HomeMy WebLinkAbout052004 CC Budget Workshop Agenda
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AGENDA
TEMECULA CITY COUNCIL
A BUDGET WORKSHOP MEETING
CITY COUNCIL CHAMBERS
43200 BUSINESS PARK DRIVE
MAY 20,2004-10:00 A.M.
CALL TO ORDER:
Mayor Mike Naggar
Flag Salute:
Councilman Washington
ROLL CALL:
Comerchero, Roberts, Stone, Washington, Naggar
PUBLIC COMMENTS
If you desire to speak to the Council on a matter not listed on the agenda, a pink
"Request to Speak" form should be filled out and filed with the City Clerk.
When you are called to speak, please come forward and state your name for the record.
For Council Business matters on the agenda, a "Request to Speak" form must be filed
with the City Clerk J2!iQ[ to the Council addressing that item. There is a five (5) minute
time limit for individual speakers.
CITY COUNCIL REPORTS
Reports by the members of the City Council on matters not on the agenda will be made
at this time. A total, not to exceed, ten (10) minutes will be devoted to these reports.
Convene a Joint Meeting of the City Council/Community Services District/Redevelopment
Agency
COUNCIL/DISTRICT/AGENCY BUSINESS
Review of the FY 2004-05 Proposed Operatina Budaet
RECOMMENDATION:
1.1
Review and discuss the FY 2004-05 Proposed Operating Budget and provide
direction to staff as appropriate.
R:\Agenda1052004
2
Review of the Proposed FY 2005-09 Capital Improvement Proaram
RECOMMENDATION:
2.1
Review and discuss the proposed FY 2005-09 Capital Improvement Program
(CIP) and provide direction to staff as appropriate.
CITY MANAGER'S REPORT
CITY ATTORNEY'S REPORT
ADJOURNMENT
Next regular meeting: Tuesday, May 25, 2004, at 7:00 P.M., in the City Council Chambers,
43200 Business Park Drive, Temecula, California.
R:\AgendaIO52004
ITEM 1
APPROVAL
CITY ATTORNEY
DIR. OF FINANCE
CITY MANAGER
¥Hl..
I
CITY OF TEMECULA
AGENDA REPORT
TO:
City Council
FROM:
Shawn Nelson, City Manager
DATE:
May 20, 2004
SUBJECT:
Review of the FY 2004-05 Proposed Operating Budget
PREPARED BY:
Genie Roberts, Director of Finance \?¡ V' c/x:
Jason Simpson, Assistant Finance Óir~ctor Du
RECOMMENDATION: That the City Council review and discuss the FY 2004-05 Proposed
Operating Budget, and provide direction to staff as appropriate.
DISCUSSION: Attached for your review is the FY 2004-05 Proposed Operating Budget,
which includes the following information for the City, Community Services District, and
Redevelopment Agency:
Summary schedules of revenues, expenditures, and changes in fund balance
Revenue detail by fund
Expenditure line item detail by fund or department
Current Condition-State of California May Revision Budaet
The Governor's May Revision package includes a temporary two-year local government reduction of
$1.3 billion statewide annually. The package also comes with the Governor's promise to support a
constitutional amendment that would guarantee revenue stability and mandate reform for local
governments.
The City's proposed share of the statewide reduction is estimated at $978,712 for FY04-05 and an
additional $978,712 for FY05-06, totaling $1,957,424. Also included is a proposed VLF Gap
repayment in FY06-07 of $1.3million. The City has $2.5 million reserved for State Budget impacts
that will cover this anticipated reduction. City staff will continue to monitor the status of the State's
Budget for further potential impacts.
Current Condition-General Fund
The City of Temecula remains in extremely healthy financial condition. Based upon the Finance
Department's revised estimate of revenues and expenditures for the current fiscal year, it appears
that most revenue estimates will be met or exceeded, and that actual expenditures will be less than
the budgeted appropriation amounts for an estimated total savings of $1 ,000,000.
