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HomeMy WebLinkAboutMinutes - May 24, 2016 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, MAY 24, 2016 A. Roll Call by City Clerk An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, May 24, 2016, commencing at 7:00 a.m. Present: Council Member Johnson, Council Member Nakanishi, Mayor Pro Tempore Kuehne, and Mayor Chandler Absent: Council Member Mounce Also Present: City Manager Schwabauer, City Attorney Magdich, and Deputy City Clerk Farris B. Topic(s) B-1 Receive Presentation Regarding Fiscal Year 2016/17 Budget (CM) Deputy City Manager Jordan Ayers provided a PowerPoint presentation regarding the Fiscal Year 2016/17 budget. Specific topics of discussion included overview of Special Revenue funds; Library overview; Library revenues and expenditures; Transit overview; Transit revenue; Transit expenses; Transit capital projects; Streets overview; Streets revenues; Streets expenditures; Street capital projects; Fleet overview; Fleet revenues and expenses; Community Development overview; Community Development revenues; Community Development expenditures; Parks, Recreation and Cultural Services (PRCS) overview; PRCS revenues; and PRCS expenditures. Mr. Ayers stated the draft Fiscal Year 2016/17 budget was distributed on May 12, 2016, and is available on the City's website. In response to Council Member Nakanishi, Mr. Ayers stated there is no dedicated revenue fund for the Library. City Manager Schwabauer clarified that there is no special tax or special revenue fund for the Library; it is funded from the General Fund. Council Member Nakanishi inquired if this is the case every year, which Mr. Schwabauer confirmed. Council Member Johnson reported that the City of Stockton may be placing a quarter -cent sales tax measure on the next ballot to fund its Library and recreational services. In response to Council Member Johnson's inquiry about the $700,000 budgeted for bus shelter improvements, Transportation Manager Paula Fernandez explained that the City usually spends about $350,000 each year on shelter improvements, but more design work was required last year, so construction was not completed; the City will be doubling up on construction this year. Ms. Fernandez stated that during this phase of improvements, the City will be adding advertising panels on seven shelters, which will generate revenue. In response to Mr. Schwabauer, Ms. Fernandez confirmed that the upcoming project will also encompass Americans with Disabilities Act (ADA) improvements, including path of travel improvements, corner curb ramps, and sidewalk improvements. In response to Mayor Pro Tempore Kuehne, Ms. Fernandez explained the number of bus stops that are improved varies from year to year, but there are approximately 30 bus stops included in the project that is currently out to bid. Mr. Schwabauer further responded that the cost of improving a bus stop could range from $50,000 to $75,000 if catch basin and curb improvements are included, and that while ADA improvements are the main focus, Cherokee Lane is greatly benefiting from this project. In response to Council Member Nakanishi, Ms. Fernandez stated the annual operating budget 1 includes approximately $1.2 million in federal funds, $1 million in State funds, and $300,000 fare revenue; there is additional revenue from advertising and solar sources; and there is State and federal capital funding in the amount of $600,000 for buses. Mr. Ayers clarified that the current Transit budget includes $6.1 million in a combination of State and federal funds. In response to Council Member Nakanishi, Mr. Ayers responded he would provide the annual cost to the City for the increase in the minimum wage. He further responded that the minimum wage increase affects only part-time employees; and that PRCS has the largest part-time staff, although the Public Works Department also has a significant number of part-time employees. Mr. Schwabauer stated the City will absorb most of the cost of the increase in reduced services; the Library and PRCS will reduce the number of part-time hours. Mr. Ayers confirmed fewer hours of