HomeMy WebLinkAboutBGT 1995-1996 Budget MessageCITY OF MOORPARK
OFFICE OF THE CITY MANAGER
INTEROFFICE MEMORANDUM
TO: The Honorable City Council FROM: Steven Rueny, City Manager Vce�
DATE: June 7, 1995
SUBJECT: CITY MANAGER'S BUDGET MESSAGE FY 1995/96
The proposed Budget for Fiscal Year 1995/96 is submitted to
the City Council for consideration. For the sixth
consecutive year, the State is potentially facing a multi-
billion dollar deficit. There has been very little public
discussion by State officials about budget options. This
again results in uncertainty for cities and other local
governments as we review our budgets. 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 was $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 or 1994/95 but did not have previous cuts restored.
Moorpark, like most other California cities, was still
impacted by the effects of recession. In 1994/95, however,
sales tax revenue is predicted to increase to its highest
level at slightly more than $1,000,000. This is an
increase of $105,687 (11 percent) above last year; however,
Moorpark still receives less than half the Statewide per
capita average of sales tax. This is only a $146,504
increase (16 percent) above the pre- recession 1989/90
amount. The average per year increase since 1989/90 has
been only 4 percent.
The attached budget was developed under the assumption that
the 1995/96 State Budget will not further reduce City
revenues or impose new costs. No additional revenue
City Manager's Budget Message FY 1995/96
June 7, 1995
Page 2
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
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 through 1995/96.
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
Total General Fund revenue is estimated to be $4,807,998.
This is an increase of $111,446 from 1994/95. Total
expenditures are estimated to be $5,032,625. The City's
three largest sources of revenue -- Property Tax, Sales Tax,
and VLF - -are cumulatively proposed to have only a modest
increase. The General Fund is proposed to be 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 $577,079. All departments were requested to hold
the line and identify potential savings. No significant
reductions in programs from the prior year are proposed,
and the increases are discussed later in this report.
The General Fund portion of the proposed budget as
presented has $224,627 more in expenditure than projected
revenue for 1995/96. The primary reasons for this
potential deficit include:
City Manager's Budget Message FY 1995/96
June 7, 1995
Page 3
A. $53,912 for continued funding of the Management
Analyst Administrative Services position;
B. $25,000 for 1500 hours of teen programming, 200
additional hours for recreation programming, and 600
hours of additional maintenance at Arroyo Vista
Recreation Center;
C. $78,481 for year one (of three) of City's contribution
for COPS FAST Grant;
D. $40,000 Salary /Benefit contingency;
E. $3,908 to provide 400 hours for an Administrative
Intern in Administrative Services; and
F. $10,000 for At -Risk Youth Program.
The most recent year -end projections for expenditure
savings ($475,536) and revenue above budgeted items
($103,374) equals $578,910. At the time the Budget and
Finance Committee reviewed the budget, the total was only
$544,000. The Committee concurred with recommending use of
the 1994/95 surplus to balance the 1995/96 budget per the
above and to set aside $130,000 for potential use to
supplement AD85 -1 and $220,000 for years two (2) and three
(3) of the COPS FAST Grant. In Summary:
$ 578,910 Projected surplus
$(224,627) Use in 1995/96 Budget
$(130,000) AD 85 -1
$(220,000) Years 2 & 3 of COPS Fast Grant
$ 4,283
For the past several years, the City 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 subsequently had the new
limit adjudicated by the court. The 1995/96 Gann Limit
will be $9,656,000. Excess proceeds of tax are not
projected in the foreseeable future. In 1994/95, the City
Council approved the appropriation of $301,381 from the
Gann Funds. This was to be the last year of the Gann Fund.
Any unexpended Gann Funds would become part of the General
City Manager's Budget Message FY 1995/96
June 7, 1995
Page 4
Fund. At June 30, 1995, $114,926 of the above 1994/45 Gann
appropriation was unspent. It is included in the estimated
$475,536 of General Fund expenditure savings and is
proposed to be carried over for use in 1995/96. The
1994/95 Gann appropriation and estimated actual expenditure
amounts are attached as Attachment A.
