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HomeMy WebLinkAboutAGENDA REPORT 1997 0528 CC SPC ITEM 03ATO: FROM: DATE: SUBJECT: OVERVIEW ,-. 1� Horioral1 ie City Council Steven Kueny, City Manager f ✓-A CM OF � �� of 199—Z ACI`ION, A_ �• �y 7 — May 23, 1997 (Special CC Meeting of May 28, 1997) City Manager's Budget Message for Fiscal Year 1997/98 The proposed budget for Fiscal Year 1997198 (FY 97/98) is submitted to the City Council for consideration. By recent reports, the State of California is enpying a robust economic recovery. The Governor's May, 1997 budget update reported approximately two bifiion dollars of unanticipated revenues flowing into the State's coffers during FY 96197. Furthermore, the state is also projecting $1.3 billion more in revenues in FY 97M than in FY 96/97. While Proposition 98 earmarks a large portion of these funds to the schools, these additional revenues have some in Sacramento believing the Legislature may even agree on a budget resolution in accord wig g - with the Corw*utkxmMy mandated July 1, 1997 deadline. Should this occur, it would be the first time this decade. Over the last seven years, the deficits in the State of California's budgets and other state actions have had negative impacts on the City's tradition revenue sources. As a reminder, the following historical State actions continue to impact the City's budget: (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 there litigation restricted Redevelopment Agency. As a low property tax city, Moorpark did not suffer any further revenue losses in FY 93/94 Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/1998 May 23, 1997 Page 2 or FY 94/95 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. Recent developments are in stark contract with the bleak pictures from the early 1990's where the State redirected back to the State Treasury over $3.6 billion of revenues which traditionally flowed to the cities. As of this date, two potential State actions directly affecting the City's budget are still being considered. Unlike past years, these actions would have a positive effect on City revenues. The first proposal would transfer $100 million from the Educational Revenue Augmentation Fund (ERAF) back to local governments (e. g. cities, counties, and special districts). ERAF is where local governments have had property taxes diverted since FY 92/93 to enable the State to meet its obligations to school districts (including Proposition 98 education funding level guarantees). The current proposal is a one -time shift with no guarantee for future growth or continuation in subsequent years. Any funds which would flow back to the City under this proposal would be in proportion to the amount each entity lost. The total lost by all local governments since FY 92/93 is approximately $3.6 billion. Since Moorpark, as a low property tax city, was not hit as hard as others, we are not likely to receive very much, if any, money. The second proposal pertains to returning 100% of the amount cities formerly received from traffic fines. Moorpark used to receive 80% of the base fines. Since FY 90/91, the City has received only 43% of the base fines. The Legislature has been considering action to allow cities to receive 60% of the base fines. Due to the uncertainty of the outcome of these items, the proposed budget assumes neither action will result in added revenue for Moorpark in FY 97/98. The proposed budget assumes continued funding for the Citizen's Option for Public Safety (COPS), also known as the Supplemental Law Enforcement Services Fund (SLESF). The funds must be used for Police Services and can include anti -gang and crime prevention programs. In FY 96/97, Moorpark received $64,578. The monies were allocated as follows: ITEM A1NT Video Cameras $4,500 2 Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/1998 May 23, 1997 Page 3 ITEM ANT Motorcycle $23,078 Computer Upgrades $17,000 Community Services $3,800 Light Bar and Arrow Signs $1,800 Tel hone Enhancements $14,400 TOTAL: $"0578 A similar amount of money is projected for FY 97/98. Of the $66,500 projected, $45,700 is proposed for a civilian Administrative Assistant position in the Police Department. The attached budget was prepared under the assumption that the State would not further redirect City funds in its final budget nor provide any new or return previously diverted revenues. The proposed budget is also based on the continuation of the two existing maintenance assessment districts (AD 84 -2 and AD 85 -1) at similar levels as FY 96/97. With the passage of Proposition 218 in November 1996, the City will have to consider options to address at least the Parks Maintenance Assessment District (AD 85 -1). Information on the potential effects of Proposition 218 has been previously provided to the Council and has been provided again under separate cover. The Legislature continues to address implementation matters, but no definitive action