part-time service are included in the current budget. In response to Council Member Nakanishi, Mr. Ayers stated the Fleet Policy dictates the standard useful life of the different types of vehicles in miles and years, and he would research the policy for Police vehicles. Council Member Johnson observed it may be time to take a hard look at part-time employee costs versus contracting out services, as the situation is not improving. C. Comments by Public on Non -Agenda Items None. D. Adjournment No action was taken by the City Council. The meeting was adjourned at 7:23 a.m. ATTEST: Pamela M. Farris Deputy City Clerk 2 TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM AGENDA TITLE: Receive Presentation Regarding Fiscal Year 2016/17 Budget MEETING DATE: May 24, 2016 PREPARED BY: Deputy City Manager RECOMMENDED ACTION Receive presentation regarding Fiscal Year 2016/17 budget. BACKGROUND INFORMATION. The Fiscal Year (FY) 2016/17 budget is built on a number of basic economic assumptions. Staff released the draft Fiscal Year 2016/17 budget document on May 12, 2016. 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 April 26, 2016 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, 2016 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 16/17 Expenditures FY 16/17 Increase/(Decrease) to Reserves Library $1,427,100 $1,362,400 $64,700 Transit $6,524,840 $5,894,270 $630,570 Streets $14,834,980 $3,887,610 $10,947,370 Fleet $1,886,930 $1,886,930 $0 Community Development $2,368,760 $2,192,120 $176,640 PRCS $6,241,400 $6,292,640 ($51,240) JA/ja APPROVED: Jordan Ayers Deputy City Manager ephen Schw , City Manager [Fiscal Year 2016/17 Budget1 Presentation City Council Shirtsleeve Session May 24, 2016 [Overview Special Revenue Funds o Library o Transit o Streets o Fleet o Community Development o Parks, Recreation and Cultural Services [Library Overview Statement of Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2017 With Audited Actuals for FY 2013-14 and FY 2014-15 and Comparative Budget FY 2015-16 Library Fund Fund Balance Beginning Fund Balance Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) Fund Balance Ending Fund Balance Unreserved Audited Audited Estimated 2013-14 2014-15 2015-16 2015-16 2016-17 Actuals Actuals Budget Actuals Budget 54,577 182,490 236,590 264,822 457,902 1,451,316 1,433,747 1,400,561 1,433,140 1,427,100 1,323,403 1,351,415 1,396,831 1,240,060 1,362,400 127,913 82,332 3,730 193,080 64,700 182,490 264,822 240,320 457,902 522,602 3 [Library Revenues $26,539 higher than FY 2015/16 budget o General Fund transfer increase - $24,560 o General Fund transfer $1,373,740 96% of total funding Expenditures $34,431 lower than FY 2015/16 budget o Eliminate Library Assistant position ($74,320) [Transit Overview Statement of Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2017 With Audited Actuals for FY 2013-14 and FY 2014-15 and Comparative Budget FY 2015-16 Transit Fund Fund Balance (Net Assets) Beginning Fund Balance (Net Assets) Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) Audited Audited Estimated 2013-14 2014-15 2015-16 2015-16 2016-17 Actuals Actuals Budget Actuals Budget 3,318,065 4,039,137 5,024,857 6,473,334 8,603,244 4,106,677 6,567,876 5,302,630 7,516,270 6,524,840 3,385,605 4,133,679 6,506,424 5,386,360 5,894,270 721,072 2,434,197 (1,203,794) 2,129,910 630,570 Fund Balance (Net Assets) Ending Fund Balance (Net Assets) Unreserved 4,039,137 6,473,334 3,821,063 8,603,244 9,233,814 5 [Transit Revenue $1,222,210 higher than FY 2015/16 budget o $400,000 increase in TDA funds o $829,000 increase in Federal Grants [Transit Expenses $612k lower than FY 2015/16 budget o Salary & benefits - $33,680 higher o Supplies/services - $75,750 higher o Capital projects - $721,584 lower [Transit Capital Projects Bus shelter/stop improvements ($700k) Facility upgrades ($200k) CNG replacement equip ($300k) Security upgrades ($129k) Fleet facility equip ($100k) Bus purchases ($1.IM) [Streets Statement of Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2017 With Audited Actuals for FY 2013-14 and FY 2014-15 and Comparative Budget FY 2015-16 Street Fund Fund