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Home My WebLink AboutAgenda Packet - April 10, 2006 - CCAGENDA SPECIAL MEETING OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY AZUSA LIGHT AND WATER 729 NORTH AZUSA AVENUE A. PRELIMINARY BUSINESS • Call to Order • Roll Call MONDAY, APRIL 10, 2006 6:30 P.M. B. PUBLIC PARTICIPATION - Please note that public comments are welcomed by recognition of the Mayor. C. REPORTS, UPDATES, AND ANNOUNCEMENTS FROM STAFF/COUNCIL D. AGENDA ITEM 1. MID YEAR REVIEW OF FY 2006 BUDGET. RECOMMENDED ACTION: This item is for information only. Staff will be providing a presentation at the workshop in order to provide Council with the necessary information to direct staff regarding proposed Budget amendments. E. CLOSED SESSION 1. CONFERENCE WITH LABOR NEGOTIATOR (Gov. Code Sec. 54957.6) Agency Negotiators: City Manager Delach and Assistant City Manager Person Organizations/Employee: ACEA, APMA, AMMA, CAPP, LABORERS, EXECUTIVE. 2. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Gov. Sec. 54957) Title: City Manager DATE: APRIL 6, 2006 TO: MEMBERS OF THE AZUSA CITY COUNCIL AND THE REDEVELOPMENT AGENCY RE: NOTICE OF A SPECIAL MEETING to be held on MONDAY, APRIL 10, 2006, at 6:30 p.m., at the Azusa Light and Water Conference Room, located at 729 North Azusa Avenue, Azusa, California, for the purpose of: MID YEAR REVIEW OF FY 2006 BUDGET. CONFERENCE WITH LABOR NEGOTIATOR (Gov. Code Sec. 54957.6 Agency Negotiators: City Manager Delach and Assistant City Manager Person Organizations/Employee: ACEA, APMA, AMMA, CAPP, LABORERS, EXECUTIVE. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Gov. Sec. 549571 Title: City Manager REAL PROPERTY NEGOTIATIONS (Gov. Code Sec. 54956.8) Address: 18331 E. Foothill Boulevard, Azusa, CA 91702 Negotiating Parties: Azusa Land Partners Agency Negotiators: City Manager Delach and Assistant City Manager Person Under Negotiation: Price and Terms of Payment CANDACE TOSCANC DEPUTY CITY CLERK I HEREBY CERTIFY that the below listed media were duly notified by Special Messenger or by fax the "NOTICE OF SPECIAL MEETING." AZUSA HERALD/SAN GABRIEL VALLEY TRIBUNE (signature) DATE CHARTER COMMUNICATIONS CABLE TV (signature) DATE LOS ANGELES TIMES (signature) /s/ CANDACE TOSCANO, DEPUTY CITY CLERK 04/10/06 DATE AGENDA ITEM TO: THE HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL L FROM: ALAN KREIMEIER, DIRECTOR OF ADMINISTRATIVE SERVICES/ CFO VIA: F. M. DELACH, CITY MANAGER DATE: April 10, 2006 «<<<< i �w�w SUBJECT: FISCAL YEAR 2006 MID -YEAR BUDGET REVIEW RECOMMENDATION There is no recommendation. Staff will be providing a presentation at the workshop in order to provide Council with the necessary information to direct staff regarding proposed Budget amendments. BACKGROUND The FY 2005-06 Budget was adopted with a $1.2 million gap between operating revenues and expenses in the City's General Fund. This gap was to be funded by the use of reserves. In an effort to reduce the use of reserves staff has reviewed the budget and have identified several potential changes that would have the effect of reducing the budget gap substantially. Based upon the direction received from Council at the workshop, staff will prepare the necessary actions to implement the changes and provide them to Council for approval. FISCAL IMPACT There is no fiscal impact as a result of this staff report. 