HomeMy WebLinkAboutAgenda Report - June 1, 2011 I-01I-1
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt Resolution Approving the City of Lodi Financial Plan and Budget for the
Fiscal Year Beginning July 1, 2011 and Ending June 30, 2012 and Approving the
Fiscal Year 2011/12 Appropriation Spending Limit
MEETING DATE: June 1, 2011
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Adopt resolution approving the City of Lodi Financial Plan and Budget
for the Fiscal Year (FY) beginning July 1, 2011 and ending June 30,
2012 and approving the Fiscal Year 2011/12 appropriation spending
limit.
BACKGROUND INFORMATION: The City Council will continue to receive the budget presentation and
the public is invited to comment on the FY 2011/12 budget. Council
has previously received information on this budget at Shirtsleeve
meetings on May 3, 10, 17 and 24. A draft budget document was released on May 19.
The General Fund budget for FY 2011/12 is balanced without the use of reserves. Council approved a
General Fund Reserve Policy in June 2010 that sets aside 8 percent of General Fund revenues for a
Catastrophic Reserve and 8 percent of General Fund revenues for an Economic Reserve. Total General
Fund reserves are projected to be $3.96 million. This level of reserve will fully fund the Catastrophic
Reserve at a level of $3.3 million and partially fund the Economic Reserve at about $662,000.
The General Fund budget is $41,255,340, a decrease of $66,410 from the prior year. The All -Funds
budget is $209,805,900, an increase of $30.5 million, or about 17 percent over the previous year. The
bulk of this increase is related to the appropriations for the Water Treatment Plant project.
Significant Issues
This budget is not without a number of significant issues that the City addressed in developing a
balanced budget.
Salary and Benefit Costs
Absent concessions, the cost for salaries and benefits would have increased approximately $6.6 million.
The primary drivers of this increase are the expiration of the employee concessions agreed to through
June 30, 2011 ($2.3 million) along with significant increases in Worker's Compensation ($2.2 million),
retirement ($1.2 million) and medical costs ($0.9 million).
---• ,Www
radt Bartlam, City Manager
The City offered an early retirement incentive of two years service credit to 24 classifications,
representing 30 individuals. Fifteen individuals have accepted the offer and will leave City employment
by June 30, 2011. Annual on-going savings related to these vacated positions is about $1.5 million.
Assistance from the City's bargaining units is instrumental in balancing the budget again this year.
Significant elements of employee concessions include paying for all, or a portion of, the employee share
of CalPERS pension costs; agreeing to limit the City's share of cost on medical plans to the lowest -cost
HMO plan costs; continuing, increasing or eliminating furloughs; waiving the City match to deferred
compensation along with waiving the right to cash out certain types of leave.
At this time, all bargaining units have agreed to concessions requested by the City except for the Police
Officers Association and the Dispatchers unit. A separate agenda item details the concession
agreements while another agenda item advises CalPERS of the percentage of the employee share of
retirement costs that the City will be paying.
Discussions with the Police Officer's Association are close to conclusion. Positive discussions occurred
the week of May 23 and the City is awaiting a proposal from the group. Absent an agreement, the City
Manager's Office will be recommending a lay-off of four positions.
Discussions with the Dispatchers unit have stalled and staff is recommending that two positions be laid
off.
Worker's Comp — An actuarial valuation of the City's Worker's Comp liabilities is typically performed
every two years. The projected liabilities are used to fund the reserve for this program. Staff was on
target for funding the reserve based upon the actuarial projection in the October 2008 report. The
actuarial report received in November 2010 reflected significantly higher liabilities than anticipated. The
cause of the dramatic increase in the liability ties to an increase in the severity of claims during the
reporting period. As a result, the Worker's Compensation reserve is $2.0 million short of the suggested
funding level. Staff has discussed the underlying assumptions. Staff is seeing a reduction in the severity
of current claims and believes that the November 2010 projected liability is overstated, given current
experience. Staff will be requesting that the actuary produce a report based upon June 30, 2011 data in
the belief that the June 30, 2012 liability will be reduced. Additionally, staff is recommending that the
actuarial liability deficit be funded over a two-year period instead of a single year.
Retirement Costs — The City contracts with CalPERS for retirement benefits for City employees. The
payment made to CalPERS is composed of an employee share and an employer share of cost. The
employee share of cost is 7 percent for Miscellaneous employees and 9 percent for Safety employees.
Historically, the City has paid the full share of employee costs. The employer share of cost is determined
by CalPERS and provided to the City each year. The employer cost for the current year, budget year
and future year estimates are shown in the table below.
Fiscal Year
Miscellaneous
Safety
2010/11
11.727%
23.838%
2011/12
13.680%
30.380%
2012/13 Est.
14.800%
31.600%
2013/14 Est.
17.900%
135.500%
Medical Costs — The City contracts with CalPERS for medical benefits for City employees. Historically,
the City has paid for the full cost of the employee chosen plan, with a nominal payment by the employee
for employee + 1 coverage ($80 per month) and family coverage ($104 per month). As you are aware,
medical costs are rapidly increasing. CalPERS medical plans are priced on a calendar -year basis while
the City budgets on a fiscal -year basis. As such, we must estimate the rate increases that will take place
in the middle of the fiscal year. For FY 2010/11, staff estimated that rates would increase an average of
9 percent. The actual average rate increase was 9.5 percent and variances were absorbed within
existing appropriations. Staff is projecting a 12 -percent increase in rates for the 2012 calendar year.
Actual rates will be known around October 2011 and any variances will be addressed in the mid -year
budget review.
Capital Projects
Significant capital projects included in the budget include:
• Surface Water Treatment Plant ($28.8 million -bond funded)
o Construction of a treatment plant and appurtenances for treating Mokelumne River water
• Water Meter Installation ($2.3 million -rate funded)
o Construction of Phase 1 of the meter installation program
• Biosolids Dewatering Facility ($4.5 million -bond funded)
o Construction of a biosolids dewatering facility to meet expected permit requirements
• Wastewater Main Replacement Project #5 ($2.1 million -rate funded)
o Rehabilitation of about 25,000 lineal feet of in -ground pipe
• 12 kV Underground Cable Maintenance ($1.1 million -rate funded)
o Rehabilitation of underground cable in Grids 56 and 57
• Transit Shop Solar Project ($1.0 million -ARRA funded)
o Install solar panels for maintenance shop
• Cape Seal Project ($1.0 million -Prop 1 B, Measure K funded)
o Install 1 million square feet of rubberized slurry seal at various locations
A resolution adopting the Financial Plan and Budget is attached. Included in the budget resolution is the
adoption of the Appropriation Spending Limit for the 2011/12 fiscal year. This limit represents the
maximum spending authority for the City based upon population and inflation changes over the last year.
The 2011/12 Appropriation Limit is $77,891,729, an increase of $2,367,907 from the prior year. Details
of the calculations are attached as Attachment 1 and Exhibits A through G.
FISCAL IMPACT: The 2011/12 budget provides an expenditure plan for all funds. The All -Funds
budget is $209,805,900, an increase of $30.5 million, or about 17 percent over the
previous year. The bulk of this increase is related to the appropriations for the Water
Treatment Plant project. The General Fund Budget is $41,255,340, a decrease of
$66,410 from the prior year's budget.
Jor an Ayers, Deputy City M ag r
Attachments
ATTACHMENT 1
2011-12 FINANCIAL PLAN AND BUDGET
APPROPRIATIONS SPENDING LIMIT
2011-12 APPROPRIATIONS SPENDING LIMIT
2011-12 APPROPRIATIONS SUBJECT TO LIMITATION
PROCEEDS OF TAXES 31,857,150
EXCLUSIONS -
APPROPRIATIONS SUBJECT TO LIMITATION 31,857,150
CURRENT YEAR LIMIT 77,891,729
AM�JUNT
Last Year's Limit
75,523,822
Adjustment Factors
1 Population % 1.0061
2 Inflation % 1.0251
Total Adjustment %
1.03135
Annual Adjustment
2,367,907
Adjustments
None
Total Adjustments
2,367,907
201X 12 Al'pTt(3*RiATONS Sl'ENIIl<NG I,I1IT
77,891,72;9,,;
2011-12 APPROPRIATIONS SUBJECT TO LIMITATION
PROCEEDS OF TAXES 31,857,150
EXCLUSIONS -
APPROPRIATIONS SUBJECT TO LIMITATION 31,857,150
CURRENT YEAR LIMIT 77,891,729
EXHIBIT A
City of Lodi
Appropriations Spending Limit
Fiscal Year 2011-12
A. Last Year's Limit 75,523,822
B. Adjustments Factors
1 Population % 1.0061. (Exhibit B)
2 Inflation % 1.0251 (State Finance)
Total Adjustment % 1.03135 (Bl*B2)
C. Annual Adjustment 2,367,907 (B*A)
D. Other Adjustments None
E. Total Adjustments 2,367,907 (C+D)
F. This Year's Limit 77,891,729 (A+E)
City of Lodi
Appropriations Spending Limit
Growth Factors/Calculations
EXHIBIT B
%Increase
87-88
3.47
5.72
3.33
88-89
4.66
4.96
3.32
89-90
5.19
2.52
2.20
90-91
4.21
2.26
2.23
91-92
4.14
1.19
2.64
92-93
-0.64
0.97
2.41
93-94
2.72
0.73
2.13
94-95
0.71
0.51
1.57
95-96
4.72
1.31
1.59
96-97
4.67
1.68
1.85
97-98
4.67
0.70
1.21
98-99
4.15
1.16
1.47
99-00
4.53
1.94
1.44
00-01
4.91
1.29
1.78
01-02
7.82
1.90
2.71
02-03
-1.27
2.14
3.07
03-04
2.31
1.69
2.86
04-05
3.28
0.75
2.54
05-06
5.26
0.96
2.65
06-07
3.96
0.30
2.00
07-08
4.42
0.90
1.73
08-09
4.29
0.68
1.59
09-10
0.62
0.42
1.07
10-11
-2.54
0.61
0.97
11-12
2.51
0.61
0.97
87-88 1.0347 x 1.0572 = 1.0939
1.0939 x $22,654,787 = $24,782,072
88-89 1.0466x 1.0496=1.0985
1.0985 x $24,782,072 = $27,223,106
89-90 1.0519 x 1.0252 =1.0784
1.0784 x $27,223,106 = $29,357,398
90-91
1.0421 x 1.0226 =1.0657
1.0657 x $29,357,398 =
$31,286,179
91-92
1.0414 x 1.0264 =1.0689
1.0689 x $31,286,179 =
$33,441,797
92-93
.9936 x 1.0241 =1.0175
1.0175 x 33,441,797 =
$34,027,028
93-94
1.0272 x 1.0213 = 1.0491
1.0491x 34,027,028 =
$35,697,755
94-95
1.0071 x 1.0157 = 1.0229
1.0229 x 35,697,755 =
$36,515,234
95-96
1.0472 x 1.0131 =1.0609
1.0609 x 36,515,234 =
$389739,012
96-97
1.0467x1.0168=1.0643
1.0643x 38739012 =
$41,229,332
97-98
1.0467x1.0070=1.0540
1.0540x 41,229,332 =
$43,456,825
98-99
1.0415x1.01160=1.0536
1.0536x 43,456,825
$45,785,303
99-00
1.0453x 1.0194=1.0656
1.0656x45,785,303
$48,787,849
00-01
1.0491x1.0129=1.0626
1.0626x48,787,849
$51,843,597
01-02
1.0782x1.0190=1.0987
$56,959,824
1.0986858
02-03
.9873x1.0214=1.00843
$57,439,894
1.00842822
03-04
1.0231x1.0169=1.0404
$59,759,913
1.04039039
04-05
1.0328x1.0075=1.040546
$62,182,939
1.040546
05-06
1.0526x1.0096=1.06270496
$66,082,118
1.06270496
06-07
1.0396x1.0030=1.0427188
$68,905,066
1.0427188
07-08
1.0442x1.0090=1.0535978
$72,598,226
1.0535978
08-09
1.0429x1.0068=1.0499917
$76,227,535
1.0499917
09-10
1.0062x1.0042=1.01042604
$77,022,286
1.01042604
10-11
.9746x1.0061=.98054506
$759523,822
0.98054506
11-12
1.0251x1.0061=1.03135311
$77,891,729
1.03135311
11-12 Appropriations Subject
to Limit:
$31.857.150 =
40.90%
$77,891,729
APPROPRIATIONS SUBJECT TO LIMITATION
City of Lodi
Fiscal Year 2011-12
A. PROCEEDS OF TAXES
B. EXCLUSIONS
C. APPROPRIATIONS SUBJECT TO LIMITATION
D. CURRENT YEAR LIMIT
31,8-57,150
0
31,857,150
77,891,729
EXHIBIT C
(Exhibit F)
(Exhibit D)
(A -B)
(Exhibit A)
E. OVER(UNDER) LIMIT 1 (46,034,579) (C -D)
31,857,150 = 40.90%
77,891,729
City of Lodi
Fiscal Year 2011-12
COURT ORDERS
FEDERAL MANDATES
Subtotal
Subtotal
QUALIFIED CAPITAL OUTLAYS
Subtotal
QUALIFIED DEBT SERVICE
Subtotal
TOTAL EXCLUDABLE
(Copy to Exhibit C & G)
EXCLUDED APPROPRIATIONS
EXHIBIT D
None
None
None
None
INone
City of Lodi
Schedule to Match User Fees to Costs
Fiscal Year 2011-12
EXHIBIT E
Public Safety Fees
Parks and Rec/Cultural Fees
Community Development Fees
PW Engineering Fees
Library Fees
Total
327,000
25,209,150
1,626,870
5,955,390
375,330
1,066,960
144,600
852,750
35,000
1,282,940
2,508,800 34,367,190
0
0
0
0
0
0
Calculation - Proceeds of Taxes
City of Lodi
Fiscal Year 2011-12
EXHIBIT F
PROCEEAS . NON TROCEEDS
REVENUE OF TAXES OF TAXE5 TOTAL
TAXES:
Property Taxes
Sales & Use Tax
Business License Tax
Franchise Tax
Transient Occupancy Tax
Real Property -Documentary Tax
In -Lieu Franchise Tax
FROM STATE
Motor Vehicle In Lieu
State H -way Maintenance
Gas Tax
Cigarette tax
Transportation Development Act
TDA-Pedestrian/Bike Path
SB 300 Transportation Partnership
Measure K Funds
State Reimbursements -POST
Public Library grants
PERS Rebate
SB90 Reimbursements
Asset Seizure Funds/Auto Theft
Drug Suppression Grant
State special grants
Traffic Congestion Relief
State STIP reimbursement
LOCALLY RAISED
Fines, Forfeitures, Penalties
Licenses and permits
Rent of City Property
Development Fees
USER FEES
(from Exhibit E)
OTHER MISCELLANEOUS
Sale of Property
Restitution -Damage to Property
Other revenue
Interfund Transfers
SUB -TOTAL
(for Exhibit G)
INTEREST EARNINGS
(from Exhibit G)
TOTAL REVENUE
(use for Exhibit C)
RESERVE WITHDRAWALS
(Including appropriated Fund Balance)
TOTAL OF THESE FUNDS
OTHER FUNDS NOT INCLUDED
GRAND TOTAL BUDGET
8,161,300
8,161,300
8,856,240
290,290 9,146,530
1,250,000
1,250,000
1,698,420
1,698,420
400,000
400,000
11.4,000
114,000
6,976,670
6,976,670
4,363,950
4,363,950
11.400
11,400
1,693,340
1,693,340
1,604,600
0
1,548,300
1,548,300
34,300
34,300
0
0
1,115,000
1,115,000
25,000
25,000
0
0
0
0
50,000
50,000
0
0
254,000
254,000
16,370
16,370
0
0
0
0
1,307,000L
1,307,000
631,200
631,200
830,830
830,830
1,604,600
1,604,600
31,820,580 1 18,299,300 50,119,880
36.570 1 21,030 1 57,600
31,857,150 1 18,320,330 150,177,480
0
50,177,480
146,765,190
196,942,670
EXHIBIT G
B. MINUS EXCLUSIONS
C. NET INVESTED TAXES
D. TOTAL NON-INTEREST BUDGET
E. TAX PROCEEDS AS PERCENT
OF BUDGET
F. INTEREST EARNINGS
G. AMOUNT OF INTEREST EARNED
FROM TAXES
H. AMOUNT OF INTEREST EARNED
ON NON -TAXES
I. Take the result of steps #G & H
Copy on to Exhibit F
0 1 (Exhibit D)
31,820,580 (A -B)
50,119,880 1 ^(Exhibit F)
63.49% (CID)
57,600
36,570 (E*F)
21,030 (F -G)
X40./
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Adopt Resolution Approving the City of Lodi Financial Plan and Budget for the
Fiscal Year Beginning July 1, 2011 and Ending June 30, 2012 and Approving the
Fiscal Year 2011/12 Appropriation Spending Limit
MEETING DATE: June 1, 2011
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Adopt resolution approving the City of Lodi Financial Plan and Budget
for the Fiscal Year (FY) beginning July 1, 2011 and ending June 30,
2012 and approving the Fiscal Year 2011/12 appropriation spending
limit.
BACKGROUND INFORMATION: The City Council will continue to receive the budget presentation and
the public is invited to comment on the FY 2011/12 budget. Council
has previously received information on this budget at Shirtsleeve
meetings on May 3, 10, 17 and 24. A draft budget document was released on May 19.
The General Fund budget for FY 2011/12 is balanced without the use of reserves. Council approved a
General Fund Reserve Policy in June 2010 that sets aside 8 percent of General Fund revenues for a
Catastrophic Reserve and 8 percent of General Fund revenues for an Economic Reserve. Total General
Fund reserves are projected to be $3.96 million. This level of reserve will fully fund the Catastrophic
Reserve at a level of $3.3 million and partially fund the Economic Reserve at about $662,000.
The General Fund budget is $41,255,340, a decrease of $66,410 from the prior year. The All -Funds
budget is $209,805,900-209,707,740, an increase of $30.54 million, or about 17 percent over the
previous year. The bulk of this increase is related to the appropriations for the Water Treatment Plant
project.
Significant Issues
This budget is not without a number of significant issues that the City addressed in developing a
balanced budget.
Salary and Benefit Costs
Absent concessions, the cost for salaries and benefits would have increased approximately $6.6 million.
The primary drivers of this increase are the expiration of the employee concessions agreed to through
June 30, 2011 ($2.3 million) along with significant increases in Worker's Compensation ($2.2 million),
retirement ($1.2 million) and medical costs ($0.9 million).
APPROVED:
Bartlam, City Manager
The City offered an early retirement incentive of two years service credit to 24 classifications,
representing 30 individuals. Fifteen individuals have accepted the offer and will leave City employment
by June 30, 2011. Annual on-going savings related to these vacated positions is about $1.5 million.
Assistance from the City's bargaining units is instrumental in balancing the budget again this year.
Significant elements of employee concessions include paying for all, or a portion of, the employee share
of CalPERS pension costs; agreeing to limit the City's share of cost on medical plans to the lowest -cost
HMO plan costs; continuing, increasing or eliminating furloughs; waiving the City match to deferred
compensation along with waiving the right to cash out certain types of leave.
At this time, all bargaining units have agreed to concessions requested by the City except for the Police
Officers Association and the Dispatchers unit. A separate agenda item details the concession
agreements while another agenda item advises CalPERS of the percentage of the employee share of
retirement costs that the City will be paying.
Discussions with the Police Officer's Association are close to conclusion. Positive discussions occurred
the week of May 23 and the City is awaiting a proposal from the group. Absent an agreement, the City
Manager's Office will be recommending a lay-off of four positions.
Discussions with the Dispatchers unit have stalled and staff is recommending that two positions be laid
off.
Worker's Comp — An actuarial valuation of the City's Worker's Comp liabilities is typically performed
every two years. The projected liabilities are used to fund the reserve for this program. Staff was on
target for funding the reserve based upon the actuarial projection in the October 2008 report. The
actuarial report received in November 2010 reflected significantly higher liabilities than anticipated. The
cause of the dramatic increase in the liability ties to an increase in the severity of claims during the
reporting period. As a result, the Worker's Compensation reserve is $2.0 million short of the suggested
funding level. Staff has discussed the underlying assumptions. Staff is seeing a reduction in the severity
of current claims and believes that the November 2010 projected liability is overstated, given current
experience. Staff will be requesting that the actuary produce a report based upon June 30, 2011 data in
the belief that the June 30, 2012 liability will be reduced. Additionally, staff is recommending that the
actuarial liability deficit be funded over a two-year period instead of a single year.
Retirement Costs — The City contracts with CalPERS for retirement benefits for City employees. The
payment made to CalPERS is composed of an employee share and an employer share of cost. The
employee share of cost is 7 percent for Miscellaneous employees and 9 percent for Safety employees.
Historically, the City has paid the full share of employee costs. The employer share of cost is determined
by CalPERS and provided to the City each year. The employer cost for the current year, budget year
and future year estimates are shown in the table below.
Fiscal Year
Miscellaneous
Safety
2010/11
11.727%
23.838%
2011/12
13.680%
30.380%
2012/13 Est.
14.800%
31.600%
2013/14 Est.
17.900%
35.500%
Medical Costs — The City contracts with CalPERS for medical benefits for City employees. Historically,
the City has paid for the full cost of the employee chosen plan, with a nominal payment by the employee
for employee + 1 coverage ($80 per month) and family coverage ($104 per month). As you are aware,
medical costs are rapidly increasing. CalPERS medical plans are priced on a calendar -year basis while
the City budgets on a fiscal -year basis. As such, we must estimate the rate increases that will take place
in the middle of the fiscal year. For FY 2010/11, staff estimated that rates would increase an average of
9 percent. The actual average rate increase was 9.5 percent and variances were absorbed within
existing appropriations. Staff is projecting a 12 -percent increase in rates for the 2012 calendar year.
Actual rates will be known around October 2011 and any variances will be addressed in the mid -year
budget review.
Capital Proiects
Significant capital projects included in the budget include:
• Surface Water Treatment Plant ($28.8 million -bond funded)
o Construction of a treatment plant and appurtenances for treating Mokelumne River water
• Water Meter Installation ($2.3 million -rate funded)
o Construction of Phase 1 of the meter installation program
• Biosolids Dewatering Facility ($4.5 million -bond funded)
o Construction of a biosolids dewatering facility to meet expected permit requirements
• Wastewater Main Replacement Project #5 ($2.1 million -rate funded)
o Rehabilitation of about 25,000 lineal feet of in -ground pipe
• 12 kV Underground Cable Maintenance ($1.1 million -rate funded)
o Rehabilitation of underground cable in Grids 56 and 57
• Transit Shop Solar Project ($1.0 million -ARRA funded)
o Install solar panels for maintenance shop
• Cape Seal Project ($1.0 million -Prop 1 B, Measure K funded)
o Install 1 million square feet of rubberized slurry seal at various locations
A resolution adopting the Financial Plan and Budget is attached. Included in the budget resolution is the
adoption of the Appropriation Spending Limit for the 2011/12 fiscal year. This limit represents the
maximum spending authority for the City based upon population and inflation changes over the last year.
The 2011/12 Appropriation Limit is $77,891,729, an increase of $2,367,907 from the prior year. Details
of the calculations are attached as Attachment 1 and Exhibits A through G.
FISCAL IMPACT: The 2011/12 budget provides an expenditure plan for all funds. The All -Funds
budget is $209,805,900 209,707,740, an increase of $30.54 million, or about 17
percent over the previous year. The bulk of this increase is related to the appropriations for the Water
Treatment Plant project. The General Fund Budget is $41,255,340, a decrease of
$66,410 from the prior year's budget.
Jordan Ayers, Deputy City Ma ger
Attachments
RESOLUTION NO. 2011-
A RESOLUTION OF THE LODI CITY COUNCIL
ADOPTING THE CITY OF LODI FINANCIAL PLAN AND
BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1,
2011 AND ENDING JUNE 30, 2012, AND APPROVING
THE 2011/12 APPROPRIATIONS SPENDING LIMIT
WHEREAS, the City Manager submitted the 2011/12 balanced Financial Plan
and Budget to the City Council on May 19, 2011; and
WHEREAS, the 2011/12 Financial Plan and Budget was prepared in accordance
with the City Council's goals, budget assumptions, and policies; and
WHEREAS, the City Council conducted public budget meetings on May 3,
May 10, May 17, May 24, and June 1, 2011, at the Carnegie Forum; and
WHEREAS, the City Council is required to adopt the Appropriations Spending
Limit for 2011/12; and
WHEREAS, the Appropriations Spending Limit and the annual adjustment
factors selected to calculate the Limit are part of the Financial Plan and Budget.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lodi
as follows:
1. That the 2011/12 Financial Plan and Budget, as proposed by the City
Manager, be approved as follows:
Budget
General Fund
Police
$-15,96i,359
$ 16,000,270
Fire
$-9,24; ,�9
$
9,320,840
Public Works
$–,560;600
$
1,559,390
City Clerk
$--45;670
$
511,970
City Manager
$--40 4G
$
411,050
City Attorney
$--454;58
$
445,940
Internal Services
$--3,603,27G
$
3,369,640
Economic Development
$ 568,350
Non -Departmental
$ 9,067,890
Total General Fund
$ 41,255,340
Other Funds
Electric Utility
$ 71,920,380
Water Utility
$ 41,579,180
Wastewater Utility
$ 20,276,400
Transit
$ 5,813,19G
$
5,840,940
Streets
$ 4,241,290
Community Development
$-1;066;960
$
1,110,500
Parks, Rec & Cultural Services
$--555,398
$ 5,785,940
COUNCIL MEMBERS —
$
1,426,950
-Library
Development Act
$
50,000
-Transportation
Dev Block Grant
$
1,134,220
-Community
Public Safety Special Revenue
$
100,000
Outla
$
1,039,380
-Capital
& Vehicle Replacement
$
345,000
-Equip
Debt Service
$
1,669,020
Benefits
$
7,210,210
Self Insurance
$
2,498,000
Trust and Agency
$
328,590
Fleet Services
$
1,896,400
Total Other Funds
$1168,650,560
$168,452,400
Total
$209,805.900
$209,707,740
2. That the funds for the 2011/12 Financial Plan and Budget are appropriated
as summarized in the document on file in the City Clerk's Office; and
3. That the Appropriations Spending Limit be increased by $2,367,907 from the
2010/11 level of $75,523,822 to the 2011/12 level of $77,891,729.
Dated: June 1, 2011
I hereby certify that Resolution No. 2011- as passed and adopted by the
City Council of the City of Lodi in a regular meeting held June 1, 2011, by the following
votes:
AYES:
COUNCIL MEMBERS —
NOES:
COUNCIL MEMBERS —
ABSENT:
COUNCIL MEMBERS —
ABSTAIN:
COUNCIL MEMBERS —
RANDI JOHL
City Clerk
2011-
�7 00MEMORANDUM
U
9��FOR�
TO: City Council
FROM: Jordan Ayers, Deputy City Manager
DATE: June 1, 2011
SUBJECT: REVISED BUDGET EXCERPTS — BLUE SHEET
Attached please find revised budget excerpts from the pages indicated on the
bottom of each sheet. The primary change is the elimination of the additional
reductions needed line item and in most cases the bottom line number was
unaffected.
090: Operating Transfers Out
4,709,733
5,589,724
5,421,020
5,421,020
7,998,070
100: Personnel Services
30,435,171
28,393,078
29,397,380
29,315,615
27,360,290
200: Utility Comm. & Transportation
1,556,149
1,421,422
1,490,000
1,485,899
1,399,690
300: Supplies, Materials & Services
3,383,478
3,552,799
4,000,310
3,983,423
3,539,860
500: Equipment, Land & Structures
1,662,894
426,914
360,550
361,423
280,300
600: Special Payments
643,724
683,061
702,490
689,458
677,130
31
100: Personnel Services
13,868,104
13,200,596
13,699,630
13,691,868
13,760,220
200: Utility Comm. & Transportation
59,002
60,552
53,500
47,424
45,000
300: Supplies, Materials & Services
923,472
1,289,819
1,349,060
1,300,714
1,331,340
500: Equipment, Land & Structures
178,868
107,230
107,230
107,230
107,230
600: Special Payments
759,139
760,071
758,660
758,660
756,480
40
100: Personnel Services
8,695,581
8,026,252
8,356,030
8,348,524
8,464,730
200: Utility Comm. & Transportation
19,970
22,756
21,200
21,900
20,750
300: Supplies, Materials & Services
608,190
642,862
653,360
660,087
704,670
500: Equipment, Land & Structures
218,002
130,690
130,690
31 111 1
130,690
130,690
60
100: Personnel Services
1,401,763
967,887
1,109,150
1,114,288
1,016,660
200: Utility Comm. & Transportation
9,822
9,781
9,620
8,755
8,690
300: Supplies, Materials & Services
573,621
438,360
564,110
517,897
491,660
500: Equipment, Land & Structures
1,021,135
112,780
62,110
53,983
42,380
600: Special Payments
9,619
71
0
50
0
76
100: Personnel Services 452,175 471,955 481,230 470,379 449,520
300: Supplies, Materials & Services 80,213 50,003 128,870 139,678 62,450
94
100: Personnel Services
440,992
422,127
430,300
430,930
419,940
200: Utility Comm. & Transportation
1,105
931
1,090
900
1,300
300: Supplies, Materials & Services
82,087
(29,628)
38,460
37,960
24,700
107
100: Personnel Services
539,578
513,554
561,310
486,717
387,940
200: Utility Comm. & Transportation
1,451
1,307
1,250
420
0
300: Supplies, Materials & Services
9,919
46,336
15,240
90,586
23,110
112
100: Personnel Services
3,234,567
3,041,053
2,951,660
2,976,751
2,852,610
200: Utility Comm. & Transportation
24,749
22,287
22,700
21,750
19,950
300: Supplies, Materials & Services
438,490
406,297
474,440
441,261
497,080
500: Equipment, Land & Structures
5,743
3,445
0
9,000
0
600: Special Payments
3,751
1,034
0
30
0
122
090: Operating Transfers Out
10,642,483
5,728,846
3,602,550
3,602,550
3,602,550
100: Personnel Services
6,002,167
5,881,473
6,683,070
6,390,243
5,824,120
200: Utility Comm. & Transportation
77,049
68,702
70,940
71,470
53,420
300: Supplies, Materials & Services
1,647,455
1,910,510
2,257,704
2,295,321
1,979,960
500: Equipment, Land & Structures
602,973
870,784
1,662,084
1,547,710
1,115,800
550: Fleet
49,878
99,663
174,268
169,160
97,000
600: Special Payments
26,225,310
17,077,774
15,544,643
15,548,943
15,448,940
800: Bulk Power Purchase
46,404,576
37,548,114
43,205,800
37,013,625
40,468,090
900: Capital Projects0
(1)
4,003,021
2,211,139
3,330,500
160
090: Operating Transfers Out
18,690,505
3,551,451
1,060,120
1,060,120
1,060,120
100: Personnel Services
1,463,249
1,317,693
1,403,580
1,411,324
1,459,900
200: Utility Comm. & Transportation
804,908
764,755
721,150
721,180
720,950
300: Supplies, Materials & Services
2,957,276
895,347
1,650,605
1,705,677
577,510
400: Work for Others
322,520
287,850
345,000
345,000
315,000
500: Equipment, Land & Structures
6,855
51,404
1,231,640
1,516,637
47,000
550: Fleet
29,421
13,859
50,000
50,000
77,500
600: Special Payments
1,524,708
118,474
2,276,319
1,601,978
3,033,960
800: Bulk Power Purchase
1,200,000
1,212,000
1,224,000
1,224,000
1,236,240
900: Capital Projects
(1)
(1)
20,101,388
14,581,210
33,051,000
202
090: Operating Transfers Out
12,191,626
18,155,200
1,451,480
1,451,480
1,451,480
100: Personnel Services
3,008,822
2,889,217
3,282,310
3,214,765
3,303,560
200: Utility Comm. & Transportation
869,129
847,295
818,500
798,500
857,350
300: Supplies, Materials & Services
1,832,737
1,666,944
3,138,143
2,611,751
2,375,740
