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HomeMy WebLinkAboutAGENDA REPORT 1998 0506 CC REG ITEM 10I/D ? -13 ►---, - , q ' 111Y,. C1TY OF MOORPAIM CALIFORNIA CITY COUNCIL AGENDA REPORT cuyconsenm wng � may �.lagg Ac1 oN-. C o f i n is ed ho TO: The Honorable City Council Adjjourned meet -,ng b 51 /_ FROM: John E. Nowak, Assistant City Manager DATE: 20 April 1998 (Council meeting of 05- 06 -98) SUBJECT: TRANSMITTAL OF PROPOSED FY 1998 -1999 OPERATING AND CAPITAL IMPROVEMENTS BUDGET AND PROPOSED GOALS AND OBJECTIVES Discussion: During the City Council meeting on May 6, the City Manager will transmit to the Council his recommended City of Moorpark Operating Budget and Capital Improvements Budget for the Fiscal Year beginning July 1, 1998. Recommendation: That the City Council conduct a budget workshop at a Special Meeting on May 13, 1998 and then refer the Budget documents to the Council's Budget and Finance Committee for review, and that June 3, 1998 be established as the date for Council's formal consideration of the proposed FY 1998 -99 Operating and Capital Improvements Budget. 000100% AGENDA REPORT CITY OF MOORPARK TO: The Honorable City Council FROM: Steven Kueny, City Manager , DATE: May 5, 1998 (CC Meeting of May 6, 1998) SUBJECT: Proposed 1998/99 Goals and Objectives BACKGROUND: For the past several years, the City Council has approved Goals and Objectives for the City. Prior to the 1996/97 FY, the Council had designated a number of objectives for each department. All of the potential objectives were listed and a number of them were selected as the highest or high priorities. Generally, only a few objectives were actually accomplished. This reflected the ambitious plan that it was, the relatively small staff, the moderate amount of staff time available for working on objectives vis -a -vis the routine day -to -day responsibilities, and the changing of priorities during the year as the Council and staff addressed unanticipated items or items requiring attention due to external or internal factors. Beginning with the 1996/97 FY, a new approach was developed. The Council approved a list of seven citywide goals that reflected the City's overall commitment to its Mission Statement. It also attempted to have a more direct relationship with the budget process. The list of potential objectives was pared down by eliminating routine and ongoing items. The Citywide goals were developed to reflect City priorities across all departments. This process was used in 1997/98. The City Manager also recommended ten (10) objectives from the list to receive primary focus for 1997/98. The City Council opted to continue with the practice of identifying several objectives in support of the seven (7) adopted goals. DISCUSSION: Attached is the list of proposed "Goals and Objectives for FY 1998/99." It shows the changes from the 1997/98 approved objectives in legislative format. Only a few objectives were able to be accomplished during 1997/98 and are shown with a strikeout. The order of the listed objectives does not denote a suggested priority. The responsible department is noted in abbreviated form in parentheses after the objective; e.g., City Manager's office is shown as (CM), City Clerk's office as (CC). Although there may be more than one department tasked with work on a specific objective, only the department with primary responsibility is shown (except for a few objectives) . In past years, City departments also prepared a list of "Added and Unanticipated Items" addressed during the year. In the interest of having staff stay focused on routine assignments and projects, we did not compile the list for the current year. Any such items requiring continuing work by staff have been included in the proposed objectives for 1998/99. The City continues to address options for the loss of Park Maintenance Assessments (AD 85 -1) resulting from the enactment of Proposition 218 and the subsequent failure of a special tax measure. The City must address the need for additional revenue and /or further expenditure reductions. Related to this is the need for additional staffing. The Council opted not to pursue the Organization and Management Study in 1997/98 and redirected the funding to the Moorpark Mosquito Abatement District (MMAD) dissolution process. In my report to the Council at the February 4, 1998, meeting concerning reorganization of certain responsibilities, I estimated that the City needed between five (5) and seven (7) positions to be more adequately staffed to address the current and projected work load. In addition, in response to the loss of parks maintenance funding, we have not filled the Assistant to the City Manager position. The responsibilities of this position were transferred to various other staff as part of the above - mentioned reorganization. The staffing level and ability to fund additional staffing relative to workload needs to be addressed. Two other items not included in the list of objectives should be considered. The first is City entry signs. I believe this is an important item for enhancing the attractiveness of the community. The Council, however, has declined to fund this in the past. The second item is creation of a future vision for the City beyond what is contained in the General Plan. Several other cities including Simi Valley have conducted such strategic planning exercises usually with a 20 to 25 year vision. Regardless of the outcome of the current proposals for retention of open space and agricultural lands, the City Council may want to consider such a program. Current staff, however, does not have time to adequately address such a program and existing revenues are not sufficient to fund consultant services for this in 1998/99. STAFF RECOMMENDATION: It is recommended that the City Council approve Goals and Objectives for FY 1998/99. SK:db Attachment c: \ccagenda \obj98.99m CITY OF MOORPARK Mission Statement, Goals, and Objectives . (Approved by City Council CITY OF MOORPARK Mission Statement, Goals, and Objectives CITY MISSION STATEMENT Striving to preserve and improve the quality of life in Moorpark. DEPARTMENTAL GOALS AND OBJECTIVES FOR FY 199'$ °.. /9.9, '10,6/907 A. Expand and encourage community involvement in establishing the general policies of the City and increase the public's understanding of local government operations. 