HomeMy WebLinkAboutAgenda Report - June 19, 1985 (95)Vag
Mrs. C;a mett Mitchell addressed the Council
requesting additional funding for personnel to
staff the Lodi Arts Carr�nission office.
Council discussion followed with questions being
directed to Mr. Glenn and to Mrs. Mitchell.
Council Member Pinkerton then roved for
adoption of Urgency Ordinance No. 1359 adopting
the 1985-86 Budget. The motion was seconded by
Council Member Olson. Several amn&-ents were
then proposed. The amendments were approved by a
unanimus vote of the City Council.
Council Mamber Pinkerton rr-oved for adoption of
the Budget (Urgency Ordinance No. 1359) adopting
the 1985-86 BuC:get as follows:
TRANSFERS -
FROM TO
$ 100,000 Water Utility Fund General Fund
APPROPRIATIONS -
FROM TO
$1,000,000 General Fund General Fund
Operating
Reserve
$ 100,000 Sewer Utility Fund Sever Utility
Fund
Operating
Reserve
Elec. Utility Capital 552,200
PL & PD Insurance Fund 350,745
Total Contrib. to Other
Funds $2,781,575
TOTAL ESTIMATED REQUIRFZENrS $37,532,485
The original motion as made by Council Member
Pinkerton and seconded by Council Member
Olson, carried by the following vote:
AYES: Council Members - Olson, Pinkerton,
Reid, Snider, and
Hinchman (Mayor)
NOES: Council Members - None
QED- : Council Members - None
ORDINANCE NO. 1359
ORDINANCE ADOPTING AN OPERATING BUDGET FOR THE
SUPPORT OF VARIOUS DEPARTMENTS OF THE CITY OF
LODI AND A UTILITY OUTLAY BUDGET FOR THE FISCAL
YEAR, BEGINNING JULY 1, 1985 AND ENDING JUNE 30,
1986
The City Council of the City of Lodi does ordain as follows:
Section -1. City of Lodi Operating Budgets, Summary of the Budget
--------- 1985-86
ESTIMATED FINANCING RESOURCES
OPERATING REVENUES
Property Taxes
Other Taxes
Licenses, Fines & Rent
Interest
Revenue from Other Agencies
Charges for Current Services
Other Revenues
Water Sales & Fees
Sewer Charges
Electrical Sales
Inter -Fund Transfers
Total Operating Re;renues
$2,911,355
4,339,445
649,250
1,278,320
1,443,055
2,208,845
64,835
1,401,520
1,272,925
21,343,200
524,735
$37,437,485
Oft MIBUTIC NS FfYM OMER RWS AND RESERVE
Workers' CoWensation Ins. Reserve $ 95,000
Total Contributions $ 95,000
T rAL ESTAIATEC) FINANCING RESOURCES $37,532,485
I—MVIU1010m, A . ty.i�.9
OPERATING EXPENSES
Personal Services $10,945,125
Utilities & Transportation 1,151,770
Materials & Supplies 1,873,850
Depreciation 588,315
Equipment, Land & Structures 156,740
Special Payments 2,585,110
Sub -Total Operating Expenses s17, -0 0 , 9 16
Bulk Power Purchase 17,450,000
Total Operating Expenses $34,750,910
CCtdIRIBUTICNS TO OIBER FUNDS AMID RESBFNTS
General Fund Operating Reserve $
Equipment F.md
Water Utility Capital Fund
Sewer Operating Reserve
Sewer Utility Capital Fwd
Electric Rate Stabilization Reserve
Electricity Utility Capital
PL & PD Insurance Fund _
Total Contributions to Other Funds
246,660
113,650
400,000
133,320
250,000
735,000
552,200
Rs0 745
$2,781,575
T IAL ESTIMATED RBQQIRMngI`S $37,532,485
SDC'TICN 2. The appropriation to the Library from the General Fund
will�becoWuted by the Finance Director on the 30th day of June,
1985. The appropriation will be of sufficient amunt so that
expenditures will not exceed revenues.
SECTICN 3. All ordinances and parts of ordinances in conflict
herewith are repealed insofar as such conflict may exist.
SBCTICN 4. This urgency ordinance shall be published one time in the
"Lodi News Sentinel", a daily newspaper of general circulation printed
and published in the City of Lodi and shall be in force and take
effect immediately.
Approved this 19th day of June, 1985
Mayor
Attest:
Alice M. Reimhe
City Clerk
State of California
County of San Joaquin, ss.
