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HomeMy WebLinkAbout051805 CC Budget Workshop Agenda In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the office of the City Clerk (951) 694-6444. Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements to ensure accessibility to that meeting [28. CFR 35.102.35.104 ADA Title II] I AGENDA TEMECULA CITY COUNCIL A BUDGET WORKSHOP MEETING CITY COUNCIL CHAMBERS 43200 BUSINESS PARK DRIVE MAY 18, 2005 -1:00 P.M. CALL TO ORDER: Mayor Jeff Comerchero Flag Salute: Councilman Washington ROLL CALL: Edwards, Naggar, Roberts, Washington, Comerchero 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 prior 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 1 Review of the FY 2005-06 ProPoSed Operatinq Budqet RECOMMENDATION: 1.1 Review and discuss the FY 2005-06 Proposed Operating Budget and provide direction to staff as appropriate. R\Agendal051805 2 Review of the Proposed FY 2006-10 Capitallmorovement Proqram RECOMMENDATION: 2.1 Review and discuss the proposed FY 2006-10 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 24, 2004; at 7:00 P.M., in the City Council Chambers, 43200 Business Park Drive, Temecula, California. R:\Agenda1051805 ITEM 1 APPROVAL CITY ATTORNEY DIR. OF FINAN E CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Council FROM: Shawn Nelson, City Manager DATE: May 18, 2005 SUBJECT: Review of the FY 2005-06 Proposed Operating Budget PREPARED BY: Genie Roberts, Director of Finance . Jason Simpson, Assistant Finance Director ~ RECOMMENDATION: That the City Council review and discuss the Operating Budget, and provide direction to staff as appropriate. FY 2005-06 Proposed DISCUSSION: Attached for your review is the FY 2005-06 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 Mav Revision BudQet The Govemor's 2004 May Revision package included a temporary two-year local govemment reduction of $1.3 billion statewide annually. The package also came with the Governor's promise to support a constiiutional amendment that would guarantee revenue stability and mandate reform for local governments, which was overwhelmingly passed by California voters in the form of Proposition 1A in November 2004. . The City's proposed share of the statewide reduction is $990,800 for FY05-06. Also included isa proposed VLF Gap repayment in FY06-07 of $1.3 million. City staff will continue to monitor the status of the State's Budgetforfurther potential impacts when the Governor releases the 2005 May Revise later this month. Current Condition-General Fund The City of Temecula remains in a 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, allowing additional funding to be programmed into the City's Capital Improvement Program. 1 General Fund Revenues The projected General Fund revenues are $56.5 million for FY 2005-06 which reflects a $4,219,821 or 8.1 % increase from the FY 2004-05 revenue estimates. The primary increases are due to the annexation of Redhawk development effective June 30, 2005. Some of the significant revenue increases are summarized below: ~ $2,880,000 increase in Sales Tax (to $29,200,000) ~ $669,198 increase in reimbursements from Capital Improvement Projects ~ $594,441 increase in Property Taxes ~ $411,344 increase in Operating Transfers In ~ $410,270 increase in VLF Property tax -in-lieu 4 ~ $303,299 increase in Franchise Fees ~ $268,000 increase in Plan Check fees ~ $200,000 in Vehicle Code Fines General Fund Expenditures The proposed budget of $56.3 million reflects an increase in General Fund expenditures of $4,414,353 or 8.5% from the FY 2004-05 budget. The primary increases affecting the General Fund include: 1) Police contract costs due to the addition of fourteen (14) sworn positions, 2) an increase in the "REST" contribution, 3) allocation for retiree health medical contributions, and 4) sales tax sharing agreement with the County regarding Redhawk annexation. Eight new positions are proposed to be added to the schedule of authorized positions due mainly to support the Redhawk annexation. The total net annual cost of these positions is approximately $545,705. Department Planning Public Works Public Works Public Works TCSD Support Services Building and Safety Position Code Enforcement Officer Assistant Signal Technician Lead Maintenance Worker . Maintenance Worker Lead Maintenance Workers (2) 50% Office Assistant (Conversion from Project) Office Specialist (Conversion from Project) During each budget cycle, the City Manager's Office reviews the organizational structure of each department to ensure that employees are performing work that is appropriate for the needs