HomeMy WebLinkAboutAgenda Report - February 20, 2013 I-01AGENDA ITEM low
CITY OF LODI
,. COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Approving Fiscal Year 2012/13 Mid -year Budget Adjustments
MEETING DATE: February 20, 2013
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Adopt resolution approving fiscal year 2012/13 mid -year budget
adjustments.
BACKGROUND INFORMATION: Staff presented information to the City Council in a Shirtsleeve
meeting on February 12, 2013. Appropriation adjustments are
needed in the General Fund, Parks, Recreation and Cultural
Services Fund, Public Safety Special Revenue Fund, HUD Federal Sustainable Communities Fund,
Capital Outlay Fund, and the Debt Service Fund. Specifics of each of the adjustments are detailed
below.
General Fund:
Revenue estimates for the General Fund are about $200,000 higher than projected at initial budget
adoption. Three key items make up the bulk of the change in estimated revenue: (1) the County
Assessor revised his estimates of property tax collections upwards resulting in additional revenue of
about $146,000 to the City; (2) stronger sales tax collections result in a projected $392,000 increase in
revenue; and (3) reduced recycled water sales due to the delayed start of the Lodi Energy Center
account for a reduction of revenue estimates of $240,000. Variances in a number of other accounts
make up the remainder of the difference in estimated revenue. Total General Fund estimated revenue is
$42,270,590.
The primary General Fund revenue sources are property taxes, sales taxes, PILOT, transfers from other
funds and Vehicle License Fees. Combined, these five revenue sources are expected to account for
approximately $33.8 million, or almost 80 percent of General Fund revenue. Estimated revenue for these
five accounts is about $613,000 higher than originally budgeted for these accounts. Significant
reductions of revenue estimates are in recycled water sales ($240,000) as discussed above, moving
violation revenues of $65,000 due to a shift in focus by the Police Department and a $60,000 reduction in
estimated revenue due to fewer call outs for the Fire Department strike team. Other accounts show
variances that account for the total revenue difference of $200,000 noted above.
At a department level, all departments are projected to show a savings against budget, except Non -
Departmental. The overage in Non -Departmental is related to adjustments associated with revising debt
service appropriations as a result of the refinancing of General Fund debt earlier this year. The table
below shows the departmental variances within the General Fund.
APPROVED:
Bartlam, City Manager
Department
2012/13
Budget
2012/13
Estimate
Over/ (Under)
Budget
City Attorney
$466,730
$466,470
($260)
City Clerk
$585,340
$558,820
($26,520)
City Manager
$418,040
$368,910
($49,130)
Economic Development
$618,690
$452,995
($165,695)
Fire
$9,581,630
$9,326,010
($255,620)
Internal Services
$3,374,420
$3,260,185
($114,235)
Non Departmental
$8,468,760
$8,955,535
$486,775
Police
$16,987,264
$16,466,670
($520,594)
Public Works
$1,570,400
$1,535,265
($35,135)
Total
$42,071,274
$41,390,860
($680,414)
Total savings against budget is $680,414 and is attributed to a variety of items.
Salary and benefits savings amount to approximately $465,000 and are primarily attributable to vacant
positions, changes in medical costs, reduced participation in the deferred compensation program and a
reduction in strike team call -outs. Services and supplies are showing a savings against budget of about
$215,000. Key drivers of these savings are a reduction in property tax administration fees paid to the
County and fewer DIVCA funded projects coming forward.
The General Fund contains appropriations for the debt service associated with the 2002 Certificates of
Participation (COPS). These COPS were refunded earlier this fiscal year resulting in a savings this fiscal
year that is to be transferred to the Capital Outlay Fund to fund the costs of replacing Fire Station 2. As a
result, appropriations in the Police Department, Economic Development, Parks, Recreation and Cultural
Services, Capital Outlay and Debt Service Funds will be adjusted to reflect the new debt service levels
and transfers.
Parks, Recreation and Cultural Services
The Parks, Recreation and Cultural Services (PRCS) fund is projecting revenues to be $464,000 below
initial budget and expenditures to be $550,000 below budget. Program revenues are on target with initial
budget estimates. Transfers from the General Fund to support debt service payments have been
reduced to reflect the revised debt service amounts resulting from the refinancing addressed earlier.
Expenditure savings against budget total about $550,000. Debt service savings account for $467,000 of
this amount. Program savings account for the balance and primarily consist of salary and benefit
savings.
Public Safety Special Revenue Fund
At the time of initial budget adoption, the status of state COPS grants was uncertain. Historically, the City
has received $100,000 each year from this source. Staff initially budgeted $50,000 for this item.
Subsequent to budget adoption, the City was informed that we would receive $100,000 this year.
