HomeMy WebLinkAboutSpecial City Council Meeting -Special Agenda - Fiscal year 2013-14 Mid Year BudgetC:II'Y of
Ll1I`ELSfIYC�IZL
Tuesday, March 11, 2014
City of Lake Elsinore
Special Agenda
Special City Council Meeting
4:00 PM
PUBLIC SESSION at 4:00 PM
Cultural Center
183 N. Main St., Lake Elsinore
LAKE- ELSINORE.ORG
(951) 674 -3124 PHONE
CULTURAL CENTER
183 N. MAIN STREET
LAKE ELSINORE, CA
92530
Cultural Center
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City of Lake Elsinore Page 1 Printed on 3/6/2014
Special City Council Meeting Special Agenda March 11, 2014
CALL TO ORDER - 4:00 P.M.
PLEDGE OF ALLEGIANCE
INVOCATION — MOMENT OF SILENT PRAYER
ROLL CALL
PUBLIC COMMENTS — NON - AGENDIZED ITEMS —1 MINUTE
(Please read & complete a Request to Address the City Council form prior to the start of
the City Council meeting and turn it into the City Clerk. The Mayor will call on you to
speak.)
DISCUSSION ITEM
ID# 14 -032 Fiscal Year 2013 -14 Mid -Year Operating Budget Status Report - General
Fund
Recommendation: Staff recommends that the City Council review the Fiscal Year 2013 -14 Mid -Year
Operating Budget, proposed adjustments and provide direction to staff for formal
consideration by the City Council at the regularly scheduled City Council meeting.
Attachments: 2013 -14 Mid -Year Budget Report 3 -11 -2014 corrected
PUBLIC COMMENTS — NON - AGENDIZED ITEMS — 3 MINUTES
(Please read & complete a Request to Address the City Council form prior to the start of
the City Council Meeting and turn it in to the City Clerk. The Mayor will call on you to
speak.)
ADJOURNMENT
The Lake Elsinore City Council will adjourn this meeting to the regularly scheduled meeting at
7:00 p.m.
AFFIDAVIT OF POSTING
I, Virginia J. Bloom, City Clerk of the City of Lake Elsinore, do hereby affirm that a copy of the
foregoing agenda was posted at City Hall 72 hours in advance of this meeting.
Virginia J. Bloom, City Clerk
City of Lake Elsinore Page 2 Printed on 3/6/2014
Cray Or .rho
LADE
if! LSINOIZE
M UREAM IxT RF.M h.
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: GRANT YATES
CITY MANAGER
DATE: MARCH 11, 2014
SUBJECT: FISCAL YEAR 2013 -14 MID -YEAR OPERATING BUDGET
STATUS REPORT — GENERAL FUND
RECOMMENDATIONS
Staff recommends that the City Council approve the Fiscal Year 2013 -14 Mid -Year
Operating Budget, as reflected and adjusted in the attached Exhibits.
11 e� N: (r 7: Z i 111 Ll I� 7
The City is presenting its FY2013 -14 Mid -Year Budget review of the General Fund. On
Thursday, March 6, 2014, the City's Budget Committee reviewed the FY2013 -14 Mid -
Year Revised budget for the General Fund. Please note that a review and status report
update for Special Revenue Funds, Capital Project Funds, and other funds will be
presented as part of the process for the FY2014 -15 Operating Budget and Capital
Improvement Plan Budget, which includes a comprehensive workshop in May 2014.
The downturn in the economy continues to challenge many cities throughout the state
and Lake Elsinore is no exception. While development activity momentum is building
within the City, it is critical that we continue to operate in a fiscally prudent manner,
maintain current public safety service levels, and continue providing key services that
our citizens have come to expect. As such, the FY2013 -14 Mid -Year Operating Budget
Status Report proposes to maintain current services through June 30, 2014, maintains
the Uncertainty Reserve at 17.5 %, and establishes a path towards development of the
FY2014 -15 Operating Budget and the Five (5) Year General Fund Financial Plan.