1. Coordinate City's annual goal setting process. (CM) 2. Conduct a community -wide survey to measure the level of satisfaction residents feel about City services, develop a program to regularly solicit public input and feedback regarding service satisfaction, and continue to implement a system to track customer requests and complaints. (CC)-( 3. Develep and - implement -, City fnedia pelley to ensure t e adept- renal means of Frovid �g cia;'rent information to the public about-- evets, Po rams, issues,-,,,and tolicies throughr,the City's Internet `Hame..PPage,, °g�v �rnment "cable` channel., marquee signs' releases; ' and 6f= -ry_rl �. C r jr ,� l v. r es i deneee and businesses, internet and -eab l e televisien— FCC- &,,(cc) in eeerd4:natlen with the varieus • �^, , _-�., LC:7etit "Mee'rpark's" munieipal gey EM} Staff. 2 C: \citymgr \obj9899.a does ;nbt:' havefE =,time °t "o devote tQ thi.,s, :reconsider in the fu�ua a :: 5. Develop a general emergency preparedness manual for distribution to Moorpark residents. The manual will outline how to prepare for, and what to do following a disaster. (AS) 6. Prepare a brochure explaining City Services. (CC) 7. Tape 25 heurs e€ -Mee r r___ t i._ t i e EM (a} specs "l Cat sponsored erntsr .meetings for ,.... replay supporting public information and community promotion efforts and evaluate the feasibility of taping a video about Moorpark City government. (CC)`f (AS) event (CC) annual Citizens' Recognition 9. Increase services offered at the Police Resource Center, including expanded hours. (PS) B. Revitalize downtown Moorpark with a focus on High Street and the surrounding business district and residential neighborhoods. 1. Coordinate the City's efforts to resolve concerns with day laborers. (MRA) 2. Work with VCTC and SCRRA to landscape the railroad frontage property along Moorpark Avenue, including the vacant area west of the south Metrolink parking lot. (CS) 3. Development of Gisler Field for housing uses or sell property. (MRA) 4. Develop plan to relocate post office to a downtown location. (AS) 3 C: \citymgr \obj9899.a 6. Prepare placement of landscaping and downtown identification sign at southwest corner of High Street and Spring Road and install High Street directional signs. (AS) 7. She -rear develop plan for use of all Moorpark Redevelopment Agency owned property in the downtown. (AS) 8. Design and construct electrical system for decorative lighting on High Street, utilizing recently constructed underground conduit system. (PW) 9N Comp3:;ete} the concept al design for imp e-e-ent en west stele —e€ Spring Road from the railroad tracks south to Los Angeles Avenue, to 10. Complete the Downtown Specific Plan and process GPA, zoning code amendments and environmental document and commence implementation upon adoption. (CD) 11. Implement Neighborhood Preservation Program. (CD) C. Improve traffic circulation and mitigate impacts on the movement of traffic through the City. 2. Coordinate revisions of Los Angeles Avenue Area of Contribution, Tierra Rejada /Spring Road Area of 4 C: \citymgr \obj9899.a Contribution, and Gabbert and Casey Roads Area of Contribution. (PW) 3. Monitor and coordinate City's oversight of Ventura County's design and environmental review of proposed improvement /realignment of Moorpark Road south of Tierra Rejada Road. (PW &!) 4. Initiate process to have the Route 23 and Route 118 freeway extension projects placed on the State Transportation Improvement Program (STIP) and assist with determining actual future alignment. (PW) 5. Work with Caltrans to complete a number of projects including: (PW) a) b). - 70 UT 5 C: \citymgr \obj9899.a g) (PW) 6. Propose legislation to allow cities and counties more discretion in establishing speed limits which are enforceable by Radar. (PW) 7. Acquire right -of -way and prepare design for adding one additional travel lane in each direction and a raised center median on New Los Angeles Avenue and Los Angeles Avenue [SR 1181 between the Route 23 freeway and Tierra Rejada Road, with construction planned for 1997. (PW) 8. Provide support to efforts required to develop the design for the extension of Spring Road north of Charles Street, including an analysis of the prerequisites for the realignment of State Route 23 to this street. (PW) 10. In conjunction with processing of Specific Plan No. 2, prepare amendment to Circulation Element to consider redesignation of State Route 23 to Spring Road from its proposed intersection with Walnut Canyon Road south to New Los Angeles Avenue. (CD & PW) 11. Administer contract for Arroyo Simi Trail feasibility study. (PW) 12. Evaluate the desirability of adopting formal traffic policies. (PW) 13. Widen Peach Hill Road east of the Spring Road intersection. (PW) D. Strengthen the City's fiscal well -being and long -range financial growth. 