City of Irvine - Fiscal Year 2019-21 Proposed Budget

City of Irvine - Fiscal Year 2019-21 Proposed Budget

C I T Y O F I R V I N E , C A L I F O R N I A

2019-2021 BUDGET

PROPOSED C I TY MANAGER ’ S

IRVINE CITY OFFICIALS

Donald P. Wagner Mayor

Christina L. Shea Mayor Pro Tem

Melissa Fox Councilmember

Farrah N. Khan Councilmember

Anthony Kuo Councilmember

City Manager/Director of Orange County Great Park John A. Russo

Assistant City Manager............................................................................ Marianna Marysheva City Attorney.......................................................................................... Jeff Melching City Clerk................................................................................................Molly M. Perry Director of Community Development....................................................Pete Carmichael Director of Community Services............................................................Laurie Hoffman Director of Financial Management & Strategic Planning......................Kristin Griffith Director of Human Resources & Innovation . ........................................Jimmee Medina Director of Public Safety. .......................................................................Mike Hamel Director of Public Works........................................................................Mark Steuer Director of Transportation................ .....................................................Mark Linsenmayer

TABLE OF CONTENTS

FY 2019-21 PROPOSED BUDGET

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FY 2019-21 Proposed Budget

TABLE OF CONTENTS

TABLE OF CONTENTS

City Manager’s Budget Message ............................................................................................ 9

Staying Fiscally Responsible........................................................................................................................ 11 Strategic Priorities....................................................................................................................................... 14 Investing in the City’s Essential Infrastructure……… ................................................................................... 16 Planning Ahead: Great Park Development ................................................................................................. 17

Introduction ........................................................................................................................ 19

User’s Guide to the Budget......................................................................................................................... 21 Budget Process Summary ........................................................................................................................... 23 City Organizational Chart ............................................................................................................................ 31 General Contacts......................................................................................................................................... 32 Advisory Commissions ................................................................................................................................ 33 Government Finance Officers Association (GFOA) Award.......................................................................... 34 California Society of Municipal Finance Officers (CSMFO) Award.............................................................. 35

Community Profile .............................................................................................................. 37

Revenue and Expenditure Assumptions ............................................................................... 49

Key Indicators.............................................................................................................................................. 52 Revenues..................................................................................................................................................... 55 Expenditures ............................................................................................................................................... 65

Budget Summary................................................................................................................. 73

Department Summaries.............................................................................................................................. 76 General Fund Resources ............................................................................................................................. 80 General Fund Expenditures......................................................................................................................... 81 Charts and Summary Tables ....................................................................................................................... 82

Personnel and Staffing......................................................................................................... 95

Position Increases and Decreases............................................................................................................... 99 Full-Time Personnel by Classification ....................................................................................................... 101

City Manager’s Office .........................................................................................................109

City Council ............................................................................................................................................... 114 City Manager............................................................................................................................................. 117

City Clerk............................................................................................................................121

City Clerk ................................................................................................................................................... 126

FY 2019-21 Proposed Budget

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TABLE OF CONTENTS

Financial Management & Strategic Planning .......................................................................131

Administration .......................................................................................................................................... 136 Fiscal Services............................................................................................................................................ 139 Budget and Strategic Business Planning ................................................................................................... 142 Purchasing................................................................................................................................................. 145

Human Resources & Innovation..........................................................................................149

Human Resources ..................................................................................................................................... 154 Information Technology............................................................................................................................ 158

Community Development...................................................................................................161

Administration .......................................................................................................................................... 166 Building and Safety Services ..................................................................................................................... 169 Neighborhood Services ............................................................................................................................. 172 Planning and Development Services......................................................................................................... 175

Community Services ...........................................................................................................179

Recreation Programs & Special Events ..................................................................................................... 184 Seniors....................................................................................................................................................... 187 Child, Youth & Family................................................................................................................................ 190 Athletics .................................................................................................................................................... 193 Aquatics..................................................................................................................................................... 196 Fine Arts .................................................................................................................................................... 199 Animal Care............................................................................................................................................... 202 Transportation .......................................................................................................................................... 205 Open Space & Agriculture Programs ........................................................................................................ 208 Administration & Business Support Services ............................................................................................ 211

Public Safety ......................................................................................................................215

Administration .......................................................................................................................................... 220 Police Operations...................................................................................................................................... 224 Support Services ....................................................................................................................................... 228

Public Works ......................................................................................................................233

Administration .......................................................................................................................................... 238 Environmental Programs .......................................................................................................................... 241 Development Engineering ........................................................................................................................ 244 Fleet Services ............................................................................................................................................ 247 Landscape Maintenance ........................................................................................................................... 250 Project Management ................................................................................................................................ 253 Signal Maintenance................................................................................................................................... 256 Street and Right-of-Way Maintenance ..................................................................................................... 259 Facilities Maintenance .............................................................................................................................. 262

