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HomeMy WebLinkAboutAgenda Report - November 3, 2004 I-04AGENDA ITEM t04 • CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Discussion and update regarding Fiscal Year 2005106 Budget process MEETING DATE: November 3, 2004 PREPARED BY: Finance Director RECOMMENDED ACTION: That the City Council receive general outline of discussion regarding the Fiscal Year 2005106 budget as per attached Exhibits and give advice to city staff for preparation of the budget. BACKGROUND INFORMATION: City staff began discussions about the upcoming budget at the shirtsleeve meeting of October 12, 2004. The documents attached herewith were distributed to the Mayor and City Council members at that time. The discussion tonight is considered by staff to be preliminary in nature and any advice or direction given by City Council to staff will be incorporated to the extent possible in the budget policies and the budget amounts to be proposed at later dates. City staff has scheduled shirtsleeve sessions in December of this year for further discussion of the Fiscal Year 2005-06 budget. FUNDING: Not applicable J mes R. Krueger, Finance Director APPROVED: L--- - anet S. Keeirer, Interim City Manager 2005-06 Budget Overview Agenda for 10-12-04 Shirtsleeve session 1) Review City of Lodi Financial Condition a) Break out "other" portion of other sources and uses. (Exhibit A) b) $1.3 million structural deficit and initial projection for 05-06 and future years (Exhibit A) c) Net cost to operate (Total department Expenditures- Direct Revenues) (Exhibit B) 1) Objective is to resolve deficit by decreasing net cost to operate 2) Revenue Considerations: a) No new revenues or revenue enhancements Impact of Citizen's sales tax initiative I)Citizens sales tax initiative b) Local Tourism Business Improvement District c) 911 tax, fee (Review status) d) We will continue to review all fees 3) Expenditure Considerations: a) Pers costs, employee contribution ( All are meet and confer issues) b) Health insurance, capping of City cost c) Hiring freeze continuation until ? Only a short term measure 1) Current status and plan for remainder of this year d) Develop department priorities and General Fund priorities. e) Develop scenarios with priorities (Exhibit C) 4) Process and Timeline Considerations: a) Calendar b) Appointment of Budget Advisory Committee c) All departments set priorities within each department based on core/mandatory programs d) Develop service level reduction plans e) Develop time line for implementation of reductions 1) Some reductions will be implemented in 04-05 11) Majority of reductions will be implemented in 05-06 20174-2d1t45 FII` ANC:It4L. PIAIN AND SC'M1MARY CHAMNGES II,V FU BkL AN, CE - €,I7',IS-E RAI, Fi IND 20(4-2009 -T El=nate (Ager Adjust or li•l.iminate One 1'ros�ecCi�e Fia�ncial ReviscA Sour(:eS and i tmc: 11cwmue: Slates Aftu ts1imiii3tlon Budgei "ha Te . Budr:R t iJ 5e5 7'.XpeIt5B5 OF Trans eri (A •i emporafy Itonl5 Revenues Tax RVenueS 21,95IU30 1,88L695 23,831,92� tacansea and Permits 1.,586,515 L586,115 Pines an Fotf7tu as 763 945 76,1045 Invesirne vl`ropcity xcvenues 770, 0 tetunvet une ital Revernues 4,05£,961 (69,0o0) 3,987,9171 Service Chary es 7,,3-52,06€) (387,640) 1,964,42E1 Other Revenue 321,w35 121,235 'Fatal Revenue 31,6x06,8116 9770,675 32,M7,481 -Items Revenue Items I43em€iii$d as fd#her: SaEas Taxes and Service Chime 9W,00(j Prnpetty "Faxes directed to Gtvurd I,umd 'Total Revenue after adjustments (71 33,4€4i,481'^••^^^^-'^^� (1:81,'1,6)5) - - 31,605,786 Expenditures C )nesting Programs PubhcSafcty 16,1$64,399 (678,91S) 16,787,441 Transl3o Eatscn '.,158,690 (31:288) 2,127,402 Lenine, Cultural and Social 8endces 4,794,451 (331463) 4,4617985 Community dndliconomicDevclopmem 3,557,270 (406,0,,5) 3,151,215 (s`ene4-al GoverfiIlviit 9.476,549 (914;4m7 5,562141 Total Operating Programs 36,553,759 x;,363.532) 34,�i53[i227227 Total Expenditures 36,853,759 (2,363,532) 34,490.'x27 .--m—•� 1Lx enddtu- Items Icdentitled as Other: � Pen jncreases -� 589,940 Vaca cies (52(1,(N)0) Budget Savings (700,€37x)? Voluntary Leave Without ray 5€Afx1) (1n0,Ck�lli No cash out nL Admin. Leie (150 (xy)) Employee medicalptemittrn savitxg,s (553,7(10) Pay raise., not budgeted at dept leve3 )S 1 833 Total Expenditures including adjustments a,% xhnve � 33,68:0 33,589,.306 Reveuuosll{`xpvnditures (OverlL rider) (5,246,953) 3 344,297 (1,902,746) 0/ (701,8190 (1,983 41.4) Other Sources (uses) Operating I'ransfeaIn 6,380,227 (413,972) 59662.5.5 5,96,255 5,966,355 �f Operating fxasr2ersOut (,IA90,867) (828,662) (5,319,529) f (5,319,529) (5,31'9,529)/ Llimmate'1'r=Spo€utionDefici1: a" 2v7yf)) Other Snurcas il.Tsys} 2,701,4 A (1,027,267) 1,674,I37 Tel alOther Sources(Uses) 4;590,765 (2„�,G9,901) 2,320,864 619,93' 646,717 19etRevcnpea, Hal%rrditures 4nd Transfers CA -_418,117 (7,336,7867 Food Balance Beginning of the Year 3,203,841 (1_431,910) 7,771,931 1 1.,771,931 2,790,4413 i%dlusLmcnt to Pune! Balance Fund Balance End of the Year• Resezved Far Debt Service l�sl�imfried I1CSCil� Usresea�re 2,547,652 357,17(}31 2'19(1'(48 Total Fund Holorace 2 S 357 fs4➢4 27190,448 2 19(1®4,9 ___85&260 65 x131{