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HomeMy WebLinkAbout02- Finance CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: Barbara Pachon Subject: Mid-Year Budget Review for Director of Finance FY 2009-2010 Dept: Finance ORIGINAL Date: March 8, 2010 Council Date: 3111110 Synopsis of Previous Council Action: August 17, 2009 Resolution 2009-305 adopted approving the City of San Bernardino's final budget for Fiscal Year 2009-2010 November 18, 2009 Presented FY 2009-2010 1st Quarter Budget Report to Ways and Means Committee December 21, 2009 Council authorized the Director of Finance to amend the FY 2009-2010 budget as outlined in the staff report. Recommended motions: That the FY 2009-2010 Mid-Year Report be received and filed and that the Director of Finance be authorized to amend the FY 2009-2010 budget as outlined in the staff report. � �� Signatu e Contact person: Barbara Pachon, Director of Finance Phone: 5242 Supporting data attached: Staff Report, Attachment Ward: All FUNDING REQUIREMENTS: Amount: Source: Finance: Council Notes: Agenda Item No. 3 . 11 -10 CITY OF SAN BERNARDINO -REOUEST FOR COUNCIL ACTION STAFF REPORT INTRODUCTION Attached is the FY 2009-2010 Mid-Year Budget Report. This report is designed to keep the Mayor and Council informed of the current financial position of the City and to provide an early indication of next fiscal year's budget outlook. This report provides information regarding estimated fund balances available for next fiscal year's budget preparation. In November and December 2009 the Finance Department presented the first quarter budget report which projected about a $4.9 million budget shortfall. This budget shortfall resulted from several factors including the continued decline in revenues from the poor economic conditions, payment policy changes by the State for sales tax which helped to improve the State's cash flow problems but negatively impacted local governments, and notification from the County Assessor that City property values had declined approximately 17% when the FY 2009-2010 budget had only assumed a 6% decline in property values. Through a series of budget balancing strategies that included such things as reviews/audits of all revenue estimates and funds, ensuring that all direct costs are allocated to appropriate funding sources, evaluation of all General Fund programs for savings and funding opportunities from other eligible sources and evaluation of using fund balances/reserves the $4.9 million budget short fall was eliminated. In January, the Finance Department, as well as each individual department, began the annual Mid-Year budget review process to evaluate in detail the revenues and expenditures for the first half of the fiscal year to determine if actuals were on target with the new projections from the first quarter budget review. Unfortunately it was determined that another $5 million budget short fall was projected in the General Fund for FY 2009-2010 due to additional revenue declines. However, after completing the audits of various trust accounts that were initiated and discussed during the first quarter budget review, the budget shortfall was reduced to about $3.2 million. Outlined below, is a detail analysis regarding the Mid-Year Report and the budget balancing measures that are now being recommended for approval by the Mayor and Council to again bring the General Fund Budget into balance. The attached schedules of the Mid-Year Report provide the updated projections for not only the General Fund but for all other operating funds in the City. Each schedule of the Mid-Year Report has been color-coded for easy reference and identification. The Summary of Revenues, Expenditures, and Transfers (page 1, blue report) provides a summary overview of all the major funds in the City. The first column of numbers provides the audited beginning budget fund balances for each fund. The last column of numbers on the report indicates the estimated balances for each fund at 6/30/10. Excluding the General Fund, which is the top line on this report, all other funds appear to be on target with what was estimated in the FY 2009-2010 budget. 1 THE GENERAL FUND The "Estimated Revenues and Expenditures — General Fund" report (page 2, pink sheet) provides an overview of the General Fund. The first column provides the updated adopted budget for the General Fund for FY 2009-2010. The second column provides the current updated estimates for all the General Fund revenues and expenditures. The third and final column provides the variance between what was budgeted and what is now estimated. In summary, the General Fund revenues and transfers in are estimated to be about $3.2 million less than the budget. General Fund expenditures are estimated to have almost $1.6 more in savings than what was estimated which leaves a remaining budget shortfall of about $1.6 million. Staff is recommending an internal loan be issued from the Regional DIFF to the General Fund to close this remaining shortfall. General Fund Revenues The "Estimated Revenues and Expenditures - General Fund" report provides a summary of the General Fund revenue estimates by category. The "General Fund Mid-Year Revenue Report" (pages 4-6, yellow sheets) provides line item detail for projected General Fund revenues. In