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HomeMy WebLinkAboutAgenda Report - February 16, 1994 (48)I� CIN OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Communications (January 27,1994 through February 9.1994) MEETING DATE: February 16. 1994 PREPARED BY: City Clerk RECOMMENDED ACTION: Receive letter from Mrs. Helen Zonkel requesting repair of sidewalks on South Fairmont Avenue and refer the matter to staff. BACKGROUND INFORMATION: The City Clerk's office Is In receipt of a letter from Mrs. Helen Zonkel, Lodi resident (attached, marked Exhil* A), requesting repair of the sidewalks on South Fairmont Avenue (west side of 800 Blokes. It Is recommended that the City Council refer this matter to staff and bring back a report to the City Council. FUNDING: JMP Attachment None required. nnifer M. emn City Clerk APPROVED: THOMAS A. PETERSON City Managw cc.1 C TO WROM IT MAY CONCRRN: .1A1112.014 Ms Office Nyj_�ERT_ I know the City Council wants to do everything► possible to Protect and heln the citizens of Dodi. There is a problem which I hope can be corrected as soon as Possible. There are two city -lots with homes on them on South Fairmont Street (west side of POO block) that do not have any sidewalks in front of them. I have heard there is an a ntinua ted law which states that this has to be handled by the owner of the property, but this is ridiculous when it hinders citizens. Within that block are two Nursing Hames and many doctor offices. Friends like t^ push their loved ones around this block in. wheel- chairs. When it rains the wheels sink into mud and when dry it is very bumpy. The only alternative is to po out in the street which is very danverous. I joist cant t'elieve Lodi has such a situation ?nd nothing has been done about it. An answer and attention to this matter will re arnreciated. Sincerely, Mrs. Helen ?.onke, 16-n SaratoPa Lodi, CA Q524n CIN COUNCIL MEETING FEBRUARY 16,1994 ABC LICENSES City Clerk Perrin read the following ABC License: Payless thug Stores Ncrthwest. Inc., 1950 EI Camino Real, plus all locations throughout the State, including 520 West Lodi Avenue. Lodi, Off Sate General and Off Sale Beer and Wine License. FILE NO. CC -7(f) 29 OF CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: Communications (January 27, 1994 through February 9, 1994) MEETING DATE: February 16,1994 PREPARED BY: City Clerk RECOMMENDED ACTION: No action - information only. BACKGROUND INFORMATION: A copy of an application for Alcoholic Beverage Control License has been received from the State of California Department of Alcoholic Beverage Control for the following: a) Payless Drug Stores Northwest, Inc., 1950 EI Camino Real, plus all locations throughout the State, including 520 West Lodi Avenue. Lodi. Off Sale General and Off Sale Beer and Wine License 520 West Lodi Avenue is in a C-1, Neighborhood Commercial, zone. This is an appropriate zoning for this type of Alcoholic Beverage Control License. FUNDING: None required. 1 iter M. P din Ci y Clerk ((( JMP Attachment APPROVED --- _ -- — ��• THOMAS A PETERSON MctiUfa 0400, City Manager CC -1 mw an fool" ArruunON FORALCOHOLIC MRRA09 UCUM(f) DeporAnad of Akohalk 8sves Co" 1901eroodway SAN FRANCISCO Sacramento. Card. 93818 . «e..l n .....+.. «....+. The undersigned hereby applies la licenses daxribed as follows, 1 2. NAME(S) OF APPLICANT(S) PAY LESS DRUG STORES NORTHWEST, INC. 4. None of Business S. location of Business-lolwn ber nnA • /...e 1950 EL CAMINO REAL PLUS ALL LOCATIONS THROUGHOUT THE STATE M hW write Above TAU Ulee-iw Noodewewe ON" 1: W"(S)-OE UCENSE(S) FU NO. 21-286983 z r- RECEIPT NO. OFF'SALE 'GENERAL • I 19AAA-31: OFF SALE $116"a Appledandoe ERestive Dates WO I Effective Dater 3. TYPE(S) OF TRANSACTIONS) FEE LIC. TYPI f 24071.1 TRF (1) 1270.00 21 24071.1 TRIP (78) 44460.00 21 24071.1 TRF (1331 17622.00 20 Clty and zip Code CownM I 1 i I --- REDWOOD CITY CA 94063 SAN MATED TOTAL l 63.552.00 0 Ir Premises Ltcensea, 7. Aro Premises Inside Show Type of license 20 and 21 City Limits? S. Mailing Address Of different from 51 -Number and Strew Re -et ie.I 21nn9 MArchAll qt -Castro Valley, CA SAR46 9. Have yaw ever been convicted of a felo"? 10. Have you ever violated any of the provisions of the Akoholk NO (P-12 C9RPORATIf7N) oew� ro *onto? Act a regwkKem of the Oeportment pen e Act I1. Explain a "YES" answer to items 9 at 10 on on attachment which shall be deemed port of this application. 12. Applicant agree► (o) that any manager employed in on -sale licensed premises will hove all the q.wl:locations of a IiceMN. end (b) that he will not violate or cause or permit to be violated any of the provisions of the Alcoholic Beverage Control Act. 13. STATE OF CALIFORNIA Cowmy of --__-ALAMEDA---------------------- Deft --12,ta"9,i......... ----- 1NNw r••.nr M t1«Mr. .... e-ovoo -A.w . *W. Nr•w MN—. ar..tia W a•ra •11 .. - .u. ..N..w. « w .1 • . 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STATE OF CALIFORNIA Cowmy of ------ AlamCda--------------------- Dole ------- 12!.2319.3.-._._..- w•... .....tit .r .«M.. a«•. .«.a- —.... .ien.M• a..••.. ►M.—. _.:A.. •N w 111 ." •a w 1 _ . ... •a.- •. w ....«.Y ..._.w. . M1.e4 .e W. two"" ..M.I« e..li..M.•, Mr ea..w"N •. Me .... -M.1« .,.A.....w M .•. ....11' .11 1... M •'.•ell, -NN e.W.e..M N .."e...r eM - .... ole .....I.N k~0 4..M.4 s I.- W N .--#. .w M w e.N..w W « 1.....e. -&....e M w •M« ....•e. M -.. M.•..«.r I«.R •I .•.11 MMI« i. •/NMN er W. tl-ee..r..31 .1... ..o ti...1.. .Npoo~ « NNM.d -M.1M .. M •..N N .eat./. w N.••e.• M . •e.. r .e•.•..M. .a..rN -.. ..«. 1A.. —.1. M•. N«MM w a.. w .%"► •M "....1« .N•'..•w. n AIN -.► we a.M•..... N M ee.. N N.I««Me N M IN M. ..N."• .t I.N.•e•.• « ti 4/...e « ...M. M. ...e•.« e1 W. M. "M0« ePP&..M. -.. b. -..1.a..M ►e .•w. w 1A N --.t.1 nt t:•.w...rd 17 C ... L..00hl et 2.1..na..t.1 IB- tie.nv Numb.rhl Payless Drugstores21-286983 Northwest, Inc. John Young, ss` ecretary 19. location Nvmber and Street City and Zip Code County 1950 EL CAMINO REAL REDWOOD CITY CA 94063 Do Not Write Below This Line. For Department Use (hely Attacked! ❑ Recorded notice. C Fidvciory popes. Ej -----------------------------------------------• -COPIES mAtifo ........ 91/_14/93 Renewal: Fee of ........... Paid at--- --- - -•--- --- ORce o.1.. ............... Receipt No ..................... J 0 30 / ,tel aa► LESS :2US :7GAES LO:T,.eit :rt r 7. rr• pT/; ,� :1 3:STi:CT/i:T♦ Cu. :QNT STOCASON O:STq:CT OFF:CE ai 36 J&%U&ST 10, 19,44. TTOA F:a! 3TITuS �:ST :EO OO1G-04.11 -'ST C2vS saws 647 10:! :SIV! CODS A:22E:S ?1 160174 aC1 le S3(j1 0411519) i1C,701 i F:r Li15 OtJG STDtES +.04TwreS1 :N: 272.) •.:Twpa: 1.4! Ce,4Ei CA ,45107 21 101032 ACT 29 3'002 06/2./41 93:7-31 Far LESS DOUG STOA!S NDgtnw:S1 :NC SZC . LC2: a9E L021 CA 91Z4O ZO 205050 AZT 20 2 -OS 11/13/4s7 91;.7:1 Dar LESS CRUS STC2!S R.7±Tw,jEST :v: 1317 7atr=CO 6LT: LOS !Z%2S� CA 93635 21 1S3613 ACT 20 3'0C3 07I)1l92 ;30731 Oat LESS :206 ST02!S 1.04T.WIST :wC 93: N w::N R;%?!CA CA 05336 21 200172 act 20 2-24 046/13/03 0346701 L oil LISS :.RVG $102!1 %:270wls? :NC 31462 G ST w3gC!3 Ca 753.0 _ 21 276634 ACT 29 5302 1110./92 030741 FAT L;3SS 0005 ST:a!S NOZTwrEST I%C 164.3 4CnEN4T •02ES70 Cs 95156 21 169273 ACT 29 $002 06/25/02 930701 FAT LESS DtUG S102!S N24Tw,jEST :wC 2-01 wtn3N4T ATE N20:S70 CA 05350 20 266206 ACT 29 $002 OZIC5192 9507-31 PAT LESS ORUG 5102!1 wO.ITNwEST 14C 3900 1!L3wOatt A15 5C.)s MoCE510 CA 95356 _ 23 172504 ACT 29 5404 M G3110 936721 0-7 L_ -SS, -39UG SI72!S 402T.W-sy IMC 144i_EAST F ST ST! 102 o"DAL! CA 95301 21 27&636 ACT Z2 5531 0111.193 950701 OAT LESS 02UG Sl:;xS NOATnr!ST I%C 1021 NOsC war $0Y09A CA '05370 21 192265 ACT 29 1900 01/27/92 010701 FAT LESS D:UG ST7ats ♦o:Tnti2ST I-eC 6.45 'act If Are STOCLTON__ CA -93207 v 31 sal LESS :2U3 170015 KS;14-`.;T :%C ST 3:aTAICT/-:74 C7A::T:CLS 519;410'+ 05512:;1 OF•:CE LS :F JaNJaar 19. 