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| CITY COUNCIL AGENDA ITEM NO. 11
Meeting Date: February 11, 2003
Subject/Title: 2002/03 Mid-Year Budget Review and Recommended Budget Adjustments
Submitted by: Pam Ehler, Director of Finance and Information Services
Approved by: John Stevenson, City Manager
Approve a resolution amending the 2002/03 Budget.
June 25, 2002, the City Council approved budget adjustments for fiscal years 2002/03.
Throughout the year unanticipated expenditures are incurred by required professional services, creation of programs or simply an oversight during the budget process. Additional funding requests have been made for costs that were not anticipated.
In light of the current State budget crisis, this report does not include any potential changes. State budget cuts are being addressed through the normal budget cycle that started this month.
While the State has not moved to cut off money on February 1st as originally indicated by the Governor, the situation relating to Vehicle License Fee is still very fluid. We will need to keep a close watch on what is happening in Sacramento and be sure to let our legislators know what impacts these proposed cuts will have on our City. It is important to remind them what services will have to be cut or reduced if our money is again siphoned off to fund the State budget. The City’s cumulative Educational Revenue Augmentation Fund (ERAF) loss from 1992/93 through 2001/02 is $5,584,237.
Brentwood’s citywide assessed valuation was up 29.8% over the previous year, which was 22% greater than the increase experienced countywide at 8.0%. The increase in assessed value between 2001/02 and 2002/03 was $653 million. Assessed valuation for 2002/03 is $2.8 billion.
The proposed budget adjustments are necessary to bring salaries in line with those of Council-adopted survey cities, as surveyed within the last month.
GENERAL FUND (Details outlined in Attachment A)
Revenue projections are being increased by $1,600,000. These increases are due primarily to Property Taxes, Building Permits, Inspection Services, and Plan Check Fees.
Expenditure requests total $139,906. Cost savings have been from Planning Studies, Liability Insurance, Workers Compensation, and the annual Fire contribution.
A one time subsidy for the Park Enterprise is needed to correct the current deficit, due to anticipated revenues from Fiscal Years 99/00 through 02/03 budgets that were lost due to: commercial space lease at the aquatic complex; reduced swim club rate; Liberty High School District use of the aquatic complex; Concerts in the Park, Snow Day and “free use” grant to community/city organizations for use of Community Center.
General Fund Departmental personnel requests include:
Human Resources Assistant –To relieve existing staff of clerical duties and concentrate on the development and implementation of proactive training.
50% Administrative Assistant II – In an on-going effort to achieve our goal of providing and enhancing customer service, the current Administrative Assistant was relocated to the recently remodeled lobby area. Due to the high volume of phone and foot traffic and passport services, the duties of the position required the elimination of many of its core functions. Shared with Arts Commission.
P.A.L. Program – Position as discussed with Council on January 28, 2003.
Finance Administrative Secretary Reclassification - The department needs have exceeded the clerical capabilities of the current staff. The department currently retains one full-time temporary employee. This reclassification increases the duties and responsibilities of the current Administrative Secretary. The additional personnel will be addressed in the July 1, 2003 budget.
Community Service Officer – This position is requested by the Police Department in order to more effectively and efficiently handle the duties which are currently performed by sworn officers. This move allows for the reassignment of the sworn officer to more critical duties.
Streets Division Manager – As the City grows, this division takes on the increasing role of maintaining City streets, the requirements of the division need to keep up with the City’s growth. This division has not added personnel for two years, as the City grew 25% to 30% in that same time period.
Combination Building Inspector – One Year Contract Term Position. The current growth patterns of the City have evolved beyond the previous concentration on residential growth. The City is currently experiencing a boom in commercial construction with maintaining its previous levels of residential growth. This was unforeseen in the previous budget and the best way to handle this temporary situation is with a term one-year employee instead of full time City staff.
Planning Technician – The same justification as for the Combination Building Inspector holds for a Planning Technician. Phone calls to the department have increased by 50% over the last year and counter customers by 94%. The Department’s request was for two additional Planning Technician’s, however, the City Manager recommends that the mid-year adjustment should be limited to one, with the other additional position re-evaluated as a part of the next year’s budget.