9002 `0 � 1!adV uoiIBIuasaad jenpnI3 aeaA-piw Prelimina Observations • Budget was adopted utilizing $1.2 million in reserves to balance. • For the past several years budgets have had shortfalls resulting in: Cuts in personnel and services Early retirements Expectation of declining reserves An emphasis on protecting funds Observations cont. • Each year, through prudent management and frugal spending, the City has actually spent less than what was budgeted. • These savings have gone back into the General Fund allowing reserves to remain stable. • The City's ongoing revenues are at a level that requires continued financial prudence. General Fund Reserves Audited General Fund Balances Year Ending June 30, 2005 oa �� Designated for Compensated Absences 2,347,794 W, , Awl - Designated for Contingency 11000,324 Designated for Capital Projects 1,000,000 Designated for PD Officer Hiring 1,000,000 —/✓la Undesignated 4,887,653 Total 107235;771 General Fund Equivalents Rosedale Fund 3,500,000 I ly4 HWY. 39 Maint. Fund 1,799,546 44k4KW Equipment Replacement Fund 1,089,849 � L Liability Fund 116767377 Total :8-0659772Combined Total ,301,543 FY OS -06 Adopted Budget p _ p�\ j� Estimated FtindBalance Estimated Resenues Estimated Transfers Estimated Expenses Fstiamated Transfers Fscess Sources Estimated Fund Balance Fund 05 Yr End for FY 2006 In for FY2006 Out (ilses) 6/30/2006 General FundAundes' nated)._ 3,753,567 26,360,804 1,817A00 26.131,678 3,242.085 (1;195,959) 2,557,608 Special Resenue Fun State Gas Tax 1 12Q 43 0 [�Ot 150,000 970,143 2;624;190 1,654,047 873,760 Transit - Proposition'A' 648,000 0 831,897 0 (183,897) 689,863 Transit - Propositlon'C 697;744 449,000 0 697,052_OJ (248;052) 449;693 C D B G 0 70L460 0 701,460 0 0 0 Senior Nutrition 0 168,493 40,773 209266 0 0 0 Public Benefit Program 1,275,852 650;000 0 650,000 0 0 1,275.852 Head Start (11190) 0 0 0 0 0 (12,190) Air Qualitylmprovement 27,049 116,000 0 126919 0 (10,919) 16,130 State Grants and Seizures 1,070,163 47L809 0 635,087 0 (163,278) 906,885 SupplLaw Enforcement 105,238 3,200 0 108,438 0 (105 238) 0 COPS-UniversalHinng 0 0 0 0 0 0 0 Fire Safety Contract 0 120,000 1859,142 2,979,142 0 0 0 Capital Projects Funds Pad: In -Lieu 132,270 (177,114) 0 0 0 0 61,886 0 0 0 (61,886 132,270 (239.000) CapitalProjects _ 4,632.500 Monrovia Nursery 0 0 0 0 0 0 0 0 0 0 4fi32,500. 2,483_,427 Public Works Endo«ment 2.481427 Internal Seriice Funds Consumer Sen ice 92,340 4,931659 0 4933,659 0 0 92,340 Employee Benefit Self Insurance 0 0 1,490,100 157;237 0 0 0 0 2,135;848 157,237 0 0 0 0 (645;748) 0 0 1,620;181 92.374 2,265929_ Central Sen ices 92,374 Equipment Replacement 1,064238 0 0 0 0 0 1,064238 Intra-GJvemmentalLoan 9,758,259 0 0 0 0 0 9,758,259 IT Sen -ices 1 4,834 2,101,636 0 2101,636 0 0 4,834 Adopted Budget Issues • Fund Issues: 4Need to create Utility Mitigation Fund Need to create separate Rosedale Funds Need to create Hwy 39 Maint. Fund • Revenue Issues: Sales Tax Vehicle License Fees Utility Users Tax Property Tax Interest Income Misc. updates based on actuals Adopted Budaet Issues Cont. • Transfer Issues: Reduce General Fund "Transfers In" by $ 1,000,000 to reflect Council policy on Utility Fund interest. Increase "Transfers Out" by $ 75,000 to properly account for DWP grant for Forest Service