HomeMy WebLinkAboutMinutes - May 24, 2011 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, MAY 24, 2011
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, May 24, 2011, commencing at 7:00 a.m.
Present: Council Member Hansen, Council Member Katzakian, Mayor Pro Tempore Mounce,
and Mayor Johnson
Absent: Council Member Nakanishi
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 an
overview of the general fund departments including police, fire, public works, administration,
internal services, and non -departmental. Additional topics of discussion included staffing, major
cost increases, concessions, and capital outlay.
In response to Council Member Hansen, Mr. Ayers stated the medical cost projections are based
on history and usage, actual numbers will be received in September, and a true -up will occur at
mid -year review.
In response to Mayor Pro Tempore Mounce, Mr. Ayers stated the contingency plan if the 12%
projection is off is the true -up at mid -year after the actual numbers are received. Mr. Bartlam
stated the reserves are a last case scenario and differences, if any, would likely be resolved
through salary savings by way of natural progression.
In response to Council Member Hansen, Mr. Ayers confirmed there are 73 sworn personnel in the
Police Department assuming there are no reductions due to lack of concessions.
In response to Council Member Hansen and Mayor Pro Tempore Mounce, Mr. Ayers and
Mr. Bartlam confirmed there are currently 23 dispatchers, one will be lost through early retirement
leaving 22, and two could be lost due to a lack of concessions leaving 20, which will leave one
supervisor and two leads in the unit.
In response to Mayor Johnson, City Attorney Schwabauer confirmed there are two early
retirements pending in the Fire Department and a third position will likely be lost due to a pending
transfer to another agency.
In response to Mayor Johnson, Mr. Ayers stated the total number of retirements through the early
retirement incentive is 14.
In response to Council Member Hansen, Mr. Ayers confirmed the current and previous year's
reduction to the Downtown Lodi Business Partnership and San Joaquin Partnership of 15%.
Mr. Ayers stated any reductions to Visit Lodi must be done through its contract, which currently
requires the City to pay it 19% of transient occupancy tax for a five-year period.
Continued May 24, 2011
In response to Council Member Hansen, Mr. Ayers stated currently some reimbursement is
received for overtime and other staffing and department costs associated with the Grape Festival
but not other similar events.
In response to Mayor Pro Tempore Mounce, Mr. Ayers stated the cost recovery is accounted for
in the non -departmental although the narrative is provided under the economic development
section.
In response to Council Member Hansen, Mr. Ayers stated the increase in the County's property
tax administration fee is based on a formula that is somewhat of a mystery, the allocation base is
currently under litigation, and the City is under a tolling agreement for the fee.
In response to Mayor Pro Tempore Mounce, Mr. Schwabauer confirmed there are no costs to the
City for the litigation as the tolling agreement currently covers the City and litigation should be
resolved this year.
In response to Mayor Johnson and Council Member Katzakian, Mr. Ayers stated the $660,000
debt service for Hutchins Street Square, which retires in 2032, is accounted for in the general
fund and the department budget.
In response to Mayor Johnson, Mr. Ayer stated he is hopeful that staff will be able to begin
the financial system project in the 2012/13 year based upon the current and proposed funding
availability.
In response to Mayor Johnson, Mr. Bartlam stated with respect to the current status of Fire
Station No. 2, staff is in discussions with a property owner for a potential relocation site, the new
Interim Fire Chief is looking at alternatives including a rebuild at the current site, the ready-made
modular station remains available, and they are still several months away from a final decision on
the project.
In response to Council Member Hansen, Mr. Bartlam stated the $75,000 is needed to replace the
carpeting in City Hall because it is so old and worn that there are concerns about safety and trip
hazards.
In response to Myrna Wetzel, Mr. Bartlam stated the staffing minimum for engines in the Fire
Department is three.
C. Comments by Public on Non-Aaenda Items
None.
D. Adjournment
No action was taken by the City Council. The meeting was adjourned at 7:36 a.m.
ATTEST:
Randi Johl
City Clerk
N
DECLARATION OF POSTING
On Thursday, May 19, 2011, in the City of Lodi, San Joaquin County, California,
a copy of the May 24, 2011, Shirtsleeve Session Meeting agenda (attached and
marked as Exhibit A) was posted at 437 E. Elm Street, Lodi.
declare under penalty of perjury that the foregoing is true and correct.
Executed on May 19, 2011, at Lodi, California.
RANDI JOHL
CITY CLERK
by:
IA BECERRA
INISTRATIVE CLERK
AGENDA ITEM
CITY OF LODI
o•
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Receive Presentation Regarding Fiscal Year 2011/12 Budget
MEETING DATE: May 24, 2011
PREPARED BY: 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
tenets, 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.
