HomeMy WebLinkAbout2010/04/13 Item 18
CITY COUNCIL
AGENDA STATEMENT
~ \ 'f:. CITY OF
~ (HULA VISTA
APRIL 13,2010, Item IB
ITEM TITLE:
PUBLIC HEARING CONSIDERATION BY THE CITY COUNCIL OF THE
APPROVAL OF THE GENERAL FUND SPENDING
PLAN FOR THE FISCAL YEAR ENDING JUNE 30, 2011
RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING THE GENERAL FUND
SPENDING PLAN FOR THE CITY OF CHULA VISTA
FOR THE FISCAL YEAR ENDING JUNE 30, 2011
EXCLUDING CAPITAL PROJECTS LBI44 AND PR311
RESOLUTION B RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING THE SPENDING
PLAN FOR CAPITAL PROJECTS LB144 AND PR311
FOR FISCAL YEAR 2010-11
SUBMITTED BY:
REVIEWED BY:
FINANCE DIRECT~
CITY MANAGER
ASSISTANT CITY NAGER ")I
4/5THS VOTE: YES
NO X
SUMMARY
Tonight's action is consideration of the City Manager's proposed General Fund Spending
Plan for fiscal year 2010-11. The Spending Plan reflects the City Manager's recommended
allocation of resources for the coming fiscal year taking into account the continued impact
of the economic recession.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity, approval of
the Spending Plan for the City for fiscal year 2010-11, for compliance with the California
Environmental Quality Act (CEQA) and has determined that the activity is not a
"Project" as defined under Section 15378 of the State CEQA Guidelines because it
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involves only the allocation of funding; therefore, pursuant to Section 15060(c)(3) of the
State CEQA Guidelines the activity is not subject to CEQA.
RECOMMENDATION
,
That the City Council adopt the resolutions.
BOARDS/COMMISSION RECOMMENDATION
Not applicable.
DISCUSSION
In December 2007, the national economy officially entered a recession, now projected to
be the worst since the Great Depression of 1929. This significant decline in economic
activity has severely impacted all economic sectors including government agencies. The
City of Chula Vista felt the effects of the recession earlier than most agencies primarily
due to the rapid residential growth experienced during the past six years and the effects of
the foreclosure crisis, which eventually spread across the country.
The City has gone through an iterative budget adjustment process over the last few years
in an effort to bring expenditures in line with deteriorating revenues. As a result of the
proactive leadership of the City Council in authorizing budget reductions, the City has
successfully avoided impacting General Fund reserves despite the severe impacts felt
ftom the current recession.
Although there are signs of moderate economic recovery the City continues to experience
downward adjustments to its major revenues primarily due to the continued impacts of
the economic downturn in the housing market and retail market.
Budget Balancing Historv
Since 2007 the City has gone through five rounds of budget cuts in an effort to keep
expenditures in line with rapidly declining revenues. These reductions include cuts in the
City's Gen~ral fund, Redevelopment (RDA) and Housing funds, Fleet fund, and
Development Services fund (DSF). The estimated net cost reduction achieved through
each round of budget cuts is summarized in Table I below.
Table 1- Budget Reduction History
BUDGET REDUCTION FISCAL YEAR NET COST
PROGRAM IMPLEMENTED REDl CnON
April 2007
December 2007
April 2008
September 2008 - DSF
January 2009
FY 2007-08
FY 2007-08
FY 2008-09
.FY 2008-09
FY 2009-10
$10.1 M
$15.5 M
$ 10.8 M
$ 1.5 M
$ 20.0 M
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Please note - the net cost reductions summarized above cannot be considered
cumulatively. There are instances in which reductions were effective for a single fiscal
year only (for example, freezing a vacant position for one year). The same position may
have then been permanently eliminated in a later budget reduction program.
The adopted operating budget for the City in fiscal year 2009-10 included funding for
1,005 authorized permanent full time equivalent (FTE) positions. This number reflects
the elimination of 258.75 FTE since the fiscal year 2006-07 amended budget (a 20%
reduction). The net reduction in citywide authorized staffing through the fiscal year
2009-10 adopted budget is summarized in Table 2 below.
Table 2 - Permanent Staffing Reduction History
Oescri tion FTE Ad.i FTE Total
FY 2006-07 Amended Budget 1,263.75
April 2007 Budget Reduction (36.50)
FY 2006-07 Midyear Additions 7.00
FY 2007-08 New Positions 14.25
FY 2007-08 Ado ted Bud et 15.25 1,248.50
December 2007 Budget Reduction (111.00)
April 2008 Budget Reduction (33.00)
FY 2008 Midyear Additions 5.00
FY 2008-09 Ado ted Bud et 139.00) 1,109.50
September 2008 DSF Budget Reduction (10.50)
FY 2008-09 Midyear Additions 4.00
FY 2008-09 Amended Bud et 6.50 1,103.00
January 2009 Budget Reduction (100.50)
FY 2009-10 Bud et Develo ment Process 2.50
FY 2009-10 Ado ted Bud et (98.00) 1,005.00
Net Staffin Reductions (258.75 1,005.00
Fiscal Year 2009-10
A balanced fiscal year 2009-10 General Fund budget of $133 million was adopted by
Council June 9, 2009. Since that time, revenues have continued to decline as reported in
the First and Second Quarter Financial Reports in the current fiscal year. The Second
Quarter Financial Report presented to Council on March 2, 2010, projected a revenue
shortfall of $6.6 million in the current year. Through a combination of expenditure
savings and one-time revenues, the City anticipates ending the current fiscal year with no
impact to General Fund reserves. One-time revenues applied to offset the revenue
shortfall include $2.0 million in Proposition 42 funds (reimbursement of staff time related
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to street maintenance costs) and $1.4 million in loan repayments from the Redevelopment
Agency for outstanding debt owed to the General Fund.
Table 3 summarizes the revenue shortfalls projected in fiscal year 2009-10, along with
the offsetting one-time revenues and expenditure savings.
Table 3 - Fiscal Year2009-1O rd Quarter Projection
FY 2009-10 FY 2009-10
,
Description Amended Budget 2nd Quarter Net Change
Base Revenues
Property Tax 27,199,000 25,311,000 (1,888,000)
Sales Tax 25,546,000 23,245,000 (2,301,000)
Franchise Fees 10,033,000 8,447,000 (l,586,000)
Utility Users Tax 8,169,000 9,401,000 1,232,000
TOT 2,603,000 1,941,000 (662,000)
Motor Vehicle License Fees 18,287,000 17,717,000 (570,000)
Development Revenue 1,876,000 1,332,000 (544,000)
Licenses & Permits 652,000 604,000 (48,000)
Fines, Forfeitures, Penalties 2,380,000 2,252,000 (128,000)
Use of Money & Property 1,813,000 1,827,000 14,000
Other Local Taxes 2,031,000 2,031,000 -
Police Grants 1,514,000 1,739,000 225,000
Other Agency Revenues 1,265,000 1,252,000 ( 13,000)
Charges for Service 5,993,000 5,571,000 (422,000)
futerfund Reimbursements 9,972,000 10,487,000 515,000
Other Revenue - Miscellaneous 1,928,000 1,715,000 (213,000)
Transfers In from Other Funds 12,340,000 12,126,000 (214,000)
Base Revenue Subtotal 133,601,000 126,998,000 (6,603,000)
One Time Revenues
RDA Loan Repayment - 1,400,000 1,400,000
Prooosition 42 Funds - 2,000,000 2,000,000
One Time Revenues Subtotal - 3,400,000 3,400,000
Total Revenues 133,601,000 130,398,000 (3,203,000)
Total Expenditures 133,704,000 130,398,000 (3,306,000)
Net ImDact to Fund Balance (103,000) (0) 103,000
The continued decline in revenue will be discussed in further detail later in this report but
is should be noted that the City continues to experience significant declines in it's major
revenue sources. These reductions also impact the fiscal year 2010-11 budget.
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Fiscal Year 20 I 0-11 Proiected Baseline Budget
In conjunction with the quarterly financial review process, staff began preparation of the
baseline budget for fiscal year 20 I 0-11. After working with departments to update the
baseline budget, the Finance Department identified/a projected General Fund deficit of
$10.9 million for the coming fiscal year. The projected deficit is primarily the result of
significant decreases in major revenues sources coupled with moderate expenditure
increases. The following table summarizes the projected revenues and expenditures for
fiscal year 2009-10 and fiscal year 20 I 0-11.
Table 4 - Projected General Fund Deficit for Fiscal Year 2010-11
FY 2009-10 FY 2009-10 FY201O-11
Amended Budget 2nd Qtr Proj Base Budget
Revenue $ 133,601,000 $ 126,998,000 $ 122,104,000
One-time Revenue $ . - $ 3,400,000 $ 1,000,000
Total Revenue $ 133,601,000 $ 130,398,000 $ 123,104,000
Expenditures $ 133,704,000 $ 130,398,000 $ 133,009,000
One-time CIP $ - $ - $ 1,000,000
Total Expenditures $ 133,704,000 $ 130,398,000 $ 134,009,000
Proiected Deficit $ (103,000) $ - $ (10,905,000)
General Fund Revenues
As illustrated in Table 4, total General Fund revenues are projected to decrease by $10.5
million between the fiscal year 2009-10 amended budget and the fiscal year 10-11 base
budget. This shortfall is the result of an $11.5 million reduction in base revenues,
partially offset by the use of $1.0 million in one-time revenues (an increase in the RDA
loan repayment to fund two new capital improvement projects.)
The table below compares fiscal year 2009-10 budgeted revenues and the projected
revenues for fiscal year 20 I 0-11. As noted previously in this report, base revenues are
projected to come in $6.6 million dollars below budget in fiscal year 2009-10 and are
projected to drop another $4.9 million in fiscal year 2010-11.
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Table 5 - Comparison of Fiscal Year 2009-10 and Fiscal Year 2010-11
Projected Revenues
Description FY 2009-10 FY 2010-11 Net Change
2nd Quarter Projected
Property Tax 25,311,000 24,073,000 (1,238,000)
Sales Tax 23,245,000 23,634,000 389,000
Franchise Fees 8,447,000 7,652,000 (795,000)
Utility Users Tax 9,401,000 8,756,000 (645,000)
TOT 1,941,000 1,941,000 -
Motor Vehicle License Fees 17,717,000 16,934,000 (783,000)
Development Revenue 1,332,000 1,186,000 (146,000)
Licenses & Permits 604,000 677,000 73,000
Fines, Forfeitures, Penalties 2,252,000 2,060,000 (192,000)
Use of Money & Property 1,827,000 1,772,000 (55,000)
Other Local Taxes 2,031,000 2,031,000 -
Police Grants 1,739,000 1,238,000 (501,000)
Other Agency Revenues 1,252,000 1,157,000 (95,000)
Charges for Service 5,571,000 6,040,000 469,000
lnterfund Reimbursements 10,487,000 9,313,000 (1,174,000)
Other Revenue - Miscellaneous 1,715,000 1,326,000 (389,000)
Transfers In from Other Funds 12,126,000 12,315,000 189,000
Base Revenues Subtotal 126,998,000 122,105,000 (4,893,000)
One Time Revenues 3,400,000 1,000,000 (2,400,000)
Total Revenues 130,398,000 123,105,000 (7,293,000)
The City's long-term financial outlook continues to identify structural challenges to the
General Fund primarily due to the loss of revenues from the South Bay Power Plant,
continued decline in property values and increases in salaries and pension cost.
Although current economic reports indicate that the nation is finally showing signs of
recovery, revenue estimates applied in developing the fiscal year 2010-11 General Fund
Spending Plan are based on assumptions that property tax and vehicle license fees will
continue to drop into fiscal year 2010-11 due to continued adjustments downward in
property values. Conservative revenue projections are appropriate in light of economic
indicators pointing to a very slow recovery. Staff will continue to work with the County
Assessor's Office and the City's sales tax consultant to better understand fluctuations in
these major revenues in the future. A comparison of revenue trends through fiscal year
2010-11 is included as Table 6 below.
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Table 6 - Forecast of Major General Fund Revenues
% Change from Prior Year
R C t 5 yr Avg Actual Projected ForeC41st
evenue a cuory
~ FY 06-10 2008-09 2009-10 2010-11
Property Tax'
Sales Tax
ranchise Fees 2
MVLF'
tility Users Tax 2
TOT
7.8% -0.2% -13.5% -4.9%
0.1% -9.6% -9.2% 1.7%
-2.8% -2.9% -10% -9.4%
5.9% 0.5% -11% -4.4%
7.7% 6.4% 19.8% -6.9%
-2.5% -14.6% -15.7% 0%
Notes for fiscal year 2009-10 and fiscal year 2010-11:
I. Property Tax and Motor Vehicle License Fee change reflects drop in Assessed VaJues per County of San
Diego - Assessors Office.
