The Rite of Spring: City's Budget Workshop

Saturday, May 19, was a gorgeous spring day, and a fair number of people seemed to be enjoying it at Piedmont Park — kids, strollers, dog walkers. You could just glimpse them from the Piedmont Police Department's Emergency Operations Center across the street, where a dedicated group spent five sunlit hours indoors, reviewing the city budget department by department, if not line by line.

If you haven't seen it, the operations center is less formidable than it sounds: a medium-sized conference room with glass doors facing the park and, on Saturday, a table loaded with very good coffee, pastries, bottled water and three varieties of pizza to fuel the discussion.

Inside, four Piedmont City Council members (Margaret Fujioka was absent), city department heads, several other city staffers and some members of the city's budget advisory committee drilled down into the details of the proposed municipal budget for fiscal year 2012-2013. City Clerk John Tulloch orchestrated the logistics. Three reporters scribbled notes. Budget commitee member Tim Rood live-tweeted some of the action from the audience. The general public was notable for its absence.

Everyone was equipped with a copy of the budget — approximately one pound, as weighed on bathroom scales, including the handsomely illustrated binder.

The budget workshop is an annual rite, a chance for council members to review and ask questions about the budget before two public hearings on June 4 and 18. It even has its own traditions, including a ritualistic question about the mulch used in city open spaces, posed this year by Councilmember Jeff Wieler.

What the workshop doesn't have is any formal action, although council members make suggestions that may result in budget revisions. It does, though, provide an enlightening glimpse of city operations and finance, sometimes at the level of minutia. Here are some notes from the discussion.

CITY GENERAL FUND SNAPSHOT

Estimated for fiscal year 2011-2012 (current year): total expenditures/transfers out $21,864,701; total revenue/transfers in $21,773,550; in the red $91,151; beginning general fund balance $3,101,066; estimated ending fund balance $3,009,915.

Proposed for fiscal year 2012-13: total expenditures/transfer out $22,531,034; total revenue/transfers in $22,300,108; in the red $230,926; beginning general fund balance $3,009,915; estimated ending fund balance $2,778,989.

OVERVIEW

City Administrator Geoffrey Grote: Emerging issues as the budget was being put together: solar wash rack for the corporation yard, smoke and fire alarm for the Schoolmates facility at Beach School.

Bill Hosler, Budget Advisory Committee: Three caveats: sewer fund is big problem; hard to control retirement payments with CALPERS [California Public Employees' Retirement System] severely underfunded; committee assumed the parcel tax will be renewed. Committee will report formally to the city council in a couple of weeks.

CALPERS: Discussion of whether it's feasible to refinance/issue bonds to lower interest rate on city's payments for past unfunded liability. Now paying 7.75 percent interest. Not all in agreement whether city can get lower rate.

Blair Park: Budget assumes Piedmont Recreational Facilities Organization (PRFO) will pay in full for expenses incurred.

Workman's Compensation: City is self-funded for claims up to $150,000; up dramatically this year (public safety employees).

Employee retirements: Up to 40 city employees could retire in relatively near future; possible effects on retirement/fringe benefit costs.

Field replacement fund: Not yet established due to ongoing discussions with school district, although city has received a $50,000 donation to the fund.

RECREATION DEPARTMENT

Schoolmates: Program has historically made subsidies to city budget; won't happen this year, revenues down because of changes in Grade 2 schedule, busing of students from Emeryville cutting into Schoolmates hours.

Classes, programs: "Modest" fee increases to come, including 50 cents/hour more for Schoolmates program.

Field rentals: City has not charged youth sports clubs for use in past, that may change.

Aquatics: Staff hopes mailing to non-Piedmont residents will double number of annual pass holders. Revenues expected to be higher than forecast. Pool manager working too many days/hours, need to consider hiring two assistants.

Accounting: Considerable discussion of whether the long-time practice of assigning class fees, etc. to the fiscal year in which they are received, rather than when services will actually be provided, needs revision.

POLICE DEPARTMENT

Canine program has been suspended due to personnel and age of dogs; will not restart in coming fiscal year.

Vehicles: Chief John Hunt III is asking to replace five of the department's six patrol cars, captain's car and animal control truck. Replacement has been deferred for several years, repairs becoming more serious. Finance Director Mark Bichsel: Equipment replacement has been "underfunded" for the last three years.

FIRE DEPARTMENT

Equipment: New fire hydrant near entrance to corporation yard, $11,800. Radios compatible with those of nearby fire departments, $31,000, necessary for mutual aid communications. Need to replace 20-year-old fire truck [the big ladder truck], hoping to obtain a grant to cover most of cost.

PUBLIC WORKS

Director Chester Nakahara: Bad news: sewer fund issue; always a little behind on street repairs. A number of unfunded mandates from other agencies concerning issues like clean water, transportation, climate change, etc. Utility costs up because had to use more water in parks during dry winter.

ADMINISTRATION

City Clerk John Tulloch: Recommending purchase of three new copy machines, new computer firewall system, iPads for city council members.

The proposed budget is available for download (as several separate documents) at the City of Piedmont website.