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HomeMy WebLinkAboutSupplemental Questions from Robert Goldberg1 Gloria Harper From:Robert Goldberg <rgoldberg@live.com> Sent:Thursday, June 04, 2020 9:51 AM To:Thomas Moore; Schelly Sustarsic; Mike Varipapa; Sandra Massa-Lavitt; Joe Kalmick Cc:Jill Ingram; Gloria Harper; Steve Myrter; Kelly Telford; Phil Gonshak; Charles M. Kelly; Jeannette Andruss Subject:External Email : Questions and Comments for Today's Follow-Up Budget Workshop Attachments:Budget Questions for 2nd WS.doc Dear Council and Staff,    Thank you for addressing many of the questions that I submitted for last week's workshop. Please find  attached a much shorter list of questions and comments for your follow‐up workshop today.  It is a mix of the  most salient questions that were not addressed, and a few new questions that were generated by last week's  discussion.     Thank you again for your consideration and service,    Robert Goldberg        CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe. 1 Comments & Questions for 2nd Workshop from Robert Goldberg 6/04/20 Summary of Projected Fund Balances P.14-15 Internal Service Fund: Vehicle Replacement: The table shows a projected fund balance on 6/30/21 of $1,122,000. How much of this will be in cash? Revenue Detail P.16 Inmate Fees from other Agencies: The Chief stated that the US Marshals census has been averaging 8-11 inmates per day. The lower figure of 8 would generate an expected revenue of 8 inmates X $105/day X 365 days = $306,600. Therefore, why are we budgeting revenue at only $200,000, or more than $100,000 less? P.18 Other Revenues: Liability Insurance Reimbursement: At the last workshop, Kelly stated that the $1,447,800 in estimated revenue in FY 19-20 was related to the pier fire. However, I was expected a figure more like $6 million. This year’s (FY 19-20) adopted budget shows estimated an insurance reimbursement of $5,955,500 (p 23, account 034-000-30969). We had been told that the insurance reimbursable portion of the fire cost was about $4.3 million, and that we were also going to get a $million and half or so as reimbursement for loss of the restaurant. What is the total reimbursement have we received to date for the pier fire repairs and loss of the restaurant building? Is there more reimbursement expected? P.19 St Lighting District: Transfer In-Operations from the General Fund is budgeted at $70,100. However, the required GF subsidy presented by the Engineer’s Annual Levy Report to be adopted by Council on 5/26/20 is $10,000 less ($60,098). Why is an extra $10,000 being transferred from the GF? 2 City Manager Department P. 45 Program: Refuse: The proposed budget is $1,184,500 even though the actual for FY 18 - 19 was $1,236,387 and the estimated for FY 19 -20 is higher at $1,255,700. Why is Refuse being budgeted at a level that is $50-70,000 less than our experience over the last two years? Community Development Department P.90 Program: Planning: At the workshop, staff explained that proposed budget for Contract Professional has been reduced by $35,000 by having the CDBG Fund pick up half of the administrative costs for LW bathroom remodel program. For several years now, the General Fund has paid a 100% of the administrative costs. However, CDBG revenue is not expected to increase by $35,000, remains at the $180,000 level that it has been at for many years (see pages 14-15). Given the shifting of CDBG money from bathroom construction to program administration, how many fewer bathrooms will be remodeled in FY 20-21? P.91 Program: Building and Code Enforcement: The proposed budget for Contract Professional is $40,000, twice what typically is budgeted ($20,000). Why was the budget amount doubled? P.93 Program: Special Projects: What is the budgeted $60,000 in “Plan Archival” going to be spent on? 3 Public Works Department P.101 Program: Storm Drains: The proposed budget for Part-Time is $17,500 vs. an estimated $2000 for FY 19-20, and an actual of $2475 for FY 18-19. Please explain why $17,500 is being requested for Part-Time employees? P. 103-104 Program: Street Maintenance: Street Sweeping: The proposed FY 20-21 budget for Street Sweeping is $180,000. This is based on the full cost of the new contract approved by Council in October 2019 for an amount not to exceed $174,416 an nually. However, historically, 25% of street sweeping costs have been charged to the Waste Management Fund (005), and page 47 lists “street sweeping” under the list of contractors paid for by this Fund. The Waste Management Fund derives from a $10,000/month payment to the City from Republic Industries that must be