2. Franchise Fees and uur reflect closure of South Bay Power Plant on July 1,2010.
Property TaX
Property tax revenues have continued to fall throughout this economic recession with
Chula Vista being one of the harder hit areas. The large number of foreclosures have
depressed housing values, and the significant drop in home resale prices has dramatically
reduced supplemental property tax revenues. Supplemental property taxes are calculated
based on the difference between the current value of a property and the resale value of the
property. Typically, property values increase as a property is resold. Due to the current
housing crisis, most home resale values have dropped, resulting in a large reduction in
supplemental property tax revenue.
Property tax revenues, projected at $25.3 million for fiscal year 2009-10, is the City's
single largest discretionary revenue source and accounts for 19% of the total revenue for
the General Fund. Based on projections provided by the County Assessors Office,
assessed values in Chula Vista increased by 14% in fiscal year 2007-08 and 2% in fiscal
year 2008-09. The most recent report from the County Assessor shows a decline of
10.4% in assessed values for fiscal year 2009-10. Based on recent analysis by the County
Assessors Office, preliminary estimates show that Chula Vista assessed values for fiscal
year 2010-11 may fall an additional 4% from the prior year. The forecast reflects the
continued decline in values.
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Chart 1- Historical Change in Assessed Value
City of Chula Vista and Countywide Comparison
25%
20%
15%
10%
5%
0%
-5% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
F
'.;
.'
.~_..._-_.-....._._._--
~
-10%
-15%
.Chuta Vista
DCounty Overall
Source: County of San Diego Assessors Office. The 2011 assessed value change is a preliminary estimate provided by
the County.
Sales Tax
Prior to fiscal year 2004-05, the City received revenue from a 1 % sales tax from all
taxable retail sales occurring within the City limits. Beginning in fiscal year 2004-05, the
State reduced the local allocation by 0.25% and applied these funds as security for the
State's Economic Recovery Bonds. the State committed to replacing the 0.25% sales tax
revenues dollar-for-dollar in local property taxes from the County Educational Revenue
Augfnentation Fund (ERAF). For forecasting and comparison purposes, sales tax
revenues are projected at the full 1 % rate.
Sales tax revenues are collected by the State at a rate of 8.75% for the San Diego County
region. The sales tax revenues are then allocated based on the following rates:
State
State Fiscal Recovery Fund (Economic Recovery Bonds)
Local Jurisdiction (City or County of place of sale/use)
Local Transportation Fund (County of place of sale/use)
Local San Diego County Transnet Funding
*Total Sales Tax Rate - Chula Vista
7.00%
0.25%
0.75%
0.25%
0.50%
8.75%
*Total sales tax rates will vary by City due to local sales tax initiatives. For example, National City's sales tax rate is
9.75% due to voter approved increase of 1% funding public services.
Sales tax revenue is highly sensitive to economic conditions, and reflects the factors that
drive taxable sales, including the levels of unemployment, consumer confidence, per-
capita income, and business investment. In addition, the proximity to the Mexican border
and the number of transactions related to cross border shopping also makes the City's
sales tax revenues particularly susceptible to volatility if a downturn in the Mexican
economy were to occur.
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Sales tax revenue is the City's second largest discretionary revenue source, accounting
for 18% of total revenue for the General Fund in fiscal year 2009-10. Due to the current
economic recession consumer spending has decreased significantly nationwide; a
decrease of9.2% in sales tax revenue is projected for fiscal year 2009-10. Overall, since
fiscal year 2005-06, the City has experienced an increase of 0.1 % in this revenue
category when the recent declines are taken into account. Sales tax projections will
continue to be conservative.
As noted on the chart below, sales tax on a per capita basis for the City is only $98
compared to the County average of$l17 and the State average of$118. This comparison
indicates that the City's residents spend a high percentage of their retail dollars
elsewhere, especially considering that a healthy share of the City's sales and use tax
revenues are generated by cross-border shoppers. It seems clear that the City must
continue to place a high priority on developing the retail business base by focusing on
projects such as the expansion of the auto park and the eastern urban center in order to
ensure the City's long-term fiscal health.
Chart 2 - Sales Tax Per Capital
$100
$50
$0
.__ ___ ___Count'LAveraqe_$j 17/State Averaae _$j 18_
$300
$250
$200
$150
Dell'v1ar Carlsbad National B Cajon Escondido La rv"esa San Diego Olula
$264 $205 Oty $195 $170 $148 $158 $131 Vista $98
. General Retail
. Construction
III Food Products
o Transportation
I!I Miscellaneous
. Business to Business
Franchise Fees
Franchise fee revenues are generated from public utility sources such as San Diego Gas
& Electric (2% on gas and 1.25% on electricity), trash collection franchises (9.05% fee),
and cable franchises (5% fee) conducting business within City limits. SDG&E is the
single largest generator of franchise fees and accounts for approximately 35% of the total
franchise revenues. SDG&E collects the franchise fee from Chula Vista customers and
through a municipal surcharge imposed on the South Bay Power Plant based on their
usage of natural gas. Due to the volatility of the price of natural gas and fluctuation in
usage, this component is difficult to project. Trash franchise fees and cable fees are more
predictable due to the fixed rates charged and the monthly and quarterly receipt of the
revenues respectively. Revenue growth is projected based on population and inflation
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factors with the exception of the South Bay Power Plant which is impacted by the cost of
natural gas and the actual usage of the plant itself.
The following illustrates the historic and projected revenue trends for the City's
Franchise Fee revenue. As shown in the chart, a dectease is projected in the current fiscal
year due to the drop in natural gas prices and the reduced usage of the power plant
overall. In addition, the forecast assumes that the South Bay Power Plant is dismantled
and is no longer generating franchise fee revenues beginning on July 1, 2010.
Chart 3 - Franchise Fee Revenues
$9.0
f/)
c
.S! $80
:i1 $7.0 ,
$6.0
$5.0
$4.0
$3.0
$2.0
$1.0
$-
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
I-+- Energy -+- Trash/Cable I
Motor Vehicle License Fees
The Vehicle License Fee (VLF) was initially established in 1948 and directed to local
government. The State originally assessed a 2% of value on car registrants on behalf of
local governments. In May 2004, in an attempt to assist with the State's fiscal crisis, the
State dropped the VLF fee from 2% to 0.65%. Except for the first three months of fiscal
year 2004-05, the State back-filled this fee reduction with other State funds.
Beginning in fiscal year 2004-05, the local government share of VLF has narrowed.
Cities continue to receive .65% portion of the fee directly from the State, but this amount
is now net of County realignment and administrative reductions. The State backfills the
gap created by the fee reduction from 2% to 0.65% with an additional allocation of local
property tax from County ERAF funds, referred to as the VLF swap. After 2006, the
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VLF swap was valued at the original 2005 amount, and adjusted by the jurisdiction's
annual change in assessed valuation.
As a result in this change by the State, 97% of the City's VLF revenues now fluctuate
along with assessed values. With the recent housihg market crash, the VLF revenues
dropped by 11 % from fiscal year 2008-09 to fiscal year 2009-10 along with property tax
revenues. As discussed previously, based on preliminary projections from the County
Assessor another drop in assessed values in fiscal year 2010-11 is anticipated and
reflected in the base budget.
Utility Users Tax
The City adopted its Utility Users Tax (UUT) in 1970. The City of Chula Vista imposes
a UUT on the use of telecom at the rate of 5% of gross receipts, which represents 63% of
the total UUT revenues received. The UUT on natural gas services is $0.00919 per therm
and $0.00250 per kilowatt on electricity services, which equates to approximately a 1%
tax. The UUT on natural gas and electricity services accounts for the remaining 37% of
UUT revenues.
Total UUT revenues received in fiscal year 2008-09 totaled $7.8 million, of which $2.5
million was from energy and $5.3 million was from telecommunications. Some large
telecommunications providers and taxpayers have taken the position that the UUT does
not apply to long distance, V oIP (voice over internet), and cellular phone charges.
The City's UUT ordinance (Chula Vista Municipal Code Chapter 3.44) is outdated as it
applies to telecommunications usage and needs to be amended to reflect recent changes
in Federal tax law and to modernize the definition of telecommunications so that it is
technology neutral. The City will continue to monitor legislation which may require
changes to the assumptions used in the forecast.
Transient Occupancy Tax (TOT)
The City of Chula Vista imposes a Transient Occupancy Tax (TOT) upon all hotel stays
within the City boundaries. The TOT tax rate in the City is 10%. The potential for
significant revenue growth is feasible provided quality hotels are built in the City.
Several potential new hotel developments are being proposed in the City primarily in the
Eastern Urban Center (Millenia project) and the Bayfront. Due to the uncertainty
regarding the tourism market and with the objective of maintaining a conservative
forecast, no additional TOT revenues are assumed related to these developments.
Based on the Quarterly Travel Forecast prepared for the San Diego Convention and
Visitors Bureau dated December 2009, "Average daily rates in San Diego fell more
sharply than in some other areas early in the downturn improving San Diego's
competitive position. The Average Daily Rate is expected to grow again next year as
occupancy improves." Due to the decline in rates in San Diego and low occupancy rates
local motellhotels have reduced their daily rates in order to stay competitive. Accounting
for the reduced rates (reductions ranging from 10% to 40%), the weak economy, less
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travel to/from Mexico and less overflow from hotels in downtown San Diego, the City's
TOT revenues are projected at approximately $1.9 million. These projected revenues are
consistent with the levels last experienced in fiscal year 2000. The chart below shows the
percentage change in TOT revenues compared to prior year.
,
20.0%
15.0%
10.0%
5.0%
0.0%
-5.0%
-10.0%
-15.0%
-20.0%
Chart 4 - TOT Revenues
Percent Chauge Year by Year
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
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General Fund Expenditures
The General Fund baseline budget for fiscal year 20 I a-II was projected at $134.0
million, a I % increase over the fiscal year 2009-10 Council Adopted Budget. During
fiscal year 2009-10, Council has approved amerraments to the budget that totaled
$738,000. These amendments were primarily for revenue-offset appropriations for
Nature Center expenses and additional fire overtime expenditures. The amended budget
is included in the table below but for comparison purposes the fiscal year 2010-11
projected budget is being compared to the fiscal year 2009-10 Adopted Budget. The
table below summarizes the budget changes by category.
Table 7 - Comparison of Fiscal Year 2009-10 Adopted
and Fiscal Year 2010-11 Expenditure Budget
FY 2009-10 FY 2009-10 FY 2010-11 \dopted v. Prop Percent
Category Adopted Budget Amended Budget Proposed Net Change Chauge
Personnel Services $ 103,075,000 $ 103,624,000 $ 103,161,000 $. 86,000 0%
Supplies and Services $ 14,828,000 $ 15,092,000 $ 15,003,000 $ 175,000 1%
Other Expenses $ 1,050,000 $ 1,100,000 $ 732,000 $ (318,000) -30%
Operating Capital $ 100,000 $ 133,000 $ 88,000 $ (12,000) -12%
Utilities $ 5,052,000 $ 5,067,000 $ 5,244,000 $ 192,000 4%
Debt Serviceffransfers Out $ 8,861,000 $ 8,689,000 $ 8,781,000 $ (80,000) -10/0
CIP Proiects $ - $ - $ 1,000,000 $ 1,000,000
Total Operating Budget $ 132,966;000 $ 133,704,000 $ 134,009,000 $ 1,043,000 1%
The net increase of $86,000 in the Personnel Services category reflects higher
expenditure budget for the following:
. Funding for all filled Council approved positions
. Higher flex/insurance costs
. Higher retirement expenses based on increases in the PERS rate
. MOU salary increases for POA and IAFF
. Increases to Fire overtime based on fiscal year 2009-10 projected costs
The increases in Personnel Services were partially offset by reductions in the following:
. Increased salary savings based on the continuation of the hiring freeze
. A net reduction of 4.75 vacant positions
. A reduction in salary and overtime to reflect the elimination of grant funded
positions; including the elimination of 0.5 FTE
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. A transfer of various expenditure budgets from Personnel Services to Supplies
and Services to more accurately reflect expenditures - this change primarily
reflects transferring the budget from Uniforms and Equipment to Wearing
,
Apparel
. The transition of Nature Center operations to an independent non-profit
organization
The Supplies and Services category reflects an increase of $175,000 primarily as a result
of an adjustment to attorney services costs and unemployment insurance based on
projected expenditures in fiscal year 2009-10. It is also important to note that due to
continued fiscal constraints the General Fund does not include funding for equipment
replacement. No new vehicles will be funded through the General Fund in the coming
fiscal year.
The Other Expenses category reflects a decrease of $318,000; the decrease primarily
reflects an adjustment to the reimbursement to other agencies budget. The Capital
Expenditures category reflects a decrease of $12,000; the remaining $88,000 budgeted in
this category is for computer replacement. The Utilities category incorporates estimated
utility rate increases for water, gas, and electric totaling $192,000.
