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HomeMy WebLinkAboutMinutes - February 12, 2013 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, FEBRUARY 12, 2013 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, February 12, 2013, commencing at 7:00 a.m. Present: Council Member Hansen, Mayor Pro Tempore Katzakian, and Mayor Nakanishi Absent: Council Member Johnson, and Council Member Mounce Also Present: City Manager Bartlam, City Attorney Schwabauer, and City Clerk Johl B. Topic(s) B-1 Receive Fiscal Year 2012/13 Mid -Year Budget Report (CM) Deputy City Manager Jordan Ayers provided a PowerPoint presentation regarding the 2012/13 mid -year budget review. Specific topics of discussion included a General Fund overview, key revenue variances, departmental variances, variances in General Fund departments, variances in Parks, Recreations and Cultural Services, variances in the water, wastewater and electric utilities, Community Development variances, self-insurance variances, and Police special revenue variances. In response to Council Member Hansen, Mr. Ayers stated the sales tax consultant and staff do look at what businesses are coming in to town and which are leaving to include projections for those businesses that have taken out permits. In response to Council Member Hansen, Mr. Ayers stated Strike Team call outs are reimbursable. In response to Council Member Hansen, Mr. Ayers confirmed that the primary reason for the debt service reduction is the refinancing. City Manager Bartlam stated the Parks, Recreation and Cultural Services mid -year budget does include the repairs to the pool at Hutchins Street Square. In response to Council Member Hansen, Public Works Director Wally Sandelin stated since the water treatment plant construction is complete the $1.5 million will go toward retiring debt service. In response to Mayor Nakanishi, Mr. Ayers confirmed that the primary reduction in the water utility is due to bond funds not being utilized. In response to Council Member Hansen, Mr. Ayers stated the next auction in Electric Utility is May 2013. In response to Council Member Hansen, Mr. Ayers stated the 70% self-insurance amount is set by City Council policy based on actuarial studies. In response to Council Member Hansen, Mr. Ayers and Mr. Bartlam confirmed that several Police Department grants provide staff funding, AB 109 was granted for one year for realignment purposes, and another grant funding four officers will expire in December 2013. Council Member Hansen and Mayor Nakanishi expressed their desire to keep the four officers currently funded through the grant permanently. In response to Mayor Nakanishi, Mr. Bartlam confirmed that the current police grant funding for Continued February 12, 2013 the four officers will continue through 2013 and after that the City will need to find an additional $250,000. In response to Mayor Nakanishi, Mr. Ayers stated the mid -year budget adjustments are based on the best estimate of where the numbers will align at the end of the budget cycle. In response to Mayor Nakanishi, Mr. Bartlam stated the refund amount of the County property tax administrative fee is unknown because the matter is still pending in the courts although staff believes the City's share will be approximately $600,000. In response to Council Member Hansen, City Attorney Schwabauer stated the matter is before the California Supreme Court on a motion for reconsideration, which is an appeal of sorts and could be tied up for quite some time. Mr. Bartlam and Mr. Schwabauer confirmed that in addition to the specific amount, the repayment method remains unknown as well. In response to Mayor Nakanishi, Mr. Bartlam stated there is a $167,000 savings in the current fiscal year from the formula adjustment for collection of the administrative property tax fee, for which the City has already received notification from the County. In response