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Home My WebLink About2003-05-20 - AGENDA REPORTS - FY03/04 OPERATING BUDGET & CIP (2)CITY OF SANTA CLARITA INTEROFFICE MEMORANDUM TO: Honorable Mayor, Members of the City Council and the Santa Clarita =u-7-aZp, nt Age cy FROM: City r DATE: May 20, 2003 SUBJECT: PROPOSED FISCAL YEAR 2003-2004 ANNUAL OPERATING BUDGET & CAPITAL IMPROVEMENT PROGRAM RECOMMENDED ACTION City Council / Redevelopment Agency review and comment on the proposed Fiscal Year (FY) 2003-2004 Annual Operating Budget and Five Year Capital Improvement Program. BACKGROUND Each year the City undergoes a budget process to develop the annual budget. This budget process is about six months, usually beginning in January and culminating in June with the adoption of a balanced annual budget. This year the Council Budget Subcommittee's guidance and leadership forged the framework for staff during this six-month process. At the March 3, 2003 Study Session, the City Council received a presentation on the state of the budget including the City's fiscal status, outlook, and update on the State budget crisis. At that meeting the Council was informed of the challenges the City was facing with the State budget deficit during the preparation of the FY 2003-2004 annual budget. As of today, there are still a number of uncertainties with the State budget deficit and the Governor's proposal to address the shortfall. Staff continues to work closely with legislators to ensure the State's budget problems do not become the City's problem. On May 13, 2003 the City Council received the proposed 2003-2004 Fiscal Year Budget and the 2004-2008 Five Year Capital Improvement Program. Despite the uncertainties of the State budget, I am pleased to present the Council with a balanced budget that addresses the potential loss in revenue from the State, increases reserves, increases efficiency, and continues the City Council's commitment to deliver quality services to the community. Overall, the General Fund portion of the budget (for both operating and capital budgets) is $57,575,341, which is 2% lower than last year. The General Fund operating budget is virtually Agenda Item: flat compared to last year due to operational efficiencies that were identified to offset necessary increases to bring major facilities online. The General Fund contribution to the capital budget has decreased by 23% from last year and is attributed to Council's direction to seek out alternative funding sources for capital projects. Because of the Council's leadership, staff has been highly successful in securing grants and special funding which has lessened the reliance on the General Fund to fund capital projects. The City's Operating Budget totals $95,928,470 and is up 13% this year. Again, it is important to note that although the operating budget is increasing overall, the General Fund portion of operating expenditures is virtually flat. This cautious approach is necessary given the uncertainty from the State's budget crisis. The total proposed Capital Improvement Program is $67,963,542, which is 100% more than last year. New funding of $45.6 million is new money (almost all grants and special funds) that has been identified to fund new projects and next phases of current projects. It is important to highlight that approximately 94% of the new CIP budget is special or restricted funds (meaning they can only be used for specific projects/purposes). Thus the total proposed budget is $163,085,812. The proposed Redevelopment Agency budget for FY 2003-2004 totals $871,325 made up of $571,325 in operating budget and $300,000 in capital budget. The proposed budget includes programming funds for the Newhall Streetscape Program, which is the Redevelopment Committee's top priority. Tonight, staff will provide the Council with an overview of the budget, including appropriations, revenues, and departmental budgets that are comprised of proposed projects, programs, and staffing for the upcoming fiscal year. In addition, staff will provide the Council with an overview of the City's Five -Year Capital Improvement Program. Staff is available to answer any questions concerning the budget or the programs and projects represented therein. KP:BG:mtc b get0 W- tWy sessions ejWa itan 5-20-03A)c Budget Study Session Agenda ► Budget Process ► Timeline ► Key Goals & 4 Cornerstone Approach ► State Budget Update ► General Fund ► Revenues ► Appropriations ► Department Budgets ► Redevelopment Agency ► Capital Improvement Program ► Discussion & Questions Budget Process ► January 6........... Budget Kick -Off ► Feb- May ......... Council Budget Committee ► May 13 ............ Budget Presented to Council ► May 14 ............ Budget Press Conference ► May 20 ............. Budget Study Sessions ► June 3 .............. Planning Commission ► June 5 ............. Parks & Recreation Commission ► June 10 ............ Public Hearing ► June 24 ............ Budget Adoption � vl 2003-04 Key Budget Goals & Approach Goals: ► Good Fiscal Planning • Exp. = Revenues • City Facilities on-line ► Plan for Future • Build City Reserves • Prepare for State Budget Crisis ► Community & Council Needs Approach: ► Assume $4.0 loss Revenue ► Efficiencies ► "Future Consid. List" ► Build Operating 2 State Budget Update • May Revision — State Budget Shortfall $38.2 Billion — "Pull the Trigger" to increase VLF by July `03 —Then VLF Backfill will disappear — Anticipated Litigation • Short Term Effects • Long Term Effects • League of California Cities 3 General Fund Revenues ------------ 40-16 35% 309/6 25%__ /5% 5% M 0% Saks Tex Property Tax VLF Franchise Fees Other ■■ GENERAL FUND SUMMARY • Total GF Resources $77,536,627 • Operating Expenditures $ 539282,602 • Capital Projects $ 4,2929739 • Operating Reserve $ 690009000 • Advance to Other Funds $ 896169647 • Operating Transfers $ 1,775,476 • Unreserved Fund Balance $ 395699163 Revenues Where the Money Comes From... All Other Rev. from 20% Other Agencies 38% Charges for Current Svc 5% Licenses & Permits Taxes 2% 25% Reserved Fund Balance NNW 10% FY 03-04 Proposed Fee Adjustments • Fees for services increasing by 2.8% (CPI) • Parking violation fee adjustments • Stormwater Utility Fee Increase - $1 per EDU • Proposed New Fees s Appropriations 36% $67.9 m Personnel O&M Cep. Outlay Capital Pmj,cl, IN 2002.2003 ■ 2003-2004 TOTAL APPROPRIATIONS $163,085,812 =mssAmww Where the Money Goes... (all funds) Parks, Rec. & Reserves & Trans. Eng. Comm Svc Dept Svc Svc 10% 3% 4%p Planning & Bldg Svs Tech Svc 3% 1% Field Svc Admin Svc 5% S% Transit City Mgr ]4% Office 2% Capital Public Safety Projects S% 42% N G City Manager's Office Total Budget $3,401,290 Reductions: • $30,000 State of the City newsletter • $15,000 Annual public opinion survey • $44,000 Management Analyst (freeze) Additions: • $60,000 film guide (offset with revenue) • $104,000 legislative advocacy • $15,000 Citizen Traffic Committee outreach • $60,000 in advertisements 1 City Attorney *new Department* Total Budget = $660,300 The City Attorney is committed to providing professional, quality legal services that ultimately protect the interests of the City of Santa Clarita, its divisions, the City Council, and the citizens of the community Administrative Services Total Budget $19,242,155 Reductions: Additions: • $43,490 consolidating $170,000 2004 municipal office supplies elections • $80,000 in technology • $80,000 insurance equipment, premiums maintenance, and consulting • $554,000 LMD New Zones & Irrigation • $14,150 in removal of upgrades leased equipment Buildim Svc Reductions: Additions: • $155,000 personnel $108,000 One Valley One reallocations Vision Ph. III • $20,500 savings in • $50,000 Las Lomas reduction to project contractual and professional services . $100,000 in contractual inspection services which includes the revenue offset H Transportation & Engineering Services Total Budget $6,381,580 Reductions: • $150,000 chargeback to capital projects • $116,000 freezing City Engineer • $50,000 reduction to median modification Additions: • $51,700 special districts position (non GF) NOMIL' i" +r Parks, Recreation, & Community Svc Total Budget $15,927,328 Reductions: Additions: • $78,800 Cowboy $1,042,850 Aquatics Poetry Festival Center • $52,000 Community Services Consulting • $10,800 Earth Kids • $21,340 operating efficiencies Sports Complex • $150,000 North Valencia II park • $60,000 