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HomeMy WebLinkAboutMinutes - January 25, 2011 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, JANUARY 25, 2011 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, January 25, 2011, commencing at 7:00 a.m. Present: Council Member Katzakian, Council Member Nakanishi, Mayor Pro Tempore Mounce, and Mayor Johnson Absent: Council Member Hansen Also Present: City Manager Bartlam, City Attorney Schwabauer, and City Clerk Johl B. Topic(s) B-1 Receive Fiscal Year 2010/11 Mid -Year Budget Report on Expenditures (CM) City Manager Bartlam and Deputy City Manager Jordan Ayers provided a PowerPoint presentation regarding the 2010/11 mid -year budget review. Specific topics of discussion included General Fund balance, departmental variances, and costs and variances for City Manager, Internal Services, non -departmental, Police, Fire, Public Works, Community Development, Recreation, Community Center, Library, Streets, Electric Utility, and Water and Wastewater Utility. In response to Mayor Johnson, Mr. Ayers stated non -departmental includes Citywide utilities, audit services, and debt service. In response to Mayor Pro Tempore Mounce, Mr. Ayers stated medical costs show up in each departmental budget and are paid from the benefits side. In response to Mayor Pro Tempore Mounce, Mr. Ayers stated on a monthly basis the medical costs for separation are charged back to the department as needed from the benefits side. In response to Mayor Johnson, City Attorney Schwabauer stated the City does not have any control over the DIVCA amount because it is State-controlled. In response to Mayor Johnson, Mr. Ayers stated the cost for strike team call outs is a wash and balances out on both the expenditure and revenue sides. In response to Mayor Johnson, Mr. Ayers stated with aquatics revenues are not keeping up with costs and the program is upside down. In response to Mayor Pro Tempore Mounce, Public Works Director Wally Sandelin stated the principal projects being carried over are those associated with Proposition 1 B and those connected with the Harney Lane project. Mr. Sandelin stated the difference on the water side is primarily related to the meter installation program. In response to Mayor Pro Tempore Mounce, Mr. Ayers stated medical costs are a challenge because they are budgeted tightly by individual and any variance can cause an increase or decrease in the budget. In response to Council Member Nakanishi, Interim Parks and Recreation Director Rodems stated Continued January 25, 2011 the aquatics numbers were affected by increased hours at Lodi Lake and Blakely pool, which could not be offset by the revenue. Mr. Bartlam stated he will be providing additional information regarding the aquatics program and costs at the next Shirtsleeve Session when departmental reorganizations are discussed. Council Member Nakanishi requested the total compensation amount for the Police Chief position, which is currently being recruited for. City Manager Bartlam stated the first of six budget strategy workshops is scheduled for next Tuesday evening, February 1, 2011, at 5:30 p.m. at Carnegie Forum. He stated the workshops are not designed for Council, but more so for key members of the public and staff in order to create a better understanding of the inner workings of the budget. In response to Myrna Wetzel, Mr. Bartlam stated the budget strategy meetings are scheduled for the evening and may be moved later into the evening depending upon schedules. He stated the information will also be available through the City's website for the general public and those that cannot attend. In response to Myrna Wetzel, Mr. Bartlam stated the wastewater reduction in revenue is based on an anticipated implementation of a rate increase that did not happen due to expenditures being lower than expected. In response to Mayor Johnson, Mr. Bartlam stated all mid -year adjustments are scheduled for the February 16, 2011, City Council meeting. In response to Ray Crow, Mayor Johnson stated the idea of charging for fire and paramedic services as suggested in the Sacramento Bee article was previously discussed and did not go anywhere. In response to Council Member Nakanishi, Mr. Bartlam