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Home My WebLink AboutMinutes - May 19, 2015 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, MAY 19, 2015 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, May 19, 2015, commencing at 7:13 a.m. Present: Council Member Kuehne, Council Member Mounce, Council Member Nakanishi, Mayor Pro Tempore Chandler, and Mayor Johnson Absent: None Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Ferraiolo B. Topic(s) B-1 Receive Presentation Regarding Fiscal Year 2015/16 Budget (CM) Jordan Ayers, Deputy City Manager, provided a PowerPoint presentation on the Fiscal Year 2015/16 budget. Specific topics of discussion included Special Revenue Funds; Library overview, revenues, and expenditures; Transit overview, revenue, expenses, and capital projects; Streets fund, revenues, expenditures, and capital projects; Fleet Services Internal Services fund, revenues, expenses, and position recommended; Community Development fund, revenues, and expenditures; and Parks, Recreation, and Cultural Services fund, revenues, and expenditures. Mr. Ayers reported that draft budgets were distributed to Council last week. In response to Mayor Pro Tempore Chandler, Public Works Director Wally Sandelin stated that the automatic vehicle locator acts as a tracking device to determine the position of buses in relation to the transit station in order to better schedule bus times. In response to Council Member Mounce, Mr. Sandelin confirmed that, ultimately, the device would interact with a smart phone application to let riders know the location of the buses along the route. Mayor Johnson requested staff look into the changes that Regional Transportation District is making to its routes and bus lines and how those changes will impact Lodi. Council Member Mounce questioned how issues with funding at the State level will affect the Streets Division, to which Mr. Sandelin responded that staff operates the Streets Division following the budget and ensuring revenues and expenses match; however, he indicated there is a bill pending in legislation that would provide significant funding to the City for a number of years and he was hopeful it will pass. Council Member Mounce added that there are reports that the speaker may also bring forth a transportation bill to help underfunded cities. In response to Council Member Mounce, Mr. Sandelin stated that the alley reconstruction project is funded through Community Development Block Grant funding, staff has completed most of the alleys in conjunction with the water meter program, and the remaining alleys are on hold until the final phases of the water meter program are complete, which is slated for 2017. In response to Mayor Johnson, Mr. Ayers stated that the Service Writer position in the Fleet Division would act as an intake person to receive vehicles at the shop, initiate assessments, prepare orders and enter data, deliver vehicles upon completion, assist with parts receipt and inventory, create and close work orders, and make appointments. This position would replace one Heavy Equipment Mechanic and free up the Fleet Manager and mechanic to perform their functions. In response to Council Member Mounce, Mr. Ayers confirmed that the hourly rate for the Service Writer position is much lower than the two positions currently performing these function and, due to the elimination of the vacant Heavy Equipment Mechanic, there would be no net cost. In response to Mayor Johnson, Mr. Ayers stated that, when the Service Writer is not helping with vehicles, the individual will assist in the shop with parts -related duties. In further response, Mr. Sandelin stated the Heavy Equipment Mechanic position has been vacant for some time and, during the budget process, staff will request authorization to add the Service Writer position and eliminate one of the two mechanic positions. There will be no loss to the Department. Council Member Mounce questioned why the addition of a Building Inspector position in Community Development is not funded by fees, to which Mr. Schwabauer stated the increase in expenditures is partially to fund the Youth Outreach Worker, but also to address the underfunded vehicle replacement account. In addition, the current fee study has not been updated in some time; however, that will be adjusted and built into the budget so that the fees pay for the service provided by the City. Council Member Mounce