HomeMy WebLinkAboutBGT 1991-1992 Budget MessageI'
I
TO:
FROM:
DATE:
SUBJECT:
MOORPARK
799 Moorpark Avenue Moorpark, California 93021 (805) 529 -6864
The Honorable City Council
Steven Rueny, City Manager
June 11, 1991
Proposed 1991 -92 Budget
40
Enclosed is the proposed Budget for Fiscal Year 1991 -92. As
you are aware, an additional feature of the budget process is
the development of objectives that are anticipated to be
accomplished in 1991 -92. The Council previously approved a
City Mission Statement and Departmental Goals. The
objectives are intended to be consistent with the Goals. The
proposed objectives are included as Exhibit 1 and should be
reviewed during consideration of each Department's proposed
budget.
The State has reported a projected 1991 -92 deficit of an
estimated $14 Billion. The Legislature and Governor are
currently negotiating a series of tax increases and
expenditure adjustments to develop a compromised and balanced
budget. The impact on. City revenues and expenditures is not
known at this time. The most discussed items are a 7%
reduction of the Vehicle License Fee (VLF) subvention; 50 %-
75% diversion of court fines and forfeitures exclusive of
parking fines; and the continuation of authority for counties
to impose property tax administration and booking fees.
All four of these items have been included in the proposed
budget. The VLF adjustment is $50,000. The 50% diversion of
court fines is an estimated $57,000. This could impact the
crossing guard program and/or law enforcement program in
subsequent years and require a reduction in service or use of
General Fund revenue or reserve funds in the Traffic Safety
or General Funds. As a result, we have also moved $53,000
from the Traffic Safety Fund to the Gas Tax Fund for signal,
pavement marking and sign maintenance. The City has
historically used the Traffic Safety Fund for these items.
The state did not approve its 1990 -91 budget until after July
1, 1991 and after the City adopted its budget. The property
tax administration ($25,000) and booking ($50,000) fees
imposed and recently impounded by Ventura County will cost an
estimated $75,000 in 1990 -91 and if continued in 1991 -92,
another $80,000. The booking fees are included in the Public
L I n •``! I :. ..
The Honorable City Council
June 11, 1991
Page 2
Safety budget and the property tax administration fee is
included as a reduction in the estimated revenue for secured
property tax. These actions are a result of conservative
budget practices. The City has agreed to participate in
legal action to prevent the imposition of these fees and to
recover the impounded monies.
The 1990 -91 General Fund revenues are up about $176,000 from
projections. This is a result of greater than projected
interest earnings and an unanticipated $100,000 payment from
VCC as part of the franchise extension. The $100,000 is
slated to be used for cable - related improvements to the
Community Center in 1991 -92. Budgeted expenditures are down
$134,000. As a--result, in spite of the effects of the
sluggish economy, we will conclude FY 90 -91 with a balanced
General Fund budget and be able to add to the General Fund
reserve. As a result of the decrease in projected 90 -91
General Fund revenue, the amount of Gann Funds (proceeds of
taxes in excess of City's spending limit) is down from a
projected $277,000 to an estimated $101,000.
The 1990 -91 budget included expenditures of $89,000 of 90 -91 / I
Gann Funds for maintenance of the Community Center. This was "or
in lieu of placing this as an assessment in AD 85 -1. Actual
projected expenditures are $63,000. The balance of the 90 -91
Gann Funds is $38,000. These are recommended to be used for
maintenance of the Community Center in 1991 -92 in lieu of AD
85 -1 assessments.
The City's 1991 -92 Gann Limit is estimated at $3,143,000.
This is 7% increase from 90 -91. With adoption of Proposition
111 in November 1990, Gann Funds may be used for capital
expenditures that exceed $100,000 in cost and have a life of
at least ten years. The Council may also use funds to reduce
fees, taxes or assessments or request voter authority to
increase the limit for a maximum four -year period and expend
the funds.
In June 1988, the voters approved an increase in the Gann
Limit for the four -year period, from 1986 -87 through 1989 -90.
The four -year total Gann Fund (excess P-0-T) is $1,429,175.
An attached chart illustrates the Gann Fund, projected
expenditures through June 30, 1991 and the proposed use of
$508,143 that can still be appropriated is attached as
Exhibit 2.