total, estimated General Fund revenues are projected to be $3,437,400 less than budgeted. This will be the third year in a row that City revenues have been less than budgeted due to the decline in the economy. Discussed below are some of the major highlights regarding General Fund revenues: Property Tax — Supplemental property tax is estimated to have a projected decline of$154,800 but this decline is anticipated to be off set by slight increases in the other areas of property tax revenue. It is anticipated that the Property Tax revenue will be over budget by a net $277,300. Sales Tax revenues for FY 2009-2010 are anticipated to continue to decline. Based on collections to date, the sales tax revenues are now projected to be an additional $650,000 less than the adjusted budget. This additional Sales Tax revenue decline is after the budget had already been reduced by almost $3 million from the First Quarter Budget Review. Utility User Tax revenue is projected to be about $1.9 million less than original projections. During the first quarter budget review it was noted that utility user tax revenue was below budget estimates but at that time Finance did not recommend any adjustments to the budget as it was hoped that during the up coming winter months this revenue would increase. Unfortunately it has been a pretty mild winter which means utility consumption is low. Also, due to the poor economy fewer utilities are being used by both residential and business customers. For the first time the City is seeing a decline in utility user tax revenue from not only gas and electric but also telecommunications companies. Measure Z-District Tax revenues are estimated to be lower than the original budget projections. Approximately $850,000 less will be collected in FY 2009-10 for a total of$5,250,000. In FY 2007-2008 the City actually received $6,511,475 in revenue from Measure Z but due to the poor 2 economic conditions and businesses closing it is anticipated the City is going to receive almost $1.3 million less in FY 2009-2010 than it did two years ago in FY 2007-2008. Transient Occupancy and Business Registration revenues are also anticipated to be less than originally estimated but at this point appear to be on target for collecting the current adjusted budget amounts of$1,850,000 and $5,685,000 respectively. At the first quarter budget review Transient Occupancy and Business Registration revenue budgets were decreased by a total of $1.5 million due to the down turn in the economy. Projections at this point are that both revenue sources will meet current budget estimates. Licenses and Permits revenue, highly dependent on building activity, is also for the most part not doing well. Overall, the category (not including business license) is expected to collect $2,387,500, which is approximately $413,000 less than budgeted. On Site Inspection Fees and On Site Plan Check Fees are anticipated to have the largest shortfalls in this category. Fines and Penalties revenue is estimated to bring in about $643,900 more than the budget amount. This increase in revenue is from General Fine collections, the City's Administrative Citation and Administrative Civil Penalty programs. Interest Earnings are estimated to be about $279,500 less than budget due to the lower cash levels the City has and lower investment rates. Motor Vehicle in Lieu (VLF) revenue is also expected to be lower than budget projections by $325,000 for a revised estimate of$400,000. Based on sales tax data, there have been fewer car sales in FY 2009-2010 than in past years so this accounts for most of the shortfall. Overall, the revenue category of Charges for Services is expected to be lower than original budget estimates. A net loss of $1,389,100 is estimated at this time. Some of the more significant changes in this category are: Weed Abatement revenues are projected to end the fiscal year with$146,200 less than originally forecasted in the budget. This decrease revenue reflects that more abatements are staying as unpaid liens on property and will be paid at some point in the future when properties are sold. PropertyBuilding Abatement revenues are projected to be $125,500 lower than originally estimated in the budget. This decrease is due to the same reasons as stated above for Weed Abatements. Non Subdivision Street Improvement Fees will also fall short of budget projections by approximately $170,000. This decrease is also due to the poor economy and lack of development in the city. Single Family Rental Inspection Program - this new program in its second year is projected to have revenues fall short of budget estimates by approximately $312,200. 