Transcript 2011/2012 Budget Presentation

WILLIAM A. RAWLINGS, CITY MANAGER
JUNE 21, 2011
“ESTABLISHING A SOLID FINANCIAL
FOUNDATION WHILE PRUDENTLY
PLANNING FOR THE FUTURE”
OVERVIEW
•BUDGET: TEAM
APPROACH
•THE BUILDING OF A COMPREHENSIVE MUNICIPAL BUDGET
•REVENUE
BREAKDOWN
•EXAMINATION OF LONG TERM REVENUES
•ECONOMIC
DEVELOPMENT PLAN
•BRIDGING THE REVENUE GAP
•HOW DOES THIS HELP CREATE THE
•BUDGET
GENERAL PLAN?
HIGHLIGHTS
•BALANCED BUDGET, PERSONNEL, EXPENSES
2
BUDGET: TEAM APPROACH
• STAFF IS PRESENTING A COMPREHENSIVE MUNICIPAL
BUDGET THAT PROVIDES FOR & PLANS FOR THE FUTURE
• STAFF HAS WORKED DILIGENTLY ON A NUMBER OF
REVENUE SCENARIOS FOCUSED ON PROVIDING FOR THE
LONG-TERM FINANCIAL HEALTH OF THE
CITY
• REVENUE GENERATION IS A NECESSARILY KEY
COMPONENT FOR
MENIFEE NOW & IN THE FUTURE
• PERFORMED A STUDY TO DETERMINE THE CITY’S
FUTURE REVENUE
& COST RELATIONSHIP
• PERFORMED A STUDY TO ASSESS CURRENT & AVAILABLE
REVENUE SOURCES
3
 REVENUE
BREAKDOWN
Sales Tax Per Capita
$250
• MENIFEE’S CURRENT REVENUE
STREAMS DO NOT SUPPORT
ENHANCEMENT OF CITY SERVICES
$200
• AS THE CITY CONTINUES TO
OTHER CITIES IN THE REGION
•
*BY SIMPLY EQUALING HEMET AND PERRIS, MENIFEE WOULD GENERATE AN
ADDITIONAL $9.5M IN ANNUAL SALES TAX REVENUE
$60
SALES TAX GENERATION IS
DRAMATICALLY LOWER THAN
$99
$50
$104
• MENIFEE’S TOTAL & PER CAPITA
$100
$112
SOURCES “TYPICAL” CITIES DO
$150
$232
COMPLETE ITS SEPARATION FROM
THE COUNTY, IT DOES NOT YET
HAVE FULL ACCESS TO THE FUNDING
$0
4
 SOLUTION:
FOCUSED ECONOMIC DEVELOPMENT
• STAFF DEVELOPED A DRAFT ECONOMIC DEVELOPMENT
PLAN TO CREATE REVENUE & PROVIDE NEEDED AMENITIES
• REVENUE WILL BE GENERATED BY RESTAURANTS,
RETAIL/COMMERCIAL BUSINESSES AND JOB CREATION
WHICH WILL DRIVE FUTURE BUDGET CYCLES
–
• THE ECONOMIC DEVELOPMENT PLAN WILL DRIVE THE
COMPLETION OF THE GENERAL PLAN BY CREATING
SPECIFIC RETAIL/COMMERCIAL AREAS
• UNTIL THE COMPLETION OF ADDITIONAL FUNDING SOURCE
TRANSFERS FROM THE COUNTY, INCREASED SALES & USE
TAX FROM IMPLEMENTING THE ECONOMIC DEVELOPMENT
PLAN WILL BE THE PRIMARY WAY TO INCREASE REVENUE TO
THE CITY
5
 BUDGET
HIGHLIGHTS
• ECONOMIC DEVELOPMENT IS A MAJOR FOCUS OF THIS & FUTURE
BUDGET CYCLES
• 8 NEW POSITIONS ARE BEING ADDED WITHOUT AN OVERALL
INCREASE OF THE BUDGET
• INCLUDES FUNDING FOR THE FIRST OF THREE YEARS OF COUNTY
LOAN REPAYMENT
• INCLUDES $4.3M IN CAPITAL ROAD PROJECT FUNDS
• INCLUDES THE FORMAL ESTABLISHMENT OF A 25% RESERVE
($6M) & CONTRIBUTIONS FOR RESERVES
• INCLUDES $300K IN CAPITAL REQUESTS (ADMIN SUPPORT,
FINANCE, FIRE STATION IMPROVEMENTS & EMERGENCY EQUIP)
• STAFF IS PRESENTING A BALANCED OPERATING BUDGET
6
 BUDGET
PRESENTATION
• TERRI WILLOUGHBY, FINANCE DIRECTOR, WILL
PROVIDE A HIGH LEVEL OVERVIEW OF THE BUDGET:
 REVENUES VS. EXPENDITURES
 FY 2011/12 SOURCES OF REVENUES
 EXPENDITURES BY TYPE (I.E. SALARIES/SERVICES &
SUPPLIES)
 MAJOR DIFFERENCES FROM FY 2010/11
 STAFFING OVERVIEW BY DEPARTMENT
 CAPITAL REQUESTS
 ENDING FUND BALANCE
 OTHER FUNDS: SUMMARY
 CIP: FORECAST FOR THE FUTURE
7
8
 BUDGET IS A FINANCIAL PLAN OF EXPENDITURES
• COUNCIL SETS GOALS AND POLICY
• BUDGET ALLOCATES RESOURCES TO FOLLOW AND
MEET THESE GOALS
• BUDGET PROVIDES A GUIDE TO STAFF TO CARRY OUT
COUNCIL POLICY
9

