HomeMy WebLinkAboutAgenda Report - January 16, 2008 K-03AGENDA ITEMK�os
• CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Mid Year Review of 2007-08 Budget and Infrastructure Replacement
Program and Adoption of Resolution Revising the 2007-08 Operating and
Capital Improvement Budgetfor the Fiscal Year Beginning July 1, 2007 and
Ending June 30, 2008
MEETING DATE: January 16, 2008
PREPARED B Y Jim Krueger, Deputy City Manager
RECOMMENDED ACTION: Receive presentation on 2007-08 Mid -year budget review, adopt
attached Resolution revising the 2007-08 Operating and Capital
Improvement Budget for the fiscal year beginning July 1, 2007 and
ending June 30, 2008, and revise position titles to Assistant Planner and Senior Building Inspector, and
add a Code Improvement Officer-Supervisorposition.
BACKGROUND INFORMATION: Staff has prepared a power point presentation that highlights financial
information for major city funds and shows the proposed budget
adjustments.
The following are the primary elementsthat will be reviewed with the City Council. The items are grouped by
fund to allow for easy review and summarization.
General Fund
Projected Fund Balance at June 30,2008 (without any proposed adjustments):
The ending fund balance is projected to increaseto $5 million in comparison to the budgeted balance of $3.5
million. The actual balance at June 30, 2007 was approximately $5.2 million and will decrease slightly as a
result of the revenues being less than expenditures. This is a net amount that reflects several items of
revenue and expenditures. Fund balance projected at June 30, 2008 is $4.87 million after the adjustments
as proposed and explained below.
• Projected expenditure savings of $1,000,000
- Health Insurance, workers compensation and vacancies
• Revenue shortfall projected at $1,175,000
- Mostly due to property tax and sales tax dips from budgeted amounts
Proposed Budget Adjustments:
• Transfer to Equipment Replacement Fund $89,000 for failing radio equipment at Police Department.
This will replenish the fund to a positive amount as of June 30, 2008.
Public Works - Graffiti abatement $40,000. This will restore the program to the Public Works
Department.
Appropriate $20,000 to Non -Departmental accounts for the training and development of Board
and Commission members through attendance at seminars and/or conferences.
APPROVED:
HWKing, City Manager
One -Time Adjustments (see note below`') :
Purchase of Fire Dispatch, Equipment $190,000.
• New computer software for City Clerk to record and maintain cataloging system for $50.000.
Web camera in downtown $10,000.
These items will be funded with onetime revenue from the Flag City connection $250,000.
Other Adjustments
• Transfer from Parks Donations to Parks Budget $11,875 for various small projects including
riverbank repair at Lodi Lake.
Electric Fund
•
Revenues projectedto be higherthan budget.
- One time revenue from sale to Roseville of Combustion Turbine rights ($3.25 million) and
less than expected operating revenues ($1.1 million less) make expected revenues higher
than budgeted.
• Non-poweroperating costs ($389,503 projected savings in expenditures).
• Net Bulk power costs -expected to beat budget level.
Fund Balance - Projected at June 30, 2008, $8.63 million balance unreserved and unrestricted - up from
budgeted $7.1 million balance primarilydue to sale to Roseville of Combustion Turbine rights.
Wastewater Utility Fund
• Revenues are expected to increase by $17.3 million due to issuance of Wastewater Treatment Plant
COPS.
• Expenditures are expected to increase by $14.3 million due to construction of Phase 3 improvements
to White Slough Wastewater Treatment Plant and major trunk line replacement. Proposed budget
increase to include all Phase 3 expenditures and trunk line replacement.
• Fund Balance projected at June 30, 2008 an unreserved and Unrestricted balance of $8.6 million.
- Unreserved target is 30% of capital assets and equals $15 million.
- Cumulative amount collected and earmarked for Infrastructure Replacement Balance equals
approximately $11.3 million.
Infrastructure replacement program needs to be balanced against unreserved target. Phase
3 and trunk line replacement are significant elements of the infrastructure replacement
program.
Water Utility Fund
• Revenues - Revenues are projectedto increase by $3.26 million due to PCEITCE settlements.
• Expenditures - Expenditures are projected to increase by $4.45 million due to PCEITCE clean up
and litigation.
• Fund Balance - Projected at June 30,2008, $558,639 balance unreserved and unrestricted.
- Unreserved target is 30% of Capital Assets =s -$10 million.
