HomeMy WebLinkAboutMinutes - June 15, 2004 SSCITY OF LODI
INFORMAL INFORMATIONAL MEETING
"SHIRTSLEEVE" SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, JUNE 15, 2004
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday,
June 15, 2004, commencing at 7:03 a.m.
A. ROLL CALL
Present: Council Members — Beckman, Hitchcock (arrived at 7:06 a.m.), Howard, and Land
Absent: Council Members — Mayor Hansen
Also Present: City Manager Flynn, Interim City Attorney Schwabauer, and City Clerk Blackston
B. CITY COUNCIL CALENDAR UPDATE
City Clerk Blackston reviewed the weekly calendar (filed).
C. TOPIC(S)
C-1 "Review draft fiscal year 2004-05 Financial Plan and Budget"
City Manager Flynn projected that for the next two or three years the City should be in good
financial condition. He stated that there are more than sufficient reserves to take care of
the City's needs for the next three years. The City does have a structural imbalance of
$1.3 million a year and will be borrowing from its reserves to balance fie budget. He
reported that the state takeaway is $2 million a year. He recalled that four years ago the
City began setting aside $1.5 million a year above its operating budget into the Capital
Fund for future projects; t now totals $4.5 million, plus interest. Overall in the capital
accounts there is $13 million. Mr. Flynn reported that there were some capital projects that
should have been funded with the General Fund that were charged to other funds, which
had to be reversed. He explained that it amounts to approximately $800,000 and will be
discussed at the June 16 Council meeting. He stated that the new public safety building
was a $16 million project and the annual debt service was estimated at $1.5 million.
Consequently $1.5 million was set aside annually to demonstrate that the City had the
capacity to pay the debt service. Approximately two years ago the City refinanced old debt
and borrowed additional money needed to complete the public safety building, following
which the annual debt service increased from $1.3 million to $1.7 million. Mr. Flynn
reminded Council that earlier in the year he recommended that proposed capital projects
(DeBenedetti Park, indoor sports center, aquatics facility, and animal shelter) be cancelled
until the City's financial outlook improves. There is approximately $6.1 million in the
General Fund Capital that is un -programmed. He suggested that after the 2004-05 budget
is adopted, a process begin of reviewing and prioritizing the services that each department
provides. He reported that the largest growth area has been in personnel, particularly in the
Fire Department where 15 positions were added over the past ten years. He stated that the
Fitch Rating Agency will likely be downgrading Lodi's General Fund rating from A- to B.
In reply to Council Member Land, Mr. Flynn stated the $6.1 million in reserve is a
combination of the $1.5 million set aside, interest earnings, and "probably" the $350,000
transfers taken from Electric Utility. In reference to the cost of the Environmental
Abatement Program (EAP) litigation, Mr. Flynn estimated that if the City borrowed $40
million to pay for legal fees and cleanup work, at 7% interest for 20 years, it would amount
to $1.77 per household per month in increased rates.
In response to Council Member Hitchcock, Public Works Director Prima stated that the
water rates were adjusted to pick up the additional cost of the Woodbridge Irrigation District
contract and the $800,000 estimated annual cost of the EAP litigation. He confirmed that
no part of the rate increases were to fix any past fund balance issues.
Continued June IS, 2004
Interim City Attorney Schwabauer explained that in January, he and Mr. Prima discussed
what amount should be assumed for the EAP litigation and had decided on $800,000
annually. This was before there was any track record of what the actual expenses were.
Since then approximately $200,000 a month has been spent on litigation, in addition to
$50,000 for consultant services.
Mr. Flynn reported that Lodi's sales tax decreased by 1.5% in the second quarter report.
He noted that "no growth" cities generally have a tax structure that is much higher than
other cities.
Mayor Pro Tempore Beckman asked that the topic of possible policies regarding future
revenues be placed on an agenda for public discussion as to what direction the City should
take, e.g. to work toward being a commercial or tourism center, etc.
Mr. Flynn agreed and stated that the outcome of such a discussion would set the strategy
that the Planning Department and the City needs to focus on to remain successful and
viable; otherwise, the City operates on a day to day level without a vision of the future
toward what it is trying to achieve.
