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HomeMy WebLinkAboutAgenda Report - March 2, 2016 I-01TM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM AGENDA TITLE: Adopt Resolution Approving Fiscal Year 2015/16 Mid -year Budget Adjustments MEETING DATE: March 2, 2016 PREPARED BY: Deputy City Manager RECOMMENDED ACTION. Adopt resolution approving Fiscal Year 2015/16 mid -year budget adjustments. BACKGROUND INFORMATION: Staff is recommending that Council approve the addition of one Electric Utility Rate Analyst position for the Electric Utility and consider approving the addition of one Customer Service Representative in the Internal Services Department. Additionally, staff is recommending adjusting appropriations within the General Fund to address additional salary and benefit costs associated with settled labor agreements and service and supply adjustments; adjusting appropriations within the Parks, Recreation and Cultural Services fund to reflect increased transfers to Parks Capital Outlay fund and salary and benefit costs; adjusting appropriations within the Electric Utility for LED streetlight project costs not yet appropriated and other expense adjustments; and adjusting appropriations within the Self - Insurance funds to reflect increased costs for the General Liability and Worker's Compensation programs. General Fund: The Fiscal Year 2015/16 adopted budget assumed that reserves would be drawn down by $154,280. This level of drawdown was based upon settled labor agreements and was anticipated. After budget adoption, as additional labor agreements were settled, it was anticipated that reserves would be further drawn down to reflect the value of the settled labor agreements. Total General Fund value of the settled labor agreements for 2015/16 is about $1.4 million. Subsequent to budget adoption, appropriation adjustments totaling about $863,000 were approved for settled labor agreements. Based upon mid -year revenue and expenditure estimates, staff is projecting that expenditures will exceed revenues by $1,482,920. Reserves designated for funding settled labor agreements will be used to fund these expenditures. Revenue estimates for the General Fund are $400,730 lower than projected at initial budget adoption. Five key items account for the bulk of the change in estimated revenue: (1) weaker sales tax collections, primarily associated with lower gasoline prices, result in a projected $640,710 reduction in revenue; (2) reduced engineering fees of about $164,000 as a result of anticipated development projects that were delayed, (3) one-time interest payments on SB90 Mandated Cost Reimbursements of $245,000 that were unbudgeted; (4) increased Transient Occupancy Tax receipts of $50,000; and (5) increased franchise APPROVED: 41101 ephen Schwabatu-r, City Manager fees totaling $70,000. Variances in a number of other accounts make up the remainder of the difference in estimated revenue. Total General Fund estimated revenue is $46,307,530. 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 $36.1 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 $605,000 lower than originally budgeted for these accounts, with the bulk of the variance in the sales tax account. General Fund department budgeted and estimated actual costs are shown in the table below. Department 2015/16 Budget 2015/16 Estimate Over(Under) Budget City Attorney $488,650 $519,620 $30,970 City Clerk $547,020 $566,500 $19,480 City Manager $448,100 $496,490 $48,390 Economic Development $486,130 $510,330 $24,200 Fire $11,131,469 $11,189,550 $58,081 Internal Services $3,606,320 $3,728,930 r $122,610 Non Departmental $9,926,380 $9,813,220 ($113,160) Police $18,745,481 $18,791,160 $45,679 Public Works $2,345,820 $2,174,650 ($171,170) Total $47,725,370 $47,790,450 $65,080 Anticipated expenditures exceed appropriations by $65,080 and will require appropriating available reserves. Salary and benefit accounts show an overage of $525,000 related to settled labor agreements that were not included in the original budget due to the timing of the settlement of the agreements. Services and supplies are showing a savings of about $460,000 against budget. Key drivers of this savings are reduced professional services in Police and Public Works ($275,000); reduced building maintenance expenditures ($75,000) and unspent DIVCA funds ($90,000). 