I, Alice M. Reimche, City Clerk of the Cite of Lodi,
do hereby certify that Ordinance No. 1359 %w adopted
as an urgency ordinance Iat a regular meeting of the
City Council of the City of Lodi held June 19, 1985 and
was thereafter passed, adopted and ordered to print by
Ayes: Council Nlkxrbers - Olson, Pinkerton, Snider,
Reid, and Hinchnan (Mayor)
Noes: Council Niers - None
Absent: Council Nerbers - None
Abstain: Council Niers - None
1 further certify that Ordinance No. 1353 was approved
and signed by. the Mayor on the date of its passage and
the same has been published pursuant to law.
Alice M. Reimche
City Clerk
Approved as to form
Ronald M. Stein
City Attorney
CITY OF LODI
City Hall
Lodi, California
BUDGET ?'MENTO
May 24, 1985
To the Honorable Mayor and
Members of the City Council
Counci lrmembers:
Presented herewith for your information and review is the
Operating Budget for fiscal year 1.985-86. The budget totals
$34,715,830 plus tx•ansfers to other fundis and reserves. This
represents an increase of $4,427,425 over the 1984-85 budget of
$30,288,405. These numbers are distorted by the inclusion of the
annual bulk power purchase, which in 1985-86 will increase an
estimated $3,460,000. Backing out the power purchase, we find
that the actual increase in the Operating Budget for 1985-86 is
just under six percent. On the other side of the ledger, the
City's estimated operating revenues (minus utility sales) will
increase $1,354,825, from $12,046,515 to $13,401,340, representing
a strong 11.2% gain.
This budget will allow the City to continue to provide high levels
of municipal services, address some staff deficiencies, and
provide for replacement of worn out equipment and purchase of new
equipment designed to maximize employee efficiency. This budget
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CITY OF LODI
A. Property Tax
The City of Lodi presently receives approximately 36% of each
proPerty tax dollar collected plus the necessary increment to
recover bonded debt. This debt is being retired in accordance
with a pre-set bond redemption schedule.
Property tax funds may be used for any City function, including
voter -approved debt incurred prior to 1978. The 1985-86 revenue
from the tax roils is anticipated to be $2,911,355. The Library
will be allocated $447,660 of these funds; the General Fund
$2,183,220; and the Sewer Fund $280,475.
Included in the $2,911.,355 is property tax levied to recover the
debt service on the 1965 Municipal Bonds. The amount for this
fiscal year is $457,445 apportioned as follows: $176,970 to the
General Fund and $280,475 to the Sewer Fund.
In summary, property tax revenue is estimated at:
General Fund
Library Fund
Sewer Bond Debt
Other Municipal Bonds
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$2,006,250
447,660.
280,475
176,970
$2,911,355
risv ns7 I ODI
This represents an increase of 1.5% over last year's estimate. t
This low figure is a direct result of removing Business inventory
from the taxable base, as a result of State legislation.
A portion of the State budget adopted last year provided permanent
financing for local government. As a part of that plan, the
statutory subventions for motor vehicle fees were returned to the
cities. The State likewise took business inventory from the
property tax base and set up 2 subvention which will reduce to
zero over the next five years. As property values change, these
changes will be placed on the tax roles rather than on March 1.
B. Sales—Tax—Revenue
The estimate for sales tax revenue for 1985-86 is $3,952,700.
This is an increase of $388,700 from last year's estimate of
$3,574,000, a gain of 10.9°x. Sales tax is by far the City's most
significant single source of funds and is the most dynamic in
responding to the economy. it points to the importance of
maintaining a healthy retail, service and industrial environment.
C. Other Taxes.
These revenues are derived from taxes on sale of gas, real estate
transfer transactions, business license tax, and franchise fees.
This source of revenue amounts to $319,945. Most of these taxes
are not sensitive to the economy and remain rather stable,
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however, property transfer taxes will grow with increased real
estate activity.
D. Licenses, -Fines, -and -Use -of Property.
These revenues are obtained from various permit and license fees,
property rental, court fines and penalties. The total revenues
from this source is estimated at $480,675, a decrease of $21,430
from last year's figure. The major reason for this decrease is a
loss of revenue from court fines caused by a change in the manner
in which the counties return motor vehicle fines. Much of that
loss is being offset by increased permit fees. Obviously, if
there is a decline in building activity, this revenue source will
decline. As the City Council is aware, these permit fees are for
direct services provided and are sufficient to cover the cost of
providing these services.
E. Interest
This is becoming a significant reven..;e resource for the City and
is one of the most volatile. The 1985-86 estimate is $1,278,320.