Additionally, the Police department has been successful in obtaining additional grant funds that should be
recognized for budgetary purposes. Council is requested to recognize the additional revenue sources
totaling $99,005 and to appropriate $50,000 toward current year expenditures.
HUD Federal Sustainable Communities Fund
The Sustainable Communities grant from Housing and Urban Development is $52,000 higher than shown
in the adopted budget. Both revenues and expenditures are requested to be adjusted to this higher grant
level.
Capital Outlay Fund
Transfers into the Capital Outlay Fund will be $1,181,630 higher than initially budgeted due to the
refinancing of General Fund supported debt. This additional funding is designated to fund the
replacement costs for Fire Station 2. The attached appropriation adjustment form reflects this higher
funding level. Additional funds totaling $2.2 million will flow into this fund over the next three years as a
result of this refinancing.
Debt Service Fund
Revenues and expenditures of the Debt Service fund are to be reduced by $1,181,630 as a result of the
refinancing addressed earlier.
FISCAL IMPACT: General Fund: Reduce appropriations in Police ($535,640) and Economic
Development ($178,545) with offsetting increase in Non -Departmental ($714,185);
no net impact on appropriations.
Parks, Recreation and Cultural Services: Reduce Transfers In and Transfers Out by $467,445.
Public Safety Special Revenue Fund: Increase estimated revenue by $99,005 and appropriations by
$50,000.
HUD Federal Sustainable Communities Fund: Increase estimated revenue and appropriations by
$52,000.
Capital Outlay Fund: Increase Transfers In by $1,181,630.
Debt Service Fund: Reduce Transfers In and appropriations by $1,181,630.
Jordan Ayers
Deputy City Manager
JA/ja
RESOLUTION NO. 2013-23
A RESOLUTION OF THE LODI CITY COUNCIL
AMENDING THE CITY OF LODI FINANCIAL PLAN AND
BUDGET FOR THE FISCAL YEAR BEGINNING
JULY 1, 2012 AND ENDING JUNE 30, 2013
WHEREAS, the City Council adopted a balanced Financial Plan and Budget for
Fiscal Year 2012/13 on June 6, 2012; and
WHEREAS, the adopted 2012/13 Financial Plan and Budget was prepared in
accordance with the City Council's goals, budget assumptions, and policies; and
WHEREAS, revisions to the adopted 2012/13 Financial Plan and Budget are
necessary to address additional revenues, operating changes, and expenditure
estimates.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi
does hereby revise the adopted 2012/13 Financial Plan and Budget for the General
Fund, Parks, Recreation and Cultural Services Fund, Public Safety Special Revenue
Fund, HUD Federal Sustainable Communities Fund, Capital Outlay Fund, and the Debt
Service Fund as noted on the attached Appropriation Adjustment Request.
Dated: February 20, 2013
I hereby certify that Resolution No. 2013-23 as passed and adopted by the City
Council of the City of Lodi in a regular meeting held February 20, 2013, by the following
votes:
AYES: COUNCIL MEMBERS — Hansen, Katzakian, Mounce, and
Mayor Nakanishi
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — Johnson
ABSTAIN: COUNCIL MEMBERS — None
RA JOHL
City Clerk
2013-23
1. AA#
2, JV#
FUND # BUS. UNIT # ACCOUNT #
230 2301 5698
234 2341 5566
ACCOUNT TITLE
Asset Seizure Fund
JAG Grants
$
$
AMOUNT
18,600.00
18,175.0050,000.00
A.
SOURCE OF
FINANCING
235
2351 5605
State COPS Grant
$
rs
236 2361 5604 Distracted Driverant $
444 4441 5569 HUD Sustainable Communities $
12,230.00
52,000.00
1211 n/a 4210 Ca ifal im rovement Transfer In $
347 n/a 4210 PRCS Transfer In $
410 n/a 4210 Debt Service Transfer In $
1,181,630.00
467,445.00
(1,181,630.00)
B.
USE OF
FINANCING
235
2351001 7359
State COPS Grant
$
50,000.00
347 n/a 4220 PRCS Transfer Out $
100 1002058099 Special Pa ments $
467,445.00
714,185.00
100
101031 8099
Police Administration/Special Pmts
$
535,640.00
100 100431 8099 Economic Develo menf/S ec Pmts $
178,545.00
410 410032 7924 Debt Service Bond Interest $
526,630.00
410 410032 7925 Debt Service Bond Principal $
444 444001 7323 Development Code Update $
655,000.00
52,000.00
7 _:YEN4 -ft* ASE _ ag O' : ® DEs w€lia C `G '
Please provide a description of the project, the total cost of the project, as well as justification far the
requested adjustment. if you need more space, use an additional sheet and attach to this form.
