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HomeMy WebLinkAboutCC AG PKT 2004-06-28 #S AGENDA REPORT j 1). ' dD DATE: June 28, 2004 TO: Honorable Mayor and City Council THRU: John B. Bahorski, City Manager FROM: Pamela Arends -King, Director of Administrative Services /Treasurer SUBJECT: Adoption of the fiscal years 2004/05 and 2005/06 Operating and Capital Budgets and establish the fiscal year 2004/05 Appropriation Limit. SUMMARY OF REQUEST: ti Staff requests the Council adopt the fiscal years 2004/05 and 2005/06 budget documents that include city staffing levels, budget and fiscal policies, the five -year capital project program, and the operating budget. Staff also requests Council adopt the attached resolution approving fiscal years 2004/05 and 2005/06 expenditures by fund. The resolution also establishes the 2004/05 appropriations limit and corrects fiscal year 2003/04 appropriations limit required under Article XIIB of the State Constitution. BACKGROUND: On May 12, 2004 staff presented the proposed operating and capital budget documents for all city funds for fiscal years 2004/05 and 2005/06. The proposed budgets were prepared based on Council goals, state mandates and services the City provides. The City Manager held a town meeting May 13, 2004 where the proposed budget was introduced to the public and budget workshops open to the public were held June 7 and 8, 2004. The budgets were made available to the public through "check -out" copies at the library and City Clerks office, for purchase and on the City's website. There were no changes made to the proposed bi- annual budget for both fiscal years during the workshops, therefore the attached resolution presents the same proposed expenditures for each fund except for minor changes to General fund expenditures and revenues due to more updated information. The proposed budgets for both fiscal years are balanced and the General Fund reserve requirements according to the City's budget and fiscal policies are met. The bi- annual budget also includes a transfer of General Fund Undesignated Fund balance of $2.7 million to the Capital Projects fund for much needed street repairs and rehabilitation. Attachment A and B illustrate total estimated revenues for all city funds for fiscal years 2004/05 and 2005/06 and proposed expenditures for all city funds for fiscal years 2004/05 and 2005/06. The attachments reflect expenditures that are not capitalized, therefore the expenditures for capital projects for the water and sewer capital enterprise funds are not listed on this spreadsheet however, the amount expended is included on the attached resolution. Agenda Item 5 • June 28, 2004 Agenda Report — fiscal years 2004/05 and 2005/06 budgets Changes to General Fund expenditures include an increase in the West Comm JPA annual contract. The original proposed budget for this item in the Police Support Services Department for fiscal years 2004/05 and 2005/06 was $465,941 and $475,993. The corrected proposed amount based on updated information presented to the City by West Comm JPA for fiscal years 2004/05 and.2005 /06 is $498,993 for each year. There was also an increase in General-Fund Administrative proposed expenditures for Non - Departmental supplies and MOU tuition reimbursements totaling $3,799 in fiscal year 2004/05 and $2,900 in fiscal year 2005/06. The total increase in proposed expenditures for fiscal year 2004/05 of $33,052 and $25,900 in fiscal year 2005/06 is offset by the increase in General Fund estimated property tax revenues based on information received from the County after the original proposed revenues were determined. The estimated increase in property tax revenues for the General Fund increased $61,740 in fiscal year 2004/05 and $45,510 in fiscal year 2005/06. This increase is net of the tentative State property tax take away of $315,600 per year. The estimated increase in the property tax revenues offsets the increase in proposed expenditures therefore there is not a negative effect on the