Council Member Hitchcock pointed out that the 2003-04 projections were off ky $1.6
million. Addressing Mr. Flynn, she asked why he was not recommending some of the cost
saving measures he had offered earlier, considering that the budget now shows $31 million
in revenue and $36 million in expenditures. Ms. Hitchcock stated that Ehe was very
uncomfortable with the recommendation to balance the budget with phantom numbers
under the category of Other Sources and Uses, particularly when they never end up as
predicted at the end of the year.
Finance Director Krueger reviewed the "blue sheet" entitled 2004-05 Financial Plan and
Summary, Changes in the Fund Balance — General Fund (filed; marked as Exhibit A) and
presented the following information:
➢ Revised budget revenues total $32,587,481;
➢ General Fund expenditures total $34,490,227;
➢ Expenditures exceed revenues by $1,902,746;
➢ The net surplus as a result of transfers in, transfers out, and Other Sources and Uses
is $4,936,836; and
➢ The ending fund balance as of June 30, 2005, is projected to be $4.8 million, which is
14% of expenditures.
Mr. Krueger reviewed another document (filed; marked as Exhibit B) and presented the
following information:
➢ The original budget for 2004-05 showed a deficit of $5.2 million;
➢ Other Sources and Uses in the original budget showed a surplus of $4.5 million;
➢ The structural deficit in the original budget was $656,000;
➢ Recurring adjustments to expenditures amount to $3.3 million;
➢ One-time adjustments to revenues amount to $1.8 million, which is principally property
taxes that would go into the Capital Outlay account in order to pay for debt service;
based on staff's analysis of the Capital Outlay Fund the City has enough money to
make the debt service payment and set up a reserve;
➢ One-time expenditure increases total $417,000;
➢ Other items, which are primarily transfers, total $1,122,795; and
➢ The net surplus for the 2004-05 budget totals $3,034,000.
2
Continued June IS, 2004
Mr. Krueger reviewed page 2 (of Exhibit B) and reported that the structural deficit is
$1,338,946, which he advised needs to be cured before the next two-year budget.
Council Member Hitchcock again questioned the recommendation to defer cost savings
measures when there is a $1.3 million structural deficit in the budget.
Mr. Flynn explained that earlier in the year he was unaware of how much reserves there
were in the Capital accounts, which can now be used toward the deficit. He agreed that
cost saving options would be presented to Council in the next budget presentation.
D. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
None.
E. ADJOURNMENT
No action was taken by the City Council. The meeting was adjourned at 8:11 a.m.
ATTEST:
Susan J. Blackston
City Clerk
Mayor's& Council Members' Weekly Calendar
WEB( O F JUNE 15, 2004
Tuesday, June 15, 2004
7:00 a.m. Shirtsleeve Session
1. Review draft fiscal year2004-05 Financial Plan and Budget (CM)
6:00 p.m. Appreciation BBQ for Volunteers for Celebration on Central, Parsons
Point - Lodi Lake Park, 1101 West Turner Road.
Wednesday, June 16, 2004
7:00 p.m. City Council Meeting
(Note: Closed Session will begin at 5:30 p.m.)
Thursday, June 17, 2004
5:30-7:00 p.m. Ribbon Cutting and Grand Opening of Tokay Stitch'n Quilt Guild,
United Congregational Church, 701 South Hutchins Street.
Friday, June 18, 2004
Saturday, June 19, 2004
11:00 -5:00 p.m. Lodi City Employees Association Picnic, Micke Grove Park - Delta
Area, 11793 N. Micke Grove Road.
Reminder APPA National Conference, Seattle, Washington. June 19 -23, 2004.
Sunday, June 20, 2004
Monday, June 21, 2004
Disclaimer. This calendar contains only information that was provided to the City Clerk's Office.