The Transfers Out category reflects a decrease of $80,000. This reduction is primarily
the result of incorporating a mid year Council approved transfer of the fire equipment
lease payments to the Fire Equipment Lease Fund and a reduction in the transfer out for
the debt service for the California Energy Commission (CEC) loan. These reductions
were partially offset by an increase in the pension obligation bond debt service and an
increase in the transfer out to the Development Services Fund.
The baseline budget also includes $1.0 million in funding for two new ClP projects - PR
311 Orange Avenue Library Park Site and LBI44 South Chula Vista Library Roof. Both
of these projects are being funded through an increase in the loan repayment ITom the
RDA to the General Fund. The RDA funding is available through the Tax Allocation
Refunding Bonds and must be spent on eligible capital expenditures.
Balancing the Fiscal Year 2010-11 Baseline Budget
Upon identification of the anticipated budget shortfall of $10.9 million, staff began
identifying potential expenditure reductions and one-time revenues. The proposed General
Fund Spending Plan reflects the City Manager's recommended course of action for
addressing the projected budget gap in fiscal year 20 I 0-11.
In an effort to avoid additional service level impacts and employee layoffs, the application
of $9.6 million in one time revenues through loan repayments is recommended in the
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General Fund Spending Plan, leaving $1.3 million to be offset through expenditure
reductions and to a lesser degree the identification of new revenues. The application of one-
time revenues affords the City the opportunity to continue to monitor economic trends and
come forward in the future with additional adjustments, as necessary. There are signs that
an economic recovery is on the horizon, and additionill expenditure reductions in the future
may not be as great as currently projected.
The source of the $9.6 million in one-time revenues is a loan repayment from the
Redevelopment Agency. At a March 2, 2010 joint meeting, the City Council and the
Redevelopment Agency approved the purchase of the Lower Sweetwater Community
Park site from the Redevelopment Agency using Park Acquisition and Development
(PAD) funds. The resolution adopted that evening also authorized a $9.6 million intra-
fund loan within the PAD fund from the eastern PAD to the western PAD and the
application of the $9.6 million in proceeds from the property sale to the outstanding loan
balance owed to the City's General Fund by the Redevelopment Agency. The staffreport
and resolution are included as Attachment 4 of this report. Appropriations associated
with the site purchase and outstanding loan repayment will be included in the City
Manager's Proposed Budget for fiscal year 2010-11 that will be considered by the City
Council and Redevelopment Agency on June 8th.
The proposed General Fund Spending Plan reflects net cost reductions totaling $1.3 million,
which were allocated evenly to the departments. Each department was asked to reduce their
net cost by 1.4%. Some departments were able to identify additional expenditure reductions
or new revenues, which allowed some departments to make smaller cuts. The following
table summarizes the net cost reductions by department.
Table 8 - Net Cost Reductions by Department
Net Cost Percent
Department Revenue Expenditure Red uction Reduction
City Clerk $ - $ (100,000) $ (100,000) -9.8%
City Attorney $ - $ (27,000) $ (27,000) -1.4%
Administration $ - $ (20,000) $ (20,000) -1.5%
ITS $ - $ - $ - 0.0%
Human Resources $ - $ (52,000) $ (52,000) -1.4%
Finance $ 50,000 $ - $ (50,000) -2.5%
Non Departmental $ - $ 85,000 $ 85,000
Animal Care Facility $ - $ (20,000) $ (20,000) -1.6%
Planning & Building (Dev Svcs $ - $ (5,000) $ (5,000) -0.5%
Police $ 120,000 $ (417,000) $ (537,000) -1.4%
Fire $ 200,000 $ (100,000) $ (300,000) -1.4%
Public Works $ 94,000 $ (80,000) $ (174,000) -1.4%
Recreation $ - $ (42,000) $ (42,000) -1.4%
Library $ - $ (65,000) $ (65,000) -1.4%
Total Net Cost Reduction $ 464,000 $ (843,000) $ (1,307,000) -1.4%
Note: The $200,000 in revenue reflected in the Fire Department represents $100,000 revenue anticipated trom
18-15
APRIL 13, 2010, Item~
Page 16 of17
reimbursement for participation in strike teams and $100,000 fi-om proposed fire response fees. The
department has identified potential expenditure reductions that will be put in place should the new revenue
projections fan short.
It should be noted that as a result of the cuts already:made to the City's operating budget,
opportunities for expenditure savings without impacts to provision of public services are
very limited, and any additional cuts would likely result in significant service impacts.
The proposed fiscal year 2010-11 Spending Plan by department and expenditure category is
included as Attachment 1 of this report.
The projected expenditures for fiscal year 2010-11 reflect one-time salary savings of $3.0
million. This is the result of treezing 28 FTE in authorized staffing. Proposed authorized
staffing by department is included as Attachment 2. Authorized positions frozen in the
Spending Plan are detailed in Attachment 3.
Budget Process and Next Steps
Tonight's action is consideration of the City Manager's proposed General Fund Spending
Plan for fiscal year 2010-11. Consideration and/or approval of the Spending Plan is a
preliminary step being added to the City's regular budget adoption process this year.
Consideration of the Spending Plan in advance of the City Manager's regular budget
approval schedule and process creates an additional opportunity for the City Council to
provide input and direction regarding the General Fund budget for the coming fiscal year.
thiS' early direction and resolution of any General Fund budget concerns will enable staff to
move forward with the regular budget process with a clear understanding of the Council's
direction in budgeting the General Fund for fiscal year 2010-11.
Following tonight's public hearing and action staff will return to Council with the City
Manager's proposed budgets for all funds (including the Redevelopment Agency, Housing,
and Wastewater funds) and the Capital Improvement Budget on May 18th. The fmal public
hearing, as required by the Ci~ Charter, and adoption of the operating and capital budgets
for the City will be held June 8 .
The fiscal year 20 I 0-11 budget includes the use of one-time revenue in the form of a loan
repayment trom the RDA to the General Fund, which helped balance the General Fund. It is
important to note that preliminary five-year forecast projections indicate that the structural
imbalance in the General Fund will not be corrected in fiscal year 2011-12. As discussed
earlier in the report, the City Manager is recommending the use of one-time revenues
because it affords the City the opportunity to continue to monitor economic trends and refine
the projected deficit in the General Fund. The projected deficit in the General Fund for
fiscal year 2011-12 will likely require additional service and expenditure reductions and/or
the identification of new revenue sources.
18-16
APRIL 13,2010, Item 18
Page 17 of 17
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by Resolution A and has determined that it
is not site specific and consequently the 500 foot rule found in California Code of
Regulations section 18704.2(a)(l) is not applicable t6 this decision.
For the action contemplated in Resolution B, staff has reviewed the property holdings of
the City Council and has found a conflict exists, in that Council Member Ramirez has
property holdings within 500 feet of the boundaries of the property that is the subject of
this action.
CURRENT YEAR FISCAL IMPACT
There is no impact to the General Fund in the current fiscal year.
ONGOING FISCAL IMPACT
The spending plan for the General Fund totals $133.0 million and includes funding of
$1.0 million for capital improvement projects. The proposed spending plan reflects
projected revenues equal to anticipated expenditures resulting in no projected impact to
the General Fund reserves. The proposed fiscal year budget will be considered for
adoption and appropriation at the June 6, 2010 Council meeting.
ATTACHMENTS
1. City Manager's Proposed Fiscal Year 2010-11 General Fund Spending Plan
2. Proposed Authorized Staffing by Department
3. Frozen Positions by Department
4. March 2, 2010 Lower Sweetwater Community Park Site purchase staff report and
resolution
Prepared by: Maria Kachadoorian, Finance Director/Treasurer, Finance Department
18-17
Attachment 1
City Manager's Proposed General Fund Spending Plan for Fiscal Year 2010-11
Pel sonne! Supplies & Other I ransters Total
Department Sen ices Sen ices Exp C.lpital Out CI PI xp L'tilities Expenditures Rc\ clIne
01100 City Council 1,114,316 86,402 1,290 1,202,008
02000 Boards and Commissions 14,736 14,736
03000 City Clerk 728,243 206,921 628 935,792 51,600
04000 City Attorney 1,644,400 418,805 1,447 2,064,652 206,195
05000 Administration 1,628,194 125,966 1,550 1,755,710 403,869
06000 ITS 2,415,537 664,535 88,500 58,781 3,227,353 102,493
07000 Human Resources 1,967,036 1,819,310 2,826 3,789,172 254,669
08000 Finance 3,023,057 183,871 2,841 3,209,769 1,230,473
09000 Non-Departmental (1,346,584) 459,509 162,300 8,780,982 1,000,000 9,056,207 102,014,921
10000 General Services 1,633,085 578,779 2,500 50,520 2,264,884 992,199
~
00 12000 Planning & Building Services 3,325,224 389,056 130,730 12,634 3,857,644 2,643,349
I 14000 Police 40,938,942 2,657,396 164,567 470,472 44,231,377 7,206,026
~
00 15000 Fire 20,089,061 1,738,475 192,309 22,019,845 1,155,998
16000 Public Works Operations 18,681,902 3,563,698 180,100 3,517,381 25,943,081 14,706,330
17000 Recreation 3,598,835 581,924 90,982 529,255 " 1,895,827
4,800,996
18000 Library 3,575,094 816,538 400 402,143 4,794,175 303,450
General Fund Total 103,016,340 14,305,921 731,579 88,500 8,780,982 1,000,000 5,244,077 133,167,399 133,167,399
City Manager's General Fund Spending Plan for Fiscal Year 2010-11
Proposed Staffing by Department
Attachment 2
DepartmentlPosition FTE
City Council
Constituent Services Manager
Councilperson
Executive Secretary
Mayor
Office Specialist (Myr/@Will)
Sr Council Asst
City Council
.'
