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Home My WebLink AboutBudget FY 2001-20032001-2003 FINANCIAL PLAN AND BUDGET Alan Nakanishi, Mayor Phillip A. Pennino, Mayor Pro Tempore Susan Hitchcock, Council Member Emily Howard, Council Member Keith Land, Council Member H. Dixon Fiynn, City Manager Prepared by the Staff of the City of Lodi CITY OF LODI, CALIFORNIA -5r City of Lodi Mission Statement “The City of Lodi’s purpose is to enhance the quality of lfe for Lodi residents reflecting our 1’ high community standards. REPORT PRODUCTION AND ANALYSIS Budget Review Team H. Dkon Flynn, City Manager Janet S. Keeter, Deputy City Manager Janet L. Hamilton, Management Analyst, Administration Joanne Narloch, Human Resources Director Maxine Cadwallader, Revenue Manager Vicky McAthie, Finance Director Ruby Paiste, Accounting Manager Cory Wadlow, Accountant Departments Jerry Adams, Chief, Police Ann Areida-Hintz, Senior Services Coordinator, Community Center Roger Baltz, Parks & Recreation Director, Parks & Recreation Konradt Bartlam, Community Dev. Director. Community Development Frank Beeler, Asst. WaterWastewater Superintendent, Public Works Susan Bjork, Management Analyst Trainee, Parks and Recreation Susan Blackston, City Clerk, City Clerk’s Office Sharon Bla~&q Management Analyst, Public Works George Bradley, Street Superintendent, Public Works Dennis Callahan, Fleet and Facilities Manager. Public Works James Doyle, Manager, Rates and Resources, Electric Utility Kirk Evans, Senior Management Analyst. Human Resources Fran Forkas, WaterWastewater Superintendent, Public Works Betsy Gandy. Management Analyst. Police Tony Goehring, Economic Development Coordinator. Administration Randall Hays, City Attorney, City Attorney‘s Office Cynthia Haynes, Community Promotions Coordinator, Administration Stan Helmle, Information Systems Manager, Information Systems Roger Houston, Chief Building Inspector. Community Development Del Kerlin, Wastewater Assistant Treatment Superintendent, Public Works Charlene Lange, Community Center Director, Community Center Nancy Martinez, Library Senices Director, Library David Morimoto, Senior Planner, Community Development Joanne Narloch, Human Resources Director, Human Resources Peggy Nicoh, Legal Secretary, City Attorney’s Office Verne Person, Fire Division Chief, Fire Mike Pretz, Fire Chief, Fire Richard Prima, Public Works Director, hblic Works Boris Prokop, Manager, Rates and Resources, Electric Uthty Steve Raddigan, Fire Division Chief, Fire Jim Siemers, Building Inspector, Community Development Roy Todd, Data Processing Manager, Information Systems Linda Tremble, Administra tive Secretary, Electric Utllay Alan Vallow, Electric Utility Director, Electric Utility Theresa Yvonne, Arts Coordinator. Community Center TABLE OF CONTENTS PREFACE . HOW TO USE THE FINANCIAL PLAN DOCUMENT ...................................... i SECTION A . INTRODUCTION Graph . Funding Source All Funds Combined ................................................................... A-1 Graph . Total Operating. Capital and Debt Service ............................................................. A-2 Budget Message ......................................................................................................... A-3 GFOA Distinguished Budget Presentation Award ................................................................ A-9 Organization of the City .............................................................................................. A-11 Directory of City Officials ........................................................................................... A-27 Resolution Adopting the Financial Plan and Budget ............................................................ A-29 SECTION B . POLICIES AND OaTECTIVES Overview .................................................................... ... ................ B.1 General Budget Policies Financial Plan Organization ...................................................................................... B-3 Budget Administration ............................................................................................. B-3 General Revenue Management ................................................................................... B-4 Recreation and Community Center Fees ....................................................................... B-5 Enterprise Fund Fees and Rates ................................................................................. B-6 Other Fees and Rates .............................................................................................. B-6 Revenue Distribution ............................................................................................... B-7 Appropriation Limitation .......................................................................................... B-9 Designated Fund Balances ...................................................................................... B-10 Investments ........................................................................................................ B-10 Capital Financing and Debt Management .................................................................... B-11 Capital Improvement Management ............................................................................ B-13 Human Resource Management ................................................................................. B-14 Productivity Reviews ............................................................................................ B-16 Contracting for Services ......................................................................................... B-17 Cost of Services ................................................................................................... B-18 Carryover Policy ........................................................................................................ Fleet Policy ....................................................................................................... B-20 Major City Goals Overview., ......................................................................................................... B-22 Summary of Major City Goals ................................................................................. B-22 Summary of Major City Objectives ........................................................................... B-24 Overview ................................................................................................ B-27 Public Safety Building ....................................................................................... B-28 DeBenedetti ParMG-Basin .................................................................................. B-29 Indoor Sports Center ......................................................................................... B-30 Major City Projects TABLE OF CONTENTS Civic Plaza Veterans Monument ............................................................................................................ B-33 Animal Shelter Facility ...................................................................................................................... B-34 SECTION C . COMMUNITY PROFILE Oveniew ................................................................................................................................................. C-1 SECTION D . OPERATING ACTIVITIES Overview ................................................................................................................................................. D- 1 Operating Expenditure Summaries Overview ............................................................................................................................................ D-5 Operating Expenditures by Mission .................................................................................................... D-6 Operating Expenditures by Activity .................................................................................................... D-7 Public Safety Police Protection Police Administration ................................................................................................................... D-9 Police Operations ....................................................................................................................... D- 11 Police Investigations .................................................................................................................. D- 13 Animal Shelter ........................................................................................................................... D- 15 Administration ........................................................................................................................... D- 16 Emergency Services ................................................................................................................... D- 18 Fire and Life Safety .................................................................................................................... D-20 Tr ....................................................................................................................................... D-22 Support Services ........................................................................................................................ D-24 Grafliti Abatement ..................................................................................................................... D-26 Fire and Hazardous Mated .. Other Safety Services Public Utilities Water Utilrty Services ....................................................................................................................... D-27 Electric Utility Services .................................................................................................................... D-33 .. Wastewater Uthty Services .............................................................................................................. D-30 Transportation Streets and Flood Control Street Maintenance .................................................................................................................... D-49 Street Trees ................................................................................................................................ D-51 Street Cleaning ........................................................................................................................... D-52 Par@ Lot Maintenance ........................................................................................................... D-54 Transit System ........................................................................................................................... D-55 TABLE OF CONTENTS Leisure. Cultural and Social Services Parks and Recreation Parks and Recreation Commissions and Committees .................................................. D.57 Parks and Recreation Administration ..................................................................... D-58 After School Playgrounds ......................................................................... D-60 Y outh/Teen Sports .................................................................................. D-61 Indoor/Outdoor Activities ......................................................................... D-63 Aquatics ............................................................................................... D-65 Concessions .......................................................................................... D-69 Sports Facilities ..................................................................................... D-70 Lodi Lake Park ...................................................................................... D-72 Other Parks ........................................................................................... D-74 Park Program ........................................................................................ D-76 Equipment Maintenance ........................................................................... D-78 Library Board ................................................................................................. D-80 Library ......................................................................................................... D-81 Community Center Commissions ......................................................................... D-83 Community Center ........................................................................................... D-85 Arts Specialty Classes ....................................................................................... D-87 Cultural Activities ............................................................................................ D-88 Human Relations (CDBG/HOME funds) ................................................................ D-89 Recreation Services Adult Sports .......................................................................................... D-67 Parks Maintenance Cultural Services Social Services Community and Economic Development Community Development Commissions ..................................................................... D-91 Community Improvement ....................................................................................... D-92 Current and Advanced Planning ............................................................................... D-94 Construction Development Building and Safety .......................................................................................... D-96 Engineering. ................................................................................................... D-98 Economic Development Economic Development ................................................................................... D-100 Community Promotion .................................................................................... D-103 General Government Legislation and Policy General Administration City Council ................................................................................................. D-105 City Manager ................................................................................................ D-106 Solid Waste Management ................................................................................. D-108 Public Works Administration ............................................................................ D-109 TABLE OF CONTENTS Legal Services City Attorney ................................................................................................................................. D- 111 Records Administration (City Clerk) .............................................................................................. D-112 Election Administration .................................................................................................................. D-114 Human Resources .......................................................................................................................... D-115 Administrative Services Citywide Training ........................................................................................................................... D-117 Risk Management ........................................................................................................................... D-118 Information Systems ....................................................................................................................... D-120 Data Processing Senices ................................................................................................................ D-122 Finance Administration ................................................................................................................... D- 124 Accounting Services ....................................................................................................................... D-126 P~rchasing ...................................................................................................................................... D-130 Field Services ................................................................................................................................. D- 132 Facilities Services ........................................................................................................................... D- 134 Fleet Services ................................................................................................................................. D-136 General Support ............................................................................................................................. D-138 Worker's Compensation ................................................................................................................. D-139 General Liab@ ............................................................................................................................. D- 141 Other Insurance .............................................................................................................................. D-143 Benefits Administration .................................................................................................................. D-145 Citywide Utilities ............................................................................................................................ D-147 Contingencies ................................................................................................................................. D-148 Revenue Services ........................................................................................................................... D-128 Organization Support Services Non-Departmental Services SECTION E . CAPITAL IMPROVEMENT BUDGET Overview ................................................................................................................................................. E- 1 Seven-Year Capital Improvement Budget General Fund ................................................................. E-4 Public Utilities .................................................................................................................................... E-6 Transportation .................................................................................................................................. E-6 Leisure, Cultural and Social Services ................................................................................................. E-7 Community and Economic Development ........................................................................................... E-7 General Government .......................................................................................................................... E-7 Funding Source .................................................................................................................................. E-8 Public Utilities .................................................................................................................................. E-16 Transportation .................................................................................................................................. E-45 Leisure, CM & Social Services ................................................................................................. E-47 Summary of Expenditures by Activity Public Safety ....................................................................................................................................... E-6 Summary Description of Each Major Project Public Safety ....................................................................................................................................... E-9 TABLE OF CONTENTS Community & Economic Development ........................................................................................... E-67 General Government ........................................................................................................................ E-70 Capital Budget Detail by Mission . Replacement Vehicles ............................................................... E-82 SECTION F . DEBT SERVICE REQUIREMENTS Debt Service Requirements . City ............................................................................................................. F-1 Summary of Annual Payments by Mission ................................................................................................ F-2 Summary 0fAnnua.l Payments by Source ................................................................................................. F-3 Computation of Legal Debt ..................................................................................................................... F-4 Computation of Direct and Overlapping General Bonded Debt .............................................................. F-4 SECTION G . CHANGES IN FUND BALANCE Overview Introduction ............................................................................................................................................. G- 1 Organization of City Funds ...................................................................................................................... G-2 Fund Balance . All Funds Combined ....................................................................................................... G-3 Table . All Funds Combined Appropriation Summary ....................................................................... G-4 Table . All Funds Combined Summary of Changes in Fund Balance ................................................. G-6 General Fund ........................................................................................................................................... G-7 Graph General Fund Revenues and Sources ...................................................................................... G-8 Graph General Fund Expenditures ..................................................................................................... G-9 Library Fund ..................................................................................................................................... G- 10 Street Fund ....................................................................................................................................... G-11 Transportation Development Act Fund ............................................................................................ G- 12 Police Special Revenue Fund ........................................................................................................... G-14 Capital Outlay Fund ......................................................................................................................... G- 15 Equipment Fund ............................................................................................................................... G- 16 Debt Service Fund ................................................................................................................................ G-17 Enterprise Funds Water Utility Fund ............................................................................................................................ G- 18 Wastewater Utility Fund ................................................................................................................... G-19 Transit Fund ................................................................................................................................ G-21 Benefits Fund ................................................................................................................................... G-22 Self Insurance Fund ......................................................................................................................... G-23 Vehicle Replacement Fund .................................................................................................................... G-24 Trust and Agency Fund .......................................................................................................................... G-25 Individual Fund Balance Statements Special Revenue Funds Block Grant Fwd ............................................................................................................................. G-13 Capital Project Fund Electric Utllrty Fund ............................................................................................................................... G-20 Internal Service Funds PREFACE 2001-03 FINANCIAL PLAN AND BUDGET HOW TO USE THE FINANCIAL PLAN DOCUMENT This budget and financial plan is divided into the nine sections listed and described below. The financial tables are organized to provide hancial information for four years: last year actual (1999-00); current year budget (2000-01); the requested budget (2001-02); and the proposed budget (2002-03). The City appropriates the budget annually and uses the projections in the second year to anticipate known sipficant changes in revenues and expenditures for financial planrung purposes. The budget is not adjusted for inflation in the second year (proposed budget) with the exception of major revenues. You will note that niost of the financial and statistical information is organized by mission These are broad categories of service provided by the City and basically parallels the service categories used to prepare the State Controller's Report. By using this format, the City can readdy develop comparative data to measure performance and productivity. Another benefit of this format is to de-emphasize Department budgets and the relationship between departments. By focusing the budget and financial plan on the Crty's missions, the City is promoting the teamwork required to deliver services. Section A - Introduction Includes the Budget Message, a Directory of City Officials and an Organization Chart. Section B - Policies and Objectives Summarizes general budget policies and new sidcant policies that guide in the preparation and management of the budget. This section also includes major City goals. Section C - Budget Graphics and Summaries Provides tables and graphs to highlight key financial relationships and trends. Section D - Operating Activities Presents the Cay's operatjng activities around the Cay's major service missions that allow the City to accomplish the following tasks: * Establish policies and goals, which define the nature and level of services to be provided. * Ident~ activities performed in delivering these services. * Propose objectives for improving the delivery of service. * Identlfjl and appropriate resources required to provide services, accomplish objectives and provide Ezcilities. The City's operating activities are organized into six major missions which in many instances cross departmental lines and funding sources: * Publicsafety * Public Utilities * Transportation * Leisure, Cultural and Social Services * Community and Economic Development * General Government 2001-03 FINANCIAL PLAN AND BUDGET Section E - Capital Improvement Budget Presents the City's Capital Improvement Budget which includes all construction projects, maintenance projects and capital purchases which cost more than $10,000. The Capital Improvement Budget and Capital Improvement Plan allow the City to systematically plan, schedule and finance capital projects in conformance with City policies. Section F - Debt Service Requirements Summaries of the Crty's debt obligations. Section G - Changes in Fund Balance Provides combined and individual statements of revenues, expenditures and changes in fund balance for each of the City's operating funds. Section H - Financial and Statistical Tables Includes Summaries necessary to integrate the other Sections of the Financial Plan into a comprehensive operations and financial planning document. Section I - Budget Reference Material Describes major policy documents, includes a Budget Glossary and provides budget preparation guidelines. WBES ALL FUND8 COMBINED I 2001 -02 ALL FUNDS COMBINED - $1 23,931 ,963 1 Tax Revenues $20,003,026 $20,680,297 $22,192,477 $22,710,612 Licenses and Permits 1,405,934 1,423,183 1,484,670 1,502,445 Finer and Forfeitures Investment/ Property Revenues 3,796,161 5,987,826 4,157,049 4,174,270 Revenue from Others 11,218,065 11,879,932 12,347,271 14,748,131 54,105,389 54,123,878 62,133,737 61,037,361 Other Revenues 2,089,65 1 399,197 462,535 468,220 93,246,502 95,413,507 103,479,984 105,390,349 Other Sources (Uses)/Resetves 3,892,257 10,692,671 20,251,979 37,433,925 I $‘I 0,703,17‘1 $1 1,307,578 $12,9’18,125 $13,480,725 Public Utilities 17,726,609 17,789,977 18,070,315 18,072,963 3,382,590 3,246,242 4,343,843 4,593,761 Leisure, Cultural 8: Social Services 4,424,339 4,751,939 5,002,495 5,135,270 CommuniZy 8 Economic Development 2,47541 3 2,638,375 3,261,635 3,255,215 General Governmeni 10,439,507 ‘10,933,732 12,709,195 13,032,600 Bulk Power Purchase 27,722,088 36,571,476 30,551,000 30,551,080 11,325,762 21,919,089 31,502,298 49,422,641 Debt Service 3,864,165 3,706,263 3,707,000 3,704,770 91,463,944 112,864,671 122,145,906 141,248,945 !Fund Balance 1,586,057 1,575,329 TAX INVESTMENTI 21 % OTHERS PUBLIC UTILITIES TRANSPORTATION PUBLIC SAFETY DEBT SERVICE CAPITAL PROJECTS GBVERNMEMT BULK POWER A- 1 1999-00 2006-01 200~-02 2002-03 ACTUAL BUDGET BUDGET BUDGET ~ 3peraling Programs 2apitel Projects 3ebt Service 3ulk Power =und Balance 48,551,929 50,667,843 56,385,608 57,570,534 '1 -I ,325,762 21 $1 9,069 31,582,298 49,422,641 3,864,165 3,7063,283 3,707,000 3,704,770 27,722,088 36,571,476 30,551,600 30,551,000 5,674,815 (6,758,493) 2,586,057 1,575,329 FUND BALANCE A-2 Wm 6. 366nnzi61. MAYOR 964 2. 3??ino Susan jfi/c6coc6 MAYOR PRO TEMPORE COUNCIL MEMBER GmJy2 jY,d %&6and COUNCIL MEMBER COUNCIL MEMBER OFFICE OF THE CITY MANAGER Cin HALL, 22 1 WEST PINE STREET LODI, CA 95240 (209) 333-6700 FAX (209) 333-6807 %ddZ Xays CITV ATORNEY June 27,2001 Honorable Mayor, Members of the City Council and Citizens of the City of Lo&: I am pleased to present the two-year Financial Plan and Budget for Fiscal Years 2001-2003. This Plan and Budget was developed through the efforts of the City Council, City staff and members of the public during a series of meetings that began in November 2000. The result of this effort is a balanced Budget with sufficient reserves for unanticipated contingencies. Accordingly, the City Council on June 27, 2001, approved Resolution Number 2000-166 appropriating funds for Fiscal Year 200 1-2002 and approving the Budget Plan for 2002-2003. The table below summarizes the beginning fund balances, revenues, expenditures, other sources and uses, and the projected fimd balances for the Fiscal Year beginning July 1, 200 1. FUND General Fund Library Fund Sweet Fund Transportation Development CDBG Fund Police Special Revenue Fund Capital Outlay Fund Equipment Fund Debt Service Fund Water Utility Fund Wastewater Utility Fund Electric Utility Fund Transit Fund Benefits & Self Insurance Funds Vehicle Replacement Fund Trust and Agency Fund BALANCE 3,799.915 148,483 4,279,534 124,393 179,307 4,775.681 