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 two significant issues. First, staff is recommending adjusting appropriations to reflect the impact of settled labor agreements. As Council will recall, a number of our labor agreements were settled after the 2015/16 budget numbers were developed. Rather than continually adjust the numbers in the budget document, staff indicated that budget adjustments related to settled labor agreements would be handled in the mid -year budget review process. The impact of settled labor agreements not included in the original budget, or subsequently appropriated, in the General Fund is to increase salary and benefit appropriations by a total of $525,000. Funding for this adjustment comes from 2014/15 General Fund reserves designated for future labor agreements. Second, staff is recommending adjusting appropriations among departments to reflect estimated spending patterns. Overall, total General Fund appropriations are increasing by $65,080. Staff recommended adjustments are reflected in the expenditure estimates table above. New Position Recommended Staff is recommending the addition of one new position: an Electric Utility Resources Analyst for the Electric Utility. Electric Utility is requesting the addition of one Electric Utility Resources Analyst to identify, analyze, and assess market trends and costs and make recommendations regarding short- and long-term gas and energy purchase strategies in accordance with the City Risk Management policies and procedures. Additionally, this position will assist with a number of activities related to resource adequacy, state and federal compliance reporting, contract administration, budget preparation and financial planning. Total annual cost for salary and benefits is $159,966 at entry level. Funding for this position has been included in the Electric Utility financial model. New Position to be Considered Council has indicated a desire to add additional Customer Service Representative staff in the Finance Division of the Internal Services Department. Additional staff would allow for more staff to be placed at the front counter in Finance and assist customers in a timely manner. The expected impact of an additional position is a reduction of the wait time for service in Finance. Annual cost of an additional Customer Service Representative is about $70,000, assuming a family medical plan is selected. Cost for this position would be split among the Electric, Water and Wastewater utilities. The Division has made a number of operational changes to better serve our customers. First, a part-time staff member has been assigned the daily remittance processing duties, thereby freeing permanent staff for front counter duties. Secondly, we have changed our daily balancing process to minimize staff time away from the front counter. Additionally, we have implemented a practice that emphasizes the need to always have two staff members working at the front counter. Other back office activities and responses to phone calls will take a lower priority than the front counter when we are short staffed. All of these changes allow for better coverage of the front counter windows to better enable us to serve our customers in a timely manner. Council is presented with this information for their consideration. Council may desire to test the efficacy of these new measures rather than adding staff at this time. Costs associated with this position have not been included in the mid -year estimates. Parks, Recreation and Community Services (PRCS)/Parks Capital Outlay Staff is recommending increasing appropriations by a total of $134,500. Staff is recommending increasing appropriations by $27,000 related to settled labor agreements. Further, staff is recommending that $107,500 of the unassigned fund balance from 2014/15 of the PRCS Operating Fund be moved to the Parks Capital Outlay fund for future capital projects. This concept is in keeping with the conceptual framework that has been presented to Council regarding use of annual budgetary savings. 