HomeMy WebLinkAboutAgenda Report - June 5, 2013 I-01CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Approving the City of Lodi Financial Plan and Budget for the
Fiscal Year Beginning July 1, 2013 and Ending June 30, 2014 and Approving the
Fiscal Year 2013/14 Appropriation Spending Limit
MEETING DATE: June 5, 2013
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, 2013 and ending June 30,
2014 and approving the Fiscal Year 2013/14 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 2013/14 budget. Council
has previously received information on this budget at Shirtsleeve
meetings on April 30, May 7, 14 and 21. A draft budget document was released on May 16.
The General Fund Budget for FY 2013/14 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 $7.742 million. This level of reserve will fully fund both the
Catastrophic Reserve and the Economic Reserve at about $3.376 million each and leave just under $1
million in uncommitted reserves.
The General Fund budget is $42,198,820, an increase of $288,880 over the 2012/13 initially adopted
budget. The All -Funds budget is $177,781,720, an increase of $1.6 million, or about 1 percent over the
previous year. The increase is related to capital projects.
All bargaining group agreements expire during the budget year. We look to continue the key terms of the
contracts negotiated over the past year. Further, we look to bring consistent terms to the one labor
agreement that did not expire in the last year. The budget has been built on the basis of the existing labor
agreements. Any changes to agreements will generate mid -year adjustments to the budget.
Total funded positions are four lower than prior year. Three positions are the result of retirements and
the fourth is a net decrease from operational changes in a number of departments.
APPROVED: L,A I -
Konradt Bartlam, City Manager
Significant capital projects included in the budget are:
• Fire Station 2 ($1.1 million)
o Design and partial construction costs for the replacement for Fire Station 2
• Street Resurfacing and Enhancement ($2.2 million)
o Resurface portion of Ham Lane and enhance Sacramento Street
• Water Meter Installation ($0.7 million)
o Continuing design and construction of the meter installation program
• Transit Equipment ($1.85 million)
o Purchase 12 replacement buses
• Financial Systems Replacement ($1.0 million)
o Replace existing financial and utility billing systems
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 2013/14 fiscal year. This limit represents the
maximum spending authority for the City based upon population and inflation changes over the last year.
The 2013/14 Appropriation Limit is $86,108,936, an increase of $4,658,311 from the prior year. Details
of the calculations are attached as Attachment 1 and Exhibits A through G.
FISCAL IMPACT: The 2013/14 budget provides an expenditure plan for all funds. The All -Funds budget
is $177,781,720, an increase of $_ o
1.6 million, or about 1 percent _ over the previous
year. The bulk of this increase is related to capital projects. The General Fund
Budget is $42,198,820, an increase of $288,880 over the prior year's budget.
Jordan Ayers, Deputy City Hager
Attachments
2013-14 FINANCIAL PLAN AND BUDGET
APPROPRIATIONS SPENDING LIMIT
2013-14 APPROPRIATIONS SPENDING LIMIT
ATTACHMENT 1
Last Year's Limit 81,450,625
Factors
1 Population % 1.0057
2 Inflation % 1.0512
Total Adjustment %
Annual Adjustment
Adjustments
Total Adjustments
11 =-14i"'PRC?IkL IA' `)t3NS PE1 I)IN
2013-14 APPROPRIATIONS SUBJECT TO LIMITATION
1.05719
4,658,311
None
4,658,311
PROCEEDS OF TAXES 32,857,542
EXCLUSIONS -
APPROPRIATIONS SUBJECT TO LIMITATION 32,857,542
CURRENT YEAR LIMIT 86,108,936
B. Adjustments Factors
1 Population % 11.0057 (Exhibit B)
2 Inflation % 1.0512 (State Finance)
Total Adjustment % 1.05719 (Bl*132)
C. Annual Adjustment 4,658,311 1 (B -A)
D. Other Adjustments None
E. Total Adjustments 4,658,311 -� (C+D)
F. This Year's Limit 86,108,936 (A+E)
City of Lodi
Appropriations Spending Limit
Growth Factors/Calculations
GROWTH
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
12-13
3.77
0.77
1.05
13-14
5.12
0.57
0.95
EXHIBIT B
87-88
1.0347 x 1.0572 = 1.0939
1.0939 x $22,654,787 =
$24,782,072
88-89
1.0466x1.0496=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
1.0491x34,027,028 =
$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 =
$38,739,012
96-97
1.0467x1.0168=1.0643
1.0643 x 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
1.0453x1.0194=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
$569959,824
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
$75,523,822
0.98054506
11-12
1.0251x1.0061=1.03135311
$77,891,729
1.03135311
12-13
1.0377x1.0077=1.04569029
$81,450,625
1.04569029
13-14
1.0512'1.0057=1.05719184
$86,108,936
1.05719184
13-14 Appropriations Subject to Limit:
$32,857,542 =
38.16%
$86,108,936
APPROPRIATIONS SUBJECT TO LIMITATION
City of Lodi
Fiscal Year 2013-14
EXHIBIT C
E. OVER(UNDER) LIMIT 1 (53,251,393) (C -D)
