HomeMy WebLinkAboutCity Council Agenda Item No. 11CITY OF 1.
LAKE r��LSIR0
DREAM EXTREME.
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT A. BRADY, CITY MANAGER
DATE: MAY 12, 2009
SUBJECT: FISCAL YEAR 2008 -09 THIRD QUARTER BUDGET REPORT
BACKGROUND
On February 24, 2009, a mid -year report on the fiscal year 2008 -09 General Fund budget
for the City was presented to the City Council. The purpose of the report was to provide
an update on the status of the current fiscal year activity and establish a plan for
maintaining a balanced budget for the remaining half of fiscal year 2008 -09. The City's
General Fund was the only budget reviewed. At that meeting, the City Council approved
revenue and expenditure adjustments to the budget, along with an allocation of $442,500
from the Supplemental Revenue Reserve Fund to cover the mid -year budget shortfall.
This report is a third quarter review of the fiscal year 2008 -09 General Fund budget,
along with a budget update on the status of the Lighting and Landscape Maintenance
Districts (LLMD) and the Capital Improvement Plan (CIP). A separate report has been
prepared in the Redevelopment Agency to provide an update on its budget status for
fiscal year 2008 -09.
DISCUSSION
General Fund
Revenue
In the mid -year report, revenues were adjusted down approximately $1.1 million. This
reduction was the result of a continued decrease in sales tax revenue ($901,000) and the
continued decline in fees ($331,600) related to development and housing activity. In our
review and analysis of revenues through the third quarter of fiscal year 2008 -09, no
further adjustments to revenue are recommended. Staff has met with both our sales tax
and property tax consultants and our current budget is consistent with their projections.
All other revenue sources also appear to be in line with our current budget.
Agenda Item No. 11
Page 1 of 5
Fiscal Year 2008 -09 Third Quarter Budget Report
May 12, 2009
Page 2 of 5
The table below shows the General Fund's current revenue budget for fiscal year 2008-
09:
Expenditures
City department budgets were further reduced at mid -year, with a few exceptions, for a
net reduction in expenditures of $703,200. No further reductions are recommended for
third quarter, as departments have worked hard to keep their expenditures within or
below budget. The current General Fund expenditure budget for fiscal year 2008 -09 is
noted below.
FY'08 -'09
Adopted
Budget
FY'08491st
Otr Budget
Adjmts
FY'08'09
Other Budget
Adjmts
FY'08- '09Mid-
Year Budget
Adjmts
FY 20082009
Current Budget
Revenues
Major Revenues:
322,900
(42,300)
3,109
10,500
294,209
City Tmasurer
Sales Tax
8,432,700
603,400
(8,900)
901,000
6,928,300
City Attorney
400,000
Property Tax
7,259,900
(496,400)
350,000
20,000
6,783,500
1,567,000
74,600
Franchise Tax
1,760,500
7,300
-
1,767,800
6,000
9,423
Building Permit Fee
1,200,000
900,000
Administrative Services
1,717,700
300,000
48,800
Property Transfer Tax
200,000
45,000
General Law Enforcement
20,000
225.000
Other Taxes
230,000
Fire 1
25,300
204,700
-
Other Licenses & Permits
1,040,700
222,900
Community Development
44,800
773,000
(11,020)
State and County Inter ov. Rev.
316,800
83,000
Public Works
113,800
347,600
12,914
Fees
2,907,900
(547,000)
Parks and Recreation
(331,600)
2,029,300
47,026
Fines and Forfeitures
541,000
-
Lak. rationsandA uatics
(22,000)
519,000
29,950
Miscellaneous Revenue
5,041,300
44,500
17,745
65,200
5,168,745
(46,500)
Supplemental Revenue
468,600
103,900
442,500
1,015,000
32,091.200
Unallocated Revenue Transfers
96,356
(703.200)
120,911
120,911
Transfers
2,691,800
597.200
3.289,000
Total Revenues 1
32,091,200
(2,054,800)
138,656
(703,200)
29,471,856
Expenditures
City department budgets were further reduced at mid -year, with a few exceptions, for a
net reduction in expenditures of $703,200. No further reductions are recommended for
third quarter, as departments have worked hard to keep their expenditures within or
below budget. The current General Fund expenditure budget for fiscal year 2008 -09 is
noted below.