6 C: \citymgr \obj9899.a 1. Develop proposed Business License Program for consideration by the City Council. (AS) 2. Update 5 -year financial projections. (AS) 3. Develop business retention and attraction programs and networking program with existing businesses and attract new businesses, incl4dr�3�the preParation Qf a marketing broO,,ui nd reJated', materials. (MRA) 4. When feasible, assist private property owners of commercial and industrial zoned property to get their property readied for development to better City /Agency response to development proposals requiring quick turn- around. (MRA) 5. Evaluate creation of a document processing fee. (CC) 6. Revise park land dedication ordinance and Park Master Plan including evaluation of existing Park Improvement Fund Zones and evaluate adequacy of current parks improvements fee for commercial and industrial development. (CS) 7. Develop schedule to amortize and fund replacement of park amenities, facilities and related equipment. (CS) 8. Submit the seven -year Capital Improvement Program (CIP) for City Council's consideration. (PW) 9. Develop an ordinance to establish development related fees. (CD & AS) 10. Evaluate City's status relative to jobs /housing balance and determine if City has sufficient amount of property zoned for industrial uses. (CD) 11. Implement Cost Recovery Program for Code Enforcement. (CD & AS) 12. Evaluate alternatives for addressing the effect of Proposition 218 on funding sources and service levels 7 C: \citymgr \obj9899.a AS) 13. Develop improved cost and time accounting addressing when to use flat fee amounts instead of deposits. (AS, PW & CD) E. Reduce the potential for juvenile crime through intervention and prevention efforts. 1. Evaluate feasibility of establishing a teen center. (CS) 2. 4. for "late night" activities. ReereatzenGenter. (CS) use. (GS) c p11 ed e feasibility and interest few — teen ., at Are a Vista 6. Explore the feasibility of a skateboard facility at Arroyo Vista Community Park. (CS) Digs —and Aleehel. (PS & GS) — C}ngoang, this ]..a.st 8 C: \citymgr \obj9899.a F. Enhance the delivery of services and expand program efficiencies. 1. Conduct an Organization and Management Study and prepare an implementation plan. (CM & AS) 2. Coordinate City's efforts for proposed transfer of Waterworks District No. 1 to the City. (CM) regareling eperatlenal 19 9ttes fer the Meerpark 13ibrar and Distriet€unel-ing issites. (Gs) Complet�d; now pax Dpament� {e- ealuate- VISTA East'9zeurth year of seryieke -and deve -le x-a- reeefrtei3elat}ear ---gar ling the p ss; bl .. eentinuatien of the- seryie.'e, petentia1 funding fincettre , and air- alternati alternative .,.rre nt seL -vice. �C ' S. Completed 6. As authorized by Government Code Section 53069.4, prepare an ordinance making any violation of any ordinance subject to an administrative fine or penalty. (CA) 7. Analyze impacts and opportunities of state authorized restructuring of electrical utility industries. (AS) 8. Analyze potential for franchising of telephone services providers that provide cable television services. (AS) 9. Develop cost centers for each department where possible to eliminate general distribution of operation and maintenance expenses. and elegy =elep i-eal ti-n= billing rate -€er G effwftunity - frervieesBepartment-- sta€f. (AS) 9 C: \citymgr \obj9899.a 10. Develop long -term proposal for new City Hall, police station, council chambers, teen center, auditorium, and other government offices'`K nd devel'ota;tlan: =ta implement (AS) 11. Develop system to track time for Recreation personnel 12. Analyze - alternativ Construct expansion of Senior Citizens Center including drop ceiling and additional office space. (CS) 13. Prepare conceptual design for Phase II of Arroyo Vista Community Park, including 4 to 8 tennis courts. (CS) 14. Develop an analysis of alternative methods to provide Public Works Inspections services, including the addition of an in -house position as part of proposed Organization and Management Study. (PW) 15. Use the software developed for the Pavement Management System to develop data bases for inventories for street signs, pavement markings, rights -of -way improvements and various Public Works functions to track and schedule maintenance. (PW) pie- de- per}eing enfereement and asseme -ether reepensibili ee ,PwT Cot fe ed 17. Prepare standard development project conditions of approval used for each type of entitlement. (CD) 18. Update the Subdivision Ordinance and present it to the City Council for adoption by June 30, 199 -&9. (CD) 10 C: \citymgr \obj9899.a 19. Complete a policy and procedures manual for code enforcement activities. (CD) 20. Develop Citing Procedures for City Council action. (CD) C©mpll,,eted 22. Prepare and implement procedures for review and inspection of Landscape and Irrigation Plans for development projects. (CD) 23. Retain consultant to update Housing Element and process GPA and environmental document by June 30, 1999. (CD) 24. Consider formal customer service program. (CC)'' M) 25. Evaluate alternatives for combining building and safety and engineering divisions with the planning division in the same facility. (AS & CD) 26. Prepare an' Accounting' P01icaSes and` Procedures Manual'. (AS) 27 28 :>f 29. Implemen'tf the,: Local `lea ;1Network, (LAIN) nd Internet 30. City..., 11 C: \citymgr \obj9899.a G. Reinforce and enhance Moorpark's attractive community character and safeguard its desirable resources. 