HomeMy WebLinkAboutAgenda Report - January 20, 2010 J-01AGENDA ITEM :Y## 1
CITY OF LODI
,. COUNCIL COMMUNICATION
Im
AGENDA TITLE: Adopt Resolution Approving Fiscal Year 2009/10 Mid year Budget Adjustments
MEETING DATE: January 20,2010
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Adopt resolution approving Fiscal Year 2009/10 Mid -year budget
adjustments.
BACKGROUND INFORMATION: City staff has done an admirable job of managing the organization
during a time of significant fiscal turmoil. Despite falling revenues
and shrinking staff numbers, staff has maintained most services at
levels consistent with prior years. The City has enjoyed the cooperation of all of its bargaining units in
helping to maintain a balanced budget.
The City of Lodi has weathered the recent fiscal storm without having to resort to significant layoffs
and/or service eliminations to balancethe most recent budgets. Over the last five years, although not
without difficulty, the City has remained relatively healthyfrom a fiscal perspectiveas a result of
continuous, active fiscal management. In short, the City managed cost reductions and staffing reductions
in concert with declining revenues. While other cities have had to make sudden and severe course
corrections, Lodi has met reductions in revenuewith prompt but more gradual declines in expenditures.
In spite of this economy, Lodi has worked to bring itself back from the brink and develop a modest
General Fund reserve. The projected unreserved fund balance of $3.3 million represents 8.3 percent of
General Fund expenditures, well short of the targeted minimum reserve level of 15 percent. Revenues
for 2009/10 are projected to be $5.5 million (13 percent) lower than FY 2006/07. During the same time
period, the City has seen significant increases in salary and benefits for some represented employees.
Salary and benefits were reduced during the latter part of FY 2008/09 and have continued into FY
2009/10 as a result of contributions provided by the bargaining groups and voluntary reductions in staff.
Employee contributions, coupled with early retirement incentives, have allowed the City to avoid
significant lay-offs and provided the opportunity to manage the decline in revenues.
The following details how the City addressed a number of issues over the course of the last five years.
Personnel
Authorized staff levels have gone from a high of 480 in FY 2003/04 to the current level of 421 funded
positions.. Current filled positions total 406. The City has adopted a philosophy of examining the need for
each vacant position before filling. This analysis has resulted in cost stabilization and decreased the
amount of personnel increases.
APPROVED:
Bled-K�5g, City Manager
Operational Efficiencies
One of the mantras during tight fiscal times is to do more with less. The City has taken this concept to
heart and has implemented a number of operational efficiencies that allow City staff to offer high levels of
service with reduced staffing. For the past few years, the City has embarked on a series of studies and
reviews to ensure that our operations were managed efficiently and effectively. These studies included
an analysis cf the organizational structure, duties and responsibilities, and staffing; the results of these
studies have been a more prudent stewardship of the City's resources. This has enabled the City to
continue offering a high level of service while weathering a significant recession.
In particular, efficiencies have been realized by the City by:
• Streamlining the plan -check function between the Fire Department and Community Development,
thus reducing staff.
• Allowing utility customers to pay bills either online or through pay stations. This has reduced
walk-in traffic at the Finance Department and provided a higher level of service.
• Completing a projectthat converted paper check payments to electronic bank transfers, thereby
freeing staff time for other customer service functions within the Finance Division. Additionally,
this project results in reduced bank service charges, creating ongoing savings.
• Providing retirement incentivesto 15 employees resulting in positions remaining vacant and
generating salary savings.
Reducing reliance on outside benefits program management and labor negotiators. Bringing
these activities in-house results in permanent cost reductions.
• Settling the PCE/TCE lawsuits resulting in the elimination of outside legal services for this matter.
• Converting from Social Security to PARS for part-time staff. This decision resulted in a
permanent reduction in City costs as the City no longer pays the employer share of Social
Security for these staff.
In addition to operational efficiencies, the City has exercised its entrepreneurial muscle in a number of
areas:
• Charging market rent for the Court space.
• Increasing the solid waste franchise fee.
• Negotiating market-based rent for the land lease for the Lodi Energy Center.
• Establishing a market-ratefor tertiary -treated water for the Lodi Energy Center.