3 However there will be a corresponding expenditure savings in the program that will offset this revenue shortage. The Miscellaneous revenue category is projected to collect about $2 million more than the original budget. One of the budget balance strategies initiated as part of the 1" Quarter Budget Review was to perform audits/reviews of all revenue sources which included Department Trust Accounts. Now that these Trust Account audits/reviews have been completed, there was additional revenues identified that needed to be booked into the General Fund. Most of the additional revenues came from Development Services Bond/Deposit Trust accounts. Reviews of these Trust Accounts determined that some older funds still being held in trust should revert to the General Fund because in many cases the deposits had already been repaid but out of the General Fund instead of the Trust Account. Now that Development Services records all deposits through their permit plus system these types of coding errors do not happen as they did prior to using the permits plus system. General Fund Expenditures The "Estimated Revenues and Expenditures - General Fund" report also provides a list by department of estimated General Fund expenditures. General Fund expenditures (including transfers out) are projected to be approximately $135,620,900. Although General Fund departmental budgets and transfers-out overall show a savings of$2,680,400, it is important to remember that a projected savings goal of $1,100,000 was already factored into the Adopted Budget. Compared to this budgeted vacancy factor, expenditure savings are estimated to be $1,580,400 more than what was factored into the adopted budget. Generally speaking, for most departments, the projected savings is generated from vacant full-time positions being filled at a slower rate. Savings has also been achieved by reductions in travel, prudent spending by all departments and the continued 5% voluntary reduction in contract service costs and supply costs from vendors. In reviewing Department expenditures anticipated for the remainder of the fiscal year most Departments will have spending adjustments between categories (i.e. Personnel, M&O, Contractual, Capital, etc.) similar to previous fiscal years. After accounting for these category spending adjustments, all but two Departments are anticipated to have savings in their budgets this year. Only the City Attorney and Fire Department are anticipated, at this point, to need to spend more than their total appropriated budget amount. The Fire Department is anticipated to be over budget by approximately $669,300 for several reasons. First, the Fire Department responds to mutual aid calls and the City has to up front the costs for these calls and then will eventually be reimbursed for almost all of these expenses. Second, the Fire Department has had several of its safety employees out for extended periods of time on disability. Each time an employee is out the Fire Department must back fill the vacant position paying time and half overtime. Although the Fire Department is anticipated to spend about $887,000 less in overtime than the previous year, they are going to spend about $300,000 more than what was budgeted due to the mutual aid responses and back filling of vacant positions. The remaining budget overage by the Fire Department is from unbudgeted payoffs of accrued time on the books when an employee terminates or retires. 4 General Fund Loan from Regional DIFF As discussed above, the General Fund revenues and transfers in are projected to be about $3,209,800 short of current budget estimates. General Fund expenditures and transfers out are projected to have about$1,580,400 more in savings than originally anticipated in the budget which will help reduce the revenue shortfall impact. The remaining budget shortfall of $1,629,400 ($3,209,800 - $1,580,400) is recommended to be covered by a short term loan from the City's Regional DIFF account. The City's Regional DIFF account currently has about$7 million and Development Services estimates that about $5 million of this fund are going to be needed over the next 18-24 months to cover the City's share of various eligible capital projects(i.e. freeway, bridge, etc. projects). Based on this information,the City can borrow the $1,629,400 needed to cover the FY 2009- 2010 budget shortfall and repay it in FY 2011-2012 with no impact to these capital projects. It will be mandatory for the General Fund to repay these funds in FY 2011-2012 as they will have to be available and spent on the eligible capital projects. Measure Z District Tax Included again in this year's mid-year report is the "Estimated Revenues and Expenditures — Measure Z District Tax" report ( page 3, white with yellow highlights sheet) which summarizes budgeted and projected revenues and expenditures within the General Fund that are related specifically to the recently voter-approved Measure "Z" general tax. As discussed previously, the Measure Z revenues are estimated to be short of budget estimates by $850,000. Some of the revenue shortfall will be offset by anticipated expenditure savings but the general fund will still have to cover about $390,200 of Measure Z expenditures. OTHERFUNDS The Special Revenue Funds Revenue Report (pages 7-11, green report) provides a three-year history and updated revenue projections for funds other than the General Fund (Special Revenue Funds, Internal Service Funds, and Enterprise Funds). Estimated expenditures for these funds can be found summarized on the Summary of Revenues, Expenditures, and Transfers Report (page 1, blue report). Based on the updated revenue and expenditure projections for all other funds, the ending balances at June 30, 2010 appear to be on target to what was estimated in the FY 2009-2010 adopted budget. Capital Project Funds—For most Capital Project Funds it is assumed that any budgeted projects not completed