1. Work with Ventura County Fire Prevention District to consider siting a fire station in the Campus Park area of the City. (CM) 2. Plan and conduct an emergency response exercise involving the City Council and a simulated emergency response drill. (CM) 3. Complete disaster contingency plan for computer systems. (AS) 4. Complete removal of billboard from Agency managed property. (AS) 5. Develop program guidelines for City Council consideration for use of Art in Public Places and Tree and Landscape fees. (CS & CD) 6. Apply for "Tree City U.S.A." designation. (Upon adoption of amended Tree Ordinance.) (CS) 7. Prepare Storm Water Quality Ordinance as required by N.P.D.E.S. (PW) 8. Finish preparation of Floodplain Ordinance per F.E.M.A. requirements. (CE) 9. Consistent with City Council direction, prepare a proposed Growth Management Ordinance. (CD) met- e3— Grraree . St2edled '„v come et inn by , 11. As part of Specific Plan No. 8, amend and update the General Plan Safety Element to include the Specific Plan No. 8 area and information related to active 12 C: \citymgr \obj9899.a faulting and new seismic hazard zones throughout the City and process environmental document. (CD) 12. Administer contract to complete the updated OSCAR Element of the General Plan and process GPA and environmental document and:-update;,the Park Master Plan by June 30, 1994. (CD & CS) 13. Consider enhancement of open space and greenbelt areas. (CD) 14. Process General Plan amendment and Zoning Code amendment to create a Natural Open Space land use designation and zone district as initiated by City Council in 1995 and process other code amendments as directed by the City Council. (CD) 15. Appreve eeneeptual desig etermine means to fund future maintenance costs for neighborhood park in the Carlsberg Specific Plan -std. (CS) 16. Prepare a Business Recovery Plan. (AS) 1.7,. 18. Cooperatet with private' :efforts ;> fQr construction of Campesan; .Park 19.' 13 C: \citymgr \obj9899.a AGENDA REPORT CITY OF MOORPARK TO: Honorable City Council FROM: Steven Kueny, City Manager v DATE: May 5, 1998 (CC Meeting of May 6, 1998) SUBJECT: City Manager's Budget Message for Fiscal Year 1998/99 The City Manager's Proposed Budget for Fiscal Year 1998/1999 (FY 98/99) is presented to the City Council for its consideration. This proposed budget is presented with a projected operating deficit in the General Fund of $303,167.' This is the first time since FY 91/92 that the Council has had to face a potential operating deficit in the General Fund. FY 91/92 was the first year of the State of California's budget crisis, when the State redirected hundreds of thousands of dollars from the City and all other local government entities to allow it to balance the State Budget. In this message, I shall provide information to the Council which shall identify the major causes of this projected deficit and recount certain areas in which the Council has previously considered expenditure reductions to potentially reduce the size of the projected deficit MAJOR INFLUENCES ON THE FY 98/99 BUDGET As was generally reported in last year's budget message, the implementation of Proposition 218 will begin to impact the City during FY 98/99. Furthermore, the failure of Measure "P," the parks maintenance special parcel tax, in November, 1997 has resulted in a $610,000 reduction in revenues to the City. While the former parks maintenance assessment and proposed special parcel tax revenues would have been earmarked for parks maintenance costs, the loss of this traditional revenue stream has the potential of impacting the entire array of city services because of its negative impact on the City's General Fund. In light of this major impact, the Budget and Finance Committee and staff have been working to find ways to further curtail general fund spending in order to maintain some (if not all) of the parks maintenance programs. This has been a particularly difficult task given the following facts: ' If all of the projected FY 97/98 net operating savings of $163,713 is realized and applied and all of the proposed expenditure reductions summarized on Page 12 ($196,235) are made, the budget for FY 98/99 would show a slight surplus of $56,781. Memorandum to the Honorable City Council City Manager's Budget Message for FY 1998/1999 May 5, 1998 Page 2 (1) State redirection of traditional local revenues continue to negatively impact the City in the approximate amount of $400,000 per year (with a cumulative impact of approximately $3,200,000 over the past eight years); (2) Overall, General Fund revenues are expected to rise 4.32% or $259,889 (from $6,013,887 to $6,273,776) comparing FY 97/98 projected year end with FY 98/99 estimates of which only approximately $200,000 are fully discretionary (after adjusting for some grants and the AB 939 fees); (3) Proposed Public Safety (Police Department) expenditures, as recommended by the City Manager, are projected to increase 8.57% or $261,806 (from $3,053,854 to $3,315,660); and, (4) As reported in November 1997, the reduction of existing General Fund services by $610,000 to make -up for the elimination of the assessment district revenues will impact service levels to some extent. As you may have heard in recent news reports, health care costs are projected to rise in the coming fiscal year. While protected somewhat from this increase due to the huge buying power of PERS in the health care market, staff has projected an estimated increase of 5% in health care premiums for FY 98/99 over FY 97/98 levels. There has also been discussion in Sacramento of the State eliminating vehicle license fees for local governments. While no change in vehicle license fee revenue is proposed in this budget, future years' receipt of this revenue could be subject to change based upon actions in Sacramento. BUDGET FORMAT IMPROVEMENTS On February 4, 1998, the City Council concurred with