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HomeMy WebLinkAboutBGT 1994-1995 Budget MessageCITY OF MOORPARK OFFICE OF THE CITY MANAGER INTEROFFICE MEMORANDUM TO: The Honorable City Council FROM: Steven Rueny, City Manager V6- DATE: June 8, 1994 SUBJECT: CITY MANAGER'S BUDGET MESSAGE FY 1994/95 The proposed Budget for Fiscal Year 1994/95 is submitted to the City Council for consideration. For the fifth consecutive year, the State is potentially facing a multi- billion dollar deficit. This again results in some uncertainty for cities and other local governments. Presently, Governor Wilson is projecting receipt of over $3 billion from the Federal Government to balance the State Budget. This is a questionable assumption.' The State could again look to the traditional revenue sources of cities, counties and special districts to balance the State budget. It is not possible to predict the final outcome and impact of State budget action on the City's budget. Previously, in the 1990/91 and 1991/92 fiscal years, the State authorized the County to impose booking fees and property tax administration fees, phased in a two year elimination of the cigarette tax subvention, diverted 50% of the non - parking violation court fines and reduced the vehicle license fee (VLF) subvention by 18.75 %. The combined loss in revenue and increase in fees is $360,000 each year. For FY 1992/93, the State took $140,000 of property tax from the City as well as $40,000 from the then litigation restricted Redevelopment Agency. As a low property tax City, Moorpark did not suffer any further revenue losses in 1993/94. The attached budget was developed under the assumption that the 1994/95 State Budget will not further reduce City revenues or impose new costs. No additional revenue sources such as Business License or Utility User taxes are proposed. Proposition 111 from 1990 imposed a maintenance of effort (MOE) mandate on the City to spend a specified amount of discretionary funds, other than gas tax and LTF funds, for street purposes. The amount must equal the average of such expenditures over the three year period of 1987/88 - 1989/90. The City's obligation is $68,197. The City city Manager's Budget Message PY 1994/95 June 81 1994 Page 2 previously used the Traffic Safety Fund for a portion of street maintenance. When combined with a 50% reduction in court fines, which is the revenue source for the Traffic Safety Fund, the MOE burden falls on the General Fund. The annual amount of Traffic Safety Fund revenue is sufficient to fund the current crossing guard staffing with little funds left for past uses. In past years, the City funded as much as $53,000 of street maintenance each year from the Traffic Safety Fund. This must now be funded by Gas Tax funds. A similar amount was also used for law enforcement. The MOE obligation has been suspended since 1992/93. We are assuming it will be suspended again for 1994/95. However, it will be applicable in future years while there is no guarantee that the State will return the revenue sources that it has taken from the cities or costs it has imposed on us over the past four years. General Fund Revenue Total General Fund revenue includes $509,551 from the MRA for current services, $360,000 in interest income from the MRA, and $196,190 from Recreation program revenue. For 1994/95, we are combining all recreation program income and expenditures as part of the General Fund and will discontinue use of the Recreation Fund (Fund 33). The City's three largest sources of revenue -- Property Tax, Sales Tax and VLF -- are all projected to be flat and cumulatively show only a slight increase. Budget and Finance Committee The City Manager's proposed budget has been reviewed with the Budget and Finance Committee (Lawrason and Perez). The Committee is in general agreement with the City Manager's recommendations. Budget Overview The following overview highlights the more significant points and changes contained in the proposed Budget: 1. All departments were requested to hold the line and identify potential savings. Other than staffing of Arroyo Vista Recreation Center, the Employee Wellness Program, and VISTA East Intercity Bus Service, no new significant activities or programs have been proposed. City Manager's Budget Message FY 1994/95 June 8, 1994 Page 3 2. The General Fund is again reimbursed for services provided to the Moorpark Redevelopment Agency (MRA) by the City. These are shown as direct expenditures in the Redevelopment Department (170). This provides an estimated $509,551. 