has been taken to date. The City may impose the assessments for FY 97/98 using existing (i.e. pre- Proposition 218) methodology. It is our current opinion that the City will need to submit the Parks Assessment District for approval to the property owners in compliance with Proposition 218's provisions beginning in FY 98/99. To deal pro - actively with the effects of Proposition 218, staff will be bringing the Council additional information, including potential alternative analyses, later this year. MQl:&_Wq211 10 Total General Fund revenue for FY 97/98 is estimated to be $5,727,825. This estimate 3 Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 4 is an increase of $227,788 (4.14 %) from the projected total revenue for FY 96/97 of $5,500,037. Total expenditures are estimated at $5,715,992, an increase of $170,705 (3.08 %) over the projected total expenditures for FY 96/97 of $5,545,287. It should also be noted that of the 4.14% increase, almost 100% of the general fund revenue increase is expended in the Public Safety Division to offset the 5% projected increase in contract costs and expiration of the COPS FAST grant program. There is modest overall growth of 2.83% projected for the city's three largest sources of revenue: Sales Tax, Property Tax, and Vehicle License Fees. One interesting note: This is the first year where sales tax revenue estimates exceed those for property tax. The opening of Mission Bell Phase II (including the Albertson's Supermarket) has contributed to this gain. However, the City is still a low sales tax and property tax city. Additional sources of revenue which are held in the General Fund but which are restricted to special purposes include the $50,000 HOME Grant (which will be used to augment the City's Housing Rehabilitation Program) and the $66,500 SLESF Police Grant (which must be used to support public safety activities). AB 939 fees are also collected in the General Fund but are restricted for use on solid wastetwaste reduction expenditures. Approximately $20,000 of the General Fund balance are restricted AB 939 revenues. Due to recent State legislation, the City may now charge a fee for towing vehicles. We have estimated $9,000 in revenue from this source. As we look even further into the future, we should note that the franchise income realized by the City may be adversely impacted by the deregulation of the utility industry in California. As in FY 96/97, service levels are proposed to generally remain at current levels. We do, however, propose an increase in the number of hours for part-time staff to operate Arroyo Vista Recreation Center. Additionally, to allow for better tracking of operations and expenditures, staff has created the Arroyo Vista Recreation Center Division (Division 704). The new division will track expenses for the operations of the Recreation Center, including full and part-time staff, youth and adult sports programs, and teen programs. Prior to FY 97/98, these expenses were tracked in the Recreation Division (Division 700). Comparing proposed expenditures with projected revenue for FY 97/98, there is a slight $11,833 operating surplus. In FY 95/96, the Council designated uses for a projected $902,131 operational surplus. 4 Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 5 Following is a table which recounts the status of each item: "M A W&W SASOM 1 AD 85 -1 Assessment District $150,700 (96/97) Transferred into General Fund Off -Set 75,000 (97/98) the Assessment District Fund 2 Equipment Replacement/General $245,791 Transferred into Fund Only (through June 30, 1996) the Equipment Replacement Fund 3 C.I.P./Teen Center ($125,000 to $200,000 Recommended to the C.I.P. and $75,000 be allowed to appropriated for a modular center) remain in the General Fund Balance 4 AVCP Access Road $100,000 Appropriated for Access Road Project 5 AVCP Kitchen Equipment $10,000 $3,000 spend it FY 96/97 and $7,000 Requested to be carried Over into FY 97/98 6 Remain in General Fund Balance $120,640 In Fund Balance TOTAL: X2,131 Based upon current year -end estimates, operations from FY 96/97 are estimated to produce both a greater than budgeted revenue stream and a lower than budgeted expenditure level. The following table reflects the operational savings: The three largest sources which contributed to this unanticipated revenue are: (1) $175,840 in additional sales tax revenues; (2) a $64,300 increase in franchise fees (due to the payment of a one -time $80,000 franchise transfer fee by GI Rubbish); and (3) $35,253 of property tax collections above budget. On the expenditure side, the departments have remained diligent in their prudent use of city funds. The three largest contributors to the expenditure savings are: (1) The proposal to retain $125,000 in the general fund balance rather than make a transfer into a teen center improvement reserve; (2) $90,000 in savings in the Department of Community Services resulting from the vacancy in