• Creating Special Revenue funds for Community Development, Community Center and Recreation
to better account for these activities.
Service Modifications
As a result of budget reductions, the City is not performing all of the services it had performed at the
same level, or at all. Furloughs of City staff reduce customer service hours to the public by about 5
percent. Some of the service reductions include:
Longer wait times on the telephones for utility customer service.
• Lack of availabilityto the public one day a month due to furloughs.
• Library closed on Fridays and three hours earlier on Thursdays.
• Browning out of a fire engine.
• Slower response time to Council requests and requests from the public.
• Less -thorough research related to special requests.
• Reduced bike patrols.
• Reduced staffing in the Police Department lobby.
• Smaller Fourth of July fireworks show.
Looking Forward
As noted earlier, the City is relatively healthy from a fiscal perspective. Our past activities have allowed
for a "glide path" approach to responding to reducing revenues. We expect the balance of FY 2009/10 to
continue on the glide path already established. As we look forward to FY 2010/11, we are not seeing
significant signs of recovery. It is expected that we will need to remain frugal in the coming year just to
stay level with our current standing. As such, it is expected that the current level of employee
contributions will be needed to allow the City to stay level.
General Fund
Revenues:
Overall, revenues are estimated at budgeted levels. No budgetary adjustments are proposed for
revenue at this time. Overall, General Fund revenues within the Fund are expected to match
estimates, but variances within individual line items are expected.
The primary General Fund Revenue sources are property taxes, sales taxes, PILOT and Vehicle License
Fees. It is projected that property taxes will come in slightly below ($40,000) budgeted levels. Sales tax
revenue is anticipated to be short of budgeted levels by about $230,000. Vehicle License Fees are
expected to be about $200,000 over budgeted levels. PILOT revenue will match the budgeted amount.
Other revenues are showing minor variances that, in total, bring estimated revenue in line with overall
budgeted revenue. Additionally, staff is reviewing all revenue throughout the City to make sure that it is
recorded properly, and is focusing on entrepreneurial -type revenue.
Expenditures:
Initial projection of General Fund expenditures is $39,935,000, a level that exceeds expected revenue by
$64,000. Without action, the fund balance will be reduced by that amount. A solution is proposed.
During the discussion of how the City would adjust its budget in response to the State's Proposition 1A
seizure of local government funds, staff proposed eliminating central purchasing as a means of reducing
General Fund expenditures. Council requested staff further explore this concept and report back. Staff
is now recommending that the City move away from the current central store and central purchasing
concept and adopt a more de -centralized purchasing philosophy. Staff has surveyed other similar -sized
jurisdictions and found that the majority of them have also adopted de -centralized purchasing processes.
Best practices for purchasing show that costs are typically reduced by just -in -time purchasing as
opposed to a classic central store operation.
Staff is recommending that two positions in the Purchasing Division be transferred to the Electric Utility.
Staff has reviewed the activities of the positions of Buyer and Senior Storekeeper and has determined
that these two positions primarily serve the Electric Utility and the Water/ Wastewater Utilities. Electric
Utility and Water/ Wastewater Utility management agree that this transfer makes operational sense. This
transfer of staff will result in a savings to the General Fund of approximately $64,000 through the
remainder of the fiscal year.
The remaining position in the Purchasing Division, Purchasing Technician, will remain in the Division, but
will be located within the Finance offices. The central purchasing duties of this position will be distributed
city-wide and the central store concept will be eliminated. Staff is developing instructions for
departmental staff to assume the purchasing of those commodities that were formerly handled centrally.
At this time, the Purchasing Technician will retain city-wide purchasing training functions and will be
available as a resourceto departments. Accounts payable duties will be added to the position in place of
the removed duties.
We have met and conferred with the bargaining unit for these employees, AFSCME, and the bargaining
unit has not objected to this proposal. We expect to be revising the job descriptionsfor all three classes
and our initial analysis indicates that such changes would not result in changes to the current
classification of the positions. Additionally, we will be revising the City's Purchasing Policy.
Wastewater Fund
Council adopted increased wastewater rates earlier this fiscal year. At the time of adoption, estimated
revenues were not increased for the expected impact of the rate increase. The attached resolution
includes the impact of the rate increases in the wastewater fund for the current fiscal year. Estimated
revenues are increased by $1,750,800 for the current fiscal year.
