HomeMy WebLinkAboutAgenda Report - March 14, 2006 B-01 SMAGENDA ITEM E-1
kZ% CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: City Council review and provide direction to the Budget/Finance Committee with
regard to the Fiscal Year 2006-07 Budget.
MEETING DATE: March 14,2006
PREPARED BY: James R. Krueger, Deputy City Manager
RECOMMENDED ACTION: That City Council provide direction to the Budget/Finance
Committee with regard to the 2006-07 Budget.
BACKGROUND INFORMATION: The City Council established the Lodi Budget Committee in June
2005 and made appointments of Committee members in July, 2005.
The Committee has met over the last seven months and discussed
various topics including historical expenditures and revenue data,
the citizens sales tax initiative, internal services funds for fleet and
facilities maintenance, electric utility ownership, deferred
maintenanceof streets and Local Services Funding Options and
Analysis.
The Budget Committee and City Council have expressed the desire to meet and discuss the role of the
Committee in order to clarify areas of mutual concern and interest prior to the upcoming 2006-07 budget
process. Staff suggests that the following issues be discussed at the meeting on March 14:
General Concerns and issues- City Council and Budget Committee are invited to discuss items of
general concern related to the upcoming budget process (Budget Calendarwill be available at the time of
the meeting).
Internal Services Funds for Facilities and Fleet Maintenance- The concept of establishing internal
services funds has been discussed with the Budget Committee and an advisory recommendation to
establish and implement these funds has been made by the Budget Committee. The establishment of the
funds will afford the opportunity to establish a mechanismfor charging both the cost of operations and
the ultimate replacement of equipment and facilities in a fair and equitable fashion to the users of these
resources.
Deferred Maintenance of City Facilities- It has been estimated that as much as $2- 4 million in
deferred maintenance costs have been incurred. If these costs were included in the funding needs for the
current budget or in the 2006-07 Budget it would cause the budgets to be out of balance. This challenge
will not go away with time and in fact will be exacerbated by the effects of increased maintenance
demands that will result as time passes. Recommendations for funding of this need are welcome from
the Budget Committee and it is suggested that this direction be given to the Committee for their
consideration.
APPROVED:
Blair King, City Manage?
Impact of new development on delivery of services- Analyze, assess and recommend mitigations if
necessary of impacts of new development upon existing services.
Program budgets- During the course of budget discussions and deliberations, it may be necessaryto
consider budget reductions. The Budget Committee is invited to make recommendations to the City
Council on an approach to delineating programs within City Departments that would afford opportunities
for consolidation, elimination or other methods of better service delivery.
These are the major areas that staff recommendsfor consideration of direction by the City
Council to the Budget Committee to address for the 2006-07 Budget.
L117"O
R. Krueger, Deputy City Man ger
Budget Calendar
2006-07
cr,n u, March 13,2006
3/13/2006
6:09 PM
Departments receive target expenditures for 2006-07 Budget
amounts
Week of March 27,2006
Department meetings with City Manager and Deputy City
Manager and Budget Manager
Police
Fire
Public Works — Administration, Engineering, Fleet & Facilities
Water/Wastewater
Capital Projects
Electric
Week of April 5,2006
Department meetings with City Manager, Deputy City
Manager and Budget Manager
Parks & Recreation
Community Development
Hutchins Square
Library
April 10,2006 Budget Committee meets to discuss 2006-07 Budget
assumptions and budget targets.
Week of April 12,2006
Department meetings with City Manager, Deputy City
Manager and Budget Manager
City Manager Administration
City Manager -Community Promotion
Internal Services:
Information Systems
Human Resources
V13/2006
,6.09 PM
Finance
City Attorney
City Clerk
Non -Departmental
April 24. 2006 Budget Committee meets to discuss advisory recommendations
to be made to City Council for 2006-07 Budget.
May 2, 9, 16, 23 Special Meetings with City Council to hear presentations by
City Departments
May 2- Police, Fire, Public Works Admin
May 9- Water, Wastewater and Electric Utility, Capital Projects
May 16- Community Development, Parks and Recreation,
Hutchins Square, Library, City Manager, City Clerk,
City Attorney, Finance, Information Systems and
Human Resources
Mag 17,2006 Regular Meeting
Budget Document presented to City Council at regular meeting
June 7,2006 Regular Meeting
Adopt 2006-07 Budget, Adjust Gann Appropriations
limitation and Adopt Resolution appropriating
budget amounts
June 21,2006 Regular Meeting available for additional deliberations if
needed