This figure is predicated on receiving all projected revenues in a
timely manner. If interest rates drop significantly and if other
revenues do not materialize, this source of funds could be
dramatically reduced. i
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Q
CITY OF LODI
F. Revenue From Other Agencies.
The past few years, the State of California has held back or
eliminated significant portions of what were once stable local
government revenues. hast year, the State restored statutory
revenue from motor vehicle in -lieu fees. Also included here are
the new State subventions for Business Inventory Tax elimination.
This revenue source will decline to zero in 1988-89.
Revenue in this category for 1985-86 is estimated at $1,443,055,
an increase of $387,260 over the previous year's figure of
$1,055,795. This increase consists of hikes in the following
categories: motor vehicle in -lieu fees ($168,815); Peace Officers
Standards and Training (police officer training) ($120,000);
Business Inventory Tax ($94,780); and cigarette tax ($3,665). The
Peace Officers Standards and Training reimbursements previously
had been listed in the category of Revenue Not Otherwise
Classified.
G. Service Charge:,
These are the fees and charges the City receives for direct
services provided. It includes all recreation fees, planning and
engineering fees and refuse collection fees. The total amount of
these charges anticipated in 1985-86 is $2,208,845, an increase o�
$207,065 over last year. The major reason for this increase is
increased revenue from refuse collection fees of $151,300 as a
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CITY OF LODI
result of increases in refuse fees and growth in business. Other
increases are in engineering and plan check revenues as a result
of increased activity.
H. Other Revenues
These are miscellaneous revenues from unanticipated sources, such
as reimbursements of previously paid bills and insurance policies,
and the sale of scrap or salvage material. This revenue source is
estimated to be $ 64,835 for 1985-86.
I. Revenues from Utility. Operations
The City operates three utilities: Electric, Water and Set:-rer.
These funds are operated on a enterprise basis with revenues and
expenditures listed separately.
In presenting the total operating budget for the City, these
operations are also included.
A. Electric Sales
The estimated electric sales for 1985-86 total $21,343,200
which is $5,223,200 more than last year's estimate of $16,120,000.
This does not represent a significant increase in power sales, but
rather an increase in rate to offset the higher cost of purchased
power.
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CITY Of LOD!
B. Water Sales find Fees.
The, projected revenues from water sales and charges for
1985-86 are $1,401,520 versus last year's figure of $1,309,900, an
increase.of $91,620.
C.Sewer _Charges.
The projected income from Sewer Service fees and Sewer
Connection .fees is $1,272,925, a $91,665 increase over last year's
revenues. The factors here are that we anticipate connection fees
to increase from $210,500 in 1984--85 to $250,000 in 1985-86, plus
a 5% growth in usage.
D. Interfund Transfers
Monies in other funds are also used to finance thee!
Operating Budget. This year, $347,505 of Gas Tax money, and
$128,730 of Transportation Development Act funds will be used for
i
operating expenditures. These funds are being used entirely for
street maintenance purposes. In addition, $30,000 of the Housing
and Urban Development funds will be used to fund administration of
the Community Development Block Granit program.
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CITY OF LODI
CONTRIBUTIONS FROM RESERVES
In order to provide for funding for operating expenses, it is
recotiLmended $95,000 be transferred from the Workers Compensation
Insurance Reserve to the General Fund. This sum represents
interest earned in that funs: the past year.
The current financing resources available to meet the operating
budget together with comparative 1984-85 estimates are as follows:
(Complete detail on revenue sources is shown in Schedule H.)
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CITY OF L001
OPERATING REVENUE
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1934-85
1985-86
%
Cha
Property Tax
$2,867,255
$2,911,355
+
1.5
Sales Tax
3,574,000
3,962,700
+
10.8
Other Tax
332,355
376,745
+
13.3
Licenses, Fines and
Use of Property
673,030
649,250
-
3.6
Interest
986,820
1,278,320
+
f.9.5
Revenue from Other Agencies
1,055,795
1,443,055
+
36.6
Charges for Current Servir,��s
2,001,780
2,2,08,845
+
10.3
Other Revenues
164,800
64,835
-
60.7
Water Sales & Fees
1,309,900
1,401,520
+
3.9
Sewer Charges & Fees
1,181,260
1.,272,925
-
..7
Interfund Transfers
390,680
_-536,235
+
29_6
Subtotal
$14,537,675
$16,0,'5,785
+
10.6
Electric Sales.