City Clerk
Administrative Secretary
City Clerk
Dep City Clerk I
Records Manager
Sr Deputy City Clerk
Sr Office Specialist
Sr Records Specialist
City Clerk
City Attorney
Asst.City Attorney
City Attorney
Deputy City Attorney II
Deputy City Attorney III
Legal Assistant
Sr Asst City Attorney
Sr Legal Assistant
City Attorney
Administration
Admin. Technician
Asst City Manager! Admin
City Manager
Communications Coordinator
Director of Conserv & Envir Serv
Environmental Resource Manager
Environmental Resource Spec
Executive Secretary
Sr Graphic Designer
Sr Secretary
Administration
18-19
1.00
4.00
1.00
1.00
1.00
5.00
13.00
1.00
1.00
1.00
1.00
1.00
0.50
1.00
6.50
1.00
1.00
2.00
2.00
2.00
1.00
1.00
10.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
10.00
City Manager's General Fund Spending Plan for Fiscal Year 2010-11
Proposed Staffing by Department
DcpartmentlPosition FTE
Information Technology Services
Director of Information Technology Services
GIS Manager
GIS Specialist
Info Tech Support Manager
Info Tech Support Specialist
Ops & Telecom Mgr
Sr Application Support Spec
Sr Info Tech Support Spec
Sr Programmer Analyst
Telecommunications Specialist
Webmaster
Information Technology Services
Human Resources
Benefits Manager
Benefits Technician
Director of Human Resources
HR Analyst
HR Technician
Human Resources Ops Manager
Risk Manager
Sr Fiscal Office Specialist
Sr HR Analyst
Sr HR Technician
Sr Risk Management Specialist
Human Resources
Finance
Accounting Assistant
Accounting Technician
Administrative Services Manager
Assoc Accountant
Asst Director of Finance
Budget & Analysis Manager
Business License Rep
Director of Finance
Fiscal & Management Analyst
Fiscal Operations Manager
Procurement Specialist
Sr Accountant
18-20
1.00
1.00
3.00
1.00
5.00
1.00
1.00
2.00
2.00
1.00
1.00
19.00
1.00
1.00
1.00
3.00
1.75
1.00
1.00
1.00
2.00
1.00
3.00
16.75
8.00
4.00
1.00
2.00
1.00
1.00
1.00
1.00
3.00
1.00
1.00
1.00
City Manager's General Fund Spending Plan for Fiscal Year 2010-11
Proposed Staffing by Department
Department/Position FIE
Finance (continued)
Sr Procurement Specialist
Treasury Manager
Finance
"
Animal Care Facility
Animal Adoption Counselor
Animal Care Assistant
Animal Care Facility Mgr
Animal Control Officer
Office Specialist
Registered Veterinary Tech
Sr Animal Care Assistant
Sr Office Specialist
Veterinary Assistant
Animal Care Facility
Planning and Bnilding
Administrative Technician
Advanced Planning Manager
Associate Planner
Code Enforcement Officer II
Code Enforcement Manager
Dep City MgrfDir of Dev Svcs
Development Automation Spec
Economic Development Officer
Planning Technician
Principal Economic Dev Spec
Principal Planner
Sr Administrative Secretary
Sr Code Enforcement Officer
Sr Office Specialist
Sr Planning Technician
Sr Project Coordinator
Sr Secretary
Planning and Building
Police
Administrative Services Manager
Chief of Police
Civilian Background Investigator
18-21
1.00
1.00
27.00
1.50
5.00
1.00
3.00
3.00
2.00
2.00
0.75
1.00
19.25
1.00
1.00
2.00
7.00
1.00
1.00
1.00
1.00
2.00
1.00
2.00
1.00
2.00
1.00
1.00
1.00
1.00
27.00
1.00
1.00
1.00
City Manager's General Fund Spending Plan for Fiscal Year 2010-11
Proposed Staffing by Department
DepartmentlPosition FTE
Police (continued)
Community Service Officer
Crime Laboratory Manager
Detention Facility Manager
Evidence Control Asst
Facility & Supply Specialist
Forensics Specialist
Latent Print Examiner
Parking Enforcement Officer
Peace Officer
Police Agent
Police Captain
Police Comm Systems Manager
Police Data Specialist
Police Dispatcher
Police Dispatcher Supervisor
Police Lieutenant
Police Records Specialist
Police Records Transcriptionist
Police Sergeant
Police Services Officer
Police Support Services Mgr
Police Technology Specialist
Principal Management Analyst
Public Safety Analyst
Range Master
Secretary
Sr Administrative Secretary
Sr Fiscal Office Specialist
Sr Office Specialist
Sr Police Data Specialist
Sr Public Safety Analyst
Training Programs Spec
Police
/
Fire
Administrative Secretary'
Deputy Fire Chief
Facility & Supply Specialist
Fire Battalion Chief (112 Hr)
Fire Captain (112 Hr)
18-22
3.00
1.00
1.00
2.00
0.50
2.00
2.00
2.00
149.00
49.00
3.00
1.00
3.00
20.00
6.00
9.00
5.50
2.00
25.00
12.00
1.00
1.00
1.00
3.00
0.50
4.00
1.00
2.00
4.00
1.00
1.00
1.00
321.50
1.00
3.00
1.00
6.00
32.00
City Manager's General Fund Spending Plan for Fiscal Year 2010-11
Proposed Staffing by Department
DepartmentfPosition FTE
Fire (continued)
Fire Captain (80 Hr)
Fire Chief
Fire Division Chief
Fire Eng (112 Hr)
Fire Eng (80 Hr)
Fire Inspector II
Fire Prevention Engineer
Firefighter (112 Hr)
Firefighter (80 Hr)
Office Specialist
Public Safety Analyst
Secretary
Sr Fire Inspector
Sr Office Specialist
Fire
~
Public Works
Admin Analyst II
Administrative Secretary
Administrative Services Manager
Assistant Surveyor II
Assoc Engineer
Asst Director of Public Works
Asst Director of Engineering
Bldg Project Manager
Carpenter
Construction & Repair Mgr
Custodial & Facilities Manager
Custodial Supervisor
Custodian
Director of Public Works
ElecfEquip Installer
Electrician
Electronics Tech Supervisor
Electronics Technician
Engineering Tech I
Engineering Tech II
Environmental Hlth Spec
Equipment Operator
Fiscal Office Specialist
18-23
2.00
1.00
1.00
33.00
2.00
5.00
1.00
41.00
1.00
1.00
1.00
1.00
1.00
1.00
135.00
2.00
1.00
1.00
1.00
10.00
1.00
1.00
1.00
1.00
1.00
1.00
4.00
13.50
1.00
1.00
2.00
1.00
2.00
1.00
2.00
2.00
2.00
2.00
City Manager's General Fund Spending Plan for Fiscal Year 2010-11
Proposed Staffing by Department
DepartmentlPosition FTE
Public Works (continued)
Gardener II
HV AC Technician
Land Surveyor
Lead Custodian
Locksmith
Maintenance Worker II
Open Space Inspector
Open Space Manager
Parks Manager
Parks Supervisor
Plumber
Principal Civil Engineer
Principal Management Analyst
Pub Works Specialist
Public Works Insp II
Public Works Manager
Public Works Supervisor
Pump Maint Technician
Pump Maintenance Supervisor
Real Property Manager
Secretary
Signal Systems Engineer II
Signing & Striping Supervisor
Sr Administrative Secretary
Sr Civil Engineer
Sr Engineering Technician
Sr Fiscal Office Specialist
Sr Gardener
Sr HV AC Technician
Sr Landscape Inspector
Sr Maintenance Worker
Sr Office Specialist
Sr Open Space Inspector
Sr Park Ranger
Sr Pub Works Specialist .
Sr Public Works Insp
Sr Secretary
Sr Tree Trimmer
Stormwtr Complnce Insp II
Survey Technician II
--
18-24
23.00
2.00
1.00
7.00
2.00
13.00
5.00
1.00
1.00
5.00
2.00
3.00
1.00
3.00
6.00
1.00
3.00
4.00
1.00
1.00
1.00
1.00
1.00
1.00
4.00
2.00
2.00
9.00
1.00
1.00
11.00
1.00
1.00
1.00
1.00
2.00
1.00
2.00
1.00
1.00
City Manager's General Fnnd Spending Plan for Fiscal Year 2010-11
Proposed Staffing by Department
Department/Position FTE
Public Works (continued)
Traffic Devices Tech
Traffic Devices Tech Supv
Tree Trimmer
Tree Trimmer Supervisor
Wastewater Collections Manager
Public Works
.'
Recreation
Administrative Secretary
Aquatic Supv I
Aquatic Supv II
Aquatic Supv III
Director of Recreation
Fiscal & Management Analyst
Principal Recreation Manager
Recreation Supervisor I
Recreation Supervisor II
Recreation Supervisor III
Sr Fiscal Office Specialist
Recreation
Library
Administrative Secretary
Delivery Driver
Director of Library
Family & Youth Literacy Coord
Librarian I
Librarian II
Librarian III
Library Admin Coordinator
Library Assistant
Library Associate
Library Digital Services Mgr
Library Technician
Principal Librarian
Secretary
Sr Librarian
Library
Total General Fund
18-25
3.00
1.00
2.00
1.00
1.00
192.50
1.00
1.00
2.00
1.00
1.00
1.00
2.00
6.00
4.00
6.00
1.00
26.00
1.00
0.50
1.00
1.00
1.50
5.50
5.00
1.00
0.50
15.75
1.00
2.00
1.00
1.00
2.00
39.75
863.25
Attachment 3
City Manager's Proposed General Fnnd Spending Plan for Fiscal Year 2010-11
Frozen Positions by Department (FTE)
Department Position FTF
City Attorney
Finance
Fire
Fire
Library
Library
Library
Library
Police
Police
Police
Police
Police
Police
Police
Poblic Works
Public Works
Public Works
Public Works
Public \v orks
Public Works
Senior City Attorney (July to December)
Administrative Services Manager
Fire Division Chief
Fire Engineer (Training)
Librarian I
Librarian II
Library Admin Coordinator
Library Associate
Detention Facility Manager
Peace Officer
Police Captain
Police Communications Systems Manager
Police Dispatcher
Range Master
Senior Fiscal Office Specialist
Carpenter
Custodial & Facilities Manager
Parks Supervisor
Plumber
Senior Maintenance Worker
Senior Tree Trimmer
Total Frozen Positions
0.5
1.0
1.0
1.0
1.5
1.0
1.0
0.5
1.0
7.0
1.0
1.0
2.0
0.5
1.0
1.0
1.0
1.0
1.0
2.0
1.0
28.0
18-26
Attachment 4
CITY COUNCIL &
REDEVELOPMENT AGENCY
AGENDA STATEMENT
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
~\ff:. an' OF
~~ CHUlA VISTA
MARCH 2, 2010, Item B
JOINT RESOLUTION OF THE CHULA VISTA
REDEVELOPMENT AGENCY AND CITY COUNCIL
AUTHORIZING THE EXECUTIVE DIRECTOR TO SELL
FROM THE REDEVELOPMENT AGENCY AND THE CITY
MANAGER TO PURCHASE FOR THE CITY OF CHULA
VISTA THE 14.41 ACRE SITE (APN 563-350-1300 AND 566-
131-0100) LOCATED IN THE LOWER SWEETWATER
V ALLEY FOR THE APPRAISED VALUE OF
APPROXIMATELY $9.6 MILLION AND APPROVING AN
INTERFUND LOAN FROM THE EASTERN PARKLAND
ACQUISITION AND DEVELOPMENT FEE FUND TO THE
WESTERN PARKLAND ACQUISITION AND
DEVELOPMENT FEE FUND TO ACQUIRE THE SITE AND
AUTHORIZING THE EXECUTIVE DIRECTOR/CITY
MANAGER OR HIS DESIGNEE TO EXECUTE ALL
NECESSARY DOCUMENTS TO CONVEY THE SITE TO
THE CITY AND AUTHORIZING THAT THE PROCEEDS OF
THE SALE BE APPLIED TO THE OUTSTANDING LOAN
BALANCE OWED TO THE CITY'S GENERAL FUND FOR
FISCAL YEAR2010/11.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AGREEING TO REDUCE THE
REDEVELOPMENT AGENCY'S OUTSTANDING LOAN
BALANCE OWED TO THE GENERAL FUND BY $4.6
MILLION FOR PREVIOUS LOANS OWED TO THE
AGENCY BY THE CHULA VISTA NATURE CENTER.
DEPUTY ~MANAGER / DEVELOPMENT SERVICES
DIRECTORfP~'~~
CITY MANAGER
4/5THS VOTE: YES D NO 0
SUMMARY
The Chula Vista Redevelopment Agency previously owed the City of ChuIa Vista approximately
$31 million from loans made to the Agency for Redevelopment Project Area start up costs and
payments made on behalf of the Agency towards Certificates of Participation (COPs) issued to
build the parking facility at the Chula Vista Shopping Center in 1987. Over the past two years,
the Agency has made significant efforts to reduce the debt owed to the City, anticipating that by
~
18-27
MARCH 2, 2010, Item~
Page 2
the end of fiscal year 2009/10. the Redevelopment Agency will have repaid, over the last two
years, approximately $9.3 million, reducing the remaining debt to the City to approximately
$21.7 million. To continue to reduce the debt obligations of the Agency, staff recommends that
the Agency sell an Agency-owned 14.41 acre site located in the lower Sweetwater Valley to the
City and that the Agency and be credited for a previous-outstanding loan, owed to the Agency,
that was forgiven by the City in 2002.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed action for compliance with
the California Environmental Quality Act (CEQA) and has determined that the project qualifies
for a Class 25 (f) (Acquisition, sale, or other transfer to preserve open space or lands for park
purposes) categorical exemption pursuant to Section 15325 [Transfer of Ownership of Interest in
Land to Preserve Existing Natural Conditions] of the State CEQA Guidelines. Thus, no further
environmental review is required.
RECOMMENDATION
That the Chula Vista City Council and Redevelopment Agency approves:
A. Joint Resolution of the Chula Vista Redevelopment Agency and City Council authorizing
the Executive Director to sell the 14.41 acre site (APN 563-350-1300 and 566-131-0100)
located in the lower Sweetwater Valley to the City of Chula Vista for the appraised value
of approximately $9.6 million and authorizing the Executive Director/City Manager or
his designee to execute all necessary documents to convey the site to the City and
authorizing that the proceeds of the sale will be applied to the outstanding loan balance
owed to the City's General Fund for Fiscal Year 2010/11.
B. Resolution of the City Council of the City of Chula Vista agreeing to reduce the
outstanding loan balance owed to the General Fund by $4.6 million for previous loans
owed to the Agency by the Chula Vista Nature Center.
BOARDS/COMMISSION RECOMMENDA nON
The Chula Vista Redevelopment Corporation voted 6-0-0-1 at their February 25, 2010 Board
meeting, unanimously supporting resolution A and 5-0-1-1 in support of resolution B.
DISCUSSION
Loan Repayment Efforts bv the Agencv
At the close of fiscal year 2007/08 the Redevelopment Agency had an outstanding loan balance
owed to the City of Chula Vista of approximately $31 million. Approximately $11 million of the
outstanding loan balance was from loans made to the Agency for new project area start up costs
and interest accrued over the past thirty years. The remaining $20 million has accrued as a result
of the City making annual debt service payments on behalf of the Agency toward Certificates of
Participation (COPs) that were issued to build a parking structure for the expansion of the Chula
Vista Shopping Center in 1987. During the 1992 to 2007 period, the Agency was unable to
cover all of its outstanding debt obligations and continued borrowing a million dollars each year
from the City. Fiscal year 2007/08 was the first time in over fifteen years that the Agency was
able to meet all of its annual debt service obligations.