FY 12/13 Mid -year adjustments. Police Special Revenue Fund - recognize unbudgeted revenues from grants; Debt Service -
adjustments to budget for debt service savings due to refinancing; savings transferred to Capital improvement Fund
If Council has authorized the appropriation adjustment, complete the following:
Meeting Date: Res No: Attach copy of resolution to this form.
Department Head Signature:
Deputy City Manager/Internal Services Manager
Date
City Council Meeting
February 20, 2013
dget
General Fund J
Fund Balance
Ending Fund Balance Unreserved
6,164,685 3,968,897 7,044,415 3,075,518
2
Audited
Estimated
Budget to
2011-12
2012-13
2012-13
Est. Actuals
Actuals
Budget
Actuals
Variance
eneral Fund
Fund Balance
Beginning Fund Balance Unreserved
5,597,678
3,968,897
6,164,685
2,195,788
Revenues
40,520,257
42,071,274
42,270,590
199,316
Expenditures
39,953,250
42,071,274
41,390,860
(680,414)
Net Difference (Revenues Less Expenditures)
567,007
-
879,730
879,730
Fund Balance
Ending Fund Balance Unreserved
6,164,685 3,968,897 7,044,415 3,075,518
2
Der)artmental Variances J
Department
2012/13
Budget
2012/13
Estimate
Over/ (Under)
Budget
City Attorney
$466,730
$466,470
($260)
City Clerk
$5859340
$558,820
($26,520)
City Manager
$4189040
$368,910
($499130)
Economic Development
$6189690
$452,995
($165,695)
Fire
$9,581,630
$9,326,010
($255,620)
Internal Services
$373747420
$3,260,185
($114,235)
Non Departmental
$8,468,760
$8,955,535
$486,775
Police
$16,9879264
$16,466,670
($520,594)
Public Works
$1,570,400
$1,535,265
($35,135)
Total
$429071,274
$41,390,860
($680,414)
Parks, Recreation & Cultural
Services
Fund Balance
Ending Fund Balance Unreserved
(861,843) (785,464) (746,353) 39,111
4
Audited
Estimated
Budget to
2011-12
2012-13
2012-13
Est. Actuals
Actuals
Budget
Actuals
Variance
arks Recreation &Cultural Svcs Fund
Fund Balance
Beginning Fund Balance Unreserved
(846,381)
(815,032)
(861,843)
(46,811)
Revenues
5,773,466
6,009,620
5,545,455
(464,165)
Expenditures
5,788,928
5,980,052
5,429,965
(550,087)
Net Difference (Revenues Less Expenditures)
(15,462)
29,568
115,490
85,922
Fund Balance
Ending Fund Balance Unreserved
(861,843) (785,464) (746,353) 39,111
4
Water Utility
Audited
2011-12
Actuals
Water Utility Enterprise Fund
Cash Balance
Beginning Cash Balance 12,807,412
Estimated
Budget to
2012-13 2012-13
Est. Actuals
Budget Actuals
Variance
14,656,699 12,465,350 (2,191,349)
Revenues
13,678,648
20,822,160
19,165,055
(1,657,105)
Expenditures
14,020,710
23,932,381
21,253,970
(2,678,411)
Net Difference (Revenues Less Expenditures)
(342,062)
(3,110,221)
(2,088,915)
1,021,306
Cash Balance
Ending Cash Balance
12,465,350 11,546,478 10,376,435 (1,170,043)
Wastewater Utility
Audited
2011-12
Actuals
Wastewater Utility Enterprise Fund
Cash Balance
Beginning Cash Balance 10,606,065
Estimated
Budget to
2012-13 2012-13
Est. Actuals
Budget Actuals
Variance
8,380,707 12,513,936 4,133,229
Revenues
15,947,883
14,235,330
14,122,000
(113,330)
Expenditures
14,040,012
15,330,026
14,557,200
(772,826)
Net Difference (Revenues Less Expenditures)
1,907,871
(1,094,696)
(435,200)
659,496
Cash Balance
Ending Cash Balance
12,513,936 7,286,011 12,078,736 4,792,725
R
Electric Utility J
Cash Balance
Ending Cash Balance
* Local cash, excluding NCPA General Operating Reserve (GOR)
2,143,190 3,919,363 1,509,205 (2,410,158)
II
Audited
Estimated
Budget to
2011-12
2012-13
2012-13
Est. Actuals
Actuals
Budget
Actuals
Variance
lectric Utility Enterprise Fund
Cash Balance
Beginning Cash Balance *
5,032,177
2,627,569
2,143,190
(484,379)
Revenues
65,646,115
70,453,990
67,848,005
(2,605,985)
Expenditures
68,535,102