in FY 2009-2010 will be carried over into the new fiscal year; therefore no savings in expenditures is anticipated. Projects have been budgeted in full, although, in reality, their completion time spans multiple fiscal years. During the FY 2010-2011 CIP budget preparation process, the status of all outstanding projects will be further evaluated. Workers Compensation and Liability Funds — Because of GASB accounting rules, the City is required to show all of the City's unfunded liability for potential claims and judgments in both funds (in essence what the amounts would be if every potential claim and judgment had to be paid at one time). Therefore, as presented in the Adopted Budget, these funds have significant 5 i deficit balances. The City, ver the course of the last several ears has worked to reduce these tY Y deficits by increasing chargebacks to other departments and reducing costs when possible. I CONCLUSION The FY 2009-2010 Mid-Year Budget Report is one of the first steps in beginning the FY 2010- 2011 budget preparation process. The estimates developed during the FY 2009-2010 mid-year process provide the foundation for estimating the City's available fund balances for FY 2010- 2011. Since the current FY 2009-2010 budget includes about $13 million of one-time, non- recurring budget balancing items, it is anticipated that the FY 2010-2011 budget process is going to be again very difficult. The Finance Department will keep the City Manager, Mayor, and Council updated on estimated balances as new information becomes available. RECOMMENDATION That the FY 2009-2010 Mid-Year Budget Report be received and filed and that the Director of Finance be authorized to amend the FY 2009-2010 budget as outlined in the staff report. 6 CITY OF SAN BERNARDINO FY 2009-2010 SUMMARY OF REVENUES,EXPENDITURES,AND TRANSFERS ESTIMATE I ESTIMATED :.., BALANCE ADDITIONS TOTAL DEDUCTIONS TOTAL BALANCE FUND/TITLE 7-1-09 REVENUES TRANSFER AVAILABLE EXPENSES TRANSFER DEDUCT 6-30-10 01. GENERALFUND 1 2,557,900 1122,236,600 112,596,800 1137,391,300 1133,438,800 1 2,182,100 1135,620,900 1,770,400 SPECIAL REVENUE FUNDS: 105 LIBRARY 30,000 45,000 2,098,500 2,173,500 2,173,500 0 2,173,500 0 106 CEMETERY 38,600 39,500 0 78,100 153,000 0 153,00 74,900 107 CAN 0 0 0 0 0 0 0 0 108 ASSET FORFEITURE 511,800 368,000 0 879,800 0 0 0 879,800 111 AIR QUALITY-AB 2766 136,100 261,200 0 397,300 110,800 240,000 350,800 46,500 118 DRUG/GANG AF 92,800 11,000 0 103,800 57,000 0 57,000 46,800 124 ANIMAL CONTROL 22,300 1,202,400 239,000 1,463,700 1,463,700 0 1,463,700 0 128 TRAFFIC SAFETY 0 2,490,000 0 2,490,000 950,000 1,540,000 2,490,000 0 132 SEWER LINE MAINT 3,537,1001 3,175,0001 78,000 1 6,790,1001 6,410,1001 380,0001 6,790,100 1 0 133 BASEBALL STADIUM 26,600 10,000 0 36,600 97,900 0 97,900 61,300 134 SOCCER FIELD COMPLEX 266,700 424,000 0 690,700 395,300 0 395,300 295,400 137 CFD 1033-Fire Station M&O 0 562,600 0 562,600 0 562,600 562,600 0 208 VERDEMONT INFRASTRUCT 908,700 15,000 0 923,700 0 0 0 923,700 211 FIRE EQUIP ACQUISITION FD 202,600 0 0 202,600 202,600 0 202,600 0 TOTAL SPECIAL REVENUES 5,773,300 8,603,700 2,415,500 16,792,500 12,013,900 2,722,600 14,736,500 2,056,000 CAPITAL PROJECT FUNDS: 126 SPECIAL GAS TAX 983,900 3,293,000 0 4,276,900 648,800 3,620,000 4,268,800 8,100 129 1/2 CENT SALES&RD TAX 3,426,000 3,537,800 0 6,963,800 5,798,300 1,350,000 7,148,300 184,500 135 PROP42 TRAFFIC CONGESTIOt 1,462,600 1,870,300 0 3,332,900 3,336,800 0 3,336,800 3,900 240 INFRASTRUCTURE LOAN 54,700 440,800 0 386,100 386,100 0 386,100 0 241 PUBLIC PARK EXTENSION 4,500 0 0 4,500 0 0 0 4,500 242 STREET CONSTRUCTION 3,643,078 35,093,900 0 31,450.822 31,450,800 0 31,450,800 22 243 PARK CONSTRUCTION 657,500 510,000 0 1,167,500 1,084,500 0 1,084,500 83,000 244 CEMETERY CONSTR 51,100 1,400 0 52,500 5,000 0 5,000 47,500 245 SEWER LINE CONSTR 4,439,400 175,000 0 4,614,400 2,587,700 225,000 2,812,700 1,801,700 246 PUBLIC IMPROVEMENT 1,833,200 30,000 0 1,863,200 1,826,800 0 1,826,800 36,400 247 CULTURAL DEVELOPMENT 1,168,364 135,000 0 1,303,364 0 707,000 707,000 596,364 248 STORM DRAIN CONSTR 4,083,100 492,500 0 4,575,600 4,442,900 132,700 4,575,600 0 250 TRAFFIC SYSTEM CONSTR 27,400 100 0 27,500 319,400 0 319,400 291,900 258 PROP 18 FUND 3,909,400 65,000 0 3,974,400 3,974,400 0 3,974,400 0 TOTAL CAPITAL PROJECTS 18,348,686 45,644,800 0 63,993,486 55,861,500 6,034,700 61,896,200 2,097,286 ASSESSMENT DISTRICT FUNDS: 251 OTHER ASSESMENT DISTR. 0 65,000 ol 65,000 1 65,000 1 01 65,000 0 254 LANDSCAPE DISTRICTS 0 1,157,300 0 1.157,300 1,157,300 0 1,157,300 0 TOTAL ASSESSMENT DISTRIC 0 1,222,300 0 1,222,300 1,222,300 0 1,222,300 0 IMPACT FEE FUNDS: 261 LAW ENFORCEMENT DEVEL 127,721 108,000 0 235,721 200,000 0 200,000 35,721 262 FIRE PROTECTION DEVEL 731,485 236,900 0 968,385 385,200 0 385,200 583,185 263 LOCAL CIRCULATION SYSTEM 668,158 40,000 0 708,158 415,100 0 415,100 293,058 264 REGIONAL CIRCULATION SYST 7,677,191 500,000 0 8,177,191 3,728,000 0 3,728,000 4,449,191 265 LIBRARY FACILITIES 18,208 90,500 0 108,708 31,000 0 31,000 77,708 266 PUBLIC MEETINGS FACILITIES 164,744 143,500 0 308,244 0 0 0 308,244 267 AQUATICS CENTER FACILITIES 59,779 46,000 0 105,779 0 0 0 105,779 268 AB 1600 PARKLAND 849,746 1,011,000 0 1,860,746 1,275,800 0 1,275,800 584,946 269 QUIMBY ACT PARKLAND 169,218 