~
18-28
MARCH 2, 2010, ItemL
Page 3
During fiscal year 2008/09, the Agency was able to repay the City $3.7 million from a 2008 Tax
Allocation Bond issuance, $900,000 from unanticipated additional tax increment revenues and
approximately $500,000 in budgetary savings. The total loan repayment for fiscal year 2008/09
was approximately $5.1 million. By the close of fiscal ys:ar 2008/09 the Redevelopment Agency
had an outstanding loan balance owed to the City's General Fund of approximately $26 million.
During the current fiscal year 2009/10 the Agency will repay the General Fund $1.4 million in
bond proceeds for project expenditures and $2.8 million in projected tax increment revenues.
The total anticipated loan repayment for fiscal year 2009/10 is projected to be $4.2 million. By
the end of fiscal year 2009/10 the Agency, over the last two fiscal years, will have reduced the
outstanding loan balance owed to the City by approximately $9.3 million, resulting in a
remaining balance of $21. 7 million.
Sale of Agencv Owned Land
To continue the effort of reducing the remaining debt obligations owed to the City, staff
recommends the Agency sell two Agency owned parcels (APN 563-350-1300 and 566-131-
0100) to the City. These parcels have little opportunity for redevelopment and are better suited
for long term public use as a park. The site is 14.41 acres located in the lower Sweetwater
Valley. The lower Sweetwater Valley site is a vacant site and has a General Plan designation of
Open Space Recreation. The site is well suited, and supported by the General Plan and the
community, to be a future park and not a redevelopment project. The sale of this land to the City
based on an independent appraisal is estimated to be worth $9.6 million. The sale of this site
would leave a remaining outstanding loan balance to the City of approximately $12.1 million.
Parkland in Western Chula Vista
The 2005 General Plan Update set the City's standard for parks and recreation at 3 acres of
public parkland per 1,000 residents. New development is required to provide this additional
parkland via the Parkland Acquisition and Development (PAD) in-lieu fee program. The
majority of residential development in the eastern portion of the City is greenfield development.
As a result, most developers in the east opt to dedicate on-site land to the City for park uses
instead of paying the in-lieu fee. In contrast, the majority of residential development in western
Chula Vista is infill. Dedication of on-site park acreage is not practical for these projects.
Instead, the City collects fees from these projects to apply in the acquisition of parkland to serve
the new development. The same infill character which makes dedication of on-site parklands
impractical creates challenges for the City in the acquisition of park sites.
In the western portion of the City, the park standard is not currently being met. This is the result
of a number of factors including the annexation of the Montgomery Area without parklands
sufficient to maintain the park ratio and the use of PAD fees for the reconstruction/rehabilitation
of existing parks. Acquisition and development of the subject site into a park, serving western
Chula Vista residents, is a large step toward meeting the City's goal of providing 3 acres of
parkland per 1,000 residents citywide.
The City has worked to identify potential suitable park sites in western Chula Vista, generally
identified in the 2005 General Plan Update and the 2007 Draft Park and Recreation Master Plan.
The property proposed for sale by the Agency is one of the places identified as being a suitable
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18-29
MARCH 2, 2010, Item-1L
Page 4
park site. Upon transfer of the property to the City, the Development Services Department would
return at a later COlmcil meeting for the Council to consider rezoning the property ITom single
family residential (Rl) and Imclassified (UNZ) to Publici quasi public zoning (PQ) designating
the site for park purposes.
,
The proposed park site to be acquired from the Agency will serve and be funded by future
western Chula Vista residents, including residents of the Urban Core Specific Planning Area. As
a result, the PAD fund has not yet collected sufficient funds from development in western Chula
Vista to finance this purchase. It will therefore be necessary to internally borrow the funds within
the PAD fund, using funds that have been collected for the purpose of constructing a community
park in eastern Chula Vista. The internal loan within the PAD fund will be repaid as funds
become available, either as a result of credit acquisitions by the Agency or the payment of PAD
fees by developers in western Chula Vista. The Agency will ensure that PAD funds are repaid to
fully fund the development of the park for which they were originally collected.
Agency Investment Credits
At the May 2009 CVRC meeting Director Desrochers requested that staff return with a report on
what projects, funded by the Agency, could be considered by the City Council as a credit toward
the outstanding loan. In reviewing the list of Agency funded projects, the CYRC considered the
list and yoted 5-0, with one abstention and one absence, to request the City Council reduce the
Agency debt owed to the City equal to the Agency investment made as a loan toward the Chula
Vista Nature Center that was forgiven in 2002 when the Nature Center was transferred to the
City. This debt forgiveness will coincide with the transition of the Nature Center to a non-profit
organization.
The Redevelopment Agency funded $1.6 million of the $2.5 million in construction cost for the
Nature Center, provided monies for exhibits, start up costs and annual operations of the Center.
By December 2001, the Nature Center had an outstanding obligation to the Agency, including
principal and interest, of approximately $4.6 million. However, in 2002, the Nature Center,
owned and operated by the Bayfront Conservancy Trust, was no longer able to adequately fund
its operation and it was decided that the ownership of the Nature Center would be transferred to
the City. As part of this transfer the City Council and the Agency each approved resolutions that
eliminated the $4.6 million owed to the Agency without consideration on reducing the debt the
Agency owed to the City.
DECISION MAKER CONFLICT
Staff has reviewed the property holdings of the Chula Vista City Council and Redevelopment
Agency members and has found no property holdings within 500 feet of the boundaries of the
properties that are subject to this action.
CURRENT YEAR FISCAL IMPACT
There is no current fiscal year impact, all transfers and loan will be part of the fiscal year 2010/11
budget.
ONGOING FISCAL IMPACT
~
18-30
MARCH 2, 2010, !tem~
Page 5
Resolution A
Resolution A, if approved by the Redevelopment Agency and the City Council, would generate
approximately $9.6 million in revenue to the Agency that could be utilized to repay the General
Fund and reduce the outstanding debt owed to the City. This transaction would result in no net
impact to the Agency's fund balance, but would ~uce outstanding debt obligations to
approximately $12.1 million.
The purchase of the property from the Agency would be funded by the City using PAD fee
monies. The PAD fee program is the City's primary fInancing mechanism for parkland facilities.
All new residential development (including hotels/motels) is subject to the PAD fee, which the
City collects and uses to construct new parkland facilities or rehabilitate existing facilities.
The following cash flow reflects the impacts of the proposed property sale on the available fund
balances of the Agency and PAD funds for fiscal years 2009/10 through 2014/15. The Agency's
fund balance would be available to purchase PAD fee credits to incentivize redevelopment
activity in western Chula Vista. Actual property sale amount and credit acquisition schedule will
be subject to Council approval.
FY 2009.10 FY 2010.11 FY 2011.11 FY 2011.13 FY 2013.14 FY 2Ul4-15
REDEVELOPMENT AGENCY FUNDS
Est. AvaiJable Fund Balance 1,042,000 41,000 943,000 1,590,000 2,402,000 4,303,000
Estimated Revenues
Tax Increment 14,755,000 " IS,020,000 15,320,000 IS,627,000 IS,939,000 16,258,000
lnterest Earnings 25,000 25,000 25,000 25,000 25,000 25,000
Sale ofPropeIty - 9,600,000 - . . -
Tota] Estimated Revenues 14,780,000 24,645000 15.345.000 15,652,000 15,964,000 16.283,000
Estimated Expenditures
LowiMod and passthroughs (5,S65,000) (5,760,000) (5,8S2,OOO) (5,946,000) (6,042,000) (6,144,000)
Debt Pmot. City (Park $)1 . (9,600,000) . . - .
Debt Pmnt. City (Non Park)' (1,400,000) (1,500,000) (I,SOO,OOO) (1,500,000) (I,500,000) (I,SOO,OOO)
Debt Pmot . Other (6,S24,000) (4,2&5,OOO) (4,79&,000) (S,796,000) (4,963,000) (5,30&,000)
Agency Personnel Costs (708,000) (70&,000) (70&,000) (708,000) (708,000) (708,000)
Proiect EJrnenditures (I,S84,000) (1,890,000) ((,&40,000) (890,000) (8S0,000) (8S0,000)
Total Estimated Exoendltures (15,781 000\ (23,743,00ii\"f14698,000\ (14,840000) (14063,000\ 114,510,0001
Est. Available Fund Balance 41,000 943,000 1,590,000 2,402,000 4,303,000 6,076,000
PAD FUND
Est. Available Fund Balance 35,500,000 29,410,000 20,750,000 ZI,410,OOO ZZ,09O,OOO Z2,790,000
Estimated Revenues
Interest Earnings 910,000 940,000 660,000 680,000 700,000 730,000
Total Estimated Revenues "" 910,000 940,000 660,000 680,000 700,000 730,000
Estimated Expenditures
Purchase of Property - (9,600,000) - . - -
Park Proj ect Exoenditures (7,000,000) - - . . .
~
1 8-31
MARCH 2, 2010, Item~
p e 6
Est Available Fund Balance
29410,000 20,750,000 21,410,000 22,090,000 22,790 000 23,520,000
,
1: The $9.6 million debt repiiyment from the Agency to the City is for an existing, debt obligation of the ~ency_ This lump-sum payment
shortens the repayment period for the Agency and makes one4ime funds available to the City to balance the FY 2010.11 operating
budget.
2; Annual debt payment amounts are shown for cash flow forecastingpurpos~ only. The acrual payment schedule will be discussed in
conjunction with the regular budget process, including potential use of funds for project: expenditures.
Total Debt Reduction
Implementation of both recommendations would reduce the outstanding loan balance from the
City to the Agency to approximately $7.5 million, as detailed below. For forecasting purposes,
staff anticipates the repayment of the $7.5 million via annual payments of $1.5 million each over
a five year period. Loan repayments from the Agency to the General Fund over the next five
years will be critical to avoid additional staffing cuts and service level impacts. Repayment of
the debt will be discussed in conjunction with the regular annual budget process.
A:\lOlNT
DESCRIPTION (MILLIONS)
Outstanding debt to City (Jnne 30, 2008) 531.0
Less payments FY 2009-2010
FY 2009 repayments (actual) (5.1)
FY 2010 renavrnents (bude:et) 14.2)
Subtotal 19.3)
Updated outstanding debt to City 21.7
Less recommended actions
Sale of Property (9.6)
Forgiveness of Nature Center Loan 14.6)
Subtotal 114.2)
Updated outstanding debt to City 7.5
The reduction of Agency debt to the City would allow greater resources to be available for
reinvestment in the redevelopment project areas.
Resolution B
Resolution B, if approved by the City Council, would reduce the debt owed to the City by the
Agency by approximately $4.6 million. This reduction in debt owed to the City would reduce the
future repayments from the Agency to the City, forgoing potential future General Fund revenues.
Prepared by: Eric C Crockett, Redevelopment Manager. Development Services Department
~
18-32
COUNCIL RESOLUTION NO.
AGENCY RESOLUTION NO.
JOINT RESOLUTION OF THE CHULA VISTA
REDEVELOPMENT AGENCY AND CITY COUNCIL
AUTHORIZING THE EXECUTIVE Q1RECTOR TO SELL
FROM THE REDEVELOPMENT AGENCY AND THE CITY
MANAGER TO PURCHASE FOR THE CITY OF CHULA
VISTA THE 14.41 ACRE SITE (APN 563-350-1300 AND 566-
131-0100) LOCATED IN THE LOWER SWEETWATER
V ALLEY FOR THE APPRAISED VALUE OF
APPROXJMATEL Y $9.6 MILLION AND APPROVING AN
INTERFUND LOAN FROM THE EASTERN PARKLAND
ACQUISITION AND DEVELOPMENT FEE FUND TO THE
WESTERN PARKLAND ACQUISITION AND
DEVELOPMENT FEE FUND TO ACQUIRE THE SITE AND
AUTHORIZING THE EXECUTIVE DIRECTOR/CITY
MANAGER OR HIS DESIGNEE TO EXECUTE ALL
NECESSARY DOCUMENTS TO CONVEY THE SITE TO THE
CITY AND AUTHORIZING THAT THE PROCEEDS OF THE
SALE BE APPLIED TO THE OUTSTANDING LOAN
BALANCE OWED TO THE CITY'S GENERAL FUND FOR
FISCAL YEAR 2010111
WHEREAS, the Redevelopment Agency has a $26 million outstanding loan balance .
owed to .the City of Chu1a Vista; and
WHEREAS, the Redevelopment Agency over the past two fiscal years has diligently
pursued efforts to reduce the outstanding loan balance; and
WHEREAS, the Redevelopment Age~cy anticipates that by the end of fiscal year
2009/10 it will have reduced the outstanding debt owed to the City to approximately $21.7
million; and
WHEREAS, the Redevelopment Agency owns a 14.41 acre site located in the lower
Sweetwater Valley (APN 563-350-1300 and 566-131-0100); and
WHEREAS, the subject 14.41 acre site is designated by the City's General Plan as Open
Space Recreation; and
and
WHEREAS, the community supports the subject 14.41 acre site as a future public park;
WHEREAS, the sale of the subject 14.41 acre site to the City for a future park could
generate approximately $9.6 million dollars in Agency proceeds that could further reduce the
debt owed to the City; and
~
18-33
WHEREAS, the Chula Vista Redevelopment Corporation recommended at their January
14, 20 I 0 Board meeting that the Redevelopment Agency sell the subject 14.41 acre site to the
City of Chula Vista for use as a future public park for an amount equal to the current park
acquisition fee collected by the City on development projects in Western Chula Vista; and
WHEREAS, the City will use Parkland Acquisition and Development (PAD) funds to
purchase the subject 14.41 acre site from the Redevelopment Agency; and
WHEREAS, the City's Western PAD fund has insufficient funds to purchase the subject
14.41 acre site from the Agency; and
WHEREAS, the City's Eastern PAD fund has sufficient funds to purchase the subject
14.41 acre site; and .
