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HomeMy WebLinkAboutAgenda Report - April 1, 2015 I-01AGENDA ITEM S : =;,°• CITY OF LODI _1 COUNCIL COMMUNICATION TM AGENDA TITLE: Adopt Resolution Approving Fiscal Year 2014/15 Mid -year Budget Adjustments MEETING DATE: April 1, 2015 PREPARED BY: Deputy City Manager RECOMMENDED ACTION: Adopt resolution approving Fiscal Year 2014/15 mid -year budget adjustments. BACKGROUND INFORMATION: Staff is recommending that Council approve the addition of one permanent Administrative Secretary in the Public Works Department and one permanent Electrical Materials Technician in the Electric Utility Department. Additionally, staff is recommending shifting appropriations in the Police Department to address vehicle replacement, provide additional overtime funding in the Fire Department for operating Engine One and increasing appropriations in Public Works for contracted engineering services. Finally, staff is recommending additional appropriations in the Community Development Department related to the Youth Outreach Worker position previously approved, additional appropriations in Parks, Recreation and Cultural Services for funding of the Salas Park lighting project and increased appropriations in the Electric Utility for purchased power. General Fund: Revenue estimates for the General Fund are about $1.5 million higher than projected at initial budget adoption. As Council will recall, on August 6, 2014 the property tax revenue estimates were revised upwards by $250,000 based upon communications received from the San Joaquin County Assessor. Council adjusted the revenue estimates and appropriated these additional funds toward construction of Fire Station 2. Estimated revenues are currently projected to be about $1.2 million above the revised revenue estimates. Four key items account for the bulk of the change in estimated revenue: (1) stronger sales tax collections result in a projected $554,000 increase in revenue; (2) increased engineering fees of about $225,000 as a result of increased development, (3) increased Motor Vehicle In -Lieu fees of about $123,000 as a result of increased activity and (4) increased SB90 Mandated Cost Reimbursements in the amount of $80,000 from the State as a result of the Governor allocating one-time monies to reimburse cities and counties for prior claims that had not been funded. Variances in a number of other accounts make up the remainder of the difference in estimated revenue. Total General Fund estimated revenue is $45,085,030. The primary General Fund revenue sources are property taxes, sales taxes, PILOT, transfers from other funds and Vehicle License Fees. Combined, these five revenue sources are expected to account for approximately $35.1 million or about 78 percent of General Fund revenue. This percentage is consistent with the prior year. Estimated revenue for these five accounts is about $686,000 higher than originally budgeted for these accounts. APPROVED: SteoheK Sc wa au r, City Manager General Fund department budgeted and estimated actual costs are shown in the table below. Department 2014/15 Budget 2014/15 Estimate Over(Under) Budget City Attorney $493,700 $411,026 ($82,674) City Clerk $628,110 $582,990 ($45,120) City Manager $418,920 $392,580 ($26,340) Economic Development $488,280 $492,632 $4,352 Fire $9,975,750 $9,977,552 $1,802 Internal Services $3,372,810 $3,280,760 ($92,050) Non Departmental $9,142,240 1 $9,248,150 $105,910 Police $17,406,930 $17,003,390 ($403,540) Public Works $1,941,900 $1,954,430 $12,530 Total $43,868,640 $43,343,510 ($525,130) Total savings against budget is $525,130 and is attributed to a variety of items. Salary and benefit savings amount to just under $800,000 and is primarily attributable to vacant positions. Services and supplies are showing an overage of about $170,000 against budget. Key drivers of this overage are increased utility costs of about $113,000 and increased professional services of about $100,000. Variances in a number of other accounts make up the remainder of the difference in estimated expenditures. Within the General Fund, mid -year budget adjustments are addressing three significant issues. First, staff is recommending moving $500,000 of salary and benefit savings within the Police Department to the Vehicle Replacement fund. During the recession, as a budgetary balancing measure, contributions to the Vehicle Replacement fund were reduced. As a result, there is insufficient funding in the replacement fund to address the Police Department's replacement needs. With the recommended adjustment, the Police Department is proposing to immediately replace 15 vehicles (10 detective vehicles and five patrol vehicles). Second, staff is recommending an increase in Fire Department overtime funding in the amount of $68,075 for staffing of Engine One, which