HomeMy WebLinkAbout2007-05-22 - AGENDA REPORTS - PROPOSED FY 2007 2008 BUDGET (2)Agenda Item:�r�„R
CITY OF SANTA CLARITA
JOINT CITY COUNCIL/REDEVELOPMENT AGENCY
AGENDA REPORT
City Manager Approval: .4
-
PUBLIC HEARING Item to be presented by: Ken Pulskamp
DATE: May 22, 2007
SUBJECT: PROPOSED FISCAL YEAR 2007-2008 ANNUAL OPERATING
BUDGET AND FIVE-YEAR CAPITAL IMPROVEMENT
PROGRAM
DEPARTMENT: City Manager's Office
RECOMMENDED ACTION
City Council conduct the public hearing on the proposed Fiscal Year 2007-2008 Annual
Operating budget and Five -Year Capital Improvement Program, and schedule the budget for
adoption at the June 12, 2007, joint City Council and Redevelopment Agency meeting.
Redevelopment Agency conduct the public hearing on the proposed Fiscal Year 2007-2008
Annual Operating budget and Five -Year Capital Improvement Program, and schedule the budget
for adoption at the June 12, 2007, 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 2007-2008 Operating Budget, Redevelopment Agency Budget, and Five -Year
Capital Improvement Program.
The Fiscal Year 2007-2008 budget process was a six month effort that began in January. The
City Council Budget Sub -Committee, which is composed of Mayor McLean and Mayor Pro Tem
Kellar, has been involved in the budget process since the beginning and played a significant role
in the development of the recommended Fiscal Year 2007-2008 Budget.
Below is a summary of the recommended Fiscal Year 2007-2008 Annual Operating Budget and
Capital Improvement Program:
• Total Appropriations: $15990489379
• Total Operating Budget: $126,371,774
• Total Redevelopment Agency Appropriations: $1,570,207
• Total Capital Improvement Program Budget: $31,106,398
• Total Revenue Resources: $159,048,379
• Total General Fund Revenues: $87,755,865
• Total Special Revenues: $60,552,236
• Total Prior Year Fund Balance Resources: $10,740,278
• Total General Fund:
• Total General Fund Expenditures: $87,248,688
• Total General Fund Revenues: $87,755,865
• Total General Fund Reserves: $26,140,000
The proposed Fiscal Year 2007-2008 Budget appropriations total $159,048,379, which is a 13%
increase from the Fiscal Year 2006-2007 Adopted Budget. This is due to an increase in the
Capital Improvement Program and departmental operations, specifically for Public Safety,
Special Districts, Transit, and maintenance programs. This increase is also a result of the 4.5%
growth the City has incurred as a result of annexations and necessary to maintain exceptional
service levels to our residents and local businesses.
The City's largest fund is the General Fund, representing 55% or $87,755,865 of total projected
revenues for Fiscal Year 2007-2008. The top four General Fund revenue sources are Sales Tax,
Property Tax in Lieu of Vehicle License Fees (VLF), Property Tax, and Development Revenue
which compromise approximately 74% of the total General Fund revenue. Sales Tax continues
to be the City's largest General Fund revenue source accounting for 39% of the total General
Fund revenue, or $34,243,567 this year. This is a 5% increase over Fiscal Year 2006-2007.
The proposed General Fund appropriation totals $87,248,688. This is a 3% or $2,486,465
increase from the Fiscal Year 2006-2007 Adopted Budget. The proposed General Fund
allocation includes funding for operating departments ($69,265,867), capital projects
($10,536,817), debt services ($2,939,356), Council Contingency ($1,000,000) and transfers to
other funds ($3,506,648).
Funding for 15 new positions is included for programming and maintenance that will be coming
on-line during the fiscal year. However, only four of these positions will require 100% new
General Fund monies. The remaining 11 new positions will be funded out of Special Revenues
or expenditure offsets.
Of the total General Fund expenditure, Parks, Recreation and Community Services accounts for
the most, or 23%, of the City's General Fund operating budget. This is consistent with the City's
philosophy of making parks and recreation programs for our children and teens a priority.
General Fund reserves for Fiscal Year 2007-2008 total $26,140,000. Of this, 15% is operating
reserve that totals approximately $10.2 million. The General Fund reserve also designates
funding for capital projects, Newhall Redevelopment, MTA Grant Match, Cemex, Whittaker
Bermite, and South Santa Clarita Annexation.
Projected revenue resources for Fiscal Year 2007-2008 total $159,048,379, which is in line with
total appropriations. This total includes $10,740,278 in prior year fund balance, or revenues
generated during previous years, which will be used for one-time projects. Revenues for Fiscal
Year 2007-2008 are projected to decrease by 4% or $5,631,039. This decline is a result of a
slowdown in construction activity and the housing market.
Construction activity slowed down for the first time in several years due to a drop in residential
tract development, and several anticipated projects were delayed by developers due to the
softening market. Revenues tied to construction activities include Planning and Building
Permits, Bridge and Thoroughfare, Developer Fees, and Quimby.
The recommended Budget and Capital Improvement Program will be presented to the Planning
Commission on June 5, 2007. During this meeting the Planning Commission will be asked to
make a finding by minute action, that the recommended Fiscal Year 2007-2008 Budget and
Capital Improvement Program is consistent with the City's General Plan. In addition, the
recommended Budget will also be presented to the Parks, Recreation and Community Services
Commission on June 7, 2007.
ALTERNATIVE ACTIONS
Other action as determined by the City Council and the Redevelopment Agency,
FISCAL IMPACT
Projected revenue resources for Fiscal Year 2007-2008 total $159,048,379. The recommended
appropriation for Fiscal Year 2007-2008 totals $159,048,379.
ATTACHMENT
Recommended Fiscal Year 2007.2008 Draft Annual Operating Budget and Five -Year Capital
Improvement Program will be handed out during the City Council Meeting.
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. 2007/2008 and the Proposed five-year
Capital Improvement Program for 2008/2012 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 22nd day of May, 2007, 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,
Assistant to the City Manager, (661) 284-1412, Santa Clarita City Hall, 23920 Valencia
Blvd., Suite #300, Santa Clarita, CA.
Dated: May 11, 2007
Sharon L. Dawson, CMC
City Clerk
Publish Date: May 12, 2007