HomeMy WebLinkAboutAgenda Report - December 17, 2003 I-02AGENDA ITEM 1 40 OL
CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Discussion and Appropriate Action Regarding Budget Deficit and Vehicle
License Fee Backfill Impacts to the City of Lodi
MEETING DATE: December 17, 2003
PREPARED BY: Deputy City Manager
RECOMMENDED ACTION: That Council discuss and taking the appropriate action regarding the
impending budget challenges and shortfalls as anticipated due to
the Vehicle License Fee backfill, and rising costs of CaIPERS,
medical, and general liability.
BACKGROUND INFORMATION: As is typical, the City Manager annually presents Council with what
are called "mid -year budget adjustments." What is atypical this year
is the anticipated severity of budget challenges that the City of Lodi,
along with cities throughout the State of California, will be faced with
for the balance of Fiscal Year 2003-04 through Fiscal Year 2004-05 at a minimum. As Council is aware,
cities are facing extraordinary increases in medical, PERS, and general liability expenses all of which are
surmountable in the short-term. What has thrown the City's budget into a potential tailspin in the short-
term is the threat, and perhaps reality of being out off from the much needed Vehicle License Fee backfill.
Lodi's VLF backfill is $5.4 million over a two-year period. We are opposed to the State not keeping its
commitment to pay the backfill to local governments.
Throughout the State, cities are struggling with the VLF backfill issue and have advocated that citizens be
made aware that layoffs and service cuts should be attributable to the State's action. As it has been
coined, "these budget cuts are being brought to you courtesy of the State."
In reaction to the VLF issue, and proactively in anticipation of other budget shortfalls, the City Manager
convened meetings with staff over the course of the last two months to begin preparing for the fiscal
challenges. Mr. Flynn subsequently encouraged department directors to evaluate their respective "core
missions." In other words, what must they do within their departments to maintain core services for the
City. What ensued was a hard look at citizens', elected officials', and staff's expectations for certain
standards of services within our community. The City Manager next created a menu of budget
suggestions including basics such as an overall reduction in travel and business expenses to more
specific reductions. The suggestions were then identified as Phase I reductions which will be addressed
immediately and Phase II and Ill reductions which will need, in some cases, much further discussion and
debate.
APPROVED:
, City Manager
The Phase I suggestions are as follows and may be implemented immediately:
Phase 1
2003-2004
2004-2005
ICMA survey fee
(6,000)
(6,000)
Leadership Lodi & UOP
(2,300)
(5,400)
Skate park
(30,000)
(65,000)
City Manager reduction in travel expense
(8,000)
City Manager reduction in benefits
(10,000)
ISD training budget reduction
(40,000)
Finance - change final notification process
(8,000)
Eliminate unencumbered GASB 34 funds
(10,000)
HR freeze job reclassification studies
(3,450)
Library reduce maint & repair duplication
(8,000)
Library reduce summer reading club supplies
(1,200)
Defer purchase of sod cutter for year
(5,000)
Total 18 mos.
(12,000)
(7,700)
(95,000)
(8,000)
(10,000)
(40,000)
(8,000)
(10,000)
(3,450)
(8,000)
(1,200)
(5,000)
2,385,062 1,784,512 4,169,574
The City Manager will review the budget challenges with Council and will additionally discuss the various
Phases of recommendations should the VLF backfill not be restored to the City of Lodi. The City
Manager will introduce his budget committee.
FUNDING: Not Applicable
Ja t S. Keeter
D puty City Manager
is"I
The Phase I suggestions are as follows and may be implemented immediately:
Phase f
2003-2004
2004-2005
Total 18 mos.
ICMA survey fee
(6,000)
(6,000)
(12,000)
Leadership Lodi & UOP
(2,300)
(5,400)
(7,700)
Skate park
(30,000)
(65,000)
(95,000)
City Manager reduction in travel expense
(8,000)
(8,000)
City Manager reduction in benefits
(10,000)
(10,000)
ISD training budget reduction
(40,000)
(40,000)
Finance - change final notification process
(8,000)
(8,000)
E=liminate unencumbered GASB 34 funds
(10,000)
(10,000)
HR freeze job reclassification studies
(3,450)
(3,450)
Library reduce maint & repair duplication
(8,000)
(8,000)
Library reduce summer reading club supplies
(1,200)
(1,200)
Defer purchase of sod cutter for year
(5,000)
(5,000)
131,950
76,400
201;350
The City Manager will review the budget challenges with Council and will additionally discuss the various
Phases of recommendations should the VLF backfill not be restored to the City of Lodi. The City
Manager will introduce his budget committee.
