund - - _ -._.-..- ----.-_-.-- TOTAL: Annual Recurring 965,899 1,062,087 1,155,166 1,258,702 1,373,660 1,491,272 1,620,904 1,764,126 1,922,151 2,096,315 1,923,267 TOTAL: Non-Recurring - - _ - - - - - _ GRAND TOTAL: Al.t. REVENUE 1;965,899 1,062,087 1,155 l66 1,2.58,702 1,373,660 1,191,272 1,620,904 1,764,126 1,_922 151 2.,096,315 1,923,267 APPENDIX D EASTVIEW AREA ANNEXATION EXPENDITURE PROJECTION D-1 EXPENDITURE PROJECTIONS: EASTVIEW AREA ANNEXATION IN CONSTANT (1980) DOLLARS Base Year Projection Years . E p enditure Catelgmx 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989190 1990-91 General fund Annual,_Recurring: General Government: City Council $ - . - - - - - - - - - - City Manager - - - - - - - - - - - City Attorney 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 Public Works 10,400 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,01)1) Parks and Recreation 15,754 13,394 13,394 13,394 13,394 13,394 13,394 13,394 13,394 13,394 13,394 Environment Services 26,180 40,180 26,180 26,180 26,180 26,180 26,180 26,180 26,180 76,180 26,180 Community Services 3,797 3,797 3,797 3,797 3,797 3,797 3,797 3,797 3,797 3,791 3,797 Administrative Services 27,800 30,000 22,800 30,000 22,800 30,000 22,800 30,000 22,800 30,000 72,000 Non Departmental 70,819 70,819 70L819 70,819 70,819 70L819 70,819 70,819 70,819 _.70,819 _70,819 Subtotal: General Government 159- 750 176 190 15 90 162 190 154,990 162„_190 154 990 162,190 154,990 167,1!10 154,990 Public Safety: --- - - - -- - --- - - -- -- Sher•iff 377,115 377,115 377,115 377,115 377,115 377,115 377,115 377,115 377,115 377,115 377,115 Other _2L500 2,500 __ 2,500 -2,500 2,500 _2500 __2 900 __2,500 -2,500 _2,500 _2,500 Subtotal: Public Safety 379615 379,615 379,615 379,615 379,615 379615 379,615 379,615 379,615 37.9,615 379,615 1 Regulatory, Inspection R Misc.: ea Building and Safety 1,175 1,175 1,175 1,175 1,175 1,175 1,175 1,175 1,175 1,175 1.,115 Engineering 3,965 3,965 3,965 3,965 3,965 3,965 3,965 3,965 3,965 3,965 3,965 Animal Services 450 450 450 450 450 450 450 450 450 450 450 District Attorney 144 144 144 144 144 144 144 144 144 144 144 Health 36 36 36 36 36 36 361 _ _ 36 36 _____.36 36 Subtotal: Regulatory _ 5,770 _ 5,770 51770 _5,770 5,770 _5,770 5 770 __5,770 _5,770 5,1/0 5,770 Transfers to Other Funds: Equipment. Replacement 2,291 2,2.91 2,291 2,291 2,291 2,291 2,291 7,291 2,291 2,791 7,791 Highway and Transportation - 16,840 16010 16,840 _16,840 16,840 _-16840 16,840 16,840 16,840 _16,840 Subtotal: Transfers - 2,291 19,131 19,131 19,131 19,131 19,131 _ 19131 _19,131 _1.9,131 _19,111 1.9,131_ Encumbered Reserves (Prior Yr) • TOTAL: GENERAL- 611110 $547,426 580,706 559,506 566,706 559,506 5661706 559506 566,706 559,506 566,106 559,506 Less: Transfers 2.,291 19,131 19,131 19,131 19,131 19,131 19,131 19,131 19,131 19,131 19,131 NET GENERAL FUND $545,135 561,575 540,375 547,575 540,375 547,575 540,375 54:7_,575 540075 54715.75 540,315 EXPENDITURE PROJECTIONS: EASTVIEW AREA ANNEXATION IN CONSTANT (1980) DOLLARS Base Year Projection Years --------_______.______--_._.__ Exfenditure Categor,Y 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 199091 Highway and Transportation Fund: _"-- ---- ----- ----_..