1904 TToE 91L3 STATUS O:ST 730 0?::-3�.i1 Last MO Ns�! a%l C ) 2 :3 ;t;! :7:°S a:?2!IS 21 21.007 ACT 29 1:05 00116/69 9)v7;.t OAT Liss DRU. STOa!l .04T..43ST :vC .1.SOv 110:�77N :7 95::5 jl 211.035 ACT 29 3906 Z310SI93 95C7G1 46 FAT 46355 OfYG STl2!S ♦02tnUiS1 :rC 1122 St Ta AC/ CA 65176 ?O jta0a46 ACT 29 5037 r6/Tt/A! 910701 11T L'.^S v7UC Si7alS NO2TwrESi :�C 051 N TYOLOCA CA 2S3s0 t i i CITY COUNCIL MEETING FEBRUARY 16, 1994 ADOPTED 1994 - 96 BUDGET ORGANIZATION. FORMAT POLICIES AND GOALS The City Council. on motion of Council Member Snider, Mann second, unanimously adopted the 1994-96 budget organization, format policies and goals. Council Member Davenport stated for the record that he would lite to see the following matters addressed in the budget policies: 1. Policy on maintaining a Gat of debts of what the City owes and how often 6 is reviewed; 2 Policy on the bid and purchase process, includir3 sole bidder; 3. The restructure of departments and activi&—m . including which department generates Wk h income; and 4. Information regarding the Ci y's credit rating and how i works. FILE NO. CC -6 AND CC -21(b) fOF (O' CITY OF LODI COUNCIL COMMUNICATION AGENDA TITLE: BUDGET POLICIES (199496 FINANCIAL PLAN AND BUDGET) MEETING DATE: February 16, 1994 PREPARED BY: Finance Director RECOMMENDED ACTION: That the City Council approve the attached budget policies, to be used in preparation of the City's 1994-96 Financial Plan and Budget. BACKGROUND INFORMATION: At a Special Meeting of the City Council on February 8, 1994, staff recommended several changes to the City's budget preparation process and documentation used to present the approved City budget. Included in these recommendations are a new budget format and budget policies necessary to develop and plan the City's 1994-96 Financial Plan and Budget. Prior to the 1993-94 budget development process, the City Council expressed their concern with the City's budget review process and the need to improve the information and documentation available to the City Council and interested public in reviewing and evaluating staff recommendations. Accordingly, the City Council directed the City adopt a "Town Hall" meeting concept to allow greater public participation and to provide staff with the opportunity to describe their operations, costs, staffing and impacts on services provided to the citizens of Lodi. A series of "Town Hall" meetings was conducted in the Spring of 1993, which acted to increase public participation in the budget process prior to adoption by the City Council. BUDGET FORMAT The current City budget is characterized as an "input" budget; that is, a budget that is focused on the City's sources and uses of funds and is presented in a format by fund and department. As such, this format serves the needs of each Department by stating fund ceilings and identifying revenue sources. This format also serves the needs of the City Council by allowing the City Council to evaluate funding and expenditure levels by fund and Department. However, to the casual reader of the City's budget or the average citizen, this format does not provide enough information necessary to make an informed decision and understand the services and costs received. APPROVED / THOMAS A. PETERSON ecycisa Daps. City Mennger CC•i To improve the current budget format and review process, staff recommended that the City adopt a "program budget" format to incorporate the elements outlined below. This format is characterized as an "output" budget and describes the City services and facilities provided and how the taxes and fees paid by the citizens of Lodi are used. Additionally, staff believes this format is a more effective communications tool in serving the decision making process. * The City's financial policies and goals - This element is necessary to communicate the foundation policies on which financial decision are made; provides both a short-term and long-term view on the use of financial resources; reinforces the policy role of the City Council in maintaining the fiscal health of the City; and directs attention on the overall direction of the City rather than single issue items. * The City's financial plan - This element focuses the attention of the Council, staff and public on the current, short-term and long term financial condition of the City and provides an opportunity to anticipate events and conditions which effect the financial stability and solvency of the City. * The City's operations/service plan - This element allows staff to communicate not only the funds received and used in providing services, it provides Departments with the opportunity to describe their services, goals, objectives, performance standards, changes in service levels, and significant changes in operating costs. BUDGET POLICIES As outlined above, the City's budget policies are the foundation on which the budget is prepared. Accordingly, these policies need to be adopted early in the budget preparation process. At the Special Council meeting on February 8, 1994, staff presented the attached Budget policies for Council review and comment. At the conclusion of the meeting, it was the consensus of the City Council and staff that these policies should be presented at the Regular Council Meeting scheduled February 16, 1994 as a "consent item" for adoption. Dixon Flynn Finance Director Attachment Budget Policies /7a CITY OF LODI State of California BUDGET POLICIES AND GOALS 1994-96 FINANCIAL PLAN AND BUDGET JANUARY 1994 BUDGET POLICIES AND GOALS 1994-% FINANCIAL PLAN AND BUDGET Jack A. Sieglock, Mayor Stephen J. Mann, Mayor Pro Tempore Ray G. Davenport, Council Member Phillip A. Pennino, Council Member John R. (Randy) Snider, Council Member Thomas A. Peterson, City Manager Prepared by the Department of Finance H. Dixon Flynn, Finance Director CITY OF LODI, CALIFORNIA JANUARY 1994 .• Gam® TABLE OF CONTENT; .y Overview Budget Policies Financial Plan Organization 3 Budget Administration 4 General Revenue Management S Recreation and Community Center Fees S Enterprise Fund Fees and Rates 6 Other Fees and Rates 6 Revenue Distribution 8 Appropriation Limitation 10 Designated Fund Balances 10 Investments 11 Capital Financing and Debt Management 12 Capital Improvement Management 13 Personnel Resource Management is Productivity Reviews 16 Contracting for Services 17 Cost of Services 18 Major City Goals Overview 20 1994-% Financial Plan Budget Instructions OVERVIEW - BUDGET POLICIES AND GOALS OVERVIEW The overall goal of the City's Financial Plan and Budget is to establish and maintain effective management of the City's resources. Formal statements of budget policy and major goals provide the foundation for effective planning. Accordingly, this section describes the basic budget policies used in guiding the preparation and management of the City's overall budget. This section is composed of the following major units: * Budget Management and Control Policies * Major City Goals Some of the benefits to establishing financial policy include: 1. Publicly adopted policy statements contribute greatly to the credibility of and public confidence in the City. For the credit rating industry and prospective investors, such statements show the City's commitment to sound financial management and fiscal integrity. 