AGENDA ITEM 13A

Date: May 28, 2020

Council Action Date: June 1, 2020

TO: Honorable Mayor and City Council

FROM: Alex D. McIntyre, City Manager Michael Coon, Finance and Technology Director

SUBJECT: Transmittal of Fiscal Year 2020-2021 Proposed Operating and Capital Improvement Budget

SUMMARY

Staff will be presenting the FY 2020-2021 Proposed Operating and Capital Improvement Budget to City Council in preparation for the final adoption of the budget on Monday, June 29, 2020.

RECOMMENDATION

a. Receive the FY 2020-2021 Proposed Operating and Capital Improvement Budget.

b. Review and provide input to the proposed budget balancing measures.

DISCUSSION/ANALYSIS

Staff initiated the FY 2020-2021 budget development process in November 2019. Countless hours were spent preparing a proposed budget that was scheduled to be delivered to City Council in April 2020. On Wednesday, March 11 staff had preliminarily balanced a projected General Fund deficit of $4.1 million. However, due to the uncertainty of the financial impacts from the COVID-19 Pandemic the budget needed to be rebalanced and a new date to propose the budget to City Council was set for June 1.

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Transmittal of Fiscal Year 2020-2021 Proposed Operating and Capital Improvement Budget June 1, 2020 Page 2 of 2

The FY 2020-2021 Proposed Operating and Capital Improvement Budget is included as Attachment A. Included at the front of the budget document is an 18-page letter that summarizes the citywide budget and provides details on staff’s recommendations to balance the projected $11.1 million deficit in the General Fund.

Prepared by: Michael Coon, Finance and Technology Director

ATTACHMENT:

A FY 2020-2021 Proposed Operating and Capital Improvement Budget

2

ATTACHMENT A

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Table of Contents

A. City Manager Transmittal Letter

B. Proposed Citywide Budget

C. Proposed General Fund Budget

D. Proposed General Fund Balancing Sheet

E. Proposed General Fund 5 Year Forecast

F. Proposed Measure O Fund Budget

G. Proposed Measure O 5 Year Forecast

H. Proposed Water and Wastewater Budget

I. Proposed Capital Project Budget

J. Budget Changes by Fund

K. Authorized Headcount

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Honorable Mayor LaVere and Members of the City Council:

It is my pleasure to present to you the Proposed Fiscal Year 2020-21 Operating and Capital Improvement Budget for Council’s consideration. This marks my second budget as your City Manager, and I am proud to propose a budget that is balanced and provides the necessary resources to support the ongoing services our residents have come to expect. It also was prepared consistent with the Council’s newly established Budget Principles and meets the Council goals, both identified earlier in the year. The estimated total Operating and Capital Improvement Budget for FY 2020-21 is $290.9 million.

It has been repeated often that, because of the pandemic, “we are in uncertain and unprecedented times.” New information emerges daily causing us to have to react and modify our assumptions about our economic future. There are some things we do know about COVID-19 including:

1. It will likely be an ongoing challenge for at least the next 12 months;2. It has forced many public agencies (including Ventura) to adapt quickly; and3. It will have a lasting effect on our residents’ quality of life and local businesses vitality.

There are some things about COVID-19 that we still don’t know including:

1. How will it affect our local economy;2. Will the State or Federal governments will step in to provide any financial relief; and3. What services will the City be required to adjust, add to, or eliminate?

Sacrifices have been made by many and still many more are struggling through this pandemic. My hope is to spread the sacrifices and pain equitably across all services as we develop this budget.

Given the above, our Budget Team has done a tremendous job of thoughtfully and quickly assembling a balanced budget based upon the Council’s revised Budget Principles and our most current information. Our path to balancing the budget was rather circuitous, but we eventually succeeded.

BUDGET WORKSHOP #1 In preparation for City Council’s annual Goal Setting session, Budget Workshop #1 was conducted on Monday, January 13, 2020. During the workshop, staff presented a five-year forecast for the General Fund. In it, staff presented three possible scenarios for future revenues:

• Most likely,• Optimistic, and• Recession.

What was believed to be the most likely scenario at the time predicted at least a $4.1 million deficit (and growing) in the General Fund for each of the five fiscal years. The following chart reflects this conclusion - $125.3M in projected expenditures compared to $121.2M in projected revenues for FY 2020-21.

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CITY COUNCIL’S BUDGET PRINCIPLES AND GOALS After reviewing the five-year forecast, City Council held their annual Goal Setting session on January 25, 2020. During this meeting, the City Council reviewed the draft Budget Principles and created Council goals and initiatives for the new budget year.

On February 10, 2020, the City Council adopted the following strategic goals to help guide the development of the FY 2020-21 Budget:

1. Stabilize and Strengthen the Organizationa. Focus on Delivery of Core Servicesb. Develop a Communications Strategyc. Develop an Information Technology Master Plan

2. Update the General Plana. Kick-Off General Plan Updateb. Create the General Plan Advisory Committeec. Create an effective Community Outreach strategy

3. Adopt an Economic Development Strategya. Implement initial results of the Matrix Reportb. Renew focus on growing the local economy

4. Find Opportunities to Invest in Beautifying the Communitya. Adopt the Tree Master Planb. Identify sites for Monument Signagec. Develop an Abandoned Building Ordinanced. Address Tier 3 Code Enforcement issues

127.7M

131.2M

134.8M

138.5M

142.3M

121.2M122.9M

124.9M126.7M

128.7M

116.M 116.8M119.1M

121.2M123.5M

120.1M

125.3M

127.3M129.3M

131.3M133.5M

115.M

120.M

125.M

130.M

135.M

140.M

145.M

FY 2019-20Estimate

FY 2020-21Forecast

FY 2021-22Forecast

FY 2022-23Forecast

FY 2023-24Forecast

FY 2024-25Forecast

GENERAL FUND FORECAST JANUARY 2020(IN MILLIONS)

Optimistic Revenue Most Likely Revenue Recession Revenue Expenditures

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5. Develop Coastal Area Strategic Plana. Work with State Beaches and Harbor for beach beautification, maintenance and

clean-upb. Strengthen the Promenade and other ocean facing infrastructure to anticipate the

impacts of sea level risec. Identify and implement improvements to Lower Seawardd. Explore feasibility of community facilities district or “resort fee” funding

mechanism to pay for ocean-front repairs

6. Stabilization and Augmentation of our Water Supplya. Draft Net Zero Policy Amendmentsb. Provide a pathway to a successful Ventura Water Pure project, or alternativesc. Provide a pathway to a successful State Water Interconnect Projectd. Focus on critical improvements to existing water infrastructure

7. Focus on Environmental Initiativesa. Propose a new Energy Action Planb. Implement the Active Transportation Programc. Finalize Electric Vehicle Blueprintd. Present the Mobility Plane. Focus on Electric Vehicle Fleet Infrastructure

8. Explore Charter/Voter Initiativesa. Draft proposed Charter modifications for Public Bidding Procedureb. Develop a Cannabis Voter Initiativec. Develop a Transient Occupancy Tax Voter Initiative

The following Budget Principles were adopted as a means of providing a council-approved framework for development of the budget:

1. Promote the City’s long-term financial sustainability through monitoring and reporting on changes in pension liabilities and including those changes in the City’s long-term forecast.

2. Incorporate a budget assumption for employee vacancies and resulting salary savings intothe forecast.

3. Actively pursue revenue enhancements and strive to achieve full cost recovery for all fee-based services, except where the City Council sees a clear public interest in providing asubsidy.

4. Clearly define the cost and timing of all cash outlays associated with major projects, toallow investment of idle cash, while maintaining liquidity.

5. Enhance and maintain core City services and infrastructure by prioritizing City Counciladopted initiatives and strategies that contribute to the quality of life in Ventura.

6. Evaluate one-time revenues for highest and best investment.

7. Improve productivity through continual review of City services, identifying newprograms/initiatives and enhancing, reducing, or eliminating existing programs.

8. Invest in technology to move the organization into civic technology era to provide effective, efficient, high-quality service to the community.

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9. Invest in training and development programs to strengthen Ventura’s standing as acompetitive employer of choice to retain and attract highly qualified personnel.

10. Proactively manage the loss of institutional knowledge through succession planningefforts including the ability to provide for overlap in critical positions, at the discretion ofthe City Manager.

11. Communicate the City’s financial position by continuing to refine the budget documentand provide comparison to actual results, while enhancing the public’s access to financialinformation.

12. Annually increase reserve funds as funds are available.

While the above Principles were meant to focus on the General Fund, the City Council also adopted Guiding Principles for the monies received from Measure O.

1. Prioritize non-operational expenses.

2. Continue to prioritize funding for public safety, homelessness, streetmaintenance and beautification, and maintenance of currentinfrastructure and programs, while giving due consideration to otherprograms within the scope of Measure O.

3. Quickly move to complete current projects before starting new ones.

4. Increase public participation.

The original budget, as originally drafted, provided the necessary resources to initiate and, where possible, complete these goals.

PRELIMINARY BUDGET BALANCING After receiving guidance from City Council, the Budget Team met with each department to review their spending request and to start the balancing process. To help balance the projected $4.1 million General Fund deficit, each department was asked to justify the need for every extra-help position and to provide a revenue or cost offset for any new funds being requested. After multiple rounds of review, the budget was preliminarily balanced on Wednesday, March 11th, right before the COVID-19 pandemic became more real. When originally balanced, the General Fund revenues and expenditures for FY 2020-21 were anticipated to be $123.5 million.

IMPACTS OF COVID-19 Due to the rapid spread of the virus, the City Manager declared a local emergency on March 15, 2020, which was later ratified by City Council on March 17, 2020. Then, to slow the further spread of COVID-19, Governor Newsom issued an Executive Order requiring non-essential businesses to temporarily close and requiring all residents to implement various social distancing practices. While these stay-at-home measures were widely implemented across the country and were effective in slowing the spread of the virus, they had devastating impacts on our local economy.

Due to the dynamic situation with the financial impacts of the COVID-19 pandemic, it became increasingly critical to continually update the City Council on the projected changes to the financial forecast for FY 2020-21. Staff presented the first financial update on the impacts of COVID-19 to City Council on April 7. These updates were conducted in the form of a presentation to the Finance, Audit, and Budget Committee on April 21, and then two additional presentations to City Council on April 27 and May 18. As of that final update, the City was facing a General Fund budget deficit of $11.1 million for FY 2020-21.

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CITY COUNCIL BUDGET BALANCING GUIDANCE At the April 27 City Council meeting, the Council approved the following revised Guiding Principles to help City staff in its efforts to balance the then estimated $12.0 million deficit.

1. Use all reasonable measures to avoid layoffs.

2. Acknowledge that we cannot “do more with less.” We will have to “do less with less.”

3. Look to make adjustments that are reasonably fair and equitable across all services anddepartments.

4. Look to focus on the immediate needs, but with an eye on the mid- and long-term impacts.

5. Actions should help position the City and its economy for a speedy recovery.

6. The use of reserves should be sustainable. Reserves should not be relied on for any periodbeyond FY 2020-21.

During the same meeting, City Council also approved the following tools to be used singularly, or in combination, for use in balancing the deficit.