The City Manager's proposed budget has been reviewed with
the Budget and Finance Committee (Lawrason and Montgomery)
The Committee is in general agreement with the City
Manager's recommendations.
The following overview highlights the more significant
points and changes contained in the proposed Budget:
1. The Arroyo Vista Recreation Center began operation in
June 1994. It added new 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 open 7 days a week for
about 80 hours. In addition to the Recreation
Supervisor, 1,784 hours was budgeted for Recreation
Leaders to staff the facility (exclusive of adult
sports and special events). In addition, 400 hours
for part -time maintenance staff (Department 149) was
provided for the primary maintenance of the facility.
Maintenance work at the center was occasionally
supplemented by full -time maintenance staff. For
1995/96, I'm proposing the addition of 1500 hours to
provide for teen programming, an additional 200 hours
to supplement other existing programs, and 600 hours
for additional part -time maintenance staff at a
combined cost of $25,000. This last item will provide
the equivalent of one -half (Z) man year for facility
maintenance.
2. Staff for the Senior Center is proposed to be
increased to the equivalent of two (2) full -time
positions. The full -time position of Senior Citizen
Coordinator must now be fully funded by the General
City Manager's Budget Message FY 1995/96
June 7, 1995
Page 5
Fund. For the past two years, this position was
partially funded by Title III of the Older Americans
Act which provided $10,000 for 1994/95. In 1994/95,
900 hours of part -time staffing was added at the cost
of about $5,900 funded by the General Fund. For
1995/96, the City will receive a Title III Older
Americans Act grant in the amount of $8,806.00 to fund
this position and allow for a slight increase in
hours. The City also received a grant to hire a
qualified low income senior to assist at the Senior
Center in the amount of $6,919. The City is required
to supplement the grant funding which will be
satisfied by providing in -kind services. The net
increase to the General Fund to provide the equivalent
of two (2) full -time positions is about $5,300.
3. The Ventura County Library Services Agency (Library
District) has requested funds from the City. Staff
and the Budget and Finance Committee have not included
this request in the proposed budget. The Library
District has requested as much as $52,000 in FY 95/96
to provide an additional 22 hours for 12 months. In
1994/95, 26 additional hours per week were estimated
to cost $50,790. In 1993/94, the Council appropriated
$14,670 from the General Fund Reserve to provide for
26 additional hours for 6 months. The Budget and
Finance Committee and City Council are scheduled to
receive a presentation from the Director of Library
Services at its June 12 and 21 meetings, respectively.
4. In 1994/95, the City Council appropriated $5,000 from
the General Fund Reserve as the City's contribution to
the Moorpark Chamber of Commerce 1995 Directory. The
work has not been completed, so this appropriation
needs to be carried over in the proposed budget if the
Chamber is going to complete this project.
5. The proposed budget does not include a recommended
General Fund contribution to the Equipment Replacement
Fund or Capital Improvement Fund. In 1994/95, the
City began to appropriate monies from other funds,
principally the Gas Tax and Community Development
Funds for equipment replacement purposes. The Gas Tax
fund is fully funded. It is recommended that the
other funds provide one -fifth of the required amount
of funding as a transfer each of the next five (5)
years. This requires $46,530 from the General Fund.
City Manager's Budget Message FY 1995/96
June 7, 1995
Page 6
The City last made a contribution to its Capital
Improvement Fund in the amount of $100,000 in 1992/93.
6. For police services, the estimated total cost increase
above 1994/95 is $111,084. This includes the added
position partially funded by the COPS Fast Grant. We
are disappointed that the projected cost increases are
still exceeding CPI increases but are hopeful that
overhead expenses for vehicle maintenance and Workers
Compensation reserves can be reduced. Police services
remain the largest expense in the General Fund at 62 %,
excluding the MRA contribution. The City Manager,
along with representatives of the four other cities
that contract with the Sheriff's Department, are still
meeting with Sheriff Carpenter to review the proposed
cost increase and related matters.
