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HomeMy WebLinkAbout101-FY 2007/08 Operating Budget Adoption.pdf SARATOGA CITY COUNCIL MEETING DATE: AGENDA ITEM: ____ June 20, 2007 ORIGINATING:CITY MANAGER: Finance & DEPT: AdministrativeServicesDave Anderson PREPARED BY: DEPT HEAD: Mary Furey Mary Furey SUBJECT: Adoption of Fiscal Year 2007/08 Operating Budget RECOMMENDED ACTION Adopt resolution approving the Proposed FY 2007/08 Operating Budget, directing staff to incorporate within the final adopted budget any changes related to Council approved meet-and- confer process or management compensation plan amendments, classification adjustments, minor corrections, carryforward appropriations, changes due to more refined estimates, grant approvals, and claim reimbursements, or additional direction from Council upon adoption of the budget. BACKGROUND The City’s Proposed Operating Budget reflects appropriations within the General Fund, Special Revenue Funds, Internal Service Funds, and several Trust and Debt Service Funds, to provide for the City’s service operations, administration, and obligations. The Capital Improvement Budget will be brought forward later this summer and will reflect the source and use of Capital Project Funds for the various infrastructure and capital project activity the City undertakes. The City’s Operating Budget document is structured into a departmental format which defines the departmental oversight, key program services, and significant projects or initiatives for the fiscal year. Summary level revenue and expenditure budget appropriations and assigned personnel schedules are also included within each department program to identify the resources used to provide these services and operations.The financial and staffing schedules include prior year information for historical reference. The Financial Summaries section of the budget, compiles the financial and staffing information into various schedules to provide users with a summary level overview of funding sources and uses from different perspectives. REPORT DISCUSSION A public hearing was held on June 6, 2007 to review the City of Saratoga’s Proposed FY 2007/08 Operating Budget and obtain the community’s input. The Proposed Operating Budget sustains service levels, operations, and obligations as are currently in place, along with several added enhancements for FY 2007/08. Per Council’s earlier direction, new appropriations were 1 included for: increased public safety patrol hours; the net cost of converting two temporary positions into City staff positions; one additional staff position for Commission and Council assistance and community outreach support; and for publication costs of a community newsletter and several operational expenses to support commissions. These added enhancements are funded with the increase in Property Tax revenues resulting from the passage of AB117. The City’s ongoing cost increases for salary and operating expenditure are offset with minimal increases in other tax and service revenues, as well as staff’s ongoing commitment to minimize costs. The following Total Fund Summary schedule provides a fund-level overview of the Proposed Operating Budget, with the inclusion of debt service and trust fund operations, and funding transfers into several Capital Project Funds from the Operating Budget Funds. Total Fund Summary Source and Use of Funds EstimatedRevenuesExpendituresEstimated Fund Balance&& Use of Fund Balance Fund Category7/1/2007Transfers InTransfers OutCarryforward 6/30/2008 Operating Funds General Fund $ 4,960,556$ 16,377,377$ 16,372,997$ 125,750$ 4,839,186 Special Revenue Funds CDBG Program Fund 1 170,298 138,090 308,388 - - Housing & Rehabilitation Pgm 64,615 13,000 13,000 - 64,615 2 Development Regulations 1,037,303 158,617 878,686 - - Environmental Funds 3 680,641 680,641 - - - 4 Gas Tax Fund 113,903 113,903 - - - 5 Landscape & Lighting Districts 269,064 441,649 527,362 183,351 - Internal Service Funds - Equipment Replacement Funds 8,574 200,000 164,000 - 44,574 IT Equipment Replacement 6 287,624 52,103 132,350 207,377 - Building Maintenance 19,790 739,311 724,311 - 34,790 Equipment Maintenance - 201,595 196,595 5,000 - IT Services - 369,808 369,808 - - Office Stores Fund - 85,000 65,000 - 20,000 Risk Management/Liability Ins - 291,036 291,036 - - Workers Compensation - 247,000 246,875 125 - Total Operating Funds 7,612,369 19,155,969 20,364,883 125,750 6,277,705 Debt Service 7 2001 Series GO Bonds 722,423 1,015,906 1,021,106 717,223 - Total Debt Service 722,423 1,015,906 1,021,106 717,223 - Trust & Agency Funds 8 Library Capital Maintenance 667,880 15,000 57,000 625,880 - KSAR 63,185 2,500 - 65,685 - Total Trust & Agency Funds 731,065 17,500 57,000 691,565 - Capital Funds (partial list - to be updated with CIP) Environmental Project Fund - 680,641 680,641 - - Gas