has been browned out due to a lack of funding and staffing. As Council will recall, Engine One was browned out during the recession as a cost savings measure and has continued to be browned out based upon staffing availability and funding. Staff is recommending that additional funding be provided to bring the engine back on-line more frequently for the balance of the fiscal year. Finally, as a result of the upturn in development, Public Works engineering has contracted out more inspection work than was initially anticipated in the original budget. Public Work anticipates needing an additional $100,000 appropriation to cover the contracted services. Payments from the developers will provide the funding for this cost. Staff recommended adjustments are reflected in the expenditure estimates table above. New Positions Recommended Staff is recommending the addition of two new positions: an Electric Materials Technician for the Electric Utility and an Administrative Secretary for Public Works. Electric Utility is requesting the addition of one Electric Materials Technician to perform skilled mechanical work in the testing, maintenance and repair of electric power system components and tools, along with a variety of duties related to the procurement, receiving, stocking, storage, maintenance and distribution of parts, tools and equipment. The Electric Utility operates a parts warehouse and currently has one Electric Materials Technician position performing these duties. When the incumbent is away from the warehouse on a planned or unplanned basis, staff from other divisions is required to cover the warehouse duties, thereby impacting the efficiency and timeliness of completion of their normal duties. It is necessary to provide a continued presence in the warehouse to ensure the proper support of the line crews and troubleshooters and maintain the integrity of the inventory. The additional position will ensure full coverage of the warehouse and allow for greater efficiency as materials could be picked and staged for the crews to deploy quicker. Total annual cost for salary and benefits is $110,250. Funding for this position has been included in the Electric Utility financial model. Public Works is requesting an Administrative Secretary position to be located at the Municipal Services Center. The Municipal Utility Services division has been without a full time Administrative Secretary since 2011 as the result of a retirement. In the interim, duties had been filled on a part-time basis by sharing the Administrative Secretary assigned to Community Development. With the increase in development activity, the Community Development position is not able to dedicate the amount of time needed to address the workload of the Municipal Utility Services division. The Municipal Utility Services Administrative Secretary will directly supervise the two full-time clerks assigned to the division and be tasked with establishing workflow, filing systems and general organization of the office. The new position will work closely with the Administrative Secretary at City Hall to coordinate contracts and City Council agenda items. Total annual cost for salary and benefits is $82,262. Funding for the position will be provided by the Public Works utilities. Community Development Council approved the addition of a permanent Youth Outreach Worker on February 24, 2015. That action included the necessary appropriations within the Community Development Block Grant fund, but did not include the appropriation adjustments needed within the Community Development fund. Staff is bringing forward the Community Development fund adjustments with this staff report. Parks, Recreation and Community Services (PRCS)/Parks Capital Outlay A component of the funding for the sports lighting project at Salas Park is a contribution from the PRCS operating fund to the Parks Capital Outlay fund. Staff has incorporated this transfer in the mid -year budgetary estimates and included the necessary appropriation adjustments herein. Electric Utility Total expenses are projected to exceed appropriations by $133,230 and will require an appropriation adjustment. Purchased power is expected to be about $400,000 higher than initially budgeted due to increased demand and costs associated with greenhouse gas compliance costs. Increased costs are offset by increased power sales. A variety of other expense account variations net the total expense overage down to $133,230. Staff recommends approval of the two positions and adjustment of appropriations as noted. FISCAL IMPACT: Addition of the two new positions will cost approximately $192,500 annually and is funded through the utility accounts. Additional overtime funding for Engine One is funded by additional revenues within the General Fund. Shifting funding for vehicle replacements within