Hdqtrs. Project. Adopted Budget Issues Cont. • Expenditure Issues: Increase to provide for ongoing early retirement expenses. Decrease.to reflect the proposed use of Gas Tax Funds to provide for right of way maintenance. Decrease to reflect proposed reduction in General Fund liability expense. FY 05-06 Budget Reconciliation REVENUE: Orig.Budget Revised I Difference REVISIONS: 26, 360, 804 27, 311, 565 950,761 TRANSFER REVISIONS: 1. Reduce Transfers In to account for Utility interest transfers being dedicated to Utility Impact Mitigation Fund per new Resolutions C-37& 38 1,817,000 817,000 2. Increase Transfers out to account for $75,000 DWP grant for Forest Seruc. Hdqtrs. inappropriately placed in General Fund being transferred back to Capital Proj. Fund (3,242,085) (3,317,085) Net Transfer Changes (1,075,000) EXPENDITURE REVISIONS: 1. Increase expenses to cover cost of "Golden Handshake" 0 190,267 2. Decrease expenses to reflect Gas Tax assuming costs for 1,084,840 0 Right of way maintenance instead of General Fund 3. Reduce General Fund contribution to Liability Fund and reduce 710,000 210,000 Liability budget to reflect actuals 1 1,794,8401 400,26711 Net Exp. Reduction 1,394,573 Net Budget Revisions 1,270,334 Original Budget Deficit (1 Revised Budget balance Revised Budget Summa Adopted Revised Budget I lNet Revisionsl Budget FY 05-06 Estimated Revenues 26,360,804 950,761 27,311,565 Transfers In 1,817,000 (11000,000) 817,000 Total Sources 28,177,804 (49,239)1 28,128,565 FY 05-06 Estimated Expenses 26,131,678 (1,394,573) 24,737,105 Transfers Out 31242,085 75,000 13,317,085 Total Uses 29,373,763 (1,3191573) 28,054,190 74,375 Surplus/(Deficit) (11195,959) Revised Fund Balances 3,753,569 26.360,804 1,812000 26,131,678 3242,085 (1,195,959) Estimated Estimated Estimated Estimated Estimated Estimated Estimated Fund Bal. Revenues Transfers Expenses Transfers Annual Fund Balance Fund 1 05 Yr End for FY 2006 In for FY 2006 Out BudgetBal 38,898 General Fund (undesignated) 6" 27,311,565 817,000 24,737,105 3,317,085 74,375 4,962,028 Special Revenue Funds State Gras Tax 623,587 1,322,910 - 1,084,840 150,000 88,070 711,657 Hwv. 39 Maint. 3,344,076 1,021,299 (1,021-299) 11799,546 Utility Mitigation 1,000000_ _1,3.21.299 _2,321,299 _ - Transit - Proposition'A' 873,760 648.000 821,873 (173,873) i 699,887 Transit - Proposition'C' 697,744 449,000 674,443 300.000 (525,443) 172,301 C D B G 701,460 701,460 - SeniorNutrition 168,493 40,773 209.266 - Public Benefit Program 1,275,852 650,000 650,000 1,275;852 Air Quality Improvement 22049 116,000 126,919 (10,919) 16,130 State Grants and Seizures 1-070,163 500,797 664,075 (163,278) 906,885 Suppl Law Enforcement 105,238 3,200 108,438 (105,238) - Fire Safety Contract 120,000 2,859,142 2,979,142 - Capital Projects Funds Park In -Lieu 132,270 - 25,000 (25,000) 107270 CapitalProjects (177,114) - 75,0001 - 61,886 - _ 13,114 3,500,000 (16000) Rosedale Contribution Fund 3,500,000 3,500,000 Rosedale Traffic Mitigation _J 1,132,500 1.132.500 Public Works Endowment 2,483,427 - - 2.483.427 Internal Service Funds Consumer Service 795,556 4.853956 4.853,956 - 795,556 Self Insurance _1,676,377_1318.65C li5.848 417.197 1,259 180 41 FY 06 07 Budget Schedule January 24 FY 2006-07 Budget Introduction for Dept. Hds. January 31 Budget Materials Distributed to Depts. February 13 Mid -Year