CADocuments and Settings\jperrin\Local Settings\Temporary Internet Files\OLKC4\Mcalndr3.doc
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20,213,654
E
21,5603390
21,950,230
1,881,695 -
23,831,925
g
1,669,402
1,555,005
1,555,905
1,3KI15
1,556,115
f ,
746,857
811,090
811,090
763,945
763,945
500,058
217,171
776,260
,
331,880
776,260
(444,380)
331,880
4,291,718
4,059,062
4,145,331
4,145,331
4,056,961
(69,000)
u
1,738,806
2091, 2000 2008.. 2003:8084
1,814,930
(!48,600)
5004- 5
2,352,060
At upod
RevdMd
138,294 _
Roviwd
119 2, 50
Aekul Actud Bobo
ChUMM Sud"
DUAWd -- - Chi
Budio --
Revenue
Tax Revenues
Licaum:sd Pamits
Fines sod Forfaitu es
Investment/Property $4venues '
Intergovettunentai Revenues
Service Charges
Oder Revenue
Total Reveling
Expendltares
Operating PNgrorrw
Public Safety
Tnmspcuiation
Leisure, Culhwd aid social Services
Community and Econotme Development
General Government
Total Operating Programs
Bulk Power Purchase
Other Purchases
Capital Projects
Debt Service
Total Expenditures
R.cvenues/Expenditures (OverlUnder)
Other Sources (Uses)
Operating Transfers In
Operating Transfers Out
Other 50ruces (Uses)
Total Othor Sources (Uses)
Fund Balance Beglnnlnt or the Year
Adjustment to Fund Balance
Nand Balance End of the Year
Reserved for Debt Service
Designated Reserve
Unreserved
Totl Fond Balance
6/14/2004 515 PM
BUD 1f as tet03 -05w ithb gtreductie m 3. X L S
19,447,199
20,213,654
21,160,890
21,5603390
21,950,230
1,881,695 -
23,831,925
1,464,450
1,669,402
1,555,005
1,555,905
1,3KI15
1,556,115
143,058
746,857
811,090
811,090
763,945
763,945
500,058
217,171
776,260
(444,380)
331,880
776,260
(444,380)
331,880
4,291,718
4,059,062
4,145,331
4,145,331
4,056,961
(69,000)
3,997,961
1,738,806
1,867,525
1,814,930
(!48,600)
1,666,330
2,352,060
(387,640)
1,964,420
138,294 _
1291658
119 2, 50
119,250
121,235
_
121,235
28,327587
28,903¢29
30,383,656
(592,980)
29,790,676
31,606,806
980,675
32,567,481
13,132,941
13,530,180
15,229,994
(360,285)
14,669,709
16,86699
(678,916)
16,187,481
1,817,284
1,99$381
2,072,270
(521)
2,071,749
2,158,690
(31,288)
2,127,402
4,062,832
4,397,605
4,670,221
(198,459)
4,471,762
4,794,851
(332,863)
4,461,988
3,152,561
3,190,093
3,289,410
(318,976)
2,970,434
3,557,270
(406,055)
3,151,215
7,788,217
8,701,782
8,975,052
(340,238)
8,634,814
9,476,549
(914,408)
8,562,141
29,973,835
31,818,041
34,236947
(1,218,479)
33,018,468
36,853,759
(2,363,532)
34,490,227
71,818,041
(1,218,479}
33,018,468
34,49D,227
29,973,935
74236,047
36,853,759
-(2,363,5}2)
(1,650,252)
(2,914,512)
(3,8-3391)
625,499
(3227,792)
(5,246,953)
- 3,344,207
(1,902,746)
4,897,694
6,963,138
6,575,464
1,116,000
7,491,464
6,380,199
2,202,028
8,582,227
(4,288,392)
(5,842,729)
(4,490,867)
(470,525)
(4,961,392)
(4,490,867)
(82$662)
(5,319,529)
300,000
2,53 j001
(1,154,413)
1,375,588
2,701,404
(1,027,267)
1,674,137
609,302
1,420,409
4,414,599
(508,438)
3,904,661
4,590,737
746,099
4,936,836
1,629,228
2,588,278
2,642,505
(1,548,471)
1,094,034
3,203,813
(1,431,910)
1,771903
2,188,278 1,094,115 3,203,813 (1,431,910) 1,771,903 2,547,196 2,258,396 4,805,992
2,:88,278 1,094,175 3,203,817 (1,431,910) 1,771903 2,647596 2258596 4,805,992
8.64% 3-44% 9.36% 5-37% 6-91% 13.93%
I
6'\4- S
2004-05
Duke
Revenues less expenditures( as per original budget)
(5,246,953)
Other Sources and Ulses (as per original budget)
4,590,736
_
Net surplus (deficit) in Sources and Uses (as per original budget)
