Westminster City Council/Successor Agency to the Westminster Redevelopment Agency
SUBJECT
Title
Continued from the May 8, 2024 Special Meeting/Study Session - Fiscal Year 2024-25 Proposed Budget.
End
publichearing
End
From: Christine Cordon, City Manager
Requested by: Administration
Prepared by: Erin Backs, Finance Director
____________________________________________________________
RECOMMENDED ACTION
Recommendation
Provide direction only. No action.
end
BACKGROUND
The first study session for the proposed 2024-25 fiscal year budget was held on May 8, 2024. At that time, the City Council had questions regarding the requested supplemental positions and the vehicle incentive rebate program. In addition, there have been several changes to the budget previously presented on May 8, 2024.
Supplemental Requests
The City Council requested staff to revise and prioritize the positions requested in the supplemental list. The following list provides additional data for each requested position, includes the fully burdened cost and is in priority order.
General Fund Supplemental Requests Total of $460,012 (Fully burdened in priority order):
1. Management Analyst (New Position) - $119,723, Community Services Administration Program 70000
v This position will provide comprehensive support to the entire department with professional-level research, administrative, operational and analytical duties including review of policies and procedures, draft staff reports, contract management, seek grant opportunities, prepare technical materials and assist with complex event planning processes. Also, this position will analyze data to help the department make informed decisions based on trends, patterns, and performance metrics. This data-driven approach will enhance resource efficiency and improve outcomes for the community. Currently, the department lacks professional-level staff for these tasks, leaving them to be handled by the Director with assistance from the Supervisors and Senior Administrative Assistant.
v This position will oversee department-wide tasks including:
• Review/update policies and procedures
• Marketing and social media management
• Website content
• Recreation Management Platform administration
• Hiring and recruitment of part-time staff
• Community Garden program implementation
• Banner Agreements
• Community Outreach events
• Manage contracts with vendors, monitor compliance
• Monitor grant programs, monitor compliance
v Potential future responsibilities:
• Creating a more structured volunteer program
• Community/program surveys
• Online facility reservations
• Research potential implementation of park shade shelter reservations
• Research potential implementation of tennis and pickleball court reservations
• Seek additional grant/funding opportunities
2. Administrative Assistant (New Position) - $98,010, Engineering Program 50500
v Provide administrative support in day-to-day operations for the Engineering Division. Serves as the primary departmental contact via telephone and at the counter to the public to receive, route, process and follow citizen inquiries, assisting to ensure the department provides complaint resolution and information in a timely manner; relieves Engineering staff from handling routine questions and requests for service and elevating only the unusual or complex issues. Performs technical and clerical functions such as maintaining the department's database programs, spreadsheets, website, and producing correspondence, tracking and processing of utility bills, invoices, utility and traffic signal billing; provides administrative support for meetings as assigned, including scheduling meetings and preparing minutes. Assist with capital project coordination including advertising, bidding, contracting, documentation, meeting notes and document collection. Maintains department records and prepares documentation in response to requests for public records. Purchases and maintains an inventory of supplies and materials for the Public Works Department. Review and issuance of wide load permits.
v This position existed previously by an employee who was determined to be working out of classification and was reclassed to a Management Analyst position. Currently, there is no administrative support in the Engineering Division, and administrative duties have been fulfilled by different members of the department whenever possible, but not consistently.
3. Community Services Coordinator (New Position) - $98,010, Recreation Services Program 71000
v This position will be primarily assigned to city-hosted special events. With the increased demands on staff in producing successful and well-received city-hosted special events, this position will be the lead in those tasks. City events have become increasingly complex and have demanded the support of the entire department, including extensive involvement from the Community Services Director. This role will build relationships with the community and vendors, look for ways for our events to be increasingly self-sufficient by identifying potential revenue streams, staying informed on event trends and best practices.
v When comparing calendar year 2023 (25) to 2024 (32), the Department has produced 28% additional events. Participation and attendance have grown tremendously at these events.
v The 3-day Fall Festival and Tet Parade exemplify the increasingly complex events city staff now manages:
• Tet Parade had 28% increase in entries - significant additional time reviewing and processing applications, assisting with participants, reviewing and translating scripts and coordinating logistics
• Fall Festival went from a single simple event to a 3-day event with carnival rides, food vendors, live entertainment - significantly more complex that any event managed by the Department with substantial additional support needed from other City departments
v Department has processed 20% more Special Event Permits to date this current calendar year vs. 2023 impacting the workload of that coordinator to support city events shifting responsibilities to other staff including the Community Services Supervisor, Senior Administrative Assistant and Director.