Tax Project Fund - 113,903 113,903 - - Facility Projects - 100,000 100,000 - - Pavement Mgmt Projects - 300,000 300,000 - - CDBG Projects - Signals - 74,526 74,526 - - CDBG Projects - Prior Yr ADA - 170,298 170,298 - - Total Capital Funds 1,439,368- 758,727 680,641 - TOTAL ALL FUNDS$ 9,065,856$ 21,628,742$ 22,201,715$ 125,750$ 8,367,134 2 The City Council reviewed the Proposed FY 2007/08 Operating Budget as part of the Public Hearing held on June 6, 2007. Council did not recommend changes to the proposed budget at that time, but did request follow-up information to provide Council with some trend linkage between the previous financial structure and the new structure. The graph and schedule shown below displays 10 years of General Fund Revenues and Expenditures, with the graph using the Expenditures Net of CIP Transfers amounts to more accurately reflect the ongoing operating revenue and expenditure trends. The FY 2007/08 proposed budget appropriations are adjusted to the prior year’s financial structure for this historical reference purpose only. General Fund Revenues & Expenditures (Net of CIP Transfers) General Fund 10 Year History $14,000,000 $18,000,000 $16,000,000 $12,000,000 $14,000,000 $10,000,000 $12,000,000 $8,000,000 $10,000,000 $8,000,000 $6,000,000 $6,000,000 $4,000,000 $4,000,000 $2,000,000 $2,000,000 $0 $0 Revenues & Transfers InExpenditures & Transfers Out Revenues & Transfers InExpeditures Net of CIP Revenues & Expenditures & Transfer Out Expenditures % Change Transfers InTransfers Outto CIPNet of CIPfrom Prior Year Fiscal Year 1 1996/97 $9,352,517 $8,480,370 -$ $8,480,370 1997/98 6,407,240 5,553,095 - 5,553,095 N/A - PY info not valid to determine change 1998/99 6,857,879 5,778,277 - 5,778,2774.06% 1999/00 8,751,181 6,794,480 - 6,794,48017.59% 2000/01 10,638,677 7,719,417 - 7,719,41713.61% 2 2001/02 11,314,033 16,489,070 7,606,869 8,882,20115.06% 2002/03 11,627,322 13,391,287 4,449,410 8,941,8770.67% 2003/04 9,999,693 10,585,635 2,434,621 8,151,014(8.84)% 2004/05 10,457,578 9,507,599 898,733 8,608,8665.62% 2005/06 11,864,857 9,975,193 392,000 9,583,19311.32% 2006/07 Est 12,630,833 13,300,000 2,302,136 10,997,86414.76% 3 2007/08 R/Bud 12,918,356 12,002,471 400,000 11,602,4715.50% Please note: Actuals are from audited records and include budget adjustements, fund transfers, and auditor adjustments. In years where there is a negative cash flow, the City has transferred funds to the CIP from fund balance. (1) Detailed information for the General Fund is not available for FY 1996/97; the above amounts include Community Development revenues and expenditures which cannot be isolated from these totals because the detail records were contained in the old finan (2) Transfers from the General Fund to CIP Projects began in FY 2001/02 (3) FY 2007/08 numbers reflect a restrusturing of Budget numbers to align with Prior Year Funding structure. 3 As the above schedule shows, the adjusted appropriations for FY 2007/08 reflect an operating budget increase of 5.50%. In essence, this expenditure increase (as adjusted) reflects the additional $400,000 programmed for budgetary enhancements, and another $200,000 in labor and contract adjustments for ongoing operational expenses, meaning budgetary appropriations are consistent with the prior year. General Fund The General Fund budget represents the majority of the City’s service operations. The following two charts provide a graphical overview of the FY 2007/08 proposed budgetary appropriations for General Fund revenues and expenditures by department. As explained in the public hearing, FY 2007/08 budgetary appropriations reflect a restructuring of funds and programs within the City’s operations to conform to accounting and budgeting standards. Prior year’s figures were adjusted within the General Fund, but are not fully consistent with current budgeted figures as some budget appropriations crossed funds in the restructuring. General Fund Revenues & Transfers In By Department Non- Departmental 72.3% Transfers In Public Safety 1.5% 2.7% Recreation Administrative 6.5% Services 0.2% Community Public Works Development 3.5% 13.4% 2004/052005/062006/072006/072007/08% of DepartmentsActualsActualsAdjustedEstimatedProposedTotal Council & Commissions$ 250$ -$ 16,100$ 1,4000.0% $ - City Manager's Department - 500 5,0000.0% - - Administrative Services - 29,797 - 31,112 28,5000.2% Community Development1,888,791 2,359,567 1,690,850 1,810,230 2,192,24013.4% Public Works 181,893 143,944 276,100 296,748 573,1663.5% Recreation 751,810 900,050 1,007,000 999,222 1,058,4506.5% Public Safety 446,507 510,273 366,000 492,803 434,0552.7% Non-Departmental 8,818,596 10,527,769 11,003,177 11,043,637 11,844,63572.3% Total General Fund Revenues12,087,847$$14,471,400$14,343,127$14,690,352$16,137,44698.5% Fund Transfers In: 1,069,374 658,882 448,700 448,700 