HomeMy WebLinkAboutAGENDA REPORT 1996 0529 CC SPC ITEM 04AAGENDA REPORT
CITY OF MOORPARK
TO: Honorable City Council
FROM: Steven Kueny, City Manager
DATE: May 24, 1996 (Special CC Meeting of May 29, 1996)
SUBJECT: City Manager's Budget Message for Fiscal Year 1996/97
OVERVIEW
The proposed budget for Fiscal Year 1996/97 (FY96/97) is submitted to the City
Council for consideration.
For the first time in six years, the State is not facing a multi - billion dollar deficit. In the
last six years, the deficit in the State of California's budget has had negative impacts on
the City's traditional revenue sources. Neither the Governor nor the Legislature is
currently considering restoring the revenue or revenue sources taken from the City
during the past several years. This year, staff has continued to monitor Sacramento for
signs of efforts by the State to balance its budget by redirecting funds which would
otherwise have been available to the City. To date, Governor Wilson has proposed a
15% tax reduction however there has been little other information forthcoming from the
State. Therefore, it still remains impossible to predict the final outcome of the State's
budget process.
As a reminder of this impact on Moorpark, the State previously affected the City's
budget as follows:
(1) In the 1990/91 and 1991/92 fiscal years, the County was given the authority
to impose booking fees and property tax administration fees. The imposition of
booking fees was subsequently discontinued by Ventura County as part of a
settlement agreement with the 10 cities;
(2) Phasing in of a two -year elimination of the cigarette tax subvention;
(3) Diversion of 50% of the non - parking violation court fines;
(4) Reduction of the vehicle license fee (VLF) subvention by 18.75 %; and
(5) Taking, in FY 1992/93, of $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 FY
Memorandum to the Honorable City Council
City Manager's Budget Message for Fiscal Year 1996/97
May 24, 1996
Page 2
$40,000 from the then litigation restricted Redevelopment Agency. As a low
property tax City, Moorpark did not suffer any further revenue losses in FY
1993/94 or FY 1994/95 but did not have the previous cuts restored.
The combined loss in revenue and increase in fees has an impact of nearly $400,000
each year to the City's budget.
One piece of good news from the State is SB 681. Signed by the Governor in
February, 1996, it permanently repeals the maintenance of effort (MOE) provision from
the 1990 Proposition 111. This provision had been suspended since FY 1992/93. It
would have required the City to spend $68,197 per year from the General Fund in order
to have received Gas Tax and LTF funds.
The attached budget was prepared under the assumption that the State would not
further redirect City funds in its final budget. For a second consecutive year, no
additional revenue sources, such as business licenses, utility users taxes, or NPDES
assessments are proposed.
GENERAL FUND (001
Total General Fund revenue for FY 96/97 is estimated to be $5,089,721. This estimate
is an increase of $136,294 (2.75 %) from the projected total revenue for FY 95/96 of
$4,953,427. Total expenditures are estimated at $5,060,254, an increase of $308,163
(6.49°/x) over the projected total expenditures for FY 95/96 of $4,752,091.
There is modest overall growth of 3.79% projected for the city's three largest sources of
revenue: Property Tax, Sales Tax, and Vehicle License Fees. This modest growth
allows the City to maintain existing levels of service in all departments. Two notable
exceptions to this general rule are: most significantly, the proposed addition of one 40
hour /week patrol car in the Public Safety budget at an estimated cost of $90,000; and
an increase of 56% in hours (1,500 in FY 95/96 to 2,340 in FY 96/97) in the Recreation
budget for teen programming at an estimated cost of $7,316.
Comparing proposed expenditures with projected revenue for FY 96/97, there is a
modest $29,467 surplus. This is a result of the departments continuing to hold the line
on expenditures and, as mentioned above, generally maintaining current levels of
service.
