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Home My WebLink AboutAgenda Report - June 10, 2015 B-01 SMB.0 ( 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, 2015 and Ending June 30, 2016 and Approving the Fiscal Year 2015/16 Appropriation Spending Limit MEETING DATE: June 10, 2015 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, 2015 and ending June 30, 2016 and approving the Fiscal Year 2015/16 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 2015/16 budget. Staff presented information to Council regarding this budget at Shirtsleeve meetings on May 5, 12, 19 and on June 9, 2015. Staff published a draft budget document on May 15, 2015. The General Fund Budget for FY 2015/16 reflects a draw on reserves of $154,280. This draw is part of a planned reduction in reserves related to a partial return of prior employee concessions. 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 $10.5 million. This level of reserve will fully fund both the Catastrophic Reserve and the Economic Reserve at about $3.7 million each, fund additional costs associated with labor agreements through December 2017 in the amount of $1.4 million and leave about $1.7 million in uncommitted reserves. Of this amount, approximately $300,000 is designated for capital expenditures under the Digital Infrastructure and Video Competition Act (DIVCA), leaving about $1.4 million in uncommitted, undesignated reserves. General Fund revenues are $46,708,260, an increase of $3,117,200 over the 2014/15 initially adopted budget. General Fund expenditures are $46,862,540, an increase of $3,271,480 over the prior year initial budget. The All -Funds expense/expenditure budget is $193,893,070, an increase of $14.3 million, or about 8 percent over the previous year. The increase is related to increased salary and benefit costs, service and supply costs, and capital project costs. Most bargaining unit agreements expired during FY 2014/15. Successor agreements have been negotiated with a number of the units, but some units do not yet have a negotiated agreement. The budget has been built on the basis of the new labor agreements for those units with settled agreements and on the basis of the expired agreement for those units without successor agreements. Any changes to agreements will generate mid -year adjustments to the budget. APPROVED: ` Step en Schwaba r, City Manager The budget proposes 391 full time positions; a net increase of eight over the prior year. The changes are shown in the table below: Classification Department Number Lineworker Apprentice Electric 2 Electrician Electric 2 Administrative Clerk Public Works 1 Laboratwy Supervisor Public Works 1 Lead Electrician Public Works 1 Street Maintenance Worker 1/11 Public Works 1 Service Writer Public Works 1 Building Inspector 1/11 Community Development 1 Assistant Animal Services Officer Police 1 Parking Enforcement Assistant Police 1 Parks Supervisor PRCS 1 Heavy Equipment Mechanic Public Works 1 Net positions added 8 Total cost of the additional positions is about $940,000 and is funded by the enterprise funds. The General Fund positions are cost neutral. Significant capital projects included in the budget are: • Wastewater System Maintenance/Improvements ($5.0 million) o Influent screening and UV system upgrades, dewatering system upgrades, stormwater system upgrades and pipe realignment • Street Maintenance ($2.4 million) o Sealing and striping, signal maintenance, sidewalk repairs and pavement maintenance • Water System Improvements ($2.1 million) o Continuing design and construction of the meter installation program, water well rehabilitation, and PCE/TCE projects • Electrical System Maintenance ($3.6 