16,120,000
21,343,200
+
32_4
$30,657,675
$37,418,985
+
22.,1
Reserves
814,545
—_-93,000
-_88_3
Total Resources
$31,472,220
$37,51:1,985
19.1'
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CITY OF LODI
OPERATING EXPENSES
The total operating expenditures for 1985-86 will be $34,715,830,
an increase of 14.6%. As noted earlier, the estimated cost of
electricity is $3,460,000 more than last year. If bulb power
purchases are discounted, then the operating expenses increased
from $16.,298,405 in 1984-85 to $17,265,830 in 1985-86, an increase
of 5.9%.
An analysis of
this
budget
on
a category -by -category basis will
i
help to clarify
the
reasons
for
the increase.
CITY OF LODI
1984-85 1985
Series -86 Difference % Chan
-------------------!
100
Personal Services
$10,205,810
$10,922,345
$ 716,535
7.0
200
Utilities &
Transportation
1,045,425
1,151,770
106,345
10.2
300
Supplies &
Services
1,618,095
1,872,050
253,955
15.7
400
Depreciation
552,545
588,315
35,770
6.5
500
Equipment &
Structures
192,040
156,740
-35,300 -18.4
600
Special
Payments
2,684,490
2,574,610
-109,880
-4.1
Subtotal
16,298,405
17,265,830
937,425
5.9
Bulk Power
Purchase
13,990,000
17,450,000
—3,460,000
24.7
TOTAL
$30,288,405
$34,715,830
$4,427,425
14.6
The major causes
for the increase
in this budget in addition
to
increased electric
costs and the
addition of
new positions in
the
budget, are increased costs of goods and
services, increased
participation and
workloads, an
expanded tree
trimming program
in
the Electric Department; depreciation
of equipment purchased
in
previous years;
and increases
in the cost
of providing refuse
service.
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CITY OF LODI
1.00 Series - Personal Services.
This budget includes negotiated salary increases only for the
Police and Electric Units. This budget does include all increases
granted last year, and the addition of new positions.
The new positions requested are as follows:
City Manager '
secretary to the City Manager Recommended Expanded Work
Load and Reduced
Part Time Help
Police
T—Administrative Clerk III Recommended Expanded Work
Load
I Administrative Clerk II Not recommended
Parks
4 Park Maintenance Workers Not recommended
Recreation
I Recreation Superintendent Not recommended
Public Works
^];a�orers� Rec,mmended Expanded Work
Load
1 Tree Trimmer Recommended In Lieu Of
Contract Work
I Engineering Tech iI Recommended Expanded Work
Load; Reduced
Part Time Help
I Equipment and Plant Mechanic Not recommended
Of the 12 new positions requested in the 1985-86 budget, six are
,recommended for City Council approval as listed above. A brief
supporting statement for each follows:
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rite n snni
°Secretary to the City Manager - The Administration Office now i
has five professional staff members generating work for three
full-time and two part-time employees. It is recommended that
the new position of Secretary to the City Manager be approved
as part of a reorganization of the administrative offices in
City Hall. In the two months I have held the position of City
Manager, I have thoroughly evaluated and analyzed the work
I
flow and organizational structure of this office. There is an
absolute need for an additional full—time secretarial position
in this work area. A significant amount of part-time hours
would be eliminated as a partial offset of the cost of funding
this new position. This reorganization will materially
improve the efficiency of this office. With City Council
approval, the new position will provide for clerical staffing
as follows:
Secretary to the City Manager - To provide clerical support to
the City Manager and Assistant City Manager.
Legal Secretary - To provide clerical support to the City
Attorney.
Administrative Clerk II - To provide clerical support to the
Administrative Assistant (personnel Office)
i
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CITY 0 F LODI
Administrative Clerk II - To provide clerical support to the
City Clerk and other: in the Administration Office.
It will still be necessary to retain a limited number of hours of
part-time assistance, particularly in the Personnel Office during
this transition period. However, the goal is to continuously
reduce the amount of this part-time assistance as the reorganized
work unit developes a smooth -working relationship.
°Administrative Clerk III (Police Department) - Chief of Police
Floyd Williams has made significant changes i21 the
organization of the City's Police Department since assuming
the direction of that department in May, 1984. Among these is
the moving of the training position (Sergeant) to the second
i
floor administrative spaces. This greater attention. to the
training aspect of the Police Department's activities has
dramatically increased the clerical work load in the
administrative office. With this additional function, there
are now three individuals -- the Chief of Police, Police
Captain Larry Hansen, and the Training Officer -- generating
work which must sae processed by one clerical position. This
new position will provide for a smooth work flow in the office
of the Chief of Police.