the Police Department from Salary and Benefit savings does not affect net appropriations. Additional contracted engineering costs are funded by developer payments. Jordan Ayers Deputy City Manager JAfja 1. AA# 2. JV# Please provide a description of the project, the total cost of the project, as well as justification for the requested adjustment. If you need more space, use an additional sheet and attach to this form. 1. Shift salary and benefit saving to fund vehicle replacements for Police Department; 2. Provide additional overtime funding to Fire Department to operate Engine One; 3. Provide additional appropriation for contracted engineering services in Public Works; 4. Provide appropriations within Community Development for the full time Youth Outreach Worker; 5. Provide appropriation for PRCS contribution toward Salas Park lighting project; 6. Provide appropriation for increased purchased power costs. If Council has authorized the appropriation adjustment, complete the following: Meeting Date: 4/1/15 R s No: Attach copy of resolution to this form. Department Head Signature: Deputy City Manager/Internal Services Manager Date Submit completed form to the Budget Division with any required documentation. Final approval will be provided in electronic copy format. TO: Internal Services Dept. - Budget Division 3. FROM: lJordan Ayers 15. DATE: 1 4/1/15 4. DEPARTMENT/DIVISION: City Manager Please provide a description of the project, the total cost of the project, as well as justification for the requested adjustment. If you need more space, use an additional sheet and attach to this form. 1. Shift salary and benefit saving to fund vehicle replacements for Police Department; 2. Provide additional overtime funding to Fire Department to operate Engine One; 3. Provide additional appropriation for contracted engineering services in Public Works; 4. Provide appropriations within Community Development for the full time Youth Outreach Worker; 5. Provide appropriation for PRCS contribution toward Salas Park lighting project; 6. Provide appropriation for increased purchased power costs. If Council has authorized the appropriation adjustment, complete the following: Meeting Date: 4/1/15 R s No: Attach copy of resolution to this form. Department Head Signature: Deputy City Manager/Internal Services Manager Date Submit completed form to the Budget Division with any required documentation. Final approval will be provided in electronic copy format. FUND# ORG. UNIT# ACCOUNT# ACCOUNT TITLE AMOUNT A. SOURCE OF 1 1 100 10031004 71001 Regular Employee Sala $ 100,000.00 100 10032000 71001 Regular Employee Sala $ 400,000.00 FINANCING 1 400 40000000 50001 Operating Transfers In $ 500,000.00 2 100 10095000 51031 Sales Tax $ 68,075.00 3 100 10050500 57500 Engineering Fees $ 100,000.00 4 100 10095000 71003 Part-time Sala $ 26,160.00 4 270 27000000 50001 Operating Transfers In $ 26,160.00 5 200 20070001 57702 Donations $ 37,500.00 5 6 432 43200000 50001 Operating Transfers In $ 37,500.00 500 50000000 58800 Domestic Residential $ 133,230.00 B. USE OF 1 1 100 10030001 76220 O e Ing Transfer Out $ 500,000.00 400 40099100 77040 Vehicles $ 500,000.00 FINANCING 2 100 10041000 71002 Overtime $ 68,075.00 3 4 4 5 5 6 100 10050500 72450 Mise Professional Services $ 100,000.00 100 10095000 76220 Operating Transfers Out $ 26,160.00 270 27080000 71101 Part Time Sala $ 26,160.00 200 20070001 76220 Operating Transfers Out $ 37,500.00 432 43299000 77020 Capital Projects $ 37,500.00 500 50060500 72901 Generation $ 133,230.00 Please provide a description of the project, the total cost of the project, as well as justification for the requested adjustment. If you need more space, use an additional sheet and attach to this form. 1. Shift salary and benefit saving to fund vehicle replacements for Police Department; 2. Provide additional overtime funding to Fire Department to operate Engine One; 3. Provide additional appropriation for contracted engineering services in Public Works; 4. Provide appropriations within Community Development for the full time Youth Outreach Worker; 5. Provide appropriation for PRCS contribution toward Salas Park lighting project; 6. Provide appropriation for increased purchased power costs. If Council has authorized the appropriation adjustment, complete the following: Meeting Date: 4/1/15 R s No: Attach copy of resolution to this form. Department Head Signature: Deputy City Manager/Internal Services Manager Date Submit completed form to the Budget Division with any required documentation. Final approval will be provided in electronic copy format. RESOLUTION NO. 2015-39 A RESOLUTION OF THE LODI CITY COUNCIL AMENDING THE CITY OF LODI FINANCIAL PLAN AND BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2014 AND ENDING JUNE 30, 2015 WHEREAS, the City Council adopted a balanced Financial Plan and Budget for Fiscal Year 2014/15 on June 4, 2014; and WHEREAS, the adopted 2014/15 Financial Plan and Budget was prepared in accordance with the City Council's goals, budget assumptions, and policies; and WHEREAS, revisions to the adopted 2014/15 Financial Plan and Budget are necessary to address additional revenues, operating changes, and expenditure estimates; and WHEREAS, the Electric Utility Department requests the addition of one Electric Materials Technician and the Public Works Department requests the addition of one Administrative Secretary. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby revise the adopted 2014/15 Financial Plan and Budget as follows: 1. Approve adding one Electrical Materials Technician to the Electric Utility Department. 2. Approve adding one Administrative Secretary to the Public Works Department. 3. Approve shifting appropriations from Salary and Benefit savings to Operating Transfers Out in the amount of $500,000 within the Police Department and appropriating said funds within the Vehicle and Equipment Replacement Fund. 4. Approve increasing Overtime funding in the amount of $68,075 within the Fire Department to provide additional funding to operate Engine One. 5. Approve increasing Professional Services in the amount of $100,000 within the Public Works Department to fund additional contracted engineering services. 6. Approve increasing appropriations in the amount of $26,160 within the Community Development Fund associated with the Youth Outreach Worker. 7. Approve increasing Operating Transfers Out in the amount of $37,500 within the Parks, Recreation and Cultural Services Fund to provide partial funding for the Salas Park Lighting Replacement Project. 8. Approve increasing appropriations in the amount of $133,230 within the Electric Utility Fund to provide for increased purchased power costs. Dated: April 1, 2015 I hereby certify that Resolution No. 2015-39 as passed and adopted by the City Council of the City of Lodi in a regular meeting held April 1, 2015, by the following votes: AYES: COUNCIL MEMBERS — Chandler, Kuehne, Nakanishi, and Mayor Johnson NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — Mounce ABSTAIN: COUNCIL MEMBERS — None J NIFER FERRAIOLO Cify Clerk 2015-39 1. AA# 2. JV# Please provide a description of the project, the total cost of the project, as well as justification for the requested adjustment If you need more space, use an additional sheet and attach to this form. Shift salary and benefit saving to fund vehicle replacements for Police Department; 2. Provide additional overtime funding to e Department to operate Engine One; 3. Provide additional appropriation for contracted engineering services in Public Worcs; Provide appropriations within Community Development for the full time Youth Outreach Worker; 5. Provide appropriation for CS contribution toward Sales Park lighting project; S. Provide appropriation for increased purchased power costs. If Council has authorized the appropriation adjustment, complete the following: Date: 4/1115 ft s NO: Attach copy of resolution to this form. ant Head Signature: ,rte,, -,�L rypr�r .� r�n• �x Deputy City ManagerAntemal Services Manager Date Submit completed form to the Budget Division with any required documentation. Final approval will be provided in electronic copy formal. FUND# ORG. UNIT# ACCOUNT# ACCOUNT TITLE AMOUNT A. 1 100 10031004 71001 R29ular Employee Sale $ 100,000.00 SOURCE OF FINANCING 1 1 100 10032000 71001 Regular Employee Sala $ 400,000.00 400 40000000 50001 02erating Transfers In $ 500,000.00 2 3 4 100 10095000 51031 Sales Tax $ 68.075.00 100 10050500 57500 Engineering Fees $ 100000.00 100 10095000 71003 Part-time Sala $ 26160.00 4 5 5 270 27000000 50001 O ting Transfers In $ 26160.00 200 20070001 57702 Donations $ 37,500.00 432 43200000 50001 operating Transfers In $ 37 500.00 6 500 50000000 58800 Domestic Residential $ 133,230.00 B. 1 100 10030001 76220 Operating Transfer Out $ 500,000.00 USE OF 1 400 40099100 77040 Vehicles $ 500 000.00 FINANCING 2 3 4 100 10041000 71002 Overtime $ 68.075.00 100 10050500 72450 Mlsc Professional Services $ 100 000.00 100 10095000 76220 Operating; Transfers Out $ 26160.00 4 5 270 27060000 71101 Part Time Sala $ 28160.00 200 20070001 76220 Operating Transfers Out $ 37,500.00 5 432 43299000 77020 Capital Pro acts $ 37,500.00 6 500 50060500 72901 Generation $ 133.230.00 Please provide a description of the project, the total cost of the project, as well as justification for the requested adjustment If you need more space, use an additional sheet and attach to this form. Shift salary and benefit saving to fund vehicle replacements for Police Department; 2. Provide additional overtime funding to e Department to operate Engine One; 3. Provide additional appropriation for contracted engineering services in Public Worcs; Provide appropriations within Community Development for the full time Youth Outreach Worker; 5. Provide appropriation for CS contribution toward Sales Park lighting project; S. Provide appropriation for increased purchased power costs. If Council has authorized the appropriation adjustment, complete the following: Date: 4/1115 ft s NO: Attach copy of resolution to this form. ant Head Signature: ,rte,, -,�L rypr�r .