the Director of Community Services position and the proposal to not expend $75,000 for a modular teen center (total savings - $165,000); and, (3) $40,000 in savings from the Department of Administrative Services due to lower than expected operating supply purchases. The operational savings outlined above is a one -time only savings. The Council may wish to consider the following uses for the $660,934 (note that the savings will not fund 100% of these suggestions): (1) To augment AD 85 -1 assessments for 1997/98 to maintain the residential rate at the 1996/97 level. The Council set aside $75,000 for this from the 1995/96 surplus. (2) Park maintenance funding for 1998/99 in the event other funding sources are not available. (3) Expansion of offices at Arroyo Vista Recreation Center ($25,000). (4) Resurface basketball courts at Campus Canyon Park ($2,100), Glenwood Park ($2,800) and Mountain Meadows Park ($2,800), and tennis courts at Tierra C-� Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 7 Rejada Park ($3,000). (5) Construct fourth tennis court at Tierra Rejada Park ($25,000). (6) Loan to Park Improvement Fund for use at Arroyo Vista Community Park to: (A) Construct two lighted tennis courts ($100,000). (B) Pave and light the existing western parking lot consisting of 90 spaces. © Light the multipurpose court ($20,000). (D) Any of a number of other potential improvements. (7) Organization and Management Review including evaluation of in -house services for City Engineer and Building and Safety, computer systems engineering needs ($50,000), reorganization options including consolidation of public information activities, and projection of future staffing needs. This could be partially funded by Gas Tax and Community Development Funds. (8) City Hall expansion. (9) Citizen Needs Assessment and Satisfaction Survey ($16,000). (10) Customer Service Software ($5,000). (11) Management Analyst position ($65,000). (12) Appropriate some of the savings to the Capital Projects Fund; no funding has been appropriated to this fund since the 1992 /93 fiscal year. (13) Add to the General Fund Reserve (to maintain the reserve at the equivalent of one year's general fund revenues; approximately $300,000 would be needed). (14) A 15 -year Anniversary of Incorporation event. (15) 1998 Fireworks event. N Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 8 (16) 1998 summer concerts. (17) Construction of sidewalk/drainage improvements at the Civic Center ($100,000). (18) Set additional money aside for Teen Center. (19) Installation of lighting for two (2) basketball courts at Mountain Meadows Park ($20,000). (20) Establish and make initial contribution to Parks Improvements Replacement Fund. (21) Acquire a Geographical Information Systems (GIS). (22) Expansion of Library Services. (23) Additional kitchen facilities at Arroyo Vista Recreation Center. (24) Upgrade video equipment at Community Center. (25) Study to determine feasibility of transferring Waterworks District No. 1 to City. (26) Contribute $10,000 to Project Pride. KOC' IAN"0 • I OWN-01 The historical funding of Community Development Department activities almost wholly from development fees is maintained in FY 97/98. Based upon current actuals and projections for FY 1996/1997 and FY 1997/98, the Community Development Fund shall continue with a moderate positive balance. It should be pointed out that except for the build -out of Mountain Meadows, we don't expect the construction of new residential units to occur any earlier that the fourth quarter of FY 97/98 (possibly even a little later). The following table summarizes data for the Community Development Fund: 0 Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 9 ----De AUOUNT FY 98/97 Baonning Fund Balance $214,128 ADD: FY 96/97 Projected Revenue $1,175,651 LESS: FY 96/97 Projected Expenditures $1,213,599 FY 98/97 Projected Endkkq Fund Balance $176,180 ADD: FY 97/98 Projected Revenue $1,857,213 LESS: FY 97/98 Projected Expenditures $1,943,507 FY 97/98 P E2ft Fund Balance gym In order to better meet the goals and objectives assigned to the Community Development Department, the Director of Community Development has proposed several items within the Community Development Department. These proposals shall be discussed more thoroughly in the General Budget Overview section which follows. 