Reflecting on FY 95/96 operations in the general fund, the following table contains
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Memorandum to the Honorable City Council
City Manager's Budget Message for Fiscal Year 1996/97
May 24, 1996
Page 3
expenditure savings and revenue above budgeted amounts data:
ITEM L FY 95/96
BUDGET
Revenue $4,807,998
Ex end. $4,858,825
FY 95/96 PROJ. ACTUAL
AVAILABLE OPERATING SAVINGS:
ADD: One -Time Transfers In from the MRA
TOTAL AVAILABLE SAVINGS:
$4,953,427
$4,752,091
SAVINGS /(DEFICIT)
$145,429
$106,734
$252,163
$649,968
$902,131
The transfers in from the MRA are the FY 1993/94 (a '/2 -year payment) and FY 1994/95
payments of interest under the loan agreement between the City and the Agency.
These payments were not realized in earlier years due to insufficient available funds in
the Redevelopment Agency Fund. This year, funds to make the interest payments
became available, and these one -time transfers were made. Additionally, there were
$82,300 in unanticipated income, including one -time rebates for the City's general
liability and workers compensation insurance premiums.
The above savings represent a one -time availability of funds. The Council may wish to
consider the following single -time expenditure uses for this savings (estimated costs,
where available, are in parentheses). Please note, this is a listing of potential uses for
the savings. It is recommended that this be referred to the Budget and Finance
Committee for consideration. Current savings projections would not fund 100% of the
following items:
(1) To maintain a $33.20 residential assessment rate, augmentation of
Assessment District 85 -1 for FY 1996/97 ($225,700);
(2) Full funding of the Equipment Replacement Fund ($365,622) from the
General Fund (with contributions from the other funds being returned to the
general fund at year end or upon availability of funds);
(3) Reserve funding for construction of a tennis court at Arroyo Vista Community
Park (AVCP) after completion of the revised conceptual master plan. ($50,000);
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Memorandum to the Honorable City Council
City Manager's Budget Message for Fiscal Year 1996/97
May 24, 1996
Page 4
(4) Construction of an asphalt overlay of the access road at AVCP ($100,000);
(5) Acquisition of an Interim Teen Center using modular facilities ($100,000);
(6) Funding to address the day laborer concerns ($15,000);
(7) Construction of sidewalk/drainage improvements at the Civic Center
($100,000);
(8) Installation of lighting for two (2) basketball courts at Mountain Meadows
Park ($20,000);
(9) Appropriate some of the savings to the Capital Improvement Project Fund
(CIP Fund), since no funding has been appropriated to this fund since Fiscal
Year 1992/93 ($200,000).
(10) Add to the General Fund Reserve (to maintain the reserve at the equivalent
of one year's general fund revenues approximately $500,000 would be needed);
01) Consider a one -year supplement to Library operations contingent upon JPA
and County actions;
(12) Maintain a contingency for the results of the Compensation Survey currently
near completion; and,
(13) Consider obtaining quotations for completion of the kitchen facilities at
AVCP.
COMMUNITY DEVELOPMENT 041
The community development activities in Moorpark continue to be funded in large part
by developer deposits and funds related to development.
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Memorandum to the Honorable City Council
City Manager's Budget Message for Fiscal Year 1996/97
May 24, 1996
Page 5
Based upon current actuals and projections for FY 1996/97, the Community
Development Fund shall continue with a moderate positive balance. The following
table summarizes data for the Community Development Fund:
DESCRIPTION
FY 95/96 Beginning Fund Balance
ADD: FY 95/96 Projected Revenue
LESS: FY 95/96 Projected Expenditures
FY 95/96 Projected Ending Fund Balance
ADD: FY 96/97 Projected Revenue
LESS: FY 96/97 Projected Expenditures
FY 96/97 Projected Ending Fund Balance
AMOUNT
$91,447
$909,046
$971,456
- $29,037
$1,424,172
$1,422,501
$30,708
The continuing objective of the Community Development Fund is the ability of the
Department functions to remain self- supporting. The proposed modifications to the
Chart of Accounts will greatly facilitate staffs ability to track expenses directly to
development projects, which will further this self- funding goal.
