Town of Apple Valley FISCAL YEAR 2013 -2014

Town of Apple Valley FISCAL YEAR 2013 -2014 PROPOSED BUDGET Budget Study Session May 30, 2013 1

BUDGET STUDY SESSION n Study Session Agenda: – Brief Review of Document Changes – Overview of Proposed FY 13 -14 Budget including Department/Program Highlights – Provide Information on Timeline for Adoption of Budget – Questions/comments from Town Council 2

FY 11 -12 CHANGES IN FORMAT n Key changes during FY 11 -12: - Dept. Org. Chart - Summary descriptions – Dept and Major Service Programs - Current Year Highlights - Goals and Objectives for FY 11 -12 (Progress updated for FY 13 -14) - Performance Measures and Workload Indicators (Statistical information updated for FY 13 -14)

FY 12 -13 CHANGES IN FORMAT n Key changes last year: - Budget Overview Section – 6 new documents - Financial Summaries – 5 new documents - Fund Summaries – All funds w/ budgetary activity included w/ fund descriptions - Capital Imp. Program Project Worksheets - Supplemental Information – 4 new documents

FY 13 -14 CHANGES IN FORMAT n n n Goal: Increase transparency and understandability of budget document Continued implementation of “Best Practices Approach” (Multi-year process) Key changes this year: - Budget Summary Document Financial Summaries – 5 new documents Fund Summaries – 3 new documents Supplemental Information – 1 new document

FY 13 -14 BUDGET PROCESS January February Finance Council provides input to staff on Council’s priorities for FY 13 -14 Budget December Analyze & Project Revenue Estimates BUDGET KICK-OFF January/February Departments Submit Budget Requests to Finance March Town Manager holds Budget Hearings with Departments May Town Manager Submits Proposed Budget To Town Council April Proposed Capital Improvement Program Finalized June Council/Town Manager Conduct Budget Study Session(s) & Employee Orientation Meeting February/March Finance analyzes Budget Requests/Finalize Revenue Projections/ Mid-Year Budget Review April Finance Staff Prepares Proposed Budget June 11 th or 25 th Town Council Holds Public Hearing And Adopts Budget

FY 13 -14 Proposed Operating and Capital Improvement Budget n Represents Management’s Recommended Budget to; – Address Town Council’s priorities within – Existing Financial Constraints to – Fulfill the Service Requirements of the Community.

Challenges Faced in Developing FY 13 -14 Proposed Budget n Gap between “expectations” and “financial reality” has gradually widened over past several years. – New programs and services added annually over last ten years – No new revenues to fund growth in services – Coupled with Inflationary increases in all other expenditures n Coming out of Recessionary cycle – Revenues not keeping pace with Expenditure increases

Challenges Faced in Developing FY 13 -14 Proposed Budget n n Unlike in prior years where focus was on expanding programs and service, Focus is on sustainability – scaling expectations and service levels to levels that are supportable within current fiscal constraints.

BUDGET SUMMARY All Funds (including transfers) FY 13 -14 Estimated Revenues $ 80, 024, 470 Utilization of Fund Balance 21, 877, 282 FY 13 -14 Total Resources $ 101, 901, 752 FY 13 -14 Appropriations $ 101, 901, 752 10

TOTAL APPROPRIATIONS All Funds FY 12 -13 Adopted FY 13 -14 Proposed 11

TOTAL OPERATING BUDGET All Funds Proposed FY 13 -14 Adopted FY 12 -13 Amount of Decrease Percent Increase $ 49, 901, 384 53, 088, 446 $ ( 3, 187, 062) - 6. 00 % 12

TOTAL CAPITAL IMPROVEMENT BUDGET - All Funds Proposed FY 13 -14 Adopted FY 12 -13 Amount of Increase Percent Increase $ 29, 720, 800 20, 876, 070 $ 8, 844, 730 - 42. 37 % 13

Capital Improvement Projects n CIP Process – CIP project reviews began in Fall 2012 – Identified existing projects in the current year that had remaining appropriations that could be returned to reserves – Reviewed prioritization criteria and prioritized projects – Reviewed current capacity - staff’s ability to start and complete projects as budgeted – Staff meets to get input on the CIP Plan and discuss during departmental budget hearings

Capital Improvement Projects n Highlights of Projects Funded in FY 13/14: – Yucca Loma Bridge construction contract to be awarded (finally): $13 m – Yucca Loma Road Widening (YLB to AV Road): $9. 6 m – Yucca Loma Road Widening (AV Road to Rincon) full design: $500 k – Bear Valley Bridge (Mojave River Bridge) $773 k – Hwy 18 West-end Widening (Phase 1 AVR realignment) full design: $250 k

