HomeMy WebLinkAboutItem No. 21 Adopt of FY 2017-18 Ann Oper BudgetText File
City of Lake Elsinore 130 South Main Street
Lake Elsinore, CA 92530
www.lake-elsinore.org
File Number: RES 2014-027
Agenda Date: 6/13/2017 Status: BusinessVersion: 1
File Type: ResolutionIn Control: City Council
Agenda Number: 21)
Page 1 City of Lake Elsinore Printed on 6/8/2017
REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Grant Yates, City Manager
Prepared by:Jason Simpson, Assistant City Manager
Date:June 13, 2017
Subject:Adoption of the FY2017-18 Annual Operating Budget
Recommendations:
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ADOPTING THE FY2017-18 ANNUAL OPERATING BUDGET AND
ESTABLISHING THE CONTROLS ON CHANGES IN THE APPROPRIATIONS; and,
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, REVISING THE SCHEDULE OF AUTHORIZED POSITIONS; and,
adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ESTABLISHING THE APPROPRIATIONS GANN LIMIT FOR FY2017-18 AND
SELECTING THE POPULATION AND INFLATION FACTOR ACCORDINGLY.
Background
Attached for your review is the Proposed FY2017-18 Annual Operating Budget. The budget
includes revenue projections and expenditure requests for the General Fund, Special Revenue
Funds, Capital Project Funds and Agency Funds. Also presented with this report is the fiscal
year 2017-18 proposed authorized position schedule and the Gann Limit Calculation. The
budget subcommittee has reviewed and discussed the FY2017-18 Annual Operating Budget.
Discussion
Current Condition - State of California – May 2017 Revision Budget (Governor Brown)
Caution and Fiscal Restraint Dominate Governor’s Revised Budget Proposal
No Affordable Housing Funding Proposed; Cap and Trade Outcome Pending
Gov. Jerry Brown held a press conference to unveil his revised FY2017-18 budget
proposal. Despite improved state revenue projections since January, Governor Brown
continued to urge fiscal restraint, and cautioned that the next recession is long overdue.
Concerns also continue over potential changes to federal policies, with an estimated loss
of $4.3 billion annually by 2020, and $18.6 billion by 2027, should the House
Republican’s replacement of the Affordable Health Care Act be enacted.
Adoption of the FY2017-18 Annual Operating Budget
June 13, 2017
Page 2
“Cuts are coming,” warned Governor Brown.
The May Revise budget proposes $183.4 billion in total spending, which includes $124
billion for the state’s General Fund. By the end of FY 2017-18, the Rainy Day Reserve
Fund is projected to have a balance of $8.5 billion, equivalent to 66 percent of the
constitutional target.
No proposed funding for affordable housing is included in the proposal, or any mention
of the policy issues. In response to a reporter’s question, the Governor says he wants
reforms that will lower the cost of construction and increase efficiency before he
considers state investment, but also expressed doubts that a package would come
together. Neither of the brief statements on the budget by Senate Pro Tem Kevin de
León (D-Los Angeles) nor Assembly Speaker Anthony Rendon (D-Lakewood)
mentioned housing.
A major component of the Governor’s May Revise document focused on projected
allocations from recently enacted SB 1, the Road Repair and Accountability Act of 2017,
to address deferred street, road and highway maintenance. The chart below, from that
document, illustrates how the revenues from that measure return the gas tax’s
purchasing power to 1994 levels.
In response to the state’s growing unfunded pension liabilities, the Governor is
proposing a $6 billion additional payment to CalPERS funded by a loan mechanism
developed with the State Treasurer. Under this mechanism, the state would borrow from
state funds currently earning low interest rates in the Treasurer’s Surplus Money
Investment Fund then repay the loan over time. The state projects this loan will save the
state $11 billion over 20 years.
Nothing new was included in the May Revise on Cap-and-Trade. Since January, the
Governor has urged the Legislature to reauthorize the program with a two-thirds vote.
When questioned by a reporter on timing, the Governor was non-committal, while
stressing the benefits of a solution and not ruling out the possibility of obtaining votes
from Republican legislators.
Adoption of the FY 2017-18 Annual Operating Budget
June 13, 2017
Page 3
Projected allocations for K-14 education increased by $1.1 billion due to the
requirements of Proposition 98. Funds for higher education are also included, however,
$50 million was withheld from the University of California (UC) budget until the recent
recommendations from the State Auditor and other UC proposals are implemented.
Details on these and other budget areas of importance to cities are outlined in the
League budget analysis of May Revise attached as Attachment A at the very end of this
staff report package.
General Fund Revenues
The projected General Fund revenues are $43.3 million for fiscal year 2017-18, which reflects a
$1.76 million, or 4.25% increase from fiscal year 2016-17 revenue estimates. General Fund
revenues have increased primarily due to continued growth for the local economy. The most
significant revenue increases are identified below:
•$509,812 in Sales Tax
•$529,962 in Property Tax
•$1,236,077 in Fees/Charges for Services
These increases were offset by some minor revenue reductions in other categories primarily
due to the change in State required building fees, the State reducing certain revenues to local
governments, by the maturation of higher interest bearing investments that had been reinvested
at lower, market interest rates, as well as a reduction in staff recovery costs for financing district
administration. Lastly, the loss of Canyon Lake shared funding of fire costs, due to the
reopening of Station 60, resulted in a decrease of reimbursements by approximately
$1,000,000.
General Fund Expenditures
Overall, the proposed budget of $44.5 million reflects an increase in General Fund expenditures
of $2,169,930 or 5.12% from the fiscal year 2016-17 budget. The primary increases contributing
to this include: 1) increase in Police and Fire personnel cost increases passed through by the
County; 2) negotiated increases for employees and increases in CalPERS retirement rates, and
3) increase in plan check costs (offset by fee revenues) in Planning and Engineering.
The authorized Full Time Equivalent (FTE) positions are proposed to be decreased from the
prior year total of 85 to 84 authorized positions due to elimination of an unfilled office clerical
position. Staff eliminated the GIS Analyst positon and added a Code Enforcement Officer
position to focus enforcement on parks and areas closer to the lake. Additionally, no changes to
the existing 46 part-time positions.
The City has continued to focus on reorganizing department structures in an effort to streamline
processes and enhance efficiencies without reducing essential public services to the
community. The following is a summary of significant items by department in the proposed
Preliminary Annual Operating Budget for FY2017-18:
City Manager: Increased due to reallocation of personnel costs and increase expenditures for
charge for services chargeback to Internal Service Funds.
Administrative Services:Increased due to reallocation of personnel costs and increase
expenditures for charge for services chargeback to Internal Service Funds.
Adoption of the FY2017-18 Annual Operating Budget
June 13, 2017
Page 4
Community Development: Increased due to 1) continued hiring of economic development
consultant; and 2) hiring of additional Code Enforcement Officer that will serve as a Park
Ranger role throughout the City; and 3) continued homeless camp clean-up costs.
Public Safety: Another large increase in contract administration costs passed down from the
County of Riverside for Police and Fire Service costs. The City, along with several other
contract cities, are in the process with studying the feasibility of creating a regional police force
as a way to address rising costs. The overall anticipated costs Staff’s Concerns and Risk
Factors:
Fire Suppression Services (CalFIRE Contract):
A significant impact to the budget was realized when the City of Canyon Lake, with approval of
the County Board of Supervisors, elected to re-open Fire Station 60 with a modified two-man
engine company resulting in no funding of services (compensation to) to the City of Lake
Elsinore resulting in a loss of approximately $1.0 million. Therefore, the County Fire
Department recommended the reduction for one year of one (1) engine company at Station 10
to offset this loss.
Police Services (Sheriff Contract):
The KPMG consultants stressed in their recent report, as well as in their presentation to the
Board in April 2016, that they are recommending the Board of Supervisors approve a resolution
that defines “Baseline Services” and “General Overhead.” Currently, “Baseline” includes all the
services that Contract Cities do not pay for in the Rate (i.e. aviation, swat, etc.). They stated
that no two Counties in California calculate their contract rates the same way, but several have
adopted Resolutions to better define what goes into the rate. While they stated that Riverside’s
Rate Legend is “in line” with how other Counties calculate it, they did not offer any specific
changes to the Rate calculations, other than to adopt this defining resolution. The underlying
tenor and tone is that the County can recoup more costs through a change in this definition,
which is concern of Staff because the County may try to shift costs for services that the County
is required to be provide.
Furthermore, the County has not spoken of any plans to charge new development for their fair
share cost of the PSEC communication system. Staff is concerned because it is estimating 8%
to 10% annual increases for at least the next five years of which 2% is attributable to the PSEC
costs as the County has chosen to pass along this cost to the contract cities through the
operating rate without any discussion of funding strategies. It is perplexing because recovery of
an estimated $250 million investment in a system passed through the operating agreement
rate/budget without any input from contract cities creates further financial challenges to the
City’s resources.
