HomeMy WebLinkAboutItem #12CITY OF
LAI-E LSINORE
CREAM EXTREME
REPORT TO CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: GRANT YATES, CITY MANAGER
PREPARED BY: JAMES R. RILEY, DIRECTOR OF ADMINISTRATIVE SERVICES
DATE: JUNE 25, 2013
SUBJECT:' FISCAL YEAR 2013 -14 CITY OPERATING BUDGET
RECOMMENDATION:
It is recommended that the City Council adopt Resolution 2013 46'badopting the Fiscal
Year 2013 -14 Proposed Operating Budget. The funds reported with this proposed
operating budget include the General Fund, Special Revenue Funds, Capital Project
Funds and Agency Funds. Also, presented with this report is the fiscal year 2013 -14
proposed authorized position schedule and the major goals and accomplishments
related to City departments. The Capital Improvement Plan (CIP) will be presented as a
separate public hearing item on the June 25, 2013 agenda.
BACKGROUND
The City annually schedules a budget study session with the City Council and the
residents to discuss the proposed City Operating budget for the upcoming budget year.
On Thursday, May 30, 2013 at 5:00 p.m. in the Senior Center Annex, the study session
was held and the proposed budget for fiscal year 2013 -14 was discussed along with the
Capital Improvement Plan (CIP) for fiscal years 2013 -14 to 2017 -18.
The City Operating Budget was developed to ensure that the City Council vision that
"the City of Lake Elsinore will be the ultimate lake destination where all can live, work
and play, build futures and fulfill dreams" can happen.
AGENDA ITEM NO. 12
Page 1 of 7
FY 2013 -14 City Operating Budget
June 25, 2013
This year, there were seven key initiatives set to give direction toward meeting that
vision. They are:
1. Public safety
2. Recreation
3. Transportation
4. Economic Development
5. Image
6. Education
7. Service
This budget meets several of those key initiatives through the following:
1. Opening and staffing of the Rosetta Canyon Fire Station #97
2. Funding the Police contract, which includes the full year staffing of two (2) motor
officers and a Community Service Officer (CSO).
3. Retooling the Organization and create a core staffing model to meet current and
future recreation and economic development opportunities while providing a high
level of customer service to our residents and businesses.
DISCUSSION
The City's fiscal year 2013 -14 Proposed Operating Budget is a balanced budget. Below
is a summary overview of the budget (in millions):
Revenues, expenditures and fund balances reserves will be discussed below.
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General
Special
Fund
Revenue Fund
Total
Revenues
$27.1
$4.8
$31.9
Expenditures
29.9
4.8
34.7
Revenue Over/ (Under) Expenditures
( 2.8)
0
(2.8)
Carryover Revenue from FY 2012 -13
1.5
1.5
Budget Stabilization Reserve
1.3
0
1.3
Balanced Budget
0
= ._0
0
Revenues, expenditures and fund balances reserves will be discussed below.
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FY 2013 -14 City Operating Budget
June 25, 2013
Revenues:
In fiscal year 2013 -14, the City is anticipating a net increase in General Fund operating
revenues of 9.10% over the prior year, or $2.3 million.
The significant changes in fiscal year 2013 -14 revenue is noted below:
Sales Tax
$107,607
Property Tax
141,389
Building Permit Fees
459,989
Fees/ Charges for Services
608,730
Fines & Forfeitures
(159,100)
LERA Lease Payments
496,000
Operating Transfers In
275,667
Other Revenue Changes -Net
330,304
Net Increase/ (Decrease)
In General Fund Revenue $2,260.586
Expenditures:
In fiscal year 2013 -14, the City is anticipating a net increase in General Fund operating
expenditures of 12.6% over the prior year, or $3.3 million.
The significant changes in fiscal year 2013 -14 expenditures is noted below:
General Law Enforcement
Fire Services
Community Development
Non - Departmental
Other Expenditure Changes -Net
Net Increase/ (Decrease)
In General Fund Expenditures
$ 822,018
1,510,397
280,350
528,700
215,106
$3,356,571
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FY 2013 -14 City Operating Budget
June 25, 2013
Fund Balance Reserves:
To balance the fiscal year 2013 -14 operating budget, the following general fund
reserves are proposed for allocation:
Budget Surplus Carry forward from FY 2012 -13 $1,494,721
Budget Stabilization Reserve (Not used in 2012 -13) 1,334,899
Total Reserves to use in 2013 -14 2 829 620
Fiscal year 2012 -13 is projecting a budget surplus of $1,494,721. This is due to an
increase in building permits fees and the receipt of several one -time revenue funds.