The estimated cost for vehicle maintenance has
declined by $17,967 from the 1994/95 estimate. There
has been no change to the formula, and the 1994/95
estimate was calculated too conservatively. As the
Council is aware, Ventura County and the ten (10)
cities have resolved the Booking Fees litigation.
This resulted in freeing up $213,000 in restricted
reserves from prior years and savings of $71,250 in
1994/95 with no need to budget for this item in
1995/96. It also anticipates funding in the amount of
$3,500 from Moorpark Unified School District and the
parent support groups to fund part of the CSO and
supplies related to the DARE program.
7. In Public Works, the City added an Intern position
mid -year. It is proposed to continue this position
for 1600 hours at a cost of $18,000 funded by Gas Tax.
This position provides assistance to both the Director
and Management Analyst on a number of projects such as
development of service level parameters, revisions to
agreements for contract services, completion of the
underground facilities atlas, and development of
public works inventories.
8. The Management Analyst position in Administrative
Services was left vacant for the last nine months of
the fiscal year to insure savings in the event revenue
did not meet projections. This was shown to be a
valuable position to all in -house departments and is
needed to help relieve the work load and provide
assistance to all departments. The person was
City Manager's Budget Message FY 1995/96
June 7, 1995
Page 7
generally assigned to work on specific projects, I'm
also proposing 400 hours for an Administrative Intern
at a cost of $3,908. This would be for work on
specific assignments in the Administrative Services
Department, generally during the summer vacation
period.
9. Funding of the Assistant to the City Manager is
proposed for adjustment by increasing the TDA
contribution by five percent (5 %). If approved, the
position would be funded 80% General Fund, 10% TDA,
and 10% Solid Waste.
10. While not currently funded in the budget, I would like
to consider funding in the amount of $5,000 to provide
Cultural Diversity Awareness training for all
employees and Introduction to Supervision to several
selected employees. These items came from discussions
with the employees during the climate survey.
11. $16,000 (shared 50 %/50% by City and MRA) is proposed
for a property tax analysis. This is a carryover from
1994/95. It was delayed in order to work out a
reimbursement provision to the City in the event
another Ventura County city uses the contractor to
conduct a similar analysis. The report will provide
an evaluation of past and current payments to insure
the City and MRA have received their full payments.
12. The City Council recently authorized purchase of an
AS400 computer. $60,000 is proposed for computers for
all departments in 1995/96. City staff will prepare a
computer plan to formalize the objectives of upgrades
and additions to our system.
13. To meet the requirements of ADA and to provide the
City a comprehensive review of all positions, a
Classification Study is proposed at a cost of $14,000.
The study will also include a compensation survey.
14. As part of the proposed salary /benefit contingency, I
will propose a nominal stipend for nine (9) EMT
trained City employees and a correction to the salary
range to correct a possible inequity.
15. The contract for preparation of the Downtown Specific
Plan in the amount of $66,600 will be administered by
the Community Development Department. Funding will be
City Manager's Budget Message FY 1995/96
June 7, 1995
Page 8
provided by the MRA. Administrative costs will be
offset by a portion of the recommended $79,000 MRA
payment to the Community Development Fund.
16. A number of changes were made in 1994/95 and are
proposed to continue in 1995/96 including:
A. An annual newsletter produced in- house. The
initial newsletter is scheduled to be mailed in
June. The proposed cost for 1995/96 is $2,500.
B. Use of outside contract to reproduce the City
Council packets.
C. A wellness program consisting of physicals and
quarterly training is proposed at a cost of
$5,654.
D. Special legal services have been included in a
number of departments to provide more control and
accountability. Costs for the Public Works
Department and Community Development Department
are charged to the Gas Tax and Community
Development Fund, respectively, when appropriate
and has resulted in an estimated General Fund
savings of $8,000 through the first nine (9)
months of the fiscal year.
E. The Emergency Management Department was
established to provide better tracking of costs
and accountability and increased emphasis of this
important activity.
F. In September, the Associate Planner left the
City, and the position was not filled. This
resulted in savings of $31,636 for the Community
Development Fund. It also resulted in the delay
on a few projects and the decision to contract
for preparation of the Downtown Specific Plan and
revisions to the Noise and OSCAR Elements. This
position is not proposed for funding in 1995/96.