1. Transfer Harbor Garage Debt to Parking Fund

2. Implement Hiring Freezes

3. Temporarily Suspend or Reduce the Cost-of-Living Adjustments

4. Temporarily Suspend or Reduce Merit & Step Increases

5. Reduce Support to Outside Agencies

6. Explore the Use of Unrestricted Fund Balance/Financial Reserves

7. Explore Cost Sharing Increases for Employee Benefits

8. Reduce Employee Benefits/Reduce Employee Travel

9. Consider Furloughs/Reductions in Hours Worked

10. Develop a Separation Incentive Program (e.g., Early Retirements)

11. Reduce and/or Eliminate Services

12. Identify Revenue Enhancements

At the May 18 City Council meeting, the Council also provided additional guidance regarding (1) the potential use of various nontraditional funding sources and (2) their interest in pursuing different revenue enhancements. At that time, we informed the Council that the projected General Fund deficit had been revised down to $11.1 million.

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Potential Use of Nontraditional Funding Sources Listed below are the nontraditional funding sources that were discussed at the meeting on May 18, in addition to a brief summary of the feedback provided by City Council.

• Available Measure O Fund Balance. Before considering any of the budget balancingmeasures, staff estimated there would be $3.6 million available in Measure O’s fundbalance that could potentially be used to help balance the General Fund for FY 2020-21.While some members of City Council shared some concerns about using these monies tohelp balance the General Fund, it appeared like the majority might be open to using someof the Measure O monies for one-time expenditures that meet the approved expenditurescategories for that fund.

• Redistribution of CDBG Funding. For FY 2020-21 the City will have over $0.9 million available for disbursement through the federal Community Development Block Grant(CDBG) program. Additionally, the City will also be receiving over $0.4 million inadditional CDBG funding to support disaster relief efforts related to the COVID-19pandemic. Historically, the City has allocated a majority of these CDBG funds to supportprograms with various outside agencies (e.g., the Economic Development Collaborative –Ventura Company, Women’s Economic Ventures, Ventura County Library, VenturaHousing Authority, and Westside Community Development Corporation).

During the meeting on May 1, 2020, members of City Council expressed specific interestin continuing to provide funding to those outside agencies supporting economicdevelopment and other services provided to lower-income areas of the City. It appearedas if a majority of City Council would be supportive of directing at least a portion of theCity’s CDBG allotment to provide funding to City programs that provide housing forhomeless individuals.

• Use of Funds from the Internal Service Funds. The City’s Internal Service Funds(ISF’s) provide funding for activities that support the day-to-day operation of services such as: employee benefits, risk management, information technology, fleet, and facilities. Inaddition to accounting for the operational expenses related to providing these services, theISF’s are also used to save for the future replacement of vehicles, equipment, and facilities.Currently, these ISF’s have a cash balance of approximately $25 million that couldpotentially be borrowed from to help offset the projected budget deficit in the GeneralFund. During the meeting, most of the members of City Council expressed concerns aboutborrowing money from the ISF’s because although there is a substantial amount of cash,it is not projected to meet the current and future needs of the ISF’s and withdrawing thecash would worsen the financial position of the ISF’s in future years.

• Emergency Reserves. The General Fund currently has a committed fund balance of$15.1 million that serves as its emergency reserves. While these funds have been set asideby previous City Councils to provide funding in the event of emergencies, there is arequirement that a plan be established to replenish any funds that are drawn down fromthis reserve. Due to the persistence of a structural deficit within the five-year forecast,multiple members of City Council expressed their concerns about using emergencyreserves if the City does not have the financial capacity to replenish those funds within areasonable timeframe.

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In addition to the General Fund’s emergency reserves, at the beginning of FY 2019-20, the fund also had an unrestricted fund balance of $15.1 million. Due to the COVID-19 related financial losses that are projected during the current fiscal year, it is estimated that the fund will close the fiscal year with an unrestricted fund balance of $10.6 million. While there is no specific requirement to replenish drawdowns in unrestricted fund balance, financial rating agencies including Moody’s and Standard and Poor’s would view it unfavorably if there were not a plan to replenish a drawdown of any type of fund balance.

• Other Ideas. When discussing the various types of nontraditional funding sources, CityCouncil also asked about the availability of the $8.2 million in funds that the City receivedfrom the settlement with Southern California Edison for the damage caused by theThomas Fire. During the meeting it was discussed that these funds would not be drawndown until any further legal exposure was exhausted. Additionally, it has been discussedthat these funds could be a great resource to help the City procure new technologies thatwould create a more efficient work environment and work processes. One example of howthe funds could be used on technology would be to support the purchase of a newenterprise resource planning (ERP) system estimated to cost $6.0 million.

Potential Revenue Enhancements Listed below are the potential revenue enhancements that were discussed at the May 18 meeting, in addition to a brief summary of the feedback provided by City Council. It is important to note that most revenue enhancements take more than a year to completely implement due to State requirements that new or increased taxes be approved by voters or that some charges go through the Proposition 218 public review process.

• Cannabis Tax. City Council had previously discussed placing a measure on theNovember 2020 ballot for a proposed cannabis tax. They affirmed their interest inpursuing a ballot measure that could raise an additional $0.5 million annually, dependingon the types of cannabis businesses that would be allowed.

• Transient Occupancy Tax Increase. A 1% increase to the Transient Occupancy Tax(TOT) could produce an additional $0.6 million in annual revenue. Overall, it appearedthat the City Council could be supportive of placing a future increase of the TOT rate onan election ballot, if there was coordination and support from the local hotel industry.

• Water & Wastewater Franchise Fee. Currently private utilities operating within theCity of Ventura pay franchise fees for the benefit they receive from locating theirinfrastructure within public rights-of-way. If a study were conducted to determine thebenefit that the City’s water and wastewater utilities receive from using public rights-of-way, the General Fund could potentially charge Ventura Water for those benefits. Duringthe meeting, it appeared that a majority of the City Council would not be in favor of tryingto balance the General Fund deficit by pushing more costs onto the utility rate payers atthis time.

• Streetlight District Rate Increases. The Streetlight District was established withinthe City of Ventura over 20 years ago to pay for the costs associated with operating andmaintaining most of the City’s streetlights. This District collects its revenues throughassessments placed on the properties that are receiving the benefits from the streetlights.Initially, the District was self-sustaining; however, the initial ballot language did notinclude an annual cost inflationary factor and assessments have not kept up with inflation.

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As a result, the General Fund is contributing about $0.4 million annually to support the streetlights. It appeared that a majority of City Council was open to conducting a study to determine what level of assessments would be needed to reduce the General Fund subsidy to the streetlights.

SUMMARY OF TOOLS USED TO BALANCE BUDGET DEFICIT Using the six guiding principles and 12 balancing tools approved by City Council, Staff is proposing to balance the projected $11.1 million budget deficit using the tools outlined below.

1. Transfer Harbor Garage Debt to Parking Fund - $0.5 millionIn 2007, the City issued a bond to pay off the long-term lease for the Harbor ParkingGarage and to reacquire the property. The General Fund has been paying the debt payment for that parking garage since it was issued. As part of the proposed budget, staff isrecommending that the debt payment for the parking garage be moved into the DowntownParking Fund where the revenues received from the garage are currently being collected.While the Downtown Parking Advisory Committee was initially reluctant to accept thedebt payment, at their meeting on May 21, 2020, it appeared like the majority of thecommittee members understood the appropriateness of and the need to move the debtpayment into the proper fund. It is also proposed that to help offset the cost of the debtpayment, that the Police Corporal position be eliminated from the Downtown ParkingFund. The Corporal would continue to supervise the Police Cadets that are used to enforceparking downtown. However, the person currently in the position being funded by parking would fill a Corporal position that has been previously approved in Measure O.

2. Offset Subsidy for Streetlight Assessment District - $0.4 millionSince the streetlight assessments cannot be increased until FY 2021-22, it is proposed thatMeasure O cover the costs of keeping the streetlights fully operational for FY 2020-21 andfor conducting the required rate study. These one-time expenditures will relieve theGeneral Fund from the $0.4 million subsidy, and they will preserve public safety byensuring that the streetlights remain fully funded.

3. Use CDBG Funds to Support Homeless Shelter - $0.4 millionThe proposed budget includes using $0.4 million of the CDBG funds to pay for a portionof the homeless shelter costs that are typically paid using Measure O funds. It isadditionally proposed that $0.4 million of one-time beatification expenses be moved fromPRCP’s General Fund budget to Measure O.

4. Hiring Freezes/VESIP/Layoffs (if needed) - $3.5 millionIt is proposed that 35 General Fund positions be indefinitely frozen or eliminated from theorganization. It is anticipated that most of the positions will come from the hiring freezethat is already in effect and the remaining vacancies will be generated through theVoluntary Employee Separation Incentive Program (VESIP) that was approved by CityCouncil on May 18, 2020.

5. Temporarily Suspend Cost-of-Living Adjustments - $1.5 millionThe General Fund base budget included $1.5 million as a place holder for cost-of-livingadjustments. However, it is recommended that these pay adjustments be temporarilysuspended and removed from the budget. Prior to the COVID-19 pandemic, the City waspreparing for labor negotiations with the employee unions and this amount would havebeen used to fund any agreed upon increases.

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6. Temporarily Suspend Merit & Step Increases - $0.7 millionAccording to the City’s negotiated labor agreements, unless an employee is already at thetop of their pay scale, each year they are eligible for a 5% merit increase. Staff is proposingthat a concession be negotiated with the unions to suspend merit increases through FY2020-21.

7. Furloughs/Reductions in Hours Worked - $1.3 millionIt is proposed that a concession be negotiated with the varying labor groups for eachemployee to be furloughed for 40 hours, or to receive a comparable deduction in pay,during FY 2020-21.

8. Reduce Support to Outside Agencies - $1.0 millionThe original General Fund base budget included just under $2.5 million in totalcontributions to the following outside agencies:

• Ventura Visitors & Convention Bureau• Museum of Ventura County• Ventura Housing Authority• 211 Services• Ventura County Library• CAPS Media• Downtown Ventura Partners• Community Granting Program

It is proposed that $1.0 million be reduced to the contributions from the General Fund to outside agencies. The Museum of Ventura County has already offered to cut their funding request in half so that they would only be receiving $0.1 million. Conversations have begun with the City’s other partners.

9. Reduce Increase to Internal Service Funds - $0.3 millionIn the General Fund forecast that was presented to City Council in January, it was sharedthat there was an estimated need for an additional $1.6 million in funding for the ISF’s.Due to limited funding within the proposed budget, it is recommended that only $1.3million in additional funded be provided.

10. Move Various One-Time Funding Requests to Measure O - $0.2 millionWhen the budget was originally balanced in March, there was funding available in theGeneral Fund to pay for a mandated stormwater study, a needed study to update the City’sstandards regarding personal protective equipment, and training for the HistoricPreservation and Design Review Committees. It is now proposed that these one-time costsbe covered by Measure O.

11. Reduce Employee Travel - $0.1 millionDue to the COVID-19 pandemic, it is anticipated that next fiscal year a significantly largernumber of trainings and conferences will be conducted virtually, leading to lower spending on travel for employee development. To account for the decreased travel, it is proposedthat all employee development budgets be reduced by 21%, which equates to a reductionof $100,000 in the General Fund. Prior to the proposed reduction, $473,631 was includedin the General Fund base budget for employee development.