2. Established policy saves time and energy for the City Council and staff. Once decisions are made at the policy level, the issues do not need to be discussed each tine a decision has to be made. 3. The process of developing overall policy directs the attention of staff and Council to the City's total financial condition rather than single issue areas. Moreover, this process requires staff and Council to think about linking long-term financial planning with day-to- day operations. 4. As overall policies are developed, the process of trying to tie issues together can bring new information to the surface and reveal further issues that need to be addressed. 5. Developing financial policies reinforces the Council's policy role in maintaining good financial condition. 6. Setting financial policies can improve the City's fiscal stability by setting a forward looking approach to planning. 7. Explicit policies contribute to a continuity in handling the City's financial affairs. 1994-% Financial Plan h] Budget Instructions OVERVIEW - BUDGET POLICIES AND GOALS BUDGET MANAGEMENT AND CONTROL POLICIES The following policies guide the preparation and execution of the 1994-96 Financial Plan and Budget: • Financial Plan Organization * Budget Administration • General Revenue Management * Recreation and Community Center Fees * Enterprise Fund Fees and Rates • Other Fees and Rates * Revenue Distribution * Appropriation Limitation MAJOR CITY GOALS • Designated Fund Balances * Investments * Capital Financing and Debt Management * Capital Improvement Budget • Personnel Resource Management * Productivity Reviews * Contracting For Services • Cost of Services Allocation The involvement of the City Council in setting major City goals is essential to the budget process. These goals provide short term and long term direction to staff, determine the allocation of resources and establish priorities. These goals will provide focus to the organization -wide efforts of staff and ensure that the most important, highest priority objectives are accomplished .... and, that these priorities are communicated to the public. The major City goals are provided in this part of the 1994-96 Financial Plan and Budget. K 1994.96 Financial Plan Budget Instructions'Y` BUDGET POLICIES FINANCIAL PLAN ORGANIZATION A. Through its financial plan, the City will: 1. Identify community needs for essential services 2. Organize the activities required to provide these services. 3. Establish policies and goals which define the nature and level of services required. 4. Identify activities performed in delivering services. 5. Propose objectives for improving the delivery of services. 6. Identify and appropriate resources required to perform services and accomplish objectives. 7. Set standards to measure and evaluate the: a. Output of activities b. Accomplishment of objectives e. Expenditure of appropriations B. The City will use a two-year financial plan and budget concept to emphasize long-range planning and effective management of services. The benefits of a two-year financial plan and budget are: 1. Reinforces long-range planning 2. Concentrates on the development and budgeting for significant objectives 3. Establishes realistic schedules for completing objectives 4. Provides for orderly and structured operations 5. Promotes orderly spending patterns C. The two year financial plan and budget will establish measurable objectives and allow reasonable time to accomplish those objectives. D. The status of major program objectives will be reported to the Council semi-annually. E. The City Council will review and amend appropriations, if necessary, semi-annually. 3 f . 1994-96 Financial Plan Budget Instructions BUDGET POLICIES BUDGET ADMINISTRATION A. City Council The City Council is ultimately responsible to the public for the delivery and conduct of City services and facilities. Accordingly, the Council appropriates funds to ensure the delivery of services at the levels and in the priority established by the Council. B. City Manager The City Manager as the chief administrative officer provides the City Council and Staff with general direction in the development and formulation of the staffs budget recommendation. This includes: evaluating and assessing, current and projected issues confronted by the City; determining the demand for services and facilities; identifying the concerns of the voters; assessing the current and projected financial condition of the City; and determining the final staff recommendation. C. Finance Director/Treasurer The Finance Director as the chief financial officer is responsible for budget development and administration. This includes: developing and issuing the budget instructions and calendar; advising the City Manager on budget policies; reviewing budget requests to ensure they are complete and accurate; preparing the preliminary budget recommendation for review by the City Manager; and, publication of the approved budget. D. Public Works Director The Public Works Director is responsible for preparing the City's capital improvement budget (CIB) and the City's Equipment Replacement Schedule (ERS). In this capacity, the Public Works Director works closely with the Electric Utility Director to prepare an integrated CIB and ERS in recognition of the unique responsibilities and scope of services offered by the Electric Department. E. Department Directors Department Directors are responsible for preparing their operating budget requests and capital budget requests in accordance with the City's budget instructions. The Public Works Director will prepare the City's consolidated budget request for vehicles and major equipment items. F. Failure to A:?opi Rudget If the City Counci; fails to adopt the budget by July 1, the City Council may elect one of the following courses of action until passage of a budget and the appropriation of funds: (1) Provide the City Manager with Continuing Resolution Authority to allow continued services at expenditure levels not greater than those levels approved in the prior year budget; or (2) Require staff to obtain prior approval for the expenditure (disbursement) of City funds. 