HomeMy WebLinkAboutMinutes - April 30, 2013 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, APRIL 30, 2013
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, April 30, 2013, commencing at 7:00 a.m.
Present: Council Member Hansen, Council Member Johnson, Council Member Mounce, and
Mayor Nakanishi
Absent: Mayor Pro Tempore Katzakian
Also Present: City Manager Bartlam, City Attorney Schwabauer, and City Clerk Johl
B. Topic(s)
B-1 Receive Presentation Regarding Fiscal Year 2013/14 Budget (CM)
Deputy City Manager Jordan Ayers provided a PowerPoint presentation regarding the Fiscal Year
2013/14 Budget. Specific topics of discussion included general economic conditions, General
Fund revenue, fund balance, housing, employment, labor negotiations, Public Employees
Retirement System (PERS) projections, top General Fund revenue sources, sales tax, property
tax, in -lieu franchise fee, operating transfers, Vehicle License Fee, and reserve status.
In response to Council Member Hansen, Mr. Ayers stated the City's housing numbers for
foreclosures are lower than the County's numbers.
In response to Council Member Mounce, Mr. Ayers stated he is satisfied with the communication
he receives from CalPERS through webinars, conferences, and through other channels.
In response to Council Member Hansen, Mr. Ayers stated the CalPERS changes affect employer
contributions only and not employee contributions, which are set by statute at 7% of salary for
miscellaneous and 9% of salary for safety.
In response to Council Member Hansen, Mr. Bartlam stated with respect to sales tax revenue, the
City has been fortunate to replace some of the loss of the car dealership sales tax with Costco
sales tax, although it is a one-time replacement.
In response to Council Member Johnson, Mr. Ayers stated the assessor has not provided a time
line with respect to increased property tax assessments in the future and increases are not
expected for any city in the County within the next year.
In response to Council Member Johnson, Mr. Bartlam and Mr. Ayers confirmed that at its peak in
2008 the City was receiving approximately $13 million in property tax revenue and currently it is
receiving approximately $8 million.
Council Member Hansen asked for additional comparison numbers regarding peak and current
revenue source amounts for the top ten sources listed on page 8 of the presentation at the next
budget meeting.
In response to Council Member Hansen, Mr. Bartlam and Mr. Ayers confirmed that federal grant
funds for police officers expire December 31, 2013, funding for the same is considered in the
2013/14 projected budget, and there will be a 100% need to fund four police officer positions in
Continued April 30, 2013
2014/15 at approximately $130,000 each due to the expiration of the grant funds.
C. Comments by Public on Non -Agenda 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 a •'
CITY OF LODI
,. COUNCIL COMMUNICATION
TM
AGENDA TITLE: Receive Presentation Regarding Fiscal Year 2013/14 Budget
MEETING DATE: April 30, 2013
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Receive presentation regarding Fiscal Year 2013/14 budget.
BACKGROUND INFORMATION: The Fiscal Year (FY) 2013/14 budget is built on a number of basic
economic assumptions.
The draft 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:
JA/ja
General Fund revenues are expected to be $42,198,820, an increase of $288,880
over the prior year.
. 40
Jord n Ayers
Deputy City Manager
Konradt Bartlam, City Manager
udget
City Council Shirtsleeve
Session
April 30, 2013
Overview
■ General Economic Conditions
■ General Fund Revenue
■ Fund Balance
2
Housin
■ Property values increasing
o Highest values since 2007
■ Foreclosures lower than surrounding
areas
0 0. 17% in Lodi; 0.22% in San Joaquin
County; 0.14% in California; 0.12%
nationally
Source: RealtyTrac s
Employment J
■ Unemployment continues to track the
State rather than San Joaquin County
0 11.1%forLodi
0 9.7% for State
0 14.7% for San Joaquin County
(February 2013, Employment Development Department)
4
Labor Relations
■ All bargaining group agreements
expire in the budget year
■ Negotiations beginning after July 1
■ Budget built assuming no changes to
existing agreements
o Any changes will be incorporated into the
mid -year budget update
PERS Projections
■ Recent changes take effect in FY
2015/16
0 2013/14 Rates
■ 16.203% Miscellaneous ($3.0 million)
■ 35.657% Safety ($4.1 million)
0 2015/16 Projected Rates
■ 19.40% Miscellaneous ($3.8 million)
■ 39.94% Safety ($4.9 million)
N
General Fund Revenue J
FY 2013/14
FY 2012/13
Increase
$42,198,820
$41,909,940
4 . . . .
`1 •• 00
Top Ten General Fund 1
Revenue Sources
Description
FY 2013/14
FY 2012/13
Difference
5031 Sales & Use Tax
$9,657,000
$8,880,440
$7767560
5011 Property Taxes
$87156,500
$7,850,100
$306,400
5081 In -lieu Franchise
$6,976,670
$69976,670
$0
4210 Operating Transfers In
$4)0007000
$57432)990
($17432;990)
5499 In -lieu - VLF
$472261000
$4, 067, 830
$158,170
5361 Rent
$11412,330
$1,411,350
$980
5036 Business License Tax
$1,122,000
$11122,000
$0
5051 Waste Removal Franchise
$980,000
$971,630
$8,370
5207 Late Pmt -Utilities
$900,000
$870,000
$30,000
5054 Cable TV Franchise
$531,000
$500,000
$31,0001
Sales Tax
■ Budgeted year over year increase of
$776,560
0 8.7% increase over prior year budget
0 4.2% increase over prior year estimated
receipts
0 10% increase in tax paying businesses in
calendar 2012
Property Tax
■ Year over year increase of $306,400
0 3.9% increase over FY 2012/13 budget
0 2.0% increase over FY 2012/13
estimated receipts
10
In -Lieu Franchise (PILOT) J
■ Formula based upon increase in
customer counts
■ No increase over prior year
11
ODeratina Transfers
■ $1.4 million reduction from prior year
■ Phasing in results of consultant study
regarding cost of services
■ Reflects decrease in General Fund
expenditures since 2007
12
In -Lieu - VLF
■ Year over year increase of $158,170
0 3.9%
increase
over FY
2012/13
budget
0 2.0%
increase
over FY
2012/13
estimated receipts
13
Fund Balance
■ Reserve Policy places 8% into
Catastrophic Reserve
■ Next 8% into Economic Reserve
■ Available through Council action
14
Reserve Status
Estimated Fund Balance, June 30, 2013
Net Revenues/Expenditures
Estimated Fund Balance, June 30, 2014
$7,044,415
0
$7,044,415
Allocation of Estimated Fund Balance June 30, 2014
Catastrophic Reserve
Economic Reserve
Available
Total Fund Balance
$3,375,906
$3,375,906
292,603
$7,044,415 15