stressed that new development should pay for itself. Mr. Ayers added that, as part of the budget adoption each year, staff calculates labor rates, which will be in place July 1. The revenue stream does not yet reflect the increased cost that would enable the City to capture the rates. In response to Council Member Nakanishi, Parks, Recreation, and Cultural Services Director Jeff Hood stated that the reduction of the deficit from over $800,000 to $95 was accomplished through staff reductions and attrition, increased fees, expansion of the contract with Lodi Unified School District for the After School Program, and the collection box at Lodi Lake. Mr. Hood shared that credit is due to Parks Superintendent Steve Dutra for managing the Parks Division exceptionally well during tight times and shared that current management staff assumed additional duties to ensure services and programs are met. In response to Council Member Mounce, Mr. Hood confirmed that the elimination of part-time employees does not include class and program instructors as they are considered contractors. In response to Council Member Nakanishi, Mr. Ayers stated that all settled employee bargaining unit agreements are incorporated into the budget; however, unsettled agreements are not included and will be entered as budget adjustments once they are approved. C. Comments by Public on Non-Aaenda Items None. D. Adjournment No action was taken by the City Council. The meeting was adjourned at 7:40 a.m. ATTEST: Jennifer M. Ferraiolo City Clerk 2 AGENDA ITEM CITY OF LODI ,. COUNCIL COMMUNICATION TM AGENDA TITLE: Receive Presentation Regarding Fiscal Year 2015/16 Budget MEETING DATE: May 19, 2015 PREPARED BY: Deputy City Manager Baal RECOMMENDED ACTION: Receive presentation regarding Fiscal Year 2015/16 budget. BACKGROUND INFORMATION: The Fiscal Year (FY) 2015/16 budget is built on a number of basic economic assumptions. Staff released the draft Fiscal Year 2015/16 budget document last week. Council is scheduled to consider adoption of the budget in early June. Staff has held 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 5, 2015 focused on general economic issues the City is addressing in the budget process along with General Fund revenue projections. The Shirtsleeve Session on May 12, 2015 addressed the Electric, Water and Wastewater utilities. Today's discussion will focus on the special revenue funds of the City; the Library Fund, the Transit Fund, the Streets Fund, the Fleet Fund, the Community Development Fund and the Parks, Recreation and Cultural Services (PRCS) Fund. FISCAL IMPACT: Revenues, expenditures and increases/decreases to reserves are as noted below: Fund Revenues FY 15/16 Expenditures FY 15/16 Increase/(Decrease) to Reserves Library $1,392,670 $1,388,940 $3,730 Transit $5,302,630 $6,026,830 $724,200 Streets $3,863,210 $4,733,990 $870,780 Fleet $1,897,170 $1,897,170 $0 Community Development $1,459,500 $1,538,410 $78,910 PRCS $5,828,320 $5,822,480 $5,840 JAfja Jordan Ayers Deputy City Manager APPROVED: ephen Schwaba ity Manager 16 Budget City Council Shirtsleeve Session May 19, 2015 Overview J ■ Special Revenue Funds o Library o Transit o Streets o Fleet o Community Development o Parks, Recreation and Cultural Services 2 Library Overview Library Fund Fund Balance Beginning Fund Balance Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) Fund Balance Ending Fund Balance Unreserved Audited Audited 2012-13 2013-14 Actuals Actuals Estimated 2014-15 2014-15 2015-16 Budget Actuals Budget 67,774 54,577 121,248 182,490 236,590 1,428,796 1,451,316 1,416,830 1,413,500 1,392,670 1,441,993 1,323,403 1,391,000 1,359,400 1,388,940 (13,197) 127,913 25,830 54,100 3,730 54,577 182,490 147,078 236,590 240,320 3 Library J ■ Revenues $24,160 lower than FY 2014/15 budget o Fines, fees, grants, donations account for reduction o General Fund transfer $1,349,180 ■ Expenditures $2,060 lower than FY 2014/15 budget 0 Transit Overview Transit Fund Fund Balance (Net Assets) Beginning Fund Balance (Net Assets) Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) Fund Balance (Net Assets) Ending Fund Balance (Net Assets) Unreserved Audited Audited 2012-13 2013-14 Actuals Actuals Estimated 2014-15 2014-15 2015-16 Budget Actuals Budget 3,203,015 3,318,065 3,818,812 4,039,137 5,024,857 6,480,368 4,106,677 7,127,210 7,661,610 5,302,630 6,365,318 3,385,605 7,238,951 6,675,890 6,026,830 115,050 721,072 (111,741) 985,720 (724,200) 