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Home My WebLink About2007/03/01 Agenda I declare under penalty of perjury that I am employed by the r 'of Chula Vista in the Office of the City \.-."rk and that I posted tt:.!\ r , document on the bulletin board accordi~' f.t.- own Act reqUirement;"" .', { ~..:. ~ . ,-, ~ 0;"7 / IV. ftA,'W4:=> . - - ......'" -- ~F1,' Signed' ,~~~ CnY OF CHULA VISTA rAJ Cheryl Cox, Mayor Rudy Ramirez, Councilmember Jim Thumson, Interim City Manager John McCann, Council member Ann Moore, City Attorney Jerry R. Rindone, Councilmember Susan Bigelow, City Clerk Steve Castaneda, Councilmember March 1, 2007 6:00 P.M. John Lippitt Public Works Operations Center 1800 Maxwell Road CALL TO ORDER ROLL CALL: Councilmembers Castaneda, McCann, Ramirez, Rindone, and Mayor Cox PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE PUBLIC COMMENTS Persons speaking during Public Comments may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. 1. BUDGET WORKSHOP If you wish to speak on any item listed below, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. . Introduction . Fiscal Year 2006 - 2007 Second Quarter Report . Fiscal Year 2007 - 2008 Budget Update . 5- Y ear revenue and Expenditure Forecast Report . Fiscal Year 2006 - 2007 Councilmember Block Budgets Staff recommendation: Council hear the budget presentation and provide direction to staff regarding Fiscal Year 2006-2007 Councilmember Block Budgeting. ADJOURNMENT to the Regular Meeting on March 6, 2007 at 4:00 p.m. in the Council Chambers. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service request such accommodation at least forty-eight hours in advance for meetings and five days for scheduled services and activities. Please contact the City Clerk for specific information at (619) 691-5041 or Telecommunications Devices for the Deaf (TDD) at (619) 585-5655. California Relay Service is also available for the hearing impaired. Page 2 - Council Agenda htto:/ /www.chulavistaca.Rov March 1, 2007 3-I-D+ lVdqe+ 0lc.sp City Council Workshop ~\f?- -~- ~~= CITY Of CHUlA VISTA Budget Workshop Agenda · FY 2006/07 Second Quarter Report · FY 2007/08 Budget Update - Budget/Fiscal Policies - General Fund Base Budget and Trends - Budget process and next steps · 5-Year Forecast · Council Member Block Budgets 1 Second Quarter Report ISSUES AMOUNT ACTION PLAN AMOUNT Projected Re...enue Shortfall: Tax Re\lenues (net) . 1,651,608 Contingency Plan Sa\4ngs . 3,558,701 Development Rewnues . 2,371.875 Mgml. Vacant Positions (est). . 644,448 Other Departmental Rewnues . 506,156 $ 4,203,149 'Mid-Year Appropriations . 172,212 $ 4,701,851 Projected Impact to ReselVls . (498,702) "Represent. net Impact of MId-Year Council Approved Appropriations General Fund Reserve PROJECTED GENERAL FUND AVAILABLE BALANCE General Fund Reser.es July 1, 2006 Projected Rewnues & Transfers In Projected Expenditures & Transfers Out Rewnues a...er (under) Expenditures 'ProJected Available Fund Balance .. of June 3D, 2007 $ 14,929,410 $ 166.607,702 $ 167,106,404 $ (498,702) $ 14,430,708 Resenes as Percentage of General Fund Operating Budget 8.5% 2 Fiscal Policies 1 · The City's financial assets will be managed in a sound and prudent manner in order to ensure the continued viability of the organization. · A comprehensive Financial Plan will be developed and presented to the City Council for approval every two vears. Fiscal Policies · Recurring expenditures will be funded by recurring revenues. One-time revenues will be used for capital, reserve augmentation, or other non-recurring expenditures. · Accounting systems will be maintained in accordance with Generally Accepted Accounting Principles. 