BALANCED BUDGET WITH CONTINUED EMPHASIS ON
ENHANCING SERVICE LEVELS

ENHANCED FUNDING FOR ECONOMIC DEVELOPMENT
PROGRAM




ADDED EIGHT (8) ADDITIONAL POSITIONS
INCLUDED FIRST OF THREE YEARS OF REPAYMENT OF COUNTY
LOAN
INCLUDED FUNDING FOR CONTRIBUTION TO RESERVES
CAPITAL REQUESTS TO SUPPORT NEW PERSONNEL AS WELL AS
IMPROVEMENTS TO ENHANCE SERVICE FOR RESIDENTS

CAPITAL IMPROVEMENT PLAN INCLUDES $4.3 MILLION IN
NEW PROJECTS FOR FISCAL YEAR 11/12
10
$25,000,000
$24,500,000
$24,000,000
$23,500,000
$23,000,000
REVENUES
EXP.
$22,500,000
$22,000,000
$21,500,000
$21,000,000
$20,500,000
$20,000,000
2010/11
2011/12
11
FY 11/12
4%
5%
11%
36%
10%
16%
18%
PROPERTY TAXES
SALES TAX
MVLF
BLDG/PLNG/ENG FEES
FRANCHISE FEES
COUNTY AUGMENTATION
MISC. OTHER REVENUE
12
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
SALES TAX
PROP TAX
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
-
FY 10/11
FY 11/12
13
DEPARTMENT
BUDGET
AMOUNT
POLICE
$9,116,631
37.1%
FIRE
6,962,340
28.3%
ADMINISTRATION
4,000,747
16.3%
COMMUNITY DEVELOPMENT
2,151,318
8.7%
PUBLIC WORKS/ENGINEERING
1,181,803
4.8%
ECONOMIC DEVELOPMENT
983,993
4.0%
CITY COUNCIL
185,969
.8%
$24,582,801
100%
TOTAL BUDGET:
% OF
BUDGET
14
2%
1%
1%
12%
SALARIES & BENEFITS
SUPPLIES & SERVICES
CAPITAL
84%
COUNTY LOAN
REPAYMENT
RESERVE FUNDING
15
5%
4%
1%
Public Safety
Admin
9%
16%
65%
Community
Development
Public
Works/Engineering
Economic
Development
City Council
16
DEPARTMENT
ECONOMIC
DEVELOPMENT:
FY 10/11
FUNDING
219,200
FY 11/12
FUNDING
NOTES
983,993 INCREASED EMPHASIS ON PROGRAM
NONDEPARTMENTAL
-0-
ADDED FUNDING FOR 1/3 OF COUNTY
LOAN REPAYMENT AND RESERVE
366,667 FUNDING.
NONDEPARTMENTAL
-0-
333,333 ADDED FUNDING TO INCREASE RESERVES
VARIOUS
-0-
ADDED 8 NEW POSITIONS
ADDED ADDITIONAL MODULE OF
FINANCE
434,665
PLANNING
1,731,860