The CEO/Finance Director’s recommendation to the Board will be to hold all Departments
(except for the Sheriff’s Office) flat over the coming 5-years, in order to correct the structural
deficit. They expect the Sheriff’s Office to grow at 8%-10% next year (if labor is held status quo
– no COLAs). There doesn’t seem to be any acknowledgement of the rising CalPERS costs
facing the County over the next several years. If they do not hold department’s flat, they will
exhaust their $220M+ reserve by FY18-19. Furthermore, it appears that an additional $1.5
billion (or more) in CalPERS costs are coming (within the next 5 years) due to the planned
change in discount rate from 7.5% to 7.00%. With latest unfunded accrued liability of their
pension plans at June 30, 2015 of $1.399 billion and $705 million totaling $2.104 billion for
Adoption of the FY 2017-18 Annual Operating Budget
June 13, 2017
Page 5
miscellaneous and safety employees, respectively, the change in actuarial assumptions are
expected to have a dramatic impact on County costs.
Public Services: Increased due to 1) continued hiring of plan check services; and 2) continued
efforts on maintaining the parks and lake.
“Gann” Appropriations Limit
In accordance with Government Section 7910, the City Council is required, on an annual basis,
to adopt by resolution the “Gann” Appropriations Limit. The Appropriations Limit creates a
restriction on the amount of revenue that can be appropriated in any fiscal year. The Limit is
adjusted each year based on the change in population and either the change in non-residential
assessed valuation or the change in California per capita income. The Limit for fiscal year
2016-17 is based on population and nonresidential assessed valuation factors. As the change
in California per capita income is more readily available, it will be used as a factor rather than
the nonresidential assessed valuation change in order to calculate the limit for Fiscal Year 2017-
18.
Using population and per capita personal income data provided by the State Department of
Finance, the City’s Appropriations Limit for FY 2017-18 has been computed to be $94,300,401.
Appropriations subject to the Limit in the proposed FY 2017-18 budget total $27,772,809, which
is $66,527,593 less than the computed limit. Additional appropriations to the budget are funded
by non-tax sources such as service charges, restricted revenues from other agencies, grants, or
beginning fund balances would be unaffected by the Appropriations Limit, however, any
supplemental appropriations funded through increased tax sources could not exceed the
$66,527,593 variance indicated above. Further, any overall actual receipts from tax sources
greater than $666,527,593 from the budget estimates will result in proceeds from taxes in
excess of the City’s Appropriations Limit, requiring refunds of the excess within the next two
fiscal years, or voter approval to increase the City’s Appropriations Limit.
Fiscal Impact
The Proposed Fiscal Year 2017-18 Annual Operating Budget provides a reinvestment of fund
balance resources, in addition to operating revenues, to fund operating expenditures by
$1,333,164 (budget deficit) after the operating transfers. The designation for economic
uncertainty is $7,885,692, an amount equal to 17.5% of General Fund Operating Appropriations
for FY2017-18.
Exhibits
A Resolution Operating Budget
A1 Operating Budget Schedule
B Resolution Authorized Positions
B1 Authorized Position Schedule
C Resolution GANN Limit
C1 GANN Limit Schedule
D League on Governors’ Budget
RESOLUTION NO. 2017- _______
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ADOPTING THE FY 2017-18 ANNUAL OPERATING BUDGET AND
ESTABLISHING THE CONTROLS ON CHANGES IN THE APPROPRIATIONS
Whereas, the City Council (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 (City) 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 Annual Operating Budget is hereby approved and
adopted for the 2017-18 fiscal year as attached per Exhibit A to this Resolution.
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. That the following controls are hereby placed on the use and transfer of budget
appropriations:
(a)No expenditure of funds shall be made unless there is an unencumbered appropriation
available to cover the expenditure.
(b)The Department Director may prepare a transfer of appropriations within departmental
budget accounts, with the approval of the City Manager.
(c)The City Council must authorize transfers (appropriations) of funds from the Unreserved
Fund Balance and transfers between departmental budget accounts.
(d)The City Council must authorize any changes to the Schedule of Authorized Positions.
The City Manager may authorize the hiring of temporary or part-time staff as necessary within
the limits imposed by the controls listed above.
(e)The City Manager may approve change orders on Public Works contracts approved by
the City Council in amounts up to project contingency established by the City Council.
(f)Outstanding encumbrances shown on the City books at June 30, 2017, that are
approved by the City Manager, are hereby appropriated for such contracts or obligations for
FY2017-18.
(g)The City of Lake Elsinore Annual Operating Budget is hereby approved.
CC Reso. No. 2017-
Page 2 of 2
This Resolution shall take effect from and after the date of its passage and adoption.
Passed and Adopted on this 13th day of June, 2017.
______________________________
Robert E. Magee, Mayor
Attest:
_____________________________
Susan Domen, MMC City Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify
that Resolution No. 2017-______ was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of June 13, 2017, and that the same was adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Susan M. Domen, MMC
City Clerk
CITY OF LAKE ELSINORE, CALIFORNIA
SUMMARY OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE
GENERAL FUND
FY2017‐18 PROPOSED ANNUAL OPERATING BUDGET
FY15‐16 ACTUALS
FY16‐17
PROJECTED
FY 17‐18
ADOPTED
$ Variance
Increase
(Decrease)
% Variance
Increase
(Decrease)
Revenues:
Sales Tax 9,939,637$ 9,720,300 10,230,112 509,812 5.24%
Property Tax 6,523,663 7,068,582 7,598,544 529,962 7.50%
Franchise Tax 2,423,707 2,650,200 2,755,808 105,608 3.98%
Building Permit Fee 1,953,331 2,275,000 2,343,250 68,250 3.00%
Property Transfer Tax 327,367 327,656 337,486 9,830 3.00%
Transient Occupancy Tax 487,423 480,000 508,800 28,800 6.00%
Other Licenses & Permits 1,738,911 1,280,561 1,315,326 34,765 2.71%
Intergovernmental 151,526 89,500 92,185 2,685 3.00%
Fees, reimbursements, other 7,720,995 9,382,524 9,665,319 282,795 3.01%
Fines and Forfeitures 546,861 555,600 561,668 6,068 1.09%
Fire Service Tax Credit 2,288,085 2,478,981 2,583,134 104,153 4.20%
Investment Earnings 231,526 105,000 108,150 3,150 3.00%
Special Assessments 3,791,923 3,598,979 3,689,246 90,267 2.51%
Traffic Safety, Offender & Enforce 564,024 734,510 723,665 (10,845) ‐1.48%
Reimbursements for Street Program 798,500 798,500 798,500 ‐ n/a
Total Revenues 39,487,480 41,545,893 43,311,192 1,765,299 4.25%
Expenditures by Department
General Government:
City Council 306,828$ 233,864 227,299 (6,565) ‐2.81%
Community Support 33,534 89,200 92,900 3,700 4.15%
City Treasurer ‐ ‐ ‐ ‐ n/a
City Clerk 432,681 603,973 577,810 (26,163) ‐4.33%
City Attorney 587,691 500,000 500,000 ‐ n/a
City Manager 592,447 758,121 901,293 143,172 18.89%
Administrative Services
Finance 1,355,936 1,736,024 1,518,371 (217,653) ‐12.54%