WHEREAS, funds from the Eastern PAD fund, in the amount of approximately $9.6
million, will be loaned to the Western PAD fund to fund the acquisition of the subject 14.41 acre
site; and
WHEREAS, if there are insufficient funds in the Eastern PAD fund to construct the park
for which they were collected the Redevelopment Agency agrees to purchase credits or loan, up
to a maximum amount of$9.6, to the City's Eastern PAD fun.d to construct the park; and
WHEREAS, The Environmental Review Coordinator has reviewed the proposed action.
for compliance with the California Environmental Quality Act (CEQA) and has determined that
the project qualifies for a Class 25 (t) (Acquisition, sale, or other transfer to preserve open space
or lands for park purposes) categorical exemption pursuant to Section 15325 [Transfer of
Owners!rip of Interest in Land to Preserve Existing Natural Conditions] of the State CEQA
Guidelines. Thus, no further environmental review is required.
NOW, THEREFORE, BE IT RESOLVED that the Chula Vista RedevelopmeIlt Agency
hereby authorizes the Executive Director to sell the 14.41 acre site (APN 563-350-1300 and 566-
131-0100) located ill the lower Sweetwater Valley to the City ofChula Vista for an amount equal
to the current park acquisition fee collected by the City on development projects in Western
Chula Vista; and
BE IT FURTHER RESOLVED that the Chula Vista Redevelopment Agency and City
Council authorize the Executive Director/City Manager or his designee to execute all necessary
documents to convey the subject 14.41 acre site to the City ofChula Vista; and
BE IT FURTHER RESOLVED that the City Council approves an interfund loan from the
Eastern Parkland Acquisition and Development fund to the Western Parkland Acquisition and
Development fund to acquire the site; and
BE IT FURTHER RESOLVED that the Chula Vista Redevelopment Agency hereby
authorizes the Executive Director to apply the proceeds of the sale of the subject 14.4l.acre site
toward the Redevelopment Agency's outstanding loan balance owed to the City of Chula Vista's
General Fund for fiscal year 2010111.
~
18-34
Presented by
Approved as to form by
Gary Halbert, AICP, PE
Deputy City ManagerlDirector of
Development Services
~
18-35
COUNCIL RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AGREEING TO REDUCE THE
REDEVELOPMENT AGENCY'S OUTSTANDING LOAN
BALANCE OWED TO THE GENEMI, FUND BY $4.6
MILLION FOR PREVIOUS LOANS OWED TO THE AGENCY
BY THE CHULA VISTA NATURE CENTER
WHEREAS, the Redevelopment Agency has a $26 million outstanding loan balance
owed to the City of Chula Vista; and
WHEREAS, the Redevelopment Agency over the past two fiscal years has diligently
pursued efforts to reduce the outstanding loan balance; and
WHEREAS, the Redevelopment Agency anticipates that by the end of fiscal year
2009/10 to have reduced the outstanding debt owed to the City of Chula Vista to approximately
$21.7 million; and
WHEREAS, the Redevelopment Agency funded approximately $1.6 million of the $2.5
million in construction costs for the Nature Center; and
WHEREAS, the Redevelopment Agency also provided monies for start up costs and
annual operations of the Nature Center; and
WHEREAS, when the Nature Center in 2002 was transferred from the Bayfront
Conservancy Trust to the City of Chula Vista, the City Council and Redevelopment Agency
forgave $4.6 million dollars in loans owed to the Agency; and
WHEREAS, the Chula Vista Redevelopment Corporation recommended that the City
Council reconsider this forgiveness of debt and credit the amount towards the outstanding loan
balance of the Agency; and
WHEREAS, staff has reviewed the proposed activity for compliance with the State of
California Environmental Quality Act ("CEQA"), California Public Resources Code Section
21000 et seq., and has determined that the activity is not a "Project" as defined under Section
I 5378(b)(4) of the State CEQA Guidelines, therefore, pursuant to Section 15060(c)(3) of the State
CEQA Guidelines the activity is not subject to CEQA.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista hereby finds that the forgiveness of this debt will provide greater fmancial resources
necessary to accomplish the goals consistent with Community Redevelopment Law and the
Bayfront Redevelopment Plan by alleviating and preventing the spread of blight and
deterioration of the project 'areas and shall further protect the health, safety and welfare of the
citizens of Chula Vista.
~
18-36
BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista hereby
forgives $4.6 million in an outstanding loan balance owed to the General Fund for previous loans
owed to the Redevelopment Agency by the Chula Vista Nature Center.
Presented by
Apprpved as to form by
Gary Halbert, AICP, PE
Deputy City ManagerlDirector of
Development Services
....8-1"'1
18-37
l@Procopio.
/+dd/f,'o'r>a;! l Vlh,-r.",tX~h
IW 8 - 3/'2-(r 0
Procopio, Cory, Hargreaves & Sav~ch LLP
Waller E. Rusinek
Direct Dial: (6IQ't S25-3~ 12
E-mail: wCI'@procopio.cmn
March 2, 2010
City Council and Redevelopment Agency
City orChula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Re: Proposal for the City ofChula Vista to Forgive Debt Owed to it by the Chula
Vista Redevelopment Agency
Dear City Council and Members of the Rcdevelopment Agency:
This lettcr is submitted on behaJfofMr. Earl Jcntz to urge you to not approve the
proposed resolutions identified in Action [tcm 8 to reduce the approximately $21,7 million dollar
debt owed to the City by thc Chula Vista Rcdevelopment Agency (CVRA). Proposed Resolution
A would requirc the City to purchase 14.41 acres of vacant park land from CVRA for the sum of
$9.6 mi_llion, and then reduce CVRA's obligation to the City by that sum.
In addition, Resolution B would require the City to reduce CVRA's debt by another $4.6
million. That apparently is the amount whieh the fonner owner and operator of the Chula Vista
Nature Center owed CR V A as of 2002. However, when the Naturc Center was transterrcd to the
City in 2002, both the City Council and the CVRA approved resolutions that eliminated the debt.
Resolution B seeks to rescind those eight-year old decisions, and force the City to now bear that
$4.6 million expense.
We arc concerned that neither ofthese Resolutions as proposed protects the intcrests or
the residents and taxpayers of the City during this time of serious tinancial hardship. For those
reasons, both Resolutions should be rejected.
A. The Proposed Price For the 14.41-Acre Property Seems High Given its
Allowable Uses.
At the January 2010 meeting of the Chula Vista Redevelopment Corporation ("CVRC"),
we rcquested that the CVRC delay action on the sale ofthcsc 14.41 acres until the valuc ofth"
properties had been properly.apprais"d and those appraisals had been rcviewed by the CVRA
and the City Council. CR VC Staff had determined that these 14.41 acres were wroth $6.8 million
"based on the current park acquisition fec collected by the City on development projects in
Wcstern Chula Vista" using the Park Acquisition and Development ("PAD") of$474,443/acre to
53~ B Strect Suite 2100 . San Diego, CA 92101-4469 . T.619.238.1900 F.619.235.0398
Norlh ClWnty Office: 1917 Palomar Oaks W;ry, Suite 300 .. Carlsbad. CA 9200B-65\ 1 .. T. 760,931.9700 F. '760.931.1155
www.procopio.com OOOOOOOOOOOOOOOOOOOOOOOoOOOOOrJUOCi 'r.: .,"':i"':U:::
OOOOSOlOOOOOOfl1692 12.03
18-38
i@Procopio.
Board of Directors
March 2, 2010
Page 2
/
calculate the value of the property. We pointed out using the PAD fee to detennine the value of
the 14.41 acres was not a proper way to value the property.
Subsequently, CRVC apparently had the property appraised at a value of $9.6 million or
approximately $666,000/acre. That is the amount that the City would pay ifit approves
Resolution A. Unfortunately, we have not seen any infonnation regarding the basis for the
appraisal, and we arc concerned that the $666,000/acre value is too high given the status of the
property.
Specifically, as the attached CVRC Staff Report acknowledged, the property is
designated "Open Space Recreation" in the General Plan and is "well suited, and supported by
the General Plan and the community, to be a future park and not a redevelopment project" ]n
fact, the CRVC Staff'Report concluded that the transfer orthe property to the City would be
exempt from environmental review under California Environmental Quality Aet ("CEQA")
Guidelines Section 15325 because it would constitute the "Transrer of Ownership Interest in
Land to Preserve Existing Natural Conditions"
If the 14.41 acres could be used only for open space or park purposes, a value of
$666,000/aere seems higher than fair market value. No doubt the City Council tahs seriously its
duty to taxpayers to ensure that it is paying fair market value for the land. But it is not clear
without reviewing the assumptions in the appraisal if paying $9.6 million for the property meets
that obligation. Moreover, paying above fair market value could violate Article XVI, Section 6
of the California Constitution, as incorporated in the City ofChula Vista Charter, because it
would be an impermissible gift of public funds, and Proposition C's prohibition on the City's
"participation" in CR VA's activities, which Section 305.5 of the City Charter defines broadly to
include "contributing, lending, providing, pledging, or foregoing, any funds, property, credit, in-
kind services, or incurring any debt or !case obligation, or providmg any other thing of value to
any agency, organization, Or project."
FinaIly, if the City believes that $660,000/aere represents the fair market value of this
property for park land, and it decides to approve Resolution A, the City should seriously consider
raising the PAD it currently charges to relleet the higher valuation. If the PAD fee is not
reconsidered in light of this action, the City may be underfunding the PAD program.
B. Assuming a Debt That the CRY A Agreed to Bear Does Not Appear to be in
the City's Interest.
As to Resolution B, the CRVC Staff Report stated that the $4.6 million debt was owed to
the CRY A because it provided $1.6 million to fund construction of the Nature Center, which was
owned and operated by the Bayfront Conservancy Trus!, and "provided monies for exhibits. start
up costs and annual operations of the Center" Although that was the amount orthe debt in
December of 2001, when the Nature Center was transferred to the City in 2002, both the City
OOOOSOJOOUOOOflI69212.0J
18-39
I@Procopio'
Board of Directors
March 2, 2010
Page 3
,
and the CVRA each approved resolutions that eliminated the debt. If Resolution B is passed, the
City would reverse its position artd effectively assume that $4.6 million expense. Because the
debt was simply climinated in 2002, there is no evidence that the City made any determination as
to whether the $4.6 million debt included only reasonable and 1cgitimate expenditures by CVRA.
The reason for the City to assume a $4.6 million debt that both parties agreed the City
would not bear has not been made clear. The facts show that the action involves the cancellation
of the CRY A's debt with no consideration provided to the City. Simply relieving debt without
any consideration constitutes an improper gift of public funds, Westley v. u.s. BancOlp (2003)
114 Cal.App.4'h 577, 582, and the fact that the City and the CR VA are publie agencies does not
change that fact. City ofOjai v. Chaffee (1943) 60 Cal.App.2d 54, 59.
We are concerned that the City's apparent rush to reduce the CR V A's $21.7 million debt
to the City will result in it paying too high a price for park lands and relieving the CRY A's debt
without any consideration. If so, the proposed transactions would not serve the interests ofthe
taxpaying residents of the City. Again, we urge that the Resolutions as proposed be rejected at
this time.
Very truly yours,
6~~) L
Waiter E. Rusinek
WER
Enclosure
(}()005U1000000ill b~212.0J
18-40
fill
..
