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Home My WebLink AboutMinutes - May 4, 2021 SSLODI CITY COUNCIL SHIRTSLEEVE SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, MAY 4, 2021 An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, May 3, 2021, commencing at 7:00 a.m. Due to the COVID-19 pandemic and pursuant to Executive Order N-29-20, all Council Members participated in the meeting via teleconference and the meeting was available for viewing by the public via livestream at https://www.facebook.com/CityofLodi/ and https://zoom.us/j/93455719476?pwd=NDdhc1E4OEZyYWV3d2pDY1U5SjVZZz09; the opportunity for public comment was available through councilcomments@lodi.gov and https://zoom.us/j/93455719476?pwd=NDdhc1E4OEZyYWV3d2pDY1U5SjVZZz09. Present: Council Member Hothi, Council Member Khan, Council Member Kuehne, Mayor Pro Tempore Chandler, and Mayor Nakanishi Absent: None Also Present: City Manager Schwabauer, City Attorney Magdich, and City Clerk Cusmir Deputy City Manager Andrew Keys provided a PowerPoint presentation regarding the Fiscal Year 2021/22 General Fund budget. Specific topics of discussion included General Fund assumptions, revenues, expenditures, and key inputs; Measure L revenues and expenditures; Vehicle Replacement Funds; IT Network Infrastructure Replacement Funds; five-year forecast assumptions, revenue, expenses, fund balance, and risks/opportunities. Council Member Khan asked about funding for a Community/Youth Center on the eastside, replacement basketball hoops, and a cricket pitch. Mayor Nakanishi and Council Member Kuehne spoke about the repairs needed in the parking lot of Lodi Lake. Deputy City Manager Keys responded to questions asked by Council Member Kuehne regarding the calculation of property taxes, which are rising, and the impact on revenue. Council Member Hothi supported additional funding for Lodi Lake and improvements to the dog parks. Mayor Pro Tempore Chandler urged staff to pay close attention to the capital project needs of the Parks, Recreation, and Cultural Services Department. Mayor Nakanishi made a closing statement highlighting that if Measure L had not been approved, the City would not be in good shape following the COVID-19 Pandemic. City Manager Schwabauer stated that the selection process for the Measure L Citizens’ Oversight Committee will be on the May 19 City Council Meeting agenda, in response to a question asked A.Roll Call by City Clerk B. Topic(s) B-1 Receive Presentation Regarding Fiscal Year 2021/22 General Fund and Measure L Budget and Five-Year General Fund and Measure L Forecast (FIN) 1 by Council Member Khan. There were no public comments on non-agenda items. No action was taken by the City Council. The meeting was adjourned at 8:12 a.m. C.Comments by Public on Non-Agenda Items D.Adjournment ATTEST: Jennifer Cusmir City Clerk 2 Fiscal Year 2021/22 Budget General Fund Presented by Andrew Keys, Deputy City Manager Overview •General Fund Assumptions/Revenues/Expenses Key Inputs Five Year Forecast 2 •Revenue recovery from Covid-19 impacts •Sales Tax estimates 9.1% more than mid-year •Business License Tax 55.7% more than mid-year •Transient Occupancy Tax 32.2% more than mid-year •Expenditures restored for full service delivery •Net increase of 6 positions •Restoration of PARS contribution as required in fiscal policies General Fund Assumptions General Fund Revenues $67,074,130 Revenue Budget FY 2021/22 Tax Revenues 48,649,540$ Revenue from Others 7,095,320$ Operating Transfers In 6,478,410$ Investments & Property Revenue 1,777,140$ Charges for Services 1,716,540$ Fines & Forfeitures 843,100$ Other Revenue 450,580$ Licenses & Permits 63,500$ Total 67,074,130$ General Fund Expenditures $67,074,130 General Fund Expenses by Department Budget FY 2021/22 Police 27,157,950$ Fire 16,392,350$ Non-Departmental 11,695,720$ Internal Services 4,943,050$ Public Works 3,175,320$ City Manager 810,290$ City Attorney 706,690$ City Clerk 704,500$ Economic Development 528,490$ Library (from Measure L) 217,400$ Parks, Rec & Cultural Srvs (from Measure L)742,370$ Total 