Human Resources 307,684 293,185 447,149 153,964 52.51%
Public Safety:
Police Services 11,462,439 12,431,410 13,010,246 578,836 4.66%
Fire Services 6,913,288 7,597,637 7,900,281 302,644 3.98%
Animal Services 804,184 839,200 836,640 (2,560) ‐0.31%
Community Development:
Planning 1,176,424 1,243,418 1,214,828 (28,590) ‐2.30%
Building & Safety/Fire Prevention 1,361,712 1,722,026 2,602,499 880,473 51.13%
Code Enforcement/Graffiti 624,055 745,926 962,062 216,136 28.98%
Economic Development 373,533 440,896 278,043 (162,853) ‐36.94%
Public Services:
Engineering Department 2,082,484 1,799,224 2,062,723 263,499 14.65%
Public Works 1,741,231 2,567,218 2,186,487 (380,731) ‐14.83%
Park Maintenance 1,590,228 2,041,631 2,395,377 353,746 17.33%
Lake Maintenance 1,498,080 1,376,069 1,554,841 178,772 12.99%
Community Services:
Recreation 692,706 926,806 674,866 (251,940) ‐27.18%
Community Center 610,588 929,773 1,134,387 204,614 22.01%
Senior Center 246,965 301,844 264,079 (37,765) ‐12.51%
Campground 410,502 482,630 527,777 45,147 9.35%
Non‐Departmental ‐ Operating 2,801,932 2,698,592 2,658,638 (39,954) ‐1.48%
Total Expenditures 38,007,153 42,358,667 44,528,597 2,169,930 5.12%
Excess of Revenues Over
(Under) Expenditures 1,480,327 (812,774) (1,217,405) (404,631) 49.78%
Operating Transfers:
Operating Transfers In ‐ 80,885 416,739 335,854 415.22%
Operating Transfers Out (1,056,361) (260,000) (532,498) (272,498) 104.81%
(1,056,361) (179,115) (115,759) 63,356 ‐35.37%
Excess of Revenues Over
(Under) Expenditures and
Operating Transfers In/(Out)423,966 (991,889) (1,333,164) (341,275) 34.41%
Fund Balance, Beg. of Year 11,970,943 12,394,909 11,403,020
Fund Balance, Beg. of Year 12,394,909$ 11,403,020$ 10,069,856$
CITY OF LAKE ELSINORE, CALIFORNIA
SUMMARY OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE
GENERAL FUND
FY2017‐18 PROPOSED ANNUAL OPERATING BUDGET
Nonspendable:
Deposits and prepaid items 29,015$ 25,000$ 1,034,879$
Due from Successor Agency ‐ ‐
Loans Receivable 1,000,000 1,000,000 1,000,000
Designated:
Uncertainty reserve (17.5%) 6,836,115 7,458,267 7,885,692
Undesignated:
Unallocated reserve 4,529,779 2,919,753 149,286
Total Fund Balance (net) 12,394,909$ 11,403,020$ 10,069,856$
Detail of Fund Balance
CITY OF LAKE ELSINORE, CALIFORNIA
SUMMARY OF REVENUES, EXPENDITURES, AND CHANGE IN FUND BALANCE
CITY WIDE ALL FUNDS SUMMARY ‐ FY2017‐18 PROPOSED ANNUAL OPERATING BUDGET
FUND NAME
PROJECTED
BEGINNING FUND
BALANCE REVENUES APPROPRIATIONS
NET TRANSFERS
IN/(OUT)
PROJECTED
ENDING FUND
BALANCE
FY2017‐18 Adopted Operating Budget
Fund:001 GENERAL FUND 11,403,020$ 43,311,192$ 44,528,597$ (115,759)$ 10,069,856$
Fund: 101 SUPPLEMENTAL LAW ENF. (SLESF) ‐ 100,000 100,000 ‐ ‐
Fund: 104 TRAFFIC OFFENDER FUND ‐ 124,836 124,836 ‐ ‐
Fund: 106 AFFORDABLE HOUSING IN‐LIEU 1,302,001 435,740 12,800 (124,739) 1,600,202
Fund: 107 DEVELOPER AGREEMENT REVENUE 359,489 289,490 ‐ (292,000) 356,979
Fund: 110 STATE GAS TAX FUND (OPER & CIP) 910,715 1,733,220 2,643,935 ‐ ‐
Fund: 115 TRAFFIC SAFETY FUND ‐ 499,035 499,035 ‐ ‐
Fund: 130 CITY‐WIDE LLMD FUND ‐ 1,422,370 1,942,641 520,271 ‐
Fund: 135 LLMD NO. 1 460,817 518,117 530,344 12,227 460,817
Fund: 155 NPDES 115,451 364,580 426,631 ‐ 53,400
Fund: 300 INSURANCE SERVICES 769,421 999,730 993,740 ‐ 775,411
Fund: 305 INFORMATION SYSTEMS SERVICES 191,769 1,141,036 1,132,830 ‐ 199,975
Fund: 310 SUPORT SERVICES 20,051 126,837 119,100 ‐ 27,788
Fund: 315 FLEET SERVICES 508,944 745,434 685,520 ‐ 568,858
Fund: 315 FACILITIES SERVICES 723,668 817,095 461,670 ‐ 1,079,093
Fund: 342 CFD 2007‐5S RED KITE SERVICE AREA FUND ‐ 1,534 1,534 ‐ ‐
Fund: 343 CFD 2006‐2S VISCAYA SERVICES AREA FUND ‐ 51,555 51,555 ‐ ‐
Fund: 344 CFD 2005‐2S ALBERHILL RANCH SERVICE ‐ 142,000 142,000 ‐ ‐
Fund: 367 CFD 2006‐1S SUMMERLY SERVICE AREA 68 171,851 171,919 ‐ ‐
Fund: 373 CFD 2005‐5S WASSON CANYON SERVICE 2,692 58,314 61,006 ‐ ‐
Fund: 650 CFD 2003‐1S LAW, FIRE & PARAMEDIC SVCS ‐ 2,443,729 2,443,729 ‐ ‐
Fund: 651 CFD 2006‐5S PARK, OPEN SPACE & STORM ‐ 83,165 83,165 ‐ ‐
Fund: 652 CFD 2007‐1S LAW, FIRE & PARAMEDIC SVCS ‐ 85,444 85,444 ‐ ‐
Fund: 653 CFD 2009‐1S PARK, OPEN SPACE & STREET ‐ 498,794 498,794 ‐ ‐
Fund: 654 CFD 2003‐2S FIRE TAX SERVICE AREA FUND ‐ 130,292 130,292 ‐ ‐
Fund: 655 CFD 2015‐1S SAFETY SERVICE AREA FUND ‐ 7,500 7,500 ‐ ‐
Fund: 114 SB1186 CAS EDUCATION FUND 5,698 2,500 8,198 ‐ ‐
Fund: 604 ENDOWMENT TRUST FUND 11,347 200 11,547 ‐ ‐
Fund: CFD's/AD's/PFA/LERA 281,131,000 32,888,000 82,357,100 ‐ 231,661,900
SUBTOTALS 297,916,151 89,193,590 140,255,462 ‐ 246,854,279
FY2017‐18 Adopted Capital Budget
Fund: 105 GENERAL PROJECTS (OPER & CIP)664,091 18,363 579,450 1,193,241 1,296,245
Fund: 111 TUMF CAPITAL PROJECT FUND 2,718 8,933,613 8,933,613 ‐ 2,718
Fund: 112 MEASURE 'A' FUND 1,733,908 1,291,300 1,925,565 (495,938) 603,705
Fund: 113 SB821 FUND ‐ 749,015 749,015 ‐ ‐
Fund: 116 CITY HALL/P.W. DIF FUND 1,363,151 190,000 ‐ (1,500,000) 53,151
Fund: 117 COMMUNITY CENTER DIF FUND 524,906 114,610 ‐ (639,516) ‐
Fund: 118 LAKE SIDE FACILITIES DIF FUND 679,325 161,242 16,300 (824,267) ‐
Fund: 119 ANIMAL SHELTER FACILITY DIF FUND 58,304 68,610 ‐ ‐ 126,914
Fund: 121 TOTAL ROAD IMPROVEMENT PRGM (TRIP)3,917,167 1,140 505,498 (3,412,809) ‐
Fund: 140 GEOTHERMAL FUND 20,712 140 100 ‐ 20,752
Fund: 150 CDBG FUND 378,466 330,357 330,357 ‐ 378,466
Fund: 160 PEG GRANT FUND (5,854) 43,890 6,048 ‐ 31,988
Fund: 205 TRAFFIC IMPACT FEE FUND 3,942,567 504,400 9,700 (4,395,293) 41,974
Fund: 211 STORM DRAIN CIP FUND 758,340 503,740 100,000 (262,080) 900,000
Fund: 221 QUIMBY FUND (192,011) 192,011 ‐ ‐ ‐
Fund: 231 LIBRARY CIP DIF FUND 1,739,748 82,860 20,000 (1,802,608) ‐
Fund: 232 FIRE PROTECTION DIF FUND ‐ 150,120 ‐ (100,000) 50,120
Fund: 400 LE FINANCING AUTHORITY FUND 9,605,420 101,600 ‐ (9,707,020) ‐
Fund: 500 CAPITAL IMPROVEMENT PLAN FUND 3,798,191 7,213,980 7,755,179 20,964,390 24,221,382
Fund: 510 SARDA AREA 1 FUND (8,882,992) 3,031,044 3,524,024 ‐ (9,375,972)
Fund: 520 SARDA AREA 2 FUND 346,386 3,855,197 3,360,986 ‐ 840,597
Fund: 530 SARDA AREA 3 FUND (1,300,000) 1,564,108 1,809,926 ‐ (1,545,818)
Fund: 540 SARDA DIAMOND STADIUM FUND 3,909,789 690,211 4,600,000 ‐ ‐
Fund: 605 PUBLIC IMPROVEMENTS IN‐LIEU FUND 782,466 33,700 ‐ (161,015) 655,151
Fund: 606 AB2766 AIR POLLUTION REDUCTION FUND 282,135 80,950 6,000 (357,085) ‐
Fund: 608 TRUST DEPOSITS FUND ‐ ‐ ‐ 1,500,000 1,500,000
Fund: 617 SARDA HOUSING FUND 42,249,180 130,000 480,000 ‐ 41,899,180
Fund: 630 LAKE MAINTENANCE FUND 559,028 1,501,000 1,600,000 ‐ 460,028
Fund: 631 DESTRATIFICATION EQUIPMENT REPLACEMENT 232,093 150,000 380,000 ‐ 2,093
SUBTOTALS 67,167,234 31,687,201 36,691,761 ‐ 62,162,674
TOTALS 365,083,385$ 120,880,791$ 176,947,223$ ‐$ 309,016,953$
RESOLUTION NO. 2017-__________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, REVISING THE SCHEDULE OF AUTHORIZED POSITIONS
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 Council, pursuant to Section 4501 of the California Government Code, has a
policy of adopting a schedule of authorized positions for each fiscal year; and,
Whereas, the City Council has a policy of promoting transparency and adopting a schedule of
authorized positions for each fiscal year so that CalPERS may verify payrates in accordance
with publically available salary schedules.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The Schedule of Authorized Positions, attached hereto, Exhibit A is hereby adopted
pursuant to Section 4501 of the California Government Code.