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 $3,115,540 and will require an appropriation adjustment. Costs associated with the LED Streetlight project ($1,275,600) were not appropriated at the time the project was awarded. Staff closed the Rate Stabilization Fund to the Operating Fund earlier this year. The accounting posting of this transaction created a budgetary impact that is addressed in the mid- year adjustment. Accordingly, both revenues and expenses are increased by $2,179,960 for this transaction. Finally, expense savings in various accounts help to offset these expense increases, most notably reduced power costs of $166,000. Self -Insurance The Self -Insurance funds include our General Liability and Worker's Compensation programs. Both programs are reflecting higher than budgeted costs as a result of aggressive claims closure practices and additional claims being filed and settled. Additional appropriations of $145,110 in General Liability and $805,160 in Worker's Compensation are required to fund activities through the end of the fiscal year. Sufficient reserves exist in both funds to accommodate these additional appropriations. Summary Staff recommends approval of the one position in Electric Utility and adjustment of appropriations as noted. Staff seeks direction from Council regarding the additional Customer Service Representative position for the Finance Division. FISCAL IMPACT: Addition of the new position will cost approximately $159,966 annually and is funded through the Electric Utility. Funding for the transfers to PRCS Capital Outlay comes from unassigned reserves in the PRCS Operating Fund. Funding for additional expenses in the Self -Insurance funds comes from unassigned reserves in the Self - Insurance Funds. Funding for settled labor agreements in the General Fund and PRCS comes from General Fund reserves. Jordan Ayers Deputy City Manager JA/ja 1 BA# 2. JV# CITY OF LODI APPROPRIATION ADJUSTMENT REQUEST TO: Internal Services Dept. - Budget Division 3. FROM: Jordan Ay ers, Dep City Manager 5. DATE: 312/16 4. DEPARTMENT/DIVISION: 6. REQUEST ADJUSTMENT OF APPROPRIATION AS LISTED BELOW FUND # ORG # OBJ # ACCOUNT TITLE AMOUNT A. SOURCE OF FINANCING 100 32205 General Fund - Fund Balance $ 38.080.00 100 10095000 72359 Non -Departmental Supplies $ 113.160.00 100 10050500 72450 Public Works Supplies $ 171.170.00 100 32205 General Fund - Fund Balance $ 27,000.00 200 20070001 50001 PRCS Transfer In $ 27,000.00 200 32205 PRCS Fund Balance $ 107.500.00 432 43200000 50001 Parks Capital Transfer In $ 107.500.00 502 32205 EU Rate Stabilization Fund Balance $ 2,179,960.00 500 50050 EU Intrafund Transfer In $ 2,179.960.00 501 32205 EU Capital Fund Balance $ 1,275,600.00 660 32205 General Liabilties Fund Balance $ 145,110.00 665 32205 'Workers Com Fund Balance $ 805.160.00 B. USE OF FINANCING 100 10015000 71001 •City Attorney Personnel $ 30,970.00 100 10005000 71001 •City Clerk Personnel $ 19,480.00 100 10010000 71001 City Manager Personnel $ 48,390.00 100 10010102 71001 Economic Development Personnel $ 24.200.00 100 10041000 71001 Fire Personnel $ 58,081.00 100 10020203 71001 Finance Personnel $ 62,280.00 100 10020300 71001 Human Resources Personnel $ 7,830.00 100 10020400 71001 information Systems Personnel $ 52,500.00 100 10031004 71001 Police Personnel $ 45,679.00 200 20070001 71001 PRCS Admin Personnel 6 11,400.00 200 20072001 71001 Parks Personnel $ 4,890.00 200 20073001 71001 •Recreation Personnel $ 10,610.00 200 20070001 76220 PRCS Transfer Out $ 107,500.00 502 76050 EU Intrafund Transfer Out $ 2.179,960.00 501 50199000 77020 IEU Capital Projects $ 1,275,600.00 660 66025000 72990 General Liabilties Special Payments $ 145.110.00 665 66525100 72990 Worker's Com Special Payments $ 805.160.00 7. REQUEST IS MADE TO FUND THE FOLLOWING PROJECT NOT INCLUDED IN THE CURRENT BUDGET 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. 