1,218,240 2,479,620 9293,628 1,042,055 2,299,098 424,668 1,010,011 REYENUES EXPENDlTURES 26,73 1.965 1,386,145 3.746.255 1,969,688 975,000 769.163 4,461,570 4,273,886 4,900,788 49,080,090 1,792,190 3,172.932 220,3 12 30,109,599 1.1 79,835 4,336,500 865,691 769,163 12,985,185 67,000 1,275,205 4,121,890 5,138,600 53,169,005 3,072,053 4,674,680 358,000 23,500 SOURCES& (USES) 3,377,634 (140,703) (1,383.91 8) (1,987,873) ( 109,309) 1 1,382,795 67,000 1,275,205 (739,749) (870,145) 5,755,702 1.5 1 1,460 1.765,68 1 358,000 (9,800) BALANCE 3,799,915 2 14,090 2,305,371 106,209 179,307 7,634.861 630,487 1,37 1,664 10,960,415 1,273,652 2,563,031 424,668 1,197.023 TOTAL 31,074,633 103,479,984 122,145,906 20,251,979 32,660,692 A description of the City’s Budget policies, goals, objectives, and an individual description of the City’s major capital projects is included in Section B (Policies and Goals). A description of operating activities with specific budgets, a list of significant budget changes and departmental objectives for the next two years is described in Section D (Operating Activities). A listing of the City’s budgeted capital budget projects at various stages of planning and development is provided in Section E (Capital Budget). A- 3 FACTORS INFLUENCUUG THE FINANCIAL PLAN State and Local Economy The Electric power crisis has been the number one topic on the minds of Californians. The citizens of Lodi have been somewhat protected from this crisis and have continued to experience competitive rates and reliable service. Our City’s forefathers’ decision so many years ago to purchase an electric utility has once again proved beneficial to the citizens. The City’s Electric Utility has been very successful in not only meeting the needs for electricity of Lodi’s citizens but also of other cities through its sales of surplus electricity. The City of Lodi is experiencing an unprecedented year of economic growth due to a tremendous increase in building permits and an exciting surge in economic development projects. Lodi, limited by a 2% growth cap, is on the verge of many changes with particular emphasis on new subdivisions, the continued revitalization of its Downtown, and renewed interest in business park activities. In addition, Lodi’s surrounding rural area provides a solid base of agricultural businesses including grapes, chemes, almonds, and includes numerous dairy farms. The agricultural relationship with the City of Lodi encourages agribusiness and tourism for the community and surrounding area. The Lodi Conference and Visitors Bureau (LCVB) promotes the many attractions in the region to include wineries and City facilities. The City’s many public facilities lend themselves to regional sporting events, small to medium-sized conferences, and general gathering points. State Legislative Actions The State Legislature introduced a number of Bills that would impact local sales tax revenues by either introducing new exemptions or by changing the method of allocation. The State Board of Equalization and the Assembly and Senate Revenue and Taxation Committees estimate the minimum impact of these Bills is $1.4 billion for local governments. Due to the State’s power crisis and budget problems, a number of Bills were suspended or are being held under submission. City staff members are monitoring these Bills, and others, that may impact our sales tax revenues. THE BUDGET IN BRIEF The City uses a two-year Financial Plan and Budget concept to emphasize long-range planning and effective management of services. Thus, this Budget should be viewed in the context of past fiscal prudence, along with the expenditure and revenue projections for the next two years. In the 2001-02 Budget, increases of 8% are projected for all funds combined in both revenue and expenditures. Fund balances for all funds combined are projected to increase $1.6 million (5%). The following is a summary of the significant changes in the City’s Operating Budgets: General Fund General Fund revenues are projected to be 4% or $1,064,823 higher in 2001-02. This is a conservative estimate that reflects increases of $1,073,158 in tax revenues and $120,540 in revenue from others. These increases are offset by decreases in fmes and forfeiture ($2 16,949), investment and property revenues ($14,974) and other revenue ($1 4,826). In March 2000, the City Council approved the Cash Flow Model created by the City’s Financial Advisor. This Model outlined growth assumptions for the various revenue categories based on examination of the historical performance as well as forecasts from other municipal agencies, independent recognized experts, and the State. As shown on the pie chart below, the City receives approximately 62% of General Fund revenues from taxes. The Property tax, Sales tax, and In-Lieu Franchise tax receipts account for the largest portion of tax revenue. The increase in industrial and residential construction and the upturn in property values should result in additional property tax revenues above the 2.5% growth outlined in the cash flow model. A conservative 3.75% growth estimate was used again this year to project sale tax revenues for 2001-02 although the prior years actual receipts have come in higher than the estimate. By City policy, the In-lieu Franchise taxes are levied based on prior year revenues. Transporation Leisure, Cultural 8 Public Safety Social Services Government The pie chart above shows the breakdown of operating expenditures by Mission: Public Safety services 42%, Transportation services 7%, Leisure/Cultural services 13%. Community and Economic Development services 11% and General Government services 27%. Operating expenditures are projected to increase 14% or $3,685,233 in 2001-02. The bulk of this increase can be attributed to: seven new full-time positions hded by the General Fund; an increase in PERS rates; an increase in overtime due to the numerous Capital Projects currently underway; a large increase in various grants which will be offset by revenue; and, salary increases as approved in the Memorandums of Understanding (MOU) with the City’s various bargaining units. There is $811,297 of increases in significant expenditures and staffing changes for General Fund activities