103,500 0 272,718 0 0 0 272,718 TOTAL IMPACT FEE FUNDS 10,466,250 2,279,400 0 12,745,650 6,035,100 0 6,035.100 8;710;550 DEBT SERVICE FUNDS: 305 AD 985 INDUSTRIAL PKWY 180,7001 75,000 1 01 256,MV 70.000 1 ol 70,000 1 185,700 306 AD 987 VERDEMONT AREA 94,600 55,000 0 149,600 65,000 0 65 000 84,600 311 FIRE STATION DS FUND 0 0 0 0 0 0 0 0 356 AD 356 NEW PINE AVE (406,600) 65,000 0 (341,600)1 45,000 1 0 45,000 1 (386,600) TOTAL DEBT SERVICE FUNDS 131,300 195,000 I ol 63,7001 180,00 1 01 , 180,0001 - 1116300111 ENTERPRISE FUNDS: 527 REFUSE 2,052,30 26,823,50 35,000 28,910,80 24,09440 3546,70. :`.27641,10 T 9]0 INTERNAL SERVICE FUNDS: 621 CENTRAL SERVICES FUND 0 165,000 59,600 224,600 224,600 0 224,600 0 629 LIABILITY FUND 720,800 3,125,900 0 2,405,100 2,931,200 0 2,931,200 526,100 630 TELEPHONE SUPPORT 227,80 533,500 0 761,300 666,700 0 666,700 94,600 631 UTILITY FUND 360,200 3,841,000 0 3,480,800 3,841,10 0 3,841,100 360,300 635 FLEET SERVICES 542,50 7,540,300 0 8,062,800 7,267,900 492,80 7,760,700 322,100 678 WORKER'S COMP 8,967,300 3,779,600 0 5,187,700 3,729,900 0 3 729 900 (8,917,600 679 INFORMATION TECHNOLOGY 387,471 3,691,700 0 4,079,171 3,840,000 128,000 31968,000 111,171 TOTAL INTERNAL SERVICE 8,890,529 22,677,600 59,600 13,846,071 22,501,40 620,80 :_23,122,20 ,276,1 TOTAL ALL FUNDS 1 30,176,607 1229,682,300 115,106,900 1274,965.807 1255,347,400 115,106,900 1270,454,3DOT 4,511,507 1 CITY OF SAN BERNARDINO ESTIMATED REVENUES AND EXPENDITURES FISCAL YEAR 2009-2010 MID-YEAR GENERALFUND BUDGET MID-YEAR VARIANCE FY 2009-2010 FY 2009-2010 FAVORABLE/ ESTIMATED REVENUE Property Taxes $ 29,239,700 $ 29,517,000 $ 277,300 Other Taxes 58,732,000 54,846,900 (3,885,100) Licenses & Permits 8,485,500 8,072,500 (413,000) Fines and Penalties 2,878,000 3,521,900 643,900 Use of Money& Property 3,017,700 2,713,700 (304,000) Intergovernmental 7,511,400 7,088,800 1 (422,600) Charges for Services 7,457,400 6,068,300 1 (1,389,100) Miscellaneous 5,414,200 7,469,400 2,055,200 Total Estimated Revenues $122,735,900 $119,298,500 $ (3,437,400) Short-Term Loan from EDA $ 1,308,700 $ 1,308,700 $ Short-Term Loan from Regional DIFF $ - $ 1,629,400 $ 1,629,400 Total Transfers In $ 12,369,200 $ 12,596,800 $ 227,600 TOTAL ESTIMATED FUNDS AVAILABLE $136,413,800 $134,833,400 ESTIMATED EXPENDITURES Mayor $ 830,300 $ 793,200 1 $ 37,100 Common Council 607,600 607,600 - City Clerk 1,983,200 1,888,200 95,000 City Treasurer 197,700 196,600 1,100 City Attorney 3,511,400 3,761,400 250,000 Code Compliance 3,912,400 3,607,4001 305,000 General Government 8,123,800 7,786,500 337,300 City Manager 1,195,300 1,109,900 85,400 Civil Service 292,600 287,100 5,500 Human Resource 493,100 493,100 - Finance 1,614,700 1,569,700 45,000 Development Services 4,550,400 4,025,900 524,500 Fire 32,967,100 33,636,400 669,300 Police 56,595,600 55,737,700 1 857,900 Police Measure Z 5,957,800 5,523,4001 434,400 Facilities Management 3,511,200 3,432,500 78,700 Parks, Recreation, & Comm Service 4,376,000 4,188,600 187,400 Parks Measure Z 187,300 161,900 25,400 Public Services 5,131,700 4,631,700 500,000 Total Estimated Expenditures $136,039,200 $133,438,800 $ 2,600,400 Total Estimated Expenditure Savings $ (1,100,000) $ - $ (1,100,000) Total Transfers Out $ 2,262,100 $ 2,182,100 $ 80,000 TOTAL ESTIMATED DEDUCTIONS $137,201,300 $135,620,900 $ 1,580,400 EXCESS (DEFICIENCY ) AVAILABLE $ (787,500) $ (787,500) $ ESTIMATED BEGINNING FUND BALANCE $ 2,557,9001 $ 2,557,900 $ ESTIMATED ENDING FUND BALANCE $ 1,770,400 $ 1,770,400 $ BUDGETED RESERVE Reserve Related to Admin Civil Penalties 1,510,300 1,510,300 Reserve Measure Z-District Tax Reserve DS Technology Fee 96,900 96,900 General Budget Reserve 163,200 163,200 BUDGETED RESERVE $ 1,770,400 $ 1,770,400 $ BUDGET EXCESS / (DEFICIENCY) $ $ - $ 2 CITY OF SAN BERNARDINO ESTIMATED REVENUES AND EXPENDITURES FISCAL YEAR 2009-2010 GENERAL FUND - Measure Z MIDYEAR VARIANCE BUDGET ESTIMATE OVER/ FY 2009-2010 FY 2009-2010 (UNDER) ESTIMATED REVENUE District Tax Revenues 6,100,000 5,250,000 (850,000) Total Estimated Revenues $ 6,100,000 $ 5,250,000 $ (850,000) Total Transfers In $ $ $ TOTAL ESTIMATED FUNDS AVAILABLE $ 6,100,000 $ 5,250,000 $ (850,000) ESTIMATED EXPENDITURES Police 5,957,800 5,523,400 434,400 Park and Recreation 187,300 161,900 25,400 Total Estimated Expenditures $ 6,145,100 $ 5,685,300 $ 459,800 Total Estimated Expenditure Savings $ - $ - $ - Total Transfers Out $ - $ $ - TOTAL ESTIMATED DEDUCTIONS $ 6,145,100 $ 5,685,300 $ 459,800 EXCESS (DEFICIENCY ) AVAILABLE $ (45,100) $ (435,300) $ (390,200) ESTIMATED BEGINNING FUND BALANCE $ 45,100 $ 45,100 $ ESTIMATED ENDING FUND BALANCE $ - $ (390,200) $ (390,200) RESERVE FOR FUTURE COSTS 0 0 0 BUDGET EXCESS / (DEFICIENCY) $ $ (390,200) $ (390,200) 3 CITY OF SAN BERNARDINO GENERAL FUND MID-YEAR REVENUE REPORT FISCAL YEAR 2009-2010 ACTUAL ACTUAL , CTUAL BUDGET I REVISED VARIANCE DESCRIPTION 2006-2007 1 2007-2008 2008-2009 2009-2010 2009-2010 Over/(Under) PROPERTY TAXES 4001 Current Secured 9,771,001 10,973,693 11,621,490 9,672,000 10,003,100 331,100 4002 Current Unsecured 546,494 530,779 603,367 575,000 575,000 0 4003 Prior Taxes 395,001 542,358 904,956 930,000 1,010,600 80,600 4006 Supplemental 2,512,125 1,971,639 903,455 900,000 745,200 (154,800) 4005 Other 144,413 162,045 167,060 145,000 165,400 20,400 