239,9311.5% Total Operating Revenues 13,157,221$$15,130,282$14,791,827$15,139,052$16,377,377100.0% 4 General Fund Expenditures & Transfers Out By Department Public Works 26.8% Recreation 9.3% Community Development Public Safet y 15.2% 24.2% Administrative Services Non- 5.5% Departmental 7.2% City Manager's Operating Department Council & Transfers Out 7.9% Commissions 2.4% 1.3% 2004/052005/062006/072006/072007/08% of DepartmentsActualsActualsAdjustedEstimatedProposedTotal Council & Commissions$ 258,017$220,506$327,025$306,330$212,0841.3% City Manager's Department 838,972752,867918,596931,2271,291,9377.9% Administrative Services 758,776767,7731,039,2001,000,688905,2035.5% Community Development 1,302,6281,653,7021,783,8961,829,4902,494,67315.2% Public Works 3,157,0072,164,9703,885,6953,810,3244,394,68826.8% Recreation 1,526,6801,599,7951,954,0211,840,2141,526,1969.3% Public Safety 3,654,6753,439,4413,788,0083,771,7853,964,46724.2% Non-Departmental 731,754823,3411,159,7651,009,6091,183,7487.2% Total General Fund Exp$12,228,509$11,422,395$14,856,206$14,499,667$15,972,99797.6% Operating Transfers Out 898,7331,210,3952,487,0812,442,136400,0002.4% Total Exp & Transfers Out13,127,242$$12,632,790$17,343,287$16,941,803$16,372,997100.0% A significant change, as reflected in the proposed FY 2007/08 General Fund budget, is the realignment of staffing and the elimination of capital project activity within the General Fund. This change primarily impacts the Public Works Department budget appropriations from prior years. Also as explained in the public hearing, another impact reflected in the current year’s budget appropriations is the implementation of internal service funds to allocate operational support services and insurance costs at a program level expense to more fully capture the cost of providing services. The result of this change is a departmental level increase in General Fund expenditures, which is directly offset with an increase in Internal Service Fund revenues on a city wide basis. Changes as a result of direction from Council and/or identified by staff as a clean-up item will be included in the final budget, per Council’s adoption of the FY 2007/08 Operating Budget resolution at the June 20, 2007 Council Meeting. 5 CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION The City would not adopt an operating budget for FY 2007/08. ALTERNATIVE ACTION N/A FOLLOW UP ACTION Prepare FY 2007/08 Adopted Operating Summary and Detail Budget documents ADVERTISING, NOTICING AND PUBLIC CONTACT N/A ATTACHMENTS A: Resolution to Adopt the Fiscal Year 2007/08 Operating Budget 6 Attachment A A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA ADOPTING THE FISCAL YEAR 2007/08 OPERATING BUDGET WHEREAS, the City Council held a public hearing on the proposed operating budget for Fiscal Year 2007/08 on June 6, 2007; WHEREAS, Section 2-20.050(i) of the Code of the City of Saratoga requires the City Manager to prepare and submit the proposed annual budget to the City Council for its approval; WHEREAS, the City Manager did submit a proposed budget for FY 2007/08 to the City Council; and WHEREAS, the City Council has considered and reviewed the proposed budget during a public hearing; and WHEREAS, the City Council gave staff direction to adopt the Fiscal Year 2007/08 operating budget as proposed; NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Saratoga hereby adopts the Fiscal Year 2007/08 Operating Budget as shown in the Total Fund Summary – Source and Use of Funds schedule on page 2 of the budget adoption report; AND BE IT FURTHER RESOLVED, that the final adopted budget includes approved carry-forward appropriations for unspent operating grants and pass-throughs from FY 2006/07, and that there be carried forward from prior years within each fund an amount sufficient to cover approved outstanding encumbrances as of June 30, 2007; AND BE IT FURTHER RESOLVED , that the City Council hereby directs staff that any changes or impacts resulting from: Council approval of the meet and confer process or management compensation plan; from classification adjustments or miscellaneous corrections; 7 from changes due to more refined estimates, grant approvals, or claim reimbursements; or from further City Council consensus direction received on June 20, 2007 be incorporated within the final FY 2007/08 Operating Budget; AND BE IT FURTHER RESOLVED, that the Finance and Administrative Services Director is directed to record these changes into the City’s Accounting records in accordance with appropriate accounting practices. The above and foregoing resolution was passed and adopted at a regular meeting of the Saratoga th City Council held on the 20 day of June, 2007, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Aileen Kao, Mayor City of Saratoga ATTEST: Cathleen Boyer, City Clerk of the City of Saratoga 8