GENERAL BUDGET OVERVIEW
In bringing this balanced budget to the City Council, there are fewer changes in
departmental operations compared with prior years. However, some areas of particular
significance contained in the proposed budget include:
(1) There are a number of staffing - related items for consideration. With the
exception of the proposed modification of the MRA code enforcement position to
an Associate Planner position, none of the other possible full -time positions are
included in the proposed budget. The other department proposals include: (A)
additional code enforcement staffing; (B) crossing
enforcement staffing; and (C) Public Works supervisor/inspector. parking
Memorandum to the Honorable City Council
City Manager's Budget Message for Fiscal Year 1996/97
May 24, 1996
Page 6
(2) Additional part-time position hours are proposed as follows:
- 840 hours for Recreation Leader III to serve as a Teen Program Coordinator.
This will provide a total of 2340 hours for two part -time positions. This
arrangement would make it easier to have at least two staff at certain activities.
- Administrative Aide (computer assistant): This will allow the hiring of an
appropriately qualified person to do computer - related work such as, troubleshoot
problems, load new programs, install new peripheral. devices. Transfer of these
duties would save time for the Deputy City Manager, Administrative Services
Manager, and Management Analyst as well as reduce the consultant's time on
the more routine tasks (estimated savings $9,000 /yr.). The professional services
contract has been proposed at current levels of service for FY 96/97,- but based
upon Council action, the appropriate adjustment would be made.
(3) The proposed reorganization evaluation will involve the items in Number (1)
above as well as how best to consolidate public information duties.
DEPARTMENTAL DISCUSSIONS
Following are some of the significant changes on a departmental basis:
City Manager's Department (112)
An expenditure of $3,500 is proposed for attendance by the City Manager at the
International City Management Association Conference in Washington, D. C. There are
also additional funds shown for unspecified travel for meetings of $3,600 for the
department as a whole. There is also a proposed increase in the mileage allowance for
the Assistant to the City Manager (from $1,200 to $2,400) to achieve parity among the
Assistant to the City Manager, Director of Community Services, Director of Communit
Development, Director of Public Works and the Deputy City Manager. y
City Clerk's Department (113)
Costs,for the November General Election are estimated at $7,500. There are also
proposals to shift some records to off -site storage and upgrade the City's Optical Disk
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Memorandum to the Honorable City Council
City Manager's Budget Message for Fiscal Year 1996/97
May 24, 1996
Page 7
System.
City Attorney's Department (114)
Contractual services have been reduced by $22,000 to reflect the proposal to continue
having the City Attorney attend only one regular meeting each month and to charge for
the time at meetings to specific projects and funds other than the General Fund (where
appropriate). As in the past, costs to defend or initiate litigation (Special Legal
Services) above the budgeted amount are appropriated from the City's reserve as
needed.
Administrative Services (117)
In addition to the previously mentioned Administrative Aide position, it is proposed that
the Administrative Services Manager position be 100% funded by the General Fund,
with the transfer of CDBG responsibilities to the proposed Associate Planner (Housing)
Position.
There are also the following proposed expenditures: $1,000 for internet access
associated with the creation of the City of Moorpark's Home Page; $1,100 for increased
community promotion in the Recreation Guide; and $22,000 for this Department's
Portion of the Local Area Network (LAN).
Moorpark Cable Television (118)
A total of $40,600 of capital improvements are proposed. This includes a surge
protector to prevent damage to equipment, new microphones and other upgrades'to the
audio system
Public Safety (121)
While still above the CPI, comparing costs for equivalent levels of service (i.e.
excluding the additional patrol vehicle proposed for this year), projected expenditures
in this division increased by 3.78 %, a significant decrease in the rate of increase seen
in prior years. There is a proposed addition of one 40 hour /week patrol vehicle
($90,000) and a purchase of an additional vehicle ($36,456). Costs for vehicle
maintenance are not expected to increase over FY 95/96 levels. Additionally, the City's
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Memorandum to the Honorable City Council
City Manager's Budget Message for Fiscal Year 1996/97
May 24, 1996
Page 8
contributions for both FY 96/97 and FY 97/98 to the COPS FAST Grant position are
funded from an amount reserved last year (FY 94/95).