to Council Member Hansen, Mr. Bartlam stated he does not believe that the decision will be reversed in favor of the County or that the City will need to pay an additional amount in the unlikely event that it is reversed. In response to Council Member Hansen, Mr. Bartlam stated the entire court operation in Lodi will close effective March 1, 2013, and there will be an action before the City Council at the next meeting to approve an agreement with the San Joaquin County Sheriffs Department for transportation services from the jail. In response to Council Member Hansen, Mr. Bartlam confirmed that small claims court services ended last September in 2012. In response to Mayor Pro Tempore Katzakian, Mr. Bartlam stated that, while some costs from the court closure remain unknown, there will be a minimum cost of $75,000 plus overtime related to the transportation services from the jail to the County facilities. In response to Council Member Hansen, Mr. Bartlam stated the savings projected this year could easily be consumed by next year's anticipated increase in the City's CalPers payment and the Police Department need for continued funding for officers currently covered by grants. In response to Council Member Hansen, Mr. Bartlam stated he will be looking at funding availability to fill the Economic Development position before the end of the year. In response to Mayor Nakanishi, Mr. Bartlam provided a brief overview of the current Community Development positions and the types of events and organizations currently funded through the economic development budget. In response to Myrna Wetzel, Mr. Bartlam stated that the County has decided to retain the Meals on Wheels service instead of letting the Loel Center bid for the service. He confirmed that the program is not one that is provided through or by the City. C. Comments by Public on Non-Aaenda Items None. N Continued February 12, 2013 Adjournment No action was taken by the City Council. The meeting was adjourned at 7:47 a.m. ATTEST: Randi Johl City Clerk AGENDA ITEM CITY OF LODI COUNCIL COMMUNICATION TM AGENDA TITLE: Receive Fiscal Year 2012113 Mid -Year Budget Report MEETING DATE: February 12, 2013 PREPARED BY: Deputy City Manager 15601 RECOMMENDED ACTION: Receive Fiscal Year 2012113 mid -year budget report. BACKGROUND INFORMATION: Staff has gathered and reviewed departmental estimates of revenue and expenses/expenditures for Fiscal Year 2012113. Summarized key elements of this review are presented herein. General Fund: Revenues are projected to be about $200,000 over budget while expenditures are anticipated to be about $680,000 under budget resulting in an increase to fund balance of about $880,000. The primary reason for the revenue increase is increased sales tax and property tax collections. Expenditure reductions are primarily due to salary and benefit savings. Parks, Recreation and Cultural Services: PRCS is estimating revenues to be about $464,000 below budget and expenditures to be $550,000 below budget. Overall, an increase to fund balance of $115,000 is projected. Water Utility: The Water Utility is projecting reduced revenues and expenses. Net impact is a reduction in reserves of $2.1 million against a budgeted reduction in fund balance of $3.1 million. Wastewater Utility: The Wastewater Utility is projecting reduced revenues and expenses. Net impact is a reduction in reserves of $435,000 against a budgeted reduction in fund balance of $1.1 million. Electric Utility: The Electric Utility revenues are estimated to be about $2.6 million below budget while expenses are estimated to be about $680,000 below budget. Net impact is a decrease in reserves of about $634,000 against a budgeted increase in reserves of $1.3 million. Community Development: Community Development is projecting an increase in reserves of $371,000 due to increased revenues and reduced expenditures. Self Insurance: While budgeted