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HomeMy WebLinkAbout2011-11-08 City Council Agenda Item No. 13 CITY OF LAKE 0 LSJ N lOr DREAM EXTREME, REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROBERT A. BRADY, CITY MANAGER DATE: NOVEMBER 8, 2011 SUBJECT: FISCAL YEAR 2011 -12 FIRST QUARTER BUDGET REPORT BACKGROUND The City's fiscal year 2011 -12 budget will be reviewed in this first quarter report. This report will communicate the status of the General Fund budget for the period July 1, 2011 through September 30, 2011. This report also includes a review of the General Fund fiscal year 2010 -11 Final Budget vs. Actual, which reflects a budget savings of approximately $1.9 million. DISCUSSION Fiscal Year 2010 -11 Final Budget vs. Actual REVENUE General Fund actual revenues for fiscal year 2010 -11 exceeded the final projected budget by $822,165. The primary sources of this increase over budget were as follows: Sales Tax Sales tax exceeded budget by $210,511. This is related to an increase in retail sales, new automobile sales and an increase in gasoline prices in fiscal year 2010 -11. Building Permit Fees Due to a change in building codes effective January 1, 2011 and an increase in new home construction compared to the previous fiscal year, the actual revenue received for building permit fees exceeded the FY 2010 -11 budget amount by $190,884. AGENDA ITEM NO. 13 Page 1 of 11 Fiscal Year 2011 -12 First Quarter Budget Report November 8, 2011 Page 2 of 6 Fines and Forfeitures An increase in payments for municipal code violations related to foreclosure and abandoned property was the primary factor in increasing the actual revenue received over the budget by $252,643. Banks which owned the property began to pay off violations which had accumulated over time in order to sell the property. Miscellaneous Revenue A refund of General Liability insurance of $110,095 and non - refundable and unclaimed deposits of over $118,000 accounted for the $201,940 variance over budget. EXPENDITURES All City departments review their budgets throughout the year for ways to efficiently service the residents of Lake Elsinore while keeping their cost within or under budget. Their efforts and hard work yielded results in keeping actual expenditures under budget in all departments, with a few exceptions, for a net savings in expenditures of $1,064,851. An explanation of the significant increases by departments is noted below: General Law Enforcement Our Lake Elsinore Police Department achieved a budget savings of $588,575. This was the result of a significant reduction in the Sheriffs actual contract rate vs. the budgeted amount along with a reduction in Lake Patrol cost. Fire Services Our Fire department also achieved a budget savings due to reductions in actual contract rate and support cost compared to the budget amount. This resulted in a savings of $168,791. Lake, Parks and Recreation Lake, Parks and Recreation actual expenditures came in $261,017 under budget. The primary savings related to Lake Operations. Material and supplies and professional services both came in significantly under budget. Page 2 of 11 Fiscal Year 2011 -12 First Quarter Budget Report November 8, 2011 Page 3 of 6 Budget Surplus The net surplus of the revenue increases and expenditure savings is $1,887,016. The one -time use of this budget surplus was reviewed with the City's Budget Committee, which consists of two Council Members and the City Treasurer. Departments prepared requests for one -time use of these funds and the City Manager and Director of Administrative Services presented these to the Committee. The request recommended by the Committee for funding and to be considered for funding with modification are presented as an attachment to this report, along with two additional projects not originally presented to the Committee. The grand total of these requests are $1,056,005 from the general fund and $220,000 from non - general fund sources. The remaining General Fund budget surplus of $831,011 would be an increase to the Unallocated Revenue Fund. The Mayor has requested that Council Members submit to the Budget Committee a list of projects by priority for direction concerning future use of surplus funds. Fiscal Year 2011 -12 1 Quarter Review GENERAL FUND REVENUE Based on our review and analysis of general fund revenues through the first quarter of fiscal year 2011 -12, the following adjustments to revenue are recommended: Motor Vehicle in Lieu Fee (State and County Intergovernmental. Revenue) The State of California, as part of approving their 2011 -12 budget, decided to take the Cities Motor Vehicle in Lieu Fee to fund the State Law Enforcement Supplemental Grant Fund (SLESF). The Toss to the City of Lake Elsinore General Fund for the Motor Vehicle Fee is $195,000. In return, the City received a SLESF grant for $100,000. Therefore, staff recommends that the City reduce the General Fund Law Enforcement budget by $100,000 and increase the SLESF fund by $100,000 for police services. The net effect will be a reduction of $95,000 to General Fund revenue. Municipal Code Violations (Fines and Forfeitures) The