� r�n• �x Deputy City ManagerAntemal Services Manager Date Submit completed form to the Budget Division with any required documentation. Final approval will be provided in electronic copy formal. X14/15 Mid -Year Budget eview City Council Meeting April 1, 2015 [General Fund Overview 2 Audited Audited Estimated Budget to 2012-13 2013-14 2014-15 2014-15 Est Actuals Actuals Actuals Budget Actuals Variance General Fund Fund Balance Beginning Fund Balance Unreserved 6,164,685 7,559,467 7,520,074 8,950,876 1,430,802 Revenues 41,380,988 43,428,188 43,825,560 45,085,030 1,259,470 Expenditures 39,986,206 42,036,779 43,868,640 43,343,510 (525,130) Net Difference (Revenues Less Expenditures) 1,394,782 1,391,409 (43,080) 1,741,520 1,784,600 Fund Balance Ending Fund Balance Unreserved 7,559,467 8,950,876 7,476,994 10,692,396 3,215,402 2 [Departmental Variances Department 2014/15 Budget 2014/15 Estimate Over(Under) Budget City Attorney $493,700 $411,026 ($82..674) City Clerk $628,110 $582,990 ($45.,120) City Manager $418, 920 $392,580 ($26, 340) Economic Development $488,280 $492,632 $4,352 Fire $9,.975.,750 $9.,977.,552 $1,802 Internal Services $3,372,810 $3,280,760 ($92,050) Non Departmental $9,142,240 $9,248,150 $105,910 Police $17.,406.,930 $17,003.390 ($403.,540) Public Works $1,941,900 $1,954,430 $12,530 ,Total 1$43,.868.,640 $43.,343.,510 ($525,.130)1 [Water Utility Water Utility Enterprise Fund Cash Balance Beginning Cash Balance Revenues Expenditures Net Difference (Revenues Less Expenditures) Cash Balance Ending Cash Balance Audited Audited Estimated Budget to 2012-13 2013-14 2014-15 2014-15 Est Actuals Actuals Actuals Budget Actuals Variance 12,465,350 9,044,659 7,464,847 7,027,567 (437,280) 14,894,809 14,937,465 14,169,450 14,161,870 (7,580) 18,315,500 16,954,557 17,780,464 13,756,510 (4,023,954) (3,420,691) (2,017,092) (3,611,014) 405,360 4,016,374 9,044,659 7,027,567 3,853,833 7,432,927 3,579,094 0 [Wastewater Utility 5 Audited Audited Estimated Budget to 2012-13 2013-14 2014-15 2014-15 Est Actuals Actuals Actuals Budget Actuals Variance Wastewater Utility Enterprise Fund Cash Balance Beginning Cash Balance 12,513,936 13,695,513 12,226,580 14,249,392 2,022,812 Revenues 14,346,216 14,990,584 14,878,980 15,052,420 173,440 Expenditures 13,164,639 14,436,705 24,283,073 17,037,600 (7,245,473) Net Difference (Revenues Less Expenditures) 1,181,577 553,879 (9,404,093) (1,985,180) 7,418,913 Cash Balance Ending Cash Balance 13,695,513 14,249,392 2,822,487 12,264,212 9,441,725 5 [Electric Utility * Local cash, excluding NCPA General Operating Reserve (GOR) 0 Audited Audited Estimated Budget to 2012-13 2013-14 2014-15 2014-15 Est Actuals Actuals Actuals Budget Actuals Variance Electric Utility Enterprise Fund Cash Balance Beginning Cash Balance * 2,143,190 6,636,200 6,351,191 5,929,528 (421,663) Revenues 71,679,622 65,618,005 68,217,050 72,005,150 3,788,100 Expenditures 67,186,612 66,324,677 71,660,620 71,793,850 133,230 Net Difference (Revenues Less Expenditures) 4,493,010 (706,672) (3,443,570) 211,300 3,654,870 Cash Balance Ending Cash Balance * 6,636,200 5,929,528 2,907,621 6,140,828 3,233,207 * Local cash, excluding NCPA General Operating Reserve (GOR) 0 [Community Development Community Development Fund Fund Balance Beginning Fund Balance Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) Fund Balance Ending Fund Balance Unreserved Audited Audited Estimated Budget to 2012-13 2013-14 2014-15 2014-15 Est Actuals Actuals Actuals Budget Actuals Variance 293,173 875,801 792,117 1,108,043 315,926 1,674,188 1,403,928 1,210,900 1,399,790 188,890 1,091,560 1,171,686 1,238,440 1,237,520 (920) 582,628 232,242 (27,540) 162,270 189,810 875,801 1,108,043 764,577 1,270,313 505,736 7 [Parks, Recreation & Cultural Services Parks, Recreation & Cultural Svcs Fund Fund Balance Beginning Fund Balance Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) Fund Balance Ending Fund Balance Unreserved Audited Audited Estimated Budget to 2012-13 2013-14 2014-15 2014-15 Est Actuals Actuals Actuals Budget Actuals Variance (861,843) (508,866) (481,858) (94,785) 387,073 5,579,622 5,781,633 5,855,840 5,653,690 (202,150) 5,226,645 5,367,552 5,801,370 5,559,000 (242,370) 352,977 414,081 54,470 94,690 40,220 (508,866) (94,785) (427,388) (95) 427,293 M [Action Requested Adopt resolution adding one Electrical Materials Technician, one Administrative Secretary and adjusting appropriations 9 questions?