General Fund Revenues
The projected General Fund revenues are $49.1 million for FY 2004-05 which reflects a $4,947,572
or 11.2% increase from the FY 2003-04 revenue estimates. Increases in fee revenue reflect the
new proposed User Fee structure. Some of the significant revenue increases are summarized
below:
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$1,565,740 increase in Motor Vehicle In-Lieu Revenue (State backfill restored)
$920,600 increase in Sales Tax (to $24,820,600)
$496,000 increase in Plan Check and Inspection for Fire Department
$378,350 increase in Plan Check fees
$300,000 increase in Building & Safety revenues
$317,860 increase in Property Taxes
$200,073 increase in land Development Fees
$147,460 increase in Transient Occupancy Tax
$78,000 increase in Franchise Fees
General Fund Expenditures
The proposed budget of $47.2 million reflects an increase in General Fund expenditures of
$3,114,464 or7.1 % from the FY2003-04 budget. The primary increases affecting the General Fund
include: 1) Police contract costs due to the addition of four sworn positions, 2) Fire Department
costs due to conversion to paramedic engines and contract costs and 3) an increase in the "REST"
contribution.
Personnel costs increases that impact the budget include: 1) the enhanced retirement benefit of
2.5% @ 55 for all regular authorized positions, 2) the increase of $25.00 in the benefit allowance to
$775 per month effective January 1, 2005 for all regular authorized positions per the City's labor
agreement, and 3) a cost of living increase of three percent.
Six new positions are proposed to be added to the schedule of authorized positions. The total net
annual cost of these positions is approximately $275,712.
Department
Fire
Public Works
Police
TCSD
Building & Safety
Information Systems
Position
Office Specialist
Office Assistant
Management Analyst
Theater Manager
Building Inspector II
System Engineer
Three position reclassifications are proposed, at a total annual incremental cost of $20,478 for the
position upgrades. The personnel schedule also includes a change in job title from Administrative
Secretary to Administrative Assistant and no additional cost to the City with this change. A summary
of the proposed position upgrades is as follows:
DeDt.
Fire
City Clerk
Building & Safety
Proposed Position
Adminstrative Assistant
Senior Records Coordinator
Building Inspector III
Current Position
Office Specialist
Records Coordinator
Building Inspector II
The proposed budget continues the City's practice of relying on project or temporary help to meet
short-term needs. Included in the proposed budget is approxirnately $722,840 in project and
2
temporary help costs, which represents 5.51% of the City's total General Fund personnel cost
budget. Following is a summary of the significant items by department in the FY 2004-05 proposed
budget:
Citv Manaaer
~ Includes $36,000 funding for a federal lobbyist
~ Includes $42,000 funding for a state lobbyist.
Citv Clerk
~ Includes $65,000 funding for an election as a result of City Council vacancy.
Finance
~ Reflects a significant reduction in consulting services due to the prior year contracts for
GASB 34 implementation and the user fee study.
Plannina/Code Enforcement
~ Reflects an increase due to the addition of a Code Enforcement Officer on a Temporary
basis.
Police
~ The following modifications are proposed to sworn staffing levels, exceeding the City's
ratio of one sworn officer per thousand residents:
Addition of two patrol officers
Addition of one school resource officer
Addition of one special teams officer
~ The City's ratio of one sworn officer per thousand residents will be exceeded by 4.5
officers.
~ Includes continued funding to support the Community Action Patrol ("CAP") program
which would utilize citizen volunteers to perform certain functions.
~ Includes $101,500 in support costs for various special events.
Fire
~ $544,440 increase in Fire Services contract costs due implementation of a labor
agreement and conversion to Paramedic engines (being phased in over a two-year
period).
Non-Departmental
~ The "REST" program contribution to TCSD is proposed to be increased from $3,117,275
to $3,612,000.
Operatina Transfers Out
~ A $3,730,816 transfer to the Capital Improvement Program is proposed.
Fund Balance
Due to anticipated additional revenues to be received and expenditure savings in the current fiscal
year, it is estimated that the June 30, 2004 fund balance will be approximately $1 ,000,000 higher
than originally expected. The proposed FY 2004-05 budget provides for an excess of revenues over
expenditures (excluding operating transfers out) in the amount of $1 ,953,670, and the designation
for economic uncertainties remains at $1 0 million with additionally designated funds of $2.5 million
for State budget impacts and an additional $548,000 for retiree health benefits at June 30, 2005.
3
TEMECULA REDEVELOPMENT AGENCY (RDA)
RDA Revenues
Overall, a $588,644 or 6.4% increase in total RDA revenue is projected (operating transfers
excluded). Gross property tax increment revenue is projected to increase by $884,644 (8.0%). This
increase is a reflection of retail and industrial development in the project area.