City has continued to receive an increase in payments from banks for municipal code violations related to foreclosed property. As a result, $250,000 in violation fees has been received by the City as of September 30, 2011. Therefore, staff recommends that an budget increase of $175,000 be made to Municipal Code Violations. The net effect to the 2011 -12 General Fund revenue of the above items is an increase of $80,000. Page 3of11 Fiscal Year 2011 -12 First Quarter Budget Report November 8, 2011 Page 4of6 All other General fund revenue is on track with City revenue projections. GENERAL FUND EXPENDITURES Based on our review and analysis of general fund expenditures through the first quarter of fiscal year 2011 -12, the following adjustments to expenditures are recommended: General Law Enforcement As noted under the Motor Vehicle in Lieu Fee, staff recommends that the General Fund Law Enforcement budget be reduced by $100,000 and the SLESF fund budget be increased by $100,000. All other Departments are meeting their budget targets as of the first quarter. POSITION REQUESTS/ CHANGES There following changes in positions are recommended. The detail of each position is included as an attachment to the report: Code Enforcement A new full -time Code Enforcement Officer I position is recommended for funding. This position would be responsible for weekend enforcement and other duties. The cost for this position for 1/2 year is $36,820. The funding of the position would be covered by the increase in the municipal violation fee budget and in the future years by an increase in CDBG funding of $50,000 anticipated beginning in fiscal year 2012 -13. Facilities Division (Lake, Parks and Recreation) The Facilities Division Lead Worker has been on workers' compensation for almost two years. The Lake, Parks & Recreation department is requesting to hire a Maintenance Worker I to help with the Facilities Maintenance. The funding of this position would be 90% covered by the savings from the Lead Workers salary while he is on workers' compensation. The uncovered amount of $4,364 would be offset by the increase in General Fund revenue noted above. The continuing of the position after fiscal year 2011- 12 would depend upon the status of the Lead Worker's situation. Public Works Public Works is requesting to reclassify their part-time Office Specialist I to full -time status. The position currently assists the Public Works Superintendant and is involved with several divisions. The net effect of making this position full -time is $12,731 and Page 4 of 11 Fiscal Year 2011 -12 First Quarter Budget Report November 8, 2011 Page 5 of 6 would be funded by Gas Tax and Measure A funds. Therefore, there would be no impact on the General Fund. Finance (Administrative Services) The finance division is requesting a part-time account specialist I to assist with cashiering and various functions in finance. The net impact of this position for fiscal year 2011 -12 is $11,768. This position would be funded by funds available in the Finance Division budget. Finance has taken duties in house for fiscal agent reporting that had been done by consultants. The funds to pay the consultants were from non - general fund sources that will now be paid to the City. The net increase to FY 2011 -12 General Fund expenditures for these position requests/ changes would be $41,184 The net positive effect to the FY 2011 -12 General Fund related to the recommended revenue and expenditure budget adjustments would be a net surplus of $38,816, which would increase the Unallocated Revenue Fund. FISCAL IMPACT The fiscal impact will be an increase to the City's Unallocated Revenue Fund. RECOMMENDATIONS 1. Approve the recommended one -time expenditures of $1,056,005 related to the General Fund budget savings in Fiscal Year 2010 -11. 2. Approve the recommended one -time expenditures of $220,000 from non - general fund sources for CIP' projects. 3. Approve the net budget adjustment of $38,816 to the Fiscal Year 2011 -12 General Fund budget. 4. Approve the net budget adjustment of $75,502 to the Fiscal Year 2011 -12 non - general fund sources for the City Operating Budget. Prepared by: James R. Rile ilk Director of Admi rative Services Approved by: Robert A. Brady 1 b City Manager / Executive Direct. 1 Page 5 of 11 Fiscal Year 2011 -12 First Quarter Budget Report November 8, 2011 Page 6 of 6 Attachments: 1. Fiscal Year 2010 -11 Final Budget vs. Actual Schedule. 2. Fiscal Year 2010 -11 Recommended One -Time Expenditures Related to Budget Savings 3. Fiscal Year 2011 -12 Recommended Position Budget Adjustments. Page 6 of 11 0 CO 0) Cl.. I c 01 I I o I�laglifIZ Io Io IZ 4 o Iv l� ag,e I�1� o m 01 DIN v MOO o 0 10 elm n1 l° I0 2p le I� ° I° I1el�je Ie ��I�Ie 1�I�1 I� I ` I c 1� 1th1 I CD , i U2 tV N10 IMio MIo olo m I 1 v 4 :::1•4:1'. - IM -Ir tO1 1, I 1 ' loo N N o I� 1 Iol IM1 t"J0 o co 010 O M 1�IM 1'p Ir Y>' 1 1 1 I I a I' 0'1 !' 1 I X 1 0 11 0 u. t� I I I I I I 1 1 I I I I I I -rO)Ir e1 tO N T of OD • r � 1^ �,., L--... 1 I I I mI> i < v0 m <o Nl(0 10 M v I • Io0 I I - 0 • 1 741 • I �I1..) 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