9 • While the budget remains in substantially the same format as prior years, we have made several enhancements in the budget document for FY 97/98 to increase the readability of the document and to present more information to the Council and the public. Perhaps the most notable enhancement is the creation of a Capital Improvement Projects (CIP) section (which may be found under tab 9). Beginning in FY 96/97 and continuing in FY 97/98, the City's capital improvement projects are tracked in a single operating fund, the Capital Improvement Fund (Fund 400). New for FY 97/98 is the use of a Capital Outlay Worksheet. The Worksheet summarizes each of the City's capital improvement projects in one page. Additionally, the CIP is used as a planning tool, with future projects being included at the time they are proposed with an estimated date of beginning and completion. To assist the Council and public in reviewing changes in comparing fiscal years, staff has included additional graphical representations of the financial data for FY 97/98. Of course, the traditional tabular reports have been generated from the City's financial 0 Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 10 computer and are included in the budget document. STAFFING AUGMENTATIONS Studies have been completed in recent years which recommend augmenting staff levels in various departments in the City. This has included a recommendation from the City's auditors to add two management level positions in the Finance Division. For FY 97/98, several departments have requested additional staff. As is customary, I have had to compare the requests with the available resources to fund staffing augmentations. Information regarding each departmental request follows. Administrative Services Department (500) In FY 96/97, the Council authorized an increase in salary and part-time hours to fund a part-time clerical aide to perform computer - related maintenance duties. This has allowed the City to more rapidly respond to computer maintenance requests and save a substantial amount from our former maintenance contract (which was a $75 /hour charge). It is proposed to increase the number of hours and adjust the pay rate of this position to be equal to the administrative intern position. Public Safety Division (501) The Police Department has requested an additional Administrative Assistant position. With the relatively modest increase in General Fund revenues, the proposed position is supported because of the availability of SLESF grant funds for FY 97/98 and the reduction of one 20 -hour cadet positron. The subject position was originally added to handle administrative duties, which will now be assumed by the Administrative Assistant. Redevelopment Agency Operations (504) The recently created Management Analyst - Housing position will be assuming the CDBG administration duties in FY 97/98. This makes the position available for partial CDBG funding in the amount of $17,000. The remaining salary is divided 20% to the City sponsored Housing Fund (221) and 80% to the MBA's Housing Fund (232). Community Development Department (600) 10 Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 11 The Community Development Director proposed several new staff positions, including: one planning division intern, one code enforcement intem, an upgrade of a current, part-time clerical aide position to a part-time clerk/typist position, a full -time planning technician, a full -time associate planner, and a full-time planning manager. Recently, the addition of a management analyst and a second code enforcement officer has also been discussed. After reviewing the request with current resources and the recent addition of one full -time secretary position, I have chosen to recommend to the Council the two part-time intern positions (at 980 hours per fiscal year each), upgrade of the current part-time clerical aide to a clerk/typist (980 hours), and the creation of the planning manager position. Community Services Department (700) We have discussed the current and projected needs of the Community Services Department with the Interim Director of Community Services. As you will recall, the City also received an analysis of the Department's operations from Hanson and Associates. We are proposing to implement some of these suggestions, most notably, making more time available for program planning and increasing staff hours at Arroyo Vista Recreation Center. Current circumstances in the Department allow us an opportunity to suggest an operational reorganization of the Department. We propose the creation of a full -time Recreation Division Superintendent with responsibility for management of the Recreation Division, including: operations of the Arroyo Vista Recreation Center, all recreation classes, teen activities, youth and adult sports, and supervision of the Senior Center Coordinator. We also propose to fill the vacant Recreation Supervision position at either a Supervisor or Coordinator level. The creation of the proposed Superintendent position would correspond to a total shift of the Recreation Division to the Arroyo Vista Recreation Center, making AVRC the City's hub for recreation activities. In addition to the Superintendent position, it is also proposed to add 104 hours to the part-time salaries to allow for time to maintain the various marque boards in the City. It is also proposed to create a part-time (32 hours /week) Recreation Leader III position to serve as office coordinator for the AVRC. Senior Center Division (702) Recently, staff discovered