million) o Overhead and underground maintenance, streetlight grounding and fusing and transformer replacement • Boat Launch Upgrades ($0.7 million) o Boat launch facilities at Lodi Lake 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 2015/16 fiscal year. This limit represents the maximum spending authority for the City based upon population and inflation changes over the last year. The 2015/16 Appropriation Limit is $90,095,588, an increase of $3,617,690 from the prior year. Details of the calculations are attached as Attachment 1 and Exhibits A through G. FISCAL IMPACT: The 2015/16 budget provides an expenditure plan for all funds. The All -Funds budget is $193,893,070, an increase of $14.3 million, or about 8 percent over the previous year initial budget. As noted earlier, this increase is related to cost increases in a number of categories. The General Fund budget reflects a draw on reserves of $154,280, based upon revenues of $46,708,260 and expenditures of $46,862,540. ordan Ayers, Deputy City M pager Attachments RESOLUTION NO. 2015- A RESOLUTION OF THE LODI CITY COUNCIL ADOPTING THE CITY OF LODI FINANCIAL PLAN AND BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016, AND APPROVING THE 2015/16 APPROPRIATIONS SPENDING LIMIT WHEREAS, the City Manager submitted the 2015/16 Financial Plan and Budget to the City Council on May 15, 2015; and WHEREAS, the 2015/16 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 5, May 12, May 19, June 9 and June 10, 2015, at the Carnegie Forum; and WHEREAS, the City Council is required to adopt the Appropriations Spending Limit for 2015/16; 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 2015/16 Financial Plan and Budget, as proposed by the City Manager, be approved as follows: Budget General Fund Police $18,241,970 Fire $10,749,150 Public Works $2,345,820 City Clerk $547,020 City Manager $448,100 City Attorney $488,650 Internal Services $3,606,320 Economic Development $507 630 Non -Departmental $9,927,880 Total General Fund $461862,540 Other Funds Electric Utility $78,614,820 Water Utility $12,264,400 Wastewater Utility $17,518,680 Transit $6,026,830 Streets $4,733,990 _ Community Development $1,538,410 Parks Rec & Cultural Services $5,822,480 Library $1,388,940 Transportation Development Act $441000 Community Dev Block Grant $1,008,950 Public Safety Special Revenue $314,200 Capital Outlay $2,473,270 Equip & Vehicle Replacement $1,308,210 Debt Service $1,103,950 Benefits $8,056,870 Self Insurance $2,772,860 Trust and Agency $142,500 Fleet Services $1,897,170 Total Other Funds $147,030,530 Laboratory Supervisor Public Works Grand Total $193,893,070 2. That the funds for the 2015/16 Financial Plan and Budget are appropriated as summarized in the document on file in the City Clerk's Office; 3. That position additions and deletions be approved as shown in the table below: Classification Department Number Lineworker Apprentice Electric 2 Electrician Electric 2 Administrative Clerk Public Works 1 Laboratory Supervisor Public Works 1 Lead Electrician Public Works 1 Street Maintenance Worker 1/11 Public Works 1 Service Writer Public Works 1 Building Inspector 1/11 Community Development 1 Assistant Animal Services Officer Police 1 Parking Enforcement Assistant Police 1 Parks Supervisor PRCS 1 Heavy Equipment Mechanic Public Works 1 Net positions added 8 and; 4. That the Appropriations Spending Limit be increased by $3,617,690 from the 2014/15 level of $86,477,897 to the 2015/16 level of $90,095,588 in accordance with the calculations on Attachment 1 and Exhibits A through G. Dated: June 10, 2015 ------------------------------------------------------------------------ ------------------------------------------------------------------------ I hereby certify that Resolution No. 2015- was passed and adopted by the City Council of the City of Lodi in a special meeting held June 10, 2015, by the following votes: AYES: COUNCIL MEMBERS — NOES: COUNCIL MEMBERS — ABSENT: COUNCIL MEMBERS — ABSTAIN: COUNCIL MEMBERS — JENNIFER M. FERRAIOLO City Clerk 2015- 2015-16 FINANCIAL PLAN AND BUDGET APPROPRIATIONS SPENDING LIMIT ATTACHMENT 1 1 2015-16 APPROPRIATIONS SPENDING LIMIT I .... ........ . . . . . . . . . . . . . . . .. .............................. ................ ........................................... .................. .............. ... .............. .... ................ ............AMOYtl....... Last Year's Limit 86,477,897 Adjustment Factors 1 Population % 1.0382 2 Inflation % 1.0035 Total Adjustment % 1.04183 Annual Adjustment 3,617,690 Adjustments None Total Adjustments 3,617,690 2015-16 APPROPRIATIONS SUBJECT TO LIMITATION PROCEEDS OF TAXES EXCLUSIONS APPROPRIATIONS SUBJECT TO LIMITATION CURRENT YEAR LIMIT .......... 36,831,981 36,831,981 90,095,588 B. Adjustments Factors 1 Population % 1.0382 (Exhibit 13) 2 Inflation % �— 1.0037 (State Finance) Total Adjustment % �— 1.04183 (I31-132) C. Annual Adjustment 3,617,690 (B -A) 1). Other Adjustments None E. Total Adjustments 3,617,690 (C+D) F. This Year's Limit 90,095,588 City of Lodi EXHIBIT B Appropriations Spending Limit Growth Factors/Calculations 77 :�:E�PopPht4otii55i:i 5i i p[[;:E:i 87-85 3.47 5.72 333 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 -O.64 0.97 2.41 93-94 2.72 0.73 2.13 94-95 0.71 0.51 1.57 95-96 4.72 131 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 .00-01 4.53 1.94 1.44 4.91 1.29 1.78 UI -02 7.8_ 1.90 2.71 02-03 -1.27 2.14 3.07 03-04 231 1.69 2.86 04-05 3.28 0.75 2.54 05-06 5.26 0.96 2.65 06-07 3.96 030 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 10-1 1 -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 14-15 -0.23 0.66 1.10 15-16 3.82 035 1.43 CALCULATIONS: ' `Yewi"r'` `�`�`�`�``'`'0""''�''''CSTcuEahoh�•�•�•�:�i::�:�:�:�:�:�:�:�:�:�:�:�:�::•:• ::: :::::::::: . P n," 87-88 1.0347 x 1.0572 = 1.0939 1.0939 x 522,654,787 = 524,782,072 88-89 1.0466x1.0496=1.0985 1.0985 x 524,782,072 = S27_123,106 89-90 1.0519 x 1.0252 = 1.0784 1.0784 x $27_123,106 = 529,357,398 90_91 1.0421 x 1.0226 =1.06.57 1.0657 x $29,357,398 = 531.286,179 91-92 1.0414 x 1.0264 =1.0689 1.0689 x $31,286,179 = S33,441,797 92-93 .9936 x 1.0241 =1.0175 1.0175 x 33,441,797 = 534,027,028 93-94 1.0272 x 1.0213 = 1.0491 1.0491x34,027,028- S35,697,755 94-95: 1.0071 x 1.0157 = 1.0229 1.0229 x 35,697,755 536,515,234 95-96 1.0472 x 1.0131 =1.0609 1.0609 x 36,515,234 = S38,739,012 96-97 1.0467x1.0168=1.0643 1.0643 x 38739012 =- S41.229,332 97-98 1.0467x 1.0070=1.0540 1.0540x 41,229,332 - S43,456,825 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 -- S51,843,597 01-02 1.0782x1.0190=1.0987 S.56,959,824 1.0986858 = 02-03 .9873x1.0214=1.00843 S57,439,894 1.00842822 03-04 1.0231x1.0169=1.0404 S59,759,913 1.04039039 04-05 1.0328x1.0075=1.040546 562,182,939 1.040546 05-06 1.0526x1.0096=1.06270496 S66,082,1 I8 1.06270496 06-07 1.0396x1.0030=1.0427188 568,905,066 1.0427188 07-08 1.0442x1.0090=1.0535978 572,598,226 1.0535978 08-09 1.0429x1.0068=1.0499917 576,227,535 1.0499917 09-10 1.0062x1.0042=1.01042604 $77,022.286 1.01042604 10-11 .9746x1.0061=.980,54506 575,523,822 0.98054506 11-12 1.