4 194496 Financial Plan Budget IttstnKilons 16UDGET POLICIES H. Public Record Copies of the City budget as adopted shall be public records and shall be made available M the public upon request. GENERAL REVENUE MANAGEMENT A. The City will seek to maintain a diversified and stable revenue base to protect it from short- term fluctuations in any one revenue source. B. To emphasize and facilitate long-range planning, the City will project operating revenues for the succeeding five years. C. The City will make all current expenditures with current revenues, avoiding procedures that balance current budgets by accruing future revenues, rolling over short term debt or borrowing reserves of one fund to another. RECRF-%TION AND COMMUNITY CENTER FEES A. Recreation service cost recovery goals are addressed as an integral component of the City's comprehensive user fee study provided by David M. Griffith and Associates. itis the City's goal that 30% of the total cost of the City's recreation and community center programs should be recovered through fees and charges for recreation activities and the use of City facilities and equipment. In achieving this overall cost recovery goal, the following guidelines will be used: Cost recovery for activities directed to adults should be relati.ely high. 2. Cost recovery for activities for youth should be relatively low. Although abi:,ty to pay may not be a concern for all youth and senior participants, these are desired program activities, and the cost of determining need may be greater than the cost of providing a uniform service fee structure to all participants. Furth:r, there is a community wide benefit to encourage high -levels of participation in youth recreation activities regardles:, of financial status. 3. For cost recovery activities of less than 100%, there should be a differential in rates between residents and non-residents. 1994-% Financial Plans .,f Budget instructions BUDGET POLICIES 4. These policy guidelines are sufficient in themselves in providing direction for setting the recreation and community center fees. Although these targets may be internally useful i- administering recreation fees, the City's management should have as much flexibility as possible in setting specific activity fees as long as they meet the objectives and criteria provided above. However, the Recreation Department and Hutchins Street Square will prepare and submit a summary of internal cost recovery targets to the City Manager for various activity categories at least annually. B. Charges will be assessed for use of rooms, pools, gymnasiums, ball fields, special use areas, and recreation equipment for activities not sponsored or co-sponsored by the City. Such charges will generally conform to the fee support categories listed above. C. The Recreation Department and Hutchins Street Square may waive fees with the approval of the City Manager when it is determined that an undue hardship exists or when in the best interests of the City. ENTERPRISE FUND FEES AND RATES A. The City will set fees and rates at levels which fully cover the total direct and indirect costs ......including operations, capital outlay and debt service..... of the following enterprise programs: electrical, water, sewer, Camp Hutchins, and solid waste. B. The City will annually review and adjust enterprise fund fees and rates as required to ensure that they remain appropriate and equitable, and to stem large rate increases. OTHER FEES AND RATES A. Ongoing Review Fees and rates will he reviewed and updated on an ongoing basis to ensure that they are correct and appropriate based on the changing needs of the community, i.e. economic concerns, social issues, public safety. B. General Concepts Regarding the Use of Service Fees and Rates The use of fees and rates should be subject to the following general concepts: Revenues normally will not exceed the reasonable cost of providing the service. — Cost recovery goals should be based on the total cost of delivering the service, including direct costs, departmental administration costs, and organization wide cost such as accounting, personnel, date processing, vehicle maintenance and insurance. 3. The method of assessing and collecting fee-, should be as simple as possible in order to reduce the administrative cost of collection. 6 199496 Financial Plan L ,.! Budget Instructions BUDGET POLICIES 4. Rate structures should be sensitive to the "market" for similar services as well as to smaller, infrequent users of the service and the influence rates and fees have on economic development. 5. A unified approach should be used in determining cost recovery levels for various programs based on the factors discussed above. C. Low Cost Recovery Services Based on the criteria discussed above, the following types of services should have very low cost recovery goals. In selected circumstances, there may be specific activities within the broad scope of services provided that should have user charges associated with them. However, the primary source of funding for the operation as a whole should be general purpose revenues, not user fees. 1. Maintaining and developing public facilities that are provided on a uniform, community wide basis such as streets, parks and general purpose buildings. 2. Delivery of social service programs and economic development activities. D. Comparability with Other Communities 1. Fee surveys should never be the sole or primary criteria in setting City fees. There are many factors that affect how and why other communities have. set their fees at their levels. For example: a. What level of cost recovery is their fee intended to achieve compared with Lodi's cost recovery objectives? b. What costs have been considered in computing the fees? C. When was the last time that their fees were comprehensively evaluated? d. What level of service do they provide compared with Lodi's service or performance standards? C. Is their rate structure significantly different than Lodi's and what is it intended to achieve? 2. Surveys comparing the City's fees to other communities is useful background information in setting fees for several reasons: a. They reflect the "market" for these fees and can assist in assessing the reasonableness of the City's fees. 7 1994-% Financial Plan « J Budget Instructions BUDGET POLICIES b. If prudently analyzed, they can serve as a benchmark for how cost effective the City provides services. These are difficult questions to address in fairly evaluating fees among different cities. REVENUE DISTRIBUTION The Council recognizes that generally accepted accounting principles for local government discourage the "earmarking" of General Fund revenues, and accordingly, the practice of earmarking general fund revenues for specific programs should be minimized. Approval of the following Revenue Distribution policies for 1994-96 does not prevent future Councils from directing General Fund resources to other funds and activities as necessary. A. Property Tax Allocation The City's property tax serves to provide for general municipal services as well as for debt service, retirement obligations, public improvements and library purposes. The passage of Proposition 13 on June 6, 1978, drastically changed the method of establishing and allocating property tax revenues for all local agencies in California. In addition to limiting annual increases in market value, placing a ceiling on voter approved indebtedness ani redefining assessed valuation;, Proposition 13 established a maximum County wide levy for general revenue purposes of 1 % of market value. Under subsequent state legislation which adopted formulas for the distribution of this County wide levy, the City now receives a percentage of total property tax revenues. 