69,162,196
68,481,990
(680,206)
Net Difference (Revenues Less Expenditures)
(2,888,987)
1,291,794
(633,985)
(1,925,779)
Cash Balance
Ending Cash Balance
* Local cash, excluding NCPA General Operating Reserve (GOR)
2,143,190 3,919,363 1,509,205 (2,410,158)
II
Community Development
Fund Balance
Ending Fund Balance Unreserved
293,173 313,487 664,338 350,851
Audited
Estimated
Budget to
2011-12
2012-13
2012-13
Est. Actuals
Actuals
Budget
Actuals
Variance
ommunit Develo ment Fund
Fund Balance
Beginning Fund Balance Unreserved
66,810
303,367
293,173
(10,194)
Revenues
1,265,483
1,176,670
1,508,260
331,590
Expenditures
1,039,120
1,166,550
1,137,095
(29,455)
Net Difference (Revenues Less Expenditures)
226,363
10,120
371,165
361,045
Fund Balance
Ending Fund Balance Unreserved
293,173 313,487 664,338 350,851
Self Insurance J
Cash Balance
Ending Cash Balance
9,984,980 9,839,615 11,298,770 1,459,155
Audited
Estimated
Budget to
2011-12
2012-13
2012-13
Est. Actuals
Actuals
Budget
Actuals
Variance
elf Insurance Internal Services Funds
Cash Balance
Beginning Cash Balance
8,530,181
9,050,835
9,984,980
934,145
Revenues
3,647,642
3,039,780
3,026,510
(13,270)
Expenditures
2,192,843
2,251,000
1,712,720
(538,280)
Net Difference (Revenues Less Expenditures)
1,454,799
788,780
1,313,790
525,010
Cash Balance
Ending Cash Balance
9,984,980 9,839,615 11,298,770 1,459,155
Libra
�ibrary Fund
Fund Balance
Beginning Fund Balance Unreserved
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Fund Balance
Ending Fund Balance Unreserved
Audited
Estimated
Budget to
2011-12
2012-13 2012-13
Est. Actuals
Actuals
Budget Actuals
Variance
56,458
41,078
67,774
26,696
1,438,172
1,427,430
1,433,950
6,520
1,426,856
1,420,530
1,397,730
(22,800)
11,316
6,900
36,220
29,320
67,774 47,978 103,994 56,016
10
Streets
treet Fund
Fund Balance
Beginning Fund Balance
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Fund Balance
Ending Fund Balance
Audited
Estimated
Budget to
2011-12
2012-13 2012-13
Est. Actuals
Actuals
Budget Actuals
Variance
7,589,026
9,312,492
6,513,011
(2,799,481)
4,932,577
4,295,920
4,202,005
(93,915)
6,008,592
5,431,736
4,189,810
(1,241,926)
(1,076,015)
(1,135,816)
12,195
1,148,011
6,513,011 8,176,676 6,525,206 (1,651,470)
11
Transit
ransit Fund
Fund Balance (Net Assets)
Beginning Fund Balance (Net Assets) Unreserved
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Fund Balance (Net Assets)
Ending Fund Balance (Net Assets) Unreserved
Audited
Estimated
Budget to
2011-12
2012-13 2012-13
Est. Actuals
Actuals
Budget Actuals
Variance
2,509,652
3,301,731
3,203,015
(98,716)
4,646,423
5,080,550
5,297,855
217,305
3,953,060
7,539,272
7,352,245
(187,027)
693,363
(2,458,722)
(2,054,390)
404,332
3,203,015 843,009 1,148,625 305,616
12
Adjustments Recommended J
■ General Fund
o Reduce appropriations in Police ($565,640) and
Economic Development ($178,545) with
offsetting increase in Non -Departmental
($714,185)
■ Parks, Recreation and Cultural Services
■ Reduce Transfers In and Out ($467,445)
■ Public Safety Special Revenue Fund
■ Increase revenue ($99,005) and
appropriations ($50,000)
13
Adjustments Recommended J
■ HUD Federal Sustainable Communities
o Increase revenue and appropriations ($52,000)
■ Capital Outlay Fund
o Increase Transfers In ($1,181,630)
■ Debt Service Fund
o Reduce Transfers In and appropriations
($1,181,630)
14
Action Reauested
■ Adopt resolution recognizing additional
revenues and/or appropriating funds for:
o General Fund
o Parks, Recreation and Cultural Services
o Public Safety Special Revenue Fund
o HUD Federal Sustainable Communities Fund
o Capital Outlay Fund
o Debt Service Fund
15