(656,217),
Adjustments to 2004-05 Budget;
Recurring adjustments to Expenditures
3,348,626:
One time adjustments:
Revenues
1,881,695
Expenditures
(417,220)
Other items (primarily transfers)
(1,122,795)'F
3,690,306
Net surplus (deficit) in Sources and Uses
after adjustments to 2004-05 budget {($1,902,746)+4,936,836}
3,034,089
of Lodi
Budget Adjustments 2004-06
General Fund
Item Amount Comments General Fund Capital Library Electric Water Sewer Other
City Manager
Personnel Services (37,800) (37,800)
Communications (3,500) (3,500)
Supplies, Materials and Semces-CM
(14,942)
(14,942)
Travel
(8,000)
(8,000)
City-wide Postage
(40,000) Stop Inserts
(40,000)
ICNIA fee
(6,000)
(6,000)
Supplies, Materials and Services
(1,500)
(1,500)
Supplies, Materials and Services -Special Pmts
(10,128)
(10,128)
Extend VTO-1 year
(50,000)
(50,000)
Increase Hiring Freeze to 28 Positions
(520,000)
(520,000)
Economic Development Coordinator
(115,800) 1 position
(115,800)
Supplies, Materials and Services -Econ Dov
(3,950)
(3,950)
Supplies, Materials and Services -Community Promotion
(250)
(2$0)
Supplies, Matenal5 and Serviees-Non•Departmental
(480)
(480)
Supplies, Materiats and Services -Telephone Account
(2,155)
(2,155)
Community Promotions
(16,050)
(16,050)
Special Payments
(3,000)
(31000)
(633,555)
(833,555) - - - - - -
City Clerk
Council Travel Account
(10,000)
(10,000)
Protocol Account
(3,000)
(3,000)
Supplies, Materials and Services • City Council
(2,453)
(2,453)
Supplies, Materials and Services
51700
5 000
(20,453)
(20,453)
City Attorney
Supplies, Materials and Services
(1,532)
(1,532)
PCErrCE Litigation and Clean Up
1,351,000 , .,,
675,500 675,500
1,349,468
(1532) 875,500 875,500
Community Center
Roll Back Arts Grant to 2000101
(25.000)
(2510001
Supplies, Matedals and Services
(37a. 374) „•
(37,374)
(62,374)
(62, 374)
Community Development
Vacancies
(96,519) 2 positions
(96,519)
Supplies, Materials and Services
(26,907)
�. (26.907) _ __-
(123,426)
(123,426) - - - - - -
Information Systems
Eliminate One Position
(48,353) 1 position
(48,353)
Supplies, Materiats and Services
L38,589)
(38,589)
(86,942)
(86,942)
Police Department
Overtime
(21,000)
(21,000)
High Crimes Investigator
(69,000) 1 position
(89,000)
Transfer of Parking Hearing Officer from CM
15,000
15,000
Reclass Management analyst
(5,200)
(5,200)
Animal Shelter Part-time Staff
19,200
19,200
Supplies, Materials and Services
(41,160)
?41.16M
(102,160)
(102,160)
of Lodi
Budget Adjustments 2004-05
Item Amount Comments General Fund Capital Ltbratj Electric Water Sewer Other
Fire Department
Firefighter
Defer Paramedic Program
Performance Bonus
Dispatching Fee
Vehicle Operations Course
Supplies, Materials and Services
Finance Department
Vacancies
Supplies, Materials and Services
Shirt Field Services to Electric
Library
Cut Sunday Hours
Supplies, Materials and Services
WaterlWastewater Utilities
Vacancies
Storm Water Analyst
Supplies, Materials and Services
Organization Evaluation
Maintenance Worker
(81,000) 1 position
(81,000)
(506,845) 6 positions
(506,845)
48,000 Approved by Council
48,000
41,000 Approved by Coancil
41,000
(12,595)
(12,595)
(85,332)
(65, 332)
(576,772) (576,772)
(140,923) 3 positions (140,923)
(30,983) (30,983)
(414,000) No immediate savings (414,000)
(585,906) (585,908)
(17,000) (17,000)
(15,91()) 15 910
(32,910) - - (32,910) - - - -
(200,089) 6 positions
450,186 Per Officia( Statement