Section 2.The Schedule of Authorized Positions shall become effective July 1, 2017, and may
be, thereafter, amended.
Section 3.The City Manager shall implement the attached Schedule of Authorized Positions
and has the authority to select and appoint employees in accordance with the City’s personnel
policies.
Section 4.All prior resolutions in conflict with this Resolution are hereby rescinded.
Section 5.The City Clerk shall certify to the adoption of this Resolution and enter it into the
book of original Resolutions.
Passed and Adopted on this 13th day of June, 2017.
______________________________
Robert E. Magee, Mayor
Attest:
_____________________________
Susan M. Domen, MMC City Clerk
CC Reso. No. 2017-
Page 2 of 2
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify
that Resolution No. 2017-_______ was adopted by the City Council of the City of Lake Elsinore,
California, at the Regular meeting of June 13, 2017, and that the same was adopted by the
following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Susan M. Domen, MMC
City Clerk
AUTHORIZED
FY2016‐17 CHANGES AUTHORIZED
FY2017‐18
MONTHLY
LOW RANGE
MONTHLY
HIGH RANGE
CITY COUNCIL
Council Member 5.00 ‐ 5.00 400.00$ 400.00$
CITY TREASURER
City Treasurer 1.00 ‐ 1.00
CITY CLERK
City Clerk 1.00 ‐ 1.00 10,276.90$ 13,116.20$
Deputy City Clerk 1.00 ‐ 1.00 4,426.66$ 5,649.71$
Office Specialist II 1.00 ‐ 1.00 2,820.15$ 3,599.32$
Total 3.00 ‐ 3.00
CITY MANAGER
City Manager 1.00 ‐ 1.00 15,000.01$ 19,687.51$
Executive Assistant II 1.00 ‐ 1.00 4,426.66$ 5,649.71$
Assistant City Manager 0.50 ‐ 0.50 14,427.75$ 18,413.86$
Senior Management Analyst 1.00 ‐ 1.00 6,918.15$ 8,829.51$
Total 3.50 ‐ 3.50
ADMINISTRATIVE SERVICES
FINANCE
Assistant City Manager 0.50 ‐ 0.50 14,427.75$ 18,413.86$
Executive Assistant I 1.00 ‐ 1.00 4,426.66$ 5,649.71$
Finance Manager 1.00 (0.67) 0.33 8,897.75$ 11,356.02$
Finance Administrator 1.00 ‐ 1.00 7,675.63$ 9,796.18$
Fiscal Officer 1.00 ‐ 1.00 7,107.50$ 9,071.19$
Accountant I 2.00 ‐ 2.00 4,157.85$ 5,306.58$
Account Specialist II 3.00 (1.00) 2.00 3,170.65$ 4,653.69$
Total 9.50 (1.67) 7.83
HUMAN RESOURCES
Finance Manager ‐ 0.33 0.33 8,897.75$ 11,356.02$
Human Resources Analyst 1.00 ‐ 1.00 5,260.23$ 6,713.55$
Human Resources Specialist 1.00 ‐ 1.00 4,395.11$ 5,609.45$
Total 2.00 0.33 2.33
COMMUNITY DEVELOPMENT
PLANNING COMMISSION
Planning Commissioner ‐ PT 5.00 ‐ 5.00 100.00$ 100.00$
PLANNING & ZONING
Director of Community Development 1.00 (0.60) 0.40 10,276.90$ 13,116.20$
Planning Manager 1.00 ‐ 1.00 8,897.75$ 11,356.02$
Principal Planner 1.00 ‐ 1.00 7,107.50$ 9,071.19$
Project Analyst ‐ PT ‐ 1.00 1.00 $25 per hour $55 per hour
Senior Planner 1.00 ‐ 1.00 6,728.77$ 8,587.77$
Associate Planner 1.00 ‐ 1.00 5,594.30$ 7,139.93$
Community Development Technician 1.00 ‐ 1.00 4,157.85$ 5,306.58$
Office Specialist III 1.00 ‐ 1.00 3,646.27$ 4,653.69$
Total 7.00 0.40 7.40
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF AUTHORIZED POSITIONS
ANNUAL OPERATING BUDGET ‐ FY2017‐18
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF AUTHORIZED POSITIONS
ANNUAL OPERATING BUDGET ‐ FY2017‐18
COMMUNITY DEVELOPMENT (cont.)AUTHORIZED
FY2016‐17 CHANGES AUTHORIZED
FY2017‐18
MONTHLY
LOW RANGE
MONTHLY
HIGH RANGE
BUILDING & SAFETY
Director of Community Development ‐ 0.50 0.50 10,276.90$ 13,116.20$
Building & Safety Manager 1.00 ‐ 1.00 8,897.75$ 11,356.02$
Building Inspector 2.00 ‐ 2.00 4,677.00$ 5,969.20$
Building Inspector ‐ PT 1.00 1.00 $26.20 per hour $33.43 per hour
Senior Community Development
Technician 1.00 ‐ 1.00 5,260.23$ 6,713.55$
Community Development Technician 1.00 ‐ 1.00 4,157.85$ 5,306.58$
Office Specialist III 1.00 ‐ 1.00 3,646.27$ 4,653.69$
Total 7.00 0.50 7.50
CODE ENFORCEMENT
Director of Community Development ‐ 0.05 0.05 10,276.90$ 13,116.20$
Code Enforcement Administrator 1.00 ‐ 1.00 7,675.63$ 9,796.18$
Code Enforcement Officer II
(Unfunded)2.00 ‐ 2.00 4,426.66$ 5,649.71$
Code Enforcement Officer I 2.00 1.00 3.00 3,821.51$ 4,877.37$
Community Development
Technician II 1.00 ‐ 1.00 4,677.00$ 5,969.20$
Total 6.00 1.05 7.05
ECONOMIC DEVELOPMENT
Director of Community Development ‐ 0.05 0.05 10,276.90$ 13,116.20$
GIS Analyst 1.00 (1.00) ‐ 5,594.30$ 7,139.93$
Total 1.00 (0.95) 0.05
GRAFFITI
Graffiti Technician 1.00 ‐ 1.00 3,370.88$ 4,302.22$
PUBLIC SERVICES
ENGINEERING
City Engineer 1.00 ‐ 1.00 10,276.90$ 13,116.20$
Senior Civil Engineer 2.00 ‐ 2.00 7,107.50$ 9,071.19$
Engineering Inspector 2.00 ‐ 2.00 5,876.50$ 7,500.09$
Senior Engineer Technician 3.00 ‐ 3.00 5,260.23$ 6,713.54$
Office Specialist II ‐ PT 1.00 1.00 2,820.15$ 3,599.31$
Total 9.00 ‐ 9.00
PUBLIC WORKS ADMINISTRATION
General Services Manager 1.00 ‐ 1.00 8,897.76$ 11,356.02$
Public Works Superintendent 1.00 ‐ 1.00 8,304.82$ 10,599.29$
Public Works Supervisor 1.00 ‐ 1.00 5,594.31$ 7,139.91$
Equipment Operator 2.00 (1.00) 1.00 4,157.84$ 5,306.60$
Maintenance Worker II 2.00 (1.00) 1.00 3,370.89$ 4,302.25$
Maintenance Worker I 4.00 ‐ 4.00 2,943.18$ 3,756.27$
Maintenance Worker I (Unfunded)2.00 ‐ 2.00 2,943.18$ 3,756.27$
Administrative Assistant 1.00 ‐ 1.00 4,157.84$ 5,306.60$
Office Assistant (PT) (Unfunded)1.00 (1.00) ‐ 2,452.27$ 3,129.81$
Office Specialist III 1.00 ‐ 1.00 3,646.28$ 4,653.69$
Total 16.00 (3.00) 13.00
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF AUTHORIZED POSITIONS
ANNUAL OPERATING BUDGET ‐ FY2017‐18
PUBLIC SERVICES (cont.)AUTHORIZED
FY2016‐17 CHANGES AUTHORIZED
FY2017‐18
MONTHLY
LOW RANGE
MONTHLY
HIGH RANGE
PARKS MAINTENANCE
Senior Lead Worker 1.00 ‐ 1.00 5,025.98$ 6,414.59$
Equipment Operator ‐ 1.00 1.00 4,157.84$ 5,306.60$
Maintenance Worker II 1.00 2.00 3.00 3,370.89$ 4,302.25$
Maintenance Worker I 5.00 (1.00) 4.00 2,943.18$ 3,756.27$
Total 7.00 2.00 9.00
LAKE SERVICES
LAKE MAINTENANCE
Maintenance Worker I 1.00 ‐ 1.00 2,943.18$ 3,756.27$
Maintenance Worker II 1.00 ‐ 1.00 3,370.89$ 4,302.25$
Total 2.00 ‐ 2.00
COMMUNITY SERVICES
ADMINISTRATION
Director of Community Services 1.00 ‐ 1.00 10,276.90$ 13,116.20$
Management Analyst 1.00 ‐ 1.00 6,015.79$ 7,677.90$
Project Analyst ‐ PT 1.00 (1.00) ‐ $25 per hour $55 per hour
Special Events Coordinator 1.00 (1.00) ‐ 4,426.66$ 5,649.71$
Volunteer Coordinator ‐ PT 1.00 1.00 2,598.75$ 3,158.81$
Office Specialist III 1.00 ‐ 1.00 3,646.28$ 4,653.69$
Total 6.00 (2.00) 4.00
RECREATION
Recreation Supervisor 1.00 ‐ 1.00 5,594.31$ 7,139.91$
Special Events Coordinator ‐ 1.00 1.00 4,426.66$ 5,649.71$
Recreation Aide ‐ PT 11.00 ‐ 11.00 1,733.33$ 2,212.24$