- Cumulative amount collected and earmarked for Infrastructure Replacement Balance =s
-$7.5 million.
- Infrastructure replacement program needs to be balanced against unreserved target.
Replacement program is ongoing and will continue but not at level of infrastructure revenues
as shown on utility bills.
Vehicle Replacement Fund
Revenues -Revenues in this fund come from transfers made from General Fund departments that
utilize vehicles.
• Expenditures- Expenditureswill exceed budgeted amount by $189,565.
• Fu nd Balance - June 30, 2008 unreserved and unrestricted balance projected at $1.65 million.
* Note- Although a fund transfer was discussed with Council on January 8, 2008, it is being delayed until
revisions to the vehicle replacement policy can be updated.
Self Insurance Fund
Revenues in this fund come from transfers made from all operating budgets.
Claims experience in FY 2007-08 for workers compensation and general liability has been as
expected and will continue to be reflected in expenditures that will be at or lower than the budget.
The total cash balance is expected to approximate $6 million at June 30, 2008. As a result of
continued favorable claims experience, the cash balance is projected to increase by approximately
$667,873. This will bring the combined cash balance for workers compensation, general liability and
other insurance to full funding at the 70% confidence level.
In addition to the financial elements already conveyed, there are several position changes that will be
proposed as follows:
Proposed Position: Assistant Planner. The position was budgeted as a Transportation Technician.
Rationale: Because of increased workload created by increases in the numbers of riders and new
federal reporting and grant requirements, a new position was requested and included in the current
budget. The position was originally proposed as a Transportation Technician, but the complexity of the
duties and responsibilities of this position necessitate a different classification to better recruit an
individualwith the knowledge and skills to be successful.
Proposed Position: Senior Building Inspector. The position was budgeted as a Plan Check
Engineer.
Rationale: Originally, this position was titled Senior Building Inspector. In the budget, the title was
changed to Plan Check Engineer, though with the same salary range. That position had yet to be filled.
Plan Check Engineers are highly technical professionals and difficult to recruit. In order to meet the
needs of the department without increasing the salary, the position should revert back to a Senior
Building Inspector.
New Position: Code Improvement Officer -Supervisor.
Rationale: The Code Enforcement Department will be moving from Community Development to
the Police Department. The individual who supervised that unit in Community Developmentwill not be
moving and therefore a supervising Code Improvement Officerto provide the technical and supervisory
knowledgefor that unit is required. This positionwill also take the responsibilities currently assigned to
the contract Senior Code Enforcement Officer (this position is currently working 3 days perwork). This is
a contract for services which was budgeted and therefore there is no budget impact in the current year.
Fiscal Impact: The proposed budget adjustments (Graffiti abatement and Commissions Boards and
Committee education and training adjustment) will have an impact of $60,000 in the current fiscal year. It
is anticipatedthat the impact in subsequent years would be approximately $100,000 per year for the
same items. The proposed transfer of $89,000 to the equipment replacementfund has a single year
impact. The items comprising $261,875 ($190,000 for Fire dispatch equipment, $10,000 for the web
camera, $50,000 for the minute archiving system and $11,875for Parks and Recreation related items)
are all offset with revenues and have no impact on the General Fund budget.
Budget: The account numbers and the amounts are included on the attached resolution
Respectfully submitted,
CLX-�� , 9�
a es Krueger, DelputyGtity Manager
Fiscal Year 2007-08 Mid-Year Budget
Presentation
January 16, 2008
General Fund Summary
6/30/08 Projected Fund Balance (without any proposed adjustments):
• Fund Balance projected to be $5 million compared to $3.5 million budgeted
amount. The balance at June 30, 2007 was $5.2 million and will decrease
slightly as a result of a net revenue shortfall and expenditure savings.
• Projected expenditure savings of $1,000,000.
— Health insurance, workers compensation and vacancies.
• Revenue shortfall projected at $1,175,000.
— Primarily due to Property Tax and Sales Tax dips from budgeted amounts.
Proposed Budget Adjustments:
• Transfer to Equipment Replacement Fund $89,000 for failing radio equipment in
Police Department.
• Graffiti abatement appropriation $40,000 in Public Works Department.
• Appropriate $20,000 to Non -Departmental accounts for training and
development of Board and Commission members through attendance at
seminars and/or conferences.
Projected 6/30/08 Fund Balance: $4.87 million (after above adjustment).