Staff released the draft FY 2011/12 budget last week. The draft document includes a placeholder
amount within each department/fund that is needed to bring the department/fund into balance. Staff will
continue to refine the numbers as tentative agreements are reached with bargaining groups and will
provide a revised, balanced budget document for Council adoption in June. Should any bargaining unit
not provide concessions, or provide concessions in an amount less than that needed to balance the
budget, staff will present position lay-offs necessary to balance the budget.
Staff has conducted a series of presentations that provided Council and the public with the basic
parameters that form the foundation of the budget. The Shirtsleeve Session on May 3, 2011 focused on
general economic issues the City is addressing in the budget process along with General Fund revenue
projections. The Shirtsleeve Session on May 10, 2011 discussed the Electric, Water and Wastewater
Utilities. The Shirtsleeve Session on May 17, 2011 addressed the Library Fund, the Transit Fund, the
Streets Fund, the Community Development Fund and the Parks, Recreation and Cultural Services Fund.
Today's discussion will focus on the expenditure side of the General Fund.
FISCAL IMPACT: Staff is presenting a balanced General Fund, with revenues and expenditures
equaling $41,255,340. Projected expenses that will be presented represent a
"worst case scenario," in that projected expenditures have not been reduced for
any concessions, early retirements or staff reductions that may occur.
JA/ja
ordan Ayers
Deputy City Manager
APPROVED:
Konradt Bartlam, City Manager
udget I
City Council Shirtsleeve Session
May 24, 2011
Overview J
■ General Fund Departments
o Police
o Fire
o Public Works
o Administration
o Internal Services
o Non -Departmental
2
General Fund Overview J
General Fund
Fund Balance
Beginning Fund Balance Unreserved
Revenues
Expenditures
Net Difference (Revenues Less Expenditures)
Fund Balance
Ending Fund Balance Unreserved
Audited Audited Estimated
2008.09 2009.10 2010.11 2010.11 2011.12
Actuals Actuals Budget Actuals Budget
4,159,007
3,383,191
3,831,962
3,896,576 3,961,428
41,015,454
40,547,920
41,321,750
41,321,690 41,255,340
41,791,270
40,034,535
41,371,750
41,256,838 41,255,340
(775,816)
513,385
(50,000)
64,852 -
3,383,191 3,896,576 3,781,962 3,961,428 3,961,428
Staffina J
Fiscal Year
Authorized
Funded
2009/10
262
236
20010/11
260
234
2011/12
1 259
1 223
Excluding Parks
Maior Cost Increases
■ Total salary and benefit cost increase
over FY 2010/11
o $4,238,000
■ Drivers of major cost increases
o Worker's Comp $1,202,190
o PERS Retirement $850,700
o PERS Medical $354,080
Police J
■ Total salary and benefit increase over
FY 2010/11
o $2,132,870
0 108 funded positions
■ 5 less than prior year
o All non -sworn
R
Police
■ Concessions agreements from all
bargaining groups except Police
Officers Association and Dispatch on
Junel agenda
■ Absent concessions from these
groups, will be recommending:
o Elimination of 4 positions in Police
o Elimination of 2 positions in Dispatch
;,
Fire
■ Total salary and benefit increase over FY
2010/11
o $170767530
0 59 funded positions
■ 1 less than prior year
o Due to early retirement
■ Concession agreements with all groups on
Junel agenda
o Lodi Professional Firefighters concession to
eliminate three positions
Public Works J
■ Total salary and benefit increase over
FY 2010/11
o $286,630
0 15 funded positions
■ 3 less than prior year
o Due to early retirements
■ Concession agreements with all
groups on June 1 agenda
Administration
■ Includes City Clerk, City Attorney, City
Manager and Economic Development
■ Total salary and benefit increase over FY
2010/11
o $271,930
0 12 funded positions
■ 1 less than prior year
■ Concession agreements approved on May 4
10
Administration
■ Includes reducing contributions by
15% to:
o DLBP (proposed funding $24,230)
o San Joaquin Partnership (proposed
funding $25,290)
11
Internal Services J
■ Total salary and benefit increase over
FY 2010/11
o $470,030
0 29 funded positions
■ 1 less than prior year
o Due to early retirement
■ Concession agreements with all
groups on June 1 agenda
12
Non -Departmental J
■ Total appropriation $9,067,890
■ No staff
■ Consists of:
o City paid utilities ($1,304,300)
o Arts Grants ($36,120)
o Support for Community Events ($65,020)
o Consulting/Audit/Property Tax Fees ($501,500)
o DIVCA expenses ($98,850)
o Transfers to other funds ($7,998,070)
13
Non -Departmental
To
Amount
P RCS
$3,88175201
Library
$1,349,180
Debt Service
$1,008,820
Capital Outlay
$988,750
Streets
$554,6001
Community Dev
$150,200
IT Replacement
$65,0001
Total
$7,9981070
14
Capital Outlay
Purpose
Amount
Fire Station #2 Allocation
$449,310
Reserve for Financial System Replacement
$300,000
Various projects
$239,380
Total
$988,750
15