2015116 Mid -year adjustments 11 Council has authorized the appropriation adjustment, complete the following: Meeting Date: 3/2116 Res No: Attach copy of resolution to this form. Department Head Signature: 8. APPROVAL SIGNATURES 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. 2016-31 A RESOLUTION OF THE LODI CITY COUNCIL AMENDING THE CITY OF LODI FINANCIAL PLAN AND BUDGET FOR THE FISCAL YEAR BEGINNING JULY 1, 2015 AND ENDING JUNE 30, 2016 WHEREAS, the City Council adopted a Financial Plan and Budget for Fiscal Year 2015-16 on June 17, 2015; and WHEREAS, the adopted 2015-16 Financial Plan and Budget was prepared in accordance with the City Council's goals, budget assumptions and policies; and WHEREAS, revisions to the adopted 2015-16 Financial Plan and Budget are necessary to address operating changes and expenditure estimates; and WHEREAS, the Electric Utility department requests the addition of one Electric Utility Resources Analyst. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lodi does hereby revise the adopted 2015-16 Financial Plan and Budget as follows: 1. Approve adding one Electric Utility Resources Analyst to the Electric Utility department. 2. Approve using reserves and shifting appropriations within the General Fund departments to reflect additional salary and benefit costs associated with settled labor agreements that were not included in the initial budget adoption reflecting a net increase to appropriations of $65,080. 3. Approve increasing appropriations by $134,500 within the Parks, Recreation and Cultural Services fund to provide funding for future Parks capital projects ($107,500) and operating costs ($27,000). 4. Approve increasing appropriations in the amount of $3,115,540 within the Electric Utility funds to provide for appropriations associated with the LED Streetlight project and closing of the Rate Stabilization Fund. 5. Approve increasing appropriations in the Self Insurance Fund in the amount of $145,110 for General Liability and $805,160 for Worker's Compensation to provide funding for increased costs within these programs. 6. All adjustments are reflected in the attached Appropriation Adjustment Request form. Dated: March 2, 2016 I hereby certify that Resolution No. 2016-31 as passed and adopted by the City Council of the City of Lodi in a regular meeting held March 2, 2016, by the following votes: AYES: COUNCIL MEMBERS — Johnson, Kuehne, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — Mounce ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None ,JE NIFER FERRAIOLO City Clerk 2016-31 1 BA# 2. JV# CITY OF LODI APPROPRIATION ADJUSTMENT REQUEST TO: Internal Services Dept. - Budget Division 3. FROM: Jordan Ay ers, Dep City Manager 5. DATE: 312/16 4. DEPARTMENT/DIVISION: 6. REQUEST ADJUSTMENT OF APPROPRIATION AS LISTED BELOW FUND # ORG # OBJ # ACCOUNT TITLE AMOUNT A. SOURCE OF FINANCING 100 32205 General Fund - Fund Balance $ 38.080.00 100 10095000 72359 Non -Departmental Supplies $ 113.160.00 100 10050500 72450 Public Works Supplies $ 171.170.00 100 32205 General Fund - Fund Balance $ 27,000.00 200 20070001 50001 PRCS Transfer In $ 27,000.00 200 32205 PRCS Fund Balance $ 107.500.00 432 43200000 50001 Parks Capital Transfer In $ 107.500.00 502 32205 EU Rate Stabilization Fund Balance $ 2,179,960.00 500 50050 EU Intrafund Transfer In $ 2,179.960.00 501 32205 EU Capital Fund Balance $ 1,275,600.00 660 32205 General Liabilties Fund Balance $ 145,110.00 665 32205 'Workers Com Fund Balance $ 805.160.00 B. USE OF FINANCING 100 10015000 71001 •City Attorney Personnel $ 30,970.00 100 10005000 71001 •City Clerk Personnel $ 19,480.00 100 10010000 71001 City Manager Personnel $ 48,390.00 100 10010102 71001 Economic Development Personnel $ 24.200.00 100 10041000 71001 Fire Personnel $ 58,081.00 100 10020203 71001 Finance Personnel $ 62,280.00 100 10020300 71001 Human Resources Personnel $ 7,830.00 100 10020400 71001 information Systems Personnel $ 52,500.00 100 10031004 71001 Police Personnel $ 45,679.00 200 20070001 71001 PRCS Admin Personnel 6 11,400.00 200 20072001 71001 Parks Personnel $ 4,890.00 200 20073001 71001 •Recreation Personnel $ 10,610.00 200 20070001 76220 PRCS Transfer Out $ 107,500.00 502 76050 EU Intrafund Transfer Out $ 2.179,960.00 501 50199000 77020 IEU Capital Projects $ 1,275,600.00 660 66025000 72990 General Liabilties Special Payments $ 145.110.00 665 66525100 72990 Worker's Com Special Payments $ 805.160.00 7. REQUEST IS MADE TO FUND THE FOLLOWING PROJECT NOT INCLUDED IN THE CURRENT BUDGET 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. 