It is recommended that the Gann appropriation for truck
scales be used for other purposes. In the event Caltrans
allows this project to move forward and City funding
The Honorable City Council
June 11, 1991
Page 3
participation is needed, the Gas Tax Fund or other reserve
funds can be used.
As part of the proposed 91 -92 expenditure, it is recommended
that the available Gann Funds be appropriated as follows:
1.
$ 75,000
Paramedics
2.
150,000
Police Services
3.
40,000
Youth Services
4.
49,000
City Hall Expansion
5.
35,000
Disaster Services
6.
9,000
Chamber of Commerce Agreement
7.
150,000
Community Center Improvements
$508,000
As in past years, I recommend that the Council consider the
establishment of an adequate reserve, and begin a formal
policy for using a portion of the General Fund to fund future
capital needs and to replace equipment. The City's
participation in self - insurance jointly with other cities for
( liability and workers compensation requires an adequate
General Fund reserve. In addition, the City needs at least
short-term access to a reserve in the event of unforeseen
natural disasters or unilateral action by the State to reduce
or eliminate a subvention such as the VLF.
Much of the City's infrastructure (streets, parks and
buildings) is relatively new. As these existing facilities
begin to age, there will be greater demand to supplement
restricted funds such as Gas Tax with General Funds. We also
need to plan for future renovations and additions to parks,
buildings and streets. Three facilities need funding: 1)
public works yard; 2) City Hall expansion; and 3) Arroyo
Vista Community Park. In addition, funding assistance for
road improvements that cannot be totally funded by new
development may be needed. Consideration should also be
given to a teen center. It is recommended that Fund 8, City
Hall Construction Fund, be re- titled Capital Projects Fund
with sub - categories for identified projects.
City staff is currently completing five -year projections for
revenue, expenditure and Gann spending limits. In
conjunction with developing a seven -year CIP, staff is
developing projected expenditures and revenue for routine
street maintenance expenditures. This will assist the
Council and staff to gain a long -term perspective on the
City's basic needs and ability to finance operation and
maintenance needs as well as capital and special projects.
The Honorable City Council
June 11, 1991
Page 4
A greater emphasis on recreation is recommended. The half-
time Recreation Coordinator position is proposed to become a
full -time regular position. This will allow additional time
for planning and implementing programs and special events.
With this change, recreation staff would be able to - assist
the grant- funded staff position secured by the Senior
Citizens for coordinating events at the Senior Citizens'
Center. City staff would help that person plan and organize
the activities but not implement them. We also hope to
expand our youth programming. It is proposed that $15,500 be
funded from the General Fund for special events. This is
detailed in the budget document. This is in addition to the
special events, sports and contract classes that are part of
the Recreation Fund and are self supporting or provide
revenue to the City. The revenue earned is used to fund the
brochures and display ads for the recreation programs. The
Council is requested to consider the possibility of including
paid ads in the recreation brochures to offset all or part of
the cost to produce and mail them. I am generally opposed to
this, however, many agencies are now doing this.
The City's Public Works Department was established in 1989 -�
90. During 1990 -91, the Director shared a secretary with the
Deputy City Manager. It is proposed that an Administrative
Secretary position be approved for the Public Works Director.
This will benefit both the Administrative Services and Public
Works Departments. In addition, it is proposed that a
position of Public Works Technician be established to assist
the Public Works Director. This would accompany a shift of
responsibilities between the Community Services and Public
Works Departments.
Community Services would assume responsibility for all
landscape maintenance, including parks, parkways and medians,
except street trees in older residential neighborhoods and on
major streets not a part of landscaped parkways. This will
allow one person (Maintenance and Operations Supervisor in
Parks) to be responsible for all contracted landscape
maintenance.
The Public Works Technician would be responsible for
generally providing administrative support to the Public
Works Director and for the crossing guard program, fleet
maintenance, contract administration for routine maintenance
items, such as street sweeping, pavement marking, tree
trimming and removal, and development and maintenance of
street- related inventories. This position would allow the
Director to assume primary responsibility of administering
the City Engineer Agreement in lieu of the City Manager and
The Honorable City Council
June 11, 1991
Page 5
to focus on capital projects and departmental management.