2
General Fund Summary (continued)
One time adjustments:
• Fire dispatch and equipment
• City Clerk minutes system
• Web cam in downtown
Offset by Flag City connection revenue
Other Adjustments:
• Transfer from Parks Donations to Parks
budget for various small projects
including riverbank repair at Lodi Lake
$190,000
50,000
10,000
$2507000
$ 11,875
3
General Fund
Fund Balance (Net Assets)
Beginning Fund Balance Unreserved
Statement of Changes in Fund Balance
For the Fiscal Year Ended June 30, 2008
With Actuals for Fiscal Year 2006-07 and Comparative Budget Fiscal Year 2007-08
Audited
2006-07 2007-08 2007-08
Actuals Budget Estimated Actuals
Budgetto Budgetto
Est Actuals Est Actuals
Variance $ Variance %
3,048,435 3,500,000 5,175,522 1,675,522
Revenues 43,982,425 44,873,225 43,963,000 (910,225) -2.1%
Expenditures 41,855,338 44,873,225 44,268,800 (604,425) -1.4%
Net Difference 2,127,087 (305,800) (305,800)
Fund Balance (Net Assets)
Ending Fund Balance Unreserved 5,175,522 3,500,000 4,869,722 1,369,722
1 1 1 1 1 1
1/2
1/4 3/4
E F ($8.8m)
General Fund
$4,869,722
Electric Fund Summary
• Revenues projected to be higher than budget.
— One time revenue from sale to Roseville of Combustion Turbine
rights ($3.25 million) and less than expected operating revenues
($1.1 million less) make expected revenues higher than budgeted.
• Non -power operating costs ($389,503 projected savings in
expenditures).
• Net Bulk power costs: expected to be at budget level.
• Projected 6/30/08 Fund Balance: $8.63 million unreserved and
unrestricted - up from budgeted $7.1 million, primarily due to sale
to Roseville of Combustion Turbine rights.
5
Electric Fund
Fund Balance (Cash)
Beginning Cash Unreserved
Statement of Changes in Fund Balance
For the Fiscal Year Ended June 30, 2008
With Actuals for Fiscal Year 2006-07 and Comparative Budget Fiscal Year 2007-08
Audited
2006-07 2007-08 2007-08
Actuals Budget Estimated Actuals
Budgetto Budgetto
Est Actuals Est Actuals
Variance $ Variance %
3,631,402 5,571,823 5,514,496 (57,327)
Receipts 66,953,853 77,282,257 79,427,776 2,145,519 2.7%
Disbursements 65,070,759 75,454,770 76,308,128 853,358 1.1%
Net Difference 1,883,094 1,827,487 3,119,648 1,292,161
Fund Balance (Cash)
Ending Cash Unreserved
5,514,496 7,099,310 8,634,144 1,534,834
1/2
1/4 3/4
E F ($12.9m
Electric Fund
$8,634,144
Water Fund Summary
• Revenues: Revenues are projected to increase by $3.26 million
due to PCE/TCE settlements.
• Expenditures: Expenditures are projected to increase by $4.45
million due to PCE/TCE clean up and litigation.
• Projected 6/30/08 Fund Balance: $558,639 unreserved and
unrestricted.
- Unreserved target is 30% of Capital Assets =s -$10 million
- The cumulative amount collected and earmarked for Infrastructure
Replacement Balance =s -$7.5 million
- Infrastructure replacement program needs to be balanced against
unreserved target. Replacement program is ongoing and will continue
but not at level of infrastructure revenues as shown on utility bills
7
Water Fund
Fund Balance (Cash)
Beginning Cash Unreserved
Statement of Changes in Fund Balance
For the Fiscal Year Ended June 30, 2008
With Actuals for Fiscal Year 2006-07 and Comparative Budget Fiscal Year 2007-08
Audited
2006-07 2007-08 2007-08
Actuals Budget Estimated Actuals
Budgetto
Budgetto
Est Actuals
Est Actuals
Variance $
Variance %
946,119 534,780 (475,262) (1,010,042)
Cash receipts 11,420,093 18,963,700 22,227,677 3,263,977 14.7%
Cash disbursements 12,841,474 16,740,528 21,193,776 4,453,248 21.0%
Net Difference (1,421,381) 2,223,172 1,033,901 (1,189,271)
Fund Balance (Cash)
Ending Cash Unreserved
(475,262) 2,757,952 558,639 (2,199,313)
1/2
114 3/4
E F ($10 m)
Water Fund
$558,639
Wastewater Utility Fund Summary
• Revenues: Revenues are expected to increase by $17.3 million due to
issuance of Wastewater Treatment Plant COPs.
