HomeMy WebLinkAboutAgenda Report - February 4, 2004 I-01AGENDA ITEM I owl
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Discussion and Action Regarding Phase II Budget Adjustments
MEETING DATE: February 4, 2004
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: That Council discuss and approve the proposed Phase 11 budget
adjustments.
BACKGROUND INFORMATION: The City of Lodi depends on certain revenues from the State of
California as part of the City's General Fund operating budget. As
Council is aware, cities and counties are currently at the mercy of
the State regarding the proposed property tax take -away (ERAF shift) and the vehicle license fee gap.
Because of the budget uncertainties and the projected State budget turmoil, the City Manager
has instituted a progressive budget reduction strategy comprised of three phases.
City Council adopted Phase I budget reduction recommendations during the December 17, 2003 Council
meeting. The adopted recommendations included a total of $224,350 of budget cuts over an 18 month
period. As pointed out by the City Manager during the December 17th meeting, he would return with
additional options as Phases 11 & III of his budget strategy. The City Manager will review his
recommended Phase Il adjustments for Council approval during the February 4-4, 2004 Council meeting.
Attached is an updated list describing the General Fund "Challenge" and the list of Phase 11
recommendations.
Additionally, as we proceed through the budget preparation process the City's recently approved public
survey process will dovetail with final recommendations in April and May 2044.
FUNDING: Not Applicable
JK/sl
Attachments
APPROVED:
Jan . Keeter
Deputy City Manager
H. Dixon Flynn, City Manager
AGENDA ITEM I"ol
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Discussion and Action Regarding Phase II Budget Adjustments
MEETING DATE: February 4, 2004
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: That Council discuss and approve the proposed Phase II budget
adjustments.
BACKGROUND INFORMATION: The City of Lodi depends on certain revenues from the State of
California as part of the City's General Fund operating budget. As
Council is aware, cities and counties are currently at the mercy of
the State regarding the proposed property tax take -away (ERAF shift) and the vehicle license fee gap.
Because of the budget uncertainties and the projected State budget turmoil, the City Manager
has instituted a progressive budget reduction strategy comprised of three phases.
City Council adopted Phase I budget reduction recommendations during the December 17, 2003 Council
meeting. The adopted recommendations included a total of $224,350 of budget cuts over an 18 month
period. As pointed out by the City Manager during the December 17`" meeting, he would return with
additional options as Phases II & III of his budget strategy. The City Manager will review his
recommended Phase II adjustments for Council approval during the February 14, 2004 Council meeting.
Attached is an updated list describing the General Fund "Challenge" and the list of Phase II
recommendations.
Additionally, as we proceed through the budget preparation process the City's recently approved public
survey process will dovetail with final recommendations in April and May 2004.
FUNDING: Not Applicable
JK/sl
Attachments
. Keeter
City Manager
APPROVED:2� l/ E
H. Di ox n Flynn,
General Fund --The Challenge
Adjustments
Value of
GF positions
16.6
Phase I adopted 12/17/03 (134,950) (89,400)
6 mo 2004
2004-05
Grand Total
Adjustments to amounts budgeted
(9.64)
(128,977) (721,774)
(850,751)
PERS increase $
51,946
$ 189,940
$ 241,886
Medical rate increase
(59,378)
(352,700)
(412,078)
General Liability
100,000
-
100,000
Additional VTO
(92,840)
(92,840)
Golden Handshake
200,000
400,000
600,000
Budget survey - GF share of $30,000
6,000
6,000
Animal shelter part time staff
9,000
18,600
27,600
VLF backfill loan to State
555,000
555,000
Unrestricted Capital
(1,116,000)
(1,116,000)
(2,232,000)
Hire Freeze additional
(506,684)
(506,684)
Fund Balance Adjustment
894,516