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FY 2019-21 Proposed Budget

TABLE OF CONTENTS

Transportation ...................................................................................................................265

Administration .......................................................................................................................................... 270 Traffic Management ................................................................................................................................. 273 Transportation Planning & Project Development..................................................................................... 276 Active Transportation Planning ................................................................................................................ 279 Transportation Review & Analysis ............................................................................................................ 282

Non-Departmental .............................................................................................................285

Special Funds......................................................................................................................297

Special Funds Introduction ....................................................................................................................... 301 General Reserve Funds ............................................................................................................................. 305 Special Revenue Funds.............................................................................................................................. 315 Capital Projects Funds............................................................................................................................... 340 Internal Service Funds............................................................................................................................... 357

Capital Improvement Program............................................................................................363

CIP Introduction ........................................................................................................................................ 365 Five Year CIP.............................................................................................................................................. 374 Unfunded CIP Projects .............................................................................................................................. 377 Active CIP Projects .................................................................................................................................... 380 CIP Project Descriptions............................................................................................................................ 389

Strategic Business Plan .......................................................................................................449

Strategic Technology Plan...................................................................................................467

Contracts............................................................................................................................479

Financial Policies ................................................................................................................511

Budget Guidelines ..............................................................................................................521

Glossary .............................................................................................................................537

Acronyms .................................................................................................................................................. 539 Terms ........................................................................................................................................................ 545

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FY 2019-21 Proposed Budget

CITY MANAGER’S BUDGET MESSAGE

FY 2019-21 PROPOSED BUDGET

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FY 2019-21 Proposed Budget

CITY MANAGER BUDGET MESSAGE

TO:

HONORABLE MAYOR AND CITY COUNCIL

FROM:

JOHN A. RUSSO, CITY MANAGER

I am pleased to present to you the City of Irvine’s Proposed Fiscal Year (FY) 2019- 2021 Two-Year Budget and corresponding Proposed Five-Year Strategic Business Plan. The Biennial Budget implements the City Council’s priorities and strategic goals, and provides a long-term financial plan continuing the delivery of outstanding services to the community. The two-year budget in the context of a five-year plan is a completely new process for the City, bringing enhanced fiscal transparency and accountability through greatly increased public participation and

more time for budget deliberations. The Five-Year Plan sets forth the direction of the City with input from employees, the community, businesses, and our commissions, as well as sustains our exceptional level of service and reflects top policy priorities of the City Council. Staying Fiscally Responsible: Addressing Financial Challenges Ahead Irvine has enjoyed robust growth since the recession. Revenues have grown the last five years on average 6 percent, but the revenue growth will taper in the next five years. Furthermore, as the City continues to grow, infrastructure needs and operations continue to expand with the addition of new facilities, staffing, and roadways to meet the needs of the developing community. Deferred maintenance impacts are becoming obvious, and must be appropriately funded. As a result of moderate revenue growth coupled with continued increases in expenditures, which are largely the result of State decisions outside of the City’s control, significant shortfalls are projected for the next five fiscal years in the General Fund.

FY 2019-2024 General Fund Baseline Assumptions

Proposed Budget 2019-2020

Proposed Budget 2020-2021

Forecast 2021-2022

Forecast 2022-2023

Forecast 2023-2024

GENERAL FUND Total Revenues and Transfers-In Total Expenditures and Transfers-Out

203,703,462 216,820,950

208,054,556 224,688,767 (16,634,211)

213,933,682 226,161,027 (12,227,345)

219,550,312 235,922,660 (16,372,348)

226,790,359 239,971,679 (13,181,320)

Baseline Budget Deficit (13,117,488)