several reorganization items presented by the City Manager. The FY 98/99 Budget has been improved in several areas and is reflective of the program responsibilities implemented in February 1998: (1) To make the document more easily readable, the Fiscal Year 1998/1999 Budget has been divided into two volumes. Volume One presents the statistical and organizational portions of the budget. It includes the data for fiscal year end projections and department requests for FY 98/99. Much of the data is also presented in a graphic format for easier comparison. Volume Two contains the line item detail sheets Memorandum to the Honorable City Council City Manager's Budget Message for FY 1998/1999 May 5, 1998 Page 3 which describe what is contained in a budget line item. (2) To better account for program based costs, several new divisions have been created within the eight Departments. These new divisions reflect the changes in tasks implemented in February 1998. Additionally, to improve the value of the budget as a management tool, the Departments of Community Development and Community Services have completed certain program shifts begun in FY 97/98. In this message, new divisions will be identified with the phrase "New for FY 98199." AUDIT RESULTS OF FISCAL YEAR 1996/1997 The annual independent audit was completed in December, 1997. The fund balances for 01 July 97 reported in the Fund Balance /Budget Summary by Fund section of the Budget reflect the fund balances reported in the audit document. While all of the City's funds are subject to audit (and information on each fund may be found in the audit document), I will reserve my comments to the General Fund and the Community Development Fund in this message. General Fund (Fund 100) The audited results of operations generally conform to the estimates reported to the Budget and Finance Committee and the City Council on February 4, 1998. After making appropriate adjustments for excess revenues over expenditures for AB 939 programs (a restricted revenue held in the General Fund), the actual savings is $296,797. Of this amount, $169,000 was designated by the Council for potential use for parks maintenance. There is enough savings to allow for an additional $100,000 which the Council may set -aside for parks maintenance. The existence of this operational savings has the effect of reducing the impact of absorbing the parks maintenance costs from the former assessment district. However, this is a ONE TIME offset and will not be available to fund future years' parks maintenance expenses. Attachment "A" provides more information of the Fiscal Year 1996/1997 audited operations. Community Development Fund (Fund 220) In this year of a projected General Fund operational deficit, it is particularly important that the historical ability of the Community Development Fund (whose revenue source is developer deposits and fees) to totally offset the costs of the Community Memorandum to the Honorable City Council City Manager's Budget Message for FY 1998/1999 May 5, 1998 Page 4 Development Department continue. In FY 96/97, the Community Development Fund was able to offset costs and show a modest gain in fund balance of $118,173 (from $214,127 to $332,300). As was projected in the Fiscal Year 1997/1998 budget message, very few new residential developments came on -line during the first three quarters of FY 97/98. However, the Director of Community Development reports that the Carlsberg /Lennar Homes RPD will be filed shortly, and possibly a limited number of units in one or more other projects will be processed in FY 98/99. Based upon these projections and the fund balance available from FY 97/98, the Community Development Department is expected to be able to remain self- sufficient in FY 98/99. ESTIMATED ACTUALS FOR FY 97/98 AND PROJECTED OPERATIONAL SAVINGS In the General Fund, it is projected that operations will result in a gross savings of $234,477. After adjusting for excess AB 939 fees, the net operational savings (defined as revenues in excess of estimates and expenditures less that budgeted) is projected to be a slight $163,713. Since this is only 2.69% of projected year end fund balance, I am not recommending any specific uses for operational savings at this time. Should actual audited results keep in line with projections, any operational savings can be used to offset the projected operational deficit in FY 98/99. GENERAL FY 98199 BUDGET OVERVIEW As mentioned above, Proposition 218 has resulted in the loss of the traditional funding source for parks maintenance activities, or approximately $610,000. As has been discussed by both the Budget and Finance Committee and the City Council on prior occasions, the loss of this magnitude of funding in one fiscal year may result in severe impacts to the existing level of service provided to the Citizens of Moorpark. Revenues Current estimates yield a modest increase of 4.32% or $259,889 (from $6,013,887 to $6,273,776) in General Fund revenues. However, a large majority of that increase is the inclusion of an estimated $129,000 in MMAD property tax revenue. Adjusting for this amount leaves a net increase of $130,889 (or a small 2.18 %) This is significantly less than the increase of 4.14% projected in last year's budget message for FY 97/98. The following table provides information on the three largest sources of income to the General Fund: property tax, sales tax, and motor vehicle in lieu fees: Memorandum to the Honorable City Council City Manager's Budget Message for FY 1998/1999 May 5, 1998 Page 5 Revenue Source FY 97/98 Projected Year End FY 98/99 Estimated Dollar Change % Change