2015116 Mid -year adjustments 11 Council has authorized the appropriation adjustment, complete the following: Meeting Date: 3/2116 Res No: Attach copy of resolution to this form. Department Head Signature: 8. APPROVAL SIGNATURES 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 [2015/16 Mid -Year Budget Review City Council Meeting March 2, 2016 J [General Fund Overview General Fund Audited Audited Estimated Budget to 2013-14 2014-15 2015-16 2015-16 Est Actuals Actuals Actuals Budget Actuals Variance Fund Balance Beginning Fund Balance Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) 7,559,467 8,950,876 10,692,396 11,842,218 1,149,822 43,428,188 46,181,151 46,708,260 46,307,530 (400,730) 42,036,779 43,289,809 47,725,370 47,790,450 65,080 1,391,409 2,891,342 (1,017,110) (1,482,920) (465,810) Fund Balance Ending Fund Balance Unreserved 8,950,876 11,842,218 9,675,286 10,359,298 684,012 2 [General Fund Reserve Status Total Reserve Allocated to: Catastrophic Reserve Economic Reserve Future labor agreements Unassigned $10,359,298 $3,704,602 $3,704,602 $2,586,734 $363,360 [Departmental Variances Department 2015/16 Budget 2015/16 Estimate Over(Under) Budget City Attorney $488, 650 $519, 620 $30,970 City Clerk $547,020 $566,500 $19,480 City Manager $448,100 $496,490 $48,390 Economic Development $486,130 $510,330 $24,200 Fire $11,131,469 $11,189,550 $58,081 Internal Services $3,606,320 $3,728,930 $122,610 Non Departmental $9,926,380 $9,813,220 ($113,160) Police $18,745,481 $18,791,160 $45,679 Public Works $2,345,820 $2,174,650 ($171,170) Total $47,725,370 $47,790,450 $65,080 [Parks, Recreation & Cultural Services Parks, Recreation & Cultural Svcs Fund Audited Audited Estimated Budget to 2013-14 2014-15 2015-16 2015-16 Est Actuals Actuals Actuals Budget Actuals Variance Fund Balance Beginning Fund Balance Unreserved Revenues Expenditures Net Difference (Revenues Less Expenditures) (508,866) (94,785) (95) 229,264 229,359 5,781,633 5,687,681 5,871,520 5,833,870 (37,650) 5,367,552 5,363,632 5,875,680 6,010,140 134,460 414,081 324,049 (4,160) (176,270) (172,110) Fund Balance Ending Fund Balance Unreserved (94,785) 229,264 (4,255) 52,994 57,249 5 [Electric Utility Electric Utility Enterprise Fund Audited Audited Estimated Budget to 2013-14 2014-15 2015-16 2015-16 Est Actuals Actuals Actuals Budget Actuals Variance Cash Balance Beginning Cash Balance * Revenues Expenditures Net Difference (Revenues Less Expenditures) 6,636,200 5,929,528 6,140,828 65,618,005 70,972,285 76,186,780 66,324,677 70,518,796 78,893,790 (706,672) 453,489 (2,707,010) Cash Balance Ending Cash Balance * 5,929,528 6,383,017 3,433,818 * Local cash, excluding NCPA General Operating Reserve (GOR) * Local cash, excluding NCPA General Operating Reserve (GOR) 6,383,017 242,189 78,579,250 2,392,470 81,694,790 2,801,000 (3,115,540) (408,530) 3,267,477 (166,341) 6 [Self Insurance Self Insurance Internal Services Funds Audited Audited Estimated Budget to 2013-14 2014-15 2015-16 2015-16 Est Actuals Actuals Actuals Budget Actuals Variance Cash Balance Beginning Cash Balance Revenues Expenditures Net Difference (Revenues Less Expenditures) 11,593,365 12,253,198 12,485,398 12,382,662 (102,736) 2,479,175 2,709,197 2,772,860 2,942,720 169,860 1,819,342 2,579,733 2,772,860 3,723,130 950,270 659,833 129,464 (780,410) (780,410) Cash Balance Ending Cash Balance 12,253,198 12,382,662 12,485,398 11,602,252 (883,146) 7 [Water Utility Water Utility Enterprise Fund Audited Audited Estimated Budget to 2013-14 2014-15 2015-16 2015-16 Est Actuals Actuals Actuals Budget Actuals