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Home My WebLink AboutAGENDA REPORT 1998 0204 CC REG ITEM 10FAGENDA REPORT CITY OF MOORPARK TO: Honorable City Council 135. .-L(a7) ITEM 1044 C; `r M- 00RPA 7K, Cnt Tr'ORNIA City counwil Meetili'- C �P{Ni.�ar �( -1991 FROM: The Budget and Finance Committee A,. < =1: t�bnrF,veci wr�h (Mayor Hunter and Councilmember Wozniak) ri LA Steven Kueny, City Manager vc�: " DATE: January 28, 1998 (CC Meeting of February 4, 1998) RE: Recommendations for Expenditure and Revenue Options to the City's Parks Maintenance Assessment District (AD 85 -1) BACKGROUND The Budget and Finance Committee (Committee) met on January 7, 1998 and January 21, 1998 to discuss options to the City's Parks Maintenance Assessment District. As you will recall, the City's 13 year -old Parks Maintenance Assessment District (Assessment District 85 -1) was, for all practical purposes, dissolved by the passage of Proposition 218. The special tax proposed by the City Council to replace that historic revenue stream, Measure "P," did not receive the 2 /3rds support necessary for passage at the November, 1997 election. Over the two meetings, the Committee reviewed all areas of the General Fund and identified several expenditure reductions which would, at a minimum, partially offset the parks maintenance budget for FY 98/99 (which was $606,930 in FY 97/98). Based upon a general discussion held on January 7, 1998, the City Manager returned with a listing of recommended expenditure reductions for consideration by the Committee. DISCUSSION Staff presented the Committee with several expenditure reduction proposals. The Committee reviewed the City Manager's recommendations. The following table outlines these potential expenditure reductions, with columns indicating the City Manager's recommendations and the Committee's recommended actions. - Uty Manager/ bua et ana rmance committee Kecommenaea meaucuons Department Description FY 97/98 FY 98/99 CM B&F Savings Savings Rec Comm City Council Annual Citizen $1,000.00 $1,000.00 Recognition Event City Training /Mileage for $3,170.00 $3,170.00 Manager Assistant to the City Manager Position 00005k; Memorandum to the Budget and Finance Committee Recommendations for Expenditure Reductions /Revenue Increases January 28, 1998 Page 2 Department Description FY 97/98 FY 98/99 CM B &F Savings Savings Rec Comm City Additional Hour per $5,351.00 $5,945.00 Manager day for Executive Secretary job share Position City Clerk Conflict of Interest $800.00 $3,600.00 Appraisals City Clerk Municipal Code $4,000.00 $4,000.00 Updates City Clerk Election Costs $247.00 $5,500.00 City Clerk City Home Page $0.00 $600.00 City Clerk City Newsletter $0.00 $800.00 Admin Svcs. Redirect Site /Space $25,000.00 $25,000.00 Needs Survey to the City Hall Imp. Fund Admin Svcs GFOA Accounting $3,700.00 $3,700.00 Seminar Admin Svcs' Chamber of $0.00 $5,000.00 Commerce Directory Admin Svcs LAN Development $0.00 $12,324.00 Costs Admin Svcs Laptop $3,585.00 $6,000.00 * Computer /Docking Station Admin Svcs INTERNET Home $1,200.00 $1,200.00 * Page Upgrade Admin Svcs Addt'I Activity $0.00 $1,400.00 Brochure Pages Public Country Days Police $0.00 $5,000.00 Safety Coverage Public Eighth Grade DARE $0.00 $75,600.00 Safety Officer (net of $18,000 MUSD Contr.) 000057 Memorandum to the Budget and Finance Committee Recommendations for Expenditure Reductions /Revenue Increases January 28, 1998 Page 3 Department Description FY 97/98 FY 98/99 CM B &F Savings Savings Rec Comm Comm. Project Pride $0.00 $10,000.00 Svcs. Contribution Comm. Recreation Brochure $0.00 $500.00 Svcs.2 Layout Comm. Brochure Mailing $0.00 $1,000.00 Svcs.2 Comm. Brochure Printing $0.00 $2,500.00 Svcs.2 Comm. Commission $0.00 $1,500.00 Svcs. Attendance at CPRS Comm. LAN Development $0.00 $4,963.00 Svcs. Costs Comm. Adaptive Program $0.00 $3,260.00 Svcs. Comm. Easter Egg Hunt $0.00 $1,825.00 Svcs. Comm. Halloween $0.00 $1,525.00 Svcs. Comm. Mardi Gras $0.00 $430.00 Svcs. Comm. Tree Lighting $0.00 $1,695.00 Svcs. Comm. Teen Music Festival $0.00 $2,555.00 Svcs. Comm. Kids First Festival $0.00 $2,400.00 Svcs. Comm. Volunteer Recognition $0.00 $850.00 Svcs. Comm. Recreation $0.00 $5,020.00 " Svcs. Celebration Comm. Breakfast with Santa $0.00 $410.00 Svcs. 00008 Memorandum to the Budget and Finance Committee Recommendations