Recreation Specialist ‐ PT 2.00 ‐ 2.00 2,167.27$ 2,634.34$
Recreation Leader ‐ PT 5.00 ‐ 5.00 1,864.39$ 2,271.59$
Water Safety Instructor ‐ PT 10.00 ‐ 10.00 2,167.27$ 2,634.34$
Total 29.00 1.00 30.00
SENIOR CENTER
Community Services Coordinator 1.00 ‐ 1.00 4,426.66$ 5,932.20$
Recreation Specialist ‐ PT 1.00 ‐ 1.00 2,167.27$ 2,634.34$
Recreation Leader ‐ PT 2.00 (1.00) 1.00 1,864.39$ 2,271.59$
Recreation Aide ‐ PT ‐ 1.00 1.00 1,733.33$ 2,212.24$
Total 4.00 ‐ 4.00
CAMPGROUND
Recreation Leader ‐ PT 1.00 ‐ 1.00 1,864.39$ 2,271.59$
Total 1.00 ‐ 1.00
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF AUTHORIZED POSITIONS
ANNUAL OPERATING BUDGET ‐ FY2017‐18
AUTHORIZED
FY2016‐17 CHANGES AUTHORIZED
FY2017‐18
MONTHLY
LOW RANGE
MONTHLY
HIGH RANGE
INTERNAL SERVICES
RISK
Finance Manager ‐ 0.34 0.34 8,897.75$ 11,356.02$
INFORMATION TECHNOLOGY
Information Technology Manager 1.00 ‐ 1.00 8,897.76$ 11,356.02$
Information Technician I 1.00 ‐ 1.00 4,157.85$ 5,306.60$
Business Process Analyst 1.00 ‐ 1.00 6,918.15$ 8,829.51$
Information Technology Database
Analyst 1.00 ‐ 1.00 6,918.15$ 8,829.51$
Total 4.00 ‐ 4.00
FLEET
Chief Mechanic 1.00 ‐ 1.00 5,594.31$ 7,139.91$
Mechanic 1.00 ‐ 1.00 3,370.89$ 4,302.25$
Total 2.00 ‐ 2.00
FACILITY MAINTENANCE
Maintenance Worker II 1.00 ‐ 1.00 3,370.89$ 4,302.25$
Totals 132.00 (2.00) 130.00
RESOLUTION NO. 2017-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ESTABLISHING THE APPROPRIATIONS GANN LIMIT FOR FY
2017-18 AND SELECTING THE POPULATION AND INFLATION FACTOR
ACCORDINGLY
Whereas, Proposition 4, the "Gann Limit" Initiative, was approved by voters on November 6,
1979 in a statewide special election ballot as an initiated constitutional amendment which would
limit the growth in appropriations made by the state and individual local governments. The limit
in the rate of growth is the percentage increase in the cost of living and the percentage increase
in the state or local government's population. Require state and local governments to return any
funds to taxpayers in excess of the amount appropriated for a given fiscal year. Require the
state to reimburse local governments for the cost of complying with statemandates.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The Appropriations Limit will be calculated based on the changes in City population
and California per capita personal income.
Section 2.The Appropriations Limit for the City of Lake Elsinore for FY 2017-18, attached
hereto, (Exhibit A) is hereby adopted.
Section 3.That the City Clerk shall certify to the passage and adoption of this Resolution.
Passed and Adopted on this 13th day of June, 2017.
Robert E. Magee, Mayor
Attest:
Susan M. Domen, MMC
City Clerk
STATE OF CALIFORNIA )
COUNTYOF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, Susan M. Domen, MMC, City Clerk of the City of Lake Elsinore, California, do hereby certify
that Resolution No. 2017-was adopted by the City Council of the City of Lake
Elsinore, California, at the Regular meeting of June 13, 2017, and that the same was adopted
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Susan M. Domen, MMC
City Clerk
EXHIBIT A
CITY OF LAKE ELSINORE
APPROPRIATIONS (GANN) LIMIT
PROCEEDS OF TAXCALCULATION
FISCAL YEAR2017-18
REVENUE SOURCE
TAXES
BUDGETED
PROCEEDS
OF TAX
BUDGETED
NON-PROCEEDS
OF TAX
TOTAL
REVENUE
Sales (1)$10,230,112 $10,230,112
Property (2)7,599,044 7,599,044
Property Transfer Tax 337,486 337,486
Franchise Tax 2,755,808 2,755,808
Other Tax 508,800 508,800
Fire Tax Credit 2,583,134 2,583,134
Special Assessments 3,687,624 3,687,624
FEES
Fees, Licenses & Permits $9,038,000 $9,038,000
Intergovernmental 217,935 217,935
Fines & Forfeitures 1,216,491 1,216,491
Reimbursements 3,075,121 3,075,121
Other 1,887,632 1,887,632
Total 27,702,007 15,435,179 $43,137,186
% of Total 64.22%35.78%100.00%
Investment Earnings $70,801 $39,449 $110,251
Adjusted Total 27,772,809 15,474,628 $43,247,437
Revenues are based on FY 2017-18 Proposed Budget.
Notes:
(1)Includes PropertyTax In-Lieu of Sales Tax
(2)Includes PropertyTax In-Lieu of Vehicle License Fees and Parcel Tax
EXHIBIT B
CITY OF LAKE ELSINORE
APPROPRIATIONS (GANN) LIMIT
FISCAL YEAR 2017-18
APPROPRIATIONS SUBJECT TO THE LIMIT
FY 2017-18 Total Revenue*$43,247,437
Less Non-Proceeds of Tax 15,474,628
A) Total Appropriations Subject to the Limit $27,772,809
APPROPRIATIONS LIMIT
B) FY 2016-17 Appropriations Limit 86,752,899
C) Change Factor**% Increase Factor
Cost of Living Adjustment - CPI 3.69 1.0369
Population Adjustment - PA 2.00 1.0200
Change Factor (CPI x PA)1.0576
D) Increase (decrease) in Appropriations Limit $7,547,502
E) FY 2017-18 Appropriations Limit (B x C)$94,300,401
REMAINING APPROPRIATIONS CAPACITY
(E - A)$66,527,593
Remaining Capacity as Percent of the FY 2017-18
Appropriations Limit 70.55%
*Revenues are based on FY 2017-18 Proposed Budget.
** State Department of Finance
Percent of Change in California Per Capita Income
Percent of Change in City of Lake Elsinore Population
EXHIBIT C
CITY OF LAKE ELSINORE
SUMMARY OF ANNUAL APPROPRIATION (GANN) LIMITS
COST OF APPROPRIATIONS
FISCAL LIVING POPULATION APPROPRIATIONS SUBJECT TO REMAINING
YEAR CHANGE LIMIT LIMIT LIMIT CAPACITY
2009-10 0.62%1.43%$61,354,225 $-$61,354,225
2010-11 -2.54%1.31%$60,579,153 $-$60,579,153
2011-12 2.51%2.06%$63,378,943 $28,740,639 $34,638,304
2012-13 3.77%1.40%$66,689,086 $30,767,943 $35,921,143
2013-14 5.12%4.24%$73,075,959 $34,802,791 $38,273,168
2014-15 3.77%2.30%$74,581,324 $23,076,212 $51,505,112
2015-16 3.82%3.07%$79,809,475 $24,438,621 $55,370,854
2016-17 5.37%3.16%$86,752,899 $25,958,879 $60,794,020
2017-18 3.69%2.00%$94,300,401 $27,772,809 $66,527,593
EXHIBIT A
CITY OF LAKE ELSINORE
APPROPRIATIONS (GANN) LIMIT
PROCEEDS OF TAX CALCULATION
BUDGETED BUDGETED
PROCEEDS NON-PROCEEDS TOTAL
REVENUE SOURCE OF TAX OF TAX REVENUE
TAXES
Sales (1)10,230,112$ 10,230,112$
Property (2)7,599,044 7,599,044
Property Transfer Tax 337,486 337,486
Franchise Tax 2,755,808 2,755,808
Other Tax 508,800 508,800
Fire Tax Credit 2,583,134 2,583,134
Special Assessments 3,687,624 3,687,624
FEES
Fees, Licenses & Permits 9,038,000$ 9,038,000$
Intergovernmental 217,935 217,935
Fines & Forfeitures 1,216,491 1,216,491
Reimbursements 3,075,121 3,075,121
Other 1,887,632 1,887,632
Total 27,702,007 15,435,179 43,137,186$
% of Total 64.22%35.78%100.00%
Investment Earnings 70,801$ 39,449$ 110,251$
Adjusted Total 27,772,809 15,474,628 43,247,437$
Revenues are based on FY 2017-18 Proposed Budget.
