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HomeMy WebLinkAbout2018-06-12 - AGENDA REPORTS - FY 2018-19 ANNUAL OPERATING BUDGET AND CIP (2)27 Projected Revenues A significant part of the budget process is estimating revenues for the upcoming fiscal year. This process is critical, as appropriations are based on these projections. Several factors are considered to ensure accuracy in our projections, including the state of the economy, historical trends, population projections/growth, and inflationary factors. With this information, the City can best determine the revenues available for allocation. Additionally, the City utilizes long- range financial planning to ensure long-term solvency. For Fiscal Year 2018-2019, total resources meet total expenditure appropriations, with the General Fund yielding a revenue surplus of $396,429. For certain one-time capital projects, the fund balance is appropriated. General Fund Revenues a projected increase of 1.4 percent when compared to the current adopted budget. General Fund Appropriations Fiscal Year 2018-2019 General Fund appropriations total $110.4 million. General Fund expenditures for Fiscal Year 2018-2019 include funding for operating departments, debt services, contingency, and transfers to other funds. General Fund Operating Reserve Reserves are a critical component of the budget because this is a funding source that can be counted on in case of an emergency or unforeseen opportunity. The City has been very fortunate to be able to maintain a healthy General Fund Operating Reserve during slow, economic times. The operating reserve will remain at 20 percent of operating expenditures. For Fiscal Year 2018- e will total $16.9 million. Capital Improvement Program The Capital Improvement Program (CIP) is a key component of the budget and is of vital importance to the community as a whole. The CIP represents a balanced approach for meeting major goals for projects, while maintaining critical ongoing maintenance. Comprised of a variety of multi-year and multi-funded capital projects, the CIP for Fiscal Year 2018-2019 totals $28.7 However, as large projects identified in Santa Clarita 2020 move into construction phases, additional funding will be brought before the City Council for appropriation and contract award. Station on Golden Valley Road. Page 2 Packet Pg. 300 27 ALTERNATIVE ACTION Other action as determined by the City Council and the Successor Agency to the former Redevelopment Agency. FISCAL IMPACT The Fiscal Year 2018-2019 Budget totals $203 million, including $28.7 million for the Capital Improvement Program. The proposed budget is balanced. ATTACHMENTS Public Hearing Notice Draft Annual Operating Budget and CIP FY 2018-2019 (available in the City Clerk's Reading File) Page 3 Packet Pg. 301 27.a CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING PUBLIC NOTICE IS HEREBY GIVEN: A Public Hearing will be held before the City Council of the City of Santa Clarita to consider the proposed budget for fiscal year 2018-19 and the Proposed Capital Improvement Program in the City of Santa Clarita. The budget will be heard by the City Council in the City Hall Council Chambers, 23920 Valencia Blvd., 1st Floor, the 12th day of June, 2018, at or after 6:00 p.m. If you wish to challenge this order in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council, at, or prior to, the public hearing. Proponents, opponents, and any interested persons may appear and be heard on this matter at that time. Further information may be obtained by contacting Jerrid McKenna, , at (661) 255-4921, Santa Clarita City Hall, 23920 Valencia Blvd., Suite #300, Santa Clarita, CA. Dated: May 31, 2018 Mary Cusick City Clerk Publish Date: June 1, 2018 Attachment: Public Hearing Notice (FISCAL YEAR 2018-2019 ANNUAL OPERATING BUDGET) Packet Pg. 302 28 Agenda Item: 28 CITY OF SANTA CLARITA AGENDA REPORT PUBLIC HEARINGS CITY MANAGER APPROVAL: DATE: June 12, 2018 SUBJECT: ANNUAL ADJUSTMENT OF FEES AND AMENDMENTS TO THE FEE SCHEDULE DEPARTMENT: Administrative Services PRESENTER: Lance O'Keefe RECOMMENDED ACTION City Council: 1. Conduct the public hearing on the proposed fee adjustments. 2. Adopt a resolution establishing a schedule of fees and charges for City services. BACKGROUND In 1990, the City Council directed staff to prepare a study identifying the full cost of providing services. The result of this effort was the adoption of the City Council Ordinance No. 90-17 establishing cost-recovery standards, adoption of the City of Santa Clarita's (City) first full-cost based fee schedule, and an ongoing mechanism to assess the cost of City services and to adjust fees accordingly. Propositions 4 and 13 establish the "costs reasonably borne" philosophy. The philosophy necessitates the determination of the full-business cost of each City-provided service, the identification of the beneficiary of each service, and the evaluation of services to determine an appropriate level of cost recovery for each. "Costs reasonably borne" implies a direct relationship between payment of fees and charges and receipts of services. The direct fee/service and tax equity relationship does not exist when tax monies are used to subsidize services received by only a small portion of the taxpaying public, or by non-residents. Every five years, the City examines the costs associated with providing services to the public. During Fiscal Year (FY) 2013-14, staff worked in conjunction with an independent third party to conduct a time-motion study to determine the most accurate cost of providing services to the public. All City departments participated in the study to determine the amount of time employees Page 1 Packet Pg. 303