• Expenditures: Expenditures are expected to increase by $14.3 million due to
construction of Phase 3 improvements to White Slough Wastewater
Treatment Plant and major trunk line replacement. Proposed budget increase
to include all Phase 3 expenditures and trunk line replacement.
• Projected 6/30/08 Fund Balance: $8.6 million unreserved and unrestricted.
- Unreserved target is 30% of Capital Assets =s -$15 million
- The cumulative amount collected and earmarked for Infrastructure
Replacement Balance =s -$11.3 million
— Infrastructure replacement program needs to be balanced against unreserved
target. Phase 3 and trunk line replacement are significant elements of the
infrastructure replacement program.
0
Wastewater Fund
Fund Balance (Cash)
Beginning Cash Unreserved
Statement of Changes in Fund Balance
For the Fiscal Year Ended June 30, 2008
With Actuals for Fiscal Year 2006-07 and Comparative Budget Fiscal Year 2007-08
Audited
2006-07 2007-08 2007-08
Actuals Budget Estimated Actuals
Budgetto Budgetto
Est Actuals Est Actuals
Variance $ Variance %
1,866,805 1,757,400 4,956,069 3,198,669
Cash Receipts 11,445,320 39,066,024 56,377,800 17,311,776 30.7%
Cash Disbursements 8,356,056 38,424,331 52,685,264 14,260,933 27.1%
Net Difference 3,089,264 641,693 3,692,536 3,050,843
Fund Balance (Cash)
Ending Cash Unreserved
4,956,069 2,399,093 8,648,605 6,249,512
1/2
114 3/4
E A F ($15 m)
Wastewater Fund
$8,648,605
Vehicle Replacement Fund Summary
• Revenues: Revenues in this fund come from transfers made from
General Fund departments that utilize vehicles.
• Expenditures: Expenditures will exceed budgeted amount by $189,565.
• Projected 6/30/08 Fund Balance: $1.65 million unreserved and
unrestricted.
11
Statement of Changes in Fund Balance
For the Fiscal Year Ended June 30, 2008
With Actuals for Fiscal Year 2006-07 and Comparative Budget Fiscal Year 2007-08
Vehicle & Equipment Replacement Fund
Fund Balance (Net Assets)
Beginning Fund Balance Unreserved
Audited Budget to
2006-07 2007-08 2007-08 Est Actuals
Actuals Budget Estimated Actuals Variance $
288,584 628,380 1,289,054 660,674
Budget to
Est Actuals
Variance %
Revenues 1,342,707 790,230 903,835 113,605 12.6%
Expenditures 342,237 350,811 540,376 189,565 35.1%
Net Difference 1,000,470 439,419 363,459 (75,960)
Fund Balance (Net Assets)
Ending Fund Balance Unreserved
1,289,054 1,067,799 1,652,513 584,714
1/2
1/4 3/4
E F ($2.2 Mil)
Vehicle Replacement
$1,652,513
Self Insurance Summary
• Revenues: Revenues in this fund come from transfers made from all
operating budgets.
• Expenditures: Claims experience in FY 2007-08 for workers
compensation and general liability has been as expected.
• Projected 6/30/08 Fund Balance: Total cash balance expected to
approximate $6 million. The cash balance is projected to increase by
approximately $667,873 as a result of continued favorable claims
experience. This will bring the combined cash balance for workers
compensation, general liability and other insurance to full funding at the
70% confidence level.
13
Self Insurance Fund
Fund Balance (Net Assets)
Cash Balance
Statement of Changes in Fund Balance
For the Fiscal Year Ended June 30, 2008
With Actuals for Fiscal Year 2006-07 and Comparative Budget Fiscal Year 2007-08
Audited
2006-07 2007-08 2007-08
Actuals Budget Estimated Actuals
Budgetto
Budgetto
Est Actuals
Est Actuals
Variance $
Variance %
4,133,154 4,305,670 5,318,127 1,012,457
Revenues 3,484,197 3,277,260 3,058,658 (218,602) -7.1%
Expenditures 2,299,224 2,949,147 2,390,785 (558,362) -23.4%
Net Difference 1,184,973 328,113 667,873 339,760
Fund Balance (Cash)
Cash Balance
5,318,127 4,633,783 5,986,000 1,352,217
1/2
1 /4 3/4
E 0 F ($6.0 Mil)
for 70%
confidence
Self -Insurance Fund level
$5,986,000
Community Development Fund Summary
• Revenues: Revenues projected to be lower than budget.