FUNDING: Not Applicable
Janet . Keeter
Dep ty City Manager
J5K/sl
AGENDA ITEM 1-2
&Ift CITY OF LODI
COUNCIL COMMUNICATION
TM
AGENDA TITLE: Discussion and Appropriate Action Regarding Budget Deficit and Vehicle
License Fee Backflh impacts to the City of Lodi
MEETING DATE: December 17, 2003
PREPARED BY: Deputy City Manager
Addendum
RECOMMENDED ACTION: That Council discuss and taking the appropriate action regarding the
impending budget challenges and shortfalls as anticipated due to
the Vehicle License Fee backfill, and rising costs of CaiPERS,
medical, and general liability.
BACKGROUND INFORMATION: This list is provided to Council as an introduction of the City
Manager's Budget Review Committee comprised of business
leaders. He will work with these individuals who are well -versed in
budgets and who have a pulse on the community. These Committee members are to be commended
for graciously volunteering their time. In addition, the City Manager is recommending that a much
broader citizen's committee be formed in the near future to further assist in budget reviews.
City Manager's Budget Review Committee:
(Business Representatives)
Dennis Bennett
Bill Huyett
Annette Murdaca
Debbie Olson
Randy Snider
Kent Steinwert
Bob Wheeler
Leon Zimmerman
FUNDING: Not Applicable
APPROVED:
4�'
J et S. Keeter, Deputy City Manager
H. Dixdn Flynn, City
I
General Fund --The Challenge
/
Value of
6 mo 2004
2004-05
Grand Total GF positions
Adjustments to amounts budgeted
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)
Skate Park
30,000
65,000
95,000
Golden Handshake
200,000
400,000
600,000
Unrestricted Capital
(2,232,000)
(2,232,000)
Fund Balance Adjustment 112
774,236
774,236
sub total
229,728
(1,155,525)
(925,797)
Revenue lost - VLF
2,680,606
2,680,606
5,361,212
$
2,910,334
$ 1,525,082
$ 4,435,416 .68
I
General Fund Recommended Adjustments
Phase I
ICMA survey fee
Leadership Lodi & UOP
Skate park
City Manager reduction in travel expense
City Manager reduction in benefits
ISD training budget reduction
Finance - change final notification process
Eliminate unencumbered GASB 34 funds
HR freeze job reclassification studies
Library reduce maint & repair duplication
Library reduce summer reading club supplies
Defer purchase of sod cutter for year
Value of
6 mo 2004 2004-05 Total 18 mo GF positions
(6,000) (6,000)
(12,000)
(0.,1.8)
(2,300) (5,400)
(7,700)
(0.12)
(30,000) (65,000)
(95,000)
(1.48)
(8,000)
(8,000)
(0.12)
(10,000)
(10,000)
(0.15)
(40,000)
(40,000)
(0.62)
(8,000)
(8,000)
(0.12)
(10,000)
(10,000)
(0.15)
(3,450)
(3,450)
(0.05)
(8,000)
(8,000)
(0.12)
(1,200)
(1,200)
(0.07)
(5,000)
(5,000)
_ (0.281
(131,950) (76,400) (208,350)
(3)
a
AGENDA TITLE: Discussion and Appropriate Action Regarding Budget Deficit and Vehicle
License Fee Backfill Impacts to the City of Lodi
MEETING DATE: December 17, 2003
PREPARED BY: Deputy City Manager
Addendum
RECOMMENDED ACTION: That Council discuss and taking the appropriate action regarding the
impending budget challenges and shortfalls as anticipated due to
the Vehicle License Fee backfill, and rising costs of CaIPERS,
medical, and general liability.
BACKGROUND INFORMATION: This list is provided to Council as an introduction of the City
Manager's Budget Review Committee comprised of business
leaders. He will work with these individuals who are well -versed in
budgets and who have a pulse on the community. These Committee members are to be commended
for graciously volunteering their time. In addition, the City Manager is recommending that a much
broader citizen's committee be formed in the near future to further assist in budget reviews.