4007 Prop Tx In Lieu of VLF 14,870,875 17,249,453 18,588,204 17,017,700 17,017,700 0 Total Taxes 28,239,909 31,429,967 32,788,532 29,239,700 1 29,517,000 277,300 OTHER TAXES 4221 Sales Tax 25,331,713 22,309,687 17,27647 17,082,200 16,432,200 650,000) 4220 Pro2 Tx In Lieu Sales Tax 9,517,036 7,280,284 6,520,295 4,266,800 4,266,800 0 4224 Utility User Tax 25,106,730 24,407,034 24,355,172 24,500,000 22,565,900 (1,934,100) 4201/14 Franchise Tax 3,060,563 3,323,073 3,091,966 3,117,000 2,795,000 322,000 4222 Transient Occupancy 3,032,994 3,262,131 2,517,102 1,850,000 1,850,000 0 4223 Prop. Transfer Tax 946,155 649,330 390,814 500,000 450,000 50,000) 4225 Sales Tax Public Safety 976,573 982,803 863,890 850,000 800,000 50,000 4215 Tow Franchise 288,000 288,000 421,542 466,000 437,000 29,000 4227 Measure Z-District Tax 1,162,882 6,511,475 5,804,472 6,100,000 5,250,000 (850,000) Total•Taxes 69,422,646 69,013;817 61;241,900 58,732000.' `54;846,900 (3,885,100) LICENSES AND PERMITS 4301 Business Registration 5,866,748 6,105,401 6,197,871 5,685,000 5,685,000 fl(525,000 4330 Building Permits 1,020,470 646,352 498,626 485,000 544,500 4331 Mechanical Permits 332,637 208,594 144,792 150,000 140,000 4362 On Site Inspection Fees 1,602,834 1,183,749 623,489 650,000 125,000 4363 On Site Plan Check 712,370 341,996 209,377 200,000 50,000 4361 Construction Permits 326,522 300,801 122,992 152,000 75,000 4342 EMS Membershi 16,504 6,148 2,172 12,000 20,000 4336 Fire Code Permits 304,577 301,548 385,377 355,300 300,000 55,300) 4337 Fire Plan Check 206,532 1 181,303 141,512 120,000 110,000 10,000 4351 Street Cut Permits 145,407 229,645 295,086 273,800 435,000 161,200 4333 Mobile Home Park Permit 27,161 26,374 26,169 26,000 52,000 26,000 4352 Misc Licenses& Permits 299,506 317,209 500,325 300,400 500,000 199,600 4353 Yard Sales Permit Fee 0 0 0 14,000 0 14,000 4303 Misc City Clerk Permits 8,683 3,490 2,383 2,000 4,000 2,000 4304 Misc Plannin Permits 24,889 31,499 22,715 25,000 22,000 3,000 4360 Grading Permits 33,874 25,624 9,626 35,000 10,000 (25,000) Totallicense&Permit 10,928,714..':, 9::182;512 8,485,500 8 g72 5E1(1 .,_'(413,0Q0) FINES AND PENALTIES 4420 Parking Citations 917,069 1,209,205 1,145,492 1,230,000 1,230,000 0 4410 General Fines 169,238 153,371 135,876 116,700 279,600 162,900 4411 Code Admin. Citations 90,549 145,468 182,982 235,000 500,000 265,000 4412 Fire Admin. Citations 81,392 73,865 96,767 100,000 50,000 50,000 4423 General Admin Civil Penalty 0 0 609,714 943,000 1,260,300 317,300 4424 Police Admin Civil Penalty 0 0 26,386 48,300 50,000 1,700 4425 City Clerk Admin Civil Pen 0 0 0 15,000 0 15,000 50 4426 Dev Sery Admin Civil Pen 0 0 5, 0 75,000 2,000 73,000 4427 Fire Admin Civil Penalty 0 0 26,215 75,000 8,600 66,400) 4428 Code Admin Civil Penalty 0 0 5,400 40,000 141,400 101,400 4421 Vehicle Abatement Fines 0 0 0 0 0 0 Total Fines/Penalties 1,258,248 1,581,909 2,234,332 2,878,000 3,521,900 643,900 4 CITY OF SAN BERNARDINO GENERAL FUND MID-YEAR REVENUE REPORT FISCAL YEAR 2009-2010 ACTUAL ACTUAL ACTUAL BUDGET REVISED VARIANCE DESCRIPTION 2006-2007 2007-2008 2008-2009 2009-2010 2009-2010 Over/(Under) USE OF MONEY AND PROPERTY 4505 Interest Earnings 1,073,619 793,211 198,928 479,500 200,000 279,500 4520 Land & Building Rental 474,154 407,302 487,584 448,000 475;000 27,000 4523 ATS Land Rental 0 0 10,805 45,200 45,200 0 4530 Parking Rental Fee 67,258 0 550 0 500 500 4531 Down Town Parking Meters 0 0 0 0 0 0 4922-26 Sale of Pro a 95,875 306,288 5,120 1,980,000 1,945,000 35,000 4422 Fireworks Adm Civil Pen. 0 0 15,729 25,000 10,000 15,000) 4540 Vending Machine Comm. 52,979 40,622 38,669 40,000 38,000 (2,000) Total Money& Property 1,763,885 1,547,423 757,385 3,017,700 2,713,700 (304,000) INTERGOVERNMENTAL 4603 Motor Vehicle In Lieu 1,381,205 1,038,879 817,737 725,000 400,000 325,000 4621 Booking Fee Subvention 354,658 0 0 0 0 0 4670 EDA&CDBG Reimb. 3,486,258 5,738,232 5,318,450 5,082,600 5,016,400 66,200 4651 Construction Reimb. 9,876 0 22,012 0 0 0 4606 Homeowner's Exemption 149,123 154,290 134,091 140,000 130,000 10,000 4616 POST 132,146 127,242 100,877 100,000 50,000 50,000 4625 State-Mandated Costs 863,049 63,156 88,703 250,000 256,000 6,000 4673 Water Reimbursement 318,890 338,500 349,600 349,600 358,600 9,000 4671 SBIAA Reimbursement 130,905 146,690 153,530 136,400 150,000 13,600 4615 Disaster Prep. Program 24,019 21,864 22,497 27,800 27,800 0 4607 Off-Highway Vehicle Tax 0 0 0 0 0 0 4619 Mutual Aid/Disaster Reimb. 581,015 1,206,619 795,269 700,000 700,000 0 Total Intergovernmental 7,431,144 8,835,472 7,802,766 7,511,400 7,088,800 (422,600) CHARGES FOR SERVICE 4731 Plan Check Fee 536,764 392,708 230,880 250,000 200,000 50,000 4789 Archival Fee-Devel Servs 47,940 36,723 24,976 26,000 26,000 0 4715 DS Technology Fee 0 0 43,855 41,000 41,000 0 4779 Blanket Inspection Fee 0 0 0 92,000 0 92,000 4880 EMS User Fee 270,586 227,341 260,086 550,000 550,000 0 4798 Storm Drain Utility Fee 283,836 288,709 271,148 261,000 261,000 0 4799 NPDES Bus Inspection 0 0 0 27,000 6,100 20,900 4815 Weed Abatement 247,674 204,399 150,733 346,200 200,000 146,200 4733 Prop/Building Prop/Building Abatements 897,5471 740,701 765,997 1,025,500 900,000 125,500 4714 Planning Develp Project 467,4091 483,683 301,612 250,000 200,000 50,000 4305 Annual Alarm Permits 