Public Works Staffing
Council adopted the Sanitary Sewer Master Plan (SSMP) earlier this year and approved two additional
positions for Public Works. Public Works also requested an additional position that was not approved at
that time. Since the adoption of the SSMP, Public Works has reviewed the associated staffing
requirements and is proposing a number of staffing changes and reorganizations.
Approval of the following position additions and changes is requested.
Deputy Public Works Director-Water/Wastewater/Streets
This position would combine the existing Water Services Manager and Streets and Drainage Manager
positions, resulting in the net reduction of one position. The Deputy Public Works Director would provide
expanded engineering oversight of the Streets and Drainage and Laboratory & Environmental
Compliance Divisions. The storm drainage permit, sanitary waste discharge permit, wastewater
collection permit and Air Quality District compliance requirements for controlling fugitive particulates
greatly increases the need for knowledge and understanding of engineering sciences in these divisions'
operations, thereby requiring management by a registered civil engineer. Four Superintendents would
directly report to the Deputy Public Works Director. Future duties would include management of the
Mokelumne Water Treatment Plant. Salary is expected to be at the same level as the existing
classification of City Engineer/Deputy Public Works Director, $9,065.32 to $11,012.40 per month with the
initial salary fixed at the C step ($9,994.49) until the salary is properly aligned with the Public Works
Director. Costs for the balance of the fiscal year are estimated to be $5,400 and will be funded through
the water, wastewater and streets funds.
Laboratory Services and Environmental Compliance Superintendent
This position is a reclassification of the existing Laboratory Services Supervisor position. The need for
the Superintendent position is driven by the SSMP and includes duties that were previously performed by
the Water/Wastewater Superintendent. In addition to the duties of the former Supervisor classification,
the Superintendent is responsible for management of the DBCP Settlement Case, management of the
water system reporting requirements to the California Department of Public Health, preparation of the
Annual Water Quality Report, maintenance of well performance records, calculation of charges to new
development for wastewater treatment capacity and coordinating operational adjustments such as
chlorine dosing and system operation with water system operators to maintain water quality
requirements. Over the years, the job duties have evolved to become more technical, requiring more
specialty knowledge in order to maintain compliance with the State's monitoring and reporting
requirements at the wastewater treatment plant. These new duties require a higher level of knowledge,
skills and abilities. Compensation is expected to be parallel with Water/Wastewater Superintendent
($6,120.82 to $7,439.90 monthly). Savings for the balance of the fiscal year are estimated to be $200.
Water/Wastewater Supervisor
This position is a reclassification of an existing Senior Plant and Equipment Mechanic. The role of this
Senior Plant and Equipment Mechanic has evolved into a working supervisory role as new staff members
and responsibilities were added to the maintenance operations of the wastewater treatment plant.
Recently completed plant upgrades include additional treatment infrastructure, process enhancements
and the addition of technologically advanced systems, such as the ultraviolet disinfection facilities, the
de -nitrification facilities in the aeration basins, and the rotating fine screens at the head works along with
an additional clarifier and digester. These changes have presented the need for separating the
maintenance activities from the operations activities and drive the creation of a separate maintenance
unit. The Supervisor position is responsible for the maintenance team of four positions. No changes to
the salary for this existing classification are proposed. Salary for the Water/Wastewater Supervisor is
$4,770.83 to $5,799.13 monthly. Costs for the balance of the fiscal year are estimated to be $5,700,
which would be absorbed by the Water and Wastewater utilities.
Streets and Drainage Superintendent
This position is intended to combine the remaining duties of the Streets and Drainage Manger with the
Assistant Streets and Drainage Manager and create a single new position of Streets and Drainage
Superintendent. A portion of the duties of the Streets and Drainage Managerwere folded into the Deputy
Public Works Director position described above. Compensation is expected to be parallel with
Water/Wastewater Superintendent ($6,120.82 to $7,439.90 monthly). This reclassification is cost neutral
as the incumbent is currently paid out -of -class at the target level.