Newhall Community Center • $42,660 Part -time staff for Child development • $46 000 Reduction $20,000 Youth Sports Park Maintenance E Field Services Total Budget $ 32,155,167 Adjustments: Additions: • $50,000 tree pruning $229,000 Replacement of 8 vehicles and 1 trailer • $60,000 county contracts and special supplies • $150,000 by reallocating payments for Transit use Public Safety • $19,000 hoist for corporate yard • $16,000 maintenance of the JoAnne Darcy Library • $8.0 m New Buses & Technology Total Budget $11,878,230 Adjustments: Additions: • $47,000 for unfilled New Motor Unit mid ear community services ( v ) officer • $25,000 Helicopter line item • $102,000 CIT team's vacation coverage • $50 000 Star Program Modification Reallocation of efficiencies to add traffic safety motor unit 10 Redevelopment Agency • Capital Projects $300,000 • Operations $571,325 • TOTAL APPROPRIATIONS $871,325 FY 03-04 Butlgel Appropriations Capital Projects 34% Operations 66 L— 1% MMMMUMMOM" 1 .....,it" 774 Redevelopment Agency Total Budget $871,325 Adjustments: • 25,000 reallocation rom Facade program • $15,000 reallocation from Street Faire Additions: • $300,000 Newhall Streetscape Program Redevelopment Committee's top priority Note: Facade Carryover $164,164 Streetscape #1 Priority 11 Future Considerations "Cut & Hold" List • 2003-2004 Annual Slurry Maintenance $1.0 M • Council Contingency Reduction $1.0 M • Median Landscaping $300 k • New Traffic Signal $180 k • Community Services Grants $100 k • Tree Pruning Schedule $ 50k • City Engineer Position (vacant) $116 k • Associate Planner Position (vacant) $ 78 k Capital Improvement Program 2004-2008 12 CIP Summary Capital Budget Category New funding Rebudget Total CIP Appropriations Budget $45,642,886 $22,320,656 $67,963,542 Rebudget 33% New Funding 4 67% 13 2003-04 CIP Funding Sources NNW Capital Projects by Category Streets & Bridges 31% Pa 3/0 Maint. 5% ITS 00/0 Beaut. & Lands. Fac. B Bldgs. 1% 37% Trails&Transit Circulation 2% 1% CIP TOTAL: $67,963,543 14 Transit Maintenance Facility • A $28.2 m project • First "teed certified" green transit building in S. Calif. • Feature alternative fuels and other built-in efficiencies • National Recognition • Significant community benefit GVR/Soledad Cyn Rd - Interchange • FY 03-04 funding $20.9 M • Elaborate design process f�• Public participation A safe link between Soledad Canyon Road and Golden Valley Road Keystone of Cross Valley Connector • Meets Community & Council Priority 15 Significant CIP Projects ➢ $20.2 million Transit Maintenance Facility ➢ $20.9 million GVR/Soledad Interchange ➢ $7.1 million Sierra Hwy Bridge Replace./Wide ➢ $3.8 million Newhall Community Center ➢ $2.8 million Bouquet Cyn Bridge Widening ➢ $2.1 million GVR Construction — payments ➢ $975 thousand Central Park Lighting ➢ $950 thousand Anawalt Parking Expansion Significant Capital Projects Maintenance: Projects under $500k: • $2.1 m Overlay $494 k Lost Cyn Riverpark Program • $1.0 m Slurry Program • $150 k Stormwater Flow -line Repair • $100k Sand Cyn Swales Removal • $404 k Placerita Cyn Sewer • $292 k River Park Prog. • $250 k Automated Red Light Enforcement • $75k Sidewalk Repair $50 k Sports Complex Master Plan 16 FY 2003-04 • Revenues Outpace Expenditures • Streamlining Results in over $1.0 m Reductions • Double Operating Reserve • Set Aside Revenues for Future Challenges 17 City of Santa Clarita Proposed Fiscal Year 2003-2004 Budget Future Consideration/Postpone List Annual Slurry 1,000,000 Median Landscaping 300,000 New Traffic Signal 180,000 Council Contingency 1,000,000 Community Service Grants 100,000 Meyer Research 15,000 Econ Dev Ads 35,000 Public Service Announcements 30,500 Materiel Delivery Vehicle 28,000 Account Clerk 47,960 City Engineer Position 115,510 Associate Planner Position 78,355 Annual Median Modification 50,000 Bucket Truck Rehab 18,000 Tree Pruning 50,000 Park Facility Workshop Design 65,000 Groundskeeper Position w/ vehicle 80,815 Clerk Typist - Registration 42,140 Pentamation upgrade 50,000 City Aerial Photo 120,000 Data Maintenance Position 65,000 Aquatics Center Clerk Typist 42,140 Aquatics Center GK II 52,230 Capital Projects Reserve 434,350 Total 4,000,000