(25,000)
Electric Utility Services
(11,495)
(142,879) 3 positions
Vacancies
(527,250) 6 positions
(527,250)
Professional Services Increase
(10,000)
(10,000)
Automated Meter Reading
(2,000)
(2,000)
Four Computers
(7,000)
(7,000)
Shift Field Services from Finance
414,000 No immediate savings
414,000
Equipment
-
Transportation
Traffic Monitor Equipment
Parks and Rec
PIT CAD Operator
Vacancies
Refurnish Basketball Floors
Relocation cost- Parks Office
Supplies, Materials an Services
(132,250) (132,250)
(41,994) (158,095)
450,186
(12,500) (12,500)
(54,494) 322,296
17,500 17,500
17,500 - 17,500 - - - - -
(11,495)
(11,495)
(142,879) 3 positions
(142,879)
(5,000)
(5,0)[1)
16,000
16,000
(127,115)
127115
(270,489)
(270,489)
Public Works
Vacancies (111,402) 2 positions (111,402)
Reclass 4 Engineering Positions (26,400) (26,400)
Supplies, Materials an Services (126,810) _ _ (126,61
of Lodi
Budget Adjustments 2004-05
One -Time Adjustments to Revenues
State Take Away - 705,000
Suspend Property Tax transfer to Capital (1,994,495)
112,800 67,660 45,120 373,650 56,400 49,350
{1,994,495) 1,994,495
One -Time Adjustments to Revenues (1,289495) _ (1,881,695) 2,062,175 45,120 373,650 56,400 49,350
Adjustments to Other Sources )Uses
General Fund
Transfer to General Fund
(2,616,000)
(2,616,000) 2,616,000
Item
Amount Comments
General Fund. Capital
Library Electric
Water
Sewer Other
Decrease in projected revenuaWSAVINGS
(264,412)
(264,412)
Eliminate deficit in Transportation Fund
26,790
26,790
Human Resources
350,000
350,000 (350,000)
Eliminate Otter sources and Uses:
Medical Account Decrease
(352,700)
(352,700)
Carry-over
250,000
250,000
Supplies, Materials an Services
(28,682)
(28,682)
Leadership Lodi and UOP
(5,4W
(5,400)
(386,782)
(388,782)
Facilities Service
Vacancies
(93,423) 2 positions
(93,423)
Maintenance - Pokce Department
(81500)
(8,500)
Reduce Janitorial Services
(57,500)
{57,500)
Rental Finance Department
108 1o0
108 100
(51,323)
(51,323)
Recurring Expenditure Changes
(1,894,984)
348 626
2 910 132 250
621 006
997 798
One -Time Adjustments to Expenditures
Suspend Admin Leave Payout
(150,000) Negotiable
(150,000)
Workers' Comp
(230,500)
(152,190)
(57,625)
(6,915)
(13,830)
Election
62,350
62,350
Audit of Envision
250,000
125,000
125,000
General Liability
100,000
67,000
20,000
2,000
11,000
PERS Increase
190,000
190,000
Golden Handshake
400,000
400 0130
One -Time Expenditure Changes
621,850 _ _
417,220
(31625)
120,085
122,170 T
One -Time Adjustments to Revenues
State Take Away - 705,000
Suspend Property Tax transfer to Capital (1,994,495)
112,800 67,660 45,120 373,650 56,400 49,350
{1,994,495) 1,994,495
One -Time Adjustments to Revenues (1,289495) _ (1,881,695) 2,062,175 45,120 373,650 56,400 49,350
Adjustments to Other Sources )Uses
Transfer to General Fund
(2,616,000)
(2,616,000) 2,616,000
Transfer offield Services
414,000
414,000 (414,000)
Increase in transfer to Benefits Fund
913,748
913,748
Decrease in projected revenuaWSAVINGS
901,020
901,020
Eliminate deficit in Transportation Fund
26,790
26,790
Eliminate transfer from Elactrlc to OF Capital
350,000
350,000 (350,000)
Eliminate Otter sources and Uses:
Vacancies
1,000,000
1,000,000
Carry-over
250,000
250,000
Estimated revenues
233,237
233,237
1,472,795 1,122,795 2,966,000 (764,000) -
Total Adjustment to Fund Balance (1,089,834) (3,69C.306) 5,028 175 12,210 ,- (560,225) 797x491 _1,109 318 ��