Compliance Engineer
This position is a new position requiredto handle the additional professional level analyticalwork needed
under the SSMP. This position will have leadership and collaborative responsibilities for a variety of
highly complex tasks and projects within the Public Works department. This position will provide
guidance and support to management staff in the areas of budget development, rate models and rate
analysis, development and oversight of various contracts and agreements, environmental analysis and
impacts and the generation and publication of various strategic reports. The position will require an
individual with an engineering registration and a strong background in financial, program and
management analysis, written and oral communication skills and knowledge of water, wastewater and
streets functions within a municipal public works department. Proposed salary is equal to that of an
Associate Civil Engineer ($5,813.22 to $7,066.00 monthly). Costs for the balance of the fiscal year are
estimatedto be $10,200 paid through the Water and Wastewater funds.
The above position changes result in no change in total positions authorized within Public Works.
Aggregate net costs for the balance of the fiscal year are estimated to be $21,100.
FISCAL IMPACT: Absent any actions, the General Fund is projected to close the year with a shortfall
of about $64,000. Staff is recommending a reorganization of the Purchasing
function that will result in General Fund savings that will eliminate that shortfall.
Additionally, staff is recommending a number of position changes within Public
Works that will result in additional costs of $21,100 within the Wastewater Utility.
The additional costs will be absorbed by the additional revenues generated from
the previously approved rate increase.
Jordan Ayers
Deputy City Manager
JA/ja
Attachment:
Resolution
RESOLUTION NO. 2010-06
A RESOLUTION OF THE LODI CITY COUNCIL
AMENDING THE CITY OF LODI FINANCIAL PLAN AND
BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1,
2009 AND ENDING JUNE 30, 2010
WHEREAS, the City Council adopted a balanced Financial Plan and Budget for
Fiscal Year 2009-10 on June 10,2009; and
WHEREAS, the adopted 2009-10 Financial Plan and Budget was prepared in
accordance with the City Council's goals, budget assumptions, and policies; and
WHEREAS, revisions to the adopted 2009-10 Financial Plan and Budget are
necessary to address operating changes and previously approved revenue increases.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi
does hereby revise the adopted 2009-10 Financial Plan and Budget as follows:
1. Approve the de -centralization of the purchasing function by:
a. transferring one Buyer and one Senior Storekeeper position to the
Electric Utility, and
b. eliminating the central store operation, and
c. reducing the appropriations in the Purchasing business unit
(100422) by $64,000, and
d. absorbing the increased costs within the Electric Utility.
2. Increase estimated revenues in the Wastewater fund by $1,750,800.
3. Approve the re -organization of Public Works including:
a. creating the position of Deputy Public Works Director — Water/
Wastewater and Streets and deleting the positions of Water
Services Manager and Streets and Drainage Manager, and
b. reclassifying the position of Laboratory Services Supervisor to
Laboratory Services and Environmental Compliance
Superintendent and deleting the position of Laboratory Services
Supervisor, and
c. reclassifying the position of Senior Plant and Equipment Mechanic
to Water/Wastewater Supervisor and deleting the position of
Senior Plant and Equipment Mechanic, and
d. reclassifying the position of Assistant Streets and Drainage
Manager to Streets and Drainage Superintendent and deleting the
position of Assistant Streets and Drainage Manager, and
e. creating the position of Compliance Engineer, and
f. absorbing increased costs of $21,100 within existing
appropriations.