Budget review and intro to 06/07 Process February 23 Final date for Personnel Request Submittals March 23 Dept. Budget requests returned to Finance April 10-27 Budget meetings with Departments and C.M. May 15 Preliminary Budget balanced by City Manager May 29 City Council Budget Study Session (tentative date.) June 19 Budget adopted by City Council Budget Philosophy • Align Department Budgets with Council Goals set during Council/ Staff workshop. • Prepare an easily understood working budget document that will be consistent from year to year and a reference document during the year. • Match operating revenues with operating expenses. (checking account) • Use of reserves for capital and one time discretionary expenses. (savings account) FY 06-07 Budget Sample PLBLICSAFETY•POUCE ACORDETAIL AccoudNumber Description Cost 1020310000 6201 plAorms&Laundv-Helmets, Cas Made&Bags, GcrlesJad(ets,UAlbms brAnest&Conwl Team,&ke Patrol, Reserve Ohs, PITErn plops, Crossing Guards Rain Gear, DB Raid Jackets & LoadLearing aksts,Tmdc Div Helmek, Boots, Pants, Gma, Eyc Protection & Re$ecdw\Acsts; SimunIJon Helmets, Unibrm Patches, Uniform 0ams (Sam Brom belt, name bgs)for New Employees; BodyArmor(movedwm 17140: increase of$14A00), $32,104 $9,090 6220TrounnpSchools-Cruses Against Police Oks,Customer Sha, DmrerAmramess, NotarySeminar,Tools forTolerence, Type l hail Tmg Poll Tmnim ScMah•AAanced Waal Affers, Basic Academy, CPOAPuNic Records Ad, Background Invest, Clandestine Lab Safety CPR Inswdere Update, Crisis Communica0e & Media, DAR, Dispatch Courtroom Testimony, Disaster Preparedness & Tenalsm Aomess, Facilit 4rCmne, FTOCourse, Farce Nswctofs Course, Homidde Imvest Intimal Albers School, ICI Criminal Core, kbbrOk, Narcotic Investigation, Narcotic M(No), POST WmtSeminar, RedarOpeator, Steel Gangs &Subcultures, TIC Basic & Intermediate Imesfigabon, TIC Reconsw77e4on, Tmq Ngr Course ._I_.� Duesc5ubscrbwns-Dues: ALEA Background Invest, CMAS,CATO,, COW Permits, CGA CAPE, CAPTO, CCUG,CHA, CLEARS, CNOACPCA CPOA, NLP, HA LACO Police Chief, NAPARS, NETOA NTOA Notary Iyer hip, POALAC, PSAP; Subscriptions: CSAIAMagazine, In Line of Duty, 911 Magazine, SG/Td6une $31,550 6221 6230 — $4,692 I 62361theetim6loderemes-Iketinps:APCO, CAFIL CAPE, CCUG, ChamberofComm an, CLEARS, SGV Chiefs Secretary, Extended Crime Scene, LACPCA P011A.C, SG/Command Os, SGVPeaw Oks, SG/ Police Chiefs, Sta6Detelopment (Kellogg West), Chief Mgs, Parking Fees, IAP Mend Lunch; Conferences: CPCA CPCA LACPCA Burglary, CAARS,CAPE, CATO, CCU G. CLEARS, Domestic Molenco, ExplomrCompebton, CGlk Homicide, Robbery, Sexual Assault $21,746' 6301 Leand Fees- SBK(over and above retainer), Manning, Marder,LiebedCassidy , LA DispctA:WmeyAVC hearings, Cads ale Testimony $27,200 l 6361 Polygraph & Background Checks - Increase due to new hires, vamndes and attrition $23,250 6493 Outside Svcs& Repairs -Cal 10, Cononefs Reports, LAGO Bookings, Non -Emergency Language Tansletion, Padding Citation Hearings, Signing Sw for Dispatch, Tansaipton Svcs, Safe Depose Box Rental; Police Went Audlcompleted $26,700 6496 Outside Processimi Document Shredding, Padding Ticket Processing: increased due to addition ofCSOposilons - $16,800' 9561 FudUlGasoline for Pawl Can and Motorcycles; Skyockaing gasoline costs retested in 05106 actuals; projected increase of $35,000brO61O7 $128.000-