Variance Cash Balance Beginning Cash Balance Revenues Expenditures Net Difference (Revenues Less Expenditures) 9,044,659 7,027,567 7,432,927 6,755,522 (677,405) 14,937,465 15,464,665 14,557,130 14,561,540 4,410 16,954,557 15,736,710 14,922,139 13,509,290 (1,412,849) (2,017,092) (272,045) (365,009) 1,052,250 1,417,259 Cash Balance Ending Cash Balance 7,027,567 6,755,522 7,067,918 7,807,772 739,854 8 [Wastewater Utility Wastewater Utility Enterprise Fund Audited Audited Estimated Budget to 2013-14 2014-15 2015-16 2015-16 Est Actuals Actuals Actuals Budget Actuals Variance Cash Balance Beginning Cash Balance Revenues Expenditures Net Difference (Revenues Less Expenditures) 13,695,513 14,249,392 12,264,212 14,990,584 15,796,825 16,426,930 14,436,705 16,192,282 19,605,680 553,879 (395,457) (3,178,750) Cash Balance Ending Cash Balance 14,249,392 13,853,935 9,085,462 13,853,935 1,589,723 16,404,260 (22,670) 15,095,570 (4,510,110) 1,308,690 4,487,440 15,162,625 6,077,163 9 [Action Requested Adopt resolution adding one Electric Utility Resources Analyst and adjusting appropriations in various funds CQuestions? Jennifer Ferraiolo From: Jennifer Ferraiolo Sent: Wednesday, March 02, 2016 11:09 AM To: 'Mike Lusk' Cc: City Council; Steve Schwabauer; Janice Magdich; Elizabeth Kirkley; Jordan Ayers; Jeff Hood Subject: RE: Blue Sheets for March 2, 2016 meeting Thank you for your email. It was received by the City Council and forwarded to the City Manager's office and all referenced departments for information, response, and/or handling. In addition, your correspondence will be provided as a Blue Sheet item for tonight's Council meeting. Jennifer M. Ferraiolo, CMC City Clerk P.O. Box 3006 Lodi, CA 95241-1910 (209) 333-6702 (209) 333-6807 FAX Original Message From: Mike Lusk [mailto:mclusk@softcom.net] Sent: Wednesday, March 02, 2016 11:02 AM To: City Council; mclusk@softcom.net Subject: Blue Sheets for March 2, 2016 meeting Lodi City Council March 2, 2016 General Comment: It is hard to believe the City of Lodi in presenting this agenda tonight, on one hand is expressing budget over runs and asking for addition funds to balance department budgets and on the other hand wants to spend money it doesn't appear to have on all of the agenda items listed. l•genda Item C-04 No vote on hiring EES Consulting for LEU rate analysis. I believe we have qualified employees within the LEU to understand rates and budgetary needs to balance a budget. This contract is a waste of rate payers money to perform redundant work. Agenda Item I-01 No vote approving Fiscal Year 2015/16 Mid -year Budget Adjustment. There should be a moratorium on new positions and pay increase that are not already a contract obligation. There are only 4 months left until the new budget year of 2016/17 is put out. This would leave time for more public disclosure and review before authorizing any increases to the budget that might effect utility budgets requiring rate increases. Items within this agenda item have either conflicts with other policies or create additional expenses to the City. Examples: New Position Recommended in the LEU -An Electric Utility Resources Analyst. Who is currently doing this work? Why ask for this position and at the rAgenda Item I-021 same time request a contract with EES for Rate Analysis? What effect does this position have on the overall LEU budget when considering rate increases and the larger problem of the Calpers Retirement debt looming over the City. The same questions noted above would apply to the salary upgrades and additional positions in the Finance Dept. Any residual funds regardless of how earmarked in any budget should be held and carried over into the next budget year with only 4 months left until new budget. Whether this be in Parks and Rec or any other Dept. Electric Utility item discussing the appropriations by $3,115,540 should be withheld. If memory is correct, wasn't monies authorized in the previous budget in the amount of 2 million dollars for this project and was part of the argument when justifying the 5 percent rate increase to the LEU rates