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12. Deny Various New Funding Requests - $0.1 millionThe budget that was preliminarily balanced in March included funding to cover the costsof a ballot initiative for a TOT increase, an office redesign in Community Development, arequested increase for the DVP’s ambassador program, new economic developmentsoftware, and having a temporary employee distribute the City’s mail. However, fundingis not available within the proposed budget for FY 2020-21.

13. Revenue Enhancements - $0.1 millionThe proposed budget includes additional revenues of just over $0.1 million that would begenerated from a newly approved credit card transaction fee and from a potential new taxon cannabis.

14. Drawing from Unrestricted Fund Balance - $1.0 millionIt is proposed that $1.0 million of the General Fund’s unrestricted fund balance be used tobalance the General Fund budget for FY 2020-21 and to mitigate any further reductionsto services.

CITYWIDE FINANCIAL OVERVIEW The City’s overall proposed budget for FY 2020-21 is $290.9 million for all funds combined. This is a reduction of $10.6 million from the FY 2019-20 Adopted Budget, or 3.5%.

The City’s financial position remains fragile. Our revenues are projected to decrease compared to the budget for FY 2019-20. As a service organization providing valued core services such as public safety, land use planning, engineering design, and street and park maintenance, so much of our costs are related to our investment in our hardworking people. In the long term, the City needs to find a sustainable path forward where our projected expenditures better match projected revenues.

40%

15%

13%

9%

8%

8%

5%

1% 1%

FY 2020-21 Citywide Budget by Fund$290.9M

General Fund, $115.5M

Capital Funds, $44.1M

Water Operations, $37.8M

Internal Service Funds, $27.5M

Wastewater Operations, $23.4M

Special Revenue Funds, $22.2M

Measure O, $14.7M

Special Assessment Districts, $3M

Debt Service, $2.7M

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Revenues The largest source of revenue citywide is Charges for Services, which is the primary source of revenue for the Water and Wastewater Operations funds as well as Internal Service Funds and the Special Assessment Districts. Overall, Charges for Services make up $97.8 million, or 33.6% of the City’s overall budget.

The second largest source of citywide revenues comes from Taxes which include property taxes, sales taxes, utility users’ taxes, Measure O’s transaction and use tax, franchise fees, and transient occupancy tax (TOT). In total, revenue from taxes is budgeted at $90.0 million, or 30.9% of the City’s overall budget.

Expenditures

As in prior years, personnel costs remain the largest component of the City’s overall expenditure budget, accounting for $100.9 million including costs associated with full time salaries and benefits, overtime and extra help. While the proposed budget includes indefinitely freezing or eliminating 35 positions within the General Fund, the total citywide FTE’s (Full Time Equivalent) remain flat at 659.5. The position count is not decreasing at this time due to the uncertainty surrounding which employees will participate in the voluntary separation program and how staffing levels within various departments and divisions may need adjusted to provide the best service levels possible. Once all the exact position changes have been finalized, the FTE count will be adjusted accordingly.

$ in millions FY 2019-20

Adopted FY 2020-21

Proposed Revenue and Other Resources by Category

Charges for Services 96.7 97.8

Taxes 92.9 90.0 Prior Year Resources 59.7 51.0 Other agencies 17.6 19.5 Other 10.9 12.1 Internal Transfers 14.8 12.7 Licenses and Permits 5.9 4.6Fines and Forfeitures 3.0 3.2Total Revenue $301.5 $290.9

34%

31%

17%

7%

4%4%

2% 1%

FY 2020-21 Citywide Revenue Estimates$290.9 Million

Charges for Services, $97.8M

Taxes, $90M

Prior Year Resources, $51M

Other agencies, $19.5M

Internal Transfers, $12.7M

Other, $12.1M

Licenses and Permits , $4.6M

Fines and Forfeitures, $3.2M

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While the total FTE count is proposed to remain flat, the budget includes the potential for 12 vacant positions to be reclassified. The potential reclassifications are listed below, although it is more likely that some of the reclassifications within the General Fund will not happen due to funding limitations.

• Reclassify one vacant position to aConstruction Permit Supervisor tohelp improve a bottleneck within the development process

• Reclassify one vacant position to aSecretary in Code Enforcement tohelp address Tier 3 complaints

• Reclassify up to three vacantpositions to various planner positions to better support the General Plan Update and theHistoric Preservation and Design Review Committees

• Reclassify on vacant position to a Maintenance Worker I/II within the Streets Division,funding would be offset by reductions in extra-help

• Reclassify two vacant positions to Systems Support Technicians I/II within IT andeliminate the IT help desk contract with Ventura County, producing an overall cost savings

• Reclassify one vacant position to Systems Analyst I/II within IT to support EnerGov andother IT needs related to the City’s development processes, funding would be provided bythe development technology fee

• Reclassify one vacant position to Systems Analyst I/II within IT to support VenturaWater’s software, funding would be provided by Ventura Water

• Reclassify one vacant position to Field Biologist within Ventura Water to monitor theSanta Clara River Estuary, funding would be provided by the Estuary Protection Fee

• Reclassify one vacant position to Equipment Mechanic within Fleet Maintenance, fundingwill be offset by reducing overtime and the use of outside contractors

35%

27%

20%

7%

4%4% 3%

FY 2020-21 Citywide Expenditures Estimate

$290.9 MillionPersonnel Services, $100.9M

Services And Supplies, $77.3M

Capital Outlay & CIP, $59M

Internal Services, $22M

Transfers, $12.7M

616

650.5659.5 659.5

590

600

610

620

630

640

650

660

670

Full-Time Equivalents (FTEs)

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Personnel costs are expected to increase in the future, as pensions costs continue to increase, and costs related to health benefits and labor contracts rise.

Looking ahead, staff will continue to focus on and monitor several key factors, which will impact future budgets. These include:

• Growing pension costs

• Interest in adding and/orexpanding City services

• Development pressures

• Continued focus on EconomicDevelopment

• Continued emphasis onreplacing and maintaining infrastructure

• Investment in technology, training and employee development

• Building and maintaining a strong leadership team

BUDGET SUMMARY General Fund

As a rule, municipal budgets focus on the strength and stability of its General Fund. It is our City’s largest fund providing necessary resources to pay for City services and operations. It is also the fund with the greatest discretion for the City Council. The primary revenue source for the General fund is taxes: property, sales, utility, and other.

Ongoing revenue expected in FY 2020-21 is estimated to decrease to $115.5 million due to the financial impacts of the COVID-19 pandemic. These revenues are used to support the operations of all City departments except Ventura Water.

Property tax is one of the few revenue categories where we are expecting to see an increase in the annual budget over FY 2019-20 due to taxes based on property values as of January 1, 2020. While staff is

expecting utility taxes to remain flat, large decreases are projected for sales tax and the transient occupancy tax.

Citywide Expenditures in Millions

$ in millions FY 2019-20

Adopted FY 2020-21

Proposed

Expenditures by Category

Personnel Services 104.6 100.9

Services and Supplies 88.5 77.3

Capital Outlay & CIP 50.6 59.0

Internal Services 19.6 22.0

Transfers 14.8 12.7

Non-Operating 11.6 11.4

Reserves and Contingencies 11.8 7.6

Total Expenditures $301.5 $290.9

63%

19%

13%

3% 1% 1% 0%

FY 2020-21 General Fund Expenditures by Category, $115.5 Million

Personnel Services, $73.1M

Services And Supplies, $22.5M

Internal Services, $14.8M

Transfers, $3.7M

Reserves & Contingencies, $0.6M

Non-Operating, $0.6M

Capital Outlay, $0.2M

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Large decreases are also anticipated in Charges for Service due to the changes and cancellations that will be required to PRCP’s events and classes related to the social distancing requirements that are anticipated to remain in place for an extended amount of time. An additional large decrease in revenues is projected for Licenses and Permits due to the economic slowdown.

While revenues are projected to decrease in FY 2020-21, staff anticipates that in FY 2021-22, revenues will return to similar levels originally projected for FY 2019-20. In the years following FY 2021-22, revenues are anticipated to increase at a modest rate of about 2.7%.

As was true in the citywide analysis, personnel services constitute the largest expenditure within the General Fund. The growth of expenditures here outpace modest revenue growth in future years and staff has carefully considered these trends when building the FY 2020-21 budget and in estimating future-year expenditures.

Measure O

With concerns of an aging infrastructure and focus on maintaining public safety, the voters of Ventura passed ballot Measure O in 2016, adding a 25-year one-half percent transaction and use tax for purchases made within the City boundary limits. Revenues and Expenditures for Measure O have been placed into a separate fund for ease of tracking and reporting.

Now entering its fourth year, the Measure O budget for FY 2020-21 continues to provide funding for various programs in accordance with the City’s Measure O Ordinance and approval of the Citizens Oversight Committee.

Through this budget preparation, we have reprioritized prior years’ anticipated Measure O investments and provided a more realistic spending plan for the coming year.

34%

18%17%

8%

6%

6%

4%4%

2% 1% 0%

FY 2020-21 General Fund Expenditures by Department, $115.5 Million

Police, $39.6M

Fire, $20.9M

PRCP, $19.4M

Public Works, $9.4M

Non-Departmental, $6.7M

Community Development, $6.5M

City Manager, $4.7M

Finance and Technology, $4.4M

City Attorney, $2.4M

Human Resources, $1.2M

City Council, $0.3M

Page 16 of 36

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Measure O Balance

Anticipated Revenues - $12.9 million Anticipated use of Prior Year Resources - $ 1.6 million Total Anticipated Revenues - $14.5 million

Total Anticipated Expenditures - $14.5 million

Carryover fund balance at 6/30/21 - $ 3.7 million

While the proposed Measure O budget does not fully expend all resources immediately available, staff anticipates greater needs in the future for major capital projects.

During the balancing process, multiple expenditures related to Measure O were recommended for transfer between funds. Those changes are listed below.

Amount Transfer subsidy to Lighting District from General Fund $404,129 Transfer cost of homelessness to CDBG ($400,000) Transfer cost of PRCP tree trimming from General Fund $400,000 Transfer cost of training for DRC & HPC from General Fund $25,000 Transfer cost of PPE study from General Fund $60,000 Transfer cost of mandated stormwater study from General $100,000 Total transfers to Measure O $589,129

Ventura Water

Ventura Water’s combined proposed budget is $61.2 million.

Ventura Water is comprised of two enterprises: Water and Wastewater. The primary source of revenue for Ventura Water is Charges for Services. These charges primarily consist of rates from residential and commercial customers. This year, there will be a review and evaluation of the

42%

37%

18%

2% 1%

FY 2020-21 Measure O Expenditures Estimate $14.5M

Personnel Services $6.1M

Services and Supplies $5.3M

Capital Outlay $2.6M

Internal Services $0.3M

Reserves & Contingencies $0.2M

Page 17 of 36

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current rates for both residential and commercial customers. Ventura Water is undertaking two ambitious, yet critical, projects to improve and stabilize water resources and wastewater disposal for the City. Combined, both the Ventura Water Pure and the State Interconnect projects are estimated to cost over $200 million over the next several years.

Wastewater The proposed budget for the Wastewater Division is $23.4 million, which is approximately the same amount as the current year.

