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Home My WebLink AboutAGENDA REPORT 2001 0530 CC SPC ITEM 04C ITEM C - _r �P?y ceY,5en5uS c �: or)-fi'�ved 'as MOORPARK CITY ILI' 200 regulgr ',eefiilc AGENDA REPORT F,Y: - TO: The Honorable City Council FROM: Steven Kueny, City Manager ✓ DATE: May 24, 2001 (CC Special Meeting May 30, 2001) SUBJECT: Consider Use of General Funds Remaining Available from the 1999/2000 Fiscal Year A recap of the City Council ' s appropriation of the subject funds is referenced on pages 6-8 of the 2001/02 FY Budget Message (copy attached) . Of the estimated $800 , 000 in June 2000 , the Council appropriated $734 , 500 . After review by the City ' s auditors, the actual amount was determined to be $1, 037 , 000 . Pursuant to the table contained in the Budget Message, there is $446, 938 to be considered for appropriation. The remaining 1999/00 FY carryover is proposed to be expended as follows : 1 . Electricity conservation measures for City facilities $ 20, 000 2 . Offset loss of ERAF for 01/02 FY $ 93 , 000 3 . Teen Coordinator for 02/03 FY $ 36, 000 4 . Part-time position at Senior Center for 02/03 FY $ 20, 000 5 . IS Manager for 02/03 FY and 03/04 FY $160 , 000 6 . Parks Maintenance Worker for 02/03 FY $ 47, 938 7 . GASB 34 compliance for 02/03 FY $ 10 , 000 8 . Day Laborer issue for 02/03 FY $ 30 , 000 9 . Open space acquisition $ 30 , 000 Total: $446, 938 ;3UP fir:.: 1 The Honorable City Council Agenda Report May 24 , 2001 (CC Special Meeting May 30, 2001) Page 2 Though shown as proposed for the 2000/01 FY, I am not recommending the continuation of the shared Senior Management Analyst position. This action would allow $69, 770 currently proposed for 01/02 FY to be reallocated for other purposes . It is proposed these funds be set aside for electric generator capabilities at the City Hall Annex and Arroyo Vista Recreation Center. The General Fund is also projected to have an approximate $1 . 2 million carryover in 2000/01 FY. This excludes the budgeted but unspent 1999/00 FY carryover. The 2000/01 projected carryover is about $700, 000 for revenues and $500 , 000 for expenditures . For revenues, the primary contributors are higher receipts for sales and property taxes than projected (at time of budget adoption, the State had not appropriated the $93 , 000 ERAF return to the city and, thus, it wasn' t in the budget) and interest income as a result of higher than anticipated revenue in the Endowment Fund. For expenditures, most of the savings came from positions not filled and items staff could not complete because of other priorities, as well as general economies achieved by staff . $1, 000, 000 of the projected $1, 200 , 000 2000/01 FY carryover is proposed to be set aside in the City Hall building fund. After the audit, any funds in excess of $1 million are recommended to be retained in the General Fund Reserve . STAFF RECOMMENDATION: That the City Council appropriate remaining 1999/2000 FY General Fund monies as recommended in this report and consider use of the 2000/01 FY projected General Fund carryover as part of the 2001/02 FY budget deliberations . SK:db Attachment : 2001/02 FY Budget Message (p. 6-8) M:\ccagenda\Agnda rpt-800 Fund 0530 2001 g r City Manager's Budget Message May 16, 2001 Page 6 Other Costs The total cost to maintain the City's parks is projected to be $1 .27 million for the 2001/2002 fiscal year. Special assessments paid by property owners will pay approximately $492,000 of this amount, and other revenues will cover $51, 100, leaving the General Fund to fund the remaining $730,000 . The City Council directed property assessments for parks maintenance be reduced for the 2000/01 fiscal year by $140,000 as a one-time benefit to property owners. For the 2001/02 fiscal year, the recommended budget assumes property assessments return to their normal levels. The recommended budget assumes increases in electricity costs of approximately 40% based on the rate increased approved by the Public Utility Commission in March. On Tuesday May 15, the CPUC approved several changes to the rate structure and, when additional details are received, staff will make further recommendations to the budget amount if necessary. The additional costs are anticipated to be $21 , 000 in the General Fund and $32 ,000 in other funds. The increases in street light electricity costs will be more than offset by the savings from the installation of LED signals. Staff has taken steps to reduce electricity usage and will continue to look for ways to cut back. However, the recommended budget does not include any funding for rehabilitation or other improvements specifically designed to reduce electricity costs. Last year, the city implemented a comprehensive cost allocation plan in compliance with federal regulations . This plan allocates certain General Fund "overhead" costs to other funds, including the redevelopment agency, gas tax funds, and others . As a result of this, in the 2000/2001 fiscal year, the General Fund expenditures and revenues increased by more than $725, 000 as costs where shifted back to the General Fund, then "charged" back out to other funds . The cost allocation plan has been updated for the 2001/2002 fiscal year and is included in the recommended budget. Reserves During deliberations over the fiscal year 2000/2001 budget, the City Council was advised that, due to several unusual circumstances, revenues would exceed expenses in the General Fund by approximately $800, 000 for fiscal year 1999/2000 . The L � . 