FY 2019-21 Proposed Budget

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CITY MANAGER BUDGET MESSAGE

The City of Irvine is proud to be ranked number one in the nation in fiscal strength by Truth in Accounting, and the City’s leadership has spent the last several months working to implement the fiscal discipline required to ensure long-term fiscal sustainability of our great City. The Proposed Biennial Budget is structurally balanced as a result of a collaborative effort of management, employees, business partners, and the community in meeting significant financial challenges initially projected in the five-year forecast. The baseline forecast indicated a General Fund annual shortfall of $12-16 million over the five- year period. To balance the gap with sustainable measures, City management and staff first took steps to tighten our belts, reduce costs, and find more efficient ways to provide services. As a result, expenditure reductions accounted for over $11 million of balancing measures annually. Revenue measures, such as fee increases and reinstating previously approved fees, add up to $2.6 million. The proposed balancing measures are listed below, and reflect the feedback received from residents at four community meetings. These meetings, held throughout the month of March 2019, were the City’s first ever attempt at both informing our constituents about the City’s finances and seeking input on spending priorities before the budget is proposed. We heard the community loud and clear: our residents and businesses want a safe, clean, well maintained City that continues to support our schools. To create a sustainable, structurally balanced, and priority driven budget, we reviewed staffing levels on a case by case basis, proposed reductions in vacancies with remaining staff doing more, shifted existing personnel to high demand areas, and leveraged technology to increase efficiencies. These measures are expected to save the City $2.4 million annually.  Citywide supplies, business expenses, and training expenditures were reviewed and assessed, and efficiencies resulting in cost savings were put in place, saving $0.4 million in General Fund resources annually.  Staff reviewed and renegotiated contracts with vendors and service providers resulting in $2.5 million of annual cost savings.  We have been able to utilize $3.3 million in special funds, such as traditional gas tax funds to address rising landscape maintenance costs for City streetscapes and medians.  Special funds will be utilized for front line law enforcement equipment, supplies, training, and focused enforcement operations, saving $1.1 million in General Fund resources.  We are realigning our budget to more appropriately reflect the actual City staff time dedicated to the newly opened amenities at the Orange County Great Park. Particularly in Community Services, Public Works, Marketing, and Planning, allocating $1 million in General Fund Expenditures to the Great Park thereby faithfully observing the City’s policy that the General Fund should not be used to subsidize the Great Park.  Lastly, just under 10 percent of the City’s annual school funding of over $10 million will be paid by the revenues generated within the Great Park, to account for the schools located in that geographic area (5 out of 42, including the forthcoming Loma Ridge Elementary School). Expenditure measures 

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FY 2019-21 Proposed Budget

CITY MANAGER BUDGET MESSAGE

 To free up Great Park resources necessary to support relevant staff and school expenses, we are proposing to ground the Great Park orange balloon, which is currently costing the taxpayers over $0.6 million annually. Similarly, the Global Village Festival is costing City’s taxpayers over $0.5 million annually and we are proposing to combine the Global Village and Spooktacular events, expanding them to two days. The proposal creates staffing and operational efficiencies along with improved visitor experience, and frees up another day in the Sports Complex which could generate $40,000 in revenue. We are proposing to reinstate the business license registration fee, at $50 annually for the smallest businesses and $70 annually for larger ones (with 5 or more employees). This proposal will generate approximately $1.5 million annually, helping to cover the cost of the program.  We are looking to improve cost recovery for our athletic and aquatic facilities which are highly subsidized. This budget proposes to charge non-profit groups $10-20 per hour for the use of City athletic and aquatic facilities, generating $0.8 million in additional General Fund revenue. With these marginal new fees, department cost recovery is improved and the City still remains competitive with the surrounding communities.  Additionally, with the continued growth of the City’s population, three parking enforcement officers are included to address parking safety generating $0.3 million annually. The above balancing measures will help the City to achieve a balanced biennial budget in FY 2019- 2021, generating surpluses in the last three years when the City’s retirement payments to CalPERS start to decrease. The table below reflects the General Fund financial position with the above measures in place. The surpluses projected for the last three years of the five-year plan give us some room to reward the work of our hard-working, dedicated, talented City employees. Currently, the budget assumes no salary increases for the City’s staff, and labor negotiations are underway. Revenue measures 

FY 2019-2024 Proposed Two-Year Budget and Five-Year Plan

Proposed Budget 2019-2020

Proposed Budget 2020-2021

Forecast 2021-2022

Forecast 2022-2023

Forecast 2023-2024

GENERAL FUND Total Revenues and Transfers-In Total Expenditures and Transfers-Out