Water The proposed budget for the Water Division is $37.8 million, a $1 million decrease over the current year. Operating revenues in the Water Operations fund have increased gradually over the last five fiscal years but are anticipated to remain flat in FY 2020-21 as continued water conservation efforts and above average rainfall has moved Ventura Water into Stage 2 Water Rates.

Capital Improvement Spending

The City’s Capital Improvement Plan (CIP) reflects and identifies the most critical infrastructure priorities. The CIP is the City’s strategic planning framework that addresses the preservation, maintenance, and improvement of our capital infrastructure that supports and delivers some of our core City functions and essential City services. Well-maintained infrastructure will help sustain Ventura’s economic prosperity. The condition of our streets, sidewalks, water, sewer, storm drains, recreation facilities, parks, and other public facilities reflects on how well our community is doing and its ability to sustain economic growth. A community’s quality of life, health, safety, and economic well-being are all tied to the cornerstone of its infrastructure.

A total of $55.9 million is planned in capital improvements for the new fiscal year, which consists of both maintenance and capital projects. These projects are comprised of the following project areas: Coastal, Facilities, Parks and Medians, Public Art, Stormwater, Other Capital, Streets, Transportation, Wastewater, and Water.

30.4 29.0 30.5 29.337.1 38.8 37.8

20.1 21.5 21.9 22.6

23.6 23.4 23.4

M

10M

20M

30M

40M

50M

60M

70M

FY 2014-15FY 2015-16FY 2016-17FY 2017-18FY 2018-19 FY 2019-20A

FY 2020-21P

Ventura Water Expenditures

Water Wastewater

Page 18 of 36

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CONCLUDING REMARKS

Our budget development roadmap has been anything but easy; COVID-19 dramatically changes daily and continues to disrupt our path. Even as of now, new information continues to be presented that might affect our calculations and estimates. With the ever-changing information related to our COVID-19 response and recovery, Council could look at this document as an interim budget. It is likely that City will return to the Council for several budget amendments throughout the year.

I have worked closely with the Ventura City Council and City staff to apprise them of this process. The workforce continues to be receptive of our theme of “Shared Sacrifice; Shared Pain”. They understand that COVID-19 problems are global in nature and our unique experience is just that – ours. In fact, many employees offered suggestions on how we could best achieve this balancingtask. Since March 15, City staff has adapted to the new world and continues to provide high qualityservice to our community, stakeholders and local businesses. Our first responders and frontlineworkers took careful protective measures so that they could continue to serve and protect thecommunity. Then when City Hall and the Corporation Yard Building shut down, the majority ofour workforce went home and set up offices so that they could continue to do their jobs, bothsupporting the front line, as well as planning for a new tomorrow.

It is now time to work with the Community to gain their support for our budget plan. I am hopeful that they will see the wisdom of the path we have taken to arrive at this balanced budget.

A document like this does not come together in an organizational vacuum. A lot of people helped to make this happen. My Executive Team has been helpful and patient with me in the development of this budget. A special thanks to the budget team who have spent thousands of hours developing, refining, changing, reacting, challenging and proofing the numbers to ensure accuracy.

35%

30%

23%

5%

2%2%2%

1%

FY 2020-21 Capital Spending Plan$55.9 million

Water, $19.4M

Wastewater, $16.7M

Streets & Transportation, $12.6M

Parks and Medians, $2.8M

Facilities, $1.4M

Stormwater, $1.2M

Other Capital, $1M

Coastal, $0.8M

Page 19 of 36

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The team that helped prepare the FY 2020-21 Proposed Budget includes:

• Finance & Technology Director Michael Coon

• Assistant Finance & Technology Director Mary Eckman

• Financial Services Manager Director Greg Morley

• Senior Financial Analyst Pam Townsend

• Senior Financial Analyst Darrell Brumley

• Accountant II Terri Johnson

And special recognition to Assistant City Manager Akbar Alikhan for his investment into this process.

NEXT STEPS

Staff will present the full budget to the Council on Monday, June 1, 2020, at which time the Council will be given the opportunity to ask questions and provide feedback about the proposed budget to City staff.

If the Council still feels a need for additional discussion about the proposed budget, Monday, June 15, 2020 has been set aside as a budget workshop.

A full public hearing is scheduled on Monday, June 29, 2020, at which time the Council will take public comment on the final proposed budget. Following the public hearing, staff will ask the Council to adopt the budget and approve the related resolutions.

I look forward to your feedback on this proposed FY 20-21 budget.

Respectfully Submitted,

Alex D. McIntyre City Manager

Page 20 of 36

22

Citywide Revenues by Fund by CategoryFY 2020-21 Proposed Budget

Charges for Services Taxes

Other Agencies

Licenses and Permits

Fines and Forfeitures Other

Subtotal Revenues

Internal Transfers

Prior Year Resources Total

Revenues by FundGENERAL 13,514,589 76,500,304 11,088,982 3,944,078 3,183,649 3,627,008 111,858,610 1,680,137 1,959,935 115,498,682 GENERAL & CATEGORICAL GRANT PROGRAM 442,585 - 397,670 - - 1,007,616 1,847,871 - 241,001 2,088,872 CAPITAL IMPROVEMENT - - - - - - - - 2,159,225 2,159,225 MEASURE O-TRANSACTION AND USE TAX - 12,165,262 - - - 740,430 12,905,692 - 1,746,483 14,652,175 TDA ART8C & ART4 PROGRAM - - 270,669 - - 2,000 272,669 - - 272,669 TDA ART3 PROGRAM - - 60,000 - - - 60,000 - - 60,000 TRANSPORTATION - 900,000 - - - 250,000 1,150,000 - 1,717,000 2,867,000 GAS TAX - - 6,359,256 - - 110,000 6,469,256 225,000 2,541,577 9,235,833 SUPPLEMENTAL LAW ENFORCEMENT - - 237,946 - - - 237,946 - - 237,946 LAW ENFORCEMENT - - 20,000 - - 26 20,026 - 10,000 30,026 PARK & REC CAPITAL IMPROV - 400,000 - - - 200,000 600,000 - 2,193,200 2,793,200 PUBLIC ART PROGRAM - - - - - - - - 44,500 44,500 DEBT SERVICE OBLIGATION - - - - - 3,500 3,500 2,094,488 - 2,097,988 DEBT SERVICE FUND-PARKING STRUCTURE - - - - - 4,500 4,500 587,500 - 592,000 DOWNTOWN PARKING DISTRICT - - - 625,500 - 605,500 1,231,000 - 173,387 1,404,387 HCDA-ACT OF 1974 PROGRAM - - 1,121,005 - - - 1,121,005 - 491,757 1,612,762 MAINTENANCE ASSMT DISTRICTS 770,800 - - - - - 770,800 - 32,637 803,437 STREET LIGHTING DISTRICT 874,435 2,000 - - - 500 876,935 404,129 - 1,281,064 PROPERTY BASED IMPROVEMENT DISTRICT 959,499 800 - - - 300 960,599 - - 960,599 WASTEWATER OPERATIONS 23,252,700 - - - - 120,000 23,372,700 - 57,066 23,429,766 WATER OPERATIONS 31,225,400 - - - - 1,235,000 32,460,400 3,992,044 1,350,110 37,802,554 INFORMATION TECHNOLOGY ISF 4,809,174 - - - - - 4,809,174 1,537,260 777,841 7,124,275 FLEET MAINTENANCE ISF 5,891,478 - - - - 144,505 6,035,983 20,151 193,018 6,249,152 FACILITIES MAINTENANCE ISF 4,245,319 - - - - 14,000 4,259,319 - 262,704 4,522,023 DIGITAL PUBLISHING ISF 428,256 - - - - - 428,256 - 2,124 430,380 WORKERS COMPENSATION ISF 2,748,718 - - - - 195,852 2,944,570 - 373,174 3,317,744 EMPLOYEE BENEFITS ISF 1,584,388 - - - - - 1,584,388 - 42,288 1,626,676 PUBLIC LIABILITY ISF 4,110,864 - - - - - 4,110,864 - 103,989 4,214,853 WASTEWATER CAPITAL - - - - - 450,000 450,000 - 18,463,745 18,913,745 WATER CAPITAL 500,000 - - - - 1,427,424 1,927,424 2,200,000 16,022,019 20,149,443 ESTUARY PROTECTION 2,400,000 - - - - - 2,400,000 - - 2,400,000 REDEVELOPMENT OBLIGATION RETIREMENT - - - - - 1,759,716 1,759,716 - - 1,759,716 SUCCESSOR AGENCY ADMINISTRATION - - - - - 145,280 145,280 - - 145,280 SUCCESSOR HOUSING AGENCY - - - - - 75,858 75,858 - - 75,858

Total Revenues 97,758,205 89,968,366 19,555,528 4,569,578 3,183,649 12,119,015 227,154,341 12,740,709 50,958,780 290,853,830

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Citywide Expenditures by Fund by CategoryFY 2020-21 Proposed Budget

Personnel Services

Services And Supplies

Internal Services Capital Outlay

Subtotal Revenues Non-Operating

Reserves And Contingencies Transfers Total

Expenditures By Fund GENERAL 73,131,055 22,468,810 14,772,452 609,335 110,981,652 160,300 604,482 3,752,248 115,498,682 GENERAL & CATEGORICAL GRANT PROGRAM 1,037,327 820,831 130,714 100,000 2,088,872 - - - 2,088,872 CAPITAL IMPROVEMENT - - - 2,159,225 2,159,225 - - - 2,159,225 MEASURE O-TRANSACTION AND USE TAX 5,650,226 5,174,020 346,666 2,927,134 14,098,046 - 150,000 404,129 14,652,175 TDA ART8C & ART4 PROGRAM 101,274 70,613 100,782 - 272,669 - - - 272,669 TDA ART3 PROGRAM - 60,000 - - 60,000 - - - 60,000 TRANSPORTATION - - - 1,804,102 1,804,102 - 1,062,898 - 2,867,000 GAS TAX 35,933 398,067 - 8,801,833 9,235,833 - - - 9,235,833 SUPPLEMENTAL LAW ENFORCEMENT 229,407 - 8,539 - 237,946 - - - 237,946 LAW ENFORCEMENT - 30,026 - - 30,026 - - - 30,026 PARK & REC CAPITAL IMPROV - - - 2,793,200 2,793,200 - - - 2,793,200 PUBLIC ART PROGRAM - 43,000 - - 43,000 - 1,500 - 44,500 DEBT SERVICE OBLIGATION - 3,500 - - 3,500 2,094,488 - - 2,097,988 DEBT SERVICE FUND-PARKING STRUCTURE - 4,500 - - 4,500 587,500 - - 592,000 DOWNTOWN PARKING DISTRICT 302,186 207,461 70,940 275,000 855,587 81,800 - 467,000 1,404,387 HCDA-ACT OF 1974 PROGRAM 162,530 1,437,930 12,302 - 1,612,762 - - - 1,612,762 MAINTENANCE ASSMT DISTRICTS - 476,644 - - 476,644 - 225,190 101,603 803,437 STREET LIGHTING DISTRICT - 1,278,598 2,466 - 1,281,064 - - - 1,281,064 PROPERTY BASED IMPROVEMENT DISTRICT (P - 960,599 - - 960,599 - - - 960,599 WASTEWATER OPERATIONS 5,743,061 7,602,690 2,315,764 200,000 15,861,515 2,505,375 500,000 4,562,876 23,429,766 WATER OPERATIONS 7,569,426 20,347,873 3,367,990 - 31,285,289 4,784,563 500,000 1,232,702 37,802,554 INFORMATION TECHNOLOGY ISF 2,731,732 2,380,872 166,188 510,000 5,788,792 - 1,335,483 - 7,124,275 FLEET MAINTENANCE ISF 1,187,157 2,141,350 218,929 1,916,600 5,464,036 - 785,116 - 6,249,152 FACILITIES MAINTENANCE ISF 914,945 3,381,606 155,142 - 4,451,693 179 50,000 20,151 4,522,023 DIGITAL PUBLISHING ISF 276,043 120,000 34,337 - 430,380 - - - 430,380 WORKERS COMPENSATION ISF 175,429 3,061,651 80,664 - 3,317,744 - - - 3,317,744 EMPLOYEE BENEFITS ISF 1,210,992 257,432 158,252 - 1,626,676 - - - 1,626,676 PUBLIC LIABILITY ISF 197,911 3,993,891 23,051 - 4,214,853 - - - 4,214,853 WASTEWATER CAPITAL - - - 16,713,745 16,713,745 - - 2,200,000 18,913,745 WATER CAPITAL - - - 20,149,443 20,149,443 - - - 20,149,443 ESTUARY PROTECTION - - - - - - 2,400,000 - 2,400,000 REDEVELOPMENT OBLIGATION RETIREMENT - 530,091 - - 530,091 1,229,625 - - 1,759,716 SUCCESSOR AGENCY ADMINISTRATION 73,679 56,311 15,290 - 145,280 - - - 145,280 SUCCESSOR HOUSING AGENCY 59,365 13,787 2,706 - 75,858 - - - 75,858