Dated: January20, 2010
hereby certify that Resolution No. 2010-06 as passed and adopted by the City
Council of the City of Lodi in a regular meeting held January 20, 2010, by the following
votes:
1) In reference to the de -centralization of the purchasing function:
AYES: COUNCIL MEMBERS— Hansen, Hitchcock, Johnson, and
Mayor Katzakian
NOES: COUNCIL MEMBERS — Mounce
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
2) In referenceto the re -organization of Public Works:
AYES: COUNCIL MEMBERS — Hansen, Johnson, and
Mayor Katzakian
NOES: COUNCIL MEMBERS— Hitchcock and Mounce
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
3) In reference to the increase in estimated revenues in the Wastewater
fund:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Mounce,
and Mayor Katzakian
NOES: COUNCIL MEMBERS— None
ABSENT: COUNCIL MEMBERS— NZNDI
ABSTAIN: COUNCIL MEMBERS —
tJOHL
City Clerk
2010-06
FY 2009/10 Mid-Year
Budget Update
Lodi City Council
January 20, 2010
FY 2009/10 Mid -Year
Local economy is struggling
Unemployment rate doubled in two years
Foreclosures lower than in SJC overall, but
still twice national average
Significant downturn in merchant sales
2
18
16
14
12
10
FY 2009/10 Mid -Year
Unemployment rate,, 2000-2009
San Joaquin County Lodi State
Source: California Employment
Development Department,
Jan. 2000 -Nov. 2009 3
FY 2009/10 Mid -Year
Foreclosures
Lod ■ San Joaquin ■ California ■ National ■
1.20
1.00
0.40
oL 0.20
1 w
Lalli San Joaquin Calkimia National
Source: RealtyTrac 4
December
2009
FY 2009/10 Mid -Year
Industry Groups
Quarters Shown Reflect the Period in Which the Sales Occurred - Point of Sale
Q3 Q4 I Q1 Q2 Q3 Q4 I Q1 Q2 Q3 Q4 I Q1Q2
Source: H d L 107 '07 W '07 '0§ '08 'OS '08 '09
s
(Thousands)
700 Sales
630 trends
51513 over 13
490 quarters
420
350
2P0
210
140
70
General Consumer Goods
Outlets = 878
Autos And Transportation
on on on on
Outlets =727
Fuel And Sennce Stations
00 M11% 0
Outlets = 34
/
00`
Restaurants And Hotels
. ■ . ■ .. . . ■ .. . .. I. .. . ..Outlets -199
\'
0000%,
Building And Construction
■I■1■1.1■I■1■I■1■I■I■II
Ilk
Outlets = 99
1111 .7 1
r
1
BusinessAndlndusty
111 _ 1111
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Outlets =351
= 00I1
1 1,1, r
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1 1 11
00
�100`
Food And0rugs�
Poo 0
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Q3 Q4 I Q1 Q2 Q3 Q4 I Q1 Q2 Q3 Q4 I Q1Q2
Source: H d L 107 '07 W '07 '0§ '08 'OS '08 '09
s
(Thousands)
700 Sales
630 trends
51513 over 13
490 quarters
420
350
2P0
210
140
70
$20
RE
-$20
-$40
-$60
-$80
-$100
-$120
-$140
Projected State Budget Shortfalls
(in Billions)
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 201
Source: LAO'S Office
FY 2009/10 Mid -Year
With continued monitoring, General Fund will
be close to expenditures matching revenues
• $64,000 shortfall without proposed
modification
• Not seeking additional employee
contributions, but need to extend current
levels into FY 2010/11
FY 2009/10 Mid-Year
General Fund is under pressure
FY 2009/10 Mid -Year
General Fund Activities
Legislative, Legal, Administrative, Risk
Management,, Police,, Fire,, Code Enforcement,,
Parks, Emergency Preparedness, Special
Events, Street Maintenance, Animal Services
Dependent Activities
Library., Hutchins Street Square,, Recreatior
Community Development support
9
FY 2009/10 Mid -Year
General Fund Revenue
(in thousands)
$45,000
$44,000
$43,000
$42,000
$41,000
$ 3,7 4,4
$40,000 $4.29656 $2,83
$39,000
$38,000 $239987 1
$37,000
2004/05 2005/06 2006/07 2007/08 2008/09 2009/10
(est.)
10
9
$ 1,0 5
FY 2009/10 Mid -Year
Unreserved General Fund Balances
$7,000
$6,000
N
_ $5,000
c $4,000
$3,000
N
L
$2,000
0
G
$1,000
$0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Target
11
est.
FY 2009/10 Mid -Year
General Fund Revenue
Investments, Fines &
Operating Fees Licenses & Forfeitures
4% Permits 1%
Revenue from 1%
Others Charges for
12% Services
Operating 1%
Transfers In
15% Other Revenue
Tax Revenues
66%
12
FY 2009/10 Mid-Year
Top General Fund Revenues
(in thousands)
2007/08 2008/09 2009/10
Property Tax $9,210
Sales Tax $9,296
PILOT $6,873
Franchise Fees $ 976
VLF $4,797
TOT $ 396
13
$8,887
$8,028
$6,942
$1,415
$4,784
$ 405
$8,435
$7,250
$6,977
$1,640
$4,397
$ 411
FY 2009/10 Mid -Year
General Fund data
zoo7/os
2008/09
2009/10
Revenues
$44.5M
$41.OM
$39.9M
Expenditures
14
$44.5M
$41.8M
$39.9M
Fund Balance
$4.2M
$3.4M
$3.4M
FY 2009/10 Mid -Year
Continued Monitoring
What strategies have we employed to
manage financial resources?