General Funds Undesignated Fund Balance or reserves. Attachment C illustrates the updated General Fund Analysis of Undesignated Fund Balance that incorporates the increases in estimated revenues and proposed expenditures.. Fiscal year 2004/05 reflects an operating deficit of $1,230,313 due to the transfer of $2,100,000 from the General Fund undesignated fund balance to capital projects. If the council were not to approve the transfer to the capital projects fund for street repairs and rehabilitation the General Fund would have a net operating surplus of $869,687. Fiscal year 2005/06 reflects an operating surplus of $109,899. This fiscal year includes a $600,000 transfer to the capital projects fund for street repairs and rehabilitation; therefore without the transfer the General Fund would have an operating surplus of $709,899. For both years excluding the transfer of funds to the capital projects fund, operating revenues exceed operating expenditures and the City's general fund reserve and undesignated fund balance fiscal policies requirements are met. A correction to the City staffing by positions was made. The original proposed budget documents stated the approved part-time full time equivalents positions for the Lifeguard Department was 11, however, the actual number is 7.8 for fiscal years 2004/05 and 2005/06. Attached is a memo addressed to the City Council from the Director of Public Works /City Engineer presenting errata sheets for changes /corrections to the Capital Improvement Budget and Pavement Management Report. RECOMMENDATIONS: Council adopt the fiscal years 2004/05 and 2005/06 budget documents that include city staffing levels, budget and fiscal policies, the five -year capital project program, and the operating budget. Staff also requests Council adopt the attached resolution approving fiscal years 2004/05 and 2005/06 expenditures by fund. The resolution also establishes the 2004/05 appropriations limit and corrects fiscal year 2003/04 appropriations limit required under Article XIIB of the State Constitution. June 28, 2004 Agenda Report — fiscal years 2004/05 and 2005/06 budgets l' :e /144 -14 Pamela Arends-King Director of Administrative Services /Treasurer NOT . A 0 : PPROVE . , /3 John C, i ahorski Cit " anager Attachments A,B,C • June 28, 2004 Agenda Report - fiscal years 2004/05 and 2005/06 budgets Attachment A . City of Seal Beach Summary of Revenues and Transfers In All Funds 2003 -2004 2001 -2002 2002 -2003 Estimated 2004 -2005 2005 -2006 Actual Actual Year End Estimated Estimated Revenue Revenue Revenues Revenues Revenues General Fund 20,449,512 20,532,447 20,487,393 19,183,933 19,370,996 Special Revenue Funds Street Lighting 149,664 147,067 146,100 145,700 142,200 Supplemental Law Enforcement 108,886 106,442 105,500 105,500 105,500 Communities Facilities District No. 2002 -02 125,400 126,700 126,300 Asset Forfeiture 7,674 3,683 6,200 2,700 2,500 Air Quality Improvement 30,552 29,607 28,300 28,150 28,150 Park Improvement 73,909 37,836 12,700 12,700 12,700 Tideland Beach 858,652 1,063,490 1,548,299 1,154,639 1,119,888 Gas Tax 494,563 535,940 526,600 534,600 537,600 Measure M 1,204,581 253,744 249,000 287,100 295,700 Roberti - Z'Berg- Harris Urban Open Space 479 79,705 150 13,487 53,497 Local Law Enforcement Block Grant 26,009 23,855 17,822 12,265 11,150 Cleep Grant 41,317 2,425 2,200 20,592 750 Traffic Relief 61,388 61,106 18,400 1,500 1,500 Total Special Revenues Funds 3,057,674 2,344,900 2,786,671 2,445,633 2,437,435 Capital Project Fund 2,372,720 2,662,764 7,979,500 10,621,022 9,097,771 Enterprise Funds Water Operations 2,284,171 2,149,360 2,668,600 3,224,000 3,709,500 Water Capital 668,697 770,828 949,000 752,000 770,000 Sewer Operations 721,679 467,378 596,500 627,500 729,500 _ Sewer Capital 972,392 682,163 1,188,000 563,000 563,000 Total Enterprise Funds 4,646,939 4,069,729 •5,402,100 5,166,500 5,772,000 Redevelopment Agency Funds Riverfront Low /Mod Housing 268,259 378,361 443,010 455,718 484,370 Surfside Low /Mod Housing 