(..51x1.0061=1.03135311 ',7'.891.729 1.03135311 12-13 .03 77x I.0077=1.04.569029 S81.450,625 1.04569029 13-14 1.0512"1.0057=L0571 9184 S86.I OS,936 1.057191.84 14-1.1 0.9977% 1.0066=1.00428482 SS6,477,897 1.00428482 15-16 1.0382x 1.0035=1.04 1833 -7 0 590,095,558 1.04183370 15-16 Appropriations Subject to Limit: S36,831,981 S90.095,588 APPROPRIA"CIONS SUBJECT TO LIMITATION E\IIIBIT C E. OVER(UNDER) LIMI'1 1 (53,263,605) 36.831,981 = 90,095,588 40.88% EXCLUDED APPROPRIATIONS City of Lodi Fiscal Year 2015-16 EXHIBIT D TOTAL EXCLUDABLE I— None (Copy to Exhibit C & G) City of Lodi EXHIBIT E Schedule to Match User Fees to Costs Fiscal Year 2015-16 .......... ...... ..... art E� Public Safety Fees 371,400 28,991,120 0 Parks and Rec/Cultural Fees L 7 52,650 4,902,870 0 Community Development Fees 412,800 2,55387410 0 PW Engineering Fees 839,280 1,342,600 0 Library Fees 27,000 11388,940 0 Total 38,163,940 0 3,403-,130 City of Lodi Fiscal Year 2015-16 TAXES:........... Property Taxes Sales & Use Tax Business License Tax Franchise Tax Transient Occupancy Tax Real Property -Documentary Tax In -Lieu Franchise "fax FROM STATE Motor Vehicle In Lieu Stale 1 I-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 51390 Reimbursements Asset Seizure Funds/Auto Theft Drug Suppression Grant State special grants Traffic Congestion Relief State STIP reimbursement LOCALI,Y 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 I::xhibit (3) INTEREST EARNINGS (from Exhibit G) TO'TAL REVENUE (use for Exhibit C) RESERVE WITHDRAWALS (Including appropriated Fund Balance) TOTAL OF THESE FUNDS OTHER FUNDS NOT INC AJDF,D GRAND TOTAI. BUDGET Calculation - Proceeds of Taxes fl; EXHIBIT F 9,300.030 9,200,030 11,774,880 374,450 13,149,860 1,440,000 1,440,000 1.823, 800 1,822,800 600,000 600,000 140,000 140,000 7.082,070 7,082,070 4,746,120 4,746,130 11,400 11,400 1,348,9 ;0 1,348,930 1, i SCi. 300 0 3,630 000 3,630,000 44,10(i 44,100 0 0 890,00x1 890,000 40,000 40,000 10,000 10,000 00 0 0 0 0 301,410 301,410 1,236 ,500 1,336,500 0 0 0 0 1,479,900 1,479,900 851,000 851,000 1,919.210 1,919,210 1, i SCi. 300 1,156,300 36,805,900 1 33,040.890 1 58,846,790 26,081 1 15.619 1 77T700 36,831,981 22,056,509 58,888,490 0 i 8, S R 5,490 131507,130 180,395.630 EXHIBIT G Interest Earnings Produced by Taxes City of Lodi Fiscal Year 2015-16 ................ .......... .0 T. A. NON-INTERFSTTAX PROCEEDS 36,805,900 '(E xhibit F) B. MINUS EXCLUSIONS 0 (Exhibit D) C. NET INVESTED "TAXES 36,805,9 (A -B) 1). TOTAL NON-INTEREST BUDGET 58,846,790 ^(Exhibit F) E. TAX PROCEEDS AS PERCENT OF BUDGET 62.55% (C/D) F. INTEREST EARNINGS 41.700 G. AMOUNT OF INTEREST EARNED 26,081 (E*F) FROM TAXES If. ANIOUNTOF INTEREST EARNED ON NON -TAXES 15,6191 (F -G) I. Take the result of steps ' G & 11 Copy on to Exhibit F 16 Budget I City Council Meeting June 10, 2015 Overview J ■ General Fund Departments o Police o Fire o Public Works o Administration o Internal Services o Non -Departmental ■ Summary 2 General Fund General Fund Fund Balance Beginning Fund Balance Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) Audited Audited Estimated 2012-13 2013-14 2014-15 2014-15 2015-16 Actuals Actuals Budget Actuals Budget 6,164,685 7,559,467 7,520,074 8,950,876 10,692,396 41,380,988 43,428,188 43,825,560 45,085,030 46,708,260 39,986,206 42,036,779 43,868,640 43,343,510 46,862,540 1,394,782 1,391,409 (43,080) 1,741,520 (154,280) Fund Balance Ending Fund Balance Unreserved* 7,559,467 8,950,876 7,476,994 10,692,396 10,538,116 *Composed of Catastrophic & Economic reserve ($3,736,661 each); DIVCA reserve ($300,000); 3 designated for settled labor agreements ($1,365,440); available reserve ($1,399,354) Departmental Funding J Department 2014115 Allocation 2014115 Ratio* 2015116 Recommended Funding 2015116 Ratio* Change 2014115 to 2015116 City Clerk $626,320 1.48% $547,020 1.22% $79,300 City Manager $414,420 0.98% $448,100 1.00% $33,680 City Attorney $490,810 1.16% $488,650 1.09% $2,160 Internal Services $3,367,710 7.97% $3,606,320 