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Home My WebLink About2007 05-29 CC CDC ADJ MINBook 89 / Page 114 05-29-2007 MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION OF NATIONAL CITY, CALIFORNIA May 29, 2007 The Adjoumed Regular Meeting of the City Council of the City of National City was called to order at 6:06 p.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council members present: Morrison, Natividad, Parra, Ungab, Zarate. Administrative Officials present: Beard, Campbell, Dalla, Deese, Eiser, Gonzales, Juniel, Kirkpatrick, Limfueco, Lopez, Post, Raulston, Smith, Soriano, Stevenson, Zapata. BUDGET WORKSHOP 1. SUBJECT: Review of the City Manager's Proposed 2007-2008 Preliminary Budgets for City and Community Development Commission. (City Manager) City Manager Chris Zapata and Assistant City Manager Leslie Deese using overhead slides, presented and discussed the proposed 2007-2008 Preliminary Budget for the City. See Exhibit 'A', attached. CDC Executive Director Brad Raulston discussed the proposed Preliminary Budget for the Community Development Commission. TESTIMONY: Dukie Valderrama, National City, expressed disappointment with some of the budget recommendations and said new funds should not be spent until the sales tax election is decided. Ted Gosdhalk, National City, inquired about reports from the State Board of Equalization on sales tax revenue. Alfonso Hernandez, National City, said there should be no free sidewalks and favored revenue recovery efforts. ACTION: None. The proposed budgets will be considered on June 19, 2007. Book 89 / Page 115 05-29-2007 ADJOURNMENT The meeting was adjoumed to the next Regular Meeting of the City Council and Community Development Commission to be held Tuesday, June 5, 2007 at 6:00 p.m., Council Chambers, Civic Center. The meeting closed at 7:47 p.m. 4 City The foregoing minutes were approved at the Regular Meeting of July 17, 2007. Mayor / Chairman TAPE RECORDINGS OF EACH CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION MEETINGS ARE AVAILABLE FOR SALE IN THE CITY CLERK'S OFFICE. EXHIBIT "A" Preliminary Budget Presentation Fiscal Year 2007-2008 • City of National City May 29, 2007 d cv:1.14..1Z,JMavuemM01s0...2.11114_"'___ _ e_MKnMo.wufursr.ev....ewu•-�..�:..r�..e,w.r...�v_ Introduction • Background • Policy Direction • General Fund • Vehicle C.I.P. Program • C.I.P. Program • Economic and Redevelopment Funds • Council Direction 1 Background ■ Transparent Accounting • 2004 — 5 year projection identifying structural deficit in GF • Stagnant revenue in GF • Increased operating and personnel costs ■ State raids on local funds Background ■ Strategic Planning • Prioritization of City Council Focus Areas, which included: Public Safety, Technology, Citizen Engagement, Fiscal Clarity, Image Enhancement ■ 2005 — Council adopts overarching goal of Fiscal Sustainability • Council and Community Discussion — Less services . Council direction to create new revenue in combination with efficiency measures • 2005 — Proposition D on ballot — dual budgets (contingency budget) 2 Background • Revenue Analysis • Diversification of GF revenue streams needed (over reliance on autos and construction) • Impact Fee implementation (new growth pays its own way) • Aggressive pursuit of grant funds to leverage local dollars • Community Benefit District formation to add higher levels of service • Community Development Agency revenues Background • New Revenue Analysis • Utility User Tax, Property Tax, Parcel Tax — non starters (burden for all services falls solely to locals) • District Tax (recommended as non-residents pay "fair share" for services consumed) • 2005 — Proposition B — November — FAILED • 2005 — Proposition D — June ** (10 year automatic sunset, November 2008 Vote to Repeal) - PASSED 3 Background • Council Direction • Merge Redevelopment Agency with City • Segregate Proposition D Funds • Restore Services ■ Maintain GF Reserves ■ Funds activities that provide community benefit (public safety, neighborhood improvement, grants, library services) • Integrate first year of 5-Year Strategic Plan into budget Budget Overview • Per Council Direction: • 5 additional police officers (87 to 92 budgeted) ■ Community facilities targeted (park restrooms, little league facilities) • Community services targeted (Library to 7-day operation, graffiti abatement, code enforcement) • Emphasis on Grants Management is $8.5 million dollars projected from Prop. D and will be segregated 4 FY07 General Fund Estimated Year -End Position • Beginning Fund Balance 7/1/06 (Audited) $ 6,054,123 ■ Projected through 6/30/07 • Revenues $ 35,295,004 ■ E xpenditures ($31,776,423) ■ Transfers (Park Maint.