recommended by the City Manager. $82,750 of this increase is to pay for one-time expenditures. The City staff will continue to actively look for grants to offset the increase in General Fund expenditures. Overall, the General Fund remains strong with a fund balance of $3.7 million, 12.6% of projected expenditures. City Council policy targets a reserve of 15% but allows for variations from year-to-year to account for economic and fiscal changes. Library Fund Library revenues are projected to increase 14% with the largest portion received from two sources: 79% or $1,100,710 from property tax and 15% or $206,455 from various Library grants. Two items account for the low (5%) increase in expenditures in 2001-02: the Library Board has approved the use of the Private Sector Trust Fund money for one-time capital expenditures; and, since the Library is a City facility, the General Fund will be charged for the cost of the utilities starting in 2001-02. Water Utility Fund Revenues are projected to increase slightly (5% or $190,886) in the Water Fund in 2001-02. The expenditure level has been reduced to meet the City policy of a target of 15% fund balance reserve. Staff is reviewing hture infrastructure replacement needs and will be returning to Council with recommendations at a later date. In addition, Council will be hearing discussions on possible rate increases in 2001-02. Wastewater Utility Fund Revenues and expenditures in the Wastewater Fund are projected to remain basically at the 2000-01 levels. Revenues increased approximately 1% or $56,788 while total expenditures increased 2% or $1 18,960. The Wastewater Utility staff is evaluating a possible upgrade andor expansion of White Slough to meet mandatory discharge requirements. They will be presenting their recommendations to Council at a later date. Council will also be hearing discussions of possible rate increases in 2001-02. Electric Utility Fund The revenues in the Electric Fund are projected to increase $4,505,090 (10%) and operating expenditures are projected to increase $831,240 (7%). The Electric Utility is also recommending $8.7 million in capital projects for fixther evaluation and study by the City Council. Due to the deregulation of the Electric Utility industry and the sale of the City’s surplus electricity to other agencies, the bulk power costs are projected to decrease $6 million in 2001-02. However, this projected decrease in costs may be impacted by recent Legislative actions imposing price caps on the utilities. The Fund Balance of $10.9 million does not include the balance of approximately $34.3 million in restricted cash from the proceeds of the Certificates of Participation for long-term capital projects. A-5 Debt Service In 1995 and 1996 the City obligated a total of $15.1 million in Certificates of Participation for General Fund capital projects, principally for Hutchins Street Square, Downtown Revitalization, Cherokee Lane Beautification, and the City Hall Renovation. The annual debt service of approximately $1,275,000 per year will be serviced with property taxes distributed to the Capital Outlay Fund - General Fund in accordance with City Council policy on page B-8. Under current Debt Management Policies found on page B-12, the City is in compliance with existing bond covenants. SIGNIFICANT BUDGETED PROJECTS The basic purpose of this Budget is to implement the City Council’s goals described beginning on page B-22. These goals and the City’s Budget Policies are the foundation for the two-year Financial Plan. There are several priority projects that the City Council approved for the 2001-03 Financial Plan. These projects are: Public Safety Building Remodel & Expansion. The existing Public Safety Building is 30+ years old and has many mechanical and design deficiencies. Constructing a new building and remodeling the old building providing additional working space plus parking and related site improvements is estimated to cost $17.4 million. Before the City commits to this expense, a thorough evaluation of the building will be made in concert with an assessment of suitable alternatives. The City Council approved setting aside $1.5 million a year starting in 2000-01 into a separate fimd toward the cost of the project. The 2001-03 Financial Plan projects this transfer in both 2001-02 and 2002-03. In addition, $4 million has been designated in the Governor’s Budget for this project. DeBenedetti ParWGBasin. The project consists of design and development of a youth sports complex (with lighted fields) and park within the “G-Basin”, which provides storm water storage in the area. This project is one of the three highest unranked projects identified by the Parks and Recreation Commission. The estimated cost of this project is $6.2 million. Staff is currently working to identify possible fbnding sources for this project. Indoor Sports Center. The City of Lodi relies heavily upon the Lodi Unified School District and San Joaquin County facilities to accommodate the needs for local and regional basketball, volleyball and indoor activities. Youth participation in indoor activities continues to climb, and in recent years, the Parks and Recreation Department has had to turn away children wishing to participate due to lack of facilities. This project consists of development and construction of an approximately 30,000 square-foot building to provide space for a gymnasium, bathrooms, ofices and meeting rooms for community use. It is estimated to cost $5.7 million. A plan will be developed for Council review to show funding sources for this project. Outdoor Skate Park. The citizens and elected officials have expressed a desire for an outdoor skate park to be used by all age groups and skill levels. A steering committee was appointed to ensure community input into the project. This committee recommended a private company for operations of the skate park at Kofu Park. The estimated cost is $538,000. Aquatics Center. For years, the City has had a Joint-Use Agreement in place for the use of pools belonging to Lodi Unified School District to accommodate the aquatics needs of the community. Strong interest has been expressed to pursue consulting services to develop plans for an aquatics center to reduce the reliance upon the school pools. The estimated cost of this project is $3 million. 