RDA Expenditures
A summary of the significant items included in the proposed budget is as follows:
low/Moderate Income Housina
~ No significant changes
RedeveloDment
~ $150,000 is included for the façade improvement program
~ $455,000 is included for the ERAF shift
Debt Service
~ A $246,000 increase is reflected in passthrough agreements as a result of increased tax
increment revenue
);- Debt service payments are approximately $1 ,494,400.
TEMECULA COMMUNITY SERVICES DISTRICT (TCSD)
TCSD Revenues
Overall, a $824,280 (6.6%) increase in revenues is projected for TCSD. The FY 2004-05 revenue
estimates include no change to the special tax rate, or to any of the TCSD assessment rates. The
total "REST" program revenue (from the City's General Fund) is proposed to be $3,612,000, a
$494,725 increase from FY 2003-04.
TCSD Expenditures
The proposed Community Services District budget reflects a $552,624 (5.7%) increase in total
expenditures from the current year budget. A summary of significant items is as follows:
Citv-wide ODerations
~ Includes full year operational & maintenance expenditures $219,300 for the Temecula
Children's Museum
~ Include partial year funding of $90,900 for the new Community Theater being
constructed in Old Town Temecula
Service Level B
~ $25,000 increase in street lighting costs
Service level C
~ $69,250 increase in landscape maintenance costs
Service Level D
~ $206,160 increase in refuse hauling costs is reflected, per conditions of the franchise fee
agreement for refuse and recycling for a consumer price index adjustment
4
TCSD Fund Balance
Surplus fund balance has been used over the past several fiscal years to fund ongoing operations
and maintenance costs. The proposed FY 2004-05 budget continues to utilize surplus fund
balance, in the following amounts:
Citywide Operations
Service level "B"
Service Level "D"
Service level "R"
$163,668
$ 36,420
$ 59,509
$ 2,541
It is anticipated that the actual amount of fund balance required to be used will be less than the
amounts reflected above, based on a demonstrated pattern of actual expenditures being less than
the budgeted amounts.
INTERNAL SERVICE FUNDS
Following is a discussion of significant items in the proposed Internal Service Fund budgets:
Insurance
~ Includes increase in $26,000 for property insurance premium cost increases
Vehicles
~ Three replacement and four new additional vehicle purchases are proposed as follows:
~ Replacement:
Building & Safety: two (2) new sedans for pool vehicle, projected cost
$30,000
TCSD: (1) One-ton cargo/Utility Van, projected cost $60,000
~ New:
Building & Safety: two (2) mid-size 4,400 to 5,900 GVWR Pickup Trucks
Fire: one (1) new midsize truck for an Inspector, projected cost $28,000
Public Works: one (1) passenger sedan for field staff
Information Svstems
~ No significant changes
SUDPort Services
~ No significant changes
Facilities
~ No significant changes
FISCAL IMPACT: The proposed FY 2004-05 General Fund operating budget is a balanced
budget that provides for an excess of General Fund revenues over operating expenditures of
$1,953,670 (before operating transfers), and provides $3.7 million to be transferred to the Capital
Improvement Program. The proposed budget provides for a $10 million designation for economic
uncertainties, maintains existing funds for open space acquisition, additionally designates funds for
retiree health benefits, and $2.5 million for State budget impacts as of June 30, 2004.
Attachment:
Proposed FY 2004-05 Operating Budget
5
ITEM 2
APPROVAL
CITY ATTORNEY
DIR. OF FINANCE
CITY MANAGER
CITY OF TEMECULA
AGENDA REPORT
TO:
City Council/ Board of Directors / Agency Members
FROM:
Shawn Nelson, City Manager
DATE:
May 20, 2004
SUBJECT:
Review of the Proposed FY 2005-09 Capital Improvement Program
PREPARED BY:
Genie Roberts, Director of Finance f¥:-
Gus Papagolos, Fiscal Services Mana~
RECOMMENDATION: That the City Council review and discuss the proposed FY 2005-09
Capital Improvement Program (CIP), and provide direction to staff as appropriate.
DISCUSSION: The CIP is the City's plan for providing public improvements which
exceed $25,000 in cost, have long-term life spans, and are nonrecurring. The proposed CIP
document serves as a planning tool for the coordination of financing and scheduling of all capital
improvement projects over the next five years.