67,074,130$ •Net increase of 6 full-time positions •Restored transfer for Capital Outlay projects -$435,000 General Fund Key Inputs Job Title Department +/- Legal Secretary City Attorney +1 Management Analyst Internal Services +1 Sr. Customer Service Rep Internal Services +1 Utility Billing Specialist Internal Services -1 Network Administrator Internal Services +1 Code Enforcement Officer Police +1 Police Records Clerk Police +1 Asst/Assoc Civil Engineer Public Works +1 Customer Service Rep IS - Revenue +1 Net Increase +6 •Increased base operational support to Library and Parks, Recreation and Cultural Services •Library: $113,920 funded by Measure L •PRCS: $342,370 funded by Measure L •Restored transfer to Parks Capital Fund •$400,000 funded by Measure L •Restored transfers to Police and Fire Vehicle Replacement Fund •Police: $476,000 •Fire: $750,000 General Fund Key Inputs •Restored Police and Fire Transfer to Equipment Replacement •Police: $291,000 •Fire: $93,000 •Restored transfer to Information Systems Replacement Fund •New Network Refresh Replacement Program: $388,000 •New Staff Desktop Replacement Program: $94,530 General Fund Key Inputs •Revenues: $7,757,500 •Expenditures: $7,757,500 Measure L Measure L Funded Positions FY 2020/21 Budget FY 2021/22 Budget Cost: Police Officers*20 20 $2,940,130 Firefighters 8 8 $1,062,270 Librarian 1 1 $97,820 Street Maintenance Wrk III 0.2 0.2 $3,070 Total Full-Time 29.2 29.2 $4,103,290 $2,043,210 $72,150 $682,560 $113,920 $342,370 $400,000 Measure L Total $7,757,500 * In FY 2020/21 adopted budget, 6 Police Officer Positions were unfunded due to Covid-19 uncertainties; 2 positions were in Measure L. Funding for those positions was restored FY 2020/21 mid-year adoption Public Safety Overtime Part-Time Community Service Officers (2) Supplies, Materials, Training Parks, Recreation & Cultural Srvs Operations Library Operations Parks Capital Vehicle Replacement Fund IT Network Infrastructure Replacement Fund 5 Year Forecast -Assumptions •FY 2021 budget as recommended is projected forward •Includes substantial catchup contributions to PRCS capital, network infrastructure, and new positions •Labor contracts expire at the end of FY 2021/22 or during FY 2022/23 •No assumptions for future contracts are included •Assumes 100% full employment (no vaccancies) 5 Year Forecast -Assumptions Revenue Category FY 21/22 B FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 Property Taxes - Secured 7.3%3.7%3.7%3.7%3.7%3.7% Sales & Use Taxes 7.7%3.5%3.5%3.5%3.5%3.5% Transient Occupancy Tax 32.2%15.0%10.0%5.0%5.0%5.0% Business License Tax 55.7%10.0%10.0%3.5%3.5%3.5% Other Taxes 19.8%3.0%3.0%3.0%3.0%3.0% EU Pilot 0.8%0.5%0.5%0.5%0.5%0.5% Property Tax in Lieu VLF 10.0%3.7%3.7%3.7%3.7%3.7% Transfers In 3.5%1.2%1.2%1.2%1.2%1.2% Property Taxes - CFD 29.4%10%10%10%10%10% Measure L 11.7%2.0%2.0%2.0%2.0%2.0% Other Revenues [1]-53.1%2.0%2.0%2.0%2.0%2.0% Expense Category FY 21/22 B FY 22/23 FY 23/24 FY 24/25 Salaries [2]11.4%3.0%2.0%2.0%2.0%2.0% PERS Normal Cost -0.2%2.0%2.0%2.0%2.0%2.0% PERS UAL 3.9%7.5%7.5%5.0%5.0%5.0% Other Benefits 9.1%2.5%2.5%2.5%2.5%2.5% Operations [1]-20.9%2.0%2.0%2.0%2.0%2.0% Debt [3]-8.7%-0.4%0.0%-0.2%0.1%-9.5% Transfers [4]47.2%0.5%0.5%0.5%0.5%0.5% [1] These line items include the FEMA reimbursements and costs, including the Great Plates Delivered program. [2] Includes all positions added in the FY 21/22 budget remain funded. [3] Does not factor in refunding opportunity for Fiscal year 2021/22. [4] Measure L includes a large transfer to the PRCS fund for capital as opposed to directly paying for the expenses. New IT Network replacement fund increases transfers. 5 Year Forecast -Revenue 5 Year Forecast -Expenses 5 Year Forecast –Fund Balance Risks •COVID •Is there a lingering impact to residents behavior? •Will it come back this summer/fall? •Labor Negotiations •CalPERS UAL or other assumptions changes •Pace of Development •Additional service needs/demands from the public Opportunities •Economic recovery •Revenue enhancement •Debt refinancing 5 Year Forecast – Risks/Opportunities 16 18 Questions?