211,944 213,266 202,957 200,000 210,000 10,000 4780 Misc Develop Servs Chr s 114,563 95,657 96,408 101,100 51,100 50,000 4766 Building Permit Review 45,842 67,470 71,430 75,000 60,000 15,000 4720 Plan Review Fee 263,445 131,366 73,462 80,000 80,000 0 4784 Plan Subdivision File Fee 320,350 78,511 19,356 20,000 1,000 19,000 4785 Non Subdivision Str Imp 121,372 205,199 174,480 190,000 20,000 170,000 4711 PW Subdivision File Fee 136,746 174,315 28,548 25,000 25,000 0 4718 Environmental 14,063 6,585 719 1,000 1,000 0 4735 Release Notice of Pendenc 9,115 4,354 7,316 37,000 20,000 17,000 4863 Class Registration Fee 31,276 6,219 6,865 6,500 6,500 0 4862 Park Energy Fee 6,145 4,312 5,095 5,000 6,000 1,000 4707 Passport Fees 110,010 99,200 67,458 75,000 75,000 0 4702 County Contract 487,000 487,000 487,000 487,000 487,000 0 4864 Swimming Pool Fee 58,118 59,111 51,483 45,000 60,000 15,000 4861 Pro rm/Facili Use Fee 71,158 65,516 67,233 70,000 70,000 0 4865 Non-Resident Fees 3,310 2,918 2,767 30,000 2,000 28,000 4710 Misc Plannin /Buildin 1 143,9291 144,253 111,707 100,000 100,000 0 5 CITY OF SAN BERNARDINO GENERAL FUND MID-YEAR REVENUE REPORT FISCAL YEAR 2009-2010 ACTUAL ACTUAL ACTUAL BUDGET REVISED VARIANCE DESCRIPTION 2006-2007 2007-2008 2008-2009 2009-2010 2009-2010 Over/(Under) 4743 PD Towing Release Fee 403,200 450,035 543,470 580,600 400,000 180,600) 4745 Code Tow Release Fee 0 0 960 0 5,000 5,000 4795 Signal MainUEner 21,098 19,534 33,089 25,000 10,000 15,000 4802 Str Light Energy Fee 10,505 5,993 16,800 16,800 16,800 0 4701 Election Filing Fee 1,622 24,306 1,064 25,000 15,200 9,800 4747 False Alarm Fee 77,4881 54,035 55,806 88,900 60,000 28,900 4810 Misc. Development ServiceE 6,7471 21,842 6,936 10,000 200 9,800 4705 Utility Collection Fee 60,403 10,776 0 10,000 0 10,000 4708 Fire Training Agreement 82,318 134,453 107,147 100,000 60,000 40,000 4881 Paramedic Reimb Contract 259,129 259,129 410,445 359,100 400,000 40,900 4786 Certificate of Completion 0 0 14,656 15,000 5,000 10,000 4752 Fireworks Regulatory Fee 101,108 73,893 67,233 75,000 65,200 9,800 4753 Fire Archival Fee 2,755 3,955 2,908 4,000 2,600 1,400 4754 Fire Business Occup Ins 50,386 31,461 39,110 35,600 35,600 0 4755 Fire Rental Inspections 404,026 406,794 540,541 550,000 550,000 1 0 4709 Hazardous Material Fee 0 0 42,463 163,900 10,000 153,900 4712 Tow Yard Fees 0 0 0 0 0 0 4767 Single Family Rental Insp 0 0 310.809 982,200 670,000 (312,200 4768 Adm Cites-SFRIP 0 0 0 0 104,000 104,000 Total Charges 6,380,927 5,715,722 5,678,296 7,457,400 6,068,300 (1,389,100) MISCELLANEOUS 4906 Water Fund Contr. 2,401,973 2,384,618 2,397,359 2,460,000 2,460,000 0 4930 Sewer Contr. -Water 500,000 500,000 500,000 500,000 500,000 0 4931 Water Land Sales 3,090 89,431 52,782 0 0 0 4910 Admin Service Charge 349,600 352,300 384,800 384,800 375,300 9,500 4901 Misc. Other Revenue 396,358 309,077 441,035 544,600 2,872,800 2,328,200 4912 Off Track Betting 143,605 132,632 110,107 120,000 110,000 10,000 4741 Sale of Photos/Reports 116,639 58,757 15,187 19,100 10,000 9,100 4740-5 Police Misc. Receipts 839,549 794,747 882,574 806,400 806,400 0 4746 Property Auction 7,0541 19,224 3,886 10,000 7,000 3,000 4911 Restitutions 20,686 21,619 11,468 20,000 20,000 0 4905 Litigation Settlement 176 57,957 135,681 20,000 0 20,000 4904 Drunk Driver Reimburmt. 60 32 0 0 0 0 4928 Booking Fee Reimburmt. 1,630 2,028 3,274 3,000 3,000 0 4750 Investigation Fee 12,538 13,692 43,010 45,000 45,000 0 4908 Vehicle Take Home Reimb 0 0 0 91,500 0 91,500 4926 CID Reimburmt 0 0 0 101,900 101,900 0 4933 Hazmat Incident Recovery 0 Q 0 197,900 80,000 117,900 4924 Damage Clain Recovery 36,618 25,447 80,617 90,000 78,000 (12,000) Total'Miscellaneous 4,829,576 4,761,561 1 5,061,780 5,414,200 7,469,400 2,055,200 TOTAL GENERAL FUND 1130,255,049 1132,795,6o4 1124,747,503 1 1122,735,900 1119,298,500'1 (3,437,400) 6 CITY OF SAN BERNARDINO OTHER FUNDS MID-YEAR REVENUE REPORT FISCAL YEAR 2009 -2010 ACTUAL I ACTUAL ACTUAL 'BUDGET T REVISED ; 'VARIANCE DESCRIPTION 2006-2007 2007-2008 2008-2009 2009-2010 2009-2010` Over!(Under) 105 LIBRARY FUND: 4618 State Aid-Libraries 116,513 78,752 69,967 0 0 0 4850 Miscellaneous Receipts 18,977 19,729 19,027 21,000 15,000 6,000 4851 Library Fines 52,266 52,770 39,619 40,000 30,000 10,000) 4901 Misc Other Receipts 0 78,000 0 0 0 0 Total Library Fund 187,756 229,251 128,613 61,000 45,000 16,000) 106 CEMETERY FUND 4505 Interest on Idle Cash 20,785 22,767 12,916 18,000 10,000 (8,000) 4775 Cemetery Burial Fee 68,530 68,393 20,928 40,000 15,000 (25,000) 4776 Sale of Vases 2,124 2,070 661 1,000 500 500 4777 Sale Concrete Boxes 28,259 27,753 8,430 10,000 7,000 3,000 4778 Sale Cemetery Plots 62,355 65,482 8,389 10,000 7,000 3,000) 4901 Misc. Receipts 6,000 2,000 2,000 2,000 0 (2,000) Total Cemetery Fund 188,053 188,465 53,3241 81,000 39,500 (41,500) 107 CABLE TV FUND 4922 Sale of Equipment/Services 1 83,036 81,918 1 4,348 0 1 0 1 0 Total Cable'TV`Fund 83,036 81,918 4348> 0 0 0 108 AS,SE-T F.ORFEITUREFUND 4505 Interest on Idle Cash 4,214 8,968 1 8,869 8,000 8,000 0 4672 Asset Forfeiture Federal DO J 146,168 274,926 149,916 100,000 300,000 200,000 4927 Asset Forfeiture 102,502 119,252 138,897 100,000 60,000 (40,000) vTdfatAsset'FOrfeitureFurfd`- '252,884 t403,146> °2873'582:3 20$:000' 7 '��.368Q0q 37i180,000 