3 Fiscal Policies · Investment policy and practice will be in accordance with State statutes that emphasize safety and liquidity over yield, including quarterly status reports to the City Council. (Council Policy) · General Fund fiscal status reports reflecting comparisons of actual and projected performance with budget allocations for both revenues and expenditures will be presented to the City Council on a quarterly basis. (City Charter) Fiscal Policies · City operations will be managed and budgets prepared with the goal of maintaining an available fund balance in the General Fund of no less than eioht percent of the General Fund operating budget. (Council Policy) 4 Fiscal Policies Updated / New · Debt Service Policy - Update in Progress . Worker's Compensation I General Liability Reserve Policies - New policies to be proposed as part of long-term financial planning process ~Wt.. f!.1-; (m(" (HlJlAVI5IA FY 2007 j08 General Fund Base Budget FY06/07 Amended Budget $170.9 million . i Personnel Costs per MOU $5.5 million . 1 S&S Accounts $1.0 million . 1 Budgeted Salary Savings $0.9 million . i Fire aT Budget $0.7 million . 1 Debt Service $0.5 million . Mid-year 2007 Appropriations $0.5 million . New Storm Water Permit Compliance $0.5 million . i Fleet Replacement Charges $0.5 million . Otay Valley Regional Park Funding $0.2 million . Transfer of Public Liability Expense to Public Liability Expense Fund ($0.7 million) . Transfer RDA Debt to RDA ($1.1 million) . Elimination of 13 Vacant Positions: ($1.2 million) Planning (8), Engineering (4), Council (1) FY07/08 Base Budget $178.0 million 5 ~w?- ~!' - I..l1YOf CHULA VISTA Budget Trends: 76% General Fund Increase Since FY 2001/02 . $90 . ~ $80 ;;; $70 $80 $50 $40 $30 $20 $10 $- ~ ~ ------ -:::: .. ... _e . . .. . . FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 -0- Legislative and Administration - -Development & Maint -Public Safety - -Cutture and Leis....e Budget Trends . 194.5 new positions since FY 2001/02 - an 18.3% increase - 103.5 Safety, 74.25 Development and Maintenance, 10.5 Legislative & Administrative, 6_25 Community Services MOU salary increases averaging 3 to 5% per year - 5% POA, 4.4% IAFF, 3.1% Miscellaneous Health premium increases averaging 11 % per year - 9.5% Kaiser, 12.6% PacifiCare $21.3 million increase in PERS costs since FY 2001/02 (from $6.5 million in FY 2001102 to $27.8 million in FY 2007/08) - 17.4% to 40.3% for safety - 8.7% to 28.7% for miscellaneous Personnel services have increased from 72.3% to 81.4% of General Fund budget since FY 2001/02 6 ~\I~ ~= Budget Trends: CHUIA VISTA Personnel Services Share of General Fund Budget Millions $180 $160 $140 $120 $100 $80 $60 $40 $20 $- ~~ ~~ ~M ~~ ~oo ~~ ~oo FY 2007 j08 General Fund Reve n ues: $171.7 Million FY06J07 Adopted Revenues r' $170.1 million "'^'._mmmm.'.mmm___ ______________,___.__.~....__ ________.___________. . i Discretionary Revenues $6.6 million .........._...._.________________________________________...._______.._....____________________________________......_......u.....mo'.mm"_______ . i Flat Programmatic Revenues $0.1 million . ~ One-time Revenue I . ($4.0 million) . ~ RDA Staff Time Reimbursements ($1.1 million) FY07J08 Projected Revenues $171.7 million 7 ~Irf:. ::.~- C11YOf CHUlA VISTA Revenue Trends Discretionary vs. Program Revenue $180,000 $160,000 $140,000/ / $120,000 ~ $100,000 $80,000 $60,000 $40,000 $20,000 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Projected FY 2007 j08 Budget Gap: $6.3 Million FY07/08 Revenues Projections $171.7 million Minus FY07/08 Base Budget $178.0 million FY07/08 Base Budget Gap ($6.3 million) 8 Changes from Initial Budget Projections Initial Projected Budget Gap $10.1 million ($1.3 million) ($0.7 million) . 1 in potential "wildcard" issues . 