456,953 ACCOUNTING SOFTWARE
ONE-TIME EXPENDITURE OF GENERAL
PLAN PREPARATION INCLUDED IN FY
641,386 10/11
17
POSITION TITLE
DEPARTMENT
HIRE DATE
ADMINISTRATIVE ANALYST/GRANTS
SPECIALIST
CITY MANAGER
10/01/11
ASSISTANT PUBLIC WORKS DIRECTOR
PUBLIC WORKS
9/01/11
ASSOCIATE ENGINEER
ENGINEERING
1/01/12
ASSOCIATE PLANNER
PLANNING
1/01/12
BUSINESS LICENSE CLERK
FINANCE
10/01/11
CODE ENFORCEMENT OFFICER I
CODE ENFORCEMENT
9/01/11
CODE ENFORCEMENT TECHNICIAN
CODE ENFORCEMENT
9/01/11
ECONOMIC DEVELOPMENT DIRECTOR
ECONOMIC
DEVELOPMENT
7/01/11
18
DEPARTMENT
REQUEST
AMOUNT
CITY COUNCIL
PODIUM DOORS FOR CHAMBER
$5,000
INFORMATION
TECHNOLOGY
COMPUTER EQUIPMENT
35,000
EMERGENCY MGMT
EMERGENCY EQUIPMENT
53,800
FINANCE
ADDITIONAL FINANCE SOFTWARE
55,370
NON-DEPARTMENTAL
OFFICE FURNITURE/NEW EMPLOYEES
36,000
BUILDING & SAFETY
RACK FOR PLANS
CODE ENFORCEMENT
EQUIPMENT/VEHICLES FOR NEW STAFF
1,000
87,300
CONFERENCE BOOTH & VIDEO PRODUCTION
ECONOMIC DEVELOPMENT
EQUIPMENT
POLICE
RADIOS
14,200
FIRE
BUILDING IMPROVEMENTS
20,000
TOTAL CAPITAL
5,000
$312,670
19
TOTAL FUND BALANCE
12,000,000
10,000,000
8,000,000
6,000,000
FUND BALANCE
4,000,000
2,000,000
-
FY 08/09
(AUDITED)
FY 09/10
(AUDITED)
FY 10/11
FY 11/12
(PROJECTED) (PROJECTED)
20
Fund
Gas Tax
Beginning
Fund BalanceProjected
Revenues
Ending
Fund BalanceProjected
Expenditures
$71,476
$2,392,367
$2,460,000
$3,843
1,022,870
892,000
1,911,360
3,510
TCRF
433,761
500
10,000
424,261
SLESF
0
100,000
100,000
0
146,691
79,750
79,000
147,441
RBBD
1,269,845
1,357,500
10,000
2,617,345
CSAs
2,740,933
2,053,005
2,177,402
2,616,536
DIF
3,802,454
1,801,626
0
5,604,080
<4,424>
25,700
21,000
276
2,186
123,260
57,152
68,294
32,863
31,520
30,000
34,383
$9,518,655
$8,857,228
$6,855,913
$11,519,970
Measure A
AQMD
Veteran ‘s
Memorial
EMPG
LLMD 89-1-C
Total
21