Total Expenditures 100,789,678 77,322,153 21,983,174 58,959,617 259,054,622 11,443,830 7,614,669 12,740,709 290,853,830

Page 22 of 36

24

Proposed General Fund BudgetRevenues by Category

FY 2020-21 Proposed

Revenue and Other Resources by CategoryTaxes 76,500,304 Charges for Services 13,514,589 Other agencies 11,088,982 Licenses and Permits 3,944,078 Other 3,627,008 Fines and Forfeitures 3,183,649 Prior Year Resources 1,959,935 Internal Transfers 1,680,137

Total Revenue and Other Revenue $115,498,682

66%

12%

10%

3%3% 3% 2%1%

FY 2020-21 General Fund Proposed Revenues by Category

Taxes, $76.5M

Charges for Services, $13.5M

Other agencies, $11.1M

Licenses and Permits, $3.9M

Other, $3.6M

Fines and Forfeitures, $3.2M

Prior Year Resources, $2M

Internal Transfers, $1.7M

Page 23 of 36

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Proposed General Fund BudgetExpenditures by Department

FY 2020-21 Proposed

Expenditures by DepartmentPolice 39,642,752 Fire 20,870,872 PRCP 19,376,383 Public Works 9,402,691 Non-Departmental 6,694,404 Community Development 6,470,829 City Manager 4,752,557 Finance & Technology 4,392,915 City Attorney 2,362,313 Human Resources 1,248,004 City Council 284,962

Total Expenditures 115,498,682

34%

18%

17%

8%

6%

6%4% 4% 2% 1%

0%

FY 2020-21 General Fund Proposed Expenditures by Department

Police, $39.6M

Fire, $20.9M

PRCP, $19.4M

Public Works, $9.4M

Non-Departmental, $6.7M

Community Development, $6.5M

City Manager, $4.7M

Finance & Technology, $4.4M

City Attorney, $2.4M

Human Resources, $1.2M

City Council, $0.3M

Page 24 of 36

26

Proposed General Fund BudgetExpenditures by Category

FY 2020-21 Proposed

Expenditures by Category Personnel Services 73,131,055 Services and Supplies 22,468,810 Internal Services 14,772,452 Transfers 3,752,248 Capital Outlay 609,335 Reserves & Contingencies 604,482 Non-Operating 160,300

Total Expenditures 115,498,682

63%

19%

13%

3%1% 1%

0%

FY 2020-21 General Fund Proposed Expenditures by Category

Personnel Services, $73.1M

Services and Supplies, $22.5M

Internal Services, $14.8M

Transfers, $3.7M

Capital Outlay, $0.6M

Reserves & Contingencies, $0.6M

Non-Operating, $0.2M

Page 25 of 36

27

Proposed General Fund FY 2020-21 Balancing Sheet

REVENUES BY ACCOUNT CATEGORYFY2019-20

Adopted BudgetFY 2020-21

Proposed BudgetRunning Balance

1 Property Tax 27,307,229 29,400,578 29,400,578 2 Sales Tax 26,976,105 25,372,510 54,773,088 3 Utility Tax 7,947,614 7,618,308 62,391,396 4 Other Taxes 15,466,519 14,108,908 76,500,304 5 Licenses and Permits 5,289,986 3,944,078 80,444,382 6 Fines and Forfeitures 3,026,100 3,183,649 83,628,031 7 Use of Money and Property 1,765,939 1,795,011 85,423,042 8 Other Agencies 10,540,000 11,088,982 96,512,024 9 Charges for Services 14,471,371 13,434,589 109,946,613

10 Other Miscellaneous Revenue 2,143,122 1,781,997 111,728,610 11 Internal Transfers 1,983,617 1,680,137 113,408,747 12 Prior Year Resources 2,439,625 440,000 113,848,747

TOTAL REVENUES 119,357,227 113,848,747 113,848,747

EXPENDITURES BY CATEGORYFY2019-20

Adopted BudgetFY 2020-21

Proposed BudgetRunning Balance

13 Personnel Services 70,535,838 75,806,309 38,042,438 14 Current placeholder for Pay Increase 1,503,978 36,538,460 15 Overtime 4,568,800 4,626,400 31,912,060 16 Exta Help 2,209,202 2,375,666 29,536,394 17 Vacancy Factor (2,934,273) 32,470,667 18 Estimated CIP Savings (2,002,084) 34,472,751 19 Merit Increases 719,331 33,753,420

Subtotal Personnel Services 77,313,840 80,095,327 33,753,420 20 Services and Supplies 23,272,653 23,609,565 10,143,855 21 Internal Services 12,860,116 14,772,452 (4,628,597) 22 Non-Operating 178,435 160,200 (4,788,797) 23 Debt Service 100 (4,788,897) 24 Capital Outlay 88,000 89,400 (4,878,297) 25 Reserves & Contingencies 300,000 604,482 (5,482,779) 26 Transfers 5,344,183 3,358,835 (8,841,614)

TOTAL EXPENDITURES 119,357,227 122,690,361 (8,841,614)

FY 2020-21 REMAINING BALANCE - (8,841,614) (8,841,614)

Balancing Items Estimated Cost Running Balance

27 Reclassify open position to CD New Position - Construction Permit Supervisor (3/4 funded) 96,258 (8,937,872) 28 Reclassify open position to CD Convert Extra Help Secretary to permanent 82,500 (9,020,372) 29 Reclassify open position to CD New Position - Associate Planner (3/4 funded) 89,497 (9,109,869) 30 Reclassify open position to CD New Position - New Principal Planner (3/4 funded) 115,416 (9,225,285) 31 Reclassify open position to CD New Position - New Planning Manager (3/4 funded) 139,761 (9,365,045) 32 PD Reallocate Sr Police Records Specialist to Police Records Supervisor 28,647 (9,393,692) 33 Reclassify open position to PW New Maintenance Worker I/II - Streets 79,027 (9,472,719) 34 PD-Increase to animal control costs 110,000 (9,582,719) 35 FD-Fire Prevention contract services for inspections 100,000 (9,682,719) 36 PW-Increased cost of complying with 2 TMDL 40,000 (9,722,719) 37 HR-LinkedIn Learning (Citywide) 29,245 (9,751,964) 38 PD-annual maintenance increase for body worn cameras 78,000 (9,829,964) 39 PRCP-Contract maintenance for 2 new parks on East End 50,000 (9,879,964)

Possible Changes40 Additional IT ISF Funding 1,264,542 (11,144,506) 41 CM-Remove election costs for TOT Increase (13,000) (11,131,506) 42 FT-remove AppleOne employee funding (20,000) (11,111,506) 43 Fund 30 Transfer Part of debt burden for parking structure (467,000) (10,644,506) 44 Eliminate pay increases (COLA) (1,503,978) (9,140,528) 45 Reduce annual merit & step increases (719,331) (8,421,197) 46 Eliminate Extra Help - PRCP (600,000) (7,821,197) 47 ED-Eliminate new Zoom Prospector software (15,000) (7,806,197) 48 Fund balance (1,000,000) (6,806,197) 49 Move Streetlights to Measure O (404,129) (6,402,068) 50 CDBG fund Homeless shelter move GF money to Measure O (400,000) (6,002,068) 51 Reduce Employee Training & Travel (100,000) (5,902,068) 52 Revenue Enhancements (Cannabis & CC charges) (130,000) (5,772,068) 53 Outside agency reduction (1,000,000) (4,772,068) 54 Hiring Freeze, Layoffs, Separation Incentive (3,500,000) (1,272,068) 55 Forty-hour Employee Furlough (1,272,068) -

Total New Spending Requests - (8,841,614) -

Summary after AdjustmentsNet Revenues 115,498,682$ Net Expenditures (115,498,682)$ Net Balance -$ Page 26 of 36

28

Beginning Unrestricted Fund Balance 15,139,429$ 10,550,501$ 9,550,501$ 6,749,367$ 3,347,229$ (635,787)$ (5,400,056)$

FY 2019-20 Adopted

FY 2020-21 New

FY 2021-22 Forecast

FY 2022-23 Forecast

FY 2023-24 Forecast

FY 2024-25 Forecast

FY 2025-26 Forecast

REVENUES BY CATEGORYProperty Tax 27,307,229 29,400,578 29,400,578 30,414,273 31,462,919 32,547,721 33,669,925 Sales Tax 26,976,105 25,372,510 27,771,230 28,521,053 29,291,121 30,081,982 30,894,195 Utility Tax 7,947,614 7,618,308 7,576,230 7,534,384 7,492,769 7,451,384 7,410,228 Other Taxes 15,466,519 14,108,908 15,737,479 16,119,457 16,510,706 16,911,452 17,321,924 Licenses and Permits 5,289,986 3,944,078 4,347,402 4,750,986 4,881,638 5,015,883 5,153,820 Fines and Forfeitures 3,026,100 3,183,649 3,247,322 3,312,268 3,378,514 3,446,084 3,515,006 Use of Money and Property 1,765,939 1,795,011 1,897,873 2,231,772 2,359,662 2,494,882 2,637,850 Other Agencies 10,540,000 11,088,982 11,088,982 11,518,078 11,963,777 12,426,723 12,907,584 Charges for Services 14,471,371 13,434,589 15,021,400 15,321,828 15,628,265 15,940,830 16,259,646 Other Miscellaneous Revenue 2,143,122 1,781,997 1,781,997 1,830,111 1,879,524 1,930,271 1,982,388 Internal Transfers 1,983,617 1,680,137 1,696,938 1,713,908 1,731,047 1,748,357 1,765,841 Prior Year Resources 2,439,625 2,089,935 675,000 - - - -

