2019 MAYOR'S STATE OF THE CITY ADDRESS City of Sierra Madre The - PowerPoint PPT Presentation

2019 MAYOR'S STATE OF THE CITY ADDRESS City of Sierra Madre

The Golden Age of Sierra Madre

Finances City Services Public Safety Library Public Works (Water, Sewer) AGENDA Stewardship Clean Power Alliance The Golden Age of Sierra Madre

State of the City: Fiscal Health • COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) • 2019-2020 FISCAL YEAR BUDGET • FUTURE COSTS AND LIABILITIES

State of the City: Fiscal Health Moorlach Report 200 180 180 160 142 140 120 120 100 97 80 60 40 20 0 2017 2018 2019 2020 Sierra Madre Ranking of Fiscal Soundness (of 482 California Cities)

State of the City: Fiscal Health Moorlach Report $570 SIERRA MADRE SAN MARINO SOUTH AZUSA (414) ARCADIA (430) SAN GABRIEL PASADENA MONROVIA (97) (313) PASADENA (455) (462) (469) $(618) (361) $(929) $(1,437) $(1,661) $(2,050) $(2,510) $(3,145) SIERRA MADRE AND PEER CITIES UNRESTRICTED NET POSITION PER CAPITA

State of the City: Fiscal Health COMPREHENSIVE ANNUAL FINANCIAL REPORT 2018-19: General Fund Reserves of Sewer Fund position Water Fund Infrastructure: $6.9M or 67.6% of GF increased from $240,000 $2.3M in 2020 budget expenditures $5.3M in 2017-19 budgets

State of the City: Fiscal Health BUDGET TOTAL EXPENDITURES OF $22.25M IN FY 19-20 • Reduces spending by $816,000 from FY 18-19 ($23.06M, 3.5% reduction) • Reduces spending by $3,332,000 from 17-18 ($25.58M, 12% reduction) TOTAL GENERAL FUND EXPENDITURES OF $10.2M • Reduces spending by $1.1M from FY 18-19 ($11.3M, 10.3% reduction) GENERAL FUND SURPLUS OF $1.84M (18%) ALL FUNDS SURPLUS OF $2.86M (12.8%)

State of the City: Fiscal Health (Budget) Deficit/Surplus: All Funds FY 15/16 - 19/20 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $- 14-15 15-16 16-17 17-18 18-19 19-20 $(1,000,000) $(2,000,000) $(3,000,000)

State of the City: FURTHER REDUCES ALLOCATIONS/TRANSFERS TO GENERAL FUND FROM UTILITY FUNDS Fiscal Health • Water Allocation to General Fund reduced to $480,300 from $997,000 in FY17-18 (Budget) • Sewer Allocation to General Fund reduced to $128,700 from $304,400 in FY17-18 FURTHER INCREASES IN INFRASTRUCTURE EXPENDITURES IN WATER • Water Fund will invest $2.3M in infrastructure, up from $300,000 total in FY16-17 SECOND CONSECUTIVE YEAR ALL FUNDS ARE BALANCED WITH A SURPLUS

State of the City: Fiscal Health (Future) CalPERS Obligations 2016 $1,400,000 $1,265,222 $1,200,000 $1,160,629 $1,000,681 $1,000,000 $840,844 $800,000 $735,681 $600,000 $400,000 $200,000 $- $- 15-16 16-17 17-18 18-19 19-20 20-21

Fiscal Health: CalPERS Obligations Unfunded Pension Obligations Unfunded Pension Obligations Unfunded Pension Obligations $1,400,000 $1,400,000 $1,400,000 $1,200,000 $1,200,000 $1,200,000 Annual Payment Annual Payment Annual Payment $1,000,000 $1,000,000 $1,000,000 $800,000 $800,000 $800,000 $600,000 $600,000 $600,000 $400,000 $400,000 $400,000 $200,000 $200,000 $200,000 $- $- $- 16- 16- 16- 17- 17- 17- 18- 18- 18- 19- 19- 19- 20- 20- 20- 21- 21- 21- 22- 22- 22- 23- 23- 23- 24- 24- 24- 25- 25- 25- 26- 26- 26- 27- 27- 27- 28- 28- 28- 29- 29- 29- 30- 30- 30- 31- 31- 31- 32- 32- 32- 33- 33- 33- 34- 34- 34- 35- 35- 35- 36- 36- 36- 17 17 17 18 18 18 19 19 19 20 20 20 21 21 21 22 22 22 23 23 23 24 24 24 25 25 25 26 26 26 27 27 27 28 28 28 29 29 29 30 30 30 31 31 31 32 32 32 33 33 33 34 34 34 35 35 35 36 36 36 37 37 37 Pension Obligations w/ No Council Action Pension Obligations After First Additional Payment Pension Obligations After Second Additional Payment