Included as attachments to this report are several schedules illustrate (in a tabular
format) the current status of the FY2013 -14 Mid -Year Budget for the General Fund, as
follows:
FISCAL YEAR 2013 -14 MID -YEAR OPERATING BUDGET STATUS REPORT — GENERAL FUND
March 11, 2014
Page 2 of 4
• Exhibit A — Selected Analysis — Reconciliation of General Fund Fund
Balance
• Exhibit B - Summary of Revenues, Expenditures, and Change in Fund
Balances — General Fund - FY2013 -14 Mid -Year Annual Operating
Budget
Exhibit C — Budget Calendar for FY2014 -15
DISCUSSION
Revenues:
At mid -year, the City is anticipating a net decrease in recurring operating revenues of
$775,292, from $26,308,291 to $25,532,999. The estimated revenue adjustments are
as follows:
Estimated Revenue Adjustments:
Reimbursements
$ 159,867
Franc his e fees
200,000
Property taxes
(34,053)
Sales taxes
(91,949)
Administrative fees, licenses, and charges
(272,900)
Firetax credit
(82,338)
Community Development fees
(120,100)
Code enforcement fees (structure abatement)
33,500
Weed abatement
(50,000)
Public Works fees
(4,100)
Lake, Parks, Recreation fees
(73,500)
Lake Elsinore Successor Agency - ReimburseD /S(FOR (439,719) $ (775,292)
The largest revenue decrease of $439,719 is largely offset by a similar decrease in
appropriations related to the ROPS (Recognized Obligation Payment Schedule)
payment and accounting for debt service paid on behalf of the Successor Agency. All of
the remaining revenue adjustments are as a result of changes in user fee estimated
revenues based upon activity year -to -date and projections to year end.
2
FISCAL YEAR 2013 -14 MID -YEAR OPERATING BUDGET STATUS REPORT — GENERAL FUND
March 11, 2014
Page 3 of 4
Expenditures:
Appropriations: The total decrease for mid -year appropriations is $766,969.
Departments were requested to reduce or maintain costs within their existing
appropriations, except for minor changes within individual line items.
Estimated Appropriation Adjustments:
General Law Enforcement $
(150,000)
Fire
(100,000)
Public Works
(100,000)
Lake Elsinore Successor Agency - ReductionD /S(ROPS
(439,719)
Other (Retirement related costs)
22,750 $ 766,969
However, the City Manager will be working closely with the departments to further
reduce expenditures before June 30, 2014.
GENERAL FUND BALANCE RESERVES
The General Fund Balance Reserves at June 30, 2014 would reflect the following as a
result of the proposed Mid -Year adjustments, as follows:
Nonspendable:
Deposits and prepaid items $ 1,034,879
Due from Successor Agency 434,897
Loans Receivable 1,000,000
Designated:
Uncertainty reserve 5,154,601
Undesignated:
Unallocated reserve /working capital 3,212,095
Total Fund Balance (net) 5 to R3F a��
The Uncertainty Reserve has been established at 17.5% of Appropriations.
FISCAL IMPACT
While the City is beginning to benefit from the improving economy, the development of
an accurate, balanced and achievable budget is critical to establishing a solid
foundation to manage the anticipated growth and demand for services within and by the
N
FISCAL YEAR 2013 -14 MID -YEAR OPERATING BUDGET STATUS REPORT — GENERAL FUND
March 11, 2014
Page 4 of 4
community. In developing and implementing a comprehensive operating budget plan,
the factors impacting the City's operations and financial condition are numerous, and
while the City's General Fund is still in a vulnerable condition, efforts will continue to
monitor operating activities closely to ensure the General Fund's resources are
programmed appropriately.
The FY2013 -14 Mid -Year Budget Report is one of the first steps in beginning the
FY2014 -15 budget preparation process. The City Manager will be proactively working
with each department to develop and present a balanced budget to the Mayor and City
Council that moves the City forward in achieving its financial goals as part of the
FY2014 -15 Budget process.
