CCMIN 06012021 - Laserfiche WebLink

expenses, respectively. She noted both are slightly below the 25% goal but well above the minimum goal of 20%. Director of Finance Olson presented a graph of the City's pension contributions, noting it rises slowly up to a peak of $28.2 million in 2030 until the City's unfunded obligations are fully paid off in 2047 for $8.9 million. She advised getting to 2030 is part of the City's continued financial challenge. She reported the General Fund is projected to balance through FY 26/27 until a projected loss of $2.3 million in FY 28/29, driven by increased pension expenses and the draining of the Rainy Day Fund, followed by a projected $2 million surplus in FY 30/31 as the pension obligations begin to decline. Director of Finance Olson detailed the Water Operating Budget stating the City is intentionally drawing down some of the balance to transfer to the CIP. She advised the projection is for a balance of 31% of operating expenses in FY 21/22 and 24% in FY 22/23 which could require rate increases or an adjustment of expenses. She projects revenue and expense increases from Zone 7 adding to the City's budget. She reported the Sewer Operating Budget is mostly static including reductions in the fund balance as a percentage of operating expenses down to 47% in FY 21/22 and 40% in FY 22/23. She reported the target is 35% for both budgets. She noted 61% of a customer's sewer bill is Dublin San Ramon Services District (DSRSD) regional fees. Director of Finance Olson reported on the Golf Course Operating Budget and noted play has recovered in the second half of the pandemic and she expects this trend to continue. She projected net income for FY 21/22 at $154,019. Director of Finance Olson detailed the Cemetery Operating Budget noting revenues are projected to increase by 21% due to fee increases with expenditures being projected to increase by 48% due to contract services increases. She reported a projected loss of$9,156 for FY 21/22. In response to Councilmember Balch's inquiries, Director of Finance Olson clarified the projected increase in Worker's Compensation is based on actuarial analysis. In response to Councilmember Balch's inquiries, Director of Finance Olson clarified there has been a large increase in water consumption since 2017 but they are now projecting the level as being flat. She explained there could be different usage levels by the mid-year update if residents adhere to voluntary reductions. She confirmed the budget does not assume drought rates will be put in place. In response to Councilmember Balch's inquiry, Director of Finance Olson clarified the anticipated reduction in electricity costs is based upon current trends. Councilmember Balch requested a reexamination of electricity costs before the next meeting in light of the City Council adopting the East Bay Community Energy (ECBE) Renewable 100 for a local base carrying a 1% cost increase. In response to Councilmember Balch's inquiries, Director of Finance Olson explained the anticipated redevelopment of the Stoneridge Shopping Center area is where she is forecasting some of her tax- related increases to help counter-balance the peak pension payment years. She confirmed the Section 115 Trust Fund should be sufficient to help bridge the anticipated pension-related gap in 2028 without reducing services. City Manager Fialho explained no one can predict a pandemic. He reported the disciplined budgeting method for CIP funds provides a buffer of$10 million. He advised the buffer saved the City during both the recession and the pandemic. He advised there is also the Section 115 Trust Fund, Rainy Day Fund, and General Fund Reserves to help navigate through the future. Director of Finance Olson added the 10-year forecast assumes the City completely drew down the Rainy Day Fund. City Council Minutes Page 7 of 10 June 1, 2021