Property Tax $1,299,600 $1,343,200 $43,600 3.35% Sales Tax $1,400,000 $1,400,000 $0 0.00% Motor Vehicle in Lieu $1,137,000 $1,160,000 $23,000 2.02% IALLGENERALFUND 1$6,013,887 1 $6,273,776 $ 14.32% The increase in General Fund revenues assumes completion of the Moorpark Mosquito Abatement District dissolution proceedings and a portion of the property tax share formerly flowing to the District being redirected to the City for vector control purposes. However, the sizeable gain Moorpark realized last year in sales tax revenues is not expected to continue into FY 98/99. This is mostly due to the relocation /closure of some sales tax points of sale. Additionally, the provisions of SB 110 (Senator Dills - Sales Tax), which was passed in the last Legislature, may reduce the amount of use tax the City receives from the countywide use tax pool. Projected revenues to the General Fund also include $482,800 in interest earnings from outstanding loans to the Redevelopment Agency. As part of the proposed expenditures in the MRA and pursuant to Council direction, staff is requesting the first principal payment on the City's loan. While this is beneficial for the cash position of the General Fund, the principal payments reduce the amount of interest payable to the City in future fiscal years. The City Council should consider additional new revenue sources as it discusses the FY 98/99 proposed budget. Expenditures There are two major areas which have dramatically increased the projected expenditures in the General Fund: (1) The absorption of approximately $610,000 in parks maintenance costs, and (2) the requested increase of approximately $261,806 from the Public Safety Division (Police Department). These two areas account for 89% of the $1,023,950 increase in General Fund expenses (from $5,417,693 projected for FY 97/98 to $6,441,643 estimated for FY 98/99). Memorandum to the Honorable City Council City Manager's Budget Message for FY 1998/1999 May 5, 1998 Page 6 Departmental Highlights Because of the projected operating deficit in the General Fund, most departments are holding the expenditure line at FY 97/98 levels. Therefore, there have been few requests for service changes in the FY 98/99 Budget. City Manager's Department As part of the expenditure reductions discussed with the Council, the Assistant to the City Manager position is projected to remain vacant. City Clerk's Department The City Clerk's Department has been reorganized to incorporate the Human Resources and Public Information functions. To facilitate this assimilation, the City Clerk's Office, formerly comprised of only a single division, now has three divisions: City Clerk's Division, Human Resources Division (New for FY 98199), and Public Information Division (formerly Cable TV Division). The resultant reassignment of personnel from the Administrative Services Department to the City Clerk's Department accounts for a majority of the $51,887 increase in this Department ($248,519 projected for FY 97/98 vs. $300,406 requested for FY 98/99). Additionally, the City Clerk has requested three capital outlays related to the upkeep of the City Clerk's Indexing system, Optical Disk system, and direct connection from computer to cable TV (total: $6,520). Administrative Services Department The Administrative Services Department is requesting a significant net increase of $1,892,773 ($4,631,493 projected for FY 97/98 vs. $6,524,266 requested for FY 98/99) in expenditures due mostly to four main factors: (1) the proposed repayment of $1,117,000 from the Redevelopment Agency (Division 510) to the City on the existing loans; (2) payment of $107,000 for the downtown specific plan by the MRA; (3) an additional $132,000 in interest payments to the City from the MRA and (4) an increase of $261,806 in expenditures in the Public Safety Division (Division 501). Some savings have been realized in this division by: (1) the reassignment of the personnel function to the City Clerk's Department; and (2) the reassignment of an additional 20% (for a total of 40 %) of the Assistant City Manager's salary to the MRA. Memorandum to the Honorable City Council City Manager's Budget Message for FY 1998/1999 May 5, 1998 Page 7 It should be noted that in this proposed budget, there have been no additional costs budgeted for the Local Area Network in FY 98/99, despite a projected need for additional purchases and maintenance costs. In the Public Safety Division, several additional expenditure requests for FY 98/99 were made. Overall, the Sheriffs Business Office has estimated the costs to provide police services would rise by 8.5 %. Of this amount, 4% is estimated for salary increases and the remainder is attributable to adjustments in the County's overhead allocations. Specific items which would have particular impact on the City's General Fund include: (1) the projected cost of living increase estimated at an overall 4 %, with a 6% increase estimated for non - personnel costs, (2) the proposed shift from total to partial grant funding and partial general funding for the Administrative Assistant position {at a cost to the general fund of $7,738 for FY 98/99 }, (3) the addition of a Sheriffs Service Report Writer/Technician {at a cost of $35,294 in FY 98/99 }, (4) the purchase of a van for use by the proposed Report Writer {at a cost of $19,000 }, and (5) the projected rent for the relocated resource center {a new cost of $14,400 }. Implementation of 100% of the departmental requests would have resulted in a $305,998 total increase in expenditures in the General Fund. Given the current operational deficit projected for the General Fund in FY 