Recreation Events - Calendar Year 2023
|
Number |
Event Date |
Event Name |
|
1 |
1/22/2023 |
Tet Parade |
|
2 |
4/1/2023 |
Bunny Hop at Bolsa Chica Park |
|
3 |
4/1/2023 |
Bunny Hop at Sigler Park |
|
4 |
4/8/2023 |
Bunny Hop at Tony Lam Park |
|
5 |
4/8/2023 |
Bunny Hop at Westminster Park |
|
6 |
4/22/2023 |
Earth Day - Civic Center |
|
7 |
4/22/2023 |
Earth Day - Buckingham Park |
|
8 |
4/30/2023 |
Black April |
|
9 |
7/13/2023 |
Movie Night - Puss in Boots: The Last Wish |
|
10 |
7/19/2023 |
Safety Day |
|
11 |
7/20/2023 |
Movie Night - Lightyear |
|
12 |
7/27/2023 |
Movie Night - Minions: The Rise of Guru |
|
13 |
8/3/2023 |
Concert - Funk Station |
|
14 |
8/10/2023 |
Concert - Gold Rush Country |
|
15 |
8/17/2023 |
Concert - Selena Tribute |
|
16 |
8/24/2023 |
Concert - Moonflower |
|
17 |
9/22/2023 |
Fall Festival Weekend (3 days) |
|
18 |
10/27/2023 |
Halloween Spooktacular |
|
19 |
12/4/2023 |
Tree Lighting |
|
20 |
12/9/2023 |
Breakfast with Santa |
|
21 |
12/8/2023 |
Santa on the Go at Sigler Park |
|
22 |
12/9/2023 |
Santa on the Go at Westminster Village Park |
|
23 |
12/16/2023 |
Santa on the Go at Coronet Park |
|
24 |
12/16/2023 |
Santa on the go at Westminster Park |
|
25 |
12/19/2023 |
Ribbon Cutting Ceremony - Liberty Park Playground |
Recreation Events Calendar Year 2024
|
Number |
Event Date |
Event Name |
|
1 |
2/10/2024 |
Tet Parade |
|
2 |
3/23/2024 |
Bunny Hop at Gillespie Park |
|
3 |
3/23/2024 |
Bunny Hop at Liberty Park |
|
4 |
3/25/2024 |
Community Outreach Meeting at Bolsa Chica Park |
|
5 |
3/25/2024 |
Community Outreach Meeting at Westminster Village Park |
|
6 |
3/26/2024 |
Virtual Community Outreach Meetings |
|
7 |
3/29/2024 |
American Vietnam War Veterans Day |
|
8 |
3/30/2024 |
Bunny Hop at Boys and Girls Club |
|
9 |
4/11/2024 |
Ribbon Cutting Ceremony - Sigler Park Playground |
|
10 |
4/20/2024 |
Earth Day Event at Margie L. Rice Park |
|
11 |
4/20/2024 |
Earth Day Event at Coronet Park |
|
12 |
4/30/2024 |
Black April |
|
13 |
5/1/2024 |
Community Outreach Meeting at Russell C. Paris |
|
14 |
5/1/2024 |
Community Outreach Meeting at College Park |
|
15 |
5/1/2024 |
Community Outreach Meeting at Bowling Green Park |
|
16 |
5/2/2024 |
Virtual Community Outreach Meetings |
|
17 |
7/11/2024 |
Movie Night - Trolls |
|
18 |
7/17/2024 |
Safety Day |
|
19 |
7/18/2024 |
Movie Night - Lilo and Stitch |
|
20 |
7/25/2024 |
Movie Night - Teenage Mutant Ninja Turtles |
|
21 |
8/1/2024 |
Concert - Pulp Vixen |
|
22 |
8/8/2024 |
Concert - Redneck Rodeo | National Night Out |
|
23 |
8/15/2024 |
Concert - The C Band |
|
24 |
8/22/2024 |
Concert - The New Originals |
|
25 |
9/26/2024 |
Fall Festival Weekend (3 days + preview night) |
|
26 |
10/25/2024 |
Halloween Spooktacular |
|
27 |
12/2/2024 |
Tree Lighting |
|
28 |
12/6/2024 |
Santa on the Go - location TBD |
|
29 |
12/7/2024 |
Santa on the Go - location TBD |
|
30 |
12/7/2024 |
Breakfast with Santa |
|
31 |
12/14/2024 |
Santa on the Go - location TBD |
|
32 |
12/14/2024 |
Santa on the Go - location TBD |
v Registration for classes & programs has increased at least 10% currently for the year and staff has yet to enter the busy summer season, which has impacted the ability of that part-time coordinator and front desk staff to take on additional duties. The City is offering over 1,100 classes this year -- more than ever. Ideally this position should be actively expanding revenue-generating activities. While supporting events is valuable, it is preferred to avoid continuing to divert these staff members from their core tasks.