1 City Manager' s Budget Message May 16, 2001 Page 7 City Manager recommended that these funds (the "800" fund) be set aside and appropriated for new programs and one time expenses. The City Council set aside $734 , 500 of these funds for programs as noted in the table below. Total Est. Amount in Available Allocation Actual budget for for 02/03 by City expenses 01/02 and/or Council 00/01 other projects Parks Maintenance Worker 80,000 23,645 43,235 13,120 Truck for new Parks Maint. Worker 25,000 23,715 - 1,285 Senior Mgmt Analyst CS/PW 150,000 9,226 69,770 71,004 Information Systems Manager 150,000 - 69,770 80,230 Increase Deferred Comp, benefits 10,000 10,000 - - One-time reduction in Parks 140,000 140,000 - - Assess. Part Time Teen Coord. & Supplies 57,000 28,500 50,559 (22,059) Additional AV hours for programs 7,000 7,000 - - User Fee Study 5,000 - 5,000 - Repaint Community Center 15,000 15,000 - - Fencing at Country Trail Park 12,700 12,700 - - Resolve Day Laborer issue 50,000 - 20,000 30,000 Fencing at Tierra Rejada park 25,000 25,000 - - Legal Services for Open Space 6,000 - 6,000 - Additional funding for Sr. Games 1,800 1,800 - - GASB 34 Compliance funding - - 10,000 (10,000) Part Time Rec. Coord. at Sr. - - 19,142 (19,142) Center 734,500 296,586 293,476 144,438 During the 2000/2001 fiscal year, approximately $296, 600 will be spent on these "800" fund projects. There have been savings in some of these project areas, and the recommended budget reallocates a portion of this savings to increasing the part time Teen Coordinator position to full time, funding one-time costs associated with compliance with new financial reporting requirements, and the addition of a new part time Recreation Coordinator at the Senior Center, as noted in the table above. When all General Fund revenues and expenses were tallied for the 1999/2000 fiscal year, revenues actually exceed expenditures by $1, 037, 000 . Thus, the balance in the "800" fund is: JG0,: , i I City Manager' s Budget Message May 16, 2001 Page 8 Beginning Balance $1, 037 , 000 Expenditures 2000/2001 ( $296,586) Budget 2001/2002 ($293,476) Balance available to continue programs in 2002/2003 or reallocate to other programs _$446.,_93.8 Prior to the first budget study session, the City Manager will present a separate report with recommendations concerning these funds as well as potential use of the projected 2000/2001 general fund balance in excess of budgeted amounts . The Equipment Replacement Fund was created many years ago to set aside funds that would be needed to replace equipment, including automobiles, as necessary. Unfortunately, General Fund contributions to this fund have not kept up with expenditures, and, after adjusting for anticipated expenditures, the fund balance at the end of the 2001/2002 fiscal year would be $31, 000, only 7% of the total value of the city's equipment and vehicles ( $417 , 000) . The proposed budget includes a transfer of $441, 700 from the General Fund to the equipment replacement fund to bring this account up to a more appropriate level. Community Development The Community Development Department has experienced several staff vacancies in the past year and recruitment efforts are continuing. The recommended budget proposes two changes to staffing levels in the department. First, a Senior Management Analyst position is added. This position is already in place as a result of shifting the budgeted Senior Management Analyst position shared between Community Services and Public Works to this department. This staff member is assigned many administrative and management tasks, such as oversight of developer deposits and fees, which will reduce the burden on the Director and planning staff. Second, the Associate Planner position is replaced with a Planning Technician position to provide primary counter assistance at a lower level which allows the Assistant Planner position to spend less time at the counter and more time providing assistance to senior planning staff. The current projections for fiscal year 2000/2001 indicate that spending in the Community Development fund will exceed revenues