HomeMy WebLinkAboutAgenda Packet - April 11, 2011 - CC SpecialNOTICE AND CALL OF A SPECIAL MEETING
OF THE CITY COUNCIL OF THE CITY OF AZUSA
TO THE MEMBERS OF THE CITY COUNCIL OF THE CITY OF AZUSA:
NOTICE IS HEREBY GIVEN that a Special Meeting of the City Council of the City of Azusa is hereby called to be held
MONDAY. APRIL 11, 2011 at 6:30 p.m. at the Azusa Light and Water Conference Room located at 729 N. Azusa
Avenue, Azusa, California.
Said Special Meeting shall be for discussing, hearing and taking action on the items listed below:
AGENDA
A. PRELIMINARY BUSINESS
• Call to Order
• Roll Call
B. PUBLIC COMMENT — Limited to items listed on this Special Meeting Notice.
C. AGENDA ITEM
1. FISCAL YEAR 2010-11 MID -YEAR BUDGET REVIEW
RECOMMENDED ACTION:
There is no recommendation. Staff will be providing a presentation at the meeting in order to provide Council with
an update of the City's fiscal condition in preparation for the upcoming budget process.
D. CLOSED SESSION
1. PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Gov. Code See. 54957)
Title: City Manager
E. ADJOURNMENT
Adjourn
In compliance with Government Code Section 54957.5, agenda materials are availahle for inspection by members of the
public at the following locations: Azusa Cay Clerk's Office - 213 E. Foothill Boulevard, Azusa City Library - 729 N.
Dalton Avenue, and Azusa Police Department Lobhy - 725 N. Alameda, Azusa, California. In compliance with the
Americans with Disabilities Act, if you need special assistance to participate in a city meeting, please contact the City
Clerk at 626-812-5229.
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AZUSA
AGENDA ITEM
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ALAN KREIMEIER, DIRECTOR OF ADMINISTRATIVE SERVICES/CFO
VIA: F. M. DELACH, CITY MANAGER
DATE: APRIL 11, 2011
SUBJECT: FISCAL YEAR 2010-11 MID-YEAR BUDGET REVIEW
RECOMMENDATION
There is no recommendation. Staff will be providing a presentation at the meeting in order to
provide Council with an update of the City's fiscal condition in preparation for the upcoming
budget process.
BACKGROUND
The FY 2010-11 Budget was adopted in June of 2010 with an operating surplus in the City's
General Fund. Since this time, events have occurred which impact the City's finances. The
purpose of the mid-year review is to identify and explain these impacts to the Council and to
seek direction with respect to both the remainder of the current fiscal year and the preparation of
the budget for the upcoming year.
Based upon the direction received from Council at the workshop, staff will prepare necessary
actions to implement any changes and provide them to Council for approval.
FISCAL IMPACT
There is no fiscal impact as a result of this staff report. 1�,,
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Mid -Year Overview
• Progress towards major goals
• Post Audit review of FY 2009-10 ending General Fund
balance
• Projected FY 2010-11 year end General Fund balance
• Impacts from State Budget
• Continuing conservative fiscal practices are called for in
light of slow economic recovery.
Continuing Progress
Workers Compensation program showing reduced costs
FY 2010-11 Budgeted Capital Projects on Track for Completion
Target Open and generating sales tax
Approval of Vulcan mining permit and $1.5 Million Advance
Atlantis Gardens Negotiations with Developer
Renewed Development Activity in Rosedale r U-70t�-O
Goldline Construction Underway ---e- (lb` epw"Ll'
Waste Management MRF EIR circulated for comments
General Fund Balance
Beginning Balance (June 30, 2010)
FY 10-11 Estimated Revenues
Transfers In
Total FY 10-11 Sources
FY 10-11 Estimated Expenses
Transfers Out
Total FY 10-11 Uses
FY 10-11 Surplus/(Deficit)
Ending Balance
Adopted
Revised
Budget
Net Revisions
Budget
7,518,100
(2,117,100)
5,401,000
32,591,500
1,869,500
34,461,000
1,128,100
0
1,128,100
33,719,600
1,869,500
35,589,100
29,453,200
237,100
29,690,300
4,112,900
0
4,112,900
33,566,100
237,100
33,803,200
153,500
1,632,400
1,785 900
7,671,600
(484,700)
7,186,900
Economic Factors
• Annual inflation rate through February 2011 for the LA _
Area is 2.2%
• Interest rates remain at historic lows (LAIF rate at 0.5%
for March 2011)
• Regional Unemployment Remains Hi h (12.3% for
February of 2011 as reported by EDD
• Housing Prices Stabilizing (Up 1.1% year over year per
Zillow.Com)
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Expenditure Issues
• State Budget Takings, Deferrals and Eliminations - -
• Liability/ Workers Comp Expenses
• Proposed Fire Safety Contract Decrease ($ 79,000)
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• Fuel price fluctuations (effect on contracts, etc.)-Vr`'� j
• Employee contract cost impacts (Potential impact of
negotiated COLA's) xt- e�w�<o-4
Fiscal Prudence
Due to Fiscal Prudence for several years prior to the
current economic downturn, the City had Revenues in
excess of Expenditures.
That surplus went back into the General Fund allowing
reserves to increase and insure their availability for
contingencies and economic downturns.
Some Use of Reserves May be necessary to offset
reduced revenues and maintain Service levels until
Economic Recoveis Complete or New Revenues
come fully On-IineWarget, Vulcan, MRF).
Preliminary Budaet Directives
• Reduce General Fund related M&O costs ---
• Defer General Fund Capital Outlay Expenditures
• Any new Program Expenditures must be
matched with new revenues (Grants, etc.)
• Freeze all vacant positions until reviewed
Manager to determine if immediate critical
exists for replacement
• New positions only if supported
ongoing revenues or mandated
policy
by City
need
by increase in
by Council
Budaet Philosor)h
• 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.
• Use of reserves for capital, -one time
discretionary expenses and emergencies
• Maintenance of essential services
FY 2010-11 Budget Issues
• Preserving City services ---
• Focus on cost cutting/ revenue generating
measures
• Impacts on City of continued State/
Federal response to recession conditions
• Difficulty/ uncertainty of financial projection
in the current economic climate
• Possible Use of Reserves to Balance
Budget - ��
FY 2011-12 Budget Schedule
• February 10 Budget materials distributed to Departments
• March 3 Final date for Personnel Request Submittals
• March 17 Departmental Budget requests returned to Finance
• April 11 Mid -Year Budget review at Utility Board meeting
• April 4-21 Budget meetings with Departments & City Manager
• May 12 Preliminary Budget balanced by City Manager
• May 31 City Council Budget Study Session (tentative date)
• June 20 Final udget adopted by City Council