CITY OF MENLO PARK

PROPOSED BUDGET

FISCAL YEAR 2014-15

Budget Overview

• Staff presentation of Proposed Budget

• Hold a Public Hearing and take testimony

• Close Public Hearing

• Take questions from City Council

• Make motions to amend the proposed budget, if necessary

• Staff to return on June 17th with budget adoption and related actions

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Expectations of tonight:

Budget Overview

• Adheres to the City Council’s adopted Budget Principles

• Funds the City Council’s adopted goals

• Has been completely retooled and reformatted for easier reading and understanding

• Responds to the local economic conditions

3

The Proposed 2014-15 Budget:

Budget Overview

Total Budget: $72.1 million

General Fund: $46.5 million

Water Operations: $8.1 million

Capital Improvement Program: $6.9 million

Other Miscellaneous Funds Total: $10.6 million

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The numbers:

Budget Overview

• Total FTE = 237.5• Up by a net of 6.75

• Addresses the City Council goals of:

– Responding to increased development activity

– Increasing community events

– Accelerating work on the City’s Climate Action Plan

5

People and Services:

Budget Overview

• Dynamic Financial Plan

• Challenges

– CalPERS pension costs

– Employee compensation

– Vulnerability in certain revenue streams, including:

• Sales Tax, Utility Users’ Tax, and ERAF rebate

• Opportunities

– Alternative Service Delivery Model

6

2014-15 Citywide Budget

7

47%

23%

12%

4%

11% 3%

Personnel Operating Services

Transfers Projects Debt Service

$72.1 million

2014-15 General Fund Revenues

8

32%

14%9%

2%4%

18%

14%

4% 3%

Property Tax Sales Tax

Transient Occupancy Tax Utility Users Tax

Business License Tax Charges for Services

Fees, Fines, and Forfeitures Other

Use of Assigned Fund Balance

$46.5 million

2014-15 General Fund Expenditures

9

66%

14%

14%

6%

Personnel Operating Services Transfers

$46.5 million

Next Steps

• Adopt the final budget

– Includes Capital Improvement Program

• Establish the appropriations limit

• Affirm the Utility Users’ Tax

– Sustain the 1% tax rate

– Confirm the need to maintain tax

• Approve the salary resolution

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Actions to be taken on June 17th: