HomeMy WebLinkAboutAgenda Report - June 6, 2012 I-01rap I
CITY OF LODI
COUNCIL COMMUNICATION
,m
AGENDATITLE: Adopt Resolution Approving the City of Lodi Financial Plan and Budget for the
Fiscal Year Beginning July 1, 2012 and Ending June 30, 2013 and Approving the
Fiscal Year 2012/13 Appropriation Spending Limit
MEETING DATE: June 6,2012
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, 2012 and ending June 30,
2013 and approving the Fiscal Year 2012/13 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 2012/13 budget. Council
has previously received information on this budget at Shirtsleeve
meetings on May 1, 8, 15 and 22. A draft budget document was released on May 17.
The General Fund Budget for FY 2012/13 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 $660,000.
The General Fund budget is $41,909,940, an increase of $654,600 over the prior year. The All -Funds
budget is $176,227,820, a decrease of $33.5 million, or about 16 percent from the previous year. The
bulk of this decrease 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.
The City has been operating under annual concession agreements with all of its bargaining units. While
concession agreements have allowed the City to meet its budgetary requirements, such concession
agreements are not conducive to long-term planning. Of the City's nine bargaining units, eight had labor
agreements that expired during FY 2011/12. The City has negotiated agreements with all but two of the
eight units, along with modifying the benefits for Executive, Council Appointees and Confidential
employees. The City has not reached agreements with the Police Officers Association or the
Dispatchers Association. The only bargaining unit whose agreement did not expire during FY 2011/12
was the International Brotherhood of Electrical Workers (IBEW). That agreement will expire on
December 31,2013.
onradt Bartla`m, C y Manager
Each of the completed agreements addressed three fundamental issues for the City: capping medical
costs, employees paying their share of retirement costs and establishing a second-tier retirement system.
Some bargaining units had agreed to an employer paid medical cap as a concession and continued with
the medical cap in their successor agreement. Other bargaining units have agreed to cap medical costs
at the January 2012 rate effective January 2013.
Prior to FY 2011/12, the City paid 100 percent of the employee share of retirement cost. As a
concession for FY 2011/12, each bargaining group had agreed to pay a portion of the employee share of
retirement cost. Negotiated successor agreements include the employees paying their full share of
retirement cost over the term of the agreement.
Finally, the City sought, and the bargaining groups have agreed, to establish a second-tier retirement
system. For Safety personnel, the second tier will be based upon a 3% @ 55 formula, with final
compensation based upon the highest 36 months compensation. This compares to the current formula of
3% @ 50, with final compensation based upon single highest year compensation. For Miscellaneous
personnel, the second tier will be based upon a 2% @ 60 formula, as compared to the current formula of
2% @ 55.
The cumulative savings associated with the negotiated agreements for FY 2012/13 is about $1.5 million.
Negotiations continue with the Police Officers Association and the Dispatchers Association. We have
had positive discussions with both groups, but have not come to agreement on all terms for successor
contracts.
As a concession for FY 2011/12, the Police Officers Association agreed to un -fund two Officer positions
and the Dispatchers Association agreed to un -fund one Dispatcher/Jailer position. The budget, as
drafted, continues to un -fund these concession positions along with un -funding one additional Officer
position.
Further, due to funding constraints within the Police Department, two additional positions are un -funded
for FY 2012/13: one Assistant Animal Control Officer and one Police Records Clerk.
All told, six positions are unfunded within the Police Department to allow for a balanced budget. All six
positions are vacant.
As agreements are reached with these two bargaining units, any savings is expected to be applied to
funding the positions or vehicle replacements that were un -funded to balance the budget.
New positions recommended by the City Manager are an Electric Engineering Manager and a Field
Services Representative in Electric Utility and an Associate Engineer in Public Works.
One change to note between the draft and final budget relates to the Water Utility. The draft budget did
not include funding for a part-time Treatment Plant Operator position for plant start-up. The additional
cost of $50,000 for the temporary position is included in the attached resolution.
Significant capital projects included in the budget include:
• Surface Water Treatment Plant ($6 million -bond funded)
o Completion of construction of a treatment plant and appurtenances for treating
Mokelumne River water
• Street Resurfacing ($1.25 million - gas tax funded)
o Resurface portion of Ham Lane and Mills Avenue
• Water Meter Installation ($1.2 million -rate funded)
o Continuing design and construction of the meter installation program
• Transit Security Equipment ($478,000 -ARRA and Prop. 1B funded)
o Design and install camera system for the Lodi Transit Facility
• Transit Shop Solar Project ($400,000 -ARRA funded)
o Construct ancillary structure and install solar panels for maintenance shop
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 2012/13 fiscal year. This limit represents the
maximum spending authority for the City based upon population and inflation changes over the last year.
The 2012/13 Appropriation Limit is $81,450,625, an increase of $3,558,896 from the prior year. Details
of the calculations are attached as Attachment 1 and ExhibitsA through G.
FISCAL IMPACT: The 2012/13 budget provides an expenditure plan for all funds. The All -Funds
budget is $176,227,820, a decrease of $33.5 million, or about 16 percent from the
previous year. The bulk of this decrease is related to the appropriations for the Water
Treatment Plant project. The General Fund Budget is $41,909,940, an increase of
$654,600 over the prior year's budget.
Jordan Ayers, Deputy City anager
Attachments
ATTACHMENT 1
2012-13 FINANCIAL PLAN AND BUDGET
APPROPRIATIONS SPENDINGLIMIT
2012.13 APPROPRIATIONS SPENDING .IM
2012-13 APPROPRIATIONS SUBJECT TO LIMITATION
PROCEEDS OF TAXES
EXCLUSIONS
31,470,842
APPROPRIATIONS SUBJECT TO LIMITATION 31,470,842
CURRENT YEAR LIMIT
81,450,625
EXHIBIT A
City of Lodi
Appropriations Spending Limit
Fiscal Year 2012-13
B. Adjustments Factors
1 Population % 1.0077 (ExhibitB)
2 Inflation % 1.0377 (State Finance)
Total Adjustment % 1.04569 (Bl*B2)
C. Annual Adjustment 3,558, 896 (B*A)
D. Other Adjustments None
E. Total Adjustments 3,558,896 (C+D)
F. This Year's Limit 81,450,625 (A+E)
City of Lodi EXHIBIT B
Appropriations Spending Limit
Growth Factors/Calculations
FACTORS:
87-88
3.47
5.72
3.33
88-89
4.66
4.96
3.32
89-90
5.19
2.52
220
90-91
421
226
223
91-92
4.14
1.19
2.64
92-93
-0.64
0.97
2.41
93-94
272
0.73
213
94-95
0.71
0.51
1.57
95-96
4.72
1.31
1.59
96-97
4B7
1.66
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
-127
214
3.07
03-04
2.31
1.69
2.86
04-05
328
0.75
2.54
05-06
526
0.96
265
06-07
3.96
0.30
200
07-08
4.42
0.90
1.73
08-09
4.29
0.66
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
12-13
3.77
0.77
1.05
87-88
1.0347 x 1.0572 = 1.0939
1.0939 x $22,654,787
889
1.0466x1.0496=1.0985
1.09&5 x $24,782,072
89-90
1.0519 x 1.0252 =1.0784
1.0784 x 327,223,106
$24,782,072
$27,223,106
$29,357,398
90-91
1.0421 x 1.0226 =1.0657
1.0657 x $29,357,398
91-92
1.0414 x 1.0264 =1.0689
1.0689 x $31,286,179
92-93
.9936 x 1.0241 =1.0175
1.0175 x 33,441,797
93-94
1.0272 x 1.0213 =1.0491
1.0491x 34,027,028
94-95
1.0071 x 1.0157 =1.0229
1.0229 x 35,697,755
95-96
1.0472 x 1.0131 =1.0609
1.0609 x 36515,234
96-97
1.0467x1.0168=1.0643
1.0643 x 38739012
97-98
1.0467x1.0070=1.0540
1.0540x 41,229,332
98-99
1.0415x1.01160=1.0536
1.0536x 43,456,825
99-00
1.0453x 1.0194-1.0656
1.0656x45,785,303
00-01
1.0491x1.0129=1.0626
1.0626x48,787,849
01-02
1.0782x1.0190=1.0987
1.0986858
02-03
.9873x 1,0214=1.00843
1.00842822
03-04
1,0231 x1.0169=1,0404
1.04039039
04-05
1.0328x 1.0075=1.040546
1.040546
05-06
1.0526x1.0096=1.06270496
1.06270496
06-07
1.0396x1.0030=1,0427188
1.0427188
07-08
1.0442x 1.0090=1.0535978
1.0535978
08-09
1.0429x 1.0068=1.0499917
1.0499917
09-10
1.0062x1.0042=1.01042604
1.01042604
10-11
.9746x1.0061=.98054506
0.98054506
11-12
1.0251x1.0061=1.03135311
1,03135311
12-13
1.0377x1.0077=1.04569029
1.04569029
12-13 Appropriations Subjeetto
Limit:
$31,470,842
$8 L450,625
531,286,179
$33,441,797
$34,027,028
S35,697,755
$36,515,234
$38,739,012
$41,229,332
$43,456,825
$45,785,303
$48,787,849
$51,843,597
$56,959,824
$57,439,894
$59,759,913
562,182,939
$66,082,118
$68,905,066
$72,598,226
$76,227,535
$77,022,286
$75,523,822
$77,891.729
$81,450,625
38.64%
APPROPRIATIONSSUBJECTTO LIMITATION
City of Lodi
Fiscal Year 2012-13
A. PROCEEDS OF TAXES
B. EXCLUSIONS
C. APPROPRIATIONS SUBJECT TO LIMITATION
D. CURRENT YEAR LIMIT
E. OVER(UNDER) LIMIT
J
3i,A7n�gd7
81,450,625
31.470.842 = 38.64%
81,450,625
EXIIIBIT C
(Exhibit F)
(Exhibit D)
(A -B)
(Exhibit A)
(C -D)
EXCLUDED APPROPRIATIONS
City of Lodi
Fiscal Year 2012-13
EXHIBIT D
COURT ORDERS
Subtotal None
FEDERAL MANDATES
Subtotal None
QUALIFIED CAPITAL OUTLAYS
Subtotal None
QUALIFIED DEBT SERVICE
Subtotal Npne I
TOTAL EXCLUDABLE I Nang- I
(Copy to Exhibit C & G)
City of Lodi
Schedule to Match User Fees to Costs
Fiscal Year 2012-13
EXHIBIT E
Public Safety Fees
361,490
26,473,560
Parks and Rec/Cultural Fees
1,504,410
5,823,440
Community Development Fees
393,970
1,166,550
PW Engineering Fees
154,960
730,220
Library Fees
42,000
1,420,530
Total
2,456,830
35,614,300
0
0
0
0
0
0
City of Lodi
Fiscal Year 2012-13
TAXES:
Property Taxes
Sales & Use Tax
Business License Tax
Franchise Tax
Transient Occupancy Tax
Real Property -DocumentaryTax
In-LieuFranchiseTax
FROM STATE
Motor Vehicle In Lieu
State H -way Maintenance
Gas Tax
Cigarettetax
Transportation DevelopmentAct
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 SuppressionGrant
State special grants
Traffic Congestion Relief
State STIP reimbursement
LOCALLY RAISED
Fines, Forfeitures, Penalties
Licenses and permits
Rent of City Property
DevelopmentFees
USER FEES
(from Exhibit E)
OTHER MISCELLANEOUS
Sale of Property
Restitution-Damageto Property
Other revenue
Interfund Transfers
SUBTOTAL
(for Exhibit G)
INTEREST EARNINGS
(from Exhibit G)
TOTALREVENUE
(use for Exhibit C)
RESERVE WITHDRAWALS
(Including appropriated Fund Balance)
TOTAL OF THESE FUNDS
OTHER FUNDS NOT INCLUDED
GRANDTOTALBUDGET
EXHIBIT F
Calculation - Proceeds of Taxes
7 Rin inn 1
7 Rin Inn
5,880,440
279.750 9,160,220
1414 900
1414 900
1,714,480
1714 480
433200
433200
98,900
98,900
6,976.670
6,916,670
4,067,830
4067830
11.400
11,400
1,567,700
1567700
543,400
0
1,645,200
1645 200
39,200
39,200
n
n
800,000
800,000
35,000
35,000
10,000
10,000
n
n
1
50000
n
0
301,4101
301,410
246-9001
246900
0
01
0
1,274,100
1,274,100
626,610
626,610
832,350
832,350
543,400
543,400
3,500
3,500
500
500
1,720,730
1,720,730
5,432,990
5432990
n
EXHIBIT G
B. MINUS EXCLUSIONS I fi 1 (Exhibit D)
C. NET INVESTED TAXES Iii �yc�n I (A -B)
D. TOTAL NON-INTEREST BUDGET I 199aIA,14 ^(Exhibit F)
E. TAX PROCEEDS AS PERCENT
OF BUDGET 6271;%l (C/D)
F, INTEREST EARNINGS I nA4
G. AMOUNT OF INTEREST EARNED 31,V I (E*F)
FROM TAXES
H. AMOUNT OF INTEREST EARNED
ON NON -TAXES (F -G)
I. Take the result of steps #G & H
Copy on to Exhibit F
A RESOLUTION OF THE LODI CITY COUNCIL
ADOPTING THE CITY OF LODI FINANCIAL PLAN AND
BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1,
2012 AND ENDING JUNE 30, 2013, AND APPROVING
THE 2012/13 APPROPRIATIONS SPENDING LIMIT
------------------------------------------------------------------
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WHEREAS, the City Manager submitted the 2012/13 balanced Financial Plan
and Budget to the City Council on May 17,2012; and
WHEREAS, the 2012/13 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 1,
May 8, May 15, May 22, and June 6, 2012, at the Carnegie Forum; and
WHEREAS, the City Council is required to adopt the Appropriations Spending
Limitfor 2012/13; 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 2012/13 Financial Plan and Budget, as proposed by the City
Manager, be approved as follows:
Budaet
General Fund
Police
$16,891,930
Fire
$9,581,630
Public Works
$1,570,400
City Clerk
$585,340
City Manager
$418,040
City Attorney
$466,730
Interna! Services
