TIC 2018-08-27 Item 2B - Budget - Proposed 2019-2020 Biennial Budget: Public Works / Streets / Equipment Rental

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Allan Ekberg, Mayor Public Works Department - Henry Hosh, Director INFORMATIONAL MEMORANDUM TO: Transportation and Infrastructure Committee FROM: Henry Hash, Public Works Director r/�m BY: Gail Labanara, Public Works Analyst CC: Mayor Ekberg DATE: August 24, 2018 SUBJECT: Proposed 2019-2020 Biennial Budget Public Works (000.13) and Equipment Rental (Fleet 501) ISSUE Transportation and Infrastructure Committee to review Proposed 2019-2020 Biennial Budget and Capital Improvement Programs for Public Works (000.13) and Equipment Rental (Fleet 501). BACKGROUND The City is committed to developing and passing a fiscally -sound, balanced budget. Two challenges the City is encountering is 1) sales tax revenue growth of 3% projected for 2018 has not been realized to date, and 2) sales tax mitigation payments will end in late 2019. As a result, the City is seeking a balanced budget with expenditure reductions and possible new revenue opportunities. DISCUSSION & FISCAL IMPACT The proposed budget for the Public Works department includes a 3% reduction in 2019 for $243,000 and $239,975 in 2020. The budget also includes COLA increases along with pension and healthcare increases as well as proposed utility increases. Public Works — 000.13 General Fund • Engineering: Changed position to Deputy Public Work Director/City Engineer. Reduced professional services by $28,400 for the 3% reduction. • Development Services: The Water/Sewer Senior Program Manager is now the Development Manager and funded with 20% development, 40% water, and 40% sewer. • Facility Maintenance: Reduced custodial supplies by $15,000 and repairs and maintenance by $85,000 for the 3% reduction. • Streets: Reduced Transportation (roadway) repairs by $5,000 and traffic control devices by $91,600 for the 3% reduction. Equipment Rental — Fleet 501 Fund • Fleet's operations and maintenance expenditures has a 4.86% increase in 2019 and a decrease of 14.79% in 2020. • 9 new Police vehicles and 4 new Fire vehicles (Fire part of Public Safety Plan). • Analysis of funding the 501 Fund will continue to be on the work plan. RECOMMENDATION Transportation and Infrastructure Committee approval to forward the Public Works and Equipment Rental of the 2019-2020 Biennial Budget to the Committee of the Whole. Attachments: Proposed Budget for Public Works and Equipment Rental W:\Shared Copy Only\Gail\Budget 2019-2020\Info Memo TC Review 2019-2020 PW & Fleet 082418 docx 1