The proposal is to carry forward this surplus to FY 2013 -14. Also, as a result of this
surplus, the budget stabilization reserve which was original allocated to be used in FY
2012 -13, will be allocated to the 2013 -14 operating budget.
The remaining general fund balance reserves will continue to be strong, being 33.26%
of general fund expenditures. The reserve balances will be broken down as follows:
Unallocated Reserve
Replacement Funds
Civic Beautification
Darwin Rogers Trust Funds
Uncertainty Reserve (17.5 %)
Budget Stabilization Reserve
$3,005,669
316,302
180,000
129,000
5,232,846
1,095,573
Total General Fund Reserves $9,959,390
The Uncertainty Reserve, formerly known as the Catastrophic Reserve, is proposed to
be increased from 15% of general fund expenditures to 17.5 %. This reserved shall be
used to mitigate costs associated with unforeseen emergencies, including natural
disasters or catastrophic events. If the need arise, the City Manager or designee shall
present to the City Council the details of required expenditures.
The Budget Stabilization Reserve was established to mitigate annual budget revenue
shortfalls due to changes in the economic environment.
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FY 2013 -14 City Operating Budget
June 25, 2013
Special Revenue Fund, Capital Projects & Agency Funds:
The fiscal year 2013 -14 proposed budget also includes Special Revenue Funds, Capital
Project Funds and Agency Funds.
Special Revenue Funds
Special Revenue Funds are used to account for the proceeds of specific revenue
sources that are restricted by law or City Council resolution to be expended for specific
purposes. These include Law Enforcement grants, impact fees, transportation related
funds and Lighting and Landscape Maintenance Districts. Some of these funds are
included in the City Operating Budget.
Capital Project Funds
Capital Project Funds are used to account for financial resources to be used for the
acquisition or construction of various Citywide projects and includes administrative
expenses. These include various C.I.P. funds and CFD funds for construction.
A_gency Funds
The Agency Funds are used to account for money received by the City as an agent for
individuals, other governments and other entities. These include various assessment
districts, CFDs and trust funds.
Schedules are include with this report listing the estimated revenues, transfers,
expenditures and capital project costs related to each fund. The capital project costs
related to specific capital projects are also noted in the Capital Improvement Plan.
Authorized Personnel Schedule:
In establishing the budget in FY 2013 -14, a key objective was to retool the organization
and create a core - staffing model to meet current and future recreation and economic
development opportunities while providing a high level of customer service to our
residents and businesses. The core staffing levels were identified throughout each
department and are reflected in this proposed FY 2013 -14 Authorized Personnel
schedule.
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FY 2013 -14 City Operating Budget
June 25, 2013
Goals & Accomplishments:
City goals by department for FY 2013 -14 and major accomplishments for FY 2012 -13
are included in the goals and accomplishments report.
Prepared by: James R. Rile
Director of Admin st ative Services
t
�
�
Approved by: Grant Yates f:'°`
City Manager / Execu a Director
Attachments: Proposed Fiscal Year 2013 -14 City Operating Budget including the
following schedules:
1. Proposed City Operating Budget
2. Special Revenue, Capital Project & Agency Funds
3. Authorized Position Schedule
4. Goals and Accomplishments
5. City Council Resolution No. 2013- 0SZ
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RESOLUTION NO. 2013 -032
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, ADOPTING THE CITY'S OPERATING
BUDGET FOR THE FISCAL YEAR 2013 -2014
WHEREAS, the City Council has a policy of adopting an annual operating
budget to plan expenditures and to match anticipated revenues available in various City
accounts in order to make the most efficient use of the City's limited resources for each
fiscal year; and
WHEREAS, the City of Lake Elsinore Municipal Code Section 3.04.010
defines the fiscal year for the City of Lake Elsinore as extending from July 1St of each
year to and including June 30th of the following year.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The City of Lake Elsinore Operating Budget is hereby
approved and adopted for the 2013 -2014 fiscal year.
SECTION 2. A copy of the City of Lake Elsinore Operating Budget hereby
adopted and certified by the City Clerk shall be filed with the city Manager or a
designated representative, and a further copy so certified shall be placed and shall
remain on file in the Office of the City Clerk where it shall be available for inspection.
Copies of the certified budgets shall be made available for the use of departments,
offices and agencies of the City.
SECTION 3. This Resolution shall take effect from and after the date of its
passage and adoption.
PASSED, APPROVED AND ADOPTED this 25th day of June, 2013.
Robert E. Magee, Mayor
ATTEST:
Virginia Bloom, City Clerk
APPROVED AS TO FORM:
Barbara Zeid Leibold, City Attorney
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