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CITY OF loot
°Laborers (2) (Public Works) - In 1953, the year we began
keeping aecuratP records concerning work loads and personnel
in the Public Works Department, the Street Division maintained
56 miles of streets, 16 miles of alleys and four parking lots.
At that time, this division was staffed with 18 positions.
This division today consists of 21 positions. Since that
time, the City's street system has grown to 131 miles, plus
the 16 miles of alleys. As we move into the new fiscal year
(1985-86), the number of street miles will exceed 150. During
this sane time period, the number of street trees planted in
sidewalk planters has increased from 293 to 841. Within the
past five years, with no increase in personnel, we have seen
the nun.ber of storm drain system miles increase from 72 to 90;
the number of pumping stations increase from 13 to 18; the
number of catch basins increase from 1,635 to 2,157; and the
number of manholes increase from 724 to 1,030. In addition,
the Street Division has responsibilities in the areas of tree
trimming and planting, street cleaning. traffic warning and
regulatory devices, baseball and softball park grading and
trench paving associated with the activities of the Utility
(Electric) Department and the Water/Wastewater Division of the
Public Works Department. The recommended positions will be a
significant addition to a street system that requires more
general and routine preventive maintenance to avoid costly
reconstruction costs d n the future. The downtown
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,- CITY OF LOCI
beautification district is demanding considerably more time in
the areas of hand sweeping curb returns (corners). cleaning
tree wells, and restaking trees in the downtown area..
Accepting the responsibility to maintain the sprinkler system
of landscaped areas serviced by contract is now utilizing
approximately 1!3 of a Street Maintenance Worker's time.
°Tree Trimmer - This position is essential to provide for
right-of-way clearance on the City's electric utility lines.
The Electric Department budget requested funding for contract
tree trimming in the amount of $60,000 for fiscal 1985-86. It
is recommended, and the Utility Department concurs, that the
tree trimming required can be accomplished by the City crew
with the addition of one position at a cost considerably less
than the budgeted amount requested.... ..
°Engineering Technician - For various reasons, such as school 1
conflicts, lack of qualified students and the like, we have I!
not made use of the full budgeted amount of part-time help in
the Engineering Divisio,i. In addition, the amount of
supervision and training required for part-time personnel is
excessive. The amount of time devoted to maintaining the
various City street and utility maps, easement records, and
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CITY OF LODI
f various file indexes is approximately two person years per
year divided among four technicians and one -to -four part-time
people. The elimination of part-time hours, to be replaced by
the addition of one full-time position makes this
recommendation a reasonable solution to the existing problem
of Public Works Department staffing in this division.
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CITY OF LOD! .
200 Series-- Utility,—Communication and Transportation_
The cost of the City's annual bulk power purchase is not included
as a 200 Series cost per se. Minus the bulk power purchase, the
budget expenditures in the 200 Series show an increase of
$106,340.
The reason for the increase is two -fold. When the budget was
adopted last year, it was based on charging ourselves $.060 per
kilowatt hour of electricity. We are using $.064 per KWH as a
budget figure for 1985-86.
When the City installed its new telephone system,
appropriations for the 1984-85 budget were reduced by 600. We
over-estimated the effect, which causes us to recommend a 500
i
increase over last year. This is still 40% less than the funds
budgeted in 1983-84 fiscal year.
This budget reflects an increase in the cost of postage.
Finally, inflation and increased services require additional
funds to be budgeted.
300 Series - Supplies—and-Materials
The 300 Series is $253,995 more than last year. In addition to
inflation, the single largest contributor to this increase is
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i' CITY OF LOD!
realistically budgeting actual expenditures in the Police
Department for training. In the 1984-85 budget, we budgeted
$9,700 for training, yet in 1984/85 we expect to expend in excess
of $80,000. For this year, we are budgeting $90,000. Of
significance is that most of the training money will be returned
to the City through State reimbursements (POST) which are shown in
this budget as revenues. In addition, a municipal election is
scheduled. Also, the costs of recruiting, testing and selection
requires additional funding, as does the use of a money broker in
the Finance Department. A number of one-time purchases of
supplies also contributes to the overall increase in the 300
Series.
400 Series - Depreciation
The increase in depreciation from $552,545 to $588,315 this year
is the result of equipment purchased last year and an increase in
sewer plant depreciation. Sewer Plant depreciation of $324,310 is
transferred to the Waste Water Capital Outlay Fund. Equipment
depreciation which totals $588,315 is transferred to either the
equipment fund or the appropriate capital fund; i.e., electric,
sewer or water.
