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Home My WebLink AboutAGENDA REPORT 1992 1021 CC REG ITEM 11C..,ITEM L•C MOORPARK - . 799 Moorpark Avenue Moorpark, California 930 %0ppAN5 8Rh44 aty / Meeflng of 2 199 ACTION: MEMORANDUM TO: Honorable City Council FROM: Richard Hare, Deputy City Manag r tJ DATE: October 15, 1992 (CC Mtg. 10 -21- ) SUBJECT: Consider Actions taken by the State of California regarding the City of Moorpark's Budget. BACKGROUND On June 29, 1992, the City Council approved the City of Moorpark's Budget for fiscal year 92/93. This budget was very conservative reflecting the downturn in business activities and anticipated reduction in sales tax revenue with modest growth in property tax revenue. The State of California was grappling with their financial crisis during this same period. Numerous proposals were before the legislature indicating that they may reduce local government funding drastically. The City Council at the recommendation of the City Manager and the Budget & Finance Committee (Lawrason, Montgomery) approved the budget with certain restrictions. Those restrictions included freezing the hiring of new personnel with the exception of some key positions and the requirement that all capital purchases be reviewed by the City Council. The state finally adopted their budget but not without impacting the City of Moorpark's financial situation. The total impacts to the City of Moorpark's budget have been estimated by the League of California Cities. The property tax revenue to the City of Moorpark will be reduced by approximately one hundred, four thousand dollars ($104,000), additionally, the Moorpark Redevelopment Agency will be required to pay approximately forty -two thousand dollars ($42,000) into a County Education Augmentation Fund to offset state cuts to education. PAUL W. LAWRASON JR. JOHN E. WOZNIAK SCOTT MONTGOMERY BERNARDO M. PEREZ ROY E. TALLEY JR. Mayor Mayor Pro Tern Councilmember Councilmember Councilmember Printed On Recycled Paoer Honorable City Council October 15, 1992 Page 2 These impacts reflect the state's recent practice to balance its budget on the backs of local governments. The City of Moorpark is not part of the State General Fund, however, the state has seen_ fit= to impact the funding structure for .Local governments including cities, school districts, counties and special districts. The state is diverting and shifting funds in order to avoid service cuts or revenue increases. Recent-` sales -tax figures indicate that the City of Moorpark's economy is stabilizing and more sales tax revenues will likely be collected this year than what has previously. been anticipated. ..Property tax information is also encouraging and it appears that the values have remained somewhat consistent, therefore, property tax revenues will remain slightly higher than what was originally projected. These revenues should offset the cuts proposed by the state. BUDGET & FINANCE COMMITTEE REVIEW The Committee met with the City Manager and Deputy City Manager, on October 14, 1992, and reviewed some of the -� revenue data for the first quarter of fiscal year 92/93. Expenditure information was also reviewed. At this point of the year an average 25% of the appropriations would normally have been spent. The City has expended only 11% of its total budget and in the General Fund only 19% of the budget has been expended. Upon review the Committee has recommended that the budget approved by the City Council for fiscal year 92/93 be implemented during the remainder of the fiscal year. This requires removing the restrictions on personnel and capital expenditures as outlined in the budget. The Committee also recommended that the budget be reviewed again after second quarter information is available in late January. It may be necessary in February to reduce the targeted fund balances for an Equipment Replacement Fund and Capital Projects Fund if the state impacts are not offset as anticipated by higher revenues and lower expenditures. GANN FUND The City Manager on June 26, 1992, had recommended the use of undesignated Gann Funds as follows: 1. Arroyo Vista Community Park $200,000 2. Youth Services (third year) 25,000 Honorable City Council October 15, 1992 Page 3 3. Senior Citizen Coordinator for fiscal year 92/93 20,000 4. Senior Citizen Coordinator for fiscal year 93/94 22,000 5. Economic Development Coordinator 30,000 6. North Meadows park play equipment 5,000 7. Police Services (future years) 80,000 8. Undesignated 2.554 Total $384,554 Since adoption of the budget staff has recruited for a Senior Citizen Coordinator. Staff and the Committee recommend appointment of a full -time Senior Citizen Coordinator partially funded by Area Agency on Aging Grant funds and partially funded by Gann funds as indicated in number three above. The City Council has already approved the City's management of the Senior Citizen Center. This hiring will complete this action. Other hiring decisions delayed during the first quarter included an additional maintenance worker position to balance the assigned parks and public works crew, as well as hiring two part -time cadets in the police department. Expanded hours for the part -time clerical aide position and the records clerk position were also authorized in the budget. The Council considered providing support for the publishing of the Moorpark Business Directory at the October 3, Council meeting. The City Manager had recommended the funds set aside for an Economic Development Coordinator be used. Over the first quarter of the fiscal year we did not hire an Economic Development Coordinator, therefore, there have been savings in this area. The Chamber of Commerce is moving forward with trying to fund the Moorpark Business Directory by sales of ads. It appears the Chamber has been successful in being able to fund the entire amount. In the event that is not the case, the City Manager was authorized to divert some of the Economic Development Coordinator monies up to three thousand dollars ($3,000) to assist the Chamber of Commerce. The funding for police services is listed in number seven above is for future years. Item eight indicates undesignated funds of two thousand five hundred and fifty -four dollars ($2,554). During the CDBG hearing request for funding AIDS and Alzheimer's were Honorable City Council October 15, 1992 Page 4 heard. The Council was not able to include funding for these items within the limits of CDBG social services funding. The Alzheimer's program requested five thousand dollars ($5,000) in assistance and the AIDS program requested twenty -five thousand dollars ($25,000) in assistance. The Committee recommended that staff investigate the current needs of both programs and that two thousand, five hundred dollars ($2,500) of the undesignated monies be allocated to those programs as needed. Prior to final authorization these request would have to come back to the City Council during this fiscal year. Previously designated Gann funds for this fiscal year include the following: 1. Charles Street improvements $30,000 2. Other street improvements 96,303 3. Arroyo Vista Park 100,000 4. Paramedics 75,000 5. Youth Services ($20,000 FY 93/94) 40,000 6. Disaster Services 35,000 7. Emergency generator 23,000 The Committee recommends that all 16 purposes described above be approved for the Gann Fund as outlined in the 92/93 budget. PERSONNEL During the budget deliberations the City Council suspended negotiations with employee representatives regarding salaries and benefits. This matter will be discussed in closed session with the City Council on 10/21/92. Staff will prepare a draft memorandum of understanding for review by the Committee and later referral to the City Council. RECOMMENDATION The Committee and staff recommend that the restrictions placed on the fiscal year 92/93 budget be removed and that the Gann Funding of projects be reaffirmed as outlined above. October 15, 1992 c: \w1)51\reUort \CC.Budstet