2. As discussed above, the City no longer controls the amount or distribution of its property tax. In distributing property tax revenues between funds since the passage of Proposition 13, the following minimum ratios for special purposes have traditionally been used based on the tax rates that were in effect prior to the passage of Proposition 13: Fiscal Year 1978-79 Tax Rate Per $100 Percent Special Municipal Purposes Library $ .30 17.86% General Municipal Purposes 1.38 82,14% TOTAL $ 1.68 100.00% 3. For 1994-96 property tax revenues will be distributed proportionately to the following funds as follows: General Fund Capital Outlay Fund - General Fund Library Fund TOTAL 1994-95 1995-96 65% 50% 15% 30% 2 100% 100% 1994-% Financial Plan %A Budget Instructions BUDGET POLICIES B. All Gasoline Tax revenues (which are restricted by the State for street -related purposes) will be used for street maintenance and construction activities. With the State requirement for the City's level of effort of general fund revenues to match or exceed the State transfers to the City for gas tax eligible programs and projects, this approach insures the accounting efforts in meeting State reporting requirements are kept to a minimum. C. All Transportation Development Act (TDA) revenues will be allocated to alternative transportation programs, including regional and municipal transit systems, bikeway improvements and other programs or projects designed to reduce automobile usage. It is expected that alternative transportation programs - in conjunction with other state and federal grants for this purpose- will be self-supporting from TDA revenues. D. Enterprise Fund Allocations to the General Fund 1. The goal of Proposition 4 is to limit growth in appropriations of both state and local government to changes in the cost of living and population in order to control spending levels. Proposition 4 further describes the difference between "tax proceeds" and fees. Tax proceeds are the revenue from regulatory licenses, user charges and user fees to the extent the revenue exceeds the cost of providing the regulation, product or service. (This includes transfers from an enterprise fund to the extent those funds exceeded the cost of providing the services). 2. As discussed above. the funds transferred from the City's enterprise funds to the City's general fiord are "In -Lieu Taxes" to the extent they exceed the cost of services provided by general services (accounting, personnel, legal, insurance, etc.). These taxes will be levied during the 1994-96 Financial Plan and Budget period based on rrior year revenues as follows: In -lieu Tax - Electric 9% In -lieu Tax - Water 20% In -lieu Tax - Sewer 11 % E. Special Revenue Allocations to the General Fund Revenues the City receives for specific services (i.e. vehicle tow charges) will not be designated for use by an individual department unless required by statute or approved by the City Council. When required by statute (i.e. asset seizure), these funds will be first allocated to the purchase of necessary and essential equipment and/or services prior to purchase with General Fund resources. 9 199496 Financial Plan i..o'd Budget Instructions BUDGET POLICIES APPROPRIATION LIMITATION A. The Council will annually adopt a resolution establishing its appropriation limit calculated in accordance with Article X11113 of the Constitution of the State of California, Section 7900 of the State of California Government Code, and any other voter approved amendments or state legislation that affect the City's appropriation Iimit. B. The City will strive to develop revenue sources, both new and existing, which are considered non -tax proceeds in calculating its appropriations subject to limitation. C. The City will annually review user fees and charges and report to the Council the amount of program subsidy, if any, that is being provided by the General Fund or Enterprise Funds. FUND BALANCE DESIGNATIONS AND RESERVES A. The City should maintain fund balances of at least 15% of operating expenditures in the General Fund as well as the Electric, Sewer, Water and Camp Hutchins Funds. This is considered the minimum level necessary to maintain the City's credit worthiness and to adequately provide for: 1. Economic uncertainties, local disasters, and other financial hardships or downturns in the local economy. 2. Contingencies for unforeseen operation or capital needs. 3. Cash flow requirements. B. The City will establish and maintain an Equipment Replacement Fund to provide for the timely replacement of vehicles and capital equipment. This includes items with an individual replacement cost of $3,000 or more. The minimum fund balance in the Equipment Replacement Fund should be at least 30% of the original purchase cost of the equipment purchased. The annual contribution 'i the Fund will generally be based on the annual "use allowance" which is determined based on the estimated life of the vehicle or equipment and its original purchase cost. Interest earnings and sales of surplus equipment as well as any related damage and insurance recoveries will be credited to the Equipment Replacement Fund. C. The Council may designate specific fund balance levels for future development of capital projects which it has determined to be in the best long-term interests of the City. D. in addition to the designations noted above, fund balance levels will be sufficient to meet funding requirements for projects approved in prior years which are carried forward into the new year; debt service reserve requirements; reserves for encumbrances; and other reserves or designations required by contractual obligations, state law, or generally accepted accounting principles. E 1994-% Financial Plan h..d Budget Instructions BUDGET POLICIES INVESTMENTS A. Investments and cash management will be the responsibility of the City Finance Director/Treasurer or designee. B. The City's primary investment objective is to achieve a reasonable rate of return while minimizing the potential for capital losses arising from market changes or issuer default. Accordingly, the following factors will be considered in priority order in determining individual investment placements: 1. Safety 2. Liquidity 3. Yield C. The City will strive to keep idle cash balances fully invested through daily projections of cash flow requirements. To avoid forced liquidations and losses of investment earnings, cash flow and future requirements will be the primary consideration when selecting maturities. D. As the market and the City's investment portfolio change, care will be taken to maintain a healthy balance of investment types and maturities. E. The City will invest only in those instruments authorized by the California Government Code Section 53601. The City will not invest in stock, will not speculate, and will not deal in futures or options. The investment market is highly volatile and continually offers new and creative opportunities for enhancing interest earnings. Accordingly, the City will thoroughly investigate any new investment vehicles prior to committing City funds to them. F. Current financial statements will be maintained for each institution in which cash is invested. Investments will be limited to 20 percent of the total net worth of any institution and may be reduced further or r- fused altogether if an institution's financial situation becomes unhealthy. G. in order to maximize yields from its overall portfolio, the City will consolidate cash balances from all funds for investment purposes, and will allocate investment earnings to each fund in accordance with generally accepted accounting principles. H. Ownership of the city's investment securities will be protected through third -party custodial safekeeping. 