Meeting Date: June 25, 2002
Subject/Title: Approve a resolution adopting the 2001/02-2002/03 Amended Budget for the City of Brentwood
Submitted by: Pamela Ehler, Director of Finance and Information Systems
Approved by: John Stevenson, City Manager
Approve a resolution adopting the 2001/02-2002/03 Amended Budget for the City of Brentwood.
On June 12, 2001 the City Council approved the Operations Budget for fiscal years 2001/02 and 2002/03.
On February 12, 2002 the City Council approved Mid-Year budget amendments for the 2001/02 budget.
Throughout the year unanticipated expenditures are incurred by purchasing facilities, annexation of more territory, creation of programs and commissions or simply an oversight during the budget process. In order to keep up with the fast pace of growth, in fiscal year 2001/02, additional funding requests have been made for costs that were not anticipated for budget years 2002/03.
As of July 1, 2002, Community Development and Engineering will become a part of the General Fund. This grouping will bring the General Fund’s Fund Balance to $11,162,156 by June 30, 2003. Included in the new Fund Balance are the adjustment increases to Fire Protection, PAL Program, Workman’s Comp, Long-Term Disability, insurance, and PERS that were unforeseen when the two-year budgets were prepared and approved by the City Council on June 12, 2001.
Brentwood continues to improve the city’s public services by the incentive programs for Public Safety and compliance to the authorized number of officers per capita, a contribution for a Fire
department/EMT service, a transfer to the Parks and Recreation program that lends to a thriving quality of living for which Brentwood is known, Educational support to the Library, cost of living adjustments and an investment in the City’s resources by the implementation of a tuition program. In light of the events of September 11, 2001, insurance costs have also increased commensurate with the insurance claims that have arisen within the Joint Powers Authority membership of which the City of Brentwood is a member.
General Fund major adjustments:
ü 6.5 Police Officers
ü $400,000 for Fire/EMT contribution
ü Assistant City Manager
ü 2.5% CPI increase to payroll
ü $50,000 contribution to PAL
ü Street paving equipment
ü Zoning Ordinance, Downtown Specific Plan, Subdivision Ordinance, Northwest Plan
ü Traffic Calming and ADA projects
CITY RENTAL ENTERPRISE:
Retained earnings for June 30, 2003 is projected to be $157,494 for the City Rental Enterprise – otherwise known as our Technology Center. This Enterprise holds a lot of promise as it paves the way for businesses to utilize an executive suite-type of offices that is essential for our growing City. Likewise, the presence of a collegiate educational resource lends to the drawing power of young and mature adults to the City, which can garner not only future residents but also a draw for the local businesses.
Parks and Recreation Enterprise Fund:
The ever popular Parks and Recreation Enterprise continues to surpass their capability to offer programs that are sought after by the community. Retained earnings for this enterprise is projected to be $8,674,006 for June 30, 2003. This is largely due to the capitalization of the park assets. This budget does not reflect any increases to revenue from fees. An ongoing fee study is nearing completion within six weeks and the budget will be amended at mid-year to reflect those changes.
Solid Waste Enterprise Fund:
The Solid Waste Enterprise is projected to have retained earnings of $2,702,990 by June 30, 2003. In order to serve the needs of this rapidly growing City more efficiently, $935,000 is budgeted for improvements to the 9 year-old Transfer Station. To the benefit of the residents, the current transfer station has kept its pace with the increasing number of households without any rate increases.
Water Enterprise Fund
The Water Enterprise Fund will see retained earnings projected at $1,772,488 for June 30, 2003. A rate study is nearing completion within two months and the results of the study will reflect any changes that will be necessary to be amended at mid-year. Capital projects in the amount of $710,200 are included in this budget. The rate study also takes in account the planning and needs of the future water plant.
Wastewater Enterprise Fund
Retained Earnings for June 30, 2003 is projected to be $2,030,579. With the construction of the Wastewater Treatment Plant, a rate study is also underway in preparation for the operation of the plant. The Plant is slated to be able to process 5 mgd of solids at full capacity. This bodes well as the growth of the City has taken a toll on our current capacity to process waste. The City Engineers have put forth a tremendous effort in anticipating the needs of the City and its future residents. Capital projects in the amount of $456,000 are included in this budget as well as staff additions for the new treatment plant.
Internal Services (Replacement Programs)
Ø Collectively the Internal Service Funds are projected to have Fund Balances of $8,048,701 as of June 30, 2003. All Internal Service Funds have been 100% funded which ensures that scheduled equipment replacement needs can be met.
Ø The Emergency Preparedness Fund has been added to the Internal Service Fund. If a critical incident or catastrophic event should occur, Brentwood leads the way in planning so funds are available.
Ø With the fast pace of technology, it has been an advantage for the City to have the Information Systems resources available in-house. Down time is minimized and productivity is maximized – thus resulting in the City employees’ ability to keep up with the pace of development and the work that goes hand in hand with an emergent City.
Ø The Tuition Program has been added this year. This is deemed to be a motivating factor for City employees and consequently, it is also an empowering investment by the City as it can only advance the way the City of Brentwood runs its local government.
This review does not reflect any changes to the current revenue projections that may result from the State budget adjustments. Many of the expenditures reallocations are being recommended in preparation for the anticipated State budget cuts.
Brentwood possesses growing service demands and a limited degree of revenue and expenditure flexibility. The practical constraints on expenditure reductions is reflected in a General Fund expenditure rate per capita that is below average for California cities of similar size. The City’s strong fund balance levels, additional reserves, and prudent fiscal management allow for us to be prepared for future growth.
This Budget underscores the City Council’s commitment to continue to make cost containment a high priority. In accordance with the Budget Development Guidelines, the Operating Budget is free from reliance upon non-recurring revenue sources and does not commit to spending more than a conservatively prepared estimate of recurring revenues.
The Operating Budget will continue to be reviewed quarterly, or sooner if necessary, to allow the City Council to respond to changes in the economy or development community in a timely manner.
The City continues to benefit from prudent financial management. The budget appears to be fairly well positioned, as actual figures are expected to achieve or improve upon budgeted figures.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD ADOPTING THE 2001/02-2002/03 AMENDED BUDGET FOR THE CITY OF BRENTWOOD
WHEREAS, the City Council of the City of Brentwood has reviewed the financial condition of the City of Brentwood; and
WHEREAS, the City departments have submitted requests for appropriations to fund the departmental programs to provide services for the City of Brentwood; and
WHEREAS, the City Council has reviewed these specific departmental requests and held workshops to discuss City priorities for the expenditure of City funds.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Brentwood hereby adopts the 2001/02-2002/03 Amended Final Budget for the City of Brentwood as presented by the City Manager.
PASSED by the City Council of the City of Brentwood at its regular meeting on June 25, 2002 by the following vote:
Michael A. McPoland, Sr.
Karen Diaz, CMC