HomeMy WebLinkAboutMinutes - May 6, 2014 SSLODI CITY COUNCIL
SHIRTSLEEVE SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, MAY 6, 2014
A. Roll Call by City Clerk
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held
Tuesday, May 6, 2014, commencing at 7:00 a.m.
Present: Council Member Johnson, Council Member Mounce, and Mayor Pro Tempore Hansen
Absent: Council Member Nakanishi, and Mayor Katzakian
Also Present: Interim City Manager Schwabauer, Interim City Attorney Magdich, and City Clerk
Johl-Olson
B. Topic(s)
B-1 Receive Presentation Regarding Fiscal Year 2014/15 Budget (CM)
Deputy City Manager Jordan Ayers provided a PowerPoint presentation regarding the Fiscal Year
2014/15 budget. Specific topics of discussion included general economic conditions, General
Fund revenue, fund balance, housing, employment, labor relations, Public Employees' Retirement
System (PERS) projections, top ten revenue sources, sales tax, property tax, in -lieu transfers,
operating transfers, and reserve status.
In response to Council Member Johnson, Interim City Attorney Schwabauer stated that, with
respect to property tax allocation, he is doing some research to see what is being paid, what the
agreement is, and what is permissible by law.
In response to Mayor Pro Tempore Hansen, Mr. Schwabauer stated that, with respect to the new
development on Sargent Road, the developer will put in the new park and the community facilities
district will be put toward the maintenance of that park.
In response to Council Member Johnson, Mr. Schwabauer stated the City has not received the
specific numbers for the mortality rate adjustment although it is expected to be approximately one
to two million dollars in excess of the 2014/15 numbers.
In response to Council Member Mounce, Mr. Ayers stated from a budgetary perspective the late
payment adjustment numbers show a decrease based on actuals.
In response to Council Member Johnson, Mr. Ayers stated business licenses are compared to the
County list of fictitious business names and the Franchise Tax Board list for businesses with a
Lodi address.
In response to Council Member Mounce, Mr. Schwabauer stated if PG&E were in Lodi the City
would receive a fee and in Stockton it also pays an additional franchise fee. Council Member
Mounce requested information on what fees would be paid by PG&E to the City of Lodi if the City
were with PG&E versus having its own utility.
In response to Council Member Johnson, Mr. Ayers stated the primary reason for phasing in the
fee study is to avoid rate shock to the General Fund.
In response to Council Member Johnson, Mr. Ayers stated only $245,000 is truly available from
the $545,504 figure listed on the reserve status slide.
In response to Council Member Johnson and Council Member Mounce, Parks, Recreation and
Cultural Services Director Jeff Hood provided an update on DIVCA funding related projects,
including video and broadcast enhancement projects, and stated he is continuing to review
options for Spanish broadcast of the City Council meetings.
Alex Aliferas spoke in regard to his concerns about the increase in CalPERS projections for the
future and the related impact to the City's budget.
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-Olson
City Clerk
AGENDA ITEM &'
CITY OF LODI
,. COUNCIL COMMUNICATION
TM
AGENDA TITLE: Receive Presentation Regarding Fiscal Year 2014/15 Budget
MEETING DATE: May 6, 2014
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: Receive presentation regarding Fiscal Year 2014/15 budget.
BACKGROUND INFORMATION: The Fiscal Year (FY) 2014/15 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: General Fund revenues are expected to be $43,591,060, an increase of
$1,392,240 over the prior year.
JA/ja
Jordan Ayers
Deputy City Manager
APPROVE
Step chwabaue , nterim ity Manager
udget
City Council Shirtsleeve
Session
May 6, 2014
Overview
■ General Economic Conditions
■ General Fund Revenue
■ Fund Balance
Housing J
■ Property values increasing
o Highest values since 2007
■ Foreclosures lower than surrounding
areas
0 0. 10% in Lodi; 0. 13% in San Joaquin
County; 0. 11 % i n California; 0.09%
nationally
Source: RealtyTrac s
Housing J
■ Development
o Impact fee program assumes 50 per year
for next 5 years
■ City Revenue
o Zero property tax
o Impact fees
o $800 (indexed annually) from Community
Facilities District
4
Employment J
■ Unemployment continues to track the
State rather than San Joaquin County
0 9.9% for Lodi
0 8.1 % for State
0 13.1 % for San Joaquin County
(March 2014, Employment Development Department)
5
Labor Relations
■ All bargaining group agreements
expire in the budget year
o IBEW not yet finalized
■ 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
9
PERS Projections J
2014/15 2015/16* 2016/17* 2017/18* 2018/19* 2019/20*
Miscellaneous 18.002% 19.6% 21.2% 22.8% 24.4% 26.1%
Safety 38.490% 40.4% 42.3% 44.3% 46.2% 48.1
Estimated Cost $7.6M $8.3M $9.1M $9.9M $10.8M $11.7M
*Projected rates from PERS
Does not account for mortality increases beginning in 2016/17
General Fund Revenue J
FY 2014/15 $43,591,060
FY 2013/14 $42,4198,0820
Increase $1,439204240
1.1
Top Ten General Fund 1
Revenue Sources
Description
FY 2014/15
FY 2013/14
Difference
5031 Sales & Use Tax
$10,1909000
$996579000
$5339000
5011 Property Taxes
$8,502,480
$891569500
$345,980
5081 In -lieu Franchise
$750335360
$699769670
$569690
5499 In -lieu - VLF
$4,410,350
$492269000
$184,350
4210 Operating Transfers In
$490009000
$490009000
$0
5361 Rent
$1,5317500
$1,412,330
$119,170
5207 Late Pmt -Utilities
$172007000
$900,000
$3007000
5036 Business License Tax
$1,180,000
$1,122,000
$58,000
5051 Waste Removal Franchise
$15027,920
$9809000
$475920
5034 Transient Occupancy Tax
1 $550,000
$510,000
$40,000
Sales Tax
■ Budgeted year over year increase of
$533,000
0 5.5% increase over prior year budget
0 3.0% increase over prior year estimated
receipts
10
Property Tax J
■ Year over year increase of $345,980
0 4.24% increase over FY 2013/14 budget
0 3.0% increase over FY 2013/14
estimated receipts
11
In -Lieu Franchise (PILOT) J
■ Year over year increase of $ 56,690
■ 2007 Council adopted formula based
upon increase in accounts
■ 0.81 %increase (206 accounts)
12
In -Lieu - VLF
■ Year over year increase of $184,350
0 4.4%
increase
over FY
2013/14 budget
0 3.0%
increase
over FY
2013/14
estimated receipts
13
ODeratina Transfers
■ Same as prior year
■ Phasing in results of consultant study
regarding cost of services
14
Fund Balance
■ Reserve Policy places 8% into
Catastrophic Reserve
■ Next 8% into Economic Reserve
■ Available through Council action
15
Reserve Status
Estimated Fund Balance, June 30, 2014
Net Revenues/Expenditures
Estimated Fund Balance, June 30, 2015
Allocation of Estimated Fund Balance June 30, 2015
Catastrophic Reserve
Economic Reserve
Available (includes approx. $300,000 for DIVCA)
Total Fund Balance
$7,520,074
I
$7,520,074
$3,487,285
$3,487,285
545,504
$7,520,074
16