the availability of additional Title V grants to fund a new 11 Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 12 clerical position in the Senior Center. Subject to approval of the grant funds in the amount of $6,839, it is proposed to create a 50% FTE Clerical Aide position in the Senior Center. The City's match will be met by in -kind services. This funding source is expected to be available for three years. With the expiration of the existing grant, funding for the grant funded position has been shifted to Community Development Block Grant. Public Works Department (800) The Deputy City Manager and Public Works Director have proposed the creation of a crossing guard supervisor position. As proposed, this position would have primary responsibility for supervising the City's seven crossing guard sites, filling in as a crossing guard when necessary. Currently, the crossing guard function is handled by the Management Analyst in Public Works and when absences occur, crossing guard duties are performed by the Public Works Maintenance Workers. When not involved in crossing guard duties, it is proposed that this position would provide parking enforcement functions and support other activities in the departments. This position would be funded 50% each by the Gas Tax and Traffic Safety Funds. DEPARTMENTAL DISCUSSIONS Following are some of the significant changes on a departmental basis: City Manager's Department (200) To provide 100% coverage at the executive secretary's position, it is proposed to add one additional hour to the executive secretary job share at an additional salary and benefit cost of $4,470. To partially offset this cost, there is a reduction in proposed spending for travel and mileage in the amount of $3,250. Public Transit Administration Division (203) There is a proposal to purchase a diesel bus for use in operating the Moorpark City Transit System. Funds for this $120,000 purchase would come largely from a Federal Section 9 Grant ($96,000) with the required 20% local match ($24,000) coming from 12 Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 13 TDA (Fund 204). There is also a request for $15,000 to provide paratransit services within the City. It is recommended that the Council allocate these funds and send this topic to the Transportation and Streets Committee for further review. City Clerk's Department (300) There are no City - funded elections scheduled during FY 97/98, which results in a $7,500 savings. The City Clerk is requesting funds to purchase a speaker timer and a color printer (for use in producing the City's informational brochures). There is a request for $500 to fund overtime in this Department. Additionally, the Star Newspapers has informed us of a 15% to 30% increase in legal advertising rates effective July 1, 1997. A similar increase will also occur for each of the next three years. This will cost an estimated $1,300 if the City has the same amount of mandated publishing. City Attorney's Department (400) The City Council policy of having the City Attorney attend only the second regular meeting each month is proposed to be continued in FY 97/98, maintaining the $12,000 per year savings from this item. General Fund expenditures for City Attorney services are maintained at FY 96/97 levels. As in past years, lawsuits would be funded from a General Fund reserve supplemental appropriation. Administrative Services Department (500) The Administrative Services Department is requesting an additional $28,143 for personnel services. This amount is derived from two main sources: (1) the reassignment of CDBG administration duties from the Administrative Services Manager resulting in the discontinuance of the CDBG contribution to the ASM's salary; and (2) the reclassification of a clerical aide to Administrative Intern. The latter request is made to reflect the increased level of skill required in this computer troubleshooting support position. 13 Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 14 To provide a plan for meeting the City's current and future space and staffing needs, a $25,000 allocation is requested for an organization /space study in FY 97/98. Additionally, the Administrative Services Department continues a $5,000 request for Country Days police coverage, $5,000 for the Chamber directory, and $3,000 for the Ventura County Economic Collaborative. Administrative Services has also noted a reduction in Contract Accountant services to a level of 600 total hours in FY 97/98 (200 hours from the General Fund). This results in a total savings of $13,920. Public Safety Division (501) The Sheriff's Department is requesting an overall increase in expenditures of $205,790 ($160,090 from the General Fund), or 7.18% over FY 96/97. In their expenditure request, the Sheriffs Department has included a new Administrative Assistant position (cost: $45,700). As was noted in the budget overview section, the proposed increase in the Public