• Reduce Work Force
■ Early Retirements
■ Leave vacancies unfilled
■ Layoffs
• Reduce Training and Travel
• Reduce Employee Costs
■ Furloughs
■ Employee cooperation 15
FY 2009/10 Mid -Year
• Squeeze expenses
• Be more entrepreneurial
• Transfer allowable costs to enterprise funds
• Ensure General Fund revenue is directed to General
Fund
• Charge enterprise funds for General Fund support
• Review insurance costs
• Reduce service levels
THERE
IS
NO
ONE ANSWER
HOPE
IS
NOT
A STRATEGY
16
FY 2009/10 Mid -Year
Doing more with less: Efficiencies
• Online banking
• Pay stations
• Online access to utility account information
• Minor reorganization for greater effectiveness:
■ Consolidated admin. functions into Internal Services
■ Consolidated dept. head and Deputy CM position
■ Fire plan check and construction inspection to CD
■Traffic engineering managing Transit services
17
FY 2009/10 Mid -Year
• Substituting PARS for Social Security for
part-timers
• Coordination of aquatics function
• Self -serve stations at library
• Energy efficiency
• Combined online registration for P&Rand HSS
• More information online, reducing call volume
• Absorbing additional duties without position
backfill
• Granicus
IN
FY 2009/10 Mid -Year
I. PALS contract providing staffing for Animal
Shelter
• Convert real estate assets to cash
• Maximize use of City property
• Use stimulus funds where available
• Labor negotiations in-house
• Settling PCE/TCE lawsuits
• Modernizing business practices
■ Charge market rate for leases and rents
■ Charge market for franchise fees
19
FY 2009/10 Mid -Year
What we're doing less of:
• City Hall closed one Friday/month
• Reduced library hours (closed Fridays and
three hours earlier Thursdays)
• Fire engine browned out
• National Night Out
• Reduced Fourth of July fireworks
• Reduced outside grants
20
FY 2009/10 Mid -Year
Bike officer hours reduced — officers on
regular patrol
• Park patrol eliminated
• Reduced staffing in Police Department lobby
• Reduced hours at Animal Shelter (prior to
PALS contract)
• Delayed response time to citizen requests
• Deferred maintenance
• Limited counter personnel
21
FY 2009/10 Mid -Year
Fewer budgeted positions
Position Counts
500
480
460
440
Authorized
420 Filled
400
380
360
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
22
FY 2009/10 Mid-Year
Workforce reductions
15 early retirements
23
FY 2009/10 Mid -Year
■ Eliminate the Central Store/Central
Purchasing concept
■ Transfer 2 positions to Utilities
—Net savings to General Fund of about
$64,,000
■ Move 1 position to Finance offices
— Stays in Purchasing business unit
24
FY 2009/10 Mid -Year
General Fund
General Fund
Fund Balance
Beginning Fund Balance Unreserved
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Fund Balance
Ending Fund Balance Unreserved
Audited
2009-10
Budget to
Budget to
2008-09
2009-10 Estimated
Est Actuals
Est Actuals
Actuals
Budget Actuals
Variance $
Variance %
4,159,007 3,831,962 3,383,191 (448,771)
41,015,454 39,870,901 39,862,039 (8,862) 0.0%
41,791,270 39,870,901 39,926,039 55,138 0.1%
(775,816) - (64,000) (64,000)
3,383,191 3,831,962 3,319,191 (512,771)
25
111
Public Works
Water Services Mgr
Director
Ioa_
Streets & Drainage Mgr
U111,.E � I No ,.� _�,_,-s��_
111
Laboratory
Services
Supervisor
Senior Plant &
Equip. Mechanic
�j rn nnsea
do
Lab. Services &
Environmental
Compliance Sup.