6,202 4,791 3,500 3,500 Riverfront Project 217,706 165,300 121,826 57,126 57,126 Debt Service 898,098 778,942 787,020 776,199 774,199 Tax Increment 1,461,496 1,460,511 1,554,310 1,564,030 1,595,420 Total Redevelopment Agency Funds 2,851,761 2,787,905 2,909,666 2,856,573 2,911,115 Total Revenues All Funds 33,378,606 32,397,745 39,565,330 40,273,661 39,589,317 • June 28, 2004 Agenda Report - fiscal years 2004/05 and 2005/06 budgets Attachment B City of Seal Beach Summary of Expenditures and Transfers Out All Funds 2001 -2002 2002 -2003 2003 -2004 2004 -2005 2005 -2006 Actual Actual Estimated Proposed Proposed Expenditures Expenditures Yr. End Bal. Budget Budget General Fund 17,122,223 17,780,889 18,539,606 20,414,246 19,261,097 Special Revenue Funds Street Lighting 168,004 185,837 148,250 148,750 150,250 Supplemental Law Enforcement 121,488 107,745 214,500 101,450 101,450 Community Facilities District No. 2002 -02 116,400 120,050 120,050 Asset Forfeiture 46,688 12,000 29,000 Air Quality Improvement 8,590 92,951 25,043 24,500 24,500 Park Improvement 146,000 Tidelands Beach 858,470 948,168 1,548,299 1,154,639 1,119,888 Gas Tax 408,447 316,008 566,425 557,816 576,781 Measure M 153,786 138,021 305,000 315,000 315,000 Roberti - Z'Berg- Harris Urban Open Space 79,779 13,337 53,347 Local Law Enforcement Block Grant 25,941 23,878 17,822 12,265 11,150 Cleep Grant 72,418 57,000 Traffic Relief 195,387 Total Special Revenues Funds 2,012,531 1,939,075 2,953,739 2,533,807 2,618,416 Capital Project Fund 4,193,097 3,186,522 5,975,000 10,613,522 9,095,271 Enterprise Funds Water Operations 2,613,575 2,291,201 2,743,152 3,056,451 3,214,400 Water Capital 49,277 31,328 31,800 55,000 55,000 Sewer Operations 418,313 362,572 786,491 617,270 727,755 Sewer Capital 162,881 101,280 45,000 265,151 271,402 Total Enterprise Funds 3,244,046 2,786,381 3,606,443 3,993,872 4,268,557 Redevelopment Agency Funds Riverfront Low /Mod Housing 175,459 540,963 690,500 414,500 414,500 Surfside Low /Mod Housing 194,836 Riverfront Project 572,760 150,488 270,886 901,793 1,402,429 Debt Service 864,144 737,384 746,020 738,199 738,199 Tax Increment 1,450,728 1,468,756 1,579,537 1,564,030 1,595,420 Total Redevelopment Agency Funds 3,063,091 2,897,591 3,286,943 3,813,358 4,150,548 Total Expenditures All Funds 29,634,988 28,590,458 34,361,731 41,368,805 39,393,889 • June 28, 2004 Agenda Report — fiscal years 2004/05 and 2005/06 budgets Attachment C General Fund Analysis of Undesignated Fund Balance 2001 -2002 2002 -2003 2003 -2004 2004 -2005 2005 -2006 Actual Actual Estimated Projected Projected Beginning Fund Balance 6,756,644 10,083,933 12,835,491 14,783,278 13,552,965 Less: Reserves and Designations (6,520,846) (8,081,113) (8,081,113) (8,081,113) (8,081,113) Beginning Undesignated Fund Balance 235,798 2,002,820 4,754,378 6,702,165 5,471,852 General Fund Revenues Property Tax Revenue 3,309,469 3,683,195 3,762,827 3,633,840 3,704,550 Utility Users Tax 4,368,647 4,475,157 4,440,000 4,440,000 4,450,000 Sales and Use Tax 2,228,006 2,405,860 2,700,000 2,437,500 2,618,750 Other Revenue 10,543,390 9,968,235 9,584,566 8,672,593 8,597,696 Total General Fund Revenues $ 20,449,512 $20,532,447 $ 20,487,393 $ 19,183,933 $ 19,370,996 Expenditures General Administration 2,558,634 3,725,884 3,326,884 2,867,677 2,909,411 Police Department 6,217,239 6,063,389 6,164,665 6,569,514 6,753,587 Fire Protection Services 2,877,769 3,255,147 3,357,614 3,579,769 3,745,523 Community Development 808,450 977,683 768,019 659,708 710,955 Public Works 2,797,323 2,362,656 3,037,403 3,087,415 3,038,269 Recreation 705,991 662,731 684,365 736,409 751,064 Transfers Out 1,156,817 733,399 1,200,656 2,913,754 1,352,288 Total Expenditures 17,122,223 17,780,889 18,539,606 20,414,246 19,261,097 Net Revenues (Expenditures) 3,327,289 2,751,558 1,947,787 (1,230,313) 109,899 Ending Undesignated Fund Balance $ 3,563,087 $ 4,754,378 $ 6,702,165 $ 5,471,852 $ 5,581,751 Undesignated Fund Balance Percentage of Total Expenditures 20.81% 26.74% 36.15% 26.80% 28.98% .