0 Civic Plaza Veterans Monument. The community is very proud of the sacrifices our Veterans have made on behalf of our Country. As a show of respect and gratitude, the proposed project will create an All Veterans Monument. A Veterans Advisory Committee was established to evaluate construction, marketing, finance and event planning. The City will provide the $450,000 in funds for construction which will be repaid by fund-raising activities. A-6 Animal Shelter Facility. The Lodi Animal Shelter was built in the 1960’s to service a community of approximately 26,000. As most shelters built at that time, its purpose was to be a “dog pound” i.e. a place to impound stray and vicious dogs before euthanizing them. The current shelter cannot meet the newly mandated State laws or fUlfill the expectations of a community eager to provide more humane animal care. A committee was established to receive community input and make both short and long-term recommendations. The short-term recommendations for more cat cages, portable leased building, etc. are being implemented. The long-term recommendation was to construct an animal facility that is compliant with State law and meets the City’s projected requirements for animal welfare and control. The estimated cost of this project is $2.5 million. In addition to the aforementioned projects, the City of Lodi will be evaluating the feasibility of leasing land to ProStyle Sports for the construction of a regional sports complex. This project has been on the drawing board for a number of years with the Environment Impact Report coming to completion Fall 2001. The proposed project encompasses approximately 400 acres of City-owned land adjacent to 1-5 and two miles south of Highway 12. Amenities include 60 fields for soccer, baseball, softball and football, a field house, hotel accommodations and ancillary features such as an RV park, retail shopping, and eateries. CONCLUSION The 2001-02 Financial Plan and Budget is a balanced plan for fimding City services. Services will continue at levels approved by the City Council in prior years. Growth is limited to those activities and programs that can be fully funded with new fees or projected revenue growth. Promoting economic growth, public safety and leisure/cultural services remain the City’s high priority programs. Continued emphasis on policies and programs that promote economic growth not only benefit business, industry and residents, they also increase the revenues needed for City services. Accordingly, a conscientious effort was made to evaluate all Budget requests in light of the City Council’s economic and service priorities. Acknowledgment I wish to thank the Department Heads and their staff for their cooperation and responsiveness in preparing this Financial Plan. I would also like to commend Janet Keeter, Deputy City Manager, Vicky McAthie, Finance Director, Ruby Paiste, Accounting Manager, and Janet Hamilton, Management Analyst for their professionalism and effort in preparing this Plan and Budget. It would not have been possible to prepare this Budget in a timely and accurate manner without their hard work and dedication. I commend their efforts in preparing, reviewing and critiquing this Budget. The Finance Department, in particular, is also to be recognized for their involvement in the Budget process. The Government Finance Officers Association (GFOA) has again presented the City of Lodi with a Distinguished Budget Presentation Award for the previous two-year Budget. I believe this Financial Plan and Budget continues to conform to program requirements and will be submitted to GFOA for evaluation. Respectfully submitted, H. DixonFlynn City Manager HDF/sl A-7 This page intentionally left blank GOVERNMENT FINANCE OFFICERS ASSOCIATION PRESENTED TO City of Lodi, California “An Outstanding Policy Document” For the Biennium Beginning July 1, 1999 Executive Director The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Lodi, California for its biannual budget for the fiscal year beginning July 1, 1999. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. This award is valid for a period of two years. The City of Lodi has received the Distinguished Budget Presentation Award since 1995. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. A-9 A-1 1 r- L. .- S .- E I I 1 A-12 ? I w Community Center Community Center Director Adminislra tive Secrelary Senior Services Coordinator Arts Coordinator II Senior Facilities Maintenance Worker Aquatics Supervisor Stage Tech Manager Facilities Maintenance Worker 1/11 (2) 9 current full-time positions 8-14-01 L 4 0 I U I m 4 A-14 tlectric Utility Department Sr. Administrative Clerk 3 Administrative Adniinistrative Clerk (2) Secretary I I I I I I CONST. 8 MAINTENANCE Electric Utility Superintendent ELECTRIC SERVICES Manager, Electric Services I I Y u I 1 I 1 TECHNICAL 1 SERTS I 1 Electric Systems Senior Electric Supervisor Troubleshooter CONST. 8 MAINTENANCE BUS IN ESS PLANNING 8 MARKETING 1 Manager, Business Manager Rates B Planning 8 Resources Marketinq ENGINEERING Manager Engineering 8 i Operalions I - Electrical ‘-1 I Engineer , Electrical Technician (2) 50 current full-time positions Utility Rate Electric Trouble- Electric Lineman/ shooter (2) Senior Electrical Estimator Electrical Estimator (3) UTILITY OPERATIONS Utility Operations Supervisor I Utility Service Operator 1/11 (3) Utility Service Operator 1111- Relief Electric Drafting Technician METERING Q Electric Meter Technician Metering Electrician 8-14-01 I 1 A-16 ? L -4 Fire Department Fire Chief Q Administrative FirelLife Safety _7 Fire Division Chief Sr. Administrative Clerk Information Fire Division Chief I Operations I Fire Battalion Chief (3) r- Fire Captain (12) Fire Inspector u Fire Engineer Fire Fighter 1/11 /I Fire Battalion Chief 55 current full-time positions 8-14-01 ? Y 00 Human Resources Department Human Resources Director Personnel Operations Management Analyst Trainee Risk Management Senior Human Resources Analyst Administrative Services Human Resources Technician Administrative Clerk Confidential (2) 6 current full-time positions 8-14-01 j h m L L .- I +- I A-19 I 03