and Mr. Ayers stated that, while there is a 4.3% increase in sales tax for the third quarter, that figure should be considered in the context of numbers from previous years keeping in mind that the current increase also includes one-time sales tax from the Lodi Energy Center. C. Comments by Public on Non-Aaenda Items None. D. Adjournment No action was taken by the City Council. The meeting was adjourned at 7:35 a.m. ATTEST: Randi Johl City Clerk N AGENDA ITEM CITY OF LODI COUNCIL COMMUNICATION FM AGENDA TITLE: Receive Fiscal Year 2010/11 Mid -Year Budget Report on Expenditures MEETING DATE: January 25,2011 PREPARED BY: Deputy City Manager RECOMMENDED ACTION: Receive Fiscal Year 2010/11 mid -year budget report on expenditures. BACKGROUND INFORMATION: Staff will present data regarding the status of budget estimates for expenditures/expenses. Revenue data was provided to Council on January 11,2011. Staff will highlightthe following majorfunds in their presentation: General Fund, Community Center, Community Development, Library, Recreation, Streets and the three utility funds: Electric, Water and Wastewater. Staff will present more detail at the Shirtsleeve meeting. JAfja Jordan Ayers Deputy City Manager Konradt Bartlam, City Manager 2010/11 Mid -Year Budget Review Expenditures City Council Shirtsleeve January 25, 2011 General Fund General Fund Fund Balance Beginning Fund Balance Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) Fund Balance Ending Fund Balance Unreserved Audited Estimated Budget to 2009.10 2010-11 2010.11 Est Actuals Actuals Budget Actuals Variance $ 3,383,191 3,831,962 3,896,576 64,614 40,547,920 41,321,750 41,321,690 (60) 40,034,535 41,321,750 41,256,838 (64,912) 513,385 - 64,852 64,852 3,896,576 3,831,962 3,961,428 129,466 2 Departmental Variances Over 2010111 2010111 /(Under) Division Budget Estimated Budget City Clerk Economic Development $606,100 $610,057 $3,957 504,050 502,996 Internal Services 3,411,600 3,448,792 37,192 Police Department Public Works Department 15,970,480 15,905,896 (64,584) 1,709,690 1,694,973 Grand Total $41,321,750 $41,256,838 ($64,912) 3 General Fund Departments . City Manager ($13,,123 over budget) . Increased costs for City Manager . Internal Services ($37,123 over budget) . Increased medical costs and retro pay . Non -Departmental ($75,418 savings) . Savings in Utilities,, DIVCA and projected inventory write-off 0 General Fund Departments ■ Police ($64,584 savings) . Savings from POST training reductions . Savings from duplicated budget amounts . Savings from Chief vacancy offset by retiree payouts and increased Overtime 5 General Fund Departments . Fire ($3s,921 over budget) . Savings from fewer Strike Team call -outs . Savings from duplicated budget amounts . Increased costs associated with retirements and Battalion Chief Overtime . Public Works ($14,,717 savings) . Savings from increased reimbursements of staff costs from the utilities 0 Community Development Community Development Fund Fund Balance Beginning Fund Balance Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) Ending Fund Balance Unreserved Audited Estimated Budget to 2009.10 2010.11 2010.11 Est Actuals Actuals Budget Actuals Variance $ (921,716) (566,223) (838,657) (272,434) 1,098,577 1,102, 990 1,593,681 490,691 1,015,518 1,065,500 1,025,536 (39,964) 83,059 37,490 568,145 530,655 (838,657) (528,733) (270,512) 258,221 7 Community Development Variances . Savings due to vacant Director position Recreation Fund Balance Ending Fund Balance Unreserved (154,782) 55,922 (156,694) (212,616) Note: Does not include effect of recommended re -organization 9 Audited Estimated Budget to 2009-10 2010-11 2010-11 Est Actuals Actuals Budget Actuals Variance $ Recreation Fund Fund Balance Beginning Fund Balance Unreserved 54,410 55,722 (154,782) (210,504) Revenues 1,739,678 2,004,990 1,896,630 (108,360) Expenditures 1,948,870 2,004,790 1,898,542 (106,248) Net Difference (Revenues Less Expenditures) (209,192) 200 (1,912) (2,112) Fund Balance Ending Fund Balance Unreserved (154,782) 55,922 (156,694) (212,616) Note: Does not include effect of recommended re -organization 9 Recreation Variances . Savings from budget reduction related to After School programs • Offset by increased