City Manager's Budget Review Committee:
(Business Representatives)
Dennis.Bennett
Bill Huyett
Annette Mardaca
Debbie Olson
Randy Snider
Kent Steinwert
Bob Wheeler
Leon Zimmerman
FUNDING: Not Applicable
APPROVED:
J et S. Keeter, Deputy City Manager
H. Dixdn Flynn, City
I]ataCyCles Roseville Budget Survey g -Random Sample - 7103 (Final)
Average Score Ranking of General Fund Services
Fire Fighting Response (1481
Police Emergency Response (1480
Emergency Med. / Paramed. Response (1477,
Roadway Projects To Reduce Congestion (1467
Investigation of Crimes Against Persons (1458;
Routine Police Patrols (1473,
Traffic Signal Timing / Coordination (1457
Emergency Preparedness (1465;
Hazardous Materials Response (1449;
Street and Sidewalk Repair (1471;
Investigation of Property Crimes (1461;
Traffic Enforcement (1468;
Long-range Land Use Planning (1411,
Public Facilities (1467;
Neighborhood Parks (1471)
Fire Prevention/public Fire Safety Ed (1468;
Book / Media Acquisition and Lending (1431,
At -Risk / Youth Offender Programs (1422;
Teen Programs, Centers, and Activities (1472)
Branch Libraries (1469;
Open Space, Wetlands, & Nature Areas (1437)
Economic Dev.(pob Attraction/ Retention) (1430)
Neighborhood Clean-up (Dumpsters) (1440;
Police Officers Assigned To Schools (1430;
Teen & Youth Library Services (1462)
Youth Sports & Enrichment Programs (1467)
Housing For Families, Seniors, Disabled (1430;
Investigating Misdemeanor Crimes (1446)
City Sports and Athletic Fields (1457)
Reinvestment in Neighborhoods (1371)
NEW -Ambulance Transport Services (1324)
Street Sweeping (1457)
Response to Non -injury Traffic Accidents (1454)
Public Pools & Swimming Lessons (910)
Community Centers & Gymnasiums (1442)
NEW -Expanded 6/A School Child Care (1398)
Weekly Mowing of School Fields (1435)
Flood Alert System (1397)
Support for SS, Community Agencies (1403)
Community Information Publications (1431)
Senior Programs and Classes (1477)
Permit Center Services (1335)
City Website (1393)
Sign Enforcement (1399)
Noise and Nuisance Complaints (1453)
Redevelopment of Central Roseville (1416)
Special Events, Programs, Concerts (1445)
Coalition of Neighborhood Assoc. (1317)
Maidu Interpretive Center (1337)
NEW -Sale of Books, CD's, DVD's (1391)
Public Computers / Internet Access (1436)
Adult Sports, Programs, and Classes (1463)
Tourism Promotion (1417)
Citizens' Benefit Grants To Nan -Profits (1287)
Public Art (Murals, Sculptures, etc.) (1439)
Channel 11 Cable TV (Council Meetings) (1411)
NEW -Indoor Pool With Lessons (1403)
Spanish Language Materials (1425)
Services are ranked from highest to lowest importnace. based on average scores using a 1-5 rating scale (6= highesti. ISM surrey mapondwAs rated services. Numbers shown
in Parentheses are the number of respondents who rated that service.
The Phase I ."taggestions are as follows and may be implemented immediately:
Phase
131,950 76,400 206,360
The City Manager will review the budget challenges with Council and will additionally discuss the various
Phases of recommendations should the VLF backfill not be restored to the City of Lodi. The City
Manager will introduce his budget committee.
FUNDING: Not Applicable
Janet . Keeter
Dep ty City Manager
JSK/sl
2003-2004
2004-2005
Total 18 mos.
ICMA survey fee
(6,000)
(6,000)
(12,000)
Leadership Lodi & UOP
(2,300)
(5,400)
(7,700)
Skate park
(30,000)
(65,000)
(95,000)
City Manager reduction in travel expense
(8,000)
(5,000)
City Manager reduction in benefits
(10,000)
(10,000)
ISD training budget reduction
(40,000)
(40,000)
Finance - change final notification process
(8,000)
(8,000)
Eliminate unencumbered GASB 34 funds
(10,000)
(10,000)
HR freeze job reclassification studies
(3,450)
(3,450)
Library reduce maint & repair duplication
(8,400)
(8,000)
Library reduce summer reading club supplies
(1,200)
(1,200)
Defer purchase of sod cutter for year
(5,000)
(5,000)
131,950 76,400 206,360
The City Manager will review the budget challenges with Council and will additionally discuss the various
Phases of recommendations should the VLF backfill not be restored to the City of Lodi. The City
Manager will introduce his budget committee.
FUNDING: Not Applicable
Janet . Keeter
Dep ty City Manager
JSK/sl