Notes:
(1)Includes Property Tax In-Lieu of Sales Tax
(2)Includes Property Tax In-Lieu of Vehicle License Fees and Parcel Tax
FISCAL YEAR 2017-18
EXHIBIT B
APPROPRIATIONS SUBJECT TO THE LIMIT
FY 2017-18 Total Revenue*43,247,437$
Less Non-Proceeds of Tax 15,474,628
A) Total Appropriations Subject to the Limit 27,772,809$
APPROPRIATIONS LIMIT
B) FY 2016-17 Appropriations Limit 86,752,899
C) Change Factor**% Increase Factor
Cost of Living Adjustment - CPI 3.69 1.0369
Population Adjustment - PA 2.00 1.0200
Change Factor (CPI x PA)1.0576
D) Increase (decrease) in Appropriations Limit 7,547,502$
E) FY 2017-18 Appropriations Limit (B x C)94,300,401$
REMAINING APPROPRIATIONS CAPACITY
(E - A)66,527,593$
Remaining Capacity as Percent of the FY 2017-18
Appropriations Limit 70.55%
*Revenues are based on FY 2017-18 Proposed Budget.
** State Department of Finance
Percent of Change in California Per Capita Income
Percent of Change in City of Lake Elsinore Population
CITY OF LAKE ELSINORE
APPROPRIATIONS (GANN) LIMIT
FISCAL YEAR 2017-18
EXHIBIT C
COST OF APPROPRIATIONS
FISCAL LIVING POPULATION APPROPRIATIONS SUBJECT TO REMAINING
YEAR CHANGE LIMIT LIMIT LIMIT CAPACITY
2009-10 0.62%1.43%61,354,225$ -$ 61,354,225$
2010-11 -2.54%1.31%60,579,153$ -$ 60,579,153$
2011-12 2.51%2.06%63,378,943$ 28,740,639$ 34,638,304$
2012-13 3.77%1.40%66,689,086$ 30,767,943$ 35,921,143$
2013-14 5.12%4.24%73,075,959$ 34,802,791$ 38,273,168$
2014-15 3.77%2.30%74,581,324$ 23,076,212$ 51,505,112$
2015-16 3.82%3.07%79,809,475$ 24,438,621$ 55,370,854$
2016-17 5.37%3.16%86,752,899$ 25,958,879$ 60,794,020$
2017-18 3.69%2.00%94,300,401$ 27,772,809$ 66,527,593$
CITY OF LAKE ELSINORE
SUMMARY OF ANNUAL APPROPRIATION (GANN) LIMITS
League budget analysis of May Revise:
Caution and Fiscal Restraint Dominate Governor’s Revised Budget Proposal
1
Caution and Fiscal Restraint Dominate Governor’s Revised Budget Proposal
No Affordable Housing Funding Proposed; Cap and Trade Outcome Pending
Gov. Jerry Brown held a press conference to unveil his revised FY 2017-18 budget
proposal. Despite improved state revenue projections since January, Governor Brown continued
to urge fiscal restraint, and cautioned that the next recession is long overdue. Concerns also
continue over potential changes to federal policies, with an estimated loss of $4.3 billion annually
by 2020, and $18.6 billion by 2027, should the House Republican’s replacement of the Affordable
Health Care Act be enacted.
“Cuts are coming,” warned Governor Brown.
The May Revise budget proposes $183.4 billion in total spending, which includes $124 billion for
the state’s General Fund. By the end of FY 2017-18, the Rainy Day Reserve Fund is projected to
have a balance of $8.5 billion, equivalent to 66 percent of the constitutional target.
No proposed funding for affordable housing is included in the proposal, or any mention of the
policy issues. In response to a reporter’s question, the Governor says he wants reforms that will
lower the cost of construction and increase efficiency before he considers state investment, but
also expressed doubts that a package would come together. Neither of the brief statements on
the budget by Senate Pro Tem Kevin de León (D-Los Angeles) nor Assembly Speaker Anthony
Rendon (D-Lakewood) mentioned housing.
A major component of the Governor’s May Revise document focused on projected allocations
from recently enacted SB 1, the Road Repair and Accountability Act of 2017, to address deferred
street, road and highway maintenance. The chart below, from that document, illustrates how the
revenues from that measure return the gas tax’s purchasing power to 1994 levels.
League budget analysis of May Revise:
Caution and Fiscal Restraint Dominate Governor’s Revised Budget Proposal
2
In response to the state’s growing unfunded pension liabilities, the Governor is proposing a $6
billion additional payment to CalPERS funded by a loan mechanism developed with the State
Treasurer. Under this mechanism, the state would borrow from state funds currently earning low
interest rates in the Treasurer’s Surplus Money Investment Fund then repay the loan over time.
The state projects this loan will save the state $11 billion over 20 years.
Nothing new was included in the May Revise on Cap-and-Trade. Since January, the Governor
has urged the Legislature to reauthorize the program with a two-thirds vote. When questioned by
a reporter on timing, the Governor was non-committal, while stressing the benefits of a solution
and not ruling out the possibility of obtaining votes from Republican legislators.
Projected allocations for K-14 education increased by $1.1 billion due to the requirements of
Proposition 98. Funds for higher education are also included, however, $50 million was withheld
from the University of California (UC) budget until the recent recommendations from the State
Auditor and other UC proposals are implemented.
Details on these and other budget areas of importance to cities are outlined below.
Transportation Funding
On April 28, the Governor signed SB 1 (Beall), a historic transportation funding plan of $54 billion
over the next decade. The Governor’s May Revision includes the first $2.8 billion in FY 17-18
appropriations for:
“Fix-it-first” investments for local streets and roads, bridges, and the state highway system.
Trade corridor investments, including funding to implement a sustainable freight strategy.
State-local match funds for high-priority transportation projects.
Passenger rail and public transit modernization/improvements.
Funds are allocated under the Road Maintenance and Rehabilitation Account as follows:
Local allocations
$445 million for local streets and roads (divided equally between cities and counties).
o For cities, the amount in FY 17-18 is $222 million distributed to cities on a per
capita basis (population based).
$330 million for the Transit and Intercity Rail Program (TIRCP).
$305 million for the State Transit Assistance program (STA).
$200 million for the State-Local Partnership Program (SLPP).
$100 million for the Active Transportation Program (ATP).
$25 million for Local Planning Grants.
State allocations
$445 million for the State Highway Operations and Protection Program (SHOPP).
$400 million for bridges and culverts.
$250 million for congested corridors.
$200 million for trade corridor enhancement.
$54 million for the Department of Parks and Recreation.
$25 million for Freeway Service Patrol.
$17 million for the Department of Food and Agriculture.
League budget analysis of May Revise:
Caution and Fiscal Restraint Dominate Governor’s Revised Budget Proposal
3
$7 million for transportation research at the CSU and UC.
$5 million for the Workforce Development Board.
$4 million for administration (including the State Controller’s Office, the California
Transportation Commission (CTC), and $3.8 million for DMV).
The $2.8 billion in FY 2017-18 is generated from:
$727 million from the tiered Transportation Improvement Fee ($25-$175 depending on
value of the vehicle).
$1.25 billion from restoring gas tax purchasing power to 1994 levels (12 cent increase in
the base gasoline excise tax).
$600 million from the diesel sales and excise tax increases (11 cent increase in the diesel
excise tax and an additional 4 percent in the diesel sales tax).
$235 million from general fund loan repayments.
In addition to providing transportation funding for local streets and roads, bridges, the state
highway system, transit, active transportation, trade corridors, congestion management, self-help
municipalities, intercity rail, transportation research, and freeway patrols, the measure also
included a series of reforms, such as:
Creation of the Office of Transportation Inspector General, whom would have audit and
investigatory oversight authority over Caltrans.
Establishment of the State Highway Performance Plan to create measurable targets for
improvements and reporting requirements to the CTC and Legislature.