TOTAL REVENUES $119,357,227 $115,498,682 $120,242,431 $123,268,116 $126,579,942 $129,995,569 $133,518,407

EXPENDITURES BY CATEGORYPersonnel Services 77,313,840 73,131,055 78,298,785 82,104,499 85,511,839 89,014,298 91,331,080 Services and Supplies 23,272,653 22,468,810 24,040,842 23,726,455 23,882,352 24,240,587 24,604,196 Internal Services 12,860,116 14,772,452 16,184,719 16,346,566 16,673,497 17,006,967 17,347,106 Non-Operating 178,435 160,200 163,116 138,449 142,787 147,298 151,990 Debt Service - 100 1,200 1,200 1,200 1,200 1,200 Capital Outlay 88,000 609,335 - - - - - Reserves & Contingencies 300,000 604,482 602,655 600,839 599,034 597,240 595,456 CIP - Transfers 5,344,183 3,752,248 3,752,248 3,752,248 3,752,248 3,752,248 3,752,248

TOTAL EXPENDITURES $119,357,227 $115,498,682 $123,043,565 $126,670,255 $130,562,957 $134,759,838 $137,783,276

TOTAL SURPLUS/(DEFICIT) $0 $0 ($2,801,134) ($3,402,139) ($3,983,015) ($4,764,270) ($4,264,869)Ending Unrestricted Fund Balance 15,139,429$ 9,550,501$ 6,749,367$ 3,347,229$ (635,787)$ (5,400,056)$ (9,664,925)$

General Fund 5-Year Forecast

Page 27 of 36

29

Measure O Proposed FY 2020-21 Budget

REVENUES BY ACCOUNT CATEGORY BUDGET BALANCE1 Sales Tax 12,165,262 12,165,262 2 Use of Money and Property 117,930 12,283,192 3 Other Miscellaneous Revenue 622,500 12,905,692 4 Prior Year Resources 1,576,973 14,482,665

TOTAL REVENUES $14,482,665 14,482,665

EXPENDITURES BY CATEGORY BUDGET BALANCE5 Personnel Services 5,719,845 8,762,820 6 Overtime 350,000 8,412,820

Subtotal Personnel Services 6,069,845 8,412,820 7 Services and Supplies 5,289,020 3,123,800 8 Internal Services 346,666 2,777,134 9 Capital Outlay 2,627,134 150,000

10 Reserves & Contingencies 150,000 - TOTAL EXPENDITURES $14,482,665 -

Significant Changes AmountTransfer subsidy to Lighting District from General Fund 01 404,129 Transfer cost of PRCP tree trimming from General Fund 01 400,000 Transfer cost of homelessness to CDBG Fund 32 (400,000) Transfer cost of Historic Preservation Committee training from General Fund 01 25,000 Transfer cost of PPE study from General Fund 01 60,000 Transfer cost of Stormwater study from General 01 100,000 Total transfers to Measure O $589,129

Page 28 of 36

30

Beginning Fund Balance 5,240,713$ 3,663,740$ 3,663,740$ 3,663,740$ 3,663,740$ FY 2020-21 FY 2021-22 FY 2022-23 FY2023-24 FY 2024-25

REVENUES BY CATEGORYSales Tax (1) 12,165,262 12,407,000$ 12,692,000$ 12,976,000$ 13,261,000$ Use of Money and Property (2) 117,930 119,109$ 120,300$ 121,503$ 122,718$ Other Miscellaneous Revenue (3) 622,500 622,500$ 622,500$ 622,500$ 622,500$ Prior Year Resources 1,576,973 -$ -$ -$ -$

Total Revenue $14,482,665 $13,148,609 $13,434,800 $13,720,003 $14,006,218

EXPENDITURES BY CATEGORYPersonnel Services (4) 6,069,845$ 6,191,242$ 6,315,067$ 6,441,368$ 6,570,195$ Services and Supplies (5) 5,289,020$ 5,341,910$ 5,395,329$ 5,449,283$ 5,503,775$ Internal Services (6) 346,666$ 346,666$ 346,666$ 346,666$ 346,666$ Capital Outlay (7) 2,627,134$ 1,118,791$ 1,227,738$ 1,332,687$ 1,435,582$ Reserves & Contingencies (8) 150,000$ 150,000$ 150,000$ 150,000$ 150,000$

Total Expenditures $14,482,665 $13,148,609 $13,434,800 $13,720,003 $14,006,218

Surplus/(Deficit) $0 $0 $0 $0 $0Ending Fund Balance 3,663,740$ 3,663,740$ 3,663,740$ 3,663,740$ 3,663,740$

Measure O Five Year Financial Outlook-Fiscal Year 2020-21 thorough 2024-25

Page 29 of 36

31

30.4 29.0 30.5 29.3

37.1 38.8 37.8

20.1 21.521.9 22.6

23.623.4 23.4

M

10M

20M

30M

40M

50M

60M

70M

FY 2014-15

FY 2015-16

FY 2016-17

FY 2017-18

FY 2018-19

FY 2019-20A

FY 2020-21P

Ventura Water Expenditures

Water Wastewater

Page 30 of 36

32

FY 2020-21PROPOSED BUDGET

CAPITAL APPROPRIATIONS AND SPENDING PLAN SUMMARY

Fund Fund DescriptionCurrent CIP

AppropriationsTotal

Spent YTD (5/28/20)

Available Appropriations

FY 2020-21 Appropriation Adjustments

FY 2020-21 NEW Total

Appropriations

FY 2020-21 Spending Plan

02 GENERAL & CATEGORICAL GRANT PROGRAM 664,400 191,178 473,222 - 664,400 100,000

04 CAPITAL IMPROVEMENT 4,556,026 1,291,711 3,264,315 586,525 5,142,551 2,159,225

05 MEASURE O-TRANSACTION AND USE TAX 10,470,018 5,771,983 4,698,035 661,553 11,131,571 2,927,134

06 TDA ART8C & ART4 PROGRAM 103,611 36,490 67,121 - 103,611 -

10 TRANSPORTATION 16,484,989 5,022,066 11,462,923 - 16,484,989 1,804,102

12 GAS TAX 26,334,802 12,945,147 13,389,655 3,927,911 30,262,713 8,801,833

18 PARK & REC CAPITAL IMPROV 4,931,705 1,248,678 3,683,027 912,166 5,843,871 2,793,200

19 PUBLIC ART PROGRAM 132,462 14,679 117,783 - 132,462 -

30 DOWNTOWN PARKING DISTRICT - - - 299,800 299,800 275,000

61 INFORMATION TECHNOLOGY ISF - - - 150,000 150,000 150,000

71 WASTEWATER CAPITAL 59,201,678 22,660,065 36,541,613 1,108,425- 58,093,253 16,713,745

72 WATER CAPITAL 88,636,000 22,054,174 66,581,826 7,246,000 95,882,000 20,149,443

Total 211,515,691 71,236,172 140,279,520 12,675,530 224,191,221 55,873,682

Page 31 of 36

33

FY 2020-21PROPOSED BUDGET

CAPITAL APPROPRIATIONS AND SPENDING PLAN DETAILS

Fund/Project

No.Fund Description/Project Title

Current CIPAppropriations

Total Spent YTD (5/28/20)

Available Appropriations

FY 2020-21 Appropriation Adjustments

FY 2020-21 NEW Total

Appropriations

FY 2020-21 Spending Plan

02 GENERAL & CATEGORICAL GRANT PROGRAM

90603 WELLS CENTER BUS STOP UPGRADE 309,400 54,826 254,574 309,400 - 93960 SURFERS POINT - PHASE II 355,000 136,352 218,648 355,000 100,000

02 GENERAL & CATEGORICAL GRANT PROGRAM 664,400 191,178 473,222 0 664,400 100,000 04 CAPITAL IMPROVEMENT

93014 CEMETERY MEMORIAL PARK IMPROVEMENTS 533,924 509,606 24,318 533,92493061 PIER CORROSION REPAIRS 629,900 50,782 579,118 629,900 569,900 93063 HALL CANYON CHANNEL DRAINAGE IMPROVEMENTS 132,000 0 132,000 184,525 316,525 316,525 93064 PIER ELECTRICAL AND LIGHTING INFRASTRUCTURE REPL 350,000 0 350,000 350,000 52,800 93065 MAINTENANCE YARD BUILDING INFRASTRUCTURE REPAIR 193,500 0 193,500 193,500 158,000 93066 PIERPONT NEIGHBORHOOD STORM WATER LIFT STATIONS 100,000 77,858 22,142 100,00093067 POLICE/FIRE HQ LOCKER ROOM RENOVATION 750,000 31,111 718,889 750,000 660,000 93710 FIRE STATION #7 1,866,702 622,355 1,244,347 1,866,702NEW City Hall Terra Cotta Maintenance 0 402,000 402,000 402,000

04 CAPITAL IMPROVEMENT 4,556,026 1,291,711 3,264,315 586,525 5,142,551 2,159,225 05 MEASURE O-TRANSACTION AND USE TAX

69005 HARBOR/OLIVAS PK DR STORM DRAIN REPLACEMENT 69,025 24,845 44,180 69,02569006 HALL CANYON CHANNEL DRAINAGE IMPROVEMENTS 830,975 131,013 699,962 184,525 1,015,500 721,857 69008 COASTAL SHORELINE PRESERVATION 300,000 35,851 264,149 300,000 100,000 69010 BARRANCA VISTA CENTER REPAIRS/REFURBISHMENT 701,166 130,659 570,507 701,166 100,000 69011 CITY HALL TERRA COTTA MAINTENANCE 438,000 151,797 286,203 402,000 840,000 86,058 69012 ARROYO VERDE PARK MIDDLE RESTROOM REPLACEMENT 10,834 10,834 0 10,83469015 DOWNTOWN AND WELLNESS DIST SIDEWALK REPAIR/ADA 1,550,000 712,686 837,314 1,550,000 838,829 69016 STREET RESURFACING TELEPHONE RD, MAIN TO MCGRATH 895,000 870,321 24,679 895,00069018 STREET RESURFACING-PETIT AVE-TELEPHONE TO NORTHBANK 550,000 548,717 1,283 550,00069019 STREET RESURFACING-TELEGRAPH RD-MAIN TO MILLS 1,650,000 1,664,630 (14,630) 1,650,00069021 STREET RESURFACING-PORTOLA RD-TELEPHONE TO RALSTON 150,018 149,363 655 150,01869023 TRAFFIC SIGNAL SYSTEM UPGRADE 800,000 582,087 217,913 800,000 247,277 69025 EASTSIDE SIDEWALK - ADA IMPROVEMENTS 700,000 371,278 328,722 700,00069026 STREET RESURFACING - OLIVAS PARK, VICTORIA-GOLF COURSE DR. 5,000 0 5,000 5,00069028 STREET RESURFACING - PORTOLA ROAD, TELEPHONE TO THILLE 250,000 241,794 8,206 250,00069029 MAIN STREET AT BORCHARD INTERSECTION IMPROVEMENTS 130,000 0 130,000 130,00069030 PIERPONT NEIGHBORHOOD STORM WATER LIFT STATIONS 740,000 83,533 656,467 740,000 194,478 69035 WESTSIDE SIDEWALKS AND ADA ACCESS 700,000 62,574 637,426 700,000 563,607 69022 PROTECT AND SEISMICALLY IMPROVE BRIDGES 0 0 0 75,028 75,028 75,028