Agenda Item No. 11
Page 2 of 5
FY 1 08 - 1 09
Adopted
Budget
FY'08 =091st
Qtr Budget
Adjmts
FY'08
Other Budget
Adjmts
FY'08-09Mid-
Year Budget
Adjmts
FY 20082009
Cu rrent Budget
Expenditures:
City Council
322,900
(42,300)
3,109
10,500
294,209
City Tmasurer
19,700
(1,000)
-
(8,900)
9,800
City Attorney
400,000
50,000
350,000
City Manager/ Informations stems
1,567,000
74,600
2,654
3,400
1,491,654
City Clerk
253,100
6,000
9,423
600
257,123
Administrative Services
1,717,700
79,000
48,800
49,800
1,737,300
General Law Enforcement
9,287,200
84,800
3,500
9,368,500
Fire 1
4,498,100
-
-
(46,000)
4,452,100
Community Development
3,250,500
(766,600)
(11,020)
(12,800)
2,460,080
Public Works
3,782,800
610,200
12,914
137,000
3,048,514
Parks and Recreation
3,002,800
137,500
47,026
23,100
2,935,426
Lak. rationsandA uatics
1,844,100
418,900
29,950
327,200
1,127,950
NorFDepartmental- Operating
2,145,300
46,500
(46,500)
(248,4001
1,896.900
Total Operating Exp.
32,091.200
(2,054,800)
96,356
(703.200)
29.429.556
Agenda Item No. 11
Page 2 of 5
Fiscal Year 2008 -09 Third Quarter Budget Report
May 12, 2009
Page 3 of 5
Lighting and Landscape Maintenance Districts (LLMD)
The City maintains two lighting and landscape maintenance districts (LLMD), LLMD -
Citywide and LLMD No. 1. These districts were formed to provide a source of funds for
the installation, servicing, maintenance, repair and operation of lighting and landscaping
within the district. The boundaries for these districts were determined at the time they
were formed and new developments are annexed into LLMD No. 1. The funds are
derived from annual assessments levied on property tax bills. The expenditures for
services on these districts are limited to the funds received. Therefore, the annual
budget is prepared in accordance with the estimated revenue to be charged.
Increasing electricity and water cost have made it difficult to keep within the parameters
noted above. In response, staff has implemented several cost cutting strategies. These
have included reduction in water use and service reductions in landscape maintenance.
Long -term solutions include looking at our energy efficiencies in lighting to maintain a
balance budget.
In the review by staff of revenues and expenditures for both LLMD - Citywide and LLMD
No. 1, no adjustment to the adopted budget for fiscal year 2008 -09 is being
recommended. The strategies implemented by the Public Works department have been
effective.
The tables below reflect the adopted budget for both LLMDs:
CITY OF LAKE ELSINORE
Lighting and Landscaping Maintenance District - Citywide
Operating Budget Summa - Third Quarter Review
Fiscal Year 2008 -09
fff--
2008/2009 Adopted
Budget
Revenues:
Recoverable Expenditures
11,000
Investment Earnings
1,300
Special Assessments
1,251,000
Total Revenue
1,263,300
Expenditures:
Street Lighting
358,400
Traffic Signals
79,000
Tree Trimming
100,000
Landscape Maintenance
660,000
Total Expenditures
1,197,400
Excess deficient of revenues
over (under) expenditures
65,900
Agenda Item No. 11
Page 3 of 5
Fiscal Year 2008 -09 Third Quarter Budget Report
May 12, 2009
Page 4 of 5
CITY OF LAKE ELSINORE
Lighting and Landscaping Maintenance District No. 1
Operating Budget Summary - Third Quarter Review
Fiscal Year 2008 -09
1fl
200812009 Adopted
Budget
Revenues:
Recoverable Expenditures
4,000
Special Assessments
260,000
Total Revenue
264000
Expenditures:
Street Lighting
73,000
Tree Trimming
40,000
Landscape Maintenance
151,000
Total expenditures
264,000
Excess deficient of revenues
over (under) expenditures
_
Capital Improvement Plan (CIP)
In the fiscal year 2008 -09 adopted Capital Improvement Plan (CIP), $21.7 million was
approved for capital projects. Approximately 95% of the funding for these projects are
from non - discretionary sources and must be used for specific types of capital projects.
As of the end of the third quarter of fiscal year 2008 -09 (March 31, 2009), over $13.5
million has been spent or encumbered on these projects. The Rosetta Canyon Fire
Station and Park -Phase I project has spent or encumbered $6.2 million in fiscal year
2008 -09 and is scheduled for project completion by December 2009. The State Route
74/ 1 -15 Interchange Interim Improvements at $2.9 million, the annual pavement
management program at $1 million and the City contribution to the construction of the
Terra Cotta Middle School Gymnasium of $750,000 are other significant projects which
have expenditures or encumbrances this fiscal year.
There are no new recommendations for funding of capital projects in this third quarter
report. An updated and detailed CIP will be presented with the fiscal year 2009 -10
budget in June 2009.
FISCAL IMPACT
There is no fiscal impact.
Agenda Item No. 11
Page 4 of 5
Fiscal Year 2008 -09 Third Quarter Budget Report
May 12, 2009
Page 5 of 5
RECOMMENDATIONS
1. It is recommended that City Council receive and file this report.
Prepared by: James R. Rile
Acting Directo*oministrative Services
Approved by: Robert A. Brady
City Manager/ Executive Director
Agenda Item No. 11
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