206,145,891 205,769,153

211,628,110 211,283,240

217,454,755 214,703,224

223,013,222 220,971,176

230,313,313 226,167,726

Net Revenues and Expenditures

376,738

344,870

2,751,531

2,042,047

4,145,587

FY 2019-21 Proposed Budget

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CITY MANAGER BUDGET MESSAGE

Strategic Priorities The Proposed FY 2019-2021 Two-Year Budget and Five-Year Strategic Financial Plan support the City strategic priorities, stated below.  Maintain high quality essential City services: When budget balancing measures were developed to address the $12-16 million General Fund deficit, City management strived to minimize any major service impacts. Staffing reductions are only proposed to the extent they reduce levels of bureaucracy and lead to more efficiencies. For example, we are eliminating one of two Assistant City Manager positions, with the remaining Assistant carrying the workload of two people; eliminating the Great Park Director position with the City Manager assuming this role; and reducing 5 administrative support positions in the City Manager’s Office. Public Works is eliminating three positions with no service impacts to maintenance operations and several part-time positions are being consolidated in Community Services. The City of Irvine’s commitment to public safety is evidenced by the City’s continual standing as the nation’s safest city. To maintain our current service levels, and our response times within reasonable timeframes, five police officers, one police sergeant, and two civilian positions are added to existing staff in the Proposed FY 2019-20 Budget. Additionally, four more police officers, an additional crime analyst, and an upgrade from a part-time to full-time senior public safety assistant are included in the FY 2020-21 Budget. We are also adding staff in Community Services to operate new community facilities. In the current fiscal year, the City’s 11 th and 12 th community centers, at Los Olivos and Portola, were successfully opened. Planning and design continues for implementation of other Parks Master Plan priorities, including Bommer Canyon Cattle Camp Rehabilitation Project, Heritage Community Park Improvements Master Plan, and Plaza Park Playground and ADA Improvements. Community Services offers resources and activities that support children, youth and families. These programs include Irvine Children’s Health Program, FOR Families, Child Resource Center, Youth development and resiliency programming, the Irvine Child Care Project and parent and child care provider education workshops. To address child care capacity, the Irvine Child Care Project added 500 new school-aged child care slots within the last two years. Recreational activities and programs keep our City’s young people engaged in positive activities, thereby decreasing potential involvement in high-risk activity. Department activities include Mobile Recreation, Youth Action Teams, Middle School Programs, Fine Arts, Aquatics, Youth Athletics and Leaders in Training. ln addition to thriving activities, Park Ambassadors provide valuable oversight functions at parks, City athletic fields and tennis courts to ensure groups use City amenities respectfully and safely.  Enhance City-wide mobility through transportation improvements: The Proposed FY 2019- 21 Budget includes funding for the construction phase of the University Drive Widening (Ridgeline to I-405), signal synchronization at MacArthur Boulevard and Redhill Avenue to

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FY 2019-21 Proposed Budget

CITY MANAGER BUDGET MESSAGE

enhance existing traffic signal flow, and numerous other traffic management measures to improve overall efficiency of our City’s circulation system.

 Maintain the City’s Contingency Reserve at 20 percent: This budget keeps the City’s contingency reserve at the minimum level of 20 percent. This is below the desired level of 25 percent, which will be difficult to achieve in fiscally challenging times. However, keeping the reserve at 20 percent is essential in order to maintain the City’s high credit rating, provide cash flow throughout the year, and have resources in the case of an emergency.  Reduce the City’s unfunded pension liability: Staff continues to implement a plan previously approved by the City Council to pay down the City’s unfunded pension liabilities in order to stabilize future pension cost increases. This Biennial Budget includes $7 million in pension pay-down payments (including a $5 million loan from the Asset Management Plan). The pay down plan will result in a welcome reduction in the City’s pension contribution to CalPERS beginning in FY 2021-22.  Appropriately fund the City’s key infrastructure, such as facilities, streets, vehicles and technology: This Biennial Budget includes several recommended fiscal policies, to reinforce the fiscal discipline and accountability principles under which this City already operates. To take care of the City’s key infrastructure, such as facilities, vehicles, streets and technology, the policies will require a regular comprehensive assessment of the City’s critical assets – based on the new practice utilized by staff to develop this Biennial Budget and Five-Year Financial Plan.  Promote innovation through the effective use of Information Technology solutions to streamline business processes and increase responsiveness to the community: City management continues to promote innovation through the use of effective technology. In the proposed Biennial Budget, funding is included to upgrade and replace the City’s aging permitting system in order to enhance online services and reduce processing times and paper consumption. Also budgeted is an upgrade to the City’s Public Safety Record Management System to integrate information from several systems and provide real-time >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108 Page 109 Page 110 Page 111 Page 112 Page 113 Page 114 Page 115 Page 116 Page 117 Page 118 Page 119 Page 120 Page 121 Page 122 Page 123 Page 124 Page 125 Page 126 Page 127 Page 128 Page 129 Page 130 Page 131 Page 132 Page 133 Page 134 Page 135 Page 136 Page 137 Page 138 Page 139 Page 140 Page 141 Page 142 Page 143 Page 144 Page 145 Page 146 Page 147 Page 148 Page 149 Page 150 Page 151 Page 152 Page 153 Page 154 Page 155 Page 156 Page 157 Page 158 Page 159 Page 160 Page 161 Page 162 Page 163 Page 164 Page 165 Page 166 Page 167 Page 168 Page 169 Page 170 Page 171 Page 172 Page 173 Page 174 Page 175 Page 176 Page 177 Page 178 Page 179 Page 180 Page 181 Page 182 Page 183 Page 184 Page 185 Page 186 Page 187 Page 188 Page 189 Page 190 Page 191 Page 192 Page 193 Page 194 Page 195 Page 196 Page 197 Page 198 Page 199 Page 200

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