Creation of the Advanced Mitigation Program to get early permitting approval for
transportation projects to help prevent delays and strategically mitigate environmental
impacts.
Additional CTC oversight for each phase of the State’s project delivery.
Constitutional protection in ACA 5 (Frazier), which would go before the voters in the June,
2018, general statewide election to ensure the revenues are dedicated to transportation.
For local streets and roads, it’s important to note that the $445 million in direct subventions to
cities and counties in FY 2017-18 is reflective of partial year funding for the first year of the
transportation deal. In the first full fiscal year (FY 20 18-19) $1.1 billion will be allocated for local
streets and roads, divided equally between cities and counties. An additional $75 million split
between cities and counties will be made available for loan repayments.
An additional detailed explanation of the transportation funding deal and city-by-city local streets
and roads estimates is available online for FY’s 2016-17, 2017-18 and 2018-19.
Housing
Unfortunately, like the January budget proposal, the May Revise does not include a meaningful
funding proposal for affordable housing. The only mention of housing is contained in sections
reporting various economic data, which projects housing supply to remain lower than needed to
accommodate population growth through 2018. Curiously, however, in numerical tables that
compare national economic trends versus California, housing permit issuance data reveals that
California is actually recovering faster than the nation as a whole. Between 2012 through 2016,
the level of housing permits issued nationwide grew from 830,000 to 1.19 million, an increase of
31 percent. In California, however, over the same period, housing permits grew from 59,000 to
100,000, an increase of 41 percent. While California debates its housing policies, such national
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trends may reflect larger economic undercurrents affecting housing production since the
recession.
The Governor’s January budget outlined his desired reform as follows:
Streamline Housing Construction. Reduce local barriers to limit delays and duplicative
reviews, maximize the impact of all public investments, and temper rents through housing
supply increases.
Lower Per-Unit Costs. Reduce permit and construction policies that drive up unit costs.
Production Incentives. Those jurisdictions that meet or exceed housing goals, including
affordable housing, should be rewarded with funding and other regulatory benefits. Those
jurisdictions that do not build enough to increase production should be encouraged by
tying housing construction to other infrastructure-related investments.
Accountability and Enforcement. Compliance with existing laws such as the housing
element should be strengthened.
No Impact to the General Fund. No new costs, or cost pressures, can be added to the
state’s General Fund, if new funding commitments are to be considered. Any permanent
source of funding should be connected to these other reforms.
Transitional Housing
The 2016 Budget allocated $25 million for the Community Based Transitional Housing Program,
which encourages cities and counties to support transitional housing that provides treatment and
reentry programming to offenders released from the criminal justice system, and to any other
persons who the applicant city or county believes may benefit. The applicant must partner with a
private entity, either for-profit or nonprofit, to operate the transitional housing facility and provide
a slate of statutorily prescribed services. While there has been interest in this program, its
regulations were viewed as overly cumbersome.
The May Revision broadens the purposes for which cities and counties may use their program
funds based on feedback from many potential applicants.
The proposed statutory changes do the following:
Allow cities and counties to provide a portion of their program funds to the facility operator,
if the facility operator agrees to use those funds for facility operations and services to
residents. There is no limit on the amount the city or county may provide the facility
operator.
Allow cities and counties to use program funds for other purposes that their governing
boards determine are in furtherance of the program’s goals as long as the proposed uses
are specified in the application.
California Department of Corrections and Rehabilitation (CDCR)
The May Revise provides total funding of $11.4 billion; $11.1 billion General Fund and $308 million
from other sources.
Since January, changes in the adult inmate and parolee population have resulted in decreases of
$29.4 million General Fund in FY 2016-17; and further decreases of $21.3 million General Fund
in FY 2017-18. As of May 3, the prison population was at 135.0 percent of capacity, below the
court-ordered population cap of 137.5 percent — this is attributable to population reduction
measures and new bed and programming space. The average daily inmate population
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projections are for an increase of 260 inmates for a total of 129,275 in FY 2016-17, and a decrease
of 466 inmates to 127,693 in 2017-18. The May Revise includes $34.9 million for rehabilitation of
CDCR roof structures due to record rainfall
Average daily parolee population projections are projected to increase from 44,445 in FY 2016-
17 to 47,274 in FY 2017-18.
Proposition 57 and 47 Implementation:
While policy debates continue over these two propositions which result in inmates being released
earlier than otherwise and altering the prior definitions of crimes, the implementation of these
measures continue to reduce the state’s prison population and the influx of new inmates into the
prison system.
Population Reduction: The Governor’s January Budget assumed an average daily inmate
population reduction of 1,959 inmates in FY 2017-18. The May Revise, however, reflects
accelerated implementation dates proposed in emergency regulations and increases the
projected population reduction to 2,675 in FY 2017-18, growing to 11,500 in 2020-21. If
these figures hold, it will CDCR to remove all inmates from one of the two remaining out-
of-state facilities in FY 2017-18, and the second facility beginning in January 2018. The
net savings from these changes is projected to grow to $186 million in FY 2020-21.
Timing:
o November, 2016: Juvenile Justice provisions (assigning judges responsibility to
decide whether minors should be charged as adults) went into effect immediately
upon the passage of Proposition 57.
o May 1: implementation of Good Conduct Credits began.
o July 1: new parole consideration process for non-violent offenders (requiring
inmates to serve 100 percent of their base sentence, but no time for sentencing
enhancements before being eligible to appear before the Board of Parole
Hearings).
o August 1: Milestone Completion, Rehabilitative Achievement, and Educational
Merit Credits (time off for active efforts to participate in and complete rehabilitation
and educational programs) begins.
Funding: $6.7 million is allocated for implementation, including $1 million augmentation
for more case records staff to review and process inmate records related to new credit
earning structure and parole process.
Proposition 47
This initiative’s re-classification of certain felony offenses to misdemeanors is expected to reduce
adult inmate population by 4,425 in FY 2016-17, based on avoided new admissions to state
correctional facilities. This change is expected to yield a savings of $45.6 million in FY 2017-18.
Post Release Community Supervision
May Revise includes $15.4 million General Fund for county probation departments to supervise
increased offenders released with a condition of Post Release Community Supervision. This is
an increase of $4.4 million over the amount allocated in the Governor’s January Budget based on
Prop. 57’s accelerated implementation dates.
Cannabis Regulation
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The Governor’s January Budget appropriated $52.2 million for cannabis regulation. The May
Revise appropriates an additional $43.2 million for cannabis programs across all state entities,
for a total of $95.4 million.
Funded activities include:
Initial development of regulations.
Development of licensing and track-and-trace programs.
Development of standards for pesticide use in cannabis cultivation.
Programs to protect instream flows from water diversion.
Studying health risks associated with cannabis use.
Individual agency allocations are as follows:
$11.3 million to Bureau of Cannabis Control within Dept. of Consumer Affairs for regulation
and licensing.
$4.6 million to Office of Manufactured Cannabis Safety within Dept. of Public Health.
$5.0 million to Department of Health Care Services for a public information program,
including education and prevention.
$13.7 million to Department of Fish and Wildlife for water quality and instream flows;
$7.2 million to the State Water Resources Control Board for the Cannabis Cultivation
Waste Discharge Regulatory program.
$700,000 to the Department of Pesticide Regulation for cannabis pesticide regulation and
enforcement.
$1.1 million to the Board of Equalization for tax collection.
$8.6 million to the Department of Food and Agriculture for cultivation licensing.
Funding Adjustments are being made as follows:
Department of Fish and Wildlife: $17.2 million from multiple fund sources for 63 positions
supporting regulatory programs in the Dept. of Food and Agriculture and the State Water
Resources Control Board.
State Water Resources Control Board: $9.8 million from multiple fund sources for 65
positions statewide water quality permit and related regulations.
Department of Pesticide Regulation: $1.3 million for the Cannabis Control Fund to develop
guidelines for pesticide use on cannabis.
Cannabis Control Appeals Panel: $1 million for 8 positions for the panel’s operations;
Bureau of Cannabis Control: $664,000 and 5 positions for environmental impact review
activities.
Department of Public Health: $9.3 million for the Cannabis Control Fund to implement
cannabis manufacturer regulations.
Department of Food and Agriculture $3.9 million for the Cannabis Control Fund for
environmental impact review activities.
Cap-and-Trade
Governor Brown did not propose any revisions to his January proposal on Cap-and-Trade,
indicating he is holding firm on his proposal to reauthorize the Cap-and-Trade system with a two-
thirds vote of the Legislature. The two-thirds vote is widely seen as insulation against current and
future legal challenges to the system. While some 60 percent of the revenue auctions will be spent
based on continuous appropriation, the Governor proposes to make appropriation of the
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remaining 40 percent of auction revenues be contingent on the vote to reauthorize the Cap-and-
Trade system.