05 MEASURE O-TRANSACTION AND USE TAX 10,470,018 5,771,983 4,698,035 661,553 11,131,571 2,927,134 06 TDA ART8C & ART4 PROGRAM

90604 WELLS CENTER BUS STOP UPGRADE 103,611 36,490 67,121 103,611

06 TDA ART8C & ART4 PROGRAM 103,611 36,490 67,121 0 103,611 - 10 TRANSPORTATION

91049 OLIVAS LEVEE 1,448,265 790,537 657,728 1,448,26591052 STREET RESURFACING - JOHNSON DR. - TELEPHONE TO BRISTOL 1,260,000 98,950 1,161,050 1,260,000 1,142,000 91053 STREET RESURFACING - NORTH BANK DR. - BRISTOL TO PETIT 739,270 728,248 11,022 739,27091054 STREET RESURFACING - HARBOR BLVD. - CALIFORNIA TO SANJON 575,000 34 574,966 (575,000) 091056 STREET RESURFACING - W. MAIN ST. - VENTURA AVE. TO BRIDGE 700,000 605,246 94,754 700,00091084 Mission Park - Main Street Frontage Improvements 0 2,538 (2,538) 091019 OLIVAS PARK DR EXTENSION 11,762,454 2,796,513 8,965,941 11,762,454 87,102 91083 Street Resurfacing-Northbank, Ventura Blvd to Johnson 0 575,000 575,000 575,000

10 TRANSPORTATION 16,484,989 5,022,066 11,462,923 0 16,484,989 1,804,102 12 GAS TAX

91027 VENTURA RIVER TRAIL - SHERIDAN WAY BIKE PATH LINK 250,000 34,246 215,754 100,000 350,000 292,000 91032 TELEGRAPH RD - ANACAPA MIDDLE SCHOOL SRTS - 2011 2,824,281 2,540,813 283,468 2,824,28191036 US 101 - OAK STREET OFFRAMP 1,264,390 951,057 313,333 1,264,390 250,000 91044 STREET RESURFACING - LOMA VISTA - MAIN ST TO MILLS 1,078,889 1,078,889 (0) 1,078,88991060 MAIN STREET BRIDGE REPLACEMENT 900,000 112,484 787,516 900,000 233,333 91062 STANLEY AVENUE/HWY. 33 INTERCHANGE IMPROVEMENT 2,016,801 1,269 2,015,532 2,016,80191064 STREET RESURFACING-JOHNSON DR (BRISTOL TO HWY 101) 1,815,615 1,677,851 137,764 1,815,61591065 STREET RESURFACING-ALESSANDRO-SEAWARD TO END 120,800 3 120,798 120,80091066 STREET RESURFACING-PORTOLA RD-TELEPHONE TO RALSTON 615,911 568,641 47,270 615,911

Page 32 of 36 34

FY 2020-21PROPOSED BUDGET

CAPITAL APPROPRIATIONS AND SPENDING PLAN DETAILS

Fund/Project

No.Fund Description/Project Title

Current CIPAppropriations

Total Spent YTD (5/28/20)

Available Appropriations

FY 2020-21 Appropriation Adjustments

FY 2020-21 NEW Total

Appropriations

FY 2020-21 Spending Plan

91067 STREET RESURFACING-2019 SLURRY SEAL/CAPE SEAL 792,971 704,160 88,811 792,97191068 STREET RESURFACING-2020 SLURRY SEAL/CAPE SEAL 1,000,000 892,454 107,546 1,000,00091069 STREET RESURFACING-TELEPHONE RD, PARTRIDGE TO RAMELLI 1,270,900 72,568 1,198,332 990,100 2,261,000 1,806,000 91070 MONTALVO SAFE ROUTE TO SCHOOL IMPR 422,000 214,379 207,621 1,168,000 1,590,000 1,290,000 91071 HAMON BARRANCA BIKE PATH CORRIDOR 25,000 28,050 (3,050) 482,000 507,000 440,000 91072 STREET RESURFACING - OLIVAS PARK, VICTORIA TO GOLF COURSE DR 329,000 0 329,000 329,00091073 STREET RESURFACING-VICTORIA,TELEPHONE TO HWY 126 1,802,151 79,702 1,722,449 1,802,15191074 STREET RESURFACING-RALSTON, PORTOLA TO VICTORIA 1,285,000 118,317 1,166,683 1,285,00091075 STREET RESURFACING-TELEPHONE RD, VICTORIA TO PARTRIDGE 1,270,900 86,866 1,184,034 629,100 1,900,000 1,755,000 91076 STREET RESURFACING TELEPHONE RD, MAIN TO MCGRATH 326,225 326,516 (291) 326,22591077 STREET RESURFACING-TELEPHONE, SARATOGA TO VICTORIA 1,067,000 98,818 968,182 295,000 1,362,000 1,142,000 91078 STREET RESURFACING-WALKER/MOON DR., DOWELL TO VICTORIA 1,260,000 95,764 1,164,236 1,260,000 1,140,000 91079 STREET RESURFACING TELEGRAPH RD-MAIN TO MILLS 157,398 60,482 96,916 157,39891894 CALIFORNIA ST BRIDGE UPGRADE 2,655,411 2,604,227 51,184 2,655,41191915 NORTHBANK EXT-CABRILLO VILLAGE 50,000 22,727 27,273 50,00091954 HWY 126 BIKE PATH-PHASE III 1,000,094 229,522 770,572 1,000,09491017 HARBOR/VISTA DEL MAR IMPROVEMENTS 268,500 82,203 186,297 113,711 382,211 303,500 91979 TRAFFIC SIGNAL INFRASTRUCTURE MODERNIZATION 465,565 263,138 202,427 465,56591080 Street Resurfacing - Victoria Ave., Telephone to Ralston (SB1) 0 80,000 80,000 80,000 91082 Street Resurfacing - Valentine Rd., Telephone to Palma 0 70,000 70,000 70,000

12 GAS TAX 26,334,802 12,945,147 13,389,655 3,927,911 30,262,713 8,801,833 18 PARK & REC CAPITAL IMPROV

92901 WESTSIDE COMMUNITY POOL 2,000,000 614,852 1,385,148 2,000,00092906 COMM PARK ENERGY SAVINGS IMPROVEMENTS 648,671 500,920 147,751 648,67192916 COMMUNITY PARK 2ND ENTRANCE, RAMELLI/TELEPHONE 1,048,000 99,582 948,418 467,200 1,515,200 1,374,200 92917 WESTPARK - PORTLAND LOO RESTROOMS 140,000 29,447 110,553 140,00092918 ARROYO VERDE PARK PLAYGROUND REBUILD 1,095,034 3,877 1,091,157 (2,034) 1,093,000 972,000 92920 Community Park Softball Field No. 5 Lights 447,000 447,000 447,000

18 PARK & REC CAPITAL IMPROV 4,931,705 1,248,678 3,683,027 912,166 5,843,871 2,793,200 19 PUBLIC ART PROGRAM

98167 PUBLIC ART - BEACHFRONT PROMENADE 5,000 2,179 2,821 5,00098192 PUBLIC ART-WELLS NEIGHBORHOOD PARK 65,462 501 64,961 65,46298198 PUBLIC ART - BARRANCA VISTA CENTER 62,000 11,999 50,001 62,000

19 PUBLIC ART PROGRAM 132,462 14,679 117,783 0 132,462 - 30 DOWNTOWN PARKING DISTRICT

91084 Mission Park - Main Street Frontage Improvements 0 0 299,800 299,800 275,000

30 DOWNTOWN PARKING DISTRICT 0 0 0 299,800 299,800 275,000 61 INFORMATION TECHNOLOGY ISF

97000 Enterprise Resource Planning System (ERP) 0 0 150,000 150,000 150,000

61 INFORMATION TECHNOLOGY ISF 0 0 0 150,000 150,000 150,000 71 WASTEWATER CAPITAL

96874 WASTEWATER PLANT - TERTIARY FILTER REPL 640,000 33,674 606,326 810,000 1,450,000 1,100,000 96884 WASTEWATER PLANT - EFFICIENCY LANDSCAPE IMPROVEMENTS 400,300 365,405 34,895 400,30096894 WASTEWATER PLANT- MAINTENANCE STORAGE BLDG 2,420,000 200,748 2,219,252 2,420,00096918 WASTEWATER PLANT - DIGESTER IMPROVEMENT 10,121,904 5,602,946 4,518,958 (142,329) 9,979,575 5,499,745 96919 WASTEWATER LIFT STATION - NORTH BANK LIFT STATION UPGRADES 1,780,000 1,550,570 229,430 1,780,00096920 SEWERLINE REPLACEMENT - FRONT STREET (HEMLOCK TO ASH) 682,284 681,184 1,100 682,28496922 TRANSFER STATION - SEASIDE LAND ACQUISITION 800,000 44,254 755,746 760,000 1,560,000 1,500,000 96927 OLIVAS RECLAIMED WATER MAIN 1,018,096 42,632 975,464 (968,096) 50,00096928 WASTEWATER PLANT - AERATION BLOWERS 8,224,875 862,402 7,362,473 8,224,875 4,700,000 96930 WASTEWATER PLANT - HEADWORKS BUILDING DEMOLITION 454,700 270,538 184,162 454,70096934 SEWERLINE REPLACMENT -SEASIDE WASTEWATER FORCE MAIN 11,870,000 7,045,191 4,824,809 11,870,00096935 ADVANCED WASTEWATER TREATMENT PLANT LAND ACQU 650,000 11,249 638,751 650,000 200,000 96936 WASTEWATER PLANT - PRIMARY TREATMENT ENHANCEMENT 65,000 212 64,788 65,00096937 SEWERLINE REPLACEMENT - EASTMAN AVENUE 2,750,000 235,900 2,514,100 2,750,00096938 BRINE LINE OCEAN OUTFALL 1,903,060 479,793 1,423,267 1,903,060 750,000 96939 WASTEWATER PLANT - WETLANDS IMPROVEMENTS 1,068,959 325,668 743,291 1,068,95996940 RECYCLED WATERLINE - PUREWATER PIPELINES 750,000 3,613 746,387 440,000 1,190,000 950,000 96941 SEWERLINE REPLACEMENT - ANN STREET 2,560,000 2,117,663 442,337 2,560,00096943 WASTEWATER PLANT - SECURITY FENCE 262,500 57,921 204,579 262,50096944 WASTEWATER - SEASIDE TRANSFER STATION IMPROVEMENTS 5,740,000 606 5,739,394 (1,984,000) 3,756,000 15,000

Page 33 of 36 35

FY 2020-21PROPOSED BUDGET

CAPITAL APPROPRIATIONS AND SPENDING PLAN DETAILS

Fund/Project

No.Fund Description/Project Title

Current CIPAppropriations

Total Spent YTD (5/28/20)