for a reserve increase of about $800,000, the estimated increase is about $1.3 million due to reduced expenses. Police Special Revenue: Revenues are estimated to be about $103,000 higher than budget while expenditures are slightly over budget. Net impact is that fund balance will increase by about $11,000 as compared to a budgeted reduction in fund balance of $81,000. L' W Q060 W03 Bartlam, City Manager Debt Service/Capital Outlay: Both revenues and expenditures in the Debt Service fund are reduced as a result of the refinancing of debt earlier this fiscal year. The savings in debt service expenses, about $1.2 million this year, is being transferred to the Capital Outlay fund to fund the Fire Station 2 replacement. HUD -Sustainable Communities: The grant from HUD for the Sustainable Communities project is $52,000 higher than shown in the adopted budget. Both revenues and expenditures will be adjusted to reflect the higher grant amount. Jordan Ayers Deputy City Manager JAlja dget City Council Shirtsleeve February 12, 2013 General Fund Overview Audited Estimated Budget to 2011-12 2012-13 2012-13 Est. Actuals Actuals Budget Actuals Variance eneral Fund Fund Balance Beginning Fund Balance Unreserved 5,597,678 3,968,897 6,164,685 2,195,788 Revenues 40,520,257 42,071,274 42,270,590 199,316 Expenditures 39,953,250 42,071,274 41,390,860 (680,414) Net Difference (Revenues Less Expenditures) 567,007 - 879,730 879,730 Fund Balance Ending Fund Balance Unreserved 6,164,685 3,968,897 7,044,415 3,075,518 2 Kev Revenue Variances ■ ■ 0 Property Tax Sales Tax Recycled Water Sales +$146,000 +$392,000 -$240,000 Der)artmental Variances J Department 2012/13 Budget 2012/13 Estimate Over/ (Under) Budget City Attorney $466,730 $466,470 ($260) City Clerk $5859340 $558,820 ($26,520) City Manager $4189040 $368,910 ($499130) Economic Development $6189690 $452,995 ($165,695) Fire $9,581,630 $9,326,010 ($255,620) Internal Services $373747420 $3,260,185 ($114,235) Non Departmental $8,468,760 $8,955,535 $486,775 Police $16,9879264 $16,466,670 ($520,594) Public Works $1,570,400 $1,535,265 ($35,135) Total $429071,274 $41,390,860 ($680,414) General Fund Departments J ■ City Clerk ($2s,520 under budget) o Changes in Medical plans ■ City Manager ($49,130 under budget) o Staff savings ■ Economic Development ($165,695 under budget) o Debt Service cost reduction ■ Fire ($255,620 under budget) o Vacancies and Strike Team reductions General Fund Departments J ■ Internal Services ($114,235 under budget) o Personnel cost savings (medical, deferred comp, vacancies) ■ Non -Departmental ($486,775 over budget) o Debt Service revision offset by reduction in Property Tax Administration Fee ■ Police ($520,594 under budget) o Debt Service reduction ■ Public Works ($35,135 under budget) o Vacancies R Parks, Recreation & Cultural Services Fund Balance Ending Fund Balance Unreserved (861,843) (785,464) (746,353) 39,111 II Audited Estimated Budget to 2011-12 2012-13 2012-13 Est. Actuals Actuals Budget Actuals Variance arks Recreation &Cultural Svcs Fund Fund Balance Beginning Fund Balance Unreserved (846,381) (815,032) (861,843) (46,811) Revenues 5,773,466 6,009,620 5,545,455 (464,165) Expenditures 5,788,928 5,980,052 5,429,965 (550,087) Net Difference (Revenues Less Expenditures) (15,462) 29,568 115,490 85,922 Fund Balance Ending Fund Balance Unreserved (861,843) (785,464) (746,353) 39,111 II Parks, Recreation & Cultural I Services Variances ■ Revenue reduction due to debt service reduction ■ Expenditure Reductions o Debt Service o Staff reductions/vacancies ■ Includes deferred maintenance cost on HSS pool .1 Water Utility Audited 2011-12 Actuals Water Utility Enterprise Fund Cash Balance Beginning Cash Balance 12,807,412 Estimated Budget to 2012-13 2012-13 Est. Actuals Budget Actuals Variance 14,656,699 12,465,350 (2,191,349) Revenues 13,678,648 20,822,160 19,165,055 (1,657,105) Expenditures 14,020,710 