The overall fiscal impact of the FY2013 -14 Mid -Year Operating Budget for the General
Fund is as follows:
Revenue Adj us tments $ (775,292)
Appropriation Adjustments 766,969
Net reduction in transfers in (257,057)
Net reduction in transfers out 30,000
Net change /impact- FY2013 -14 Midyear Operating Budget $ (235,380)
Prepared by: Jason Simpson
Director of Administrative Services
Approved by: Grant Yates
City Manager
4
Exhibit A
Selected Analysis — Reconciliation of General Fund "Fund
Balance"
CITY OF LAKE ELSINORE, CALIFORNIA
FY2013 -14 MID -YEAR BUDGET - OPERATING
SELECTED ANALYSIS - RECONCILIATION OF GENERAL FUND - "FUND BALANCE"
DATED: FEBRUARY 28,2014
Projected Ending Fund Balance -June 30, 2014 (as adopted) $ 9,959,390
Designated for budget stabilization reserve 1,334,899
Designated for budget carry- forward from FY12 -13 1,494,721 2,829,620
FY2013 -14 Adopted Budget - Deficit (2,829,620)
FY2012 -13 Roll -Over Encumbrances (307,014) (3,136,634)
FY2013 -14 Midyear Budget Changes:
Net Impact -
Increase/ Favorable/
Adopted Midyear (Decrease) (Unfavorable)
Estimated Revenues $ 26,308,291 $ 25,532,999 $ (775,292) $ (775,292)
Appropriations 30,221,831 29,454,862 (765,969) 766,969
Transfers in 806,906 549,849 (257,057) (257,057)
Transfers out 30,000 - (30,000) 30,000
Net FY2013- 14 Net Mid -Year Operating Budget Surplus /(Deficit)
(235,380) $ (3,372,014)
Reconciling Items:
FY2012 -13 General Fund Net Revenue (unaudited)
(123,902)
Adjustment (Projected Ending Fund Balance) Budget vs. Actuals (FY2013 -14 Adopted Budget Book)
543,377
Audit Adjustment- Loan Receivable (Pottery Court) - Reclass Deferred Revenue to Fund Balance
1,000,000
Ending Fund Balance (Projected), June 30, 2014
$ 10,836,472
2
Exhibit B
Summary of Revenues, Expenditures, and Change in
Fund Balances — General Fund - 2013 -14 Mid -Year Annual
Operating Budget
CITY OF LAKE ELSINORE, CALIFORNIA
SUMMARY OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE
GENERAL FUND
2013 -14 MID -YEAR ANNUAL OPERATING BUDGET
Expenditures by Dept:
2012 -13
2012 -13
2013 -14
2013 -14
2013 -14
$ Variance
% Variance
City Council /PSAC
Revised
Unaudited
Current
Year -to -Date
Midyear
Increase
Increase
City Treasurer
Budget
Actuals
Budget
Actuals
Budget
(Decrease)
(Decrease)
Revenues:
325,000
366,912
325,000
100,860
325,000
-
0.00%
Sales Tax
7,923,000
7,788,115
8,030,676
3,433,520
7,938,727
(91,949)
-1.14%
Property Tax
5,396,581
5,263,296
5,537,970
2,859,295
5,478,917
(59,053)
-1.07%
Franchise Tax
1,875,000
2,095,081
1,900,000
715,159
2,102,000
202,000
10.63%
Building Permit Fee
1,254,000
1,867,598
1,900,000
1,101,633
1,900,000
-
0.00%
Property Transfer Tax
195,000
265,337
200,000
179,030
225,000
25,000
12.50%
Other Taxes
247,000
277,042
252,000
212,513
252,000
-
0.00%
Other Licenses & Permits
1,041,825
974,553
1,139,025
641,546
1,149,625
10,600
0.93%
Intergovernmental
109,889
79,706
110,307
73,837
118,407
8,100
7.34%
Fees
2,211,870
2,053,193
2,757,600
1,450,313
2,282,000
(475,600)
- 17.25%
Fines and Forfeitures
599,000
592,185
439,900
198,565
440,200
300
0.07%
Fire Service Tax Credit
1,816,436
2,073,402
2,000,000
454,109
1,917,662
(82,338)
-4.12%
Investment Earnings
195,000
9,010
195,000
47,555
195,000
-
0.00%
Reimbursements from RDA
314,760
314,760
328,813
193,223
321,180
(7,633)
-2.32%
RDA Lease Pymts (LERA)
704,000
704,000
1,200,000
600,000
760,281
(439,719)
- 36.64%
RDA SB211 Pass Through
98,000
102,422
98,000
55,261
98,000
-
0.00%
Other Miscellaneous Revenue
219,000
740,754
219,000
226,383
354,000
135,000
61.64%
Total Revenues
24,200,361
25,200,454
26,308,291
12,441,942
25,532,999
(775,292)
-2.95%
Expenditures by Dept:
Uncertainty reserve
3,641,400
City Council /PSAC
292,872
270,864
272,131
178,216
272,131
-
0.00%
City Treasurer
-
-
-
-
-
-
0.00%
City Attorney
325,000
366,912
325,000