CIP DEVELOPMENT
The bound document is presented for City Council review and comments, and is separated as
follows:
- General Information Regarding the Capital Improvement Program
- Revenue and Cost Summaries
- Circulation Projects
- Infrastructure/Other Projects
- Park Projects
- Redevelopment Development Agency (RDA) Projects
The proposed CIP is a culmination of four staff CIP workshops, which addressed each project for
feasibility, necessity, funding sources, and timing. All departments that were involved in the process
contributed significantly to the discussions, resulting in a realistic and comprehensive proposed five
year Capital Improvement Program.
Fi",oœ/P'pagg/B"dg,VCIP 05-091 CIPOS C,",,;! Wo""",,p.AGN
CIRCULATION PROJECTS
There are thirty-eight (38) circulation projects in the CIP totaling $284,329,338. The circulation
projects represent 67% of the available funding. Of particular interest is the French Valley
Interchange -Interim South Bound Off-Ramp, Rancho California Road Widening at Old Town Front
Street to South Bound 1-15, Pechanga Parkway Improvements, as well as, Winchester Road and
Jefferson Road Intersection Improvements. The first year of the CIP, Fiscal Year 2004-05 has a
total circulation funding requirement of $73,887,478 and contains 23 priority one projects. All of
these projects will have a significant result on traffic circulation and ultimately the quality of life in the
City.
At the May 11, 2004, City Council meeting, the City Council questioned the status of funding and
timing of the traffic signal at Jefferson Avenue and Sanborn Avenue. This signal is currently
programmed in the attached CIP and is fully funded in Fiscal Year 2007-08.
INFRASTRUCTURE/OTHER PROJECTS
Within the Infrastructure section of the CIP there are twenty seven (27) projects totaling
$98,089,488. The more complex projects include the Old Town Community Theater, two Fire
Stations (Roripaugh and Wolf Creek) and the Temecula Library. The Fiscal Year 2004-05 funding is
over $25,000,000 for Infrastructure projects.
PARK PROJECTS
The highlight in this section of the CIP is the new Sports Park which is fully funded. The total
funding for Park projects is $39,286,385. Of the thirty-nine (39) park projects identified in this year's
CIP, twenty-seven (27) are fully funded. Other park projects of interest are Pablo Apis Park, Vail
Ranch Middle School Basketball Lighting, Veteran's Memorial, and the Nakayama Garden and Tree
Lighting project proposed for the Duck Pond.
REDEVELOPMENT DEVELOPMENT AGENCY (RDA) PROJECTS
There are seven (7) RDA projects and all are fully funded over a five year CIP. These projects
include Old Town Mixed Use Housing, Old Town Southem Gateway Landscaping and the relocation
of historic sites in Old Town (Escallier House). Within the first year of the CIP, RDA projects total
over $5,000,000.
COSTS/REVENUE OVERVIEW
Overall, the total costas identified in the CIP is $457,297,944. A total of 111 projects are included in
the prograrn, consisting of thirty-eight (38) Circulation Projects, twenty-seven (27) Infrastructure/
Other Projects, thirty-nine (39) Park Projects, and seven (7) Redevelopment Agency/Housing
Projects. The following illustrates the associated costs for each project classification and total cost:
Project
Circulation
Infrastructure/Other Projects
Parks
Redevelopment RDA/Houslng
Total
Cost
$284,329,338
$ 98,089,488
$ 39,286,385
$ 13.717.733
$435422944
Projected revenue from identified sources for the Five Year Capital Improvement Program is
$291,955,728. Through the first three years of the five year program, there is adequate funding for
all proposed projects. The CIP is fully funded in FY 2004-05 at $122,357,869, FY 2005-06 at
$54,044,077 and in FY 2006-07 at $40,674,118.
Included in this five year plan are twenty-four (24) projects which currently do not fit into the five year
window, but warrant consideration and review in this document. These projects are proposed to be
funded by both assessment districts and unspecified funds in future years.
FISCAL IMPACT: The adoption of the FY 2005-09 Five Year Capital Improvement Program
establishes the project appropriations for FY 2004-05.
Attachment:
Proposed City of Temecula Capital Improvement Program document draft
F;oaoœlPepegg/B,dgeUCIP 05-091 CIPO' Co"ol Woo"hopAGN