Community Development Department (131)
In FY 95/96, the Council appropriated a total of $69,908 for preparation of a Downtown
Specific Plan. Work on this project is ongoing and a carry-over of $44,908 to complete
this project in FY 96/97 is requested. Additionally, other projects currently underway
but not completed are the City -wide Traffic Study ($5,000 carry-over requested), the
OSCAR ($5,000 carry-over requested), the Noise Element ($1,000 carry-over
requested) and the Traffic Model Usage ($1,000 carry-over requested).
Costs to prepare a new Housing Element have been deleted since the work can be
deferred to FY 1997/98. An additional $2,000 is proposed to begin scanning maps into
the optical disk system. Also, an increase in legal services is included (from $8,900 to
$28,400) to address potential need for increased services. The Department's share of
the City -wide LAN is $10,000.
Public Works - Streets (142)
Numerous capital projects and specialized equipment items are included in this
division. The street related improvements are all projects previously reviewed by the
Council. The equipment items include equipment needed for working in confined
spaces (such as storm drain inlets), and airless paint sprayer, a hydraulic crane, and a
skip loader.
Landscape and Lighting District (143)
Based upon Council direction, funding for 560 hours of a Laborer has been added to
Zone 8 of AD 84 -2 at a projected cost of $4,732.
NPDES (145)
The increase in this program is for professional services. Each affected department
(Community Development, City Engineer, and Solid Waste) will fund its own staff costs
to perform the required work. No income is projected for this program. The General
Fund, Gas Tax Fund, and Community Development Fund will support the program.
Memorandum to the Honorable City Council
City Manager's Budget Message for Fiscal Year 1996/97
May 24, 1996
Page 9
Park Maintenance and Improvements (147)
Other than costs related to the addition of Poindexter Park and Country Trail Park,
there are only minor changes. A City staff person is now trained to inspect and certify
backflow prevention devices. This will result in a cost savings for the City. The
proposed improvements at AVCP are contingent upon receiving revenue from new
development. At a minimum, I recommend proceeding with developing a revised
conceptual master plan so the appropriate location can be determined for the desired
improvements. The other significant improvement as recommended by the Parks and
Recreation Commission is lighting of the basketball court at Campus Canyon Park.
Recreation (148)
As previously mentioned, there is a 56% increase in hours (from 1,500 to 2,340)
proposed to staff teen programs. Additionally, $13,000 have been budgeted in the
capital account for replacement of the divison's computers.
Additionally, due to an expansion of scope in cooperation with the City's DARE
program, the Recreation Celebration (held in June) has been increased to $4,150. The
July Fireworks Display has been increased to $10,105 (with reimbursement of $5,805
expected from community donations to this event).
Community Facilities Maintenance (149)
Two major areas of change are noted in this department: A proposal to replace the wall
materials in the Apricot Room ($3,000) and tables and folding chairs for AVRC
($4,500).
Senior Center (1 5o)
Due to a reduction in the federal grant which funds the part -time positions, the General
Fund is being asked to provide an additional $2,580
retain the same number of hours. The Senior Center Trust Fund will be askedons to to
support operations of the Center in the amount of $2,000, $1,000 of which will be used
to purchase a small video camera and tripod.
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Memorandum to the Honorable City Council
City Manager's Budget Message for Fiscal Year 1996/97
May 24, 1996
Page 10
Emergency Management (162
Overall costs for this division have decreased. However, in the event the Citrus Room
is modified for use as part of the Senior Center, costs could increase due to the then
required relocation of the Emergency Operations Center.
Redevelopment Agency Operations (170)
MRA operations have remained relatively stable compared with last year. Two
important exceptions are the proposal to spend $400,000 on housing rehabilitation
program in the coming year. Additionally, as previously mentioned, there is a request
to upgrade the Code Enforcement Officer - Housing to an Associate Planner. The
proposed increase in the MRA's housing programs support the upgrade of the CEO
Position.
The MRA's housing related programs have been very successful and, with the receipt
of a $50,000 HOME grant expected to be re- confirmed by the Ventura County Board of
Supervisors in July and the inclusion of $400,000 in proposed expenditures on housin g
rehabilitation in FY 96/97, the addition of an Associate Planner level staff member is
warranted.
