Loading...
HomeMy WebLinkAboutStaff Report 5.A 02/02/2004,a a F _3 rjUl 2 2 F0 ID 4 1 A CITY OF PETALUMA, CALIFORNIA AGENDA BILL Agenda Title: Meetinz.Date: An Ordinance Amending Ordinance No. 2154 N.C.S.'to Change February 2, 2004 Certain Appropriatiohs for the Operations of the City of Petaluma from July 1, 2003 through June 30, 2004. Meeting Time: 3:00 PM ❑ 7:00 PM Category (check one): ❑ Consent Calendar Public, Hearing ❑ New Business ❑ Unfinished Business ❑ Presentation Department: Director Contact Person: Phone. Number: Finance W. Thomas W. Thomas 778-4323 Cost of Proposal: $972,750 (see financial impact) Account Number: Various Amount Budgeted: Not applicable, Name of Fund: General, Employee Benefits, Gas Tax, PCDC, Water Utility Attachments, to Agenda Packef 1. Ordinance providing for a change in appropriations including Exhibit A 2. Memo from Water Resources recommending changes to budget Summary Statement: The City reviews its budget on a continual basis but historically makes recommendations for changes at mid-year as well as in June of each year. This recommendation is the first of the mid-year recommendations. Due to the current budget situation at the State level, the City may be required to make additional changes before June. The recommended changes will cover activities that have occurred since the adoption of the budget, proposed changes from departments and changes brought on by revised revenue estimates. Due to the uncertainty of the State budget situation, only minor changes are recommend at this time. The FY 2004 budget is proving to a very fluid. document and additional recommendations will be brought to Council as the revenue picture becomes clearer. Recommended City Council Action /Suggested Motion: Introduce and provide, for the first reading of the amending ordinance. The ordinance is not considered to be of urgency. Reviewed by,Finance Director: Reviewed by City Attorney Date: Appiroved by Citv Manager: Date: D e: Today's Date: Revision and Date Revised: Vile Code: January 31, 2004 CITY OF PETALUMA, CALIFORNIA FEBRUARY 2, 2004 AGENDA REPORT FOR, AN ORDINANCE AMENDING ORDINANCE NO. 2154 N.C:S. TO CHANGE CERTAIN APPROPRIATIONS FOR THE OPERATIONS OF THE CITY OF PETALUMA FROM'JULY 1, 2003 THROUGH .TUNE 30, 2004. 1. EXECUTIVE SUMMARY The City reviews its budget on a continual basis but historically .makes recommendations for changes at mid- year as well as in June of each year. This recommendation is the first of the.mid -year recommendations. Due to the current budget situation at the State level, the City may be required to make additional changes before June. The recommended changes will cover activities that have 'occurred since the adoption of the budget, proposed changes from departments and changes brought on by revised revenue estimates. Due to the uncertainty of the State budget situation, only minor; changes are recommend at this time. The FY 2004 budget is proving to a very fluid document and additional recommendations will be broughtt.o Council as the revenue picture becomes clearer. 2. BACKGROUND As presented at the Council meeting of January 20` the City is facing a potential budget shortfall of $1:9 million in. the General Fund. This is' based :on revenue and expenditure estimates that were updated for actual ctivity through December 31, 2003. It .should be noted that this potential shortfall is only an estimate and erally changes on n a daily basis a he revenue picture .becomes clearer and expenditures are.cut back which includes a 'hiring freeze for all departments. To address this potential $1.9 million deficit it is recommended that the following take place: a. Reduce the transfer of $400,000° from the General Fund to the Employee Benefits Fund, which was designated to pay - for anticipated g retirements. Instead re- appropriate these funds to cover a portion of the potential deficit Atyear -end (6- 30- 2003); the Employee Benefits Fund had a reserve of $598,246, which is sufficient to cover retirenient related.costs for the current fiscal year. b. Utilize the surplus that was realized in the General Fund (FY 2003) of $287,000. Both of these revenue sources are recommended to be appropriated,,to "General Fund Appropriation Contingency The City Manager would allocate these funds to the various departments on an as- needed basis. These re- allocations will bring the potential deficit down to approximately $1:2 million. Management has discussed how we will. address this potential deficit at the prior meeting, - It is anticipated that additional changes to the existing budget will 'be brought to Council as the situation becomes clearer. Other changes that are recommended.are as follows: a: Allocation of $5,9',850. from the