Sierra Madre Historic Funding Ratio Sierra Madre Pension Funding Ratio CalPERS Average Funding Ratio (current) 100% 95% 90.00% 90% 85% 82.35% 80% 74.20% 75% 72.05% 71.25% 70% 70% 69.35% 65% 60% FY2015 FY2016 FY2017 FY2018 FY2019 (EST.) FY2020 (PROJ.)

Funding Ratios of Comparable Cities Pension Funding Ratios of Comparable Cities Average 100% 95% 90.00% 90% 85% 80% 76.90% 74.40% 72.90% 75% 72.82% 70% 71.06% 70.30% 63.34% 67.77% 65% 60% ARCADIA CLAREMONT DUARTE* SOUTH SAN MARINO SAN DIMAS* LA CANADA/ SIERRA PASADENA FLINTRIDGE* MADRE PROJ. *Police and Fire Services are provided by LA County * City of Monrovia made an additional payment of about $98M to both Classic plans on December 2017. City of Monrovia issued 2017 Pension Obligation Bonds

State of the City: Public Safety Fire Department Police Department • Transition to a Career Department • Sierra Madre is again ranked as one of the is now complete top 20 safest cities in California • Trial period in Unified Response • 8,190 calls for service, with 4,648 calls and Automatic Aid has started officer-initiated • Priority 1 (Emergency) response time 2:34

State of the City: Library

State of the City: Schools

State of the City: Water

State of the City: Water WATER AVAILABILITY • The 500 ft. rule (940 Acre Feet) ⚬ Local water capable of meeting 40.8% of water demand • Raymond Basin Management Board Sierra Madre Spreading Program ⚬ Imported water from District connection meets remaining demand

State of the City: Water Water Levels of East Raymond Basin 600 500 400 300 200 100 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Feet Above Mean Sea Level Safe Operating Level

State of the City: Water WATER AVAILABILITY Water Demand: 2,300 Acre. Ft./Annually Water Sources: 940 Acre Ft./Annually Groundwater: SGVMWD/MET agreement: 2,500 Acre Ft./Annually (Up to) Arcadia Wheeling Agreement: As necessary/requested Joint Well (Planned, 2022): 1,000 - 1,300 Acre Ft. Annually

State of the City: Water WATER INFRASTRUCTURE 2016 WATER INFRASTRUCTURE 2020 64% of all water mains require Implemented Main Replacement • replacement Program ⚬ Invested $5.3M in FY2017-19 28% of water mains have failed • ⚬ Invested $2.3M in FY2019-20 Most pipes are 70 year beyond • useful life • Converted 100% of users to AMI Water loss is 29% • Water loss projected at less than • Infrastructure investment is less 10% for 2020 • than $300,000

State of the City: Water WATER FINANCIAL PERFORMANCE 2020 • Refinanced debt and reduced payments from $420,000 to $230,000 • Budget surplus is projected each year into future (great for infrastructure!) • Simplified water rates from 4 tiers to 2 tiers • Excess water charges (penalties) eliminated • Improved Bond Rating to "A" with an outlook of "stable" from "BBB" and "Negative Watch"

Water Fund Infrastructure Investment FY 15/16 - 19/20 $2,500,000 $2,309,500 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 15-16 16-17 17-18 18-19 19-20

Percent of Water Production Lost 2015 - 2019 100% 90% 80% 70% 60% 50% 40% 30% 20% 29% 21% 10% 17% 10% 0% 2015 2016 2018 2019

State of the City: Wastewater Sewer Fund Deficit/Surplus FY 15/16 - 19/20 $200,000 $100,000 $- 15-16 16-17 17-18 18-19* 19-20* $(100,000) $(200,000) $(300,000) $(400,000)

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The Golden Age of Sierra Madre

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