3. The addition of the Arroyo Vista Recreation Center will result in increased costs to the General Fund. The primary staff person for the center is one of the two Recreation Supervisors. As the Council will recall, the upgrade of the former Recreation Coordinator position to a Recreation Supervisor position was approved to provide on -site management of the center and to allow for initiation of teen programming. The center is planned to be open 7 days a week for about 80 hours. In addition to the Recreation Supervisor, staff has proposed 1,784 hours for Recreation Leaders to staff the facility (exclusive of adult sports and special events). This is shown in Department 148. The Recreation Leaders would be assigned other tasks such as event planning and light facility maintenance to be performed during their time at the center. In addition, 400 hours is proposed for part -time maintenance staff (Department 149) to provide the primary maintenance for the facility. As necessary, maintenance work at the center will be supplemented by full -time maintenance staff. We will develop a formal maintenance program once the center opens to public use and precise needs can be better determined. 4. The Ventura County Library Services Agency (Library District) and Moorpark Boys and Girls Club have recently requested funds from the City. Staff and the Budget and Finance Committee have not included these requests in the proposed budget. The Library District has requested as much as $50,790 in FY 94/95 to provide an additional 26 hours for 12 months. They have offered a less costly proposal for $33,090 which includes an additional 26 hours per week for 2 months and an additional 12 hours per week for 10 months. In 1993/94, the Council appropriated $14,670 from the General Fund Reserve to provide for 26 additional hours for 6 months. The Moorpark Boys and Girls Club has requested $31,200 of ongoing annual support from the City. In addition, they requested the conversion of the $50,000 loan to a city Manager's Budget Message FY 1994/95 June S, 1994 Page 4 grant.. No mention was made of the deferred accrued interest on the loan. 5. The contract with Moorpark Chamber of Commerce is proposed to be reduced from $6,000 to $3,000. This is proposed to be funded by the General Fund as it was in 1993/94. The first three years were funded by Gann monies. 6. The proposed budget does not include a General Fund contribution to either the Equipment Replacement Fund or Capital Improvement Fund. The City Council has previously appropriated $100,000 and $200,000, respectively, to these two funds. The City should also begin to appropriate monies from other funds, principally the Gas Tax and Community Development Funds for equipment replacement purposes. 7. Staff and the Committee worked to find sufficient funding to maintain the current level of police services. The estimated total cost increase above 1993/94 is $204,000. We were disappointed at the projected 6 percent average increase for the personnel items and an excessive 25 percent increase projected for vehicle maintenance costs. Police services remain the largest expense in the General Fund at 57 percent, excluding the MRA contribution. The City Manager, along with representatives of the four other cities that contract with the Sheriff's Department, will be meeting with Sheriff Carpenter to review the proposed cost increase and related matters. On June 1, 1994, the Committee was directed to review the funding options for the storefront police station. At this time, the Committee favors using the existing "office" cadets (40 hours per week) to provide the 20 hour per week staffing. With the appropriate use of computers, including a modem, the Committee believes there would be minimal impact on productivity or regular assignments. As a result, the proposed budget does not include additional funding for staffing. The purchase of capital items for the storefront can come from the Police Facilities Fee Fund. The proposed police budget includes the use of $75,000 of Gann Funds set aside by the Council in 1993/94 for police services and over $22,000 of Traffic Safety Fund monies. It also anticipates funding in the amount of $18,500 from Moorpark Unified School District and the City Manager's Budget Message FY 1994/95 June 8, 1994 Page 5 parent support groups to fund part of the CSO and supplies related to the DARE program. 8. The Crossing Guard program continues with eight (8) locations. The proposed budget includes an anticipated $18,338 from Moorpark Unified School District to pay for one -half (1/2) of the direct costs for the six (6) locations not funded by developer deposits. This proposal has been presented to the District Superintendent. It was presented to avoid the potential disagreement on the implementation of SB 452 which has occurred in other communities. This legislation was intended to give relief to cities and counties providing crossing guard services but is not entirely clear on what agency is responsible for funding. This proposed funding has helped make sufficient funds available to maintain-the current level of police services. 