HomeMy WebLinkAbout1999 03-23 CC ADJ AGENDA PKTAGENDA OF AN ADJOURNED REGULAR MEETING
NATIONAL CITY CITY COUNCIL
LARGE CONFERENCE ROOM
CIVIC CENTER
1243 NATIONAL CITY BOULEVARD
TUESDAY — MARCH 23, 1999 - 3:00 P.M.
OPEN TO THE PUBLIC
ROLL CALL
1. Financial Forecasting Workshop
PUBLIC ORAL COMMUNICATIONS (Five -Minute Time Limit)
NOTE: Pursuant to State Law, items requiring Council action must be brought
back on a subsequent Council agenda unless they are of a demonstrated
emergency or urgent nature.
ADJOURNMENT
Next Regular City Council Meeting — March 23, 1999 - 6:00 P.M. -
Council Chambers, Civic Center
TAPE RECORDINGS OF EACH CITY COUNCIL MEETING ARE
AVAILABLE FOR SALE AND TO LISTEN TO
IN THE CITY CLERK'S OFFICE
City of National City
Financial Forecasting Workshop
March 23, 1999
CITY OF NATIONAL
GENERAL FUND 5 YEAR BUSINESS PLAN
FISCAL YEARS 1999 TO 2003
MARCH 23, 1999
PURPOSE
• To set the stage for the preparation of the 1999-00 budget based on economic assumptions,
historical data and adopted council policies.
• To evaluate anticipated revenues and projected expenditures based on current labor contracts,
CIP plan, compensation adjustments, economic trends, historical data and on going fiscal
obligations.
• To present a second opportunity to step back and look at the "forest" without being engulfed by
the "trees".
ECONOMY
• Economists are not projecting a recession in the foreseeable future.
• Economic indicators continue to be positive, low inflation, modest interest rates, low unemployment
and continued modest growth.
• San Diego's economy is benefited by diversity, positive retail sales, improved real estate market and
service sector employment growth.
GENERAL ASSUMPTIONS
• The current positive economy will continue at a moderate growth during the duration of the 5 year
plan.
• No Motor Vehicle In -lieu revenue reductions will result.
• The Federal Government will not mandate social security on public employees.
• The State or voter initiative will not further reduce City revenues.
• The City will not benefit from a return of property taxes (ERAF shift) from the State.
• Sales tax will not be eroded significantly due to a loss of retail sales to Internet commerce.
• It is assumed that Redevelopment Agency tax increment(property taxes) will be sufficient to meet
CDC current debt services requiring no General Fund loans (subsidy).
• The Plan assumes continuation of the City Council policy of maintaining reserves.
CITY OF NATIONAL
GENERAL FUND 5 YEAR BUSINESS PLAN
FISCAL YEARS 1999 TO 2003
REVENUE ASSUMPTIONS
TOTAL REVENUES ARE PROJECTED TO INCREASE AN AVERAGE OF 5.50% PER YEAR, OR
22.00% OVER A 4 YEAR PERIOD.
1. Property Taxes are projected to increase 2% per year.
2. Sales Taxes are projected to increase 5% per year.
3. Motor Vehicle In Lieu Taxes are projected to increase 6% per year.
4. Other Taxes including Transient Lodging Tax, Franchise Taxes, Business License Taxes,
Residential Rental Taxes are projected to increase 3% per year.
5. Investment Earnings are projected to increase by 6% per year.
6. Other Revenues, specifically Parking Citation, is projected to increase by 10% in 1998-99 and 5%
from 2000 to 2003.
7. Revenues from Overhead and Support Services(Charges To Other City Funds), modified by the
compensation adjustment is projected to continue in future years.
8. No new revenue sources are forecasted above those budgeted in fiscal year 1998-99
9. General Fund will continue to provide supplemental funds to the Library and Parks & Recreation
in addition to property taxes, at an average rate of 8.5%.
EXPENDITURE ASSUMPTIONS
TOTAL EXPENDITURES ARE PROJECTED TO INCREASE AN AVERAGE OF 4.00% PER YEAR,
OR 16.00% OVER A 4 YEAR PERIOD.
1. Compensation Adjustment factored at 5%.
2. One time PERS savings of $ 808,755 is accounted for in 1999-00.
3. General Fund will absorb the costs for grant funded police officers starting 1999 to 2003.
4. Positions were based on approved positions in 1998-99.
5. Maintenance & Operation costs will increase by 2% for the next 5 years.
6. There will be 0% increase in capital outlay from 2000 to 2003.
7. CIP plan reflects all general fund planned expenditures including the $ 4,000,000 proposed
replacement of the Fire Station in 2001-02.