CIP FUNDING: Eight-Year Historical Comparison 16

TOTAL APPROPRIATIONS By Fund Type Total $101, 901, 752 17

DISTRIBUTION OF SALARIES & BENEFITS - All Funds Total $9, 975, 309 18

GENERAL FUND SUMMARY FY 13 -14 Est. Revenues Transfers In Approp. to Fund Balance $ 19, 371, 251 5, 412, 641 174, 907 FY 13 -14 Total Resources $ 24, 783, 892 FY 13 -14 Proposed Budget * $ 24, 783, 892 * Includes Transfers Out 19

SUMMARY OF APPROPRIATIONS By Major Service Program – General Fund Total $24, 783, 892 20

GENERAL FUND APPROPRIATIONS FY 13 -14 Proposed $ 24, 783, 892* FY 12 -13 Adopted 23, 214, 010 Amount Increase $ 1, 394, 975 Percent Increase 6. 01 % *Transfer to Parks & Rec. Fund = $154, 715 *Transfer to AV Golf Course Fund = $333, 892 21

GENERAL FUND RESOURCES Including Transfers In Total $24, 783, 892 22

SALES & USE TAX General Fund – includes Sales Tax In-Lieu FY 13 -14 Estimated Revenue $ 5, 499, 000 FY 12 -13 Estimated Revenue Amount of Increase Percent Increase 5, 477, 000* $ 20, 000 0. 40% * As revised at Mid Year 23

SALES TAX COLLECTIONS By Business Categories – CY 2012 24

SALES & USE TAX HISTORY General Fund – Includes ST In-Lieu 25

PROPERTY TAX General Fund FY 13 -14 Estimated Revenue $ 3, 218, 000 FY 12 -13 Estimated Revenue Amount Increase Percent Increase 2, 861, 000* $ 357, 000 12. 5 % * As revised at Mid Year 26

PROPERTY TAX HISTORY General Fund 27

GENERAL FUND SUMMARY FY 13 -14 Est. Revenues Transfers In Approp. to Fund Balance $ 19, 371, 251 5, 412, 641 174, 907 FY 13 -14 Total Resources $ 24, 783, 892 FY 13 -14 Proposed Budget * $ 24, 783, 892 * Includes Transfers Out 28

PARKS AND RECREATION FUND SUMMARY FY 13 -14 Est. Revenues Transfers In $ 2, 924, 256 545, 885 FY 12 -13 Total Resources $ 3, 470, 141 FY 12 -13 Proposed Budget * $ 3, 470, 141 • Includes Transfers Out - $391, 170 ( NT = $154, 715) 29

AV GOLF COURSE FUND SUMMARY FY 13 -14 Est. Revenues Transfers In $ 861, 600 333, 892 FY 13 -14 Total Resources $ 1, 195, 492 FY 13 -14 Proposed Budget * $ 1, 195, 492 30

Fiscal Year 2013 -2014 Proposed Budget DEPARTMENT/PROGRAM HIGHLIGHTS 31

DEPARTMENT/PROGRAM HIGHLIGHTS/GOALS n Council: – Completed review, revision, and final adoption of the Town’s updated Vision 2020 Plan document – Adopted Local Preference Ordinance resulting in increased incentives for local companies – Obtained Yucca Loma Bridge environmental approvals – Continued to preside over wind-down of former RDA – Developed several economic development leads through ICSC conference – Participated in League of CA Cities Annual Conference and various quarterly policy committee assignments – Served on several state-wide, regional, joint powers authorities, committees and commissions

DEPARTMENT/PROGRAM HIGHLIGHTS/GOALS n Town Manager: – Secured $75, 000 in County Econ. Dev. grant to fund High Desert regions first collaborative participation at 2013 ICSC conference – Facilitated staff and spending reductions resulting in substantial overall cost savings (ie. shared Exec. Secretary) – Successfully negotiated 10 year animal shelter agreement with County – Secured lease of Town Hall space for 8 th District Congressional Offices

DEPARTMENT/PROGRAM HIGHLIGHTS/GOALS n Town Clerk: – Successfully conducted 2012 Municipal election – Organized tracking system for all vital records – Implemented new extended hours for passports processing services – Imported all TOAV claims into claims tracking software – Complete review/modification of Town’s records retention schedule

DEPARTMENT/PROGRAM HIGHLIGHTS n Finance department: – Received certificate of achievement for excellence in financial reporting for 10 th consecutive year – Continued reformatting budget document to improve financial reporting practices and public disclosure of financial information – Completed 1 AUP, 4 Due Diligence Reviews, 3 Recognized Obligation Payment Schedules and 5 Meet and Confer processes with the State Dept. of Finance re. RDA dissolution activities – Reconciled tax increment collections for all JPA members – Continue to update user fees as part of Master Fee Resolution process

DEPARTMENT/PROGRAM HIGHLIGHTS/GOALS n Public Information – Completed implementation of new logo – Continued redesign of website – Produced 4 issues of award-winning “Our Town” newsletter – Expanded sponsorship development efforts – Presented 30 public events and presented or assisted with 15 employee events – Implemented “one-stop” business portal on Town’s website – Expanded “social media” outreach by over 25%