$3,374,420
Economic Development
$618,690
Non -Departmental
$8,402,760
Total General Fund
$41,909,940
Other Funds
Electric Utility
$68,827,180
Water Utility
$18,853,250
Wastewater Utility
$13,701,870
Transit
$4,690,760
Streets
$3,857,690
-Community Development
$1,166,550
Parks, Rec & Cultural Services
$5,823,440
Library
$1,420,530
Transportation Development Act
$55,000
Community Dev Block Grant
$889,540
Public Safety Special Revenue
$337,580
Capital Outlay
$739,700
Equip & Vehicle Replacement
$368,500
Debt Service
$1,667,910
Benefits
$7,565,160
Self Insurance
$2,251,000
Trust and Agency
$283,000
Fleet Services
$1,819,220
Total Other Funds
$134,317,880
Total
$176,227,820
2. That the funds for the 2012/13 Financial Plan and Budget are appropriated
as summarized in the document on file in the City Clerks Office; and
3. That the Appropriations Spending Limit be increased by $3,558,896 from the
2011/12 level of $77,891,729to the 2012/13 level of $81,450,625.
Dated: June 6, 2012
I hereby certify that Resolution No. 2012-89 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held June 6, 2012, by the following
votes:
AYES: COUNCIL MEMBERS — Hansen, Katzakian, Nakanishi, and
Mayor Mounce
NOES: COUNCIL MEMBERS — Johnson
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
JOHL
City Clerk
2012-89
City Council Meeting
June 6, 2012
udget I
Overview
■ General Fund balanced
■ Significant issues
■ Major capital projects
2
All Funds
■ Total appropriation of $176,227,820
■ Total revenue of $181,753,700
■ Increase in reserves of $5.6M
o Enterprise funds ($4.5M)
o Insurance ($0.8M)
o Others ($0.3M)
K.
General Fund
■ Balanced without using reserves
■ Total revenues and appropriations of
$41,909,940
■ Recommending 6 positions unfunded in
Police Department to balance budget
0 3 Police Officers
0 1 Dispatcher/Jailer
0 1 Records Clerk
0 1 Assistant Animal Services Officer
4
General Fund Overview J
Audited
Audited
Estimated
2009-10
2010-11
2011-12
2011-12
2012-13
Actuals
Actuals
Budget
Actuals
Budget
General Fund
Fund Balance
Beginning Fund Balance Unreserved
3,383,191
3,896,576
3,961,428
5,597,678
3,968,897
Revenues
40,547,920
41,889,230
41,255,340
41,182,451
41,909,940
Expenditures
40,034,535
40,188,128
43,136,412
42,811,232
41,909,940
Net Difference (Revenues Less Expenditures)
513,385
1,701,102
(1,881,072)
(1,628,781)
-
Fund Balance
Ending Fund Balance Unreserved
3,896,576
5,597,678
2,080,356
3,968,897
3,968,897
Labor Nea0tia-tions J
■ 8 of 9 bargaining units' agreements expired
in 2011/12
■ Negotiated successor agreements with all
but 2 units
o Police Officers Association
o Dispatchers Association
■ Discussions on-going with both
■ Modified benefits for Executives, Council
Appointees, Council and Confidential
R
Labor Neclotia-tions J
■ Key elements of new agreements
o Employee share of PERS
■ Employees pay full share by end of
agreement
o Medical Cost Cap
■ City cost capped at January 2012 rates
0 2nd Tier Retirement
■ Safety -3% @ 55; highest 36 months
■ Miscellaneous -2% @ 60
►,
Maior Capital Projects J
■ Surface Water Treatment Plant completion
($6.OM)
■ Electric System Maintenance ($1.4M)
■ Road Maintenance/Resurfacing ($1.25M)
■ Water Meter Design/Installation ($1.2M)
■ PCE/TCE Remediation ($1.OM)
■ Wastewater Collection/Treatment System
Maintenance ($0.86M)
.1
Action Recluested J
■ Adopt resolution approving the City of
Lodi Financial Plan and Budget for FY
2012/13 and approving the FY
2012/13 Appropriation Spending Limit