1994-% Financial Plan a..d Budget Instructions BUDGET POLICIES I. The City Finance Director/Treasurer will develop and maintain a comprehensive, well documented investment reporting system which complies with Government Code Section 53607. This system will provide the City Council with appropriate investment performance information. J. The City Finance Director/Treasurer will develop and maintain an Investment Management Plan which addresses the City's administration of its portfolio, including investment strategies, practices, and procedures. CAPITAL FINANCING AND DEBT MANAGEMENT Capital Financing A. The City will consider the use of debt financing only for one-time capital projects and only under the following circumstances: 1. When the ;project's useful life will exceed the term of the financing. 2. When project revenues or specific resources will be sufficient to service the long-term debt. B. Debt financing will not be considered appropriate for any recurring purpose such as current operating and maintenance expenditures. The issuance of short-term instruments such as revenue, tax, or bond anticipation notes is excluded from this limitation. C. Capital improvements will be financed primarily through user fees, service charges, assessments, special taxes, or developer agreements when benefits can be specifically attributed to users of the facility. D. The City will use the following criteria to evaluate pay-as-you-go versus long-term financing in funding capital improvements: Pay -As -You -Go 1. When current revenues and adequate fund balances are available or when project phasing can be accomplished. 2. When debt levels adversely affect the City's credit rating. 3. When market conditions are unstable or present difficulties in marketing. Long -Tenn Financing 1. When revenues available for debt service are deemed to be sufficient and reliable so that long-term financing can be marketed with investment grade credit ratings. 2. When the project securing the financing is of the type which will support an investment grade credit rating. 12 199496 Financial Plan u..J Budget Instructions BUDGET POLICIES 3. When market conditions present favorable interest rates and demand for City financing. 4. When a project is mandated by State or Federal requirements and current revenues and available fund balances are insufficient. 5. When the project is required to meet or relieve service requirements. 6. When the life of the project or asset financed is 10 years or longer. Debt Management E. The City will not obligate the General Fund to secure long-term financing except when the marketability can be significantly enhanced. F. No more than 60% of all capital projects will be funded from long-term financing; and direct debt will not exceed 2% of the City's assessed valuation. G. A feasibility analysis will be prepared for each long-term financing to assess debt service on current and future operations. This will also include an analysis on the reliability of revenues to support a debt service. H. The City will generally conduct debt financing on a competitive basis. However, negotiated financing may be used due to market volatility or the use of an unusual or complex financing or security structure. 1. The City will seek investment grade ratings (Baa/BBB or greater) on any direct debt and will seek credit enhancements such as letters of credit or insurance when necessary for marketing purposes, availability and cost-effectiveness. J. The City will monitor all forms of debt annually coincident with the budget process. K. The City will diligently monitor its compliance with bond covenants and ensure its adherence to federal arbitrage regulations. L. The City will maintain good communications with bond rating agencies about its financial condition. The City will follow a policy of full disclosure on every financial report and bond prospectus (Official Statement). CAPITAL INIPROVEI%IENT BUDGET A. Construction projects and capital purchases (other than vehicles, equipment and major computer software acquired through the Equipment Replacement Fund and projects funded by an Enterprise Fund) which cost more than $10,000 will be included in the Capital Improvement Budget (CIB); minor capital outlays of $10,000 or less will be included with the operating activity budgets. Enterprise Fund projects and major equipment purchases will be based on the capitalization practices of the Enterprise. 13 1994-% Financial Plan i...J Budget instructions BUDGET POLICIES B. The purpose of the CIB iq to systematically plan, schedule, and finance capital acquisitions to ensure cost-effectiveness as well as conformance with established policies. The CIB will be a five year plan organized into the same functional groupings used for the operating budget. The CIB will reflect a balance between capital replacement projects which repair, replace, or enhance existing facilities, equipment or infrastructure; and capital facility projects which significantly expand or add to the City's existing fixed assets. C. Every capital project will have a project manager who will prepare the project proposal, ensure that required phases are completed on schedule, authorize all project expenditures, ensure that all regulations and laws are observed, and periodically report project status. D. A CIB Coordinating Committee, chaired by the Directors of Public Works and the Electric Utility Department, will review project proposals, determine project phasing, recommend project managers, review and evaluate the draft capital budget plan, and report project status at least annually to Council. The Committee will be made up of representative of each Department. E. The Capital Improvement Budget will emphasize project planning, with projects progressing through at least two and tip to six of the following phases: * DESIGNATED - Set aside funding for future project development under "pay-as-you-go" financing. * STUDY - Includes concept design, site selection, feasibility analysis, schematic design, environmental determination, property appraisals, scheduling, grant application, grant approval, and specification preparation for equipment purchases. * ACQUISITION - Includes equipment purchases and property acquisition for projects, if necessary. * DESIGN - Includes final design, plan and specification preparation, and construction cost estimation. * CONSTRUCTION - Includes bid administration, construction, project inspection and management, and closeout. * DEBT SERVICE - Installment payments of principal and interest for completed projects funded through debt financing. Generally, it will become more difficult for a project to move from one phase to the next. As such, more projects will be studied than will be designed, and more projects will be designed than will be constructed or purchased. F. Funding and related appropriation to a project account will only be made upon approval of each phase by the City Council. Accordingly, projc,A appropriations for acquisition and construction will generally be approved when contracts are awarded. 