98/99, 1 was unable to support the spending proposals for the SLESF grant monies as presented by the Public Safety Department. The following table displays the departmental and my proposed uses of the FY 98/99 SLESF grant in the estimated available amount of $99,500 ($66,000 from estimated FY 98/99 grant and a carry-over of $33,500 from FY 97/98): DESCRIPTION DEPT. REQUEST I C. M. RECOM. Hire Report Writer Technician $35,294 $0 Purchase Mini -Van for Report Writer $16,800 $0 Vehicle Maintenance for Mini -Van $2,293 $0 Partial Funding for Admin. Assistant $45,113 $0 Full Funding for Admin. Assistant $52,851 Allocation for Overtime $10,000 Message Board for PD and Public Works $22,000 Memorandum to the Honorable City Council City Manager's Budget Message for FY 1998/1999 May 5, 1998 Page 8 DESCRIPTION DEPT. REQUEST I C. M. RECOM. Computers $4,500 Vehicle maintenance for vehicles purchased in FY 97/98 with SLESF monies $2,000 Offset vehicle maintenance costs $8,149 TOTALS: $99,500 $99,500 With respect to these grant funded items, it is important to note that approximately $73,000 are recurring costs. If the SLESF grant not be renewed in future years, should the Council desire to continue these programs, the General Fund would be required to absorb the associated costs. In the Finance Division (Division 505), the Assistant City Manager is also requesting an additional $110,000 (net to General Fund of $30,000) for a replacement accounting software, the costs for which shall be spread across several funds. Also, new in FY 98/99 is a portion of the Assistant City Manager and Senior Management Analyst's salary and benefits in the Finance Division. In the Emergency Services Division (Division 506), a portion of the Administrative Services Manager's salary and benefits has been added to better reflect the costs of providing emergency preparedness services. In the Redevelopment Agency (Division 510), the MRA Housing (Division 512) and the City Housing (Division 513) Divisions, we are now showing proposed repayments of loans and housing rehabilitation expenses as an expenditure (rather than as a balance sheet item). For the Agency, this includes a proposed $1,000,000 principal payment on the Agency's outstanding loans to the City's General Fund, $117,000 in principal payment on loans from the MRA Housing Division and $150,000 and $30,000 from the MRA Housing and City Housing Divisions for housing rehabilitation expenses, respectively. To more accurately reflect the time dedicated to Agency operations, the portion of the Assistant City Manager's time to be charged to the MRA will change from 20% in FY 97/98 to 40% in FY 98/99. Community Development Department With respect to departmental reorganization (as reflected in the budget document), the Community Development Department has perhaps undergone the most change. Memorandum to the Honorable City Council City Manager's Budget Message for FY 1998/1999 May 5, 1998 Page 9 Compared with three divisions in FY 97/98, the Community Development Department is now comprised of five Divisions: Community Development, Building and Safety, Engineering, Code Enforcement (New for FY 98199), and Planning (New for FY 98199). Significant additional expenditures requested for FY 98/99 include the proposed upgrade of the part-time Planning Intern position to full -time Planning Technician and the upgrade of an existing part -time clerical position to full time (Clerk- Typist) to be shared with the MRA. Community Services Department Due mostly to the fact that this Department contains the costs of the former Parks Maintenance Assessment District, the "increase" in expenditures of $712,092 must be adjusted for the $610,000 in parks maintenance costs now absorbed by the General Fund. Public Works Department Perhaps the most significant change in the Public Works Department is the complete assimilation of the Vector Control function. FY 98/99 will be the first complete fiscal year that Division 804 (Vector Control) will be in operation. This contributes significantly to the increase in expenditures requested in this department for FY 98/99. Payments will be from the vector control district property taxes the City will receive. With further reference to the pending dissolution of the Moorpark Mosquito Abatement District (MMAD) and the current position in ongoing negotiations, staff has taken a conservative approach to the budgeting of monies received by the City as a result of the dissolution. With respect to the property tax share (estimated at $129,000), this amount will be reflected as a restricted reserve in the General Fund for use in providing vector control services. Additionally, the cash balance held by MMAD (estimated at $1,400,000) is also proposed to be placed in a restricted reserve within the General Fund with interest thereon being generated for the benefit of the General Fund (estimated at $78,000). As part of Capital Outlays, the Department of Public Works is requesting a replacement pool car (funded by the Equipment Replacement Fund), a new dump truck (funded by the Gas Tax Fund), and a desktop radio for the Public Works Field Office. EXPENDITURE REDUCTIONS Memorandum to the Honorable City Council City Manager's Budget Message for FY 1998/1999 May 5, 1998 Page 10 In February, 1998 the Budget and Finance Committee and the City Manager presented a listing of proposed expenditure reduction options for consideration by the City Council. In formulation of the City Manager's Proposed Budget for FY 98/99, several of the items proposed for reduction have been included. The following table recaps the expenditure reductions proposed