CDBG (180)
The proposed shift of housing duties from the Administrative Services Department to
the MRA will allow for $15,000 of the proposed Associate Planner's costs to be charged
to CDBG.
Should that proposal be adopted, also proposed is the 100% funding of the
Administrative Services Manager position from the General Fund.
CAPITAL IMPROVEMENTS
After making much needed computer upgrades in FY 95/96, the City's General Fund
supported capital items have returned to a more modest level. Included in the
proposed $131,085 General Fund funded capital items list are: development of a
computer Local Area Network ($50,000 total project, $27,500 General Fund), an
upgrade of the Council meeting room audio system ($20,000), replacement of
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Memorandum to the Honorable City Council
City Manager's Budget Message for Fiscal Year 1996/97
May 24, 1996
Page 11
computers /printers in the Public Safety division ($12,400), replacement of
computers /printers in the Recreation Division ($13,000), and replacement of the IBM
copy machine at City Hall ($8,250).
In Public Works (Gas Tax), there is a proposal to purchase a skip loader at $32,500.
This piece of heavy equipment can also be used by the Parks Maintenance crews to
perform digging and hauling operations. Also proposed in Public Works is the
purchase of $11,500 in confined spaces safety equipment and 50% ($25,000) for a
proposed GIS system (The additional 50% - $25,000 is proposed to be funded from the
Community Development Fund.).
As part of the Capital Improvements included in the City's Landscape and Lighting
Assessment District AD 85 -1, there are proposals to construct parkway landscaping in
several areas throughout the City.
CAPITAL IMPROVEMENTS Continued
There are 25 public improvement projects proposed for funding in FY 96/97, the
majority of which are managed by the Public Works Department. The total proposed
capital improvement budget for FY 96/97 is $10,471,050. A listing of all proposed
capital projects is included as Attachment "A."
UNFUNDED ITEMS
In presenting this balanced budget to the Council, the following items were not
proposed for funding:
(1) A second code - enforcement officer position;
(2) Construction of a facility for use as a Teen Center;
(3) A Supervisor /inspector position in the Public Works Department;
(4) Costs for relocating the Emergency Operations Center (EOC) should the
Citrus Room be converted to permanent use as part of the Senior Center;
(5) Additional monies for augmenting County library operations at the Moorpark
Branch of the Ventura County Library System,
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Memorandum to the Honorable City Council
City Manager's Budget Message for Fiscal Year 1996/97
May 24, 1996
Page 12
(6) Expansion of the employee lounge and construction of employee restrooms;
(7) Construction of a marquee sign at 18 High Street;
(8) Poindexter Park dedication ceremony;
(9) Four Summer concerts; and,
(10) Various improvements at AVCP which may exceed anticipated revenue for
FY 1996/97 and FY 1997/98;
GENERAL OVERHEAD DISTRIBUTION
The City distribution of support staff in Finance, the City Clerk's Office, and for the
Receptionist was considered for modification in November, 1995, when staff completed
the Community Development Land Use Fee Update. Since this time, a study of the
actual work completed in these cost centers identified that the November assumption
was correct and that the current salaries of these positions be reduced to reflect the
actual work contributed. Staff identified that out of 28 City divisions, 27% of the work
completed by the Finance Department is directly attributable to the City's Park
Assessment District, and the proposal is to transfer these costs to divisions in the
General Fund. The study shows that the Community Development contribution to
these positions, combined with related expense distribution in the General Overhead,
would be reduced by $60,329, and that Redevelopment would decrease by $36,832.
These costs would be shifted to the General Fund ($52,195) and Gas Tax ($44,966).
Because of the current status of the General Fund, staff recommends that the potential
implementation of this study be reviewed by the City's Budget and Finance Committee.
FIVE YEAR FISCAL PLAN
The City's five year fiscal plan is near completion and will be presented to the City
Council in draft form later in the budget process.
STAFF RECOMMENDATION
That the City Council on May 29, 1996, receive an overview of the proposed FY 96/97
Budget from staff, refer the Budget to the Budget and Finance Committee, and set the
date(s) for subsequent budget workshops.
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