Safety budget will require the appropriation of almost 100% of the increase in general fund revenues projected for FY 97/98. The SLESF grant, which was funded at a level of $64,578 is expected to be renewed in FY 97/98 at a slightly higher level ($66,500). It is proposed to fund the new position (and some other personnel related and maintenance /operations purchases) from the SLESF grant. Two other grants, the COPS FAST Grant and the LLEBG Grant both expired in FY 97/98. Under the terms of the COPS FAST Grant, the City must maintain the position created using the grant monies at least to the expiration of FY 97/98 (at an estimated cost to the general fund this year of approximately $93,000). The $12,000 LLEBG grant funded items were generally one -time purchases and will not be continued in FY 97/98. Animal Regulation Division (502) Recent developments in other Ventura County cities may change the method in which Moorpark obtains its animal regulation services. However, since a concrete solution has not yet materialized, we have budgeted for these services based upon the latest figures provided by Ventura County. Should development warrant, the City Council may wish to seek an alternate provider for animal regulation services. 14 Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 15 Should the City of Simi Valley decide to seek an alternative supplier of animal regulation services, and the City remain with its current contractor, the County of Ventura, the resultant impact to the City is estimated at $30,000. CDBG Administration Division (503) As was presented to Council in this year's CDBG public hearings, the grant amount available for projects in FY 97/98 dropped from FY 96/97 levels. The most significant project to be funded with CDBG monies in FY 97/98 are improvements to the Senior Center. Additionally, administration responsibilities for the CDBG program will be transferred from the Administrative Services Manager to the Management Analyst - Housing in FY 97/98. Moorpark Redevelopment Agency Operations (504) The Redevelopment Agency, through its housing division, is requesting $557,670 to expand its successful Housing Rehabilitation Loan Program into FY 97/98 (that equates to 3 rehabilitations per month). The Agency itself will continue to fund public works projects in its State mandated mission to eliminate blight in the Redevelopment Area. Operational costs have remained stable comparing FY 96/97 with proposed FY 97/98. Please note that 20% of the City Manager's and 20% of the Deputy City Manager's salaries are charged to the MRA (in addition to other staff which provide services to the Agency). Community Development Department (600) The Community Development Department has made several new expenditure requests. Most notably, there are five requests to augment staffing in the Department. As economic conditions in the State continue to improve, the pace of development increases. The Department has requested the addition to full -time, regular staff of an associate planner and a planning technician. It is also proposed to increase part -time staff to include a code enforcement intern, a planning intern, and an upgrade of a current clerical aide to clerk/typist. The consolidation of housing programs to the Management 15 Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 16 Analyst - Housing position will make additional time available for departmental staff to work on other projects. There are significant projects scheduled for completion in FY 97/98. The Department is requesting $85,000 to complete a Development Impact Fee Study, $30,000 for completing the Housing Element, $30,000 for completion of the Safety Element Update, $15,000 for update of the Subdivision Ordinance, and $10,000 for the Downtown Specific Plan. The redevelopment agency will be contributing financially to projects within the Redevelopment Area or related to housing (in the amount of $35,000). Community Services Department (700) The Parks and Recreation Commission has made recommendations for capital expenditures from the Park Improvement Fund. I have summarized these suggestions in the following table and made the associated recommendations to the Council: Item Description Funding Source City Manager's Recommendation 1 Do not fund a modular teen center <$75,000> Concur General Fund Loan 2 Build a basketball court in a Zone Park Improvement Defer 3 park Fund 3 Replace wooden benches /tables $6,000 Concur in Zone 3 Parks Park Improvement Fund 4 Improve grass infields at Park Improvement Not supported Poindexter Park Fund 5 Replace wooden play equipment $15,000 Concur at Glenwood Park Park Improvement Fund Perhaps the most significant change in the Community Services Department operational budget for FY 97/98 is the creation of the Arroyo Vista Community Park iRl Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 17 Division (704). As mentioned above, this was done to provide a better management