Aquatics staff costs 10 Community Center Fund Balance Ending Fund Balance Unreserved (352,199) (201,833) (336,634) (134,801) Note: Does not include effect of recommended re -organization 11 Audited Estimated Budget to 2009.10 2010-11 2010.11 Est Actuals Actuals Budget Actuals Variance $ Community Center Fund Fund Balance Beginning Fund Balance Unreserved (232,211) (201,833) (352,199) (150,366) Revenues 1,800,514 1,850,570 1,831,070 (19,500) Expenditures 1,920,502 1,850,570 1,815,505 (35,065) Net Difference (Revenues Less Expenditures) (119,988) - 15,565 15,565 Fund Balance Ending Fund Balance Unreserved (352,199) (201,833) (336,634) (134,801) Note: Does not include effect of recommended re -organization 11 Community Center Variances . Reduction in staff costs due to retirement • Savings from changes to medical coverage 12 Library Fund Balance Ending Fund Balance Unreserved 49,996 9,528 53,139 43,611 13 Audited Estimated Budget to 2009.10 2010-11 2010.11 Est Actuals Actuals Budget Actuals Variance $ Library Fund Fund Balance Beginning Fund Balance Unreserved 11,903 9,974 49,996 40,022 Revenues 1,463,245 1,452,700 1,446,195 (6,505) Expenditures 1,425,152 1,453,146 1,443,052 (10,094) Net Difference (Revenues Less Expenditures) 38,093 (446) 3,143 3,589 Fund Balance Ending Fund Balance Unreserved 49,996 9,528 53,139 43,611 13 Library Variances . Savings from changes in medical plans 14 Streets Street Fund Fund Balance Beginning Fund Balance Revenues Expenditures Net Difference (Revenues Less Expenditures) Fund Balance Ending Fund Balance Audited Estimated Budget to 2009.10 2010-11 2010.11 Est Actuals Actuals Budget Actuals Variance $ 8,310,298 7,035,734 8,663,509 1,627,775 5,062,427 5,690,150 7,717,570 2,027,420 4,709,216 11,289,876 9,928,712 (1,361,164) 353,211 (5,599,726) (2,211,142) 3,388,584 8,663,509 1,436,008 6,452,367 5,016,359 15 Streets Variances . Savings from staff vacancies . Savings from various capital projects that will not be fully expended in the current year 16 Electric Utility Cash Balance Ending Cash Balance * 12,125,835 8,883,049 8,694,339 (188,710) * Local cash, excluding NCPA General Operating Reserve (GOR) Note: Does not include effect of recommended re -organization 17 Audited Estimated Budget to 2009-10 2010-11 2010-11 Est Actuals Actuals Budget Actuals Variance $ Electric Utility Enterprise Fund Cash Balance Beginning Cash Balance * 12,003,103 12,232,699 12,125,835 (106,864) Revenues 64,716,745 73,269,270 66,682,233 (6,587,037) Expenditures 64,594,013 76,618,920 70,113,729 (6,505,191) Net Difference (Revenues Less Expenditures) 122,732 (3,349,650) (3,431,496) (81,846) Cash Balance Ending Cash Balance * 12,125,835 8,883,049 8,694,339 (188,710) * Local cash, excluding NCPA General Operating Reserve (GOR) Note: Does not include effect of recommended re -organization 17 Electric Utility Variances . Savings due to reduced power purchases . Projected current year deficit expected due to increased maintenance projects IN Water Utility Revenues Audited Estimated Budget to (202,963) 2009-10 2010-11 2010-11 Est Actuals 22,217,126 Actuals Budget Actuals Variance $ Water Utility Enterprise Fund (1,678,109) 745,362 Cash Balance Beginning Cash Balance 20,272,801 24,717,657 14,120,605 (10,597,052) Revenues 13,019,871 20,741,980 20,539,017 (202,963) Expenditures 19,172,067 23,165,451 22,217,126 (948,325) Net Difference (Revenues Less Expenditures) (6,152,196) (2,423,471) (1,678,109) 745,362 A --L r% -I ---- Ending Cash Balance 14,120,605 22,294,186 12,442,496 (9,851,690) 19 Water Utility Variances . Capital project expenses lower than budget 20 Wastewater Utility Wastewater Utility Enterprise Fund Cash Balance Beginning Cash Balance Revenues Expenditures Net Difference (Revenues Less Expenditures) Cash Balance Ending Cash Balance Audited Estimated Budget to 2009.10 2010-11 2010.11 Est Actuals Actuals Budget Actuals Variance $ 7,499,323 6,077,513 6,831,614 754,101 11,885,017 17,054,390 15,732,041 (1,322,349) 12,552,726 17,733,825 17,082,237 (651,588) (667,709) (679,435) (1,350,196) (670,761) 6,831,614 5,398,078 5,481,418 83,340 21 Wastewater Utility Variances . Savings from staff vacancies . Reduced use of consultants . Reduction in usage of general supplies 22 Questions?