of the department and in accordance with the City's c1i3ssification plan. Six position reclassifications are proposed, at a total annual incremental cost of $21,033 for the position upgrades. The personnel . schedule also includes a change in job titles with no additional cost for two positions: (1) from Deputy Building Official to Deputy Director of Building and Safety and (2) from Assistant Engineer to Assessment District SpecialiSt. A summary of the proposed position upgrades is as follows:' Department TCSD Human Resources Code Enforcement Public Works Planning Building and Safety Proposed Position Senior Management Analyst Senior HR Analyst Code Enforcement Officer II Senior Office Specialist Senior Office Specialist Office Specialist Current Position Management Analyst Hr Analyst Code Enforcement Officer Office Specialist Office Specialist Office Assistant 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 approximately $849,764 in project and temporary help 2 costs, which represents 5.77% of the City's total General Fund personnel cost budget. Following is a summary of the significant items by department in the FY 2005-06 proposed budget: City Manaqer ~ Includes $40,000 funding for a federal lobbyist ~ Includes $42,000 funding for a state lobbyist. . Planninq/Code Enforcement ~ Reflects an increase due to the addition of a Code Enforcement Officer position Police ~ The following modifications are proposed to sworn staffing levels, exceeding the City's ratio of one sworn officer per thousand residents: . Addition of nine patrol officers (total of fourteen sworn positions added) . Addition of one school resource officer to be funded by the City . Addition of two community service officers ~ The City's ratio of one sworn officer per thousand residents will be exceeded by 5.5 officers. ~ Includes continued funding to support the Community Action Patrol ("CAP") program which would utilize citizen volunteers to perfonn certain functions. Fire ~ Reflects funding a Dedicated Fire Chief position at mid-year. Non-Departmental ~ The "REST" prograrn contribution to TCSD is proposed to be increased by $1,125,000 from $3,725,200 to $4,850,200. Operatinq Transfers Out ~ A $1,785,785 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, 2005 fund balance will be approximately $1 ,000,000 higher than originally expected. The proposed FY 2005-06 budget provides for an excess of revenues over expenditures (excluding operating transfers out) in the amount of $172,383, and the designation for economic uncertainties increased to $11.3 million, an amount equal to 20% of General Fund Appropriations at June 30, 2005. TEMECULA REDEVELOPMENT AGENCY (RDAI RDA Revenues Overall, a $198,870 or 1.4% increase in total RDA revenue is projected. Gross property tax increment revenue is projected to increase by $567,000 (4.5%). 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 Housinq ~ No significant changes 3 Redevelopment ~ $75,000 is included for the fayade improvement program . ~ $770,000 is included for the Educational Revenue Augmentation Fund (ERAF) shift Debt Service ~ A $321,010 increase is reflected in passthrough agreements as a result of increased tax increment revenue ~ Debt service payments are approximately $1,779,485. TEMECULA COMMUNITY SERVICES DISTRICT (TCSD) TCSD Revenues Overall, a $2,184,524 (15.8%) increase in revenues is projected for TCSD. The FY 2005-06 revenue estimates include no change to the special tax rate, however, the trash rates are being increased to cover the costs of providing the service. The total "REST" program revenue (from the City's General Fund) is proposed to be $4,850,200, a $1,125,000 increase from FY 2004-05. TCSD Expenditures The proposed Community Services District budget reflects a $1,993,079 (13.9%) increase in total expenditures from the current year budget. A summary of significant items is as follows: City-wide Operations ~ Includes Opening of the new Community Theater in Old Town Temecula ($636,901) ~ Includes funding for a cultural arts program ($142,893) ~ Includes two new Lead Maintenance Workers ($155,980) ~ $130,000 increase in rehabilitation due to Redhawk annexation (new water meters and median improvements) Service Level B ~ $82,500 increase in street lighting costs due to 158 new residential streets lights in Redhawk Service Level C ~ $170,500 increase in landscape maintenance costs Service Level D ~ $255,000 increase in refuse hauling costs is reflected, per conditions of the franchise fee agreement for refuse and recycling for a consumer price index adjustment 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 