— The slowdown in building activity will result in a reduction of
revenues (compared to budget) of $500,000.
• Expenditures: As a result of vacancies, expenditures will be less than
budgeted by approximately $80,000.
• Projected 6/30/08 Fund Balance: is projected to a be a cumulative
deficit of ($561,000).
15
Commun
Statement of Changes in Fund Balance
For the Fiscal Year Ended June 30, 2008
With Actuals for Fiscal Year 2006-07 and Comparative Budget Fiscal Year 2007-08
nt Fund
Fund Balance (Net Assets)
Beginning Fund Balance Unreserved
Audited Budget to
2006-07 2007-08 2007-08 Est Actuals
Actuals Budget Estimated Actuals Variance $
68,692 1,661 (177,024) (178,685)
Budget to
Est Actuals
Variance %
Revenues 1,821,426 1,991,001 1,491,001 (500,000) -33.5%
Expenditures 2,067,142 1,954,764 1,874,764 (80,000) -4.3%
Net Difference (245,716) 36,237 (383,763) (420,000)
Fund Balance (Net Assets)
Ending Fund Balance Unreserved (177,024) 37,898 (560,787) (598,685)
1 1 1 1 1 1 1
1/2
1/4 3/4
E F ($o)
Community Development
-$560,787
Position Control
CITYWIDE - 458 Total Positions
427 Filled
31 Recruitment in Process
17
Position Control
ADMINISTRATION - 51 Total Positions
City Manager
4 Filled
0 Recruitment in Process
Human Resources
5 Filled
0 Recruitment in Process
Finance
19 Filled
0 Recruitment in Process
City Attorney
3 Filled
0 Recruitment in Process
Information Systems
8 Filled
0 Recruitment in Process
Budget
5 Filled
3 Recruitment in Process
City Clerk
4 Filled
0 Recruitment in Process
im
Position Control
POLICE -120 Total Positions
116 Filled
4 Recruitment in Process
19
Position Control
FIRE - 64 Total Positions
58 Filled
6 Recruitment in Process
20
Position Control
ELECTRIC UTILITY - 47 Total Positions
42 Filled
5 Recruitment in Process
21
Position Control
PUBLIC WORKS -108 Total Positions
Administration
3 Filled
0 Recruitment in Process
Engineering
17 Filled
1 Recruitment in Process
Fleet and Facilities
15 Filled
0 Recruitment in Process
Streets
28 Filled
1 Recruitment in Process
Water/Wastewater
36 Filled
5 Recruitment in Process
Transit
1 Filled
1 Recruitment in Process
22
Position Control
COMMUNITY DEVELOPMENT -15 Total Positions
14 Filled
Recruitment in Process
23
Position Control
PARKS AND RECREATION - 30 Total Positions
28 Filled
2 Recruitment in Process
24
Position Control
LIBRARY -14 Total Positions
14 Filled
0 Recruitment in Process
25
Position Control
COMMUNITY CENTER - 9 Total Positions
7 Filled
2 Recruitment in Process
26
Dated: January 16,2008
I hereby certify that Resolution No. 2008-09 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held January 16, 2008, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Katzakian, and
Mayor Mounce
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS— None
4RA OL
City Clerk
2008-09
City Council
Approved
Adjustments
City Council
Revised
General Fund Transfer Out
4.233.933
89.000
4.322.933
Equipment Fund Transfer In
65,447
89,000
154,447
General Fund Public Works
3,500,297
40.000
3.540.297
General Fund Non -Departmental Services
19,384 270,000
289,384
General Fund Other Revenue
217.861 250.000
467.861
General Fund Parks Division
2,371,414
4,6501
2,376,064
Parks and Recreation Capital
0
7.2251
7.225
Parks and Recreation Expendable Trust I 0 I 11,8751 11,875
Dated: January 16,2008
I hereby certify that Resolution No. 2008-09 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held January 16, 2008, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Katzakian, and
Mayor Mounce
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS— None
ABSTAIN: COUNCIL MEMBERS— None
4RA OL
City Clerk
2008-09