9. A number of items not contained in the proposed budget should be considered by the City Council now or at a later time, including: A. Annual newsletter and better quality materials for proclamations at an estimated cost of $5,000. B. Potential for using civilians for parking enforcement. This concept should be evaluated in 1994/95. C. Replace large copier at an increase in annual lease payments and service of $10,152 on a 60- month term lease purchase. D. Item C., above, is probably needed if we continue to reproduce Council agenda packets in- house. At a cost of about $6,400 per year, the packets could be reproduced by an outside source with a concomitant labor and copier cost savings. These two items need to be evaluated further and presented to the Council during the first quarter of 1994/95. E. Expansion of the optical disk system. During 1993/94, a second retrieval station was created in the Administrative Services Department. Approximately $4,000 would be needed to modify this to a stand -alone station so all departments city Manager's Budget Message PY 1994/95 June 81 1994 Page 6 could have access to it. A suitable dedicated location may not be possible due to facility constraints. F. During consideration of CDBG fund allocations, the Seniors requested funding for new chairs. An amount of $4,000 was identified. It was the recommendation of the Budget and Finance Committee at that time to defer consideration until the budget deliberations. G. A GIS system is still an objective. We would like to meet the needs of all departments with a fully integrated system. There is the potential to include this in a Hazard Mitigation Grant for emergency management purposes. A 20 percent City match would be required. 10. Pursuant to prior Council action, $9,000 has been included for an Employee Wellness program. Currently, it is 100 percent from the General Fund but could be prorated among all funds based on percentage of payroll. Savings to the General Fund would be $4,770. 11. The 2 1/2 percent cost -of- living adjustment and 5 percent for potential merit increases for all eligible positions pursuant to the approved employee MOA have been included. The budget for health insurance has been reduced $63,709 (27 percent) to reflect lowered premium costs and use of actual cost for each current employee rather than budgeting all positions at the highest rate. 12. Special legal services have been included in the Streets (142) and Planning (131) Departments; $2,400 is proposed for each department. This should help to provide accountability and control. 13. $12,000 (shared 50/50 by City and MRA) is proposed for a property tax analysis. This will provide an evaluation of past and current payments to ensure the City and MRA are receiving their full payments. 14. To more easily track costs, provide greater accountability, and emphasize its importance, an Emergency Management Department (162) is proposed to be created. Funding is from the carryover of the prior Gann Fund appropriation. City Manager's Budget Message FY 1994/95 June 8, 1994 Page 7 15. Eight hundred (800) hours for a part -time clerk in accounting is proposed at a cost of $6,248 with an offsetting reduction in the Contract Accountant of $9,000 ($4,000 Fund 1; $5,000 Fund 41). 16. $8,000 AAA grant to assist with Senior Center Coordinator funding. Gann Fund For the past several years, the City has had the availability of the so- called Gann Funds. This became available as a result of excess proceeds of tax and subsequent voter approval to spend the funds. In 1992/93, the City recalculated its Gann limit, and excess proceeds of tax are not projected in the foreseeable future. Since the 1993/94 appropriation action, audit adjustments and interest income on the unexpended balance resulted in $29,521 additional funds in addition to the $269 undesignated amount. The 1993/94 City Council appropriation of Gann Funds and actual expenditures are contained in Attachment A. It is recommended that with the exception of the $15,644 proposed for future Management Analyst costs, the Gann Fund be formally terminated and no interest income accrue after June 30, 1994, and the 1993/94 interest income allocation be set at $25,300. It is important to note that the $364,659 of Gann Funds proposed to be used in 1994/95 will have to be replaced by other funding sources in future years. Community Development Development related activity has continued to be relatively slow. Since 1985, the City has been able to minimize General Fund support to community development activities (planning, engineering, and building & safety) by relying on fees and developer deposits