& Library) ($ 2,738,690) • Estimated Year End Position 6/30/07 $ 6,834,014 (includes $4.6M Prop. D revenue & prior years savings) • GF Reserves (existing) $ 6.7 Million Reserve Policy ■ Contingency Reserve ■ General Fund Reserve: 25% - 50% of operating expenditures is current Policy . Begin FY07/08 with $6.7 Million, which is 17.5% $8 0 570 $6.0 c 55.0 54.0 2001 2002 2003 2004 2005 2006 2007 LIAudited ■Preliminary 5 Other Contingency Reserves ■ Gas Tax Fund: 5% of estimated revenue • Sewer Service Fund: 5% of estimated revenue • Other Funds • Liability Insurance Reserve • Workers Compensation Reserve • Debt Service Reserve ■ Equipment Replacement Reserve FY08 Budget Highlights • 5 New Police Officers • 7-Day Library Operation • Funds Graffiti Abatement Program ■ Continues Housing Inspection Program ■ 1 Hous ing Inspector II (approved mid -year) ■ 2 Hous ing Inspectors (approved mid -year) ■ Creates Grants Division ■ Grants Coordinator ■ Grants A ccountant ■ Funds Positions Previously Funded by CDBG ■ Code Conformance Officer ■ A dministrative Secretary • Transfers Nutrition Center Operation to General Fund 6 FY08 Proposed General Fund Budget Revenues (with Prop. D) Add: Transfers In (Gas Tax Fund) Total Revenues Less: Expenditures Less: Transfers Out (Library, Park Maint. Fund, Nutrition Ctr.) Total Expenditures Budget Surplus (excludes $2.7M GF C.I.P. Program) $39,494,449 $ 700,000 $40,194,449 ($36,637,560) ($ 1,680,935) $38,318,495 $ 1,875,954 General Fund History 45.000,000 — 40,000.000 35.000,000 30,000,000 25.000,000 —Revenues —Expenses 20.000,000 l —� OAS spry yA� SAP aph yQ6 6Q'1 45) O O O O O O O O 7 FY08 General Fund Revenue Assumptions ■ Proposition D Revenue projected at $8.5M • Property Tax Revenue to increase 5% • Sales Tax Revenue to increase 2.5°l0 • Other Revenue related to building and construction is expected to decrease • Other Revenue sources such as T.O.T, Franchise Fees, Business License Fees not expected to increase FY08 General Fund -Re venues - (5 Largest Revenue Categories) • Sales & Use Tax ■ District Sales Tax (Prop. D) • Property Tax in Lieu of VLF • Property Tax in Lieu of Sales Tax • Property Taxes $13.2 Million $ 8.5 Million $ 4.5 Million $ 3.5 Million $ 2.9 Million 8 FY08 General Fund Expenditure Assumptions ■ Mandated cost increases and budget changes recommended by City Manager ■ Community Enhancement Projects ■ One-time costs ■ Negotiated compensation adjustments for public safety and municipal employees ■ Overall increase of 6.04% FY08 General Fund - Expenditures - (5 Largest Expenditure Categories) ■ Police ■ Fire ■ Public Works/Streets ■ Community Services ■ Building & Safety $20.0 Million $ 6.7 Million $ 2.0 Million $ 1.7 Million $ 1.1 Million 9 Proposed Budget Provides for Mayor & Council Priorities • Service Enhancements ■ Increased Pub lic Safety ■ 7-Da y Library Operation ■Inv estment in Community Facilities (Casa de Salud, league score -shacks, park restrooms, etc.) ■ Focus on Neighborhood Services ■ Gra ffiti Abatement ■ Code Enforcement ■ Hous ing Inspection Program ■ Nutri tion Center/Senior Service ■ Technology & Image Enhancements ■ W ebsite ■ W i-fi Corridor 'GUEST INN HOME BALL STRIKE OUT Si 4.4 k) Budgets Without Increases omeimamm • Mayor/City Council • City Treasurer • Planning • Human Resources • Engineering • Community Services • Purchasing • Non -Departmental 10 Budgets With Increases ■ Police • Fire • Library ■ Building & Safety ■ City Manager ■ M.I.S. • Public Works • City Clerk • Finance • City Attorney ■ Risk Management • Nutrition Center kik. *ow 4.y • Hire 5 Additional Police Officers • Training • Uniform Accessories • Computer Equipment • Communications Eqpt. • Printing & Binding Total • Negotiated Compensation TOTAL INCREASE $10,000 $10,000 $25,000 $15,000 $10,000 $500,000 $ 70,000 Increases $235,000 $805,000 11 Fire • Firefighter Wellness Program $ 50,000 • Negotiated Compensation Increases $346,000 TOTAL INCREASE $396,000 Library ■ 7-Day Library Operation $40,270 (increase in P/T salaries) • TOTAL INCREASE $40,270 12 Building & Safety *Previously funded by CDBG • 1 Code Conformance Officer $ 79,078* (change in funding source) • .5 