Additional requests include PAL Program expenses, consultant for the implementation of the Fiscal Model, and security measurement for the Community Development Building.
The total adjustments would increase the Fund Balance (reserves) by $1,460,094. It is projected the Fund Balance will be $15,479,354 at June 30, 2003.
Details for the following funds are outlined in Attachment B:
PARK ENTERPRISE FUND
Revenue projections are being increased by $374,000. This is due to the one-time subsidy from the General Fund of $275,000 and increased property taxes of $99,000.
Additional funds are needed for utilities and maintenance at the Community Center and a 50% Administrative Assistant for the Arts Commission, which will be shared with the City Clerk.
The total adjustments would increase the reserves by $258,500, which should cover the balance of expenses until the end of this fiscal year.
It is projected the Net Assets will be $13,723,716 at June 30, 2003.
SOLID WASTE ENTERPRISE FUND
Revenues are being reduced for Public Disposal Charges by $117,000. This source of revenue was expected to start this year and has been postponed until the roadwork associated with the Sunset Industrial Park is complete, thereby allowing safe access to the site.
One Equipment Operator and vehicle are being requested to pick up bulky items not appropriate for our typical residential containers, load transfer trailers and to assemble residential containers that come to us disassembled. In this last year, the City averaged 211 new customers per month.
The total adjustments are $202,400, however we are still projecting that the Solid Waste Enterprise will add $700,000 to the reserves.
It is projected the Net Assets will be $2,140,369 at June 30, 2003.
WATER ENTERPRISE FUND
Revenues are being increased for Base Meter Charges by $200,000, because of continued growth which exceeded conservative projections.
The Department has experienced a reduction of Non-Potable Water use and needs to replace three (3) pumps, which decrease the expenditures by $59,200.
The total adjustments would increase the reserves by $259,200.
It is projected the Net Assets will be $26,092,226 at June 30, 2003.
WASTEWATER ENTERPRISE FUND
Departmental requests include one supervisor position to oversee the new plant and three (3) reclassifications for Operator III, utilities increases ($170,000) and repairs totaling $263,600. The old plant was operated on a five (5) day work week schedule, but the new State Water Resource Control Board requires the new plant be operated 7 days per week. This requirement necessitates hiring staff to cover these mandates. The sewer rate study adopted by Council on December 10, 2002 has included these personnel changes and expenses.
With these adjustments the Net Assets will be $23,963,380 at June 30, 2003.
CAPITAL IMPROVEMENT PROGRAM
Requests for contractual services equal the increases to development revenues. So there is no effect to the Net Assets. This fund is financed through Development Fee transfers. There is never a Net Asset balance for this Fund.
We have attached a chart depicting the growth of City Staff as it relates to Population Growth (Attachment C). Over the past ten (10) years, City staffing has averaged 7.27 employees per 1,000 population. Our current staffing level of 6.86 staff per 1,000 population would indicate that we are a little over 12 people understaffed, if we assume that previous staffing levels were more or less correct. In light of this analysis, the addition of 8 full time staff and 1 term staff would seem appropriate.
We can compare ourselves with other cities as follows:
Division Brentwood Livermore Pleasanton Concord
Parks and Recreation 22 84 54 53
Planning 10 24 17 13
Information Services 5 19 9 9
Attachment A – 02/03 General Fund Budget Amendments
Attachment B – 02/03 Budget Amendments
Attachment C – Personnel Schedule – By Department
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD AMENDING THE 2002/2003 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 departmental requests for the expenditure of City funds; and
WHEREAS, a duly noticed public hearing was held on February 11, 2003.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Brentwood hereby adopts the amendments to the 2002/2003 Budget for the City of Brentwood.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held on the February 11, 2003 by the following vote:
Karen Diaz, CMC
02/03 General Fund Budget Amendments
City of Brentwood City Council
150 City Park Way
Brentwood, CA 94513
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