for services related to specific projects. Last year, it was projected that the fund reserves which have been built up over the years would be exhausted by June 30, 1994. An approximate $150,000 balance is now projected. However, a deficit of over $70,000 is projected at 1994/95 year end. Priorities and work activities for this department must be even more carefully structured to maintain the ability to be self- supporting among the planning, engineering and building and safety activities. City Manager's Budget Message PY 1994/95 June 8, 1994 Page 8 The City is faced with either providing General Fund support or reduction in personnel and other costs. In both 1992/93 and 1993/94, the anticipated work on specific plans following the General Plan Update did not occur. As a result, planning staff time was diverted to non -fee producing work such as zoning code update, sign code revision, General Plan Elements, and a Measure "F" successor ordinance. Besides General Fund support, potential means of increasing revenues are: 1. Allow staff time to be charged to the Citywide Traffic and Housing Funds in both 1993/94 and 1994/95 for time spent on those activities. This would provide the following revenue: 1993/94 1994/95 Total CWT (Fund 21) $ 7,956 $ 7,800 $15,756 AH (Fund 22) $21,060 $ 9,360 $30,420 Total: $29,016 $17,160 $46,176 2. Charge Gas Tax, Park Improvement Funds, and other funds that finance various capital projects when an environmental document is required and is prepared by City staff. 3. Provide in -house Building and Safety services. As proposed in a separate report by the Director of Community Development, it would net the City a projected $68,000 to $250,000 above what the City would receive under its current contract. This proposal must be carefully evaluated since it has both potential advantages and disadvantages and presents a certain amount of risk in the form of minimum revenue demands while relying on one key staff person. Community Development costs and trends must be looked at for a three -to -five year period in the future. Planning costs versus planning revenue are the biggest obstacle. A two -year comparison is as follows: Planning 1993/94 1994195 Costs $798,151 $808,356 Revenue $157,079 $259,046 Net: ($641,072) ($549,310) City Manager's Budget Message PY 1994/95 June 81 1994 Page 9 Summary The Budget and Finance Committee and staff have developed the proposed budget with the constraints and assumptions addressed in this report. With the exception of the Community Development Fund, we have presented a balanced budget. The proposal includes $67,170 from the Gann Account to supplement the AD 85 -1 including a carryover of $38,000 from previous Gann Fund support, which would allow the single family assessment to be set at $41.00, which is $10.88 below the full rate of $51.88 but $7.80 above the 1993/94 rate of $33.20. It also maintains all current service levels and provides staffing and maintenance of the Arroyo Vista Recreation Center. The City will also need to plan for future years without the availability of Gann Funds and with a minimal Traffic Safety Fund balance. SK:db Enclosure: Attachment A c: \wpwin \citymgr \budmes94.95 Attachment - GANN Account Proposed Appropriations FY94 and FYQ5 - ------ -----' ---T'---- FY 94 FY 94 Y-E FY 95 Designated �� -'____'------_ A|loc81O�8 Expenses Balance Proposed - '__-' _-- _-----_-_- -_---_ Parks Maintenance Assessment Supplement 125,000 112.620 12,380 12,380 -Y 95 Parks Maintenance FUtU[8 Parks ��/int8nanC8 Ol sSS�SSen�S- --2-5-,000- '' -' 6­25,000 25,000 --Y 95 Parks Maintenance Management Anal C2 OUl | 1 100000 ' 3 37401 6 62,519 5 56 624 a anagement Ana Arroyo Vista P8r hno[OV9nleOts _—__--_--_ -_ -'� _- -' - 119,000 A Tqyq� Vista Park Police Services 75/000 O!75/000| - _ U - O-��8 5c8-9_ - 5 D 19.667 Disaster Services/Supplies 35.000' 9.818' 25182: 25100 82 � 000 [ Emergency Generator - - - - -- - -- - 8Mk][C Om -i._-[''9 _ � . 32/ 412 26. 647 5,765 5,765,isenior Center Coordinator [OdeSigO3ted 289. (4,221 4.490- 4,490 PY 95 Parks Maintenance FY 93/94 Est. Interest Allocation (25,300). 25,300 25,300 IFY 95 Parks Maintenance -- � - -- - -- ' - - - 7-- 586.348 208.045| 380.303: 384.859 ' - - -O 119,000 1Q, - - - _ - - 7 - --_ --. -- ' - --- ' ' note 1, S�ffrecommends the reduction of appropriation fO[ - | $ and the @dddk]O8|8pp[opn8bOOOf $10,000 fOrUle emergency ge 8 __555 nO1e2: The actual expense inFYQ48xC din und8SignitSdfunda8�di 0 -- � - -- - -- ' - - - 7-- 586.348 208.045| 380.303: 384.859 ' - - -O 119,000 1Q, - - - _ - - 7 - --_ --. -- ' - --- ' ' note 1, S�ffrecommends the reduction of appropriation fO[ - | $ and the @dddk]O8|8pp[opn8bOOOf $10,000 fOrUle emergency ge 8 __555 nO1e2: The actual expense inFYQ48xC din und8SignitSdfunda8�di 0