1 Transfer of Public Liability Expense to Public Liability Fund . i cell phone site revenues . i grant revenues ($0.5 million) ($0.9 million) ($0.4 million) . t program revenues - Tow contracts, vehicle impound fees, Fire Prevention, Nature Center Current Projected Budget Gap $6.3 million Program Revenues & Net City Cost · Program revenues are broadly defined as those revenues generated by a given program or activity (e.g. recreation fees, building permit fees, sewer service fees). GENERAL FUND BUDGET PROGRAM REVENUES NET CITY COST 9 Discretionary Reven ues . Discretionary revenues are broadly defined as those revenues that are generated not by any given program or activity, but by general or specific taxing authority (e.g. property taxes, sales tax, and vehicle license revenues). Net City Cost Recreation S% Planning & Building 3% COmmunity Development 1% 10 Projected Sales Tax Growth FY2000 to FY201 3 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% FY FY FY FY FY FY FY FY FY FY FY FY FY FY 00 01 02 03 04 05 06 07 08 09 10 11 12 13 Five Year Forecast: Sales Tax Revenue Projected to Fiscal Year 2013 Millions $50 $45 $40 $35 $30 $25 $20 ~ $15 . $10 $5 $0 11 ~'1: Five Year Forecast: ClTYOf CHULA VISTA Sales Tax Per Capita $350 $300 $250 $200 $150 $100 $50 $- Carlsbad O1ula [Jel rv1ar 8 Cajon Esconddo Irrperial National San Diego $241 Vista $106 $328 $220 $205 Beach $25 City $243 $152 . General Retail II Construction III Food products 0 Transportation C] Business to Business 0 Mscellaneous ~I'f:. ~,1.... Five Year Forecast: CI1YOf CHULA VISTA Growth in Assessed Value 25.00% 20.00% 5.00% 15.00% . 10.00% 0.00% 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 ~Chula Vista ~County Overall 12 ~I(?- '" - Five Year Forecast: em Of CHUIA YISfA Debt Service Millions $140 $120 $10.0 o Non General Fund . General Furl:! $8.0 $40 $2.0 $- FY12 $7.1 $6.6 FY15 $6.1 $3.4 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY11 $2.5 $1.6 $4.1 $6.7 $7.5 $7.0 $7.1 $7.1 $3.3 $4.9 $6.2 $6.6 $6.2 $6.3 $6.4 $6.5 $200 $175 $150 $125 2005 2006 Actual Actual $143.2 $158.0 ....---- --- $137.8 $157.8 $~54) $(0.2) 9.70% 8.80% FY13 $7.1 $3.9 FY14 $6.3 $3.9 ~I(?- ~"'~'" Five Year Forecast: CflYOf CHUIA VISfA Projected Deficit/Surplus Summary $225 Millions o Expenditures . Revenues Surplus I (De:~~t) Reserves 2007 2008 2009 2010 2011 2012 2013 Est. Est. Est. Est. Est. Est. Est. $167.1 $171.8 $181.3 $188.8 $194.7 $202.0 $206.7 --- -_._-~-~._,- $166.6 $171.8 $180.0 $188.2 $195.9 $203.2 $209.5 $(0.5) $- .. ~~13) $(0.6) $1.2 $1.2 $2.7 8.50% 8.40% 7.20% 6.60% 7.10% 7.40% 8.50% 13 ~w~ ~.J..._ General Fund: Five Year Forecast CllYOF CHULA VISfA General Fund Reserves Projected to Fiscal Year 2013 50/0 300/0 25% 200/0 15% 10% 0% FY FY FY FY FY FY FY FY FY FY FY FY FY FY 00 01 02 03 04 05 06 07 08 09 10 11 12 13 TOT Comparison Data Transient Occupancy Tax Revenue per Capita $140 $20 Ii] Stockton . Escondido . Chula Vista Fremont o Riverside o Oceanside o Glendale o San Bernadino - . Bakersfield . Huntington Beach . Irvine . Carls bad $120 $100 $80 $60 . $40 14 Five Year Forecast 'i . Budget Process & Next Steps March to April Mid April _ (04/18?) Late April . I to May i ~ Early June City ManagerlDepartments to finalize proposed reductions to close budget gap Budget Workshop to review proposed measures to close budget gap Proposed Budget document developed and submitted to Council Late May Council Budget Workshop Budget presented to Council for adoption 15 Council Budget - Services & Supplies Ad m i n istration/Contingencies Other Professional Services Other Contractual Promotional Expense Printing & Binding Postage T ravel/Conference/Meeti ngs Phone Service Technology Replacement Charges Books, Publications, Maps Other Commodities $10,000 $414 $25,770 $440 $150 $1,844 $1,669 $796 $1,215 $400 $42,698 ~\/~ ~"''''''' ow or (HULA VISTA Proposed (ou nci I Budget FY06j07 Printing & $1,320 $660 $660 $660 $660 Binding Postage $450 $225 $225 $225 $225 Travel/Conf/ $5,532 $2,766 $2,766 $2,766 $2,766 Meetings Cell Phone $167 $167 $167 $167 $167 Service Other $4,500 $2,625 $2,625 $2,625 $2,625 Commodities Total $11,969 $6,443 $6,443 $6,443 $6,443 16 (au nci I Budget -Council direction on FY 2006/07 block budgeting 17