400: Work for Others
0
0
36,700
35,000
20,000
500: Equipment, Land & Structures
331,205
569,219
3,931,045
1,428,990
106,000
550: Fleet
29,421
73,214
607,148
575,000
177,500
600: Special Payments
3,113,329
3,163,749
4,314,940
4,314,940
4,329,770
900: Capital Projects
2
2
2,024,958
3,986,301
7,655,000
226
RESOLUTION NO. 2011-88
A RESOLUTION OF THE LODI CITY COUNCIL
ADOPTING THE CITY OF LODI FINANCIAL PLAN AND
BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1,
2011 AND ENDING JUNE 30, 2012, AND APPROVING
THE 2011/12 APPROPRIATIONS SPENDING LIMIT
WHEREAS, the City Manager submitted the 2011/12 balanced Financial Plan
and Budget to the City Council on May 19, 2011; and
WHEREAS, the 2011/12 Financial Plan and Budget was prepared in accordance
with the City Council's goals, budget assumptions, and policies; and
WHEREAS, the City Council conducted public budget meetings on May 3,
May 10, May 17, May 24, and June 1, 2011, at the Carnegie Forum; and
WHEREAS, the City Council is required to adopt the Appropriations Spending
Limit for 2011/12; and
WHEREAS, the Appropriations Spending Limit and the annual adjustment
factors selected to calculate the Limit are part of the Financial Plan and Budget.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lodi
as follows:
1. That the 2011/12 Financial Plan and Budget, as proposed by the City
Manager, be approved as follows:
Budget
General Fund
Police
$16,000,2 0
Fire
$ 9,320,840
Public Works
$ 1,559,390
City Clerk
$ 511,970
City Manager
$ 411,050
City Attorney
$ 445,940
Internal Services
$ 3,369,640
Economic Development
$ 568,350
Non -Departmental
$ 9,067,890
Total General Fund
$ 41,255,340
Other Funds
Electric Utility
$ 71,920,380
Water Utility
$ 41,579,180
Wastewater Utility
$ 20,276,400
Transit
$ 5,840,940
Streets
$ 4,241,290
Community Development
$ 1,110,500
Parks, Rec & Cultural Services
$
5,785,940
Libra
$
1,426,950
Transportation Development Act
$
50,000
Community Dev Block Grant
$
1,134,220
Public Safety Special Revenue
$
100,000
Capital Outlay
$
1,039,380
Equip & Vehicle Replacement
$
345,000
Debt Service
$
1,669,020
Benefits
$
7,210,210
Self Insurance
$
2,498,000
Trust and Agency
$
328,590
Fleet Services
$
1,896,400
Total Other Funds
$168,452,400
Total
$209,707,740
2. That the funds for the 2011/12 Financial Plan and Budget are appropriated
as summarized in the document on file in the City Clerk's Office; and
3. That the Appropriations Spending Limit be increased by $2,367,907 from the
2010/11 level of $75,523,822 to the 2011/12 level of $77,891,729.
Dated: June 1, 2011
I hereby certify that Resolution No. 2011-88 as passed and adopted by the City
Council of the City of Lodi in a regular meeting held June 1, 2011, by the following
votes:
AYES: COUNCIL MEMBERS — Hansen, Katzakian, Mounce, Nakanishi,
and Mayor Johnson
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS —None
ABSTAIN: COUNCIL MEMBERS — None
qRA JO
City Clerk
2011-88
City Council Meeting
June 1, 2011
udget I
Overview
■ General Fund balanced
■ Significant issues
■ Major capital projects
■ Changes from Draft Budget
2
All Funds
■ Total appropriation of $209,707,740
■ Total revenue of $206,255,790
■ Drawdown of reserves primarily in
Electric Utility
o Related to deferred maintenance projects
K.
General Fund
■ Balanced without using reserves
■ Total revenues and appropriations of
$41,255,340
■ Recommending 4 layoffs in lieu of
concessions
0 4 in the Police Officers Association
4
General Fund Overview J
General Fund
Fund Balance
Beginning Fund Balance Unreserved
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Fund Balance
Ending Fund Balance Unreserved
Audited Audited Estimated
2008.09 2009.10 2010.11 2010.11 2011.12
Actuals Actuals Budget Actuals Budget
4,159,007
3,383,191
3,831,962
3,896,576 3,961,428
41,015,454
40,547,920
41,321,750
41,321,690 41,255,340
41,791,270
40,034,535
41,371,750
41,256,838 41,255,340
(775,816)
513,385
(50,000)
64,852 -
3,383,191 3,896,576 3,781,962 3,961,428 3,961,428
Staffina J
Fiscal Year
Authorized
Funded
2009/10
457
421
20010/11
455
418
2011/12
440
388
Employee Concessions J
■ Council Appointees, Executive
Management, Confidential employees
and IBEW approved May 4
■ All other groups except Police Officers
Association and Dispatchers
Association on tonight's agenda
o Dispatchers Association expected to be
on June 15 agenda
;,
Employee Concessions J
* Equal to 9.96% of pay to be taken as a combination of furlough, waiver of admin leave cash out or deferred comp match
Waive
Waive 20
Deferred
hours
Fixed
Floating
Lowest
Waive
Waive
Waive
Total
Salary
PERS
Comp
Admin
Furlough
Furlough
Cost
Vacation
Holiday
Waive OT
CTO Cash
Org
Estimated
Bargaining Unit
Reduction
Payment
Match
Cash Out
Hours
Hours
Medical
Cash Out
Cash Out