32,857,542 = 38.16%
86,108,936
EXCLUDED APPROPRIATIONS
City of Lodi
Fiscal Year 2013-14
EXHIBIT D
COURT ORDERS
Subtotal None
FEDERAL MANDATES
Subtotal None
QUALIFIED CAPITAL OUTLAYS
Subtotal None
QUALIFIED DEBT SERVICE
Subtotal None
TOTAL EXCLUDABLE I None
(Copy to Exhibit C & G)
City of Lodi
Schedule to Match User Fees to Costs
Fiscal Year 2013-14
EXHIBIT E
Public Safety Fees
348,150
26,426,860
Parks and Rec/Cultural Fees
1,648,420
5,654,090
Community Development Fees
370,220
1,173,170
PW Engineering Fees
514,270
974,040
Library Fees
40,000
1,383,090
Total
2,921,060
35,611,250
0
0
0
0
0
0
Calculation - Proceeds of Taxes
City of Lodi
Fiscal Year 2013-14
EXHIBIT F
Tt � EEDSE�:�:�:����'��E'••'E�:�:� .� 1Y:Pi2 :' �)'s�DS�::::(lE�:::::�:�::�:;:`:�::::�::�::::•'i�:•'! i;E[:ii�:
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
8,156,500
8,156,500
9.657,000
308,500 9,965,500
1,452,000
1,452,000
1,746,800
1,746,800
510.000
510,000
1.04,130
104,130
6,976,670
6,976,670
4226,000
4,226,000
11,400
11,400
1,407,500
1,407,500
482,420
0
1.876,300
1,876,300
39,400
39,400
0
0
825,000
825,000
50,000
50,000
10,000
10,000
0
0
50,000
50,000
0
0
301,410
301,410
788,500
788,500
0
0
0
0
1,213,370
1,213,370
671,100
671,100
1,838,330
1,838,330
482,420
482,420
32,829,100 1 17,738,300 1 50,567,400
28,442 1 15368 1 43,810
32,857,542 1 17,753,668 1 50,611,210
0
50,611,210
119,322,780
169,933,990
EXHIBIT G
B. MINUS EXCLUSIONS
o
(Exhibit D)
C. NET INVESTED TAXES
32,829,100
(A -B)
D. TOTAL NON-INTEREST BUDGET
50,567,400
-(Exhibit F)
E. TAX PROCEEDS AS PERCENT
OF BUDGET
64.92"/
(C/D)
F. INTEREST EARNINGS
43,810
G. AMOUNT OF INTEREST EARNED
28,442
(E*F)
FROM TAXES
H. AMOUNT OF INTEREST EARNED
ON NON-TAXES5,368
(F -G)
I. Take the result of steps #G & H
Copy on to Exhibit F
RESOLUTION NO. 2013-102
A RESOLUTION OF THE LODI CITY COUNCIL ADOPTING THE CITY OF
LODI FINANCIAL PLAN AND BUDGET FOR THE FISCAL YEAR BEGINNING
JULY 1, 2013 AND ENDING JUNE 30, 2014, AND APPROVING THE 2013/14
APPROPRIATIONS SPENDING LIMIT
WHEREAS, the City Manager submitted the 2013/14 balanced Financial Plan and Budget to the
City Council on May 16, 2013; and
WHEREAS, the 2013/14 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 April 30, May 7, May 14, May
21, and June 5, 2013, at the Carnegie Forum; and
WHEREAS, the City Council is required to adopt the Appropriations Spending Limit for 2013/14;
and
WHEREAS, the Appropriations Spending Limit and the annual adjustment factors selected to
calculate the Limit are part of the Financial Plan and Budget; and
WHEREAS, the City has an unfunded liability related to Other Post -Employment Benefits (OPEB)
in the amount of $3,621,593 at June 30, 2012; and
WHEREAS, Council has expressed its desire to begin funding the-OPEB--liability, -and-
WHEREAS, staff recommends using one-time money derived from a refund of overpayments to
San Joaquin County for property tax administration fees to fund the General Fund portion of the OPEB
liability; and
WHEREAS, staff recommends that funds outside the General Fund contribute a proportionate
share of costs toward funding the OPEB liability; and
WHEREAS, partial funding of the OPEB liability represents fiscal prudence and is expected to
have a positive impact on actuarial report calculations and rating agency perceptions.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lodi as follows:
1. That the 2013/14 Financial Plan and Budget, as proposed by the City Manager, be approved
as follows:
Budget
General Fund
Police
$16,789,830
Fire
$9,637,030
Public Works
$1,894,290
City Clerk
$513,060
City Manager
$403,100
City Attorney
$472,200
Internal Services
$3,237480
Economic Development
$481,880
Non -Departmental
$8,769,950
Total General Fund
$42,198,820
Other Funds
Electric Utility
$70,941,010
Water Utility
$11,051,080
Wastewater Utility
$15,525,370
Transit
$5,651,650
Streets
$6,357,920
Community Development
$1,173,170
Parks, Rec & Cultural Services
$5,654,090
Library
$1,383,090
Transportation Development Act
$39,000
Dev Block Grant
$723,850
-Community
Public Safety Special Revenue
$565,600
Capital Outlay
$3,032,700
Equip & Vehicle Replacement
$333,500
Debt Service
$847,680
Benefits
$8,017,450
Self Insurance
$2,310,470
Trust and Agency
$236,520
Fleet Services
$1,738,750
Total Other Funds
$135,582,900
Total
$177,781,720
2. That the funds for the 2013/14 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 $4,658,311 from the 2012/13 level of
$81,450,625 to the 2013/14 level of $86,108,936; and
4. That the City Council of the City of Lodi does hereby approve partial funding of the OPEB
liability in the following amounts:
Fund
Amount
General Fund
$698,000
Electric
$105,000
Water/Wastewater
$135,000
Streets
$16,000
Transit
$8,000
Development
$21,000
-Community
PRCS
$16,000
Total
$999,000
and;
5. That funds in the amount of $698,000 be appropriated in the General Fund from the
2012/2013 budget for this purpose, and that the remainder be absorbed within the
existing 2012/13 appropriation for the applicable fund.