__ _-.._ _ Engineering $ 1,600 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 Maintenance 84,860 123,160 123,160 123,160 123,160 123,160 123,160 123,160 12.3,160 123,160 173,160 Maint./Construction Projects 26,400 24,000 24,000 24,000 24,000 24,000 24,000 24,000 24,000 74,000 24,000 Encumbered Reserves (Prior Yr) -_, _ - _ - _ _ - TOTAL: HIGHWAY & TRANS. FUND $112,860 148,460 1481160 148,460 148,460 148,460 148,460 148,60 148,460 148,460 148,460 Parks and Recreation Fund: Capital Improvements $ _ _ _ _ _ Capital Acquisitions - - - - - - - - - - - Encumbered Reserves (Prior Yr) __- __ - - _ _ _ _ _ _ TOTAL: PARKS & REC. FUND $ - - - - - - - - - - - - Capital Improvements & Acq. Fund: ---- --- - --------- ------- Improvements $ _ _ _ _ _ _ _ _ Acquisitions - - - _- - Iv Encumbered Reserves (Prior Yr) - - - - - - - - - co TOTAL: CAPITAL IMP. FUND $ - - - - - _ - - - -------- -------- Equipment Replacement Fund: ,---- - Replacements and Reserves $- 2 291 2,291 2291 2,291 2,291 2 291 ___?,291 2 29 2,291 ___?,,291 2,291 TOTAL: EQUIP. REPLACE. FUND $__ 7,291 =2,291 2,291 2,291 2,291 2,291 2,291 2,291 2,791 7. 791 -2791. Revenue Sharing Fund: Transfers to Other Funds $ - - _ -_ - _ - - _ - - TOTAL: REVENUE SNARING FUND $ - - - _ - - _ - - - - Environmental Excise Tax Fund: Transfers to Parks & Rec. Fund $ - - - _ _ - - - - TOTAL: ENVIRONMENTAL FUND $ - - - _ _ - _ - - - GRAND TOTAL: ALL FUNDS $660,286 712,326 691 126 698,326 691,126 698,32.6 691,126 698,326 691 126 6198,376, 691,126 EXPENDITURE PROJECTIONS: EASTVIEW AREA ANNEXATION INCLUDING INFLATION ASSUMPTIONS Base Year Projection Years Expenditure Category 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 General Fund Annua lRecurring General Government City Council $ - - - - - - - - - - - City Manager - - _ - - - - _ - _ - City Attorney 10,000 10,900 11,881 12,950 14,116 15,245 16,465 17,782 19,205 20,741 22,400 Public Works 10,400 8,000 8,720 9,505 10,360 11,293 12,196 13,172 14,226 15,364 16,593 Parks and Recreation 15,754 14,599 15,913 17,346 18,907 20,420 22,503 23,817 25,723 27,181 30,003 Environmental Services 26,180 40,180 28,536 31,104 33,904 36,616 39,546 42,709 46,126 49,816 51,801 Cnnnunity Services 3,797 3,823 3,845 3,866 3,887 3,908 3,930 3,951 . 3,972 3,993 3,993 Administrative Services 22,800 30,000 24,852 35,643 29,527 41,959 34,440 48,941 40,171 57.084 46,855 Non Departmental 70,819 77,192 84 140 _91,712 99,967 107,964 116 601 125_929 136,003 146,884 158,634 Subtotal: General Government 159750 184,694 177,887 202126 210,668 237405 245,681 276 301 285,426 321,663 332,279 Public Safety: - - - - _ _-- Sheriff 377,115 411,055 448,051 488,375 532,329 574,915 620,909 670,581 724,228 787,166 844,739 Other 22,500 2,725 _ 2,970 3 23 3,529 3,811 4,116 4 446 4 801 5,185 _ 5,600 Subtotal: Public Safety 379,615 413,780 451,021 491,613 535L858 578,126 625,_02_5 675,027 _ 729 029 787,351 _8.50,339 c:/ Regulatory, Inspection & Misc.: .A Building and Safety 1,175 1,280 1,396 1,522 1,659 1,792 1,935 ?,090 2,257 2,438 2,633 Engineering 3,965 4,322 4,711 5,135 5,597 6,045 6,523 7,051 7,615 8,224 8,882 Animal Services 450 491 535 583 635 686 741 800 864 933 1,008 District. Attorney 144 157 171 186 2.03 219 237 256 276 298 377 health 36 39 43 47 51 55 59 64 69 _ 75 81 Subtotal: Regulatory 5,770 6,289 6856 7,473 8,145 8,797 -9 495 _10,261 __ 11,081 _ 11,968 __-_12,976 Transfers to Other Funds: Equipment Replacement 2,291 2,497 2,722 2,967 3,234 3,493 3,772 4,074 4,400 4,757 5,137 highway and Transportation - _ 16,840 30,201 _44,765 60,640 75,917 92,520 110,451 _129,816 _ 150,731 11.3,319 Subtotal: Transfers _1,291 19,337 37. 