8. Internal Charges were calculated at a rate of 2% for the next 5 years.
CITY OF NATIONAL CITY
GENERAL FUND 5 YEAR BUSINESS PLAN
FISCAL YEARS 1999 TO 2003
REVENUE PROJECTIONS
FINANCING SOURCE
1998-99
BUDGETED
%
CHANGE
1999-00
PROJECTED
%
CHANGE
2000-01
PROJECTED
%
CHANGE
2001-02
PROJECTED
%
CHANGE
2002-03
PROJECTED
PROPERTY TAXES
1,850,321
2%
1,887,327
2%
1,925,074
2%
1,963,575
2%
2,002,847
SALES TAXES
11,685,526
5%
12,269,802
5%
12,883,292
5%
13,527,457
5%
14,203,830
MOTOR VEHICLE IN LIEU
2,216,232
6%
2,349,206
6%
2,490,158
6%
2,639,568
6%
2,797,942
TRANSIENT LODGING TAX
700,000
3%
735,000
3%
771,750
3%
810,338
3%
850,854
FRANCHISE TAXES
911,200
3%
938,536
3%
966,692
3%
995,693
3%
1,025,563
BUSINESS LICENSE TAX
500,000
3%
515,000
3%
530,450
3%
546,364
3%
562,754
RESIDENTIAL RENTAL FEE
135,000
3%
139,050
3%
143,222
3%
147,518
3%
151,944
INVESTMENT EARNINGS
1,200,000
30%
1,700,000
6%
1,800,000
6%
1,900,000
6%
2,024,727
OTHER REVENUES
1,207,407
10%
1,332,407
5%
1,399,027
5%
1,468,978
5%
1,542,428
21,866,328
5%
22,909,665
5%
23,999,491
5%
25,162,889
NOTES:
1. 1998-99 PROJECTED IS BASED ON THE CITY'S ADOPTED BUDGET.
2. A 7% CHANGE IN PROJECTED TOTAL REVENUES FROM 1998-99 INTO 1999-00 DUE TO THE INCREASE IN INVESTMENT EARNINGS
3. A 5% AVERAGE ANNUAL INCREASE IS PROJECTED FROM 1999-00 THRU 2002-03 BASED ON SOURCE DATA AVAILABLE AND
ECONOMIC FORECASTING PROVIDED.
FinWkshp99A
CITY OF NATIONAL CITY
GENERAL FUND 5 YEAR BUSINESS PLAN
FISCAL YEARS 1999 TO 2003
EXPENDITURE PROJECTIONS
EXPENDITURE
CATEGORY
1998-99
BUDGETED
%
CHANGE
1999-00
PROJECTED
%
CHANGE
2000-01
PROJECTED
%
CHANGE
2001-02
PROJECTED
%
CHANGE
2002-03
PROJECTED
PERSONAL SERVICES
14,589,792
-2%
14,854,852
10%
16,441,003
5%
17,280,231
5%
18,144,243
MAINTENANCE & OPERATION
2,757,339
2%
2,812,486
2%
2,868,736
2%
2,926,111
2%
2,984,633
CAPITAL OUTLAY
40,560
0%
40,560
0%
40,560
0%
40,560
0%
40,560
CIP
162,000
PLAN
1,050,000
PLAN
790,000
PLAN
4,055,000
PLAN
85,000
INTERNAL CHARGES
2,564,601
2%
2,615,893
2%
2,668,211
2%
2,721,575
2%
2,776,007
FUND TOTAL
20,114,292
5%
21,373,791
7%
22,808,510 16%
27,023,477 -12%
24,030,443
NOTES:
1. 1998-99 PROJECTED IS BASED ON THE CITY'S ADOPTED BUDGET.
2. A 5% INCREASE IS PROJECTED IN TOTAL EXPENDITURES FROM 1998-99 TO 1999-00 WHICH INCLUDE:
a. One-time PERS savings in the amount of $ 808,755.
b. Additional 5% compensation adjustment for all employees.
3. A 7% INCREASE IS PROJECTED IN TOTAL EXPENDITURES FROM 1999-00 TO 2000-01 WHICH INCLUDE:
a. Elimination of PERS savings.