Administrative Secretary $ 26,138* (change in funding source) • Cont. Housing Inspection Program • 2 Hous ing Inspectors $140,780 ■ 1 Hous ing Inspector II $ 77,097 (TI)* (change in funding source) • 1 Graffiti Removal Technician $ 71,094 (TI)* (change in funding source) • 1 Graffiti Removal Assistant $ 53,427 (TI)* (change in funding source) TOTAL INCREASE $245,996 (GF) $201,618 (TI) 13 M.I.S. • Info. Sys. Maintenance Fund • Employee Training $ 8,250 • R&M Office Equipment $ 40,280 $ 48,530 (maintain grant -purchased systems) • Office Eqpt. Deprec. Fund • Contract Services $145,000 (Web Developer/Network Engineer) • Computer Equipment $ 55,000 $200,000 (replace grant purchased laptops) • Telecom Revolving Fund • Telephone & Telcom. $ 76,400 $ 76,400 (Police & Library hardware upgrades) • TOTAL INCREASE $324,930 Public Works • Streets Division ■ S olar Street Lights ■ T raffic Control Devices ■ Facilities Division ■ Gas & Electric Increases ■ Li brary & Fire Station #34 HVAC Maintenance Contracts $ 8,960 $ 24,000 $ 32,960 $ 11,680 $100,000 $111,680 • TOTAL INCREASE 6144,640 14 City Clerk •C1 • Advertising Costs $13,000 TOTAL INCREASE $13,000 • Audit Fees • Grants Accountant (.5 TI; .5 Gen. Acctg. Svs. Fund) $ 7,500 $72,000 TOTAL INCREASE $79,500 15 City Attorney/ Risk Management ■ Excess Liability Insurance $177,247 ■ Liability Claim Costs $150,000 • TOTAL INCREASE $327,247 Nutrition Center ■ Transfer Nutrition Center Operation to General Fund $376,000 . TOTAL TRANSFER $376,000 16 FY08 BUDGET CHANGES • General Fund • Police $805,000 • Fire $396,000 • Building & Safety $245,996 • City Manager $ 45,889 • Public Works $ 32,960 • City Clerk $ 13,000 • Finance $ 36,000 • Nutrition Center $376,000 • Total General Fund • Other Funds • Finance $ 7,500 • City Atty/Risk Mgmt. $327,247 • Building & Safety $201,618 • City Manager $ 45,889 • M.I.S. $342,430 • Public Works $111,680 • Finance S 36,000 • Library $ 40.270 • Total Other Funds $1,950,845 $1,112,634 Vehicle C.I.P. Program • Vehicle Replacements proposed for: • Police • Fire • Public Works • Pool Cars TOTAL REQUEST $298,000 17 4 Vehicle Replacements • Police . 5 Cro wn Victoria $ 162,000 • Fire ■ 1 NC T ransit '02 Explorer $ 3,000* ■ 1 E x-Fleet Rental '06 Sedan $ 16,000 in Public Works ■ 1 Com pact Pickup (Parks) $ 18,000 . 1 One -ton T ruck (Streets) $ 67,000 • Pool Cars • 2 E x-Fleet Rental Sedans (Pool Cars) $ 32,000 TOTAL REQUEST $298,000 *represents vehicle build-up costs FY08 CIP & 5-Year CIP Program • Analysis of CIP Program to reprioritize and de -obligate projects • Incorporates City Council's decisions on CDBG funding • Represents projects for community benefit (soccer field, bayshore bikeway, Safe Routes 2 Schools), streets, sewer, traffic safety, transportation, city facilities and flood control • Proposed FY08 portion calls for $7,556,310 in projects spread over 8 funding sources (Gas Tax, Sewer Service, CDBG, Proposition A, General Fund, County of San Diego, State High Priority Projects and CALTRANS Grant) 18 FY08 CIP Project Requests o tinwrev Setvce Rana • Rty A(Tryp.N) vvoe CIP ',Meet Requests f♦ lereKM ivrK o ae.+y of Sun ltye n1,1 MAN$ • see Yee Ruth rtes. O CD B G FY08 General Fund CIP Projects ■ 17 Projects totaling $2,710,200 • Represents projects for community benefit, traffic safety, maintenance, transportation, city facilities and flood control 19 FY08 General Fund CIP Projects • Community Facility Remodeling & Renovation $ 800,000 (league scoreshacks, park bathrooms, Casa, etc.) • Fire Station #31 ■Reno vation or $ 500,000 ■Rem odel $ 50,000 • Reseal Police Department Parking Lot $ 297,700 • Re roof Public Works Facility $ 260,000 ■ Alley Improvements $ 150,000 • Traffic Monitoring/System Improvements $ 150,000 ■ Traffic Signal Timing/Interconnect System $ 100,000 • Upgrade Pedestrian Ramps $ 100,000* ■ Highway Safety Improvement (HSIP) Grants $ 55,000* 'Multiple Funding Sources FY08 General Fund CIP Projects • Safe Routes to Schools • Miscellaneous Concrete Improvements • Miscellaneous Storm Drain Improvements • Resurface Municipal Tennis Courts ■ Installation of Noise Barrier (Sound Wall) (805 & Plaza) • Sweetwater Channel Maintenance ■ Bayshore Bikeway Connector $ 50,000* $ 50,000* $ 50,000* $ 30,000 $ 30,000* $ 20,500 $ 17,000* Total $2,710,200 'Multiple Funding Sources 20 Next Steps • Preliminary Budget Review and Adoption ■ June 19, 2007 • Final Budget Adoption ■ August/September 2007 21