REDEVELOPI\,1ENT
CORPORATION
(HULA VISTA
CYRC Board
Staff Report - Page 1
Item No.1
--
DATE: February 25, 2010
TO: CVRC Board Directors
VIA: Gary Halbert, Deputy City Manager/Development Services Director
FROM: Eric Crockett, Redevelopment Manager
SUBJECT: Loan Repayment to the General Fund
EXECUTIVE SUMMARY:
The Chula Vista Redevelopment Agency currently owes the City of Chula Vista
apprDximately $26 milliDn frDm loans made tD the Agency fDr Redevelopment Project
Area start up costs and payments made on behalf of the Agency towards Certificates of
Participation (COP) issued to build the parking facility at the Chula Vista Center in 1987.
Over the past two years, the Agency has made significant efforts to reduce the debt owed
to the City, anticipating that by the end of fiscal year 2009/10 the Redevelopment Agency
will have repaid, over the last two years, approximately $9.3 million, reducing the
remaining debt to the City to approximately $21.7 mHlion. To continue to reduce the debt
obligations of the Agency, staff recommends that the Chula Vista Redevelopment
Corporation (CVRC) recommend to the Agency that it sell an Agency-owned 14.41 acre
site located in the lower Sweetwater Valley to the City and that the Agency be credited for
an outstanding loan owed to the Agency that was forgiven by the City in 2002.
ENVIRON~ENTAL REVIEW:
The Environmental Review Coordinator has reviewed the proposed action for compliance
with the California Environmental Quality Act (CEQA) and has determined that the project
qualifies for a Class 25 (f) (Acquisition, sale, or other transfer to preserve open space or
lands for park purposes) categorical exemption pursuant to Seclion 15325 [Transfer of
Ownership of Interest in Land to Preserve Existing Natural Conditions] of the State CEQA
Guidelines. Thus, no further environmental review is required.
RECOMMENDATION:
That the Chula Vista Redevelopment Corporation approves:
18-41
Staff Report - Item No.1
Page 2
..
A. Resolution of the Chula Vista Redevelopment Corpor~tion recommending that the
Redevelopment Agency sell the 14.41 acre site (APN 563-350-1300 and 566-131-
0100) located in the lower Sweetwater Valley to the City of Chula Vista for an
amount equal to the appraised value of $9.3 million.
B. Resolution of the Chula Vista Redevelopment Corporation recommending that the
City Council forgive $4.6 million in outstanding loan balance owed to the General
fund for previous loans owed to the Agency by the Chula Vista Nature Center.
.
DISCUSSION:
Loan Repayment Efforts by the Agency
At the close of fiscal year 2007/08 the Redevelopment Agency had an outstanding loan
balance owed to the City of Chula Vista of approximately $31 million. Approximately $11
million of the outstanding loan balance was from loans made to the Agency for new
project area start up costs and interest accrued over the past thirty years. The remaining
$20 million has accrued as a result of the City making annual debt service payments on
behalf of the Agency toward Certificates of Participation (COPs) that were issued to build a
parking structure for the expansion on the Chula Vista Shopping Center in 1987. During
the _ 1992 to 2007 period, the Agency was unable to cover all of its outstanding debt
obligations and continued borrowing a million dollars each year from the City. Fiscal year
2007/08 was the first time in over fifteen years that the Agency was able to meet all of its
annual debt service obligations.
By the close of fiscal year 2008/09 the Redevelopment Agency had an outstanding loan
balance owed to the City's General Fund of approximately $26 million. During fiscal year
2008/09, the Agency was able to repay the City $3.7 million from a 2008 Tax Allocation
Bond issuance, $900,000 from unanticipated additional tax increment revenues and about
$500,000 i,n budgetary savings. The total 10<ln repayment for fiscal year 2008/09 was
approximately $5.1 million.
During the current fiscal year 2009/10 the Agency will repay the General Fund $1.4
million in hond proceeds for project expenditures and $2.8 million in projected tax
increment revenues. The total anticipated loan repayment for FY 2009/10 is projected to
be $4.2 million. By the end of fiscal year 2009/10 the Agency, over the last two fiscal
years, will have reduced the outstanding loan balance owed to the City by approximately
$9.3 million, resulting in a remaining balance of $21.7 million.
Sale of Af(ency Owned land
To continue the effort of reducing the remaining debt obligations owed to the City, staff
recommends the Agency sell two Agency owned parcels (APN 563-350-1300 and 566-
18-42
Staff Report - Item No.1
Page 3
"
131-0100) to the City. These parcels have liltle opportunity for redevelopment and are
better suited for long term public use as a park. The site is 14.41 acres located in the
lower Sweetwater Valley. The lower Sweetwater Valley site is a vacant site and has a
General Plan designation of Open Space Recreation. The site is well suited, and supported
by the General Plan and the community, to be a future park and not a redevelopment
project. The sale of this land to the City has an appraised value of $9.3. The sale of this
site would leave a remaining outstanding loan balance to the City of approximately $12.4
million.
Agency Investment Credits
In addition, at the May CVRC meeting Director Desrochers requested that staff return with
a report on what projects, funded by the Agency, could be considered by the City Council
as a credit toward the outstanding loan. In reviewing the list of Agency funded projects,
the CVRC should consider requesting the City Council reduce the Agency debt owed to
the City equal to the Agency investment made as a loan toward the Chula Vista Nature
Center that was forgiven in 2002 when the Nature Center was transferred to the City. This
debt forgiveness will coincide with the transition of the Nature Center to a non-profit
organization.
The Redevelopment Agency funded $1.6 million of the $2.5 million in construction cost
for the Nature Center, provided monies for exhibits, start up costs and annual operations of
the' Center. By December 2001, the Nature Center had an outstanding obligation to the
Agency, including principal and interest, of approximately $4.6 million. However, in
2002, the Nature Center, owned and operated by the Bayfront Conservancy Trust, was no
longer able to adequately fund its operation and it was decided that the ownership of the
Nature Center would be transferred to the City. As part oi this transier the City Council
and the Agency each approved resolutions that eliminated the $4.6 million owed to the
Agency without consideration on reducing the debt the Agency owed to the City. The
CVRC cou Id request the City Council and Redevelopment Agency reconsider the
forgiveness, of this debt and credit the amount toward the outstanding obligations owed to
the City. ,;
DECISION-MAKER CONFliCT:
Staff has reviewed the property holdings of the Chula Vista Redevelopment Corporation
members and has found no property holdings within 500 ieet of, the boundaries of the
properties that are subject to this action.
FISCAL IMPACT:
The resolutions before you tonight consist of recommendations for action on the part of the
Chula Vista City Council and/or Redevelopment Agency. As such, approval of the
18-43
Staff Report - Item No. 1
Page 4
resolutions does not have a direct fiscal impact on the Chula Vista Redevelopment
Corporation, the Chula Vista Redevelopment Agency, or the City's General Fund.
To follow is a discussion of the fiscal impacts if the recommendations are implemented by
the City Council andlor Redevelopment Agency.
Resolution A
Resolution A, if approved by the Redevelopment Agency and the City Council, would
generate approximately $9.3 million in revenue to the Agency that would be utilized to
repay the General Fund and reduce the outstanding debt owed to the City. This transaction
would result in no net impact to the Agency's fund balance, but would reduce outstanding
debt obligations to approximately $12.4 million.
The purchase of the property from the Agency would be funded by the City using Park
Acquisition and Development (PAD) fee monies. The PAD fee program is the City's
primary fi nancing mechanism for parkland facilities. All new residential development
(including hotels/motels) is subject to the PAD fee, which the City collects and uses to
construct new parkland facilities or rehabilitate existing facilities.
The proposed park site to be acquired from the Agency will serve and be funded by future
western Chula Vista residents, including residents of the Urban Core Specinc Planning
Area. As a result, the PAD fund has not yet collected sufficient funds from development in
western Chula Vista to finance this purchase. It will therefore be necessary to internally
borrow the funds within the PAD fund, using funds that have been collected for the
purpose of constructing a community park in eastern Chula Vista. The internal loan within
the PAD fund will be repaid as funds become available, either as a result of credit
acqui,itions by the Agency or the payment of PAD fee, by developers in western Chula
Vista. The Agency will ensure that PAD fund, are repaid to fully fund the development of
the park for which they were originally collected.
It is antictPated that the Agency will purcbase PAD fund credits to help incentivize
redevelopment activity in western Chula Vista. Actual property ,ale amount and credit
acquisition schedule will be subject to Council approval. The following cash flow reflects
the impacts of the proposed property sale and credit acquisitions for the Agency and PAD
funds for fiscal years 2009/10 through 2014/15.
~~('r <,r~,~~~:~;~ ~~i::~; !:l:"'~:;-~hT'::: F.y1j20D9:10~,4FN 201'O~11:'"'~Fy.201j:12,1:~FY 2012..13.' ^F~2013..14:.-:: FY ?014':16;
REDEVELOPMENT AGENCY FUNDS
Est. AvaiJable Fund Balance 1.042,000 6.841,000 443,000 590.000 902,000 803,000
E$tlmated Revenues
Tax Increment 14.755.000 15.020.000 15.320.000 15.627.000 15,939.000 16.206.000
Interest Eamln s 25.000 25,000 25 000 25 000 26,000 25 000
18-44
Staff Report - Item No.1
Page 5
6,800,000
24,080,000 15,045.000 15,345.000 15,552,000 15,954,000 15,283,000
Estimated ExpendItures
LowlMod and Passthroughs (5,565,000) (5,760,000) (5,852,000) (5,946,000) (6,042,000) (6,144,000)
De~t Pmnt - City (Par~ $) 1 (6,800,000)
Debt Pmnt - City (Non Park)2 (1.400,000) (2,000,000) (2,000,000) (2,000.000) (2,000.000) (2,300.000)
Debt Pmnt - Other (6,524.000) (4.285,000) (4.798,000) (5,796,000) (4,963,000) (5,308,000)
Agency Personnel Costs (708.000) (70B,000) (708.000) (708.000) (708,000) (708,000)
Project Expenditures (1,584.000) (1.890,000) (1,840.000) (890,000) (B50.000) (850.000)
16,810,000
. Est. Available Fund Balance 8,299,000 443,000 590,000 902 000 803,000 276 000
PAD FUND
Esl Available Fund Balance 35,500,000 22,390,000 23,100,000 23,840,000 24,600,000 26.930,000
Estimated Revenues
Sale of Fee Credits 1,500,000 1,500,000
Interest !;amin s 690,000 710,000 740.000 760.000 830,000 910.000
Total Estimated Revenues 690,000 710,000 740,000 760,000 2 330,000 2,410,000
Estimated Expenditures
Purcl1ase of Property
Perk Pro ect Ex enditures
Total Estimated Ex enditures
Est. Available Fund Balance 19.200,000 19,910,000 20,650,000 21,410,000 23,740,000 26,150,000
1: The $93 million debl rcpo:Iymcnt from the Agency to the City is for an existing debt oblrgalion ()f the Agency. This
lump-sum payment short~ns the repayment perlod for the Agency and makes on(Himc funds avail.ilile to th~ Cily 10
balance the F-Y 201 {).11 operating budget.
}: Annual debt payment amounts are shown for cash flow fon..'GJ.stirlg purposes only. The ,Ktual p..lymcnt sche<iule will be
discussed in conjunction with the regular budget proces.s, Including patenti,,! use of funds for project expenditures.
,
ResolutiorfB
Resolutiorl B, if approved by the City Council, would rt.>duce the debt owed to the City by
the Agency by approximately $4.6 million. This reduction in debt owed to the City would
reduce the future repayments from the AgerlCY to the City, forgoing potential future
General Fund revenues,
Total Debt Reduction
Implementation of both recommendations would reduce the outstanding loarl balance from
the City to the Agency to approximately $7.8 million, as detailed below. For forecasting
purposes, staff anticipates the repayment of the $7.8 million via anrlual payments of $1.5
million each over a five year period (year 5 payment of $1.8 million). LOan repayments
18-45
Staff Report - Item No.1
Page 6
" ,
from the Agency to the General Fund over the next five years will be critical to avoid
additional staffi ng cuts and service level impacts. Repayment of the debt will be discussed
in conjunction with the regular annual budget process.
.
Outstanding debt to City Oune 30, 2008)
Less payment.s FY 2009-2010
FY 2009 repayments (actual)
FY 2010 re a ments (bud et)
Su btota I
Updated outstanding debt to City
Less recommended actions
Forgiveness of Nature Center Loan
Sale of Pro ert
Subtotal
Updated outstanding.debt to Cit
(5.1)
(4.2)
(9.3)
21.7
(4.6)
(9.3)
(13.9)
7.8
The reduction of Agency debt to the City would allow greater resources to be available for
reinvestment in the redevelopment project areas.