Water/Wastewater
Supervisor
Compliance
Engineer
FY 2009/10 Mid -Year
Water Fund
Audited
2008-09
Actuals
Water Utility Enterprise Fund
Fund Balance (Cash)
Beginning Fund (Cash) Balance 13,434,921
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Fund Balance (Cash)
Ending Fund (Cash) Balance
2009-10 Budget to Budget to
2009-10 Estimated Est Actuals Est Actuals
Budget Actuals Variance $ Variance %
15,761,074 20,272,801 4,511,727
17,343,265
14,186,738
13,992,174
(194,564)
10,505,385
12,500,365
9,547,318
(2,953,047)
6,837,880
1,686,373
4,444,856
21758,483
20,272,801 17,447,447 24,717,657 7,270,210
-1.4%
-30.9%
FY 2009/10 Mid -Year
Wastewater Fund
Wastewater Utility Enterprise Fund
Fund Balance (Cash)
Beginning Fund (Cash) Balance
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Fund Balance (Cash)
Ending Fund (Cash) Balance
Audited
2009-10
Budget to
Budget to
2008-09
2009-10 Estimated
Est Actuals
Est Actuals
Actuals
Budget Actuals
Variance $
Variance %
6,766,472
4,568,929
7,499,323
2,930,394
11,146,850
13,821,930
15,433,571
1,611,641
10,413,999
16,343, 361
16,855, 381
512,020
732,851
(2,521,431)
(1,421,810)
1,099,621
7,499,323 2,047,498 6,077,513 4,030,015
29
10.4%
3.0%
FY 2009/10 Mid -Year
Electric Fund
Audited
2008-09
Actuals
Electric Utility Enterprise Fund
Fund Balance (Cash)
Beginning Fund (Cash) Balance 11,339,624
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Fund Balance (Cash)
Ending Fund (Cash) Balance
2009-10
Budget to
2009-10 Estimated
Est Actuals
Budget Actuals
Variance $
13,072,819 12,003,103 (1,069,716)
74,034,868
73,752,410
73,451,825
(300,585)
73,371,389
72,634,564
73,222,229
587,665
663,479
1,117,846
229,596
(888,250)
12,003,103 14,190,665 12,232,699 (1,957,966)
30
Budget to
Est Actuals
Variance %
-0.4%
0.8%
FY 2009/10 Mid-Year
Library Fund
31
FY 2009/10 Mid -Year
Community Development Fund
Community Development Fund
Fund Balance
Beginning Fund Balance Unreserved
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Fund Balance
Ending Fund Balance Unreserved
Audited
2009-10
Budget to
Budget to
2008-09
2009-10 Estimated
Est Actuals
Est Actuals
Actuals
Budget Actuals
Variance $
Variance %
(702,127)
(713,886)
(921,716)
(207,830)
1,126,039
1,427,891
1,468,290
40,399 2.8%
1,345,628
1,123,218
1,112,797
(10,421) -0.9%
(219,589)
304,673
355,493
50,820
(921,716) (409,213) (566,223) (157,010)
32
FY 2009/10 Mid -Year
I Looking ahead
• Tax base improvement
■ New retail on horizon
■ Lodi Energy Center
■ Focus on economic development
• Continue to manage personnel costs
• Unknown forces
• State of California
■ Weather
■ Labor agreements
■ Market
Invest in the City of Lodi
33
FY 2009/10 Mid -Year
MOU terms
Group
General Services
Maintenance & Operators
Mid -Management
Firefighters
Fire Mid -Management
Police Dispatchers
Police
M
34
Expiration
12/31/10
12/31/10
12/31/10
12/31/10
12/31/10
4/30/11
9/30/11
12/31/13
FY 2009/10 Mid-Year
PERS rate increases
2% annual increase in employer
contribution rate for next several years
35
FY 2009/10 MaIdmYear
Summary
• Continued difficult and uncertain economic
times
• Minor adjustments and proper management
will allow for balanced budget
■ Conservative revenue estimates
■ Reduced costs
• No extraordinary actions proposed
• Continued employee assistance is necessary
36
FY 2009/10 Mid -Year
• Continue on glide path — look for efficiencies
• State of California is a wildcard
• Long-term — leaner organization, focus on
core services, economic development efforts
will be positive in the long run
37