100,860
325,000
-
0.00%
City Clerk
358,866
290,509
365,181
168,759
365,181
-
0.00%
City Manager /Eton Dev
515,259
420,069
474,952
289,390
474,952
-
0.00%
Administrative Services
2,333,757
2,380,460
2,244,738
1,467,903
2,244,738
-
0.00%
General Law Enforcement
7,849,832
7,548,303
8,471,850
1,562,251
8,321,850
(150,000)
-1.77%
Fire
4,016,939
3,935,908
5,390,844
1,241,406
5,290,844
(100,000)
-1.85%
Community Development
2,037,971
1,632,023
2,298,418
1,097,121
2,298,418
-
0.00%
Public Works
2,096,386
1,977,325
2,359,659
1,373,251
2,259,659
(100,000)
-4.24%
Lake, Parks and Recreation
4,209,411
4,250,777
4,276,234
2,663,980
4,276,234
-
0.00%
Animal Shelter Operating
484,308
485,161
738,624
197,339
738,624
-
0.00%
Non - Departmental - Operating
2,525,391
3,032,736
3,004,200
1,494,504
2,587,231
(416,969)
- 13.88%
Total Expenditures
27,045,992
26,591,047
30,221,831
11,834,979
29,454,862
(766,969)
-2.54%
Excess of Revenues Over
(Under) Expenditures
(2,845,631)
(1,390,593)
(3,913,540)
606,963
(3,921,863)
(8,323)
-0.21%
Operating Transfers In /(Out):
Operating Transfers In
1,195,510
1,266,690
806,906
163,872
549,849
(257,057)
- 31.86%
Operating Transfers In /(Out):
LLMD NO. 1 (Fund 135)
(30,000)
(30,000)
30,000
- 100.00%
Excess of Revenues Over
(Under) Expenditures and
Operating Transfers In /(Out)
(1,650,121)
(123,902)
(3,136,634)
740,835
(3,372,014)
(235,380)
-7.50%
Fund Balance, Beg. of Year
13,332,388
13,332,388
14,208,486
14,208,486
14,208,486
Prior Period Adjustment
1,000,000
-
-
Fund Balance, Beg. of Year (as restated)
5 11,682,267
$ 14,208,486
$ 11,071,852
$ 14,949,320 $
10,836,472
Detail of Fund Balance
Nonspendable:
Deposits and prepaid items
$ 1,070,606
$ 1,070,606
$ 1,034,879
$ 1,034,879 $
1,034,879
Due from Successor Agency
434,897
434,897
434,897
434,897
434,897
Loans Receivable
-
-
-
1,000,000
1,000,000
Designated:
Uncertainty reserve
3,641,400
3,641,400
5,232,846
5,232,846
5,154,601
Budget stabilization reserve
1,000,000
1,000,000
1,334,899
-
-
Budget carry-forward - FY12 -13
-
-
1,494,721
-
-
Working capital
-
-
-
Equipment replacement
114,073
114,073
316,302
-
-
Civic Beautification
210,763
210,763
180,000
-
-
Darwin Rogers Trust Funds
128,761
128,761
128,761
Undesignated:
Unallocated reserve
5,081,767
7,607,986
914,547
7,246,698
3,212,095
Total Fund Balance (net)
$ 11,682,267
$ 14,208,486 $
11,071,852 $
14,949,320
$ 10,836,472
Exhibit C
Budget Calendar for FY2014 -15
MONTH DESCRIPTION
MARCH
APRIL
MAY
JUNE
ONGOING
CITY OF LAKE ELSINORE, CALIFORNIA
FY2014 15 BUDGET CALENDAR
- Development of budget parameters /strategic goals
- Distribution of Budget Preparation Guidelines
- Budget workshop with key City staff
- Development of program goals and objectives
- Development of performance measures
- Budget requests submitted to Finance for review
- Proposed CIP ( "Capital Improvement Plan ") projects submitted to Finance
Department operating budget submittals reviewed
Revenue estimates completed by Finance
Budget analysis prepared for review by City Manager
CIP project timing and priorities modified based on available revenues
Preliminary operating and CIP budgets prepared
Five -year financial projection completed
Public budget workshop with City Council allowing for public input
Prepare agenda reports and proposed budget documents
Council adoption of final operating and CIP budgets
Council adoption of schedule of authorized positions and Gann Appropriations Limit
Monthly budget /actual reports reviewed & sent to Departments
- Quarterly financial statements prepared and presented to City Council
- Mid -year budget analysis and revision
10
TIMELINE
March 12
March 12
March 13
March 13
March 13
March 26
March 28
April 1
April 1
April 8
April 11
May 1
May 6
TBD - 3RD WEEK OF MAY
June 1
June 10
June 10
Monthly
Quarterly
February 2015