HomeMy WebLinkAboutMinutes - May 3, 2011 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, MAY 3,2011
A. Roll Call bv Citv Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, May 3, 2011, commencing at 7:00 a.m.
Present: Council Member Hansen, Council Member Katzakian, Council Member Nakanishi,
Mayor Pro Tempore Mounce, and Mayor Johnson
Absent: None
Also Present: City Manager Bartlam, City Attorney Schwabauer, and City Clerk Johl
B. Topic(s)
B-1 Receive Presentation Regarding Fiscal Year 2011/12 Budget (CM)
City Manager Rad Bartlam and Deputy City Manager Jordan Ayers provided a PowerPoint
presentation regarding the fiscal year 2011/12 budget. Specific topics of discussion included
general economic conditions, general fund revenue, fund balances, housing, property values,
foreclosures, employment, State budget impacts, grant losses, employee contributions, top ten
general fund revenue sources, sales tax, property tax, pilot program, operating transfers, reserve
status, and the budget adoption schedule.
In response to Council Member Hansen, Mr. Ayers stated the 0.37 percent for foreclosures has
held steady for Lodi.
In response to Mayor Johnson, Mr. Bartlam stated the COPS grant part-time officers perform a
variety of tasks including fleet coordination, background checks, and fraud investigations.
In response to Mayor Johnson, Mr. Bartlam stated the reserve officer program is volunteer -based.
In response to Council Member Nakanishi, Mr. Ayers stated the police hiring grant allows the City
to hire up to four police officers and the grant runs through 2013.
In response to Mayor Johnson, Mr. Ayers stated uncollectible late payments total approximately
$500,000 to $600,000 of $70 million.
In response to Mayor Pro Tempore Mounce, Mr. Ayers stated debt collections are transmitted to
a collection agency quarterly.
In response to Council Member Hansen, Mr. Bartlam stated the projected sales tax is
approximately $8.8 million versus three years ago when it was $6.8 million and the primary
difference is Costco, which is expected to open in one month.
In response to Council Member Hansen, Mr. Ayers stated the general housing prices have
declined along with foreclosures and short sales. Mr. Bartlarn stated the property tax formula for
annexations may have changed but there cannot be any unilateral changes in the base formula.
In response to Council Member Nakanishi, Mr. Ayers stated a franchise fee in the case of a
private utility would require a franchise agreement based on gross sales in the area.
Continued May 3, 2011
In response to Mayor Johnson, Mr. Ayers stated in 2007 the City's consultant reviewed current
formulas for funding and fees.
In response to Council Member Nakanishi, Mr. Ayers stated the $3.9 million reserve is about 35
days of operating.
In response to Council Member Nakanishi, Mr. Bartlam stated local cities do not have the
borrowing options that state and federal governments have and generally only borrow for capital
projects and not operations.
In response to Council Member Hansen and Mayor Pro Tempore Mounce, Mr. Ayers stated he
will forward the debt comparison amounts for similarly sized cities.
In response to Myrna Wetzel, Mr. Bartlam stated 45 days is not a hard fixed general reserve
amount although there is a days in cash formula for the electric reserve.
C. Comments by Public on Non -Agenda Items
None.
D. Admournment
No action was taken by the City Council. The meeting was adjourned at 7:31 a.m.
ATTEST:
RandiJohl
City Clerk
N
AGENDA ITEM 15 4W%
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Receive Presentation Regarding Fiscal Year 2011/12 Budget
MEETING DATE:
PREPARED BY:
May 3, 2011
Deputy City Manager
RECOMMENDED ACTION: Receive presentation regarding Fiscal Year 2011/12 budget.
BACKGROUND INFORMATION: The Fiscal Year (FY) 2011/12 budget is built on a number of basic
tenants, not the least of which is continued employee concessions.
Currently, management is meeting with all labor groups to come to
agreement on a package of concessions that will allow the City to present a balanced budget. Until
tentative agreements have been reached with the groups, it is premature to release the FY 2011/12 draft
budget document.
The budget is on schedule to be released for public review in mid-May, with adoption of the document
scheduled for early June.
In advance of publication of the document, staff is planning a series of presentations that will provide
Council and the public with the basic parameters that form the foundation of the budget.
Today's discussion will focus on general economic parameters and general fund revenues.
FISCAL IMPACT: General Fund revenues are expected to be $41,238,970.
JA/ja
or,ah Ayers
Deputy City Manager
APPROVED:
Icon-radt Bartlam, City Manager
udget
City Council Shirtsleeve
Session
May 3, 2011
Overview
• General Economic Conditions
• General Fund Revenue
• Fund Balance
Housin
m Property values relative stable
o 22.6% increase in average home price
since March 2009
m Foreclosures lower than surrounding
areas
o 0.37% in Lodi; 0.72% in San Joaquin
County; 0.45% in California; 0.18%
nationally
K.
Emr)ioyment I
Unemployment continues to track the
State rather than San Joaquin County
* 14.1 % for Lodi
* 12.0% for State
* 18.4% for San Joaquin County
(March 2011, Employment Development Department)
State Budaetimpacts I
0 COPS Grant lost ($100)000)
o 2 part-time officers and 2 interns
m Library Grants lost ($57,000)
o Reduce book budget and part-time staff
to offset
.2
EMDIovee Contributions
All bargaining groups had provided
temporary concessions that helped to
balance the 2010/11 budget
o Total value $1.86 million
Currently in discussions with all groups
to increase and extend concessions to
balance the 2011/12 budget
R
General Fund Revenue I
FY 2011/12
FY 2010/11
Decrease
$41)255)340
$41,321,750
($661410)
Top Ten General Fund
Revenue Sources
I
I FY 2011/12
FY 2010111
Difference
5031 Sales & Use Tax
$8,856,240
$8,797,140
$59,100
5011 Prope�y Taxes-CY Secured
81161,305
81308,480
($147,175)
5081 In -lieu Fra nch ise- Electric
61976,670
61976,670
$01
4210 Operating Transfers In
51432,990
51432,990
$0-
5499 In -lieu - VLF
41230,450
41250,000
($19,550)
5051 Waste Removal Franchise
957,600
966,300
($8,700)
5036 Business License Tax
950,000
950,000
$0
5207 Late Pmt -Utilities
860,000
830,000
$30,000
5054 Cable TV Franchise
4941250
425,000
$69,250
15565 Police Hiring Grant
480,000
476,790
Sales Tax
m Year over year increase of $59,100
Base
One -Time
Total
2OF0911 0
$617351821
$1361875
$61872)696
L201 0:/11
$7,612)250
$1,184,890
$8,797,140
L201 1/12
$8,675)380
$180,860
$8,856)240
PrODertv Tax
m Estimating a 2% reduction from prior
year
10
PILOT
m Formula based upon increase in
customer counts
m No increase over 2010/11
11
ODeratina Transfers
• Level with prior year
• Working with consultant to revise
allocation process
12
Fund Balance
m Reserve Policy places 8% into
Catastrophic Reserve
• Next 8% into Economic Reserve
• Available through Council action
13
Reserve Status
Estimated Fund Balance, June 30, 2011
Net Revenues/Expenditures
$3,961,428
9
Estimated Fund Balance, June 30, 2012 $3,961,428
Allocation of Estimated Fund Balance June 30, 2012
Catastrophic Reserve
Economic Reserve
Available
Total Reserved Fund Balance
$3,299,118
662,310
6
$3,961,428
14
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