2005-06 budget continues to utilize surplus fund balance, in the following amounts: - . Citywide Operations . Service Level "B" . Service Level "C" . Service Level "R" 4 Service level "L" $122,731 . $ 55,855 $151,550 $ 2,105 $ 1,061 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. .4 INTERNAL SERVICE FUNDS Following is a discussion of significant items in the proposed Intemal Service Fund budgets: Insurance ~ Includes increase in $25,000 for property insurance premium cost increases Vehicles ~ One replacement and four new additional vehicle purchases are proposed as follows: ~ Replacement: . City Manager: one (1) new replacement vehicle; the Dedicated Fire Chief will receive the City Manager's current vehicle ~ New: . Code Enforcement: one (1) new midsize truck for Code Enforcement Officer . Public Works: one (1) Utility Truck for New Maintenance Crew . Public Works: one (1) Bucket Truck for Traffic Division (Signal maintenance) . TCSD: one (1) Utility Truck extended cab Information Systems ~ No significant changes Support Services ~ No significant changes Facilities .~ No significant changes FISCAL IMPACT: The proposed FY 2005-06 General Fund operating budget is a balanced budget that provides for an excess of General Fund revenues over operating expenditures of $172,383 (before operating transfers), and provides $1.8 million to be transferred to the Capital Improvement Program. The proposed budget provides for a $11.3 million designation for economic uncertainties, and maintains existing funds for open space acquisition as of June 30, 2005. Attachment: . Proposed FY 2005-06 Preliminary Operating Budget 5 -, ITEM 2 APPROVAL CITY ATTORNEY DIR. OF FINANC CITY MANAGER CITY OF TEMECULA AGENDA REPORT TO: City Council/ Board of Directors / Agency Members FROM: Shawn Nelson, City Manager DATE: May 18, 2005 SUBJECT: Review of the Proposed FY 2006-10 Capital Improvement Program PREPARED BY: Genie Roberts, Director of Finance ~ d" _ Gus Papagolos, Fiscal Services Manage~ . RECOMMENDATION: That the City Council review and discuss the proposed FY 2006-10 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. . CIRCULATION PROJECTS There are twenty-seven (27) circulation projects in the CIP totaling $208,345,723. The circulation projects represent the majority 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, State Route 79 South Medians. The first year ofthe CIP, Fiscal Year 2005-06 has a total circulation funding requirement of $66,909,038 and contains 22 priority one projects. All of these projects will have a significant result on traffic circulation and ultimately the quality of life in the City. INFRASTRUCTURE/OTHER PROJECTS Within the Infrastructure. section of the CIP there are twenty (20) projects totaling $60,741,485. The more complex projects include the Old Town Community Theater, two Fire Stations (Roripaugh and Wolf Creek) and the Temecula Library. The Fiscal Year 2005-06 funding is over $37 million 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 $25,417,852. Of the twenty-six (26) park projects identified in this year's CIP, twenty (20) are fully funded. Other park projects of interest are Multi-Trails System - Margarita Bikeway, Redhawk Park Improvements, Vail Ranch Middle School Basketball Lighting, Community Dog Park and Roripaugh Ranch Open Space Trails. REDEVELOPMENT DEVELOPMENT AGENCY (RDAI 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 $8 million. COSTS/REVENUE OVERVIEW Overall, the total cost as identified in the CIP is $309,775,060. A total of 80 projects are included in the program, consisting of twenty-seven (27) Circulation Projects, twenty-seven (20) Infrastructure/ Other Projects, thirty-nine (26) Park Projects, and seven (7) Redevelopment Agency/Housing Projects. The following illustrates the associated costs for each project classification and total cost: Proiect Circulation Infrastructure/Other Projects Parks Redevelopment RDA/Housing Total Cost $208,345,723 $60,741,485 $ 25,417,852 $ 15.270.000 $309.775.060 Projected revenue from identified sources for the Five Year Capital Improvement Program is $272,177 ,231. 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 2005-06 at $131,960,387, FY 2006-07 at $51,245,252 and in FY 2007-08 at $33,353,125. Included in this five year plan are thirty-five (35) 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 and are listed by project type. FISCAL IMPACT: The adoption of the FY 2006-10 Five Year Capital Improvement Program establishes the project appropriations for FY 2005"06. Attachment: Proposed City of Temecula Capital Improvement Program projects