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CITY OF ;ACS!
500 Series - Equipment, Land and Structures
The 500 Series contains equipment and reconstruction contracts
needed for on-going operations. if a piece of equipment costs
over $500, , i. t is not included as a line budget item, but rather
purchased from capital or other designated funds. The total cost
for .this Series is $156,740, a decrease of $35;,700 from last
year's budget.
The primary reason for this decrease is the elimination of a City
contribution to the rehabilitation of Lodi High School a ,\ AA
While not a part of the operating budget, certnin pieces of
equipment are included in this budget. A complete list of those j
pieces of equipment and the recommended -funding sources are shown
on pages 41, 42, and 43.
It should be mentioned, no Police patrol vehicles are included in
this budget. We were able to procure ertr°a vehicles earlier at a
favorable price and are placing; them in service as need demands.
CITY OF LODI
600 Series__Special _Payments
The 600 Series covers debt service, refuse collection payments,
taxes, and other special.payments. The costs of this series will
be $2,574,610, a reduction of $109,880 from last year's budget.
Major items in this Series are:
Refuse Disposal
$1,717,165
Debt Service
General Obligation
176,970
Sewer (interest only)
74,425
Special Payments
Woodbridge Irrigation District
6,935
Grape Festival
1,500
Chamber of Commerce
4,000
Annual Audit
15,000
Employee Dinner
3,800
Employee Service Pins
1,000
San Joaquin County Safety Council
1,000
Northern California Power Agency
122,600
Contingent Fund
250,000
Developers Refunds
125,000
The refuse collection costs have increased by $106,820 which is
offset by a rate increase granted last year, plus additional
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CITY OF LODI
services provided. The reason there is a decline is an estimated
reduction in assessments to the Northern California Power Agency
(NCPA) of $214,540.
Other Budgets
In addition to the operating budget there are six additional
budgets which are necessary for the overall operation of the City.
These budgets are not shown as part of the operating budget as the
funding for them is included in other budgets, or are funded from
special funds.
These budgets are Public. Liability and Property Damage (PL & PD)
Fund, Workers Compensation Fund, Utility Outlay Reserve, Equipment
budget, dental insurance and long term disability funds.
The insurance budgets are based upon our best estimates of
expenses for next year, taking into consideration past experience.
The Utility Outlay Budget is an integral part of the Electric
budget and includes those items which are designed to expand the
system's output.
The details of the expenditures for the insurance budgets is shown
on Page 59, the detail for the Utility Outlay Budget is shown on
Page 51, and the equipment budget on pages 41, 42, and 43.
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CITY OF LODI
OPERATING FUNDS
The operating budget has been divided` into a number of separate
funds: General, Electric, Water, Sewer, Library, Parking, and
Hutchins Street Square. Each of these funds has its own revenue
and expenditure plans. The total operating budget is summarized
in Schedule A. Each of the operating funds is presented with its
appropriate revenues and expenditures in Schedules B through G.
In order to make a meaningful comparison of operating costs
between fiscal 1985-86 and the previous year, the following table
lists the cost of bulk power separately.
Fund 1984-85 1985-86 Difference
General
$12,191,620
$13,115,190
$ 923,570
7.6
Electric
1,733,100
1.,682,255
-50,845
-2.9
Sewer
1,199,210
1,221,535
22,325 -
1.9
Water
550,295
600,480
50,185
9.1
Library
593,320
612,850
19,530
I,
3.3
Hutchins
St.Square 30,860
---33,520
Y- 2,260
_7_3
Subtotal
$16,298,405
$17,265,830
$ 967,025
5.9
Bulk Power 13,990,000
17,450,000
3,460,000
24.7
TOTAL
$30,288,405
$34,715,830
$4,427,025
14.6
CITY OF LODI
General Fund
A summary of the General Fund revenues and expenditures is
shown in Schedule B.
General Fund revenues this year are anticipated to be $10,958,570,
plus $476,235 Gas Tax and Transportation Development Act (TDA)
funds for street maintenance purposes for a total of $14,434,805,
an increase of $1,091,500 from the same sources last year.
This is not adequate funding for the operating budget. This is
not a new phenomenon but a reiteration which underscores the
importance of the Utility funds and maintaining operating
reserves. With contributions from those sources, we will be able
to fund this year's budget.