by the Budget and Finance Committee. Those items NOT included in the budget (and, therefore, would not further reduce expenditures for FY 98/99) have been fit: Department Description FY 98199 Savings Notes City Council Annual Citizen Recognition Event $1,000 Included in the City Clerk's Department £ $ Managef Position City Manager Additional Hour per day for Executive Secretary job share Position $5,945 City Clerk Conflict of Interest Appraisals $2,600 City Clerk Municipal Code Updates $4,000 City Clerk Election Costs $6,000 $1600 $899 A`'frrm Needs Survey to the $25,000 -Sdzs Admin Svcs GFOA Accounting Seminar $1,700 Memorandum to the Honorable City Council City Manager's Budget Message for FY 1998/1999 May 5, 1998 Page 11 Department Description FY 98/99 Savings Notes Admin + W"arn"er of $ 999 In the MRA proposed budget. A.J... on Cam...... Eests $12,324 Admen Laptep GamputeODaeking Statierr $6,000 A.Jm mn C'. ..... INTERNET Home Pege Upgrade $1,209 Admin Svcs Addt'I Activity Brochure Pages $1,400 Public Safety $5,0()G Eoverage Public Safety Eighth Grade DARE Officer $75,600 Potential increased revenue offset of 50% of costs expected from MUSD. Gomm. Saes- Pfoject Pro trobutmon X16;996 Gomm. svlas-.2 °,.,seat... Broeh re Layottt $596 To be done in house. Comm. Svcs.' Brochure Mailing $1,100 Comm. Svcs.' Brochure Printing $2,500 Comm. Svcs. Commission Attendance at CPRS $1,500 Gomm. Sacs. £-gists $4,963 Memorandum to the Honorable City Council City Manager's Budget Message for FY 1998/1999 May 5, 1998 Page 12 Department Description FY 98/99 Notes Savings Comm. Adaptive Program $1,200 Svcs. Comm. Easter Egg Hunt $1,500 Svcs. Comm. Halloween $1,400 Svcs. £ Sves. $430 £ems- Sacs. Tree Lighting $1,695 Svcs Gomm. Svcs. Kids First Festiva' $2,400 LQTT r te e . Volunteef Recognition $850 Gomm. Svcs. Recreatoo f G..I..L....-.+'..... $5,020 Comm. Breakfast with Santa $675 Svcs. Comm. July 3rd Fireworks $16,050 Svcs. Comm. Reduce Park $10,500 Svcs. Fertilizations from six to four per year Comm. Eliminate Sunridge $13,440 Svcs. Rainy Day Service at Parks Memorandum to the Honorable City Council City Manager's Budget Message for FY 1998/1999 May 5, 1998 Page 13 Department Description FY 98199 Notes Savings Gomm. Genvert Gountry Trail $27,200 Consultation with the City Sven Attorney has resulted in this Bosom sees°'" option no longer being $istriet supported. Comm. Close Virginia Colony $10,825 Svcs. Park Comm. Close Monte Vista $15,000 Svcs. Park Gomm. Saes- Reduce Equivalent of 2080 hoUFS Of POO tome staff by Teen Pfegfanis $17,169 and Senior Ctr. Instructors, leaders, $2,300 and entertainment Senior Ctr. Special supplies for $2,000 classes, certificates, luncheons Senior Ctr. Senior Games $3,000 Senior Ctr. Volunteer Banquet $3,000 Cable TV Special Filming $12,000 Projects =TOTAL (Available Items): $196,235 Please note that some of the items' costs have changed slightly since the February, 1998 recommendation was presented to the Council. The non struck -out items are presented here should the Council wish to consider further expenditure reductions at this time. It should be noted that if 100% of the above expenditure reductions were implemented ($196,235) and the FY 97/98 operating surplus of $163,713 is realized, then the FY Memorandum to the Honorable City Council City Manager's Budget Message for FY 1998/1999 May 5, 1998 Page 14 98/99 budget would show a slight operating surplus of $56,781. CAPITAL IMPROVEMENT PLAN There are 49 capital improvement projects included in the FY 98/99 proposed budget. Of these, 13 projects were completed in FY 97/98 and are included for reference only. The remaining 36 projects are a combination of continuance /completion of projects begun in FY 97/98, and others are scheduled for start in FY 98/99. The Community Services Director has proposed several capital improvement projects to replace aging facilities. These include Project 5021 (Improvements to the Senior Center), Project 1037 (Replacement of the Community Center roof), and projects to replace the carpet (1039) and linoleum (1040) at Arroyo Vista Community Park. Proposed funding for these projects will be derived from the General ($65,300) and Park Improvement Funds. Under proposals submitted by the Director of Public Works, the City will be embarking on a major improvement along the entire New Los Angeles Avenue /Los Angeles Avenue corridor (State Route 118). Upon completion at the end of several years, the combination of three proposed projects will improve the Route 118 corridor to allow for six lanes of traffic, three in each direction. Proposed projects include: Project 8009 (New LA Avenue - Spring Road to Moorpark Avenue, a study to determine the potential right -of -way requirements on the south side of LA Avenue); Project 8012 (New LA Avenue Bridge, construction of a replacement bridge near Wood Ranch at the Arroyo Simi); Project 8050 (LA Avenue Widening from Maureen to Beltramo - widening on south side of street); and Project 8051 (LA Avenue Traffic Signal Interconnect, a project to reduce emissions and improve traffic flow). These projects will receive funding from special revenue funds like the Gas Tax Fund, the Area of Contribution Fund, and Federal and State grant funds. The full listing of capital improvements may be found near the end of the budget document under the "Capital Improvement" tab. RECOMMENDATION That the City Council receive the City Manager's Proposed Budget for FY 98/99, designate a budget workshop be held on May 13, 1998, at which time the City Council would provide direction and refer the budget to the Budget and Finance Committee. Attachment