HomeMy WebLinkAboutCC AG PKT 2002-06-24 #Xt
AGENDA REPORT 5� O
V
DATE: June 24, 2002
TO: Honorable Mayor and City Council
FROM: John B. Bahorski
City Manager
SUBJECT: Request to Adopt FY 2002/03 and FY 2002/04 Budget, Fleet
Management Plan and Five -Year Capital Improvement Plan
SUMMARY OF REOUEST:
Staff is requesting City Council take the following actions:
1. Conduct the public hearing and take public input.
2. Adopt a resolution approving the FY 2002.03 and FY 2003/04 Budget, Five -Year
Capital Improvement Budget and Appropriations Limit for Fiscal Year 2002 -2003
and amend Appropriations Limit for Fiscal Year 2001 -2002.
3. Approve the Fleet Management Plan.
BACKGROUND:
City Council received the proposed budget an May 16, 2002 in accordance with the City
Charter. Budget workshops were held on May 29, May 30, and June 5, 2002 to discuss
the FY 2002/03 and FY 2003/04 Budget and supporting documents. As required by the
City Charter a public hearing to adopt the budget was noticed for June 24, 2002. City
Council may now take public comment on the proposed budget, provide additional
Council comments on the proposed budget and adopt the proposed budget along with any
changes.
Staff has projected revenues in FY 2002/03 of $50,379,252 and expenditures are
estimated at $53,494,735. General Fund revenues in FY 2002/03 are projected to be
$17,102,443 and General Fund expenditures of $17,040,099. As in past year's the City's
three largest revenue sources are utility user tax, property tax, and sales tax. These three
sources of revenues account for 54% of the total General Fund revenues. In FY 2002/03
police and fire expenditures will consume 53% of the resources.
Agenda Item X
992
Within Water Fund operations there is a projected deficit of $275,797 that will need to be
addressed before the end of FY 2002/03. Staff is already preparing a water rate study to
address the imbalance in the Water Fund that will be ready for City Council consideration
in August. Sewer Fund improvements are continuing due to the revenues provided by
Certificates of Participation issued in June 2000. Several key projects am planned such as
replacement of the sewers in Old Town and the Boeing pump station.
In FY 2002/03 the General Fund will be transferring $603,852 to the Tidelands Beach
Fund for beach - related operations and projects.
At the beginning of budget workshops, the City had a General Fund deficit of $290,991
in FY 2002/03 and $1,049,313 in FY 2003/04. City Council deliberated and made the
following decisions to create a balanced budget in FY 2002/03. Those budget reductions
are as follows:
Eliminate OCRRA Membership
$ 5,550
Reduce Washington Lobbyist Contract
6,000
Reduce Washington Lobbyist Contract (2 "d year)
13,200
Eliminate Quarterly Newsletter
15,400
Eliminate Grant Writer
10,000
Eliminate Surf Class Equipment
2,500
Reduce Lifeguard Boat Service
3,500
Convert CSO Position to Two Part-time Positions
23,000
Eliminate Capt. Position in Police Department
183,000
Defer Lifeguard Tower Construction (1" year only)
6,500
Eliminate Court Liaison Contract
10,000
Freeze the Deputy City Clerk Position (1" year only)
33,000
Reduce Off- season Lifeguard Deployment
33,000
Eliminate DARE Position in 2 "d year
91,500
Eliminate Uninterrupted Power Supplies for traffic
10,000
Through the budget workshops, City Council reduced expenditures in FY 2002103 by
$339,450 and $400,650 in FY 2003/04. In addition, Council authorized staff to prepare a
ballot measure to increase the Transient Occupancy Tax from 9% to 12% in order to
generate $75,000 in additional revenues for the City. Should the election measure fail in
November there will be an increase in the FY 2003/04 deficit.
These reductions will eliminate the FY 2002/03 General Fund deficit and reduce the
deficit in FY 2003/04 to $590,579. In order to further reduce the deficit in FY 2003/04,
City Council instituted a hiring freeze on all positions. This two -year budget will be
reviewed following adoption of the Stale budget to determine further reductions that may
be necessary if the State reduces revenues to the City or withholds Motor Vehicle in Lieu
revenue. Staff will also prepare a mid -point budget review for City Council so that the
99%
deficit in FY 2003 /04 can be eliminated. As City Council is aware, the Budget is not a
static plan, but rather dynamic document that guides the City both financially and
strategically.
FISCAL IMPACT:
The proposed FY 2002/03 and FY 2003/04 Budget will establish the fiscal plan for the
City of Seal Beach.
RECOMMENDATION:
Adopt resolution number _ approving the FY 2002/03 and FY 2003/04 budgets and
approving the FY 2002/03 Appropriations Limit and amend the FY 2001/02
Appropriations Limit, and the Five Year Capital Improvement Plan.
Approve the Fleet Management Plan.
SUPPORTING DOCUMENTS:
A. Resolution Number — Adopting the FY 2002/03 and FY 2003/04 Budget and
the FY 2002/03 Appropriations Limit and amend FY 2001/02 Appropriations
Limit, and the Five -Year Capital Improvement Plan.