Cash
Out
Changes
Savings
Council Appointees
7%
$46,835
Executive
Management
7%
$108,580
Confidential Mid
Managers
1%
96
48
$96,525
Confidential
1%
96
48
$27,375
Fire Mid Management
1%
207'
$86,410
Hold 3
positions
vacant/
Fire
5.3%
unfunded
$329,517
Mid Management
3.3%
96
$320,597
General Services
1%
96
48
$562,320
Maintenance &
Operators
1%
96
48
$553,220
Reduced
Elimination
COLA from
of 3
IBEW
3.5% to 2%
positions
$301,000
Police Mid
Management
1%
96
$202,330
Police Officers
Association
$0
Dispatchers
$0
Totals
$2,634,709
* Equal to 9.96% of pay to be taken as a combination of furlough, waiver of admin leave cash out or deferred comp match
Maior Cost Increases
■ Total salary and benefit cost increase over
FY 2010/11
o $6.6 million city-wide (without concessions)
■ $4.2 million in General Fund
■ Drivers of major cost increases
o Worker's Comp $2.2 million city-wide
■ $1.2 million in General Fund
o PERS Retirement $1.2 million city-wide
■ $0.9 million in General Fund
o PERS Medical $0.9 million city-wide
■ $0.4 million in General Fund
Worker's Comp
■ Actuarial every 2 years
■ Estimated June 30, 2010 liability
o At 6/30/08 actuarial (70%) $5.5 million
o At 6/30/10 actuarial (55%) $7.4 million
■ Estimated June 30, 2012 liability
o At 6/30/12 actuarial (55%) $7.6 million
■ Actual reserve at 6/30/10 $6.2 million
10
Worker's Comp J
■ Significant increase due to severity of
claims during reporting period
o Total number of claims stable
■ Current activity moderating
■ Expect lower actuarial liability
■ Contracting for actuarial as of June 30,
2011
11
Worker's Comp J
■ Proposing to fund actuarial deficit over
a two-year period
12
Retirement J
■ Composed of Employer and Employee
share
■ Historically, all paid by the City
■ Most employees begin paying all or a
portion of the Employee share in FY
2011/12
■ Maximum of 7% for Miscellaneous and
9% for Safety
13
Retirement
■ Past and future Employer Share
Fiscal Year
Misc.
Safety
2010/11
11.727%
23.838%
2011/12
13.680%
30.380%
2012/13 Est.
14.800%
31.600%
2013/14 Est.
1 17.900%
1 35.500%
14
Medical Costs
■ Contract with CalPERS for medical
coverage
■ Historically, almost all cost paid by City
o Employee share
■ $0 for single coverage
■ $80/month of employee +1 coverage
■ $104/month for family coverage
■ Projecting 12% increase in rates
15
Medical Costs J
■ Most employee groups moving to City
paying for lowest -cost medical based
upon January 1, 2012 plan costs
o Employee continue to pay share of cost
noted earlier
o Employee pay for plan costs above
lowest -cost HMO
16
Maior Capital Projects
■ Surface Water Treatment Plant ($28.8M)
■ Biosolids Dewatering Plant ($4.5M)
■ Water Meter Installation Phase 1 ($2.3M)
■ Wastewater Main Replacement Project #5
($2.1 M)
■ 12 kV Underground Cable Maintenance
($ 1. 1 M)
■ Transit Shop Solar Project ($1.OM)
■ Cape Seal Project ($1.OM)
17
Draft Budaet Changes J
■ Draft budget prepared prior to
employee concessions, management
changes and early retirements
o "Additional Reductions Needed" line item
captured additional salary and benefit
increases
18
Draft Budaet Changes
■ Fund/Department Summary pages
now reflect impact of:
o Early retirements
o Employee concessions
o Reduction in Worker's Comp expense
o Elimination of external LTD policy
19
General Fund Changes J
Department
2011/12 Draft
Budget
2011/12
Recommended
Budget
Increase/
(Decrease)
City Clerk
$485,670
$511,970
$26,300
City Manager
$405,840
$411,050
$5,210
City Attorney
$454,570
$445,940
($8,630)
Internal Services Department Total
$3,503,270
$3,369,640
($133,630)
Non -Departmental
$2,078,640
$2,078,640
$0
Economic Development
$568,350
$568,350
$0
Police
$15,961,380
$16,000,270
$38,890
Fire
$9,247,770
$9,320,840
$73,070
Public Works
$1,560,600
$1,559,390
($1,210)
Library
$1,349,180
$1,349,180
$0
Community Development
$150,200
$150,200
$0
Parks, Recreation, Cultural Services
$3,881,520
$3,881,520
$0
Streets
$554,600
$554,600
$0
Capital Projects
$1,053,750
$1,053,750
$0
Total
$41,255,340
$411255,340
$0
20
Enter
rise Fund Changes
■ Electric, Water and Wastewater
o No changes to revenue or expense
■ Transit
o Increased expenses by $27,750
o Absorbed by Fund Balance
21
ISIDecial R Fund Changesam
J
■ Library
o Restore $50,000 book budget and
$66,300 for part-time staff
■ No net change in appropriation
■ Community Development
o Increase appropriations by $43,540
o Reduces amount of deficit reduction
22
ISDecial R Fund Changesam
J
■ PRCS
o Expense reduction of $169,450
■ Results in reduction of cumulative deficit
o Movement of one position to Police
Department
23
Action Recluested J
■ Adopt resolution approving the City of
Lodi Financial Plan and Budget for FY
2011/12 and approving the FY
2011/12 Appropriation Spending Limit
24