As the Council is aware, development activity has declined
the past two -plus years. This initially affected the amount
of planning time expended on entitlement project processing
and this past year resulted in reduced revenue for building
permits and plan checks, and developer- funded engineering
plan checks and inspections. There is sufficient reserve for
1991 -9.2 but initial projections for 1992 -93 indicate that
unless development activity increases, the City may need to
consider General Fund support for the community development
activities of building and safety, engineering and planning
to maintain the existing service levels. As a result of
this, I recommend that the vacant position of Associate
Planner not be filled at this time. I propose that we hire
a part-time planner during 1991 -92 to partially provide for
staffing. This will allow further evaluation of funding
availability and level of development activity. Funding for
this position is included in the proposed budget.
I also propose that staffing -for the code enforcement
function be funded from the General Fund. This includes the
�. Code Enforcement Officer, the Code Enforcement Technician and
the Secretary positions. This is about $107,000. The Budget
and Finance Committee is still working with Charles Abbott in
review of the Building and Safety Agreement for potential
modification to revenue and expenditure considerations.
Additional information will be presented to the City Council.
Staff has also revisited the spread of certain Administrative
Services and Finance Department personnel costs to Community
Development. We are recommending changes as follows:
From To
Finance Officer
40%
Planning
30%
Planning
Account Technician
100%
Gen. Fund
30%
Planning
Account Clerk
50%
Planning
30%
Planning
Receptionist
40%
Planning
30%
Planning
The following is a summary and recap of major items to note
in the proposed budget.
1. Upgrade of part -time Recreation Coordinator to
full -time regular position.
2. Addition of Administrative Secretary and Public
Works Technician to Public Works Department.
The Honorable City Council
June 11, 1991
Page 6
3. Funding for Emergency Medical Services.
4. Cable TV programming as responsibility of the
City.
5. Requirement to provide Social Security for part -
time positions not covered by City's retirement
system. Staff recommends not enrolling part -time
positions in the retirement program.
6. City's share of retirement contribution increased
from 6.316% to 6.985 %, an approximate 8% increase.
7. Created - separate line item for computer supplies
and services. It was formerly part of office
supplies.
8. Insurance for liability and property is now
distributed 10% parks, 10% streets and 80% General
(Administrative Services) with the exception of a
prorated amount for -the two code enforcement
vehicles which are in the Community Development
Department.
9. In Recreation Department, funding for one Park and
Recreation Commissioner and one staff person to
attend annual CPRS conference.
10. Maintenance cost for the Community Center is
proposed to be funded by $38,000 from the excess
proceeds of taxes from 1990 -91 in' lieu of
including it in AD 85 -1 and $35,900 in General
Fund. In 1990 -91, this was funded entirely by
excess proceeds of taxes in lieu of AD 85 -1.
11. Law enforcement costs as the City's contribution
for July 3 ($4,000) and Country Days ($6,400) and
$9,000 from Gann for an agreement with the Chamber
of Commerce is now in the Community Promotion
(Line Item 631) in Administrative Services.
12. While not a cost item, primary responsibility of
the Sheriff's contract will be assumed by the
Deputy City Manager in lieu of the City Manager.
13. The Public Works Director will assume primary
responsibility for the City Engineer Agreement.
14. Reduction in undesignated Social Services from
The Honorable City Council
June 11, 1991
Page 7
$10,000 to $2,000, and no proposed funding for
summer youth jobs. Last year the City expended
about $3,000 for summer jobs. This was primarily
spent by continuing the time for certain youth
employed in the federally- funded summer youth
program.
15. The proposed budget includes $80,000 revenue for
refuse franchise and $20,000 for anticipated cost
recovery for specified police services.
Proposition 111 is providing $111,500 in
additional gas tax referred to as Section 2105.
This requires a maintenance of effort from other
than gas tax funds of an estimated $40,000 per
year. Staff is also investigating other revenue
services and including a fee for police services
as a result of loud parties and an excessive
number of false alarm calls.
16. Join City Link to assist City in tracking
legislation and providing easier access of
information available through the League of
Cities.
f3�1Y� ►� ;�a
The City needs to continue to focus on the future - by
developing an adequate reserve and planning for capital
needs. Ensuring sufficient funding for necessary and desired
capital projects, including Arroyo Vista Community Park, City
Hall expansion, public works yard, Community Center
improvements, various street improvements, and new /expanded
programs such as youth services programs, cable tv
programming, emergency medical services, recreation, transit
and solid waste /recycling mandates while continuing current
service levels is a challenge. The Budget and Finance
Committee and staff have developed the proposed budget
working within funding constraints complicated somewhat by
the uncertainties of the State budget and its potential
impacts on the City.
6113.tem