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CITY OF LODI
EXPENDITURE SUY] AR.Y
(Minus utilities, Library and Hutchins Street Square)
Series
1984-85
1985-86
Difference
Q_Changge
100
$ 8,206,700
$8,341,575
$634,875
7.7
200
536,220
600,075
63,855
11.9
300
1,009,930
1,151,285
141,355
14.0
400
222,355
240,470
18,115
8.1
500
134,945
99,740
-35,205
-26.1
600
2,081,470
2,182,045
100,575
4.8
TOTAL
$12,191,620
$13,115,190
$ 923,570
7.6
Included in the personnel portion of this budget are salary
adjustments made after the 1984--85 budget was adopted, new
positions added mid -year and the recommended addition of six
positions. Salary increases for only sworn police and electric
i
worker are included in thi.s budget. Any additional benefits must
I
be funded from reserves.
The previously -mentioned increase in telephone costs, electric
rates and postage account for -the increase in the 200 Series.
-M26-
CITY OF L.ODI
The increase in the 300 Series is due in large measure tIthe
increased costs of training, increased participation in recre
Iprograms, and inflation.
There is a reduction in the amount proposed for equipment
acquisition and contracts. Last year $30,000 was budgeted for
rehabilitation of the pool at Lodi High School and a large amount
of portable power tools which are not included in this year's
budget.
Refuse collection costs are projected to be $106,820 more than was
budgeted last year. This amount is recovered in fees for
collection service.
-M27-
' CITY OF LOQ!
-M28-
Electric Fund
A summary of the
Electric Fund
is shown in Schedule C.
Series 1984-85
1985-86
Difference % Increase
100 $899,100
$982,625
$ 83,525 9.2
200 19,555
23,985
4,430 22.6
300 236,510
297,830
61,320 25.9
400 10,235
15,055
4,820 47.0
500 56,460
55,800
-660 -1.1
600 511,240
306;950
-204,280 -39.9
Subtotal $1,733,100
$1,682,255
-50,845 -2.9
Purchased
Power 13,990,000
17,450,000
3,460,000 24.7
TOTAL $15,723,100
$19,132,255
$3,409,155 21.6
There are no major program changes
in the Utility Department
budget. However, there
are increases
in existing programs which ,
i
affect the expenditures.
Included in this
budget are
negotiated salary increases
for electric workers,
additional allocation
of tree trimmers
charges from Public Works,
additional funds for uncollected
accounts resulting from
increased electric costs, additional funds
for telephones, and an
allocation for
consultant services to aid.
in solving intertie problems.
It is noteworthy
that our assessments to NCPA for projects
and legal activities is
greatly reduced
to $214,540. This factor
-M28-
CITY OF Lt?01
. 1
has resulted in an overall reduction in operational costs of
$50,845, a 2.9% decline.
A most significant factor is the ever-increasing cost of
en(.•gy. We have projected a 3% growth factor but the basic cost
of electricity is increasing, The benefits of the City's
municipally -owned electric utility system bear repeating. These
are:
°City of Lodi residents pay less for electricity than
those living in the surrounding area and in other cities.
°the City experiences lower costs for electricity for
street lights, water production, operation of the sanitary
sewer plant, and storm drain pumping.
°it allows the City of Lodi to provide a higher level of
service with a smaller increment of property taxes as a
part of total revenue than other cities.
The Electric Fund will pay the General Fund $619,585 for services
rendered. A $552,200 transfer to the Utility Outlay Reserve and
$38,650 to the PL & PD Fund are also budgeted. It is recommended
that $1,301,470 be transferred to the General Fund Operating'
Reserve and $500,000 is recommended be transferred to the
recommended Rate Normalization Reserve. This latter fund is to
-M29- 1
C.ITY OF 1_0D1 -
establish funding to offset the City's share of the anticipated
costs of the first four years of operating the future Calaveras
project.
Sewer --Fund
A summary of the
Sewer Fund
is shown in Schedule
D.
Serres
1984-85
1985-86
Difference
% Change
100 $
452,910
$ 432,420
$(20,490)
-4.5
200
190,990
205,380
14,390
7.5
300
152,740
174,220
21,480
14.0
400
15,055
5,880
-9,175
-9.5
600
3,135
4,900
1,765
43.8
Plant Depre-
ciation
301,510
324,310
22,800
7.5
Bond
Interest
82,870
74,425
- 8,445
-10_1
TOTAL $1,199,210 $1,221,535 $22,325 1.9
Sewer Fund revenues are generated by sewer charges and connection I
fees, property tax override for bond redemption, interest on funds
and other miscellaneous revenues.