14 y f,+ 199496 Financial Plan s..A Budget Instructions BUDGET POLICIES G. Project phases will be listed as objectives in the program narratives of the Activity responsible for the project. PERSONNEL. RESkURCE MANAGEMENT A. Regular authorized staffing will be fully budgeted and funded. B. Staffing and contract service budget ceilings will limit total expenditures for regular employees, temporary employees, overtime and independent contractors hired to provide operating and maintenance services. C. Regular employees will be the core work force and the preferred means to staff ongoing, year-round activities rather than independent contractors. The city will strive to provide fair compensation and benefit schedules for its authorized regular work force. Each regular employee will: 1. Fill an authorized regular position. 2. Be assigned to an appropriate bargaining unit or representative group. 3. Receive salary and benefits consistent with labor agreements or other compensation plans. D. To manage the growth of the regular work force and overall staffing costs, the City will follow these procedures: 1. The City Council will authorize all regular positions except in the case of the Library which is governed by the Library Board. 2. The Personnel Department will coordinate the hiring of all employees and evaluate the reallocation of existing positions. 3. All requests for additional regular positions will include an evaluation of: a. The necessity, term, and expected results of the proposed position. b. Staffing and material costs including salary, benefits, equipment, uniforms, clerical support, and facilities. c. The ability of private industry to provide the proposed service. d. Additional revenues or cost savings which may be realized. 4. Periodically, and prior to any request for additional regular positions, programs will be evaluated to determine if they can be accomplished with fewer regular employees under a "productivity review". 15 199496 Financial Plan u..d Budget Instructions BUDGET POLICIES E. Temporary employees are employees other than regular employees, elected officials, and volunteers budgeted in hours. Temporary employees will augment regular City staffing only as limited term employees, seasonal employees, emergency, intermittent, contract employees, and interns. The City Manager will encourage the use of temporary employees to meet peak workload requirements, fill interim vacancies, and accomplish tasks where less than regular, year-round staffing is required. F. Contract employees will be defined as temporary employees with written contracts approved by the City Manager who may receive approved benefits depending on hourly requirements and the length of their contract. Contract employees will generally be used for medium-term (generally between six months and two years) projects, programs, or activities requiring specialized or augmented levels of staffing for a specific period of time. The services of contract employees will be discontinued upon completion of the assigned project, program or activity. Accordingly, contact employees will not be used for services that are anticipated to be delivered on an ongoing basis. G. Independent contractors will not be considered City employees. Independent contractors may be used in two situations: 1. Short term, peak work load assignments to be accomplished through the use of personnel contracted through an outside employment agency. All placements through an outside employment agency will be coordinated through the Personnel Department and subject to the approval of the Personnel Director. 2. Construction of public works projects and the provision of operating, maintenance, or specialized professional services not routinely performed by City employees. Such services will be provided without close supervision by City staff, and the required methods, skills, and equipment will generally be determined and provided by the contractor. PRODUCTIVITY REVIEW The City will constantly monitor and review its methods of operation to ensure that services continue to be delivered in the most cost effective manner possible. This review process encompasses a wide range of issues, including: A. Maintaining a decentralized approach in managing the City's services. Although some level of centralization is necessary for review and control purposes, decentralization supports productivity by: o Encouraging accountability by delegating authority to the lowest possible level. o Stimulating creativity, innovation, and individual initiative. o Reducing the administrative cost of operation by eliminating unnecess^ry review procedures. 16 1994-96 Financial Plan t Budget Instructions BUDGET POLICIES o Improving the organization's ability to respond to changing needs and to identify and implement cost saving programs. o Assigning responsibility for effective operations and citizen responsiveness to the department. B. Analyzing systems and procedures to identify and remove unnecessary review requirements. C. Evaluating the ability of new technologies and related capital investments to improve productivity. D. Investing in the City's most valuable asset - personnel staff - by developing the skills and abilities of all City employees, with special emphasis on first-line supervisors. E. Implement annual performance reviews and appropriate methods of recognizing and rewarding exceptional employee performance. F. Evaluating local market service providers and other government agencies to determine whether the service is available at a lower cost than provided by City staff. G. Periodic formal review of operations on a systematic, ongoing basis. CONTRACTING FOR SERVICES A. General Policy Guidelines 1. Contracting with the private sector and other government agencies for the delivery of services provides the City with the opportunity for cost containment and productivity enhancement. As such, the City is committed to using private sector resources in delivering municipal services as a key element in our continuing efforts to provide cost effective services. 2. Private sector contracting approaches under this policy include construction projects, professional services, outside employment agencies, and ongoing operation and maintenance services. 3. In evaluating the costs of private sector contracts compared with in-house performance of the service, indirect, direct and contract administration costs of the City will be identified and considered. 4. Whenever private sector providers are available and can meet established service levels, they will be seriously considered as viable service delivery alternatives using the evaluation criteria outlined below. 17 1994% Financial Plan s.