Balance Audited Audited Estimated 2013-14 2014-15 2015-16 2015-16 2016-17 Actuals Actuals Budget Actuals Budget Beginning Fund Balance 4,964,236 3,987,299 2,968,959 3,192,312 2,535,772 Revenues Expenditures 5,402,639 5,046,221 20,908,392 8,408,010 14,834,980 6,379,576 5,841,208 22,395,164 9,064,550 3,887,610 Net Difference (Revenues Less Expenditures) (976,937) (794,987) (1,486,772) (656,540) 10,947,370 Fund Balance Ending Fund Balance 3,987,299 3,192,312 1,482,187 2,535,772 13,483,142 9 [Streets Revenues$6.IM lower than FY 2015/16 budget o Gas tax - $41 k lower o TDA - $200k lower Development fees - $324k higher o Federal grants - $6.2M lower [Streets Expenditures $18.5M lower than FY 2015/16 o Salaries & benefits - $86k higher o Supplies/services - $234k higher o Capital projects - $18.8M lower [Street Capital Projects Signals ($170,000) Sealing/striping ($70,000) Sidewalk repairs ($100,000) Pavement maintenance ($100,000) Frontage wall repair/maintenance ($20,000) Street improvements ($950,000) [Fleet Statement of Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2017 With Audited Actuals for FY 2013-14 and FY 2014-15 and Comparative Budget FY 2015-16 Fleet Services Internal Services Fund Fund Balance (Net Assets) Beginning Fund Balance (Net Assets) Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) Audited Audited Estimated 2013-14 2014-15 2015-16 2015-16 2016-17 Actuals Actuals Budget Actuals Budget 1,949 48,971 48,971 123,676 158,536 1,775,836 1,639,276 1,897,170 1,897,170 1,886,930 1,728,814 1,564,571 1,897,170 1,862,310 1,886,930 47,022 74,705 34,860 Fund Balance (Net Assets) Ending Fund Balance (Net Assets) Unreserved 48,971 123,676 48,971 158,536 158,536 13 [Fleet Revenues and expenses $10,240 lower than FY 2015/16 budget o Salary/benefit increases offset by supply/services decreases [Community Development Statement of Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2017 With Audited Actuals for FY 2013-14 and FY 2014-15 and Comparative Budget FY 2015-16 Community Development Fund Fund Balance Beginning Fund Balance Unreserved Audited Audited Estimated 2013-14 2014-15 2015-16 2015-16 2016-17 Actuals Actuals Budget Actuals Budget 875,801 1,108,043 1,270,313 1,474,880 1,812,860 Revenues 1,403,928 1,595,654 1,859,500 2,003,930 2,368,760 Expenditures 1,171,686 1,228,817 2,058,410 1,665,950 2,192,120 Net Difference (Revenues Less Expenditures) 232,242 366,837 (198,910) 337,980 176,640 Fund Balance Ending Fund Balance Unreserved 1,108,043 1,474,880 1,071,403 1,812,860 1,989,500 15 [Community Development Revenues $509,260 higher than FY 2015/16 budget o Permit fees - $447,700 increase o Fire fees - $116,400 increase o Grant reimbursements - $60,000 decrease [Community Development Expenditures $133,710 higher than FY 2015/16 o Salary & benefits - $161,100 increase o Supplies/services - $6,390 decrease o Transfer out — $14,000 decrease [Parks, Rec & Cultural Services Statement of Estimated Changes in Fund Balance For the Fiscal Year Ended June 30, 2017 With Audited Actuals for FY 2013-14 and FY 2014-15 and Comparative Budget FY 2015-16 Parks, Recreation & Cultural Svcs Fund Fund Balance Beginning Fund Balance Unreserved (508,866) (94,785) (95) 229,264 52,994 Audited Audited Estimated 2013-14 2014-15 2015-16 2015-16 2016-17 Actuals Actuals Budget Actuals Budget Revenues Expenditures 5,781,633 5,367,552 5,687,681 5,363,632 5,871,520 6,010,180 5,833,870 6,010,140 6,241,400 6,292,640 Net Difference (Revenues Less Expenditures) 414,081 324,049 (138,660) (176,270) (51,240) Fund Balance Ending Fund Balance Unreserved (94,785) 229,264 (138,755) 52,994 1,754 18 [Parks, Rec & Cultural Services Revenues $369,880 higher than FY 2015/16 budget o General Fund transfer of $3,949,800 $250,980 higher than prior year 63% of total funding o Other programs showing net increase in revenue streams ($118,900) LUSD After School Program - $44,000 higher Hutchins rent — $45,000 higher [Parks, Rec & Cultural Services Expenditures $282,460 higher than FY 2015/16 budget o Salary & benefits - $235,150 higher o Eliminate (1) Park Maintenance Worker 1/11 ($82,340) o Transfer out - $66,320 higher CQuestions?