v The Front Desk has experienced high turnover, which has stressed existing administrative resources and affected the entire department. The sole Administrative Assistant and other office staff have had to fill in gaps, spend extra time training and covering shifts, thus shifting some routine event planning tasks to department leadership. Additionally, demand for service has continued to increase:
• Class offerings increase - 50%+
• Enrollment increase - 10%
• Facility rentals increase - 25%
• Reserved field hours increase - 25%
4. Equipment Mechanic (Reclass of Current Mechanic Position) - $7,868, Equipment Replacement Program 58000
v The current employee (Mechanic) is working out of classification, and is responsible for the repair and maintenance of specialized City equipment and vehicles such as loaders, backhoes, street sweeper, asphalt truck, dump trucks, boom truck, ALTEC truck, WOW buses, police department motorcycles, specialized water vehicles, and fuel dispensers.
v In-house staff vs. outside vendors: Much lower cost, reliability, and less turn-around time for the equipment or vehicle to be available to the maintenance staff.
5. Webmaster/Communications Specialist (New Position - Final Job Title to Be Determined) - $136,401, City Manager Program 11500
v This position was requested as part of the strategic plan goal setting session on April 10, 2024. Objective 4 of the “Improving Customer Service Delivery to the Community” Goal is to present hiring a webmaster to the City Council for approval in the FY 2024-25 Budget.
Water Fund Supplemental Requests total of $248,850 (Fully Burdened)
1. Water Technician I (3 New Positions) - $82,950 each = $248,850 total, Water Production and Supply Program 56500
v Responsible for replacing/repairing water meters for multi-year exchange project, exercising 3,450 water valves within 12 months, large-scale flushing of water mains in all areas to improve water quality and public health, and complying with State and Federal mandated programs such as PFAS and Lead & Copper Rule Revisions. Water meter exchange program takes place every 10-15 years. Using a contractor for the installation labor only will cost approximately $7 million for approximately 20,000 meters versus in-house employees will cost approximately $2 million total for the 5-year replacement project. In-house employees are also sufficient, reliable, and cost effective.
The requested supplemental positions are not included in the budget projections. If directed by the City Council, the positions will be added to the budget that will be brought back for adoption on June 26, 2024.
2024-25 Budget Changes since the May 8, 2024 Study Session
The following are amendments to the proposed budget since the May 8 Study Session:
• Sales tax revenue decreased by $542 thousand for closed businesses.
• Transaction Use Tax decreased by $381 thousand for closed businesses.
• Increased parking fee revenue $50 thousand for increased meter charges approved May 22, 2024.
• Approved increase for WAGS included $84 thousand increase to accounts Animal Control Contractual 32000-43090.
• Liability charges reduced $1 million - will take longer to bring reserve balance to required minimum of $500 thousand, legal fees and insurance.
• The liability program expenditure budget was reduced $412 thousand.
• OCFA final contract cost $40 thousand reduction. Estimated increase of 4.5% actual increase of 4.1%.
• Axon contract added to future year projections $422k per year fiscal years 2025-2034.
• Additional Grant from the State of California SB1383 Organic Waste Recycling Program in the amount of $242,417 added to the CIP list project 20002-002502.
• $80,000 was added to the sport court resurfacing at College, Bowling Green, Liberty, Westminster and Westminster Village and Tony Lam Park project 76502-762500 funded from Park Dedication Fund 200. A revised CIP list is attached to this staff report (Attachment 2).