GAS TAX: FUNDED TAX ON FUEL USED TO PROPEL A MOTOR
VEHICLE OR AIRCRAFT. ALLOCATED TO STATE’S
TRANSPORTATION DEBT SERVICE, STATE PROGRAMS FOR
CAPITAL IMPROVEMENTS; AND 44% TO LOCAL AGENCIES.
LOCAL AGENCY SHARE CAN BE USED FOR PLANNING,
CONSTRUCTION, IMPROVEMENT, MAINTENANCE AND
OPERATION OF PUBLIC STREETS.
MEASURE A: VOTER-APPROVED FUNDS FROM LOCAL SALES
TAX FOR TRANSPORTATION


TCRF: TRANSPORTATION CONGESTION RELIEF FUND
SLESF: SUPPLEMENTAL LAW ENFORCEMENT SERVICES
FUNDS - FROM STATE VEHICLE LICENSE FEES FOR LAW
ENFORCEMENT.
22

AIR QUALITY MANAGEMENT DISTRICT: FUNDING FROM
VEHICLE REGISTRATION FEES TO FUND PROJECTS THAT
REDUCE AIR POLLUTION.


RBBD FUNDS: ROAD AND BRIDGE BENEFIT DISTRICT.
FUNDING FOR CAPITAL PROJECTS.
CSA: COMMUNITY SERVICE AREA: SPECIAL CHARGES ARE
LEVIED TO PROVIDE FUNDING FOR VARIOUS TYPES OF
MAINTENANCE WITHIN EACH AREA.

DIF: DEVELOPMENT IMPACT FEES: FEES PLACED ON THE
DEVELOPMENT OF LAND OR CONDITIONS REQUIRED FOR
THE APPROVAL OF A DEVELOPMENT PROJECT TO FUND THE
FUTURE IMPACT OF DEVELOPMENT.
23
 VETERAN’S
MEMORIAL FUND: FUNDED BY
DONATIONS.
 EMPG: EMERGENCY
MANAGEMENT
PERFORMANCE GRANT. PROVIDES FUNDING
TO ASSIST LOCAL GOVERNMENTS IN
PREPARING FOR ALL HAZARDS.
 LLMD
89-1: SPECIAL DISTRICT SET UP TO
PROVIDE LIGHTING AND LANDSCAPING WITHIN
A CERTAIN AREA. FUNDED BY ASSESSMENTS.
24
NEW PROJECTS FOR FISCAL YEAR 11/12
NEWPORT ROAD: HAUN TO MENIFEE
$1,150,000
SLURRY SEAL PROGRAM
760,000
NEWPORT ROAD SIGNAL CONSTRUCTION
200,000
GARBANI ROAD REPAIRS
400,000
STREET STRIPING
100,000
MAINTENANCE
ADMIN COST RECOVERY
TOTAL:
1,700,000
71,630
$4,381,360
25
 SLOW BUT STABLE ECONOMIC RECOVERY
 INCREASE EXISTING REVENUE SOURCES
 DEVELOP ADDITIONAL REVENUE SOURCES
TO INCREASE DIVERSITY OF REVENUE
 MAINTAIN PRUDENT SPENDING PLAN
26
 STATE
BUDGET
• NEED TO “CONTROL OUR OWN DESTINY”
• POSSIBLE EFFECTS MAY INCLUDE:
 POSSIBLE ELIMINATION OF SLESF FUNDING
($100,000)
 BOOKING FEES: THE CITY MAY BE RESPONSIBLE FOR
BOOKING FEES AGAIN. THE EFFECT IS NOT KNOWN AT
THIS TIME.
 NEW
LEGISLATION
 LEGISLATION PENDING TO INCREASE USE TAX
COLLECTIONS ON INTERNET SALES
27
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