Total operating revenue for fiscal 1985-86 is estimated at
$1,706,950, versus last year's total of $1,648,475. This
represents an increase of 3.50. There is no appreciable
difference in the operation this year.
1kVJB=
CITY OF LODI
The Sewer Fund will be charged $83,435 to fund services provided
by the General Fund, as well as transfers of $250,000 to the Sewer
Capital Outlay Fund, $18,660 to the PL&PD Fund, and $133,320 to
the Sewer Operating Reserve.
Water Fund_
A summary of the Water Fund is shown in Schedule F.
Series
1984-85
1985-86
Difference
o Increase
100
$223,225
$236,305
$13,080
5,8
200
240,580
265,090
24,510
10.1
300
83,075
95,185
12,110
14.5
400
3,390
2,600
-790
-23.3
500
0
1,200
1,200
600
25
100
75
300.0
TOTAL
$550,295
$600,480
$50,185
9.1
Water Fund revenues are generated by sales, connection fees,
interest and miscellaneous revenues. The revenues for 1985-86 are
estimated to be $1,510,480, an increase of $67,515 from the
1984-85 estimate of $1,442,965. The major reasons for this
increase is an estimated 6.5% increase in sales. There is
I
i
essentially no change in the overall program o; the Water Fund.
-M31-
`,ft
..3 '?„sQ t;u`Frr,.LTi.?c..r;.'"��'sm�fiF'zw�.d,,,�-,`"�'p�G_*,,? ,��`rW:atr'"`r"Y�( •�fa'�S'�. •t',.:
CITY OF LODI
Additional cost of electricity and telephone, and an increased
appropriation for equipment repair costs, account for the
increased costs.
The Water Fund will be charged $86,625 to fund services provided
by the General Fund. Transfers from the Water Fund will be rnade
to the General Fund, $414,045; Water Capital Fund, $400,000; and
PL & PD Fund, $9,330.
Library Fund
A summary of the Library Fund is shown in Schedule F.
Series
198485
1985-86
Difference
% Change
10C
$403,685
$408,320
$ 4,635
1.1
200
51,220
48,690
-2,530
-4.9
300
132,665
149,660
16,995
12.8
600
5,750
6,180
X30
7.4
TOTAL
$593,320
$612,850
$19,530
3.2
The major source of revenue for the Library operation comes from
an allocation of property taxes and revenues from other agencies.
This year, the property tax allocation will be $447,660;
i
California Library Services; $36,000; and the Public Library j
Foundation, $25,000 and Business Tax Inventory $16,930. It will
-M32-
CITY OF L00I
be necessary to use $32,260 from the Library Reserve Fund to
balance theLibrary budget.
The Library budget provides for the existing level of service.
Hutchins Street Square
A summary of this budget is shown in Schedule G.
Series 1984-85 1985-86 Difference o Increase
100
$20,190
$21,100
$ 910
4.5
200
6,860
8,550
1,690
24.6
300
3,175
3,870
695
21.8
500
635
-0-
-635
TOTAL
$30,860
$33,520
$2,660
8.6
The only operating revenue allocated to this facility are the
rents for the "Cafeteria". It is expected these will total
$12,000 which leaves a shortfall of $21,520 to be funded by a
transfer from the General Fund.
BUDGET SUMMARY
--------------
In summary, this budget recognizes some deficiencies in our
operations and attempts to address those issues so that the
r
CITY OF LODI
deserve. This manifests itself in the addition of a number of
positions in the organization discussed earlier which should meet
many of the needs for the immediate future.
During the past year, we addressed a cumber of issues which are
also included in the budget. Among these were: a comprehensive
classification and salary plan was implemented; an administrative
reorganization of the Fire Department accomplished; a study was
completed on the use of computers; and a new computer was
acquired.
The 1985-86 Operating Budget is balanced and provides for the
maintenance of the existing level of service. The department
heads presented budgets which were reasonable in light of the
growth being experienced by the City of Lodi. Their assistance
and the assistance of their respective staffs is acknowledged with
appreciation. I am particularly indebted to Finance Director Bob
Holm for his significant contribution throughout the budget
preparation process. Finally, I am especially appreciative of the
efforts of Assistant City Manager Jerry Glenn, the
producerldirector of this budget. His assistance, counsel and
support was invaluable.
We look forward to the opportunity of reviewing this budget with
the City Council during the coming weeks. The staff st;-.?ids ready
to answer questions, provide additional input and generally assist
-M34-
i