=..1 Budget Instructions BUDGET POLiCIES 5. For programs and activities currently provided by City employees, conversions to ccritract services will generally be made through attrition, reassignment of absorption by the contractor. B. Evaluation Criteria Within the general policy guidelines stated above, the cost-effectiveness of contract services in meeting established service levels will be determined on a case-by-case basis using the following criteria: 1. Is a sufficient private sector market available to deliver this service? 2. Can the contract be effectively and efficiently administered? 3. What are the consequences if the contractor fails to perform, and can the contract reasonably be written to compensate the City for any such damages? 4. Can a private sector contractor better respond to expansions, contractions, or special requirements of the service? 5. Can the work scope be sufficiently defined to ensure that competing proposals can be fairly and fully evaluated. as well as the contractor's performance after bid award? 6. Does the use of contract services provide the City with an opportunity to redefine service levels? 7. Will the contract limit the City's ability to deliver emergency or other high priority services? 8. Overall, can the City successfully delegate the performance of the service but still retain accountability and responsibility for its delivery? ALLOCATING THE COST OF SERVICES (ABATEMENT) A. General Policy Guidelines The City is committed to achieving efficiency by centralizing general administrative services to the extent they serve the needs of the City as a whole and provide for greater cost efficiency. Accordingly, general and administrative services will be charged to those activities not financed by the General Fund by use of a cost allocation plan. 2. The City will develop a cost allocation plan for general government services provided the City's enterprise fund and special revenue fund activities in accordance with accepted cost allocation methodology. Tire City Library will be subsidized for the cost of general government services. 3. The cost of general government services will be financed by operating transfers established in the cost allocation plan and transferred to the general fund annually at the time the City budget is adopted. 18 199496 Financial Pian b A Budget Instructions BUDGET POLICIES 4. The Finance Director will perform periodic reviews of the City's cost allocation plan to ensure the distribution of costs are made in accordance with accepted practices of the City. T?te results will be published annually in the City's budget. 5. The City will develop a cost allocation plan in accordance with Federal and State policies to ensure the maximum allowable return to the City of indirect/overhead costs. B. Cost Allocation Criteria 1. Costs will be allocated considering the following criteria: * Cause and effect - the identification of output in proportion to the service provided. * Benefits received - the allocation of cost in relation to the benefits received. * Fairness and equity - the allocation must be mutually satisfactory to the parties affected. * Ability to bear - the allocation of cost must consider the ability to pay and the impact on the services provided. 2. Costs will be allocated to activities when the overall service benefits the City as a whole but a particular cost benefit can not be shown. 3. The criteria for allocating costs will be included in the City budget to allow for evaluation of the cost distribution criteria. M 199496 Financial Plan as- ! Budget Instructluns MAJOR CITY GOALS Background Under the City's financial plan and budget process, the City Council will become involved early in the budget process by identifying major City goals and priorities. These goals become the focus for organization wide efforts to ensure that the most important, highest priority objectives are accomplished .... and that these high priority objectives are communicated to the public. To meet these needs, the City Council will hold a one day goal setting session in January each year as the first step in preparation of the City's financial plan and budget. In setting the City's major goals the Council will receive a review from the City Manager on the following: a. Current and projected financial condition b. Current policies and community expectations C. Current goals Selection of Major City Goals Under the goal setting process, the City Council and City Manager will meet and establish City- wide goals which will than be ranked using the following criteria: * Programs and Projects Rated A These represent high priority goals for the Council, and as such, they should be included in the Preliminary Financial Plan and adequate funding will be made available. * Programs and Projects Rated B These represent a high priority, but they will be considered in the context of higher priority goals and available resources. * Programs and Projects Rated C These represent programs and projects to be deferred to the next financial plan and budget. Each program and project rated A will be developed and included in the City's Financial Plan and Budget in this section of the budget. This will be in a narrative form with the following information: * Objectives * Financial and staff resources required * Background * Outcome/final product * Action steps * Responsible department 20 1994-% Financial Plan ...d Budget instructions MAJOR CITY GOAL - ECONOMIC DEVELOPMENT OBJECTIVE Develop and implement a focused economic development plan to identify specific activities necessary to preserve and promote the financial stability of Lodi and the City's General Fund. BACKGROUND AND WORKSCOPE This program is established to focus additional City resources and efforts in support of the local economy and to assure a strong General Fund. This program will be funded by additional revenues raised from business tax and transient occupancy tax. The scope of the work will be developed on a project -by -project basis. Examples of projects and services which could be eventually funded through this program include: * A full time economic d,-velopment coordinator * An additional planner in community development for redevelopment agency planning * Additional police patrol officers for downtown security * Annexation of vacant land West of South Sacramento and Kettleman * Downtown Revitalization Plan * Cherokee Lane Revitalization Plan * Programs and projects to promote tourism * Programs and projects to attract and retain business to Lodi - Waive fees and licenses in part or whole (specific incentive) - Extend payment of fees - Refund !axes - Reduce fees, charges and licenses in part or whole (general incentive) - Marketing Lodi through a professional marketing firm - Establish business forum ACTION STEPS Specific action steps will be established as projects are defined RESPONSIBLE DEPARTMENT AND PROGRAM * Administration * Others (depending on the project) FINANCIAL AND STAFF RESOURCES Funding in the amount of $300,000 in 1994-95 for a full time economic development coordinator, community development planner, and consulting firms for the Downtown and Cherokee Lane Revitalization Plan. Additional resources may be required to complete some of the projects currently identi ied if the Council wishes to take a more aggressive program. OUTCOME/FINAL PRODUCT To be determined on a project by project basis. 2!