8.04% $238,610 Non -Departmental $7,563,810 17.90% $7,930,030 17.68% $366,220 Economic Development $488,280 1.16% $507,630 1.13% $19,350 Police $17,405,020 41.18% $18,241,970 40.66% $836,950 Fire $9,967,970 23.58% $10,749,150 23.96% $781,180 Public Works $1,940,520 4.59% $2,345,820 5.23% $405,300 Capital Projects $1,326,200 $1,997,850 $671,650 Total $43,591,060 1 100.00%1 $46,862,540 1 100.00%1 $3,271,480 *Excluding Capital Projects Police ■ $836,950 increase from FY 2014/15 ■ Salary & benefit increase ($267,000) ■ Service & supplies increase ($482,000) ■ Vehicle replacement increase ($87,900) 5 Police ■ 71 sworn positions funded ■ Positions recommended o Add Assistant Animal Services Officer o Delete Parking Enforcement Assistant 11 Fire ■ $781,180 increase over FY 2014/15 ■ 52 sworn positions ■ Salary & benefit increase ($108,100) ■ Service & supply increase ($558,800) ■ Vehicle replacement increase ($114,300) 7 Public Works ■ $405,300 increase over FY 2014/15 ■ No position changes ■ Salary & benefits increase ($114,500) ■ Service & supply increase ($299,300) N Administration J ■ Includes City Clerk, City Attorney, City Manager and Economic Development ■ $28,430 decrease over FY 2014/15 o Election costs decrease ($85,000) o Debt Service increase ($39,000) ■ Includes support for Community Events ($85,000) 9 Internal Services ■ $238,610 increase from FY 2014/15 ■ No position changes ■ Salary & benefit increase ($103,100) ■ Service and supply increase ($112,000) 10 Non -Departmental J ■ $1,037,870 increase over FY 2014/15 ■ Total appropriation $9,927,880 ■ No permanent staff ■ Consists of: o City paid utilities/postage ($1,529,000) o Consulting/Audit/Property Tax Fees ($431,500) o DIVCA expenses ($100,000) o Transfers to other funds ($8,422,040) 11 Non -Departmental ITo IAmount P RCS $3,655,620 Li brary $1,349,180 Capital Outlay $1,761,640 Streets $607)1601 Debt Service $667,230 Community Dev $165,000 IT Replacement $236,210 Total 1$8,442,0401 12 Capital Outlay Purpose Amount Fire Station #2 $782,050 Financial system implementation $2501000_ City Hall Annex refurbish $238,220 HSS roof rehabilitation $170,000 Parking lot resurface $70,000 Animal shelter improvements $50,0001 City Hall awning replacement $10,000 Total $1,570,270 13 All Funds ■ Total revenue of $190,738,430 ■ Total appropriation of $193,893,070 ■ Decrease in reserves of $3,154,640 o General Fund ($154,280) o Enterprise funds ($2,893,850) o Special Revenue ($940,120) o Others $833,610 14 Labor ■ 391 funded positions 0 8 more than prior year ■ All employee groups under contract through 2017 except Fire o Tentative agreements with AFSCME, Police and Police Mid Management 15 Positions ■ Recommended position changes Classification Department Number Lineworker Apprentice Electric 2 Electrician Electric 2 Administrative Clerk Public Works 1 Laboratory Supervisor Public Works 1 Lead Electrician Public Works 1 Street Maintenance Worker VII Public Works 1 Service Writer Public Works 1 Building Inspector 1/11 Communit Development 1 Assistant Animal Services Officer Police 1 Parking Enforcement Assistant Police 1 Parks Supervisor PRCS 1 Heavy Equipment Mechanic Public Works 1 Net positions added 8 16 PERS Projections 2015 16 2016 11' 2017/18* 2018/19* 2019/20* 2020/21* Miscellaneous 19.994% 21.6% 22.9% 24.3% 25.P% 25.5% Safety 40.81Q% 44.4% 46.8% Estimated Cost $8,4M $9,4M $10,1M Projected rates from PERS includingmortalityadjustments 49.1% 51.5% 51.8% $10.9M $11.6M $11.8M 17 M r Capital Projects ■ Wastewater System Maintenance ($5 -OM) ■ Electric System Maintenance ($3.6M) ■ Road Maintenance/Resurfacing ($2.4M) ■ Water System Improvements ($2.1 M) ■ Boat Launch Upgrades ($0.7M) 18