used for recycling purposes. Why is the full amount of the Street Sweeping contract proposed to be funded here by the General Fund? P.115 Fund: Vehicle Replacement The FY19-20 budget projected a cash balance of $322,000 in the VRF as of 6/30/20 (see bottom of p233 in our current budget). What is our estimate or figure for the VRF cash balance as of 6/30/20? If this is several hundred thousand dollars, then why would we not want to use this cash balance to budget for purchases in FY 20-21 of needed vehicles and equipment? At last week’s workshop, when asked about the expected $50,000 revenue into the VRF, Kelly stated this was due to the sale of surplused vehicles. She went on to state that vehicle purchases were expected later in the year. If this is correct, why are no expenditures budgeted for the VRF? P.121 Fund: Sewer Operations: The proposed budget for Part-Time is $92,000 vs. an estimated $54,200 for FY 19-20. Please explain why budget for Part-Time employees is going up by 70%? 4 The proposed budget for Equipment and Materials is $85,000 vs. an estimated $55,500 for FY 19-20 and an actual for FY18-19 of $33,057. Why is this large increase necessary? The listing of Contract Professionals on page 122 is unchanged from last year. However, the proposed budget for Contract Professionals on page 121 is $222,400 vs an estimated $152,300 for FY 19-20 and an actual for FY18-19 of $119,751. Why is this large increase necessary? P.126 Fund: City-Wide Grants: There are two new grants that I have not seen in the previous budget: 080-300-49605 for $50,000 and 080-368-49605 for $200,000. Who are these from? Marine Safety P.140 Program: Lifeguard: At last week’s workshop, Chief Bailey was asked about the full funding of Jr. LG Salary ($98,600) despite cancellation of the program. He explained that this was to cover the salary costs for restarting the program next season in the late spring of 2021. However, the Chief further explained that the majority of wage costs for the '21-'22 season will not occur in the FY '20-'21 budget, as program expenditures always straddles two fiscal years. If the majority of the Jr. LG salary expenditures for the next season will be in FY 21-22, than why do we still have full salary appropriation in FY 20-21? Couldn’t this appropriation be easily cut in half? Position Allocation Plan (PAP) P.231 Police: Field Services: The PAP indicates that one Sergeant will be allocated (paid) to “Other Various” funds. This is a new allocation, as the Sergeant was paid by the General Fund in FY 19-20. What fund will be picking up the salary and benefits of a Sergeant? 5 Ongoing Capital Projects P.143 This listing of carry-over projects does not include ST1207, Parking Management Plan. ST1207 is the comprehensive project, first funded in FY 14-15, that has paid for numerous consultants and parking technology upgrades. The Council was told at last year’s CIP workshop that ST1207 had been closed. However, over $41,000 in various expenditures in FY 19-20 paid for by ST1207 indicate that this was not correct: Check No.Check Date Amount Vendor Service 13406 11/21/2019 $1,114 Commander Bowles Parking Conference 2019 15258 4/16/2020 $13,365 EZ Line Striping Corp Concrete wheel stops for parking lots 15468 3/30/2020 $26,442 Tyler Technologies Parking citation writers (8) 15585 5/14/2020 $155 EZ Line Striping Corp Concrete wheel stops for parking lots Total after August $41,076 Per PRA 19-485, staff apparently keep over $735,000 that had been originally appropriated in 2016 and 2017 “on the books” and available for spending in FY 19 -20. After the expenditures in the table above, approximately $694,000 would be available to be “rolled over” once again into next fiscal year. Has ST1207 SB Comprehensive Parking Management Program finally been closed with no carry-over to FY 20-21? This listing of carry-over projects does not include BP1002, Pier Fire Repairs. $80,000 was appropriated in FY 19-20, and there has not yet been a “close-out” staff report on a Council agenda. Has the pier fire project been closed? If not, what is the carry-over amount for FY 20-21? CIP by Funding Source P.148 CIP – 045 (General Fund): BG2003, Lifeguard HQ/PD Substation Replacement: The total estimated cost of replacing this building is $9.5 over four years. At the last workshop, the Council was told that $250,000 is proposed in the FY 20-21 budget to complete the design and EIR. How much of this $250,000 will be incurred before the staff presents either the recently completed “Needs Assessment” report on this building, or the comprehensive long-term CIP/Finance overview that is forthcoming in a few months?