General Fund Unreserved Fund Balance to pay for the re- roofing of the Museum/Library building, which was previously approved by Council. b. Transfer the repair project ° was ap p roved for the "D" Street Bridget from the Gas Tax Fund to the PCDC — Central Business. District Project Area. This repair is considered part of the required infrastructure improvements as a result of the Theatre District. c. Utilize the funds from the Gas, Tax fund that were to `be used; for the "D" Street Bridge for street maintenance. The ,total appropriation for FY 2004 was'$294,000, however only $59,000 was to come from the Gas Tax fund.. An' additional $370,000 in Gas Tax "fund resources was anticipated in FY 2005. (Total transfer -from the Gas Tax.find to the Street Maintenance fund -- $59,000) d. Transfer to the Street Maintenance fund the 'following projects: a. Utility Underground Project -- $25;000 b. Sidewalk Maintenance Project -- $84,000 e. Increase Project # 9793 (Water Main Improvements) by $50.0,000 to cover additional improvements to the City's' water main system .(Water Utility Fund) f. Fund Project #9841 (Wilmington Pump Station) in the amount of $126,000. This project was scheduled for FY 2006 but staff 'recommends that it be completed in the current fiscal year. • �. ALTERNATIVES Do not adjust the budget at this time and defer action until revenue and expenditure picture becomes:- clearer. 4. FINANCIAL IMPACTS The financial impacts by fund, are as follows: General Fund $ 746,850 Gas Tax (294,`000) PC DC. 294,000 Water Utility 626`,000 Employee Benefits (400 000) Total $ 972,850 5. CONCLUSION The City's budget is affected by a number of factors such as the economy, state ,.budget .issues and local service deliveryissues. When a.budget is developed, those factors are taken into; consideration. For example, sales tax estimates were lowered for FY 2004 based on the assumption that new car sales would fall. from . levels that we were seeing in FY 2003. Additionally, state revenue sources that were at risk were either eliminated or reduced. The estimates for police training reimbursement (POST), state mandated cost reimbursements ;and' bool {ing fee reimbursements were all zeroed.out:for FY 2004. Although the State has resumed payments for POST, the other two _are no longer'being provided. The wldcard was, the Vehicle License Fee (VLF). We did .not, lower: • our budget estimate for this resource because it would,have required draconian style cuts in services, and at the time.the budget was developed it was unclear whether the State would reduce or eliminate backfill payments. Since the budget.is based on estimates, it is always necessary to revisit the process `during the year to snake adjustments, ;based on actual operating results. Those, results so far show that General Fund revenues :are lower than budget estimates and General fund expenditures are on track to exceed budget appropriations. While expenditures can'be controlled to some degree, revenues are dependent on outside: factors and therefore less controllable. Staff will continue to monitor the General Fund revenue and expenditure. activity and.return with recommendations for changes as needed. 6.. OUTCOMES OR PERFORMANCE MEASUREMENTS THAT WILL IDENTIFY SUCCESS OR COMPLETION.: The introduction,and first reading of the Ordinance -is the first step in its enactment. A second reading will be required to fully implement the Ordinance. 7. RECOMMENDATION Introduce and provide the first reading =of Ordinance to amend the existing appropriation budget for FY2004. g: /forms /2003 agenda bill 9J a C] CITY OF PETALUMA, CALIFORNIA APPROPRIATIONS -- JULY 1, 2003 THROUGH JUNE 30, General Plan 660,700 - 660,700 660;700 GIs 167,200 167,200 Information Services 797,200 - 797,200 Human Resources. 2,004,700 - 2,004,700 General Fund Portion 346,700. - 346,700 Workers Compensation 1 {070,250 1,070,250 Employee Benefits 587,750 - 587,750 Finance 4,122,000 - 4,122,000 General Fund Portion 1;786;500 - 1,786,500 Risk Management - Liability 1,1193;550 - 1,093,550 General Services 341,950 341,950 Vehicle & Equipment Replacement 900;000 900,000 Police 11,935;300 .- 11,935,300 Fire Ambulance 9;030;350 - 8,030,350 General General Fund Portion .6,348 - 6,348,500 Ambulance Enferyrise.' '2,681,850 - 2,681,850 Community Development 2,056;450 2,056,450 CDBG and Housing 5,990,700 5,990,700 Public Facilities &`Services 8,876;700 (234,150) 8,642,550 General'Fund Portion' 3,411,700 59,856 3,471,550 Street Maintenance- Non General Fund _ 2,612,000 - 2,612,000 Gas Tax 418,500 (294,000) 124,500 Airport 997;5,50 - 997,550 Transit 1 - 1,436,950 Parks & Recreation 4;426,450 - 4,426,450 General Fund Portion 3;515,500 3,515,500 Child Care Marine 425,850 - 425,850 Landscape Assml. Districts - 485,100 485,100 General fund Appropriation Contingency - 687,000 687,000 Water Resources ,& Conservation 18;467,900 - 18,467,900 Water Utility 10,354;850 - 10,354,850 Wastewater Utility 8,113,050 8,113,050 Flood Mitigation _ . - C aprta4 Irnprovem a ni Pro gra m s - ,5,592,000 - 5,592,000' Transporalion Projects - 174,000 - 174,000 Street Maintenance and Reconstruction 5,047 000 5,047,000 Community facilities 371 - 371,000 Parks &.Recreation 2,756,000 2,756,000 W . 