Dated: June 5, 2013
I hereby certify that Resolution No. 2013-102 as passed and adopted by the City Council of the
City of Lodi in a regular meeting held June 5, 2013, by the following votes:
AYES: COUNCIL MEMBERS — Hansen, Johnson, and Mounce
NOES: COUNCIL MEMBERS — Katzakian and Mayor Nakanishi
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
f
L
City Clerk
2013-102
1. AA#
2. JV#
r
- Division-
-•1 dan Ayers
Please provide a description of the project, the total cost of the project, as well as justification for the
requested adjustment. If you need more space, use an additional sheet and attach to this form.
To recognize refund from San Joaquin County related to overpayment of Property Tax Administration Fees for years 2006/07
thru 2011/12 and appropriate same, transferring funds to the Benefits fund to partially fund the OPEB liability.
If Council has authorized the appropriation adjustment, complete the following:
Meeting Date: 6/5/13 Res No: Attach copy of resolution
nttothis form.
Department Head Signature:
leputy City Manager/Internal Services Manager Date
Submit completed form to the Budget Division with any required documentation.
Final approval will be provided in electronic copy format.
FUND #
BUS. UNIT # ACCOUNT #
ACCOUNT TITLE
AMOUNT
A.
100
1001 5394
Revenue -Other
$698,000.00
SOURCE OF
270
4210
Operating Transfers In
$698,000.00
FINANCING
B.
100
4220
Operating Transfers Out
$698,000.00
USE OF
FINANCING
Please provide a description of the project, the total cost of the project, as well as justification for the
requested adjustment. If you need more space, use an additional sheet and attach to this form.
To recognize refund from San Joaquin County related to overpayment of Property Tax Administration Fees for years 2006/07
thru 2011/12 and appropriate same, transferring funds to the Benefits fund to partially fund the OPEB liability.
If Council has authorized the appropriation adjustment, complete the following:
Meeting Date: 6/5/13 Res No: Attach copy of resolution
nttothis form.
Department Head Signature:
leputy City Manager/Internal Services Manager Date
Submit completed form to the Budget Division with any required documentation.
Final approval will be provided in electronic copy format.
City Council Meeting
June 5, 2013
udget I
Overview
■ General Fund balanced
■ Significant issues
■ Major capital projects
2
All Funds
■ Total appropriation of $177,781,720
■ Total revenue of $179,909,160
■ Increase in reserves of $2.1 M
o Enterprise funds ($3.9M)
o Special Revenue (-$1.4M)
o Others (-$0.4M)
K.
General Fund
■ Balanced without using reserves
■ Total revenues and appropriations of
$42,198,820
4
General Fund Overview
General Fund
Fund Balance
Beginning Fund Balance Unreserved
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Fund Balance
Ending Fund Balance Unreserved
Audited
2010.11
Actuals
3,896,576
41,889,230
40,188,128
1,701,102
Audited
2011.12
Actuals
5,597,678
40,520,257
39,953,250
567,007
2012.13
Budget
3,968,897
42,071,274
42,071,274
Estimated
2012.13
Actuals
6,164,685
42,968,590
41,390,860
1,577,730
2013.14
Budget
7,742,415
42,198,820
42,198,820
5,597,678 6,164,685 3,968,897 7,742,415 7,742,415
5
Labor
■ 377 funded positions
0 4 less than prior year
■ All labor agreements expire in 2013/14
R
Maior Capital Projects
■ Fire Station 2 ($1.1 M)
■ Financial Systems Replacement ($1.OM)
■ Transit System ($2.5M)
■ Electric System Maintenance ($2.OM)
■ Road Maintenance/Resurfacing ($4.OM)
■ Water System Improvements ($1.2M)
■ Wastewater Collection/Treatment System
Maintenance ($0.99M)
;,
Action Recluested J
■ Adopt resolution approving the City of
Lodi Financial Plan and Budget for FY
2013/14 and approving the FY
2013/14 Appropriation Spending Limit