894,516
1,789,032
sub total
41,560
34,356
75,916
Placeholder - Possible Impact -(VLF & Prop Tax)
1,000,000
1,000,000
$
41,560
$ 1,034,356
$ 1,075,916
Adjustments
Value of
GF positions
16.6
Phase I adopted 12/17/03 (134,950) (89,400)
(224,350)
(3.45)
Phase 11 to Council 2/04/04 5,973 (632,374)
(626,401)
(9.64)
(128,977) (721,774)
(850,751)
(13.09)
Phase III - need at least this amount if impacted by VLF (225,165)
(225,165)
(3.46)
1/28/200411:10 AM
General Fund Adjustments Options
6 mo 2004
2004-05
Total 18 mo
Value of
GF positions
Phase II
(3,000)
(3,000)
(0.05)
(2,000)
PERS increase
51,946
189,940
241,886
3.72
Medical rate increase
(59,378)
(352,700)
(412,078)
(6.34)
General Liability
100,000
-
100,000
1.54
Additional VTO
(92,840)
(2,000)
(92,840)
(1.43)
Golden Handshake
200,000
400,000
600,000
9.23
Budget survey - GF share of $30,000
6,000
(9,500)
6,000
0.09
Animal shelter part time staff
9,000
18,600
27,600
0.42
Unrestricted Capital
(1,116,000)
(1,116,000)
(2,232,000)
(34.34)
VLF backfill 'loan" to be repaid by State in 2006/07
555,000
555,000
8.54
Hire Freeze additional
(506,684)
(506,684)
(7.80)
Fund Balance Adjustment
894,516
894,516
1,789,032
27.52
Total of Phase II needed budget Adjustments
41,560
34,356
75,916
1
Additional Budget Adjustment Options
Administration
Reduce supplies
Reduce business expense
City Clerk
Reduce business expense
Reduce Conference expense
Professional services reduction
Community Center
Reduce repairs to buildings
Reduce sublet service contracts
Reduce postage account
Reduce office supplies
Reduce professional services - Performing Art Center
Community Development
Reduce conference expense
Reduce Training expense
Finance
Suspend Administration function on Parking Citation program
Suspend JDE training
Suspend executive report publication
Use remanufactured toner cartridges rather than new
Fire
(500)
(500)
(0.01)
(1,000)
(1,000)
(0.02)
(3,000)
(3,000)
(0.05)
(2,000)
(2,000)
(0.03)
(8,000)
(8,000)
(0.12)
(3,000)
(3,000)
(0.05)
(3,600)
(3,600)
(0.06)
(5,500)
(5,500)
(0.08)
(1,000)
(1,000)
(0.02)
(2,000)
(2,000)
(0.03)
(10,000) (10,000)
(20,000)
(0.31)
(500) (500)
(1,000)
(0.02)
(9,500)
(9,500)
(0.15)
(15,000)
(15,000)
(0.23)
(5,000)
(5,000)
(0.08)
(500)
(500)
(0.01)
1/28/2004 12:21 PM
General Fund Adjustments Options Value of
6 mo 2004 2004-05 Total 18 mo GF positions
Reduce Overtime (35,000) (35,000) (0.54)
Human Resources
Suspend assessment centers for promotional exams
Suspend annual health fair/safety awards/float fest
Suspend printing of newsletter
Library
Internet access
Parks
Don't build donated indoor soccer project
Take public restrooms out of service if no sporting program (1 yr)
Suspend concession services at Grape Pavilion (1 yr)
Remove pay phone in front of Discovery Center
Edge monthly (1 yr)
Contract tree services on emergency levels only (1 yr)
Discontinue manual weed control (1 yr)
Operate in house food concessions/vending machines
Defer purchase of any new non -motorized equipment (1 yr)
Defer hiring of equipment mechanic intern (1 Yr)
Recreation
Reduce supplies
Reduce Commission supplies
Police
Supplies reduction
Overtime reduction
Public Works
Reduce frequency of maintenance on medians to monthly (1 yr)
Reduce janitorial service to 3 times per week
Budget supplies Reduction
Travel Reduction
Business expenditure reduction
Audit property tax receipts
Recycle more
Centralize Printing
Total Additional Budget Adjustment Options
Total Phase II adjustments
(10,000)
(10,000)
(0.15)
(8,000)
(8,000)
(0.12)
(1,900)
(1,900)
(0.03)
(1,000)
(1,000)
(0.02)
(143,960)
(143,960)
(2.21)
(3,000)
(3,000)
(0.05)
(2,000)
(2,000)
(0.03)
(600)
(600)
(0.01)
(500)
(500)
(0.01)
(5,000)
(5,000)
(0.08)
(2,000)
(2,000)
(0.03)
(5,000)
(5,000)
(0.08)
(2,000)
(2,000)
(0.03)
(4,500)
(4,500)
(0.07)
(6,000)
(6,000)
(0.09)
(3,000)
(3,000)
(0.05)
(15,000)
(15,000)
(0.23)
(21,000)
(21,000)
(0.32)
(25,000)
(25,000)
(0.38)
(26,000)
(26,000)
(0.40)
(151,461)
(151,461)
(2.33)
(13,831) (107,157)
(120,988)
(1.86)
(3,256) (25,552)
(28,808)
(0.44)
(35,587) (666,730) (702,317) (11)
5,973 (632,374) (626,401) (9.6)
1/28/2004 12:21 PM