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HomeMy WebLinkAbout2006-06-13 - AGENDA REPORTS - ANNUAL BUDGET CIP (2)PUBLIC HEARING 167A 0:9 SUBJECT: 10109xi Ya1aki N Agenda Item: JOINT CITY OF SANTA CLARITA CITY COUNCIL/REDEVELOPMENT AGENCY AGENDA REPORT City Manager Approval: Item to be presented by: June 13, 2006 Ken Pulskamp PROPOSED FISCAL YEAR 2006-2007 ANNUAL OPERATING BUDGET AND FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM City Manager's Office RECOMMENDED ACTION City Council and Redevelopment Agency conduct the public hearing on the proposed Fiscal Year 2006-2007 Annual Operating Budget and Five -Year Capital Improvement Program, and schedule the budget for adoption at the June 27, 2006, joint City Council and Redevelopment Agency meeting. BACKGROUND This is a joint Public Hearing of the City Council and Redevelopment Agency on the proposed Fiscal Year 2006-2007 Operating Budget, Redevelopment Agency Budget, and Five -Year Capital Improvement Program. The Fiscal Year 2006-2007 budget process was a six month effort that began in January. The City Council Budget Sub -Committee which is composed of Mayor Pro Tem McLean and Council Member Kellar have been involved in the budget process since the beginning and played a significant role in the development of the recommended Fiscal Year 2006-2007 Budget. The recommended Budget and Capital Improvement Program was presented to the Planning Commission on June 6, 2006. The Planning Commission made a finding by minute action, that the recommended Fiscal Year 2006-2007 Budget and Capital Improvement Program was consistent with the City's General Plan. In addition, the recommended Budget was also presented to the Parks, Recreation and Community Services Commission on June 1, 2006. Below is a summary of the recommended Fiscal Year 2006-2007 Annual Operating Budget and Capital Improvement Program: • Total Appropriations: $138,896,995 • Total Capital Improvement Program Budget: $23,186,900 • Total Revenues: $151,685,140 • Total General Fund Revenues: $86,168,050 • Total Special Revenues: $65,517,090 The proposed Fiscal Year 2006-2007 Budget appropriations total $138,896,995, which is a 3% increase from the Fiscal Year 2005-2006 Adopted Budget. Projected revenues for Fiscal Year 2006-2007 total $151,685,140. This is a decrease of 24%, of $48,682,556 from Fiscal Year 2005-2006. This is due to a decrease in Special Revenue associated with the start or completion of large capital projects such as the Newhall Community Center, Transit Maintenance Facility, Cross Valley Connector Gap Closure, Magic Mountain Interchange and the Bouquet Canyon Bridge. The City's largest fund is the General Fund, representing 57% or $86,168,050 of total projected revenues for Fiscal Year 2006-2007. The top four General Fund revenue sources are Sales Tax, Property Tax in Lieu of Vehicle License Fees, Property Tax and Development Revenue which comprise 76% of the total General Fund revenue. Sales Tax continues to be the City's largest General Fund revenue source accounting for 38% of the total General Fund revenue or $32,374,985. This is a 7% increase over Fiscal Year 2005-2006. The proposed General Fund allocation or expenditure totals $84,614,299. This is a 5% decrease from Fiscal Year 2005-2006 due to a decrease in General Fund contribution to capital projects, resulting in more capital projects being funded out of Special Revenue sources. The proposed General Fund allocation for Fiscal Year 2006-2007 includes funding for operating departments ($63,640,370), capital projects ($6,356,400), debt services ($2,825,729), Council Contingency ($1,000,000), transfers to other funds ($5,791,800), and a loan to the Redevelopment Agency ($5,000,000) to fund the Streetscape and Restriping projects in the Downtown Newhall area. Of the total recommended General Fund expenditure, Parks, Recreation and Community Services accounts for 21 % of the City's General Fund operating budget. This is consistent with the City's philosophy of making parks and recreation programs and opportunities for our children and teens a priority. General Fund Reserves for Fiscal Year 2006-2007 total $25,850,000. This includes a 15% operating reserve that totals $12.7 million, a 1% increase from Fiscal Year 2005-2006. This was a goal set by the City Council in previous years that we have reached as a result of the City Council's leadership and responsible approach to budgeting. The total General Fund reserve also designates funding for Newhall Redevelopment, Cemex, Whittaker Bermite, South Santa Clarita Annexation, MTA Grant Match and Capital Projects. The recommended Redevelopment Agency budget for Fiscal Year 2006-2007 totals $1,522,870, which includes $289,750 for Personnel and $1,233,120 for Operations and Maintenance. ALTERNATIVE ACTIONS Other action as determined by the City Council and the Redevelopment Agency. FISCAL IMPACT Projected revenue for Fiscal Year 2006-2007 total $151,685,140. The recommended appropriation for Fiscal Year 2006-2007 totals $138,896,995. ATTACHMENTS Recommended Fiscal Year 2006-2007 Annual Operating Budget and Five -Year Capital Improvement Program available in the City Clerk's Reading File 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 2006/2007 and the Proposed five-year Capital Improvement Program for 2007/2011 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 13th day of June, 2006, 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 Tina Haddad, Management Analyst, (661) 284-1412, Santa Clarita City Hall, 23920 Valencia Blvd., Suite #300, Santa Clarita, CA. Dated: May 22, 2006 Sharon L. Dawson, CMC City Clerk Publish Date: June 2, 2006