In 1994/95, an estimated 2200 hours are expected to be
funded by developer deposits and another estimated 400
hours from the Citywide Traffic and Affordable Housing
funds. Development related activity has continued to be
City Manager's Budget Message FY 1995/96
June 7, 1995
Page 9
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. An approximate $204,874
balance is projected at June 30, 1995. $1,064,587 in
revenue and $1,268,772 in expenditures are estimated in
1995/96 with a projected June 30, 1995, fund balance of
only $689. The revenue includes a contribution of $79,000
for MRA. Not included are contributions from the General
Fund and other funds based on approved objectives. This
would not expect to exceed $30,000 to $40,000. 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.
The anticipated work on specific plans following the
General Plan Update is now occurring so there should be the
potential for additional developer funded work in the
future.
Community Development costs and trends must continue to be
closely looked at in the future. Planning costs versus
planning revenue are the biggest obstacle to a balanced
fund. A three -year comparison is as follows:
Costs $798,151
Revenue $157.079
Net: ($641,072)
Planning
1994/95
$592,094 $637,691
$354,670 $369,000
($237,424) ($268,691)
The Budget and Finance Committee and staff have developed
the proposed budget with the constraints and assumptions
addressed in this report. The Community Development Fund
continues to be a concern. The transfer from other funds
(MRA, General Fund, Citywide Traffic and Affordable
Housing) has helped. This should be addressed further as
part of the City's 5 -year Fiscal Study. This study is
currently in process and should be presented to the Council
by September.
The General Fund budget while showing a short -term deficit
of about $224,000 provides funding for an additional 40
City Manager's Budget Message FY 1995/96
June 7, 1995
Page 10
hours (without relief) for a deputy, 1700 hours of
additional recreation programming principally targeting
teens, $10,000 (plus $6,000 CDBG) for at -risk youth to
continue funding at the 1994/95 level and filling of the
vacant Management Analyst to provide support to all in-
house departments. As recommended, the funding needed for
these items can be provided from the 1994/95 savings. As
an alternative, expenditures can be reduced.
I recommend the use of the 1994/95 surplus to allow for an
increase in services as provided for with the proposed
budget.
5K:db
Enclosure: Attachment A
c: \docs \wpwin \citymgr \budmes95.96
Reserved Items
1 AD 85 -1
2 Future Park Maintenance
3 Management Analyst ,
4 Arroyo Vista Community Park
5 Public Safety
6 Youth Services
7 Undesignated
Subtotal
8 Emergency Supplies
9 Sr Center Coordinator
10 Emergency Generator
Subtotal
Available Undesignated
Grand Total
06/07/95 GAN ND.WK4
ATTACHMENT A
Designated
Remaining
6/30/95
60,743
26,334
269
87,346
22,000
1,359
23.359
4,221
'114,926
19 AM
CITY of MOORPARK
Status
of Gann Fund Balance
Designated
Sources
Uses
Designated
Sources Uses
FY 1993/94
FY 1994/95
FY 1993/94
Remaining
FY 1994/95 FY 1994/95
6/30/94
125,000
(123.451)
1,549
(1, 549)
25,000
25, 000
(25, 000)
100,000
(39,257)
60,743
119,000
(100.000)
19,000
(19:000)
75,000
75,000
(75:000)
5 1,667
(16,000)
35,667
(9.333)
269
269
495,936
- --
(278,708)
- --
217,228
(129.882)
35,000
35,000
(13,000)
32,412
(20.480)
11,932
(11,932)
23,000
------
10,000
------
- -
33,000
(31.641)
90,412
10,000
- - --
(20.48)
- - - - --
79,932
(56,573)
4,221
4,221
586,348
14,221
--- ------- - - - - - --
(299.188)
-- ------- -- - - - - --
301,381
--------------- --
(186.455)
ATTACHMENT A
Designated
Remaining
6/30/95
60,743
26,334
269
87,346
22,000
1,359
23.359
4,221
'114,926
19 AM