3,318,065 4,039,137 3,707,071 5,024,857 4,300,657 5 Transit ■ Revenue $1,824,580 lower than FY 2014/15 budget o $416,000 increase in TDA funds o $542,700 decrease in Prop 1 B o $1.7M decrease in Federal Grants 11 Transit ■ Expenses $1.2M lower than FY 2014/15 budget o Equipment and vehicles - $1.4M lower o Capital projects - $147k higher 7 Transit Capital Projects ■ Bus shelter/stop improvements ($350k) ■ Equipment lifts ($170k) ■ Facility upgrades ($600k) ■ Automatic vehicle locator ($500k) ■ Bus purchases ($1.1 M) Streets Street Fund Fund Balance Beginning Fund Balance Revenues Expenditures Net Difference (Revenues Less Expenditures) Fund Balance Ending Fund Balance Audited Audited Estimated 2012-13 2013-14 2014-15 2014-15 2015-16 Actuals Actuals Budget Actuals Budget 6,513,011 4,964,236 2,005,131 3,987,299 2,968,959 3,707,564 5,402,639 5,066,252 4,526,810 3,863,210 5,256,339 6,379,576 5,937,562 5,545,150 4,733,990 (1,548,775) (976,937) (871,310) (1,018,340) (870,780) 4,964,236 3,987,299 1,133,821 2,968,959 2,098,179 9 Streets ■ Revenues $1.2M lower than FY 2014/15 budget o Measure K - $1.6M lower o Gas tax - $245k lower o TDA - $400k higher o Development fees - $272k higher 10 Streets ■ Expenditures $1.2M lower than FY 2014/15 o Addition of Maintenance Worker 1/11 ($85k) ■ Succession planning o Salaries & benefits - $223k higher o Supplies/materials - $114k higher o Capital Projects - $1.6M lower 11 Street Capital Projects J ■ Signals ($505,000) ■ Sealing/striping ($1.13M) ■ Sidewalk repairs ($56,000) ■ Pavement maintenance ($200,000) ■ Frontage wall repair/maintenance ($50,000) ■ Street improvements ($400,000) ■ Vehicles ($20,000) 12 Fleet Fleet Services Internal Services Fund Fund Balance (Net Assets) Beginning Fund Balance (Net Assets) Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) Fund Balance (Net Assets) Ending Fund Balance (Net Assets) Unreserved Audited Audited Estimated 2012-13 2013-14 2014-15 2014-15 2015-16 Actuals Actuals Budget Actuals Budget 45,566 1,949 1,949 48,971 50,971 1)1576,123 1,775,836 1,820,120 1,796, 240 1,897,170 1,619,740 1,728,814 1,820,120 1,794,240 1,897,170 (43,617) 47,022 - 2,000 - 1,949 48,971 1,949 50,971 50,971 13 Fleet ■ Revenues and expenses $77k higher than FY 2014/15 budget ■ Position recommended o Service Writer o Eliminate Heavy Equipment Mechanic o No net cost 14 i CommunityDevelopment Audited Audited Estimated 2012-13 2013-14 2014-15 2014-15 2015-16 Community Development Fund Actuals Actuals Budget Actuals Budget Fund Balance Beginning Fund Balance Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) Fund Balance Ending Fund Balance Unreserved 293,173 875,801 792,117 1,108,043 1,270,313 1,674,188 1,403,928 1,210,900 1,399,790 1,459,500 1,091,560 1,171,686 1,238,440 1,237,520 1,538,410 582,628 232,242 (27,540) 162,270 (78,910) 875,801 1,108,043 764,577 1,270,313 1,191,403 15 Community Development J ■ Revenues $248,600 higher than FY 2014/15 budget o Permit fees - $127,460 increase o Plan check fees - $51,200 increase o Operating Transfers In - $65,000 increase 16 Community Development J ■ Expenditures $299,970 higher than FY 2014/15 o Salary & benefits - $ 252k increase ■ Impact of Youth Outreach Worker ■ Position Recommended o Building Inspector ($100,200) ■ Additional workload/activity o Transfer out — $32,500 increase 17 i Parks, Rec & Cultural Services 5,653,690 Audited Audited Estimated 5,367,552 2012-13 2013-14 2014-15 2014-15 2015-16 Parks, Recreation & Cultural Svcs Fund Actuals Actuals Budget Actuals Budget Fund Balance 414,081 54,470 Beginning Fund Balance Unreserved (861,843) (508,866) (481,858) (94,785) (95) Revenues Expenditures Net Difference (Revenues Less Expenditures) Fund Balance Ending Fund Balance Unreserved 5,579,622 5,781,633 5,855,840 5,653,690 5,828,320 5,226,645 5,367,552 5,801,370 5,559,000 5,822,480 352,977 414,081 54,470 94,690 5,840 (508,866) (94,785) (427,388) (95) 5,745 18 Parks, Rec & Cultural Services J ■ Revenues $27,520 lower than FY 2014/15 budget o General Fund transfer of $3,655,620 ■ $100,140 higher than prior year ■ 63% of total funding o Other programs showing net decrease in revenue streams ($72,620) ■ LUSD After School Program - $102,060 lower ■ Playgrounds — $16,600 higher 19 Parks, Rec & Cultural Services J ■ Expenditures $21,110 higher than FY 2014/15 budget o Salary &benefits - $211 k lower o Service/supply/utility accounts - $33k higher o Transfer out - $180k higher 20