Available Appropriations

FY 2020-21 Appropriation Adjustments

FY 2020-21 NEW Total

Appropriations

FY 2020-21 Spending Plan

96945 WASTEWATER PLANT - ADVANCED TREATMENT POTABLE REUSE 3,560,000 2,399,106 1,160,894 3,560,000 1,450,000 96946 SEWERLINE REPLACEMENT - PALMA/HARBOR 100,000 34,158 65,842 (40,000) 60,000 10,000 96947 HARBOR FORE MAIN - SAN PEDRO TO FIGUEROA 650,000 141,690 508,310 350,000 1,000,000 450,000 96948 SEWERLINE REPLACEMENT - HWY 101 TO NORTHBANK 330,000 212 329,788 (260,000) 70,000 69,000 96949 SEWERLINE REPLACEMENT - BRISTOL LINE 100,000 57,154 42,846 100,00096950 SEWERLINE REPLACEMENT - NAVIGATOR/HARBOR 100,000 25,824 74,176 100,00096951 SEWERLINE REPLACEMENT - ALLEY/MILLS TO EMPIRE 100,000 21,826 78,174 (35,000) 65,000 10,000 96952 SEWERLINE REPLACEMENT-S. VICTORIA AVE 100,000 47,925 52,075 (39,000) 61,000 10,000

71 WASTEWATER CAPITAL 59,201,678 22,660,065 36,541,613 (1,108,425) 58,093,253 16,713,745 72 WATER CAPITAL

97896 GOLF COURSE BPS & WELLS UPGRADE 1,970,000 36,768 1,933,232 (1,533,000) 437,000 250,000 97904 FOSTER PARK WELLFIELD PRODUCTION RESTORATION 3,250,000 11,569 3,238,431 3,250,00097907 MOUND WELL 2 5,875,000 871,371 5,003,629 5,875,000 1,715,000 97934 TREATMENT-OXNARD PLAIN AQUIFER STORAGE 2,800,000 66,780 2,733,220 2,800,000 700,000 97938 AUTOMATED METER READING INSTALLATION 17,000,000 9,887,602 7,112,398 17,000,000 5,500,000 97941 WATERLINE REPLACEMENT - PIERPONT LANES 1,560,000 293,254 1,266,746 180,000 1,740,000 1,430,000 97942 TREATMENT - AVENUE PLANT MEMBRANE MODULE REPL 2,940,000 1,250,356 1,689,644 2,940,00097945 WELL - REPAIR AND RESTORATION OF INTAKE STRUCTURE 785,000 108,087 676,913 505,000 1,290,000 250,000 97948 WATERLINE REPLACEMENT - ONDULANDO PHASE 4 2,730,000 2,500,597 229,403 2,730,00097949 STATE WATER PROJECT INTERCONNECTION 3,900,000 759,439 3,140,561 3,900,000 1,810,000 97950 OLIVAS POTABLE WATER MAIN 1,840,000 60,775 1,779,225 1,840,000 20,000 97951 WELL - MOUND WELL 3 5,400,000 2,057,601 3,342,399 815,000 6,215,000 2,140,000 97953 PUMP STATION - SEAWARD/POLI UPGRADE 1,250,000 504,933 745,067 1,250,00097954 WATERLINE REPLACEMENT - HARBOR - PENINSULA TO BEACH 1,036,000 279,579 756,421 1,036,00097955 WATERLINE - MIDTOWN TO WESTSIDE INTERCONNECTION 13,400,000 586,542 12,813,458 (2,800,000) 10,600,000 166,000 97956 WATERLINE - EASTSIDE TO MIDTOWN INTERCONNECTION 3,950,000 208,799 3,741,201 130,000 4,080,000 380,000 97957 MARIANO WATER RESERVOIRS REPLACEMENT 1,935,000 1,801,839 133,161 1,935,00097958 WATER WELL - SATICOY WELL #4 5,100,000 397 5,099,603 5,100,000 110,000 97959 WATER TREATMENT - SATICOY COND FAC UPGRADE 3,550,000 0 3,550,000 3,550,00097960 TREATMENT - BAILEY PLANT MOD 555,000 5,614 549,386 95,000 650,00097961 WATERLINE REPLACEMENT - MAIN ST/VALENTINE AVE 300,000 60,363 239,637 970,000 1,270,000 500,000 97962 WATERLINE REPLACEMENT - ALLEY,WELLS TO CAMPANULA 350,000 95,842 254,158 2,160,000 2,510,000 1,199,000 97963 WELL - SATICOY COUNTRY CLUB WELL NO. 2 REHAB 500,000 0 500,000 310,000 810,000 145,000 97964 WELL - VICTORIA WELL NO. 3 150,000 0 150,000 150,000 25,000 97965 TREATMENT - STATE WATER BLENDING STATION 1,360,000 63,752 1,296,248 1,360,000 290,000 97966 PUMP STATION - KALORAMA REPL 390,000 0 390,000 1,308,000 1,698,000 312,000 97967 PUMP STATION - 210/260 BOUNDARY ADJ 1,500,000 0 1,500,000 1,500,000 60,000 97968 EMERGENCY GENERATORS - VARIOUS SITES 1,900,000 460,153 1,439,847 1,900,000 1,270,000 97969 EMERGENCY GENERATORS - SATICOY COUNTRY CLUB 800,000 46,334 753,666 800,000 537,443 97970 WATERLINE REPLACEMENT - INEZ STREET 200,000 16,325 183,675 200,00097977 ABADONMENT OF VIC WELL #1 260,000 19,505 240,495 260,00097978 Pump Station Relocate Day Road BPS to Bailey 100,000 0 100,000 100,00097971 Pump Station - Ventura Water Pure 0 0 0 375,000 375,000 75,000 97972 Pump Station - Relocate Day Rd BPS to Bailey 0 0 0 2,000,000 2,000,000 150,000 97973 SCADA Improvements 0 0 0 571,000 571,000 55,000 97974 Waterline - Abandon 8-inch Bike Path Lane 0 0 0 1,260,000 1,260,000 160,000 97975 Tank - 860 Zone Storage 0 0 0 100,000 100,000 100,000 97976 enQuesta 0 0 0 800,000 800,000 800,000

72 WATER CAPITAL 88,636,000 22,054,174 66,581,826 7,246,000 95,882,000 20,149,443

GRAND TOTAL 211,515,691 71,236,172 140,279,520 12,675,530 224,191,221 55,873,682

Page 34 of 36

36

FY 2020-21 PROPOSED BUDGETChanges by Fund

2019-20 2020-21Fund Fund Name Adopted Change Proposed % Change Comments

01 GENERAL 119,357,227 (3,858,545) 115,498,682 -3.2%02 GENERAL & CATEGORICAL GRANT PROGRAM 1,943,220 145,652 2,088,872 7.5%04 CAPITAL IMPROVEMENT 1,490,300 668,925 2,159,225 44.9% Increase due to updated CIP Spending Plan

05 MEASURE O-TRANSACTION AND USE TAX 23,234,000 (8,581,825) 14,652,175 -36.9% COVID-19 effect and no use of prior resources

06 TDA ART8C & ART4 PROGRAM 272,669 - 272,669 0.0%07 TDA ART3 PROGRAM 85,000 (25,000) 60,000 -29.4% Decrease due to updated CIP Spending Plan

10 TRANSPORTATION 1,862,000 1,005,000 2,867,000 54.0% Increase due to updated CIP Spending Plan

12 GAS TAX 12,441,740 (3,205,907) 9,235,833 -25.8% Decrease due to updated CIP Spending Plan

14 SUPPLEMENTAL LAW ENFORCEMENT 239,735 (1,789) 237,946 -0.7%15 LAW ENFORCEMENT 60,026 (30,000) 30,026 -50.0% Updated spending plan and no use of prior

resources18 PARK & REC CAPITAL IMPROV 1,340,800 1,452,400 2,793,200 108.3% Increase due to updated CIP Spending Plan

19 PUBLIC ART PROGRAM 109,500 (65,000) 44,500 -59.4% Decrease due to updated CIP Spending Plan

21 DEBT SERVICE OBLIGATION 2,093,995 3,993 2,097,988 0.2%23 DEBT SERVICE FUND-PARKING STRUCTURE 598,131 (6,131) 592,000 -1.0%30 DOWNTOWN PARKING DISTRICT 1,231,000 173,387 1,404,387 14.1% Increase due to updated CIP Spending Plan

32 HCDA-ACT OF 1974 PROGRAM 1,333,333 279,429 1,612,762 21.0% Anticipated increase for Homelessness program. Fund will be adjusted when Council adopts the Annual Action and Funding Plan

40 MAINTENANCE ASSMT DISTRICTS 769,035 34,402 803,437 4.5%42 STREET LIGHTING DISTRICT 1,280,755 309 1,281,064 0.0%45 PROPERTY BASED IMPROVEMENT DISTRICT (PBID) 446,000 514,599 960,599 115.4% Increase due to expanded PBID boundary

51 WASTEWATER OPERATIONS 23,440,355 (10,589) 23,429,766 0.0%52 WATER OPERATIONS 38,798,028 (995,474) 37,802,554 -2.6%61 INFORMATION TECHNOLOGY ISF 5,144,549 1,979,726 7,124,275 38.5% Increase due to new FTEs and capital

projects64 FLEET MAINTENANCE ISF 6,298,819 (49,667) 6,249,152 -0.8%65 FACILITIES MAINTENANCE ISF 4,367,235 154,788 4,522,023 3.5%66 DIGITAL PUBLISHING ISF 426,756 3,624 430,380 0.8%67 WORKERS COMPENSATION ISF 3,264,950 52,794 3,317,744 1.6%68 EMPLOYEE BENEFITS ISF 1,605,237 21,439 1,626,676 1.3%69 PUBLIC LIABILITY ISF 3,885,301 329,552 4,214,853 8.5%71 WASTEWATER CAPITAL 19,693,500 (779,755) 18,913,745 -4.0%72 WATER CAPITAL 19,940,500 208,943 20,149,443 1.0%75 ESTUARY PROTECTION 2,270,000 130,000 2,400,000 5.7%85 REDEVELOPMENT OBLIGATION RETIREMENT 1,816,271 (56,555) 1,759,716 -3.1%86 SUCCESSOR AGENCY ADMINISTRATION 250,000 (104,720) 145,280 -41.9% Fund has been updated to reflect reduced

anticipated expenditures for program administration

87 SUCCESSOR HOUSING AGENCY 74,256 1,602 75,858 2.2%301,464,223 (10,610,393) 290,853,830 -3.5%CITY TOTAL

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Authorized FTEs by Fiscal Year

Department FY 2018-19 FY 2019-20FY 2020-21

Proposed VarianceCity Manager Department 10.0 14.0 17.0 3.0 City Attorney Department 9.0 9.0 9.0 - Human Resources Department 11.0 11.0 11.0 - Finance and Technology Department 48.0 49.0 48.0 (1.0) Community Development 42.0 41.0 42.0 1.0 Parks, Recreation and Community Partnerships 58.5 57.5 56.5 (1.0) Police Department 186.0 192.0 191.0 (1.0) Fire Department 87.0 87.0 87.0 - Public Works 91.0 91.0 90.0 (1.0) Ventura Water 108.0 108.0 108.0 - Total Citywide FTEs* 650.5 659.5 659.5 -

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