for Expenditure Reductions /Revenue Increases January 28, 1998 Page 4 Department Description FY 97/98 FY 98/99 CM B&F Savings Savings Rec Comm Comm. July 3rd Fireworks $0.00 $11,000.00 * Svcs. Comm. Reduce Park $0.00 $10,500.00 * Svcs. Fertilizations from six to four per year Comm. Eliminate Sunridge $0.00 $13,440.00 * Svcs. Rainy Day Service at Parks Comm. Convert Country Trail $0.00 $27,200.00 * Svcs. Park to a Detention Basin Assessment District Comm. Close Virginia Colony $0.00 $10,825.00 * Svcs. Park Comm. Close Monte Vista $0.00 $15,000.00 * Svcs. Park Comm. Reduce Equivalent of $0.00 $17,160.00 * Svcs. 2080 hours of part- time staff by eliminating Open Gym and Teen Programs Senior Ctr. Instructors, leaders, $0.00 $2,300.00 and entertainment Senior Ctr. Special supplies for $0.00 $2,000.00 classes, certificates, luncheons Senior Ctr. Senior Games $0.00 $1,500.00 Senior Ctr. Volunteer Banquet $0.00 $2,300.00 Cable TV Special Filming $0.00 $14,000.00 Projects TOTAL (Budget & Finance Recom. $40,106.00 $194,897.00 The City Manager reported to the Committee that this expenditure could be an expense of the Moorpark Redevelopment Agency rather than the General Fund. ()()()05!3 Memorandum to the Budget and Finance Committee Recommendations for Expenditure Reductions /Revenue Increases January 28, 1998 Page 5 2 The savings noted would result from the recommended reduction of brochure production from 4 to 3 per year. With respect to the elimination of the eighth grade DARE officer, it was the Committee's recommendation to direct the Police Chief to approach the Moorpark Unified School District (MUSD) to increase its level of support for this program to at least 50% of the total program's costs for both the eighth and fifth grade DARE programs. Currently, the MUSD funds about $34,000 of the two positions. Each position spends about 70% of the year on DARE activities and the balance on collateral assignments. The City Manager noted that Moorpark may be the only community in Ventura County to have a DARE officer at the eighth grade level, with Camarillo having no DARE program at all. While it is the Committee's recommendation to maintain this position, the Committee's support was directly contingent upon the MUSD contributing more resources to the DARE program. Absent that support, the Committee's recommendation could be subject to change. REDIRECT GENERAL FUND ITEMS TO OTHER FUNDS Staff also reviewed the potential of utilizing funding sources other than the general fund for certain operational items. The following table describes these proposals and the impact to the general fund: Department Description Redirect to General Fund Savin s Public Safety Non - Personnel Costs of Traffic Safety $14,063.00 Public Safety Contract to Fund extent of Fund Balance ($167,250 of eligible expenses) - ONE TIME ONLY All Departments Redirect costs in accordance Several $185,126.00 with reviewed duties Funds (Includes Elimination of the Assistant to the City Manager Position) - CONTINUING SAVINGS TOTAL: $199,189.00 The five major components of the $185,126 in savings to the General Fund are: (1) the elimination of the Assistant to the City Manager position ($42,571)', (2) the redirection in allocation of the Assistant City Manager position's salary and benefits from 80% General Fund to 60% General Fund ($33,866), (3) the change in allocation of the City Clerk, 00®°vO Memorandum to the Budget and Finance Committee Recommendations for Expenditure Reductions /Revenue Increases January 28, 1998 Page 6 Deputy City Clerk, and Records Clerk positions' salary and benefits from 90% General Fund /80% General Fund /506 /o General Fund, respectively, to 70% General Fund for all three positions ($24,139), (4) the redistribution of the City Hall Maintenance Worker position from 100% General Fund to 55% General Fund (based upon the general overhead allocation formula) ($21,733), and (5) the redistribution of the Personnel Technician position's salary and benefits from 80% General Fund to 41 % General Fund (based upon FTE per department allocation) ($18,725). Note that the Assistant to the City Manager position was budgeted for less than one year in FY 97/98 (causing a savings of approximately $27,500 in FY 97/98). If it were budgeted at a full year, the savings in FY 98/99 would have been approximately $70,000. The following table shows the impacts of all of the proposed redirections on each of the City's funds. A positive number is a DECREASE in the amount charged for salary and benefits to that fund. FUND NET POSITIVE/(NEGATIVE) IMPACT ON FUND General $185,125.89 AB 939 (General Fund - Restricted) ($90,363.75) Solid Waste (General Fund - Restricted) $65,555.00 Traffic Safety ($1,345.45) Local Transit ($15,105.39) Crossing Guard $213.66 AD 85 -1 ($341.45) AD 84 -2 $1,759.94 Community Development ($63,652.00) City Housing $400.92 MRA Housing $1,603.66 Gas Tax ($29,524.17) MRA $17,055.31 The proposed redirection of general fund costs to other funds includes a net favorable reduction in staff costs attributed to the MRA of about $17,000. This is important, since staff will be bringing additional information to the Committee related to the scheduling of the payback of the MRA's loan from the City's General Fund. 0060GI Memorandum to the Budget and Finance Committee Recommendations for Expenditure Reductions /Revenue Increases January 28, 1998 Page 7 Note that the Committee did not come to a recommendation related to the $185,126.00 in General Fund cost redirections, except for elimination of the Assistant to the City Manager position. The item has been left in this report for continued discussion by the Committee and the Council. REVIEW OF FY 96/97 SAVINGS AND PRIOR YEAR SET - ASIDES The City Council set -aside a total of $169,000 from FY 96/97 general fund savings for potential use for parks maintenance costs in FY 98/99. Staff has also received the draft FY 96/97 audit and has concluded that there is an additional $100,000 in operational savings (due to even fewer expenditures and an even larger increase in revenues in FY 96/97). This $100,000 could be used as a one time contribution to the parks maintenance effort or other purposes. Once this number is confirmed, it could be used in FY 99/00 in the same manner as the $169,000 set aside. The Budget and Finance Committee will also be reviewing the FY 97/98 Budget to consider other potential expenditure savings. REVENUE OPTIONS Given the desire to maintain the City's long -term revenue stability, the City Council may wish to consider revenue options, including the presentation of a new revenue source to the voters in 1998. This may include a business licence tax or a general parcel tax. Should the Council decide to pursue one or more of these options, staff would provide revenue estimates. The Committee only briefly discussed the potential for revenue options and has not, yet, made a recommendation thereon to the Council. The City Manager recommended consideration of new revenue sources based upon the fact that the City's General Fund was limited even before the passage of Proposition 218. The City's relatively low sales and property tax revenues and low staffing level has resulted in a heavy workload for staff (in terms of both volume and breadth of responsibilities) and little flexibility for considering needed service expansions. It should be noted that the recent staffing increases in the Public Safety division were only possible due to federal and state grant money becoming available. Additionally, the State Legislature passed certain legislation that may restore some of the funding redirected during the earlier years of this decade. Unfortunately, full restoration is not likely (Moorpark continues to lose approximately $400,000 per year compared with pre -1990 revenue streams). While some additional revenue is expected to result from these legislative actions, the actual magnitude of the impacts are uncertain at this time. SUMMARY The following table summarizes the impacts of the above: 00002 Memorandum to the Budget and Finance Committee Recommendations for Expenditure Reductions /Revenue Increases January 28, 1998 Page 8 ITEM DESCRIPTION ONE TIME SAVINGS CONTINUED SAVINGS 1 Fiscal Year 97/98 Savings $40,106.00 $0.00 2 Fiscal Year 98/99 Savings (Budget and Finance Committee) $0.00 $194,897.00 3 Traffic Safety Fund Redirections $14,063.00 $0.00 4 Personnel Fund Redirections $0.00 $185,126.00 5 Set Aside from FY 96/97 $169,000.00 $0.00 TOTALS: $223,169.00 $380,023.00 RECOMMENDATION Consider the recommendations of the Budget and Finance Committee and the City Manager and direct staff as deemed appropriate. W(A)GS