When asked during his press conference, Governor Brown indicated he believes there is a good
chance the Legislature will reauthorize this system because 50 percent of the revenues go to
disadvantaged communities. The Governor further articulated the importance of this system to
the credibility of the state’s Climate Action Plan, and a willingness to work with lawmakers on
proposals to restructure the program and potentially use Cap-and-Trade revenues for air quality
priorities in addition to reducing greenhouse gases (GHGs).
Public Utilities Commission: Transfer of Responsibilities
According to the Governor’s May Revision Budget Summary, transportation functions currently
regulated by the Public Utilities Commission (PUC) will be transferred to various other
departments starting July 1, 2018, as follows:
Private carriers of passengers (limousines, party buses, shuttles, etc.) — transferred to
the DMV.
Household goods carriers (residential or office moving companies) — transferred to the
Department of Consumer Affairs’ Bureau of Electronics and Appliance Repair, Home
Furnishings and Thermal Insulation.
For-hire vessels (ferry services) — transferred to the Department of Parks and
Recreation’s Division of Boating and Waterways.
Commercial air operators (flight schools, sightseeing services, chartered intrastate flights)
— transferred to cities and counties.
In addition to these transfers the PUC will see an increase of $636,000 to strengthen their
Transportation Enforcement Branch. It is unclear at this time if any of these transfers of budget
increases will impact regulations over the transportation network company industries, such as
Uber and Lyft.
Drought Response Concluding Activities
The May Revise decreases the projection needed for drought response activities from $178.7
million to $62.9 million. This $115.8 million decrease is due to end of the statewide drought.
Funding resources included in the May Revise are intended to conclude activities that began
during the drought, and the Administration expects the state to transition to prioritizing activities
associated with climate change. Major proposed appropriations include the following:
Protecting Water Supplies and Water Conservation
$5 million to Department of Water Resources (DWR) for emergency drinking water for
assistance for small communities in the Central Valley with dry private domestic wells;
$600,000 to the State Water Resources Control Board (Water Board) to conclude water
curtailment compliance and enforcement; and
$1 million to DWR for the Save Our Water Campaign.
Emergency Response
$41.7 million to Department of Forestry and Fire Protection (CAL FIRE) to address fire
protection needs due to continuing tree mortality. An unprecedented bark beetle outbreak
is estimated to have killed 100 million trees.
$42.3 million to CAL FIRE for expanded firefighting capabilities and extended fire season.
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$6.5 million to the Office of Emergency Services (OES) for emergency water tank activities
including periodic refills and tank storage and sanitation to the nine counties that continue
to experience effects from the drought (a reduction from January due to drought
conclusion).
$2 million to OES for local agencies to remove dead or dying trees.
Protecting Fish and Wildlife
$2.6 million to the Department of Fish and Wildlife for at-risk fish monitoring including
protection of fish and wildlife affected by future drought and climate change.
$3.5 million for Delta Smelt Resiliency Strategy implementation.
$21 million from water bond funds for the Sacramento-San Joaquin Delta and San
Francisco Bay Watershed from Prop. 13 over five years to DWR for scientific, engineering,
and construction to support salmon habitat restoration. Five positions within the
Department of Fish and Wildlife for expert staff, as the negotiations continue with water
districts and environmental groups on voluntary agreements to protecting drinking water
and habitats for numerous species
Enhancing Dam Safety and Flood Control
The Governor proposes enactment of a comprehensive dam safety and emergency flood
response package including legislation requiring updated emergency action plans, updated
inundation maps, and granting enforcement authority to DWR. Funding proposals include:
$387.1 million Prop. 1 to accelerate flood control projects over the next two fiscal years,
including projects in the Central Valley, the Sacramento-San Joaquin Delta, and other
parts of the state with significant flood risk.
$3.5 million to DWR to carry out dam safety activities.
$1.8 million to OES to carry out dam safety activities.
$3 million to the DWR to conduct evaluation of appurtenance structures such as spillways,
gates, outlets.
Making Water Conservation A Way of Life
The Administration has proposed a trailer bill and funding in the May Revision to support his long-
term water conservation proposal called, “Making Water Conservation A Way of Life”. Also
pending in the Legislature are policy bills designed to implement the Administration’s plan, an
alternative proposal developed by local water agencies, as well as a handful of other proposals
for water conservation. The May Revise proposes five positions in the State Water Resources
Control Board from existing funding to implement the proposed legislation.
Department of Parks and Recreation
SB 1, the transportation funding package, includes $54.3 million in additional funding for the
parks. The May Revise proposes the following allocations:
$31.5 million increase to repair state parks system infrastructure.
$1.5 million to establish a pilot project to provide transportation to parks from urban areas
and schools.
$1 million increase to support off-highway vehicle recreation including increased law
enforcement, environmental monitoring an maintenance grants.
$1 million increase for the Abandoned Watercraft Abatement grant program.
$1 million increase to establish recruitment and training program for hard-to-fill
classifications including park rangers, lifeguards, maintenance workers, administrators
and managers.
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$18 million increase for the Jurupa Area Recreation and Park District.
Beverage Container Recycling Program
While the January budget proposal contained a reform proposal for this 30-year old program, the
May Revise does not contain additional details. CalRecycle held a series of stakeholder
workshops in the early part of 2017 and stakeholders continue to await additional details. At stake
for cities is funding that supports local recycling programs.
Economic Development: Small Business Assistance
An additional $2 million is allocated to the Governor’s Office of Business and Economic
Development to match federal funds that are available to the California Small Business
Development Center for efforts to support small businesses. Funds will be made available through
a one-time competitive grant program, with emphasis on high poverty areas of California.
Governor’s Office of Emergency Services
The May Revise proposes $500,000 from the Anti-Terrorism Fund for the California NonProfit
Security Grant Program, assisting nonprofit organization at high risk of terrorist attack:
Target hardening.
Physical security enhancements.
Public/private coordination and collaboration in emergency preparedness (includes state
and local agencies and nonprofits).
State Retirement Cost (CalPERS) Investment
The May Revise includes a onetime $6 billion supplemental payment to CalPERS through a loan
from the Surplus Money Investment Fund. In an effort to mitigate the significant impacts resulting
from the lowering of discount rate, this proposed one-time payment to CALPERS is projected to
save the state $11 billion over the next two decades. This action would effectively double the
state’s annual payment for this year as they are projected to pay approximately $5.8 billion ($3.4
billion general fund dollars). This proposal to address the state’s rapidly growing unfunded
pension liabilities is a step in the right direction.
While the details of this proposal emerge, it is likely that many cities facing challenges with
pension obligations may not have the surplus reserves to avail themselves of such options.
Public Employees Relations Board
Allocates $750,000 to PERB, which administers and enforces public sector collective bargaining
laws, to support permanent positions, cover the costs of “fact finding fees” and relocate an office
in Southern California.
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California Department of Justice Litigation
$6.5 million GF and 31 positions is allocated to the Department of Justice to address new legal
workload related to various federal actions taken since January 2017 impacting public safety,
health care, the environment, consumer affairs, and general constitutional issues. This increased
workload is expected to continue.
Courts
The May Revise allocates a total of $3.6 billion for the state’s court system. This figure includes:
Trial Courts: $2.7 billion.
Courts of Appeal: $234 million.
Supreme Court: $48.6 million.
Judicial Council: $140. 3 million.
Judicial Branch Facility Program: $440.9 million.
Habeas Corpus Resource Center: $15. 8 million.
Court Construction Projects: $2.2 million.
$75 million will be allocated in FY 2016-17, and $55 million in FY 2017-18, to backfill the shortfall
in the Trial Court Trust Fund revenues resulting from lower filing fees and criminal assessments.
Also included is a $1.2 million loan over two years to implement a statewide electronic filing
program for court pleadings. The cost recovery fee charged to users will fund the loan repayment.
The Governor’s January Budget included language deleting provisions from statute related to
placing holds on driver’s licenses for failure to pay fines and penalties. The Judicial Council has
advocated for a need to address the resulting loss in revenue for court operations, but no amount
has been specified. The May Revise contains no solutions on this point, but dialogue between
the Administration and the Courts.
$2.2 million is included for two courthouse construction projects:
$664,000 for demolition of existing structures on the site of the Siskiyou County
Courthouse, including lead and asbestos abatement and clearing of debris.
$1.6 million to complete a data center at the Alameda County Hall of Justice
Re-appropriation of $16 million to support design phase of the Sacramento County
Criminal Courthouse.
Child Care
In January, Governor Brown proposed to pause until FY 2018-19 child care provider rate
increases and 2,959 additional full-day state preschool slots that were agreed to in FY 2016-17.
Since the May Revise assumes modestly improved revenue growth over January, the
Administration has reversed this proposal. The scheduled increases in reimbursement rates for
child care providers and expanded preschool slots would result in a $500 million increase for child
care providers in the current fiscal year through FY 2018-19.
Next Steps: The League will continue to review the Governor’s Budget May Revise and keep
city officials informed of any new developments. The Legislature is required by the Constitution
to send the Governor a budget by June 15 to be signed and take effect by July 1.