tool for operating the AVRC and its associated programs, such as Youth and Adult Sports and teen activities. Comparing the combined Divisions of 700 and 704 with FY 96/97 budgeted expenditures, the Community Services Department is requesting an overall $12,115 increase. Most of this is attributable to the increase in part-time staffing for AVRC. The Department is also requesting $10,000 for upgrading the RecWare computerized recreation class scheduling program to a multi -user version in FY 97/98. This is in anticipation of our Citywide Local Area Network being completed in the coming fiscal year. Cable TV Division (70 1) A $12,000 request (funded 100% by the Redevelopment Agency) for production of a promotional video is included in the FY 97/98 budget. Additionally, audio system upgrades and table microphones scheduled for FY 96/97 are also scheduled for completion prior to the close of FY 96/97. Senior Center Division (702) The existing Title V Senior Center Grant which funded $5,191 in part-time salaries in FY 96/97 has expired. Staff is recommending keeping staffing levels at the Senior Center at the same level as FY 96/97, with a contribution of $9,200 from CDBG to offset the expired Title V Grant funds. A new Title V Grant, which would fund a new position in the Senior Center Division has been applied for. Pending approval of the grant, we are recommending the addition of a .5 FTE Clerical Aide for the Senior Center. There is also a request for two new Senior Center activities: the Senior Games ($1,700) and a Volunteer Banquet ($2,300). There is also a request for $600 to purchase a computer printer for the Senior Center. Community Center Division (703) Several projects scheduled for FY 96/97 were completed, including: (1) the purchase of 17 Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 18 new banquet tables for AVRC; (2) the purchase of new folding chairs; (3) the acquisition of a new floor scrubber /buffer; and, (3) the partial purchase of new kitchen equipment for AVRC. A $7,000 cant' -over request is made to complete the kitchen equipment purchase in FY 97/98. Arroyo Vista Recreation Center Division (704) This division is new for FY 97/98. In prior years, costs now tracked in this division were in the Community Services Department (700). As the City has grown, the management of Arroyo Vista Recreation Center and the activities which are based there (including youth and adult sports and teen activities) have also grown. To provide a more effective tool for fiscal management of these activities, this new division was created. The Director of Community Services has proposed increasing part-time staffing levels at the center. Lighting and Landscape Assessment District (210.711) and Parks Maintenance District (210.710) The effects of Proposition 218 are still being evaluated by all cities throughout California. As was mentioned in the general overview, the City is currently proceeding with both assessment districts using pre - Proposition 218 methodology. However, current legal opinions lead us to believe that the Parks Assessment District (and the associated $600,000 in revenues derived from the Assessment) will be subject to property owner approval beginning in FY 98/99. The Lighting and Landscape District appear to be exempt from Proposition 218's provisions, and we are currently operating under that opinion. While staff will be bringing the Council additional information on the potential effects of Proposition 218, for the purposes of planning FY 97/98, staff is recommending the same levels of service as in prior fiscal years. Public Works Department (800) As mentioned earlier, the Department of Public Works' Capital Improvement Program which had been carried as part of the Streets Division (801) has been segregated into firs Memorandum to the Honorable City Council City Manager's Budget Message for Fiscal Year 1997/98 May 23, 1997 Page 19 its own section of the budget. Additionally, the creation of the Capital Improvement Fund (Fund 400) will provide additional tools for managing the City's growing capital improvements. This federally mandated program continues to be funded by the General Fund, with indirect staff contributions from other funds. CAPITAL EQUIPMENT ITEMS A listing of capital equipment requests is included as part of the budget. Notable items on the capital equipment requests for FY 97/98 include: $10,000 for a multi /user upgrade to the recently purchased RecWare software in the Community Services Department; and, $4,000 in skateboard area equipment for Arroyo Vista Community Park. 10161 IT111 11, PIA • That the City Council on May 28, 1997, receive an overview of the proposed FY 97/98 Budget from staff, refer the Budget to the Budget and Finance Committee, and continue budget discussions at the Special Meeting of June 11, 1997 already designated by the Council for such purpose with adoption of the Budget tentatively scheduled for said meeting. 19