23,932,381 21,253,970 (2,678,411) Net Difference (Revenues Less Expenditures) (342,062) (3,110,221) (2,088,915) 1,021,306 Cash Balance Ending Cash Balance 12,465,350 11,546,478 10,376,435 (1,170,043) Water Utility Variances J ■ Revenue reduction due to completion of Water Treatment Plant ■ Expense saving primarily in Water Treatment Plant and PCE/TCE Remediation 10 Wastewater Utility Audited 2011-12 Actuals Wastewater Utility Enterprise Fund Cash Balance Beginning Cash Balance 10,606,065 Estimated Budget to 2012-13 2012-13 Est. Actuals Budget Actuals Variance 8,380,707 12,513,936 4,133,229 Revenues 15,947,883 14,235,330 14,122,000 (113,330) Expenditures 14,040,012 15,330,026 14,557,200 (772,826) Net Difference (Revenues Less Expenditures) 1,907,871 (1,094,696) (435,200) 659,496 Cash Balance Ending Cash Balance 12,513,936 7,286,011 12,078,736 4,792,725 11 Wastewater Utility Variances J ■ Revenue decrease in customer revenues ■ Expense savings primarily in capital projects 12 Electric Utility J Cash Balance Ending Cash Balance * Local cash, excluding NCPA General Operating Reserve (GOR) 2,143,190 3,919,363 1,509,205 (2,410,158) 13 Audited Estimated Budget to 2011-12 2012-13 2012-13 Est. Actuals Actuals Budget Actuals Variance lectric Utility Enterprise Fund Cash Balance Beginning Cash Balance * 5,032,177 2,627,569 2,143,190 (484,379) Revenues 65,646,115 70,453,990 67,848,005 (2,605,985) Expenditures 68,535,102 69,162,196 68,481,990 (680,206) Net Difference (Revenues Less Expenditures) (2,888,987) 1,291,794 (633,985) (1,925,779) Cash Balance Ending Cash Balance * Local cash, excluding NCPA General Operating Reserve (GOR) 2,143,190 3,919,363 1,509,205 (2,410,158) 13 Electric Utility Variances J ■ Revenue reductions evenly split between customer charges and energy credit sales ■ Expense reductions come from lower purchased power and salary and benefit savings 14 Community Development Fund Balance Ending Fund Balance Unreserved 293,173 313,487 664,338 350,851 15 Audited Estimated Budget to 2011-12 2012-13 2012-13 Est. Actuals Actuals Budget Actuals Variance ommunit Develo ment Fund Fund Balance Beginning Fund Balance Unreserved 66,810 303,367 293,173 (10,194) Revenues 1,265,483 1,176,670 1,508,260 331,590 Expenditures 1,039,120 1,166,550 1,137,095 (29,455) Net Difference (Revenues Less Expenditures) 226,363 10,120 371,165 361,045 Fund Balance Ending Fund Balance Unreserved 293,173 313,487 664,338 350,851 15 Community Development 1 Variances ■ Revenues stronger in all permit areas ■ Expenses lower due to staff cost transferred to PW 16 Self Insurance J Cash Balance Ending Cash Balance 9,984,980 9,839,615 11,298,770 1,459,155 17 Audited Estimated Budget to 2011-12 2012-13 2012-13 Est. Actuals Actuals Budget Actuals Variance elf Insurance Internal Services Funds Cash Balance Beginning Cash Balance 8,530,181 9,050,835 9,984,980 934,145 Revenues 3,647,642 3,039,780 3,026,510 (13,270) Expenditures 2,192,843 2,251,000 1,712,720 (538,280) Net Difference (Revenues Less Expenditures) 1,454,799 788,780 1,313,790 525,010 Cash Balance Ending Cash Balance 9,984,980 9,839,615 11,298,770 1,459,155 17 Self Insurance Variances J ■ Workers Comp cost coming in lower than budgeted ■ Expect fund balance to support 70% confidence level in Workers Comp 18 Police Special Revenue J Fund Balance Ending Fund Balance Unreserved 217,573 46,255 228,298 182,043 19 Audited Estimated Budget to 2011-12 2012-13 2012-13 Est. Actuals Budget Actuals Variance KWICActuals KWIC Safet Special Revenue Funds Fund Balance Beginning Fund Balance Unreserved 203,034 127,348 217,573 90,225 Revenues 341,694 546,542 649,395 102,853 Expenditures 327,155 627,635 638,670 11,035 Net Difference (Revenues Less Expenditures) 14,539 (81,093) 10,725 91,818 Fund Balance Ending Fund Balance Unreserved 217,573 46,255 228,298 182,043 19 Police Special Revenue 1 Variances ■ Matching revenue and expense on grant funded items 20