last year? In addition last August 15, 2015 the lighting project was approved and a loan authorized from Farmers and Merchants Bank to fund this project with the understanding it would be repaid not by the LEU but through energy rebate programs. So now being 3 quarters of the way through this budget year why are all these departments expressing budget over runs requiring this request. They are substantial amounts of money. Is there not appropriate over site in order to make adjustments to operations to prevent these overruns? No vote on PRSC request for One -Eighth Cent Sales Tax Measure. This item expresses a 1/8th sales tax increase would create about 1.3 million dollars for the PRCS. Where does this figure come from. Just within the last few months I have suggested a sales tax increase be considered and earmarked for the Police and Fire Dept. force stabilization and help pay for the looming Calpers retirement debt. At that time I was informed 1/2 percent would only raise about $500 thousand dollars. Far short of the 1.3 million noted in this Item. So why this inflated projection for Parks and Rec? At the time the paid consultant made the noted survey were the participants given the choice of questions asked, such as would you like to pay for much needed street repair or add an item to the parks wish list. Would you like to increase the staffing on the Police Dept. contributing to the overall safety of the Citizens of Lodi or add to the Parks and Rec wish list. Would you like to pay for the looming Calpers retirement debt or add to the Parks and Rec wish list. So and So on. OR were they only asked the singular question of what would you like Lodi to have in relation to the Parks and Rec? If this was the case the percentages of approval could be grossly exaggerated. Since the mid 90's the City has been wanting to build a sports and aquatic facility of some kind and each time the public at large has not supported this item. An example would be the bond issue about 10 years ago that was defeated. realize there are current parks and play ground areas that need attention and should take priority over any new programs. In reference to 2 new parks coming up for construction, I would suggest that they should be paid for by builder impact fees for parks going into these new sub divisions. Pixley Park should be forever forgotten since it is in and industrial area and out of the way and funds for this park should be used elsewhere. The Parks and Rec wish list could use a lot of red lining. Having said all of the above, I realized the Parks and Rec budget is under funded and more money is needed but when faced with the reality of should you pay for groceries and bills or go on vacation, the vacation is the last on the list. f Agenda Item I-031 No vote on adopting resolution approving the new classification and salary range of Events Coordinatior and approving the reclassification of one Senior Administrative Clerk to the Events Coordinator. As stated previously, wait for new budget year for review and impact on overall budget and Calpers debt. [Agenda Item 1-04] No vote on adopting resolution approving the new classification and salary range for Utility Billing Specialist and Approve the reclassification of three Customer Service Representatives to the Position of Utility Billing Specialist. 2 As stated previously, wait for new budget year for review and impact on overall budget and Calpers debt. What impact on utility rates? [Agenda Item I-051No vote on adopt resolution approving amendments to the Job Description and Salary range of City Planner and approving the reclassification on one Senior Planner to City Planner. As stated previously, wait for new budget year for review and impact on overall budget and Calpers debt. fenda Item I-05/No vote on adopt resolution approving the classification, job description and salary range for the position of Electric Utility Resources Analyst. As stated previously, wait for new budget year for review and impact on overall budget and Calpers debt. What impact on utility rates? Respectfully Mike Lusk, Lodi 3