923 47732 63874 79,410 96,292_ 11_4,525 _ 134 216 155,48.3 178,451 Encmnbered Reserves (Prior Yr) - TOTAL: GENERAL FUND $547,426 624,100 668,687 748,944 818,545 901,338 976,193 1,076,114 1,159,752 1,776,165 1,373,995 Less: Transfers 2,291 19,337 -32,923 47,732 63,874 79,410 96,7922 114,525 134,216 155,183 178,451 NEI GENERAL FUND $545035 604,763 635,764 701,217. 754,671 824,928 880,201 961,589 1,025,536 1,170,982 1195544 EXPENDITURE PROJECTIONS: EASTVIEW AREA ANNEXATION INCLUDING INFLATION ASSUMPTIONS Base Year - Projection Years __________________________ Expenditure Cate9 1 1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 Highway and Transportation Fund: Engineering $ 1,600 1,300 1,417 1,545 1,684 1,819 1,964 2,121 2,291 2,474 2,672 Maintenance 84,860 123,160 134,244 146,326 159,495 171,840 185,249 199,700 215,272 232,055 250,142 Maint./Construction Projects 26,400 24,000 26,160 28,514 31,081 33,878 36,927 40,250 43,873 47,822 52,125 Encinnbered Reserves (Prior Yr) - - - - - _ _ _ _ - _ TOTAL: IIIlIIWAY & TRANS. FUND $112,860 148,460 161 821 176,385 192,260 207,537 224,140 242_,071 2.61,436 _282,351 _304 9__39 Parks and Recreation Fund: Capital Improvements $ - - - - _ _ - - - - • Capital Acquisitions - - - - - - - - - - - Encumbered Reserves (Prior Yr) - - - - - - - - - - - TOTAL: PARKS & REC. FUND E - - - - - - - - - _ - Capital Improvements & Acq. Fund: Improvements $ - - - - _ _ _ _ _ _ _ Acquisitions - - - - - - - - - - o Encumbered Reserves (Prior Yr) - - - - - - - - - _ - tn -- - - -- - --_____ TOTAL: CAPITAL IMP. FIIND $ - - - •. - - - - - - - - Equipment Replacement Fund: Replacements and Reserves $ 2,291 2L497 2,722 2,967 3,234 3,493 3.772 4:074 4,400 __ 4,752 _ 5L132_ TOTAL: EQUIP. REPLACE FUND 1 2,291 ?_,497 ?.,722 2,967 3,234 3,493 3,772 4,074 4,400 4,752 5,132 Revenue Sharing Fund: Transfers to Other Funds $ - - - - - - - - - _ - TOTAL: REVENUE SHARING FUND E - - - - - - - - - - Environmental Excise Tax Fund: Transfers to Parks & Rec. Fund E - - - - - - - - - - - TOTAL: ENVIRONMENTAL FUND $ - - - - - - - - - - _ GRAND TOTAL: ALL FUNDS $660x286 755,720 800,307 880,564 950,165 1,035,958 1,108,113 1,207,734 .11291,372 1,408,085 1,505,615 APPENDIX E FULL-TIME EMPLOYEE PROJECTION E-1 R FULL-TIME EMPLOYEE PROJECTION (Current City Boundaries) Department Base Year Projection Years — -� T980-8T 1981-82 —X902-83 1983-84 1984-85 X985-86 1i -87 1987-88 1988-89 7989-94---T99T-9i City Council 0 0 0 0 0 0 0 0 0 0 0 City Manager 3 3 3 3 3 3 3 3 3 3 3 City Attorney* 0 0 0 0 0 0 0 0 0 0 0 Public Works* 0 0 0 0 0 0 0 0 0 0 0 Parks and Recreation 5 6 6 6 6 6 7 7 7 7 7 Environmental Services 7 7 7 7 7 7 7 7 7 7 7 Community Services 3 3 3 3 3 3 3 3 3 3 3 rn Administrative Services 5 5 5 5 7 7 7 7 7 7 7 1 N Public Safety* 0 0 0 0 0 0 0 0 0 0 0 Regulation & Inspection* 0 0 0 0 0 0 0 0 0 0 0 TOTAL 23 24 24 24 26 26 27 27 27 27 27 * Are contract services