PREPARED BY,
Eric Crockett, Redevelopment Managef
,
.1\
18-46
RESOLUTION NO. 2010-
RESOLUTION OF THE CITY COUNCIL OF THE
CITYOF CHULA VISTA APPROVING THE GENERAL
FUND SPENDING PLAN FOR THE CITY OF CHULA
VISTA FOR THE FISCAL YEAR-ENDING JUNE 30,
2011 EXCLUDING CAPITAL PROJECTS LB144 AND
PR3ll
WHEREAS, Consideration and approval of the General Fund Spending Plan is a
preliminary step being added to the City's regular budget adoption process this year in
order to provide an additional opportunity for the City Council to provide input and
direction regarding the General Fund budget for the coming fiscal year; and
WHEREAS, the General Fund Spending Plan totals $134.0 million and reflects the
City Manager's recommended allocation of resources for fiscal year 2010-11 and takes
into account the continued impact of the economic recession; and
WHEREAS, in the process of formulating the proposed General Fund Spending
Plan a shortfall in the amount of $1 0.9 million was identified; and
WHEREAS, the proposed General Fund Spending Plan reflects net cost reductions
totaling $1.3 million, which were allocated evenly to the departments through net cost
reductions of 1.4%; and
- WHEREAS, in an effort to avoid additional service level impacts and employee
layoffs, the proposed General Fund Spending Plan contains one time revenue funding
from, the application of $9.6 million in one time revenues through loan repayments from
the Redevelopment Agency; and
WHEREAS, a public hearing on the General Fund Spending Plan was noticed and
all public testimony was received and considered.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby approve the City Manager's General Fund Spending Plan for the
City of Chula Vista excluding Capital Projects LB 144, and PR311 for Fiscal Year
2010/11.
Presented by
Approved as to form by
Maria Kachadoorian
Director of Finance/Treasurer
J
18-47
RESOLUTION NO. 2010-
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA APPROVING THE SPENDING
PLAN FOR CAPITAL PROJECTS LBI44 AND PR311
FOR FISCAL YEAR 2010-11
WHEREAS, Consideration and approval of the General Fund Spending Plan is a
preliminary step being added to the City's regular budget adoption process this year in
order to provide an additional opportunity for the City Council to provide input and
direction regarding the General Fund budget for the coming fiscal year; and
WHEREAS, the General Fund Spending Plan totals $134.0 million and reflects the
City Manager's recommended allocation of resources for fiscal year 20 I 0-11 and takes
into account the continued impact of the economic recession; and
WHEREAS, the General Fund Spending Plan includes $1.0 million for two new
capital improvement projects LB 144 and PR311 that will be funded through a loan
repayment from the Redevelopment Agency to the General Fund; and
WHEREAS, The RDA funding is available through the Tax Allocation Refunding
Bonds and must be spent on eligible capital expenditures; and
WHEREAS, a public hearing on the General Fund Spending Plan was noticed and
all public testimony was received and considered.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Chula Vista does hereby approve the City Manager's General Fund Spending Plan for the
City of Chula Vista excluding Capital Projects LB 144, and PR311 for Fiscal Year
2010/11.
Presented by
Approved as to form by
Maria Kachadoorian
Director of Finance/Treasurer
/
. '
l.zBafl . 1 /
-(0b Attorney
18-48
~.Y
:r::~ ~ ~
4/r5/\ 0
. Significant reductions made in the General Fund,
Redevelopment, Housing, Fleet, and Development
Services since 2007
. Net reduction of 258.75 permanent positions and a
significant reduction to hourly staffing through FY 2009-10
. The City continues to feel the impact of the economic
recession in the current year and in fiscal year 2010-11
Sales Tax 25,546,000 23,634,000 (1,912,000) -7%
Franchise Fees 10,033,000 7,652,000 (2,381,000) -24%
Utility Users Tax 8,169,000 8,756,000 587,000 7%
TOT 2,603,000 1,941,000 (662,000) -25%
Motor Vehicle License Fees 18,287,000 16,934,000 (1,353,000) -7%
Development Revenue 1,876,000 1,186,000 (690,000) -37%
licenses & Permits 652,000 677,000 25,000 4%
Fines, Forfeitures, Penal lies 2,380,000 2,060,000 (320,000) -13%
Use of rvloney& Property 1,813,000 1,772,000 (41,000) -2%
Other Local Taxes 2,031,000 2,031,000 0
Police Grants 1,514,000 1,238,000 (276,000) -18%
Other Agency Revenues 1,265,000 1,157,000 (108,000) -9%
Charges for Service 5,993,000 6,040,000 47,000 1%
Interfund Reimbursements 9,972,000 9,313,000 (659,000) -7%
Other Revenue - Miscellaneous 1,928,000 1,326,000 (602,000) 31%
Transfers In from Other Funrls 12,340,000 12,315,000 (25,000) 0%
Base Revenue Subtotal 133,601,000 122,105,000 (11,496,000) -9%
One-Time Revenue 1,000,000 1,000,000
Total Revenues 133,601,000 123,105,000 (10,496,000) -8%
Franchise Fees
6%
MVLF
15%
Other Local Tax
10%
Charges for Svcs
6%
Sales Tax
19%
Transfers In
10%
Property Tax
21%
Use of Money &
Property
1%
Utility Users Tax
2%
Revenue from Other
Agencl8s
2%
2
ASSESSED VALUATION ADJUSTMENTS
DRIVEN BY CHANGES IN THE CPI
15%
5%
-Assessed Valuation Increase
-CalitePI
10%
2.0
0%
5%
-<>:",....0."&'"'", "%, *.r? "\" {O'f,~ ~\f,.~,q,,,,,...."'''''\j,.''o;.,,, ",~:o,'" '?\9/~ 4-,%"'",<%.''0:.0..-''''.9", %"1> '\v '%/?".' '?'o" ~ '"-'''k''\, '0:",.,""'% ~ 'k.o~'
FISCAL YEAR
Historical Change in Assessed Value
City of Chula Vista and Countywide Comparison
25%1
'~!;'~~~~~~:~~~-"
15%
D Chula Vista
CCountyOverall
Source- Co'mly of San Diego Assessors Office. The 2011 assessed value change is a preliminary estimate provided by
the County.
3
$150
~
~ ~~
g ~ ~i
. "
Per Capita
Sales Tax
$300
$250
$200
~
"
.
taqe Chanqe
Quarter Percen
Quarter Over
-10%
-15% 1----
,
. -20%
" 2"
~Q ~o ..?Oo. 000 0..9
..?o. ..?OO ~OO6' 06' 000 <90..? 0.;> q.,.
~Q ..?Q ..?Oo ..?Oo.> 06' (90 Q q.,. 7
~ ~o. ~OQ 0.> v.> ~ Q Q 07 ? V'
..?OOo 006' OOQ O'Q 07 O..? V' 57
07 O..? V' 57
4
$')11
'"
c:
~ $KII
~ $7,0
$",11
S)II
S~.O
53.11
$2.11
$1.11
20111 211112 21103 20114 211115 211111, 201l] 21111~ IIlO" 21110 20 I] 2U 12 21113 2111,l IU 15
I--Energy __Trash/Cable I
General Fund Expenditure Summary by Category
In Thousands (000)
Supplies and Services
Other Expenses
Operating Capital
Utilities
Debt Service/Transfers Out
CIP Proiect Expenditures
Total Operating Budget
$ 14,828 $
$ 1,050 $
S 100 $
$ 5,052 $
$ 8,861 $
$ S
$ 132,966 $
15,003 $
732 $
88 S
5,244 $
8,781 $
1,000 $
134,009 $
175
(318)
(12)
192
(80)
1,000
1,043
1%
-30%
-12%
4%
-1%
1%
Note: FY11 Personnel Savings reflects an increase of $1.8 million In salary savings, from $3.1
M to $4.9 M, to reflect 28.0 positions that are currently vacant and frozen and anticipated
turnover of 2%.
5
PERS
FLEX/Insurance
r 8%
Salarios/Wages
47%
4%
Other Personnel Cost"
1%
Supplies and Ser\llces
11%
Notes: Personnel Services, represented above as SatariesNVages, PERS, FLEX/Insurance, Overtime, and Other
Personnel Costs, represents 76% olllle General Fund Budget Other Personnel Cost~ r",flects other personnel costs
Includlngwor\l.ers comp net of the budgeled salary savings costs
Fiscal Year 2010 Adopted Budget
Mid year changes (-1 0 ACO)
Current Staffing
Proposed FY11 Changes:
Eliminate Animal Care Supervisor
Eliminate Animal Control Officer Supervisor
Eliminate Building Project Manager
Eliminate Senior Civil Engineer
Eliminate Code Enforcement Officer II
Eliminate Public Safety Analyst
Transfer/reclass Volunteer Coord to HR Tech
FY 11 General Fund Proposed Staffing
869.50
-1.00
868 50
-1.00
-1.00
-100
-100
-1.00
-0.50
0.25
-5.25
863.25
6
Fire Dispatch 11.00 (11.00) (11.00) -100%
Redevelopment 1400 (10.00) (10.00) -71%
Library 68.75 (28.50) (0.50) (4.00) (33.00) 48%
Planning & Building 96.50 (41.50) (1.00) (42.50) -44%
Recreation & Nature Center 43.25 (17.25) (17.25) 40%
Finance 40.50 (14.50) 1.00 (1.00) (14.50) -36%
Human Resources 25.50 (9.50) 0.75 (8.75) -34%
Administration 15.00 (5.00) (5.00) -33%
ITS 28.00 (9.00) (9.00) -32%
City Clerk 8.50 (2.00) (2.00) -24%
Public Works & Engineering 334.00 (64.50) (2.00) (7.00) (73.50) -22%
City Attorney 14.00 (4.00) 1.50 (0.50) (3.00) -21%
Police 364.50 (42.50) (0.50) (13.50) (56.50) -16%
Animal Shelter 22.25 (3.00) (3.00) -13%
City Council 15.00 (2.00) (2.00) -13%
Fire (Excluding Dispatch) 141.00 (5.00) (1.00) . (2.00) (8.00) -6%
Housing 5.00 2.00 2.00 40%
CBAG & Police Grants 1700 5.50 4.00 9.50 56%
CITYWIDE TOTAL 1,263.75 258.75 (0.75) (28.00 (287.50 -23%
Revenues
One-time Revenue (CIP)
Total Revenues
FY2010-11 Budget
$ 122.1
$ 1.0
$ 123.1
Expenditures
One-time CIP
Total Expenditures
$
$
$
133.0
1.0
1340
Projected Deficit (Rev - Exp) $
One-time Revenue (RDA) $
Department Net Cost Reduction $
Updated General Fund Deficit $
(10.9)
96
1.3
7
City Clerk $ $
City Attorney $ $ $
.Adm inis tration $ $ $
ITS $ $ $
Human Resources $ $ (52,000) $ (52,000)
Finance $ 50,000 $ $ (50,000)
Non Departmental $ $ 85,000 $ 85,000
Animal Care Facility $ $ (20,000) $ (20,000) -1.6%
Planning & Building (Dev Svcs) $ $ (5,000) $ (5,000) -0.5%
Police $ 120,000 $ (417,000) $ (537,000) -1.4%
Fire $ 200,000 $ (100,000) $ (300,000) -1.4%
Public Works $ 94,000 $ (80,000) $ (174,000) -14%
Recreation $ $ (42,000) $ (42,000) -14%
Library $ $ (65,000) $ (65,000) -1.4%
Total Net Cost Reduction $ 464,000 $ (843,000) $ (1,307,000) -1.4%
Fiscal Year 2010-11 General Fund Proposed Budget
Revenue
Expenditures
Deficit/Surplus
$
$
$
133,167,399
133,167,399
8
April 19
May 6
. May 25
. May 27
. June 8
. July 1
Proposed projects available for viewing on City's website
at www.chulavistaca.qov
Public Infrastructure Workshop at 4 pm in the Po/ice
Department Auditorium
Overview of Other Funds and Capital Improvement
Projects Budget
City Manager Proposed Budget document and ~ive Year
Forecast Report submitted to Council
Public Hearing and Recommend Council adoption of
Proposed FY 2011 Budget (All Funds)
Begin long term financial planning process and identify
ongoing budget balancing options; continue
implementation of Fiscal Health Plan
FY 2010-11 Proposed CIP by Funding Source
Transportation
Grants
17%
Traffic SignAl
,-- 4%
"
,,,\ TransNet
\ 15%
\
'\
Park Acquisition
and Development
(PAD) ~\
2%
Development
Impact Funds_
(DIF)
11%
Miscellaneous
Grants
10%
CDBG (Incl
Section 108 and
COBG-R)
9
FY 2010-11 Proposed CIP by ProjectType
Traffic Drainage
8% 4%
.-/
General
11%
Local Streets
34%
. That the City Council adopt the resolution:
- Approving the General Fund Spending Plan for
the fiscal year ending June 30, 2011 excluding
Capital Projects LB144 and PR311
- Approving the Spending Plan for Capital
Projects LB144 and PR311 for Fiscal Year
2010-11
10