DEPARTMENT/PROGRAM HIGHLIGHTS/GOALS n Human Resources/IT: – Rolled out new “web based” employee performance evaluation program – Successfully negotiated costs savings in health care provider contracts by moving to new shortterm disability program – Created an Employee Wellness Committee – Audited EAP program and identified credit owed to Town – Develop training program for managers/supervisors – Upgrade Town’s telephone system

DEPARTMENT/PROGRAM HIGHLIGHTS/GOALS n Public Safety – Deployed new automated license plate readers (ALPRs) – 16% reduction in part 1 crimes – Arrests increased by 21% – Operated 12 grant funded sobriety checkpoints – Calls for service were reduced by 2% – Received grant funding from COPS CHP to supplement funding for 1 officer – Recovered over $433, 000 in stolen property

DEPARTMENT/PROGRAM HIGHLIGHTS/GOALS n Animal Shelter: – Entered into 10 -year Sheltering Agreement – Implemented Town-wide spay and neuter program – Developed partnerships with local veterinarians to maximize spay/neuter grant funding – Updated cooperative agreements with animal rescue organizations – Began Saturday hours at Shelter – Conducted several fund-raisers: Pet Fair, Fur Ball, Cruisin for Critters

DEPARTMENT/PROGRAM HIGHLIGHTS n Municipal Operations/Env. Regulatory Compliance: – Increased E-waste collection and revenues – Completed bus stop improvements at 2 locations – Added additional security at HHW facility – Completed VVTA needs assessment report – Develop advertising campaign for bus shelters/ stops

DEPARTMENT/PROGRAM HIGHLIGHTS n Code Enforcement: – Hosted 3 multi-agency code enforcement sweeps in high desert communities – 11 clean up events for residents at no cost – Began enforcement of medical marijuana dispensary ban – Work with property owners to obtain more voluntary compliance – Implement cost-recovery program

DEPARTMENT/PROGRAM HIGHLIGHTS n Public Works: – Completed Sewer System Master Plan Update – Completed lift station AD 3 A-1 construction project – Completed emergency replacement of 2 AD 3 A Sewer manhole structures – Commenced comprehensive roadway crack-sealing program – Completed wet-well bypassing at all nine lift stations – Cleaned 35. 4 miles of sewer mainline – Video inspected 5. 4 miles of sewer mainline – Completion of Sewer manhole rehabilitation project

DEPARTMENT/PROGRAM HIGHLIGHTS n Parks and Recreation: – Replaced outdated playground structures at Thunderbird Park. – Received First 5 grant to implement programming for pre-school children. – Hosted 10 large soccer tournaments at Lenny Brewster Sports Center bringing in more than 50, 000 people to the Town. – Local track meet continued to be the largest local level Hershey’s track meet in Southern California. – Held first water polo tournament at the Aquatic facility – Partnered with PAL to host the Tour De Apple Valley and the event was the largest to date. – Partnered with the Local Little league and Pony baseball organizations to replace the backstop on fields #1 and the backstop and outfield fence on field #3 at James Woody park.

DEPARTMENT/PROGRAM GOALS AND OBJECTIVES n Parks and Recreation: – Completed Parks and Recreation Master Plan – Install two shade structures at James Woody Park – Reinstitute racquetball court at James Woody Park – Replace fencing at James Woody Park – Promote increased usage of the new Town Hall Conference Center

DEPARTMENT/PROGRAM HIGHLIGHTS n Community Development: – Awarded over $1 m in Cal Home grant funds – Approved over 110, 000 sq. ft. of commercial/office space – Awarded $800 k grant for multi-species habitat conservation plan – Completed a new 5 -year Consolidated Plan – Provided assistance to 18 low-income individuals with critical home repairs – Complete and adopt new housing element – Facilitate NAVISP infrastructure planning

DEPARTMENT/PROGRAM HIGHLIGHTS n Economic Development: – Preserved funding for key capital projects listed on the Recognized Obligation Payment Schedule (ROPs) – Continued marketing of “Get a Slice of the Apple” and “Select Apple Valley” brand – Coordinated Town-wide roll out of new logo, business cards and brand image – Named one of the nation’s top mid-sized cities in which to do business – Name one of the “least costly cities for doing business” by Kosmont Companies/Rose Institute

FISCAL YEAR 2013 -2014 PROPOSED BUDGET Ø Copies available for Public Viewing at: - Town Clerk’s Office at 14955 Dale Evans Parkway (Town Hall) - Town’s Website: www. applevalley. org Additional information contact 760 -240 -7000 47

FISCAL YEAR 2013 -2014 PROPOSED BUDGET § PUBLIC HEARING AND ADOPTION Tuesday, June 11(or 25 th), 2013 at 6: 00 in Council Chambers 48

Town of Apple Valley FISCAL YEAR 2013 -2014 PROPOSED BUDGET Budget Study Session May 30, 2013 49