The following table shows the revised FY 2024-25 general fund budget projection for revenue, expenditures and reserve balances. The changes listed above are included in the following numbers. The use of general fund reserves is $1.5 million for FY 2024-25. These numbers do not include any of the requested supplemental positions. The Revised General Fund Summary is attached to this staff report (Attachment 1).
|
General Fund |
2023-24 Estimate |
2024-25 Proposed |
2025-26 Projected |
2026-27 Projected |
2027-28 Projected |
2028-29 Projected |
2029-30 Projected |
|
Revenue |
77,261,918 |
86,583,422 |
88,807,457 |
91,349,850 |
93,978,134 |
96,695,510 |
99,505,311 |
|
Expenditures |
80,734,754 |
88,046,760 |
91,219,869 |
94,609,084 |
97,754,925 |
101,991,642 |
105,241,567 |
|
(Use) Reserves |
(3,472,836) |
(1,463,338) |
(2,412,412) |
(3,259,233) |
(3,776,791) |
(5,296,132) |
(5,736,256) |
|
Reserve Balance |
34,470,433 |
33,007,095 |
30,594,683 |
27,335,449 |
23,558,659 |
18,262,527 |
12,526,271 |
Potential future revenue sources are not included in the above multi-year projections, but can include:
• Changes to mixed-use areas
• Westminster Mall development
• Billboards
• Changes to zoning standards to attract developers
• Bolsa Row development and high-density apartments
As new revenue sources are identified and implemented, they will be added to the projection and the use of reserves will diminish.
Vehicle Incentive Program
• Term of the new program - 04/01/23 through 03/31/28 with option to extend an additional five years.
• Program budget $600,000 per year for a total of $3,000,000 over the first five years of the program for rebate and $10,000 for City marketing and administration.
• All purchases and leases of new cars or trucks are eligible.
• All purchases of pre-owned cars or trucks with a final sales price of at least $25,000 (after all manufacturer rebates and dealer incentives) are eligible.
• Total spent cumulative since 4/1/23 - $218,000 (new program).
• Total spent since inception $1,854,000 (both programs).
• Total spent in FY 2023-24 - $166,500
o Orange Coast Infinity $1,000 - 2 rebates
o Lexus of Westminster $42,000 - 84 rebates
o Honda World Westminster $85,000 - 170 rebates
o Elmore Toyota $17,000 - 34 rebates
o Beach Cities Toyota $21,500 - 43 rebates
• Number of rebates by fiscal year (includes prior rebate program)
o 2016-17 - 91 rebates
o 2017-18 - 765 rebates
o 2018-19 - 715 rebates
o 2019-20 - 697 rebates
o 2020-21 - 574 rebates
o 2021-22 - 502 rebates
o 2022-23 - 103 rebates
o 2023-24 - 333 rebates
FISCAL IMPACT
Proposed General Fund Revenues total $86.6 million and expenditures total $88 million. The proposed General Fund budget uses $1.5 million in reserves and leaves an ending reserve balance of $33 million.
LEGAL REVIEW
The City Attorney’s Office has reviewed as to form.
CONCLUSION
This proposed budget document is the collaboration with all departments and represents the proposed spending plan for all City funds and programs for the next fiscal year. Staff is looking for direction from the City Council on the FY 2024-25 proposed budget and supplemental budget proposals. The general fund budget shows a use of reserve funds of $1.5 million. The City continues to work diligently to find ways to increase revenues to strengthen the future financial health for Westminster. However, new revenue sources can take years to implement and will require future budgets to continue to use reserves to remain balanced. There are no short-term substantial revenue fixes to cover the negative spending in the general fund until long- term fixes can be implemented.
The budget document will be brought back to the City Council for final adoption at the June 26, 2024 meeting.
ATTACHMENTS
1. Revised General Fund Summary FY 2024-25
2. Revised Capital Project Requests FY 2024-25
3. May 8, 2024 Study Session Staff Report FY 2024- 25 Proposed Budget (excluding attachments)
4. Budget Presentation May 8, 2024
REVIEWED BY
Erin Backs, Finance Director
Christian Bettenhausen, City Attorney
Christine Cordon, City Manager