33,213,000 626,000 33;839,000 Wate Water Utility .7;395;000. 626,000 8,021,000 Water Pollution Control. 23,899,000 - 23,899,000 Surface Water Management 11919,000 - 1,919,000 Debt Trusts 33400 - 33,400 Transient Occupancy 522,100 - 522,100 Lucchessi Reservation of Soccer Fields - - AllowanceforRetirements 400,000 (400,000) - Transfers Out 13,103,500 13,103,500 Petaluma Community Development Commission 31,085;650 294,000 31;379,650 TOTAL DEPARTMENTS $ 157;283 $ 972,85 $ 158 General Fund $ 33,188,75 746,850 '$ �- - 33;935,600 Special Revenue Funds: 28,013,900' (294,000) 27,719;900 CommaDevelopment Block Grant 548!300. - 548,300 Home -Begin Grants 4,256,300, 4,256,300 Gas Tax 1,, ,468.500 (294,000) 1,174,500 Landscape Maint. Districts 235;100 - 235,100 Supplemental Law Enforcement Svcs: 110,000 - 110,000 Asset Seizure 25,000 .. 25,000 Transient Occupancy 1,022,100 1,022,100 Park Development 2,483,000 - 2,483,00 Flood Surface Waler,Impact 1,946,000 - 1,946;000 Housing - ln;Lieu 1186,100 - 1,186,100 Community Facilities Fees 1.654,400 - 1,654,400 Traffic Mitigation 6;169,100 - 6,169,106 Animal'Shelter Donations 15;000 15,000 street Maintenance 1,848,000 - 1,848,000 Street Reconstruction .5,047,000 - 5,047,000 Chilo�Care Turning basin - - - Debt Service Enterprise'F.untls: 58,757,100 626,000 59,383,100 Water Utility 18,684,850 626,000 19,310,850 Water Pollution Control 34,148;050 - 34,148,050 Public Transportation - 1,545;950 1.545,950 Airyort .997;550 - 997,550 Ambulance - 2 - 2,681,850 Marina. - '698,850 - 698,850 Internal, Service. Funds: ,5,190,700 (400,000) 4,790,700 Infonnation'Services 797,200 - 797 Employee Benefits 987,150 (400,000) 587,750 Workers' Compensation 1070250 - 1,070,250 Risk Management 1,093;550 - 1,093,550 General Services .341,950 - 341,950 Vehicle and Equipment Replacement 900,000 - 900,000 Trust Funds 1047;400 1,047,400 Petaluma Community:Development Commission 31085,650 294,000 31,379,650 TOTAL FUNDS' $ 157;281,500 $ 972;850 $ 158,256,350 Exhibit A C?TY OP PETALUMA, CALIFORNIA MEMORANDUM Department of Wgter Resources and Conservation, 11 English Street, Petaluma, CA 94952 (707) 778 7 4304 Fax (707) 776 -3635 E- mail:mban@ci petaluma.ca.us DATE: December 29, 2003 TO: Michael Bierman Bill Thomas FROM: Michael Ban, RE. WY SUBJECT: Department of Water Resources & Conservation Mid -Year Budget. Update This memorandum updates the Department of Water Resources'and Conservation Fiscal Year 03 -04 budget at mid -year. The updates pertain to labor and capital improvement program projects. The FY 03 -04 budget,includes 36 positions in the Department (this does not include the, 16 US Filter personnel that operate the wastewater treatment plant): As -shown on the attachment, the mid -year budget-update includes four additional maintenance personnel. One position resulted from an employeeXeclassification, the remaining three positions are provided to support the City's stormwater, managementprogram. Under the EPA's Phase H Stormwater Rule, the City is required to iinplernent a stormwater management program. The City's program includes three maintenance workers,dedicated,to maintenance of the stormwater system. The Department presented the stormwater management program to the City Council in Spring 2003. On June 10, 2003, the Department of Water Resources & Conservation presented its budget to the City Council and indicated that these additional personnel would be "included in the mid -year budget adjustment. With respect to capital improvement programproj,ects, the Department is requesting an additional $500,000 in FY` 03 -04 for Project 9793 — Water Main Improvements for additional improvements to the City's_w.ater main system, The Departrent is also requesting the funding of Project, 9841 — Wihningtoii Pump Station 'in the amount ofS126,000 in FY 03 -04. This project was scheduled for implementation in-FY 05-06. The Department is recommending that this project commence in FY 03 -04 since the Wilmington Pump Station, which is a wastewater pump station, i& °now; surrounded by residential development. This project includes aesthetic improvements. to the pump station that are fitting for a residential area. The proposed funding for these two proj ects is attached.