b. Decreased participation of police grants
4. A 16% INCREASE IS PROJECTED IN TOTAL EXPENDITURES FROM 2001-02 MAINLY FROM CIP FIRE STATION REPLACEMENT
FinWkshp99B
CITY OF NATIONAL CITY
GENERAL FUND
SALARY AND BENEFIT CHARGES TO OTHER FUNDS PROJECTIONS
FY 1999-00, 2000-01, 2001-02, 2002-03
EXPENDITURE CATEGORY
1999-00
PROJECTED
2000-01
PROJECTED
2001-02
PROJECTED
2002-03
PROJECTED
JUDGE GRANT (1 OFFICER)
54,470
57,194
60,054
63,057
SCHOOL LIAISONS:
FULL-TIME OFFICER
76,986
80,835
84,877
89,121
PART-TIME OFFICER
38,869
40,812
42,853
44,996
PROP A:
ASSISTANT CIVIL ENGINEER
65,177
68,436
71,858
75,451
SENIOR OFFICE ASSISTANT
33,260
34,923
36,669
38,502
COPS GRANT PART II (4 OFFICERS)
97,333
SUPPRESSION OF DRUG ABUSE (1 OFFICER)
70,303
73,818
77,509
81,384
STOP GRANT:
2 OFFICERS
88,390
17,178
HIDTA GRANT (1 OFFICER)
76,904
80,749
84,786
89,025
HOUSING INSPECTOR
55,446
58,218
61,129
64,185
GRAFFITI CONTROL POSITION
45,808
48,098
50,503
53,028
STAFF SUPPORT POSITION
20,860
21,903
22,998
24,148
POLICE CLERICAL POSITION
36,539
38,366
40,284
42,298
STREET TREE MAINTENANCE POSITION
36,407
38,227
40,138
42,145
LEARN -TO -SWIM PROGRAM
24,000
24,000
24,000
24,000
TINY TOTS PROGRAM
18,000
18,000
18,000
18,000
LOWER SWEETWATER CONTRIBUTION
82,026
86,127
90,433
94,955
FUND TOTAL
920,778
786,884
806,091
844,295
NOTES:
1. INCLUDES A 5% COMPENSATION ADJUSTMENT EACH YEAR.
CITY OF NATIONAL CITY
GENERAL FUND 5 YEAR BUSINESS PLAN
FISCAL YEARS 1999 TO 2003
OPERATING TRANSFERS PROJECTIONS
EXPENDITURE
CATEGORY
1998-99
BUDGETED
%
CHANGE
1999-00
PROJECTED
%
CHANGE
2000-01
PROJECTED
%
CHANGE
2001-02
PROJECTED
%
CHANGE
2002-03
PROJECTED
TRANSFERS TO GF FROM:
GAS TAX
700,000
700,000
700,000
700,000
700,000
GENERAL CAPITAL OUTLAY
5,400
0
0
0
0
TRANSFERS FROM GF TO:
LIBRARY FUND
(439,565)
7%
(470,335)
7%
(503,257)
7%
(538,486)
7%
(576,180)
PARK MAINTENANCE FUND
(377,650)
7%
(404,086)
7%
(432,372)
7%
(462,638)
7%
(495,022)
,815) 6
(174,421) 7%
(235,629) 7%
(301,124) 7%
(371,202)
NOTES:
1. 1998-99 PROJECTED IS BASED ON THE CITY'S ADOPTED BUDGET.
2. INCLUDES THE 5% COMPENSATION ADJUSTMENT FOR LIBRARY AND PARKS MAINTENANCE EMPLOYEES EACH YEAR.
3. ASSUMES THE SAME 2% INCREASE IN PROPERTY TAXES FOR THE LIBRARY AND PARKS MAINTENANCE FUNDS.
FinWkshp99C
CITY OF NATIONAL CITY
GENERAL FUND 5 YEAR BUSINESS PLAN
FISCAL YEARS 1999 TO 2003
FUND BALANCE ANALYSIS
YEAR
FUND BALANCE
BEGINNING
ESTIMATED
REVENUES
% VARIANCE
Est. Rev. TO Proj. Exp.
PROJECTED
EXPENDITURES
INTERFUND
TRANSFERS
FUND BALANCE
ENDING
1998-99
627,014
20,405,686
+1.4%
20,114,292
(111,815)
806,593
1999-00
806,593
21,866,328
+2.3%
21,373,791
(174,421)
1,124,709
2000-01
1,124,709
22,909,665
+0.4%
22,808,510
(235,629)
990,235
2001-02
990,235
23,999,491
-12.6%
27,023,477
(301,124)
(2,334,875)
2002-03
(2,334,875)
25,162,889
+4.5%
24,030,443
(371,202)
(1,573,631)
NOTES:
1. 1998-99 AMOUNTS ARE BASED ON THE CITY'S ADOPTED BUDGET.
2. ESTIMATED REVENUES AND PROJECTED EXPENDITURES FROM 1999-2003 ARE BASED ON GENERAL ECONOMIC FORECAST,
SOURCE DATA, CIP PLAN AND ANTICIPATED COMPENSATION ADJUSTMENTS.
3. FUND BALANCE ENDING IN 2001-02 IS IMPACTED BY THE CIP PLAN OF REPLACING THE FIRE STATION IN THE AMOUNT
OF $ 4,000,000.
• FinWkshp99D
EXHIBIT J
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
1998-99
CITY OF NATIONAL CITY
GENERAL FUND
REVENUE/EXPENDITURE COMPARISONS
FY 1998-99 THROUGH FY 2002-03
1999-00
2000-01
■REVENUES
DEXPENDITURES
EXPENDITURES
AS A % OF
% EXCESS/
REVENUES
(DEFICIENCY)
1998-99
98.6%
1.4 %
1999-00
97.7%
2.3 %
2000-01
99.6%
0.4 %
2001-02
112.6%
(12.6)%
2002-03
95.5%
4.5 %
2001-02
2002-03