111 5IRDUALITyr ,2766 FUND 4505 Interest on Idle Cash 1,697 3,056 1 942 2,000 1,000 4626 Rideshare Reimbursement 245,042 246,936 245,794 220,000 255,000 4906 Water Department 5,000 5,100 5,200 5,200 5,200&T,,ptalAirQual -AB2766Fund 251,739 255,092. +.251,9 &= 227;200 ._ %261,2Qt 114,0RUG/GANG FUND', 4505 Interest on Idle Cash 6,812 6,566 1,368 3,000 1,000 2,000 4929 Asset Forfeiture-Drug/Gang 17,641 19,547 23,576 18,000 10,000 (8,000) ;..T�talAlvglGalg Fiind' , 24,453: : 26113s . "24;944:; X1;0,00. .f11;Ot10, '� : `(1000) 124 ANIMAD:CONTROL.FUND 4320 Animal License 357,328 380,559 349,477 393,300 275,000 118,300 4352 Misc. License& Permits 2,380 2,755 1,175 2,000 500 1,500 4410 General Fines 39,422 36,759 26,595 30,000 15,000 15,000) 4430 Animal License Penalty 42,120 47,770 37,150 48,000 25,000 23,000 4756 Animal Adoption Fee 58,224 56,968 47,233 50,000 42,000 8,000 4757 Contractee Shelter Fee 718,285 766,230 779,644 742,400 742,400 0 4759 Apprehension Fee 50,983 44,541 32,466 44,300 30,000 14,300 4760 Board Fee 34,212 31,894 14,723 12,300 15,000 2,700 4761 Field Service Fee 1,802 410 15 100 0 100 4763 Owner Release Fee 31,026 22,752 24,718 15,700 15,000 700 4764 Vaccination Fee 20,570 20,512 16,437 18,000 15,000 3,000) 4765 Microchip Fee 0 9 1 78,654 27,700 26,000 1,700 4901 Miscellaneous Receipts 5,312 4,149 124 1,500 1,500 4922 Sale of Equipment 0 0 0 13,400 0 (13,400) Total Animal Control Fund 1,361,664 1,415,299 1,408,411 1,397,200 1,202,400 (194,800) 7 CITY OF SAN BERNARDINO OTHER FUNDS MID-YEAR REVENUE REPORT FISCAL YEAR 2009 -2010 ACTUAL I ACTUAL ACTUAL BUDGET REVISED I VARIANCE DESCRIPTION 2006-2007 2007-2008 2008-2009 1 2009-2010 2009-2010 Over/(Under) 126 SPECIAL GAS TAX FUND 4505 Interest on Idle Cash 27,654 17,870 26,510 18,000 20,000 2,000 4610 State Aid-2106 788,619 751,321 678,076 664,000 690,000 26,000 4611 State Aid-2107 1,638,717 1,620,600 1,467,881 1,439,500 1,468,000 28,500 4612 State Aid-2107.5 10,000 10,000 10,000 10,000 10,000 0 4614 Prop 111-Highway Users Tax 1,225,874 1,211,055 1,102,887 1,076,400 1,105,000 28,600 4945 Reimbursement 317,447 0 0 0 0 0 Total Gas Tax Fund 1 4,008,311 1 3,610,846 1 3,285,354 3,207,900 1 3,293,000 1 85,100 128 TRAFFIC SAFETY FUND 4440 CVC Fine 1,005,419 1,409,440 1,550,499 1,490,000 1,540,000 50,000 4441 Nester Red Lights 837,798 887,491 857,421 950,000 950,000 0 Total Traffic Safety Fund 1,843,217 2,296,931 2,407,920 2,440,000 2,490,000 50,000 129 1/2 CENT SALES/ROAD TAX FUND 4505 Interest on Idle Cash 181,759 180,145 62,098 100,000 50,000 50,000) 4613 112 Cent Sales Tax 3,188,524 3,077,896 2,570,323 2,500,000 2,400,000 100,000 4630 State Aid Street Construction 0 197,137 0 0 0 0 4945 Construction Reimbursement 59,814 0 0 1,087,800 1,087,800 0 Total 9/2 Cent Sales/Road Tax Fund 3,430,097 3,455,178 2,632,421 3,687,800 3,537,800 (150,000) 132 SEWER LINE MAINTENANCE 4505 Interest on Idle Cash 154,626 209,892 71,086 100,000 50,000 50,000 4820 Sewer Line Maint 3,093,150 3,053,718 3,059,926 3,050,000 3,125,000 75,000 4903 Refunds and Rebates 2,520 0 0 0 0 0 Total Sewer Line Maintenance 3,250;296 3,263,610 3,131,012 3,150,000 3,175,000 25,000 133 BASEBALL STADIUM 4505 Interest on Idle Cash 1,004 4,691 297 2,000 1,000 1,000 4924 Damage Claim Recovery 0 8,236 0 0 0 0 4901 Baseball Team Lease Agreement 88,186 89,689 10,000 30,000 10,000 (20,000) Total Baseball Stadium 88,186 81,453 10,000 30,000 10,000 (20,000) 134 SOCCER FIELDS 4505 Interest on Idle Cash 5,804 8,135 5,033 5,000 5,000 0 4520 Land&Building Rental 72,700 103,928 111,677 110,000 110,000 0 4530 Rental Fee-Parkin 200,041 240,766 211,236 190,000 225,000 35,000 4861 Program&Facilities Fee 55,391 67,696 85,555 70,000 80,000 10,000 4862 Park Energy Fee 1,320 4,287 3,978 4,000 4,000 0 Total Soccer Fields 335,256 424,812 417,479 379,000 424,000 45,000 135 PROP 42 TRAFFIC CONGESTION FD 4505 Interest on Idle Cash 62,980 43,234 9,647 15,000 20,000 5,000 4635 Traffic Congestion Relief 1,445,424 0 1,736,686 1,943,700 1,850,300 93,400 4903 Refunds/Rebates 0 21,220 0 0 0 0 Total Prop 42 Traffic Congestion Fund 1,508,404 64,454 1,746,333 1,958,700 1,870,300 (88,400) 137 CFD 1033-FIRE STATION FUND 4505 Interest on Idle Cash 29,987 66,655 557,901 556,700 556,700 0 4013 CFD 1033 Special Tax 10,732 13,442 7,590 5,900 5,900 0 Total CFD 1033-Fire Station Fund 40,719 80,097 1 565,491 562,600 562,600 0 208 VERDEMONT IMPROVEMENT FUND 4505 Interest on Idle Cash 43,569 43,785 21,637 0 15,000 15,000 4512 Verdemont Infrastruction Fee 138,000 0 750 0 0 0 Total Verdemont Improvement Fund 181,569 43,785 22,387 0 15,000 15,000 8 CITY OF SAN BERNARDINO OTHER FUNDS MID-YEAR REVENUE REPORT FISCAL YEAR 2009 -2010 ACTUAL ACTUAL ACTUAL BUDGET I REVISED I VARIANCE DESCRIPTION 2006-2007 2007-2008 2008-2009 2009-2010 2009-2010 1 Over/(Under) 240 INFRASTRUCTURE LOAN FUND 5,450,237 0 4,163,641 386,200 1 440,800 1 54,600 242 STREET CONSTRUCTION FUND 4903 Misc Receipts/Refunds/Rebates 0 0 0 5,183,900 5,183,900 0 4630 State Aid-Street Constr. 240,719 204,638 0 19,327,100 19,327,100 0 4658 Federal Aid-FAU 397,187 867,957 1,888,984 1,577,700 1,577,700 0 4670 EDA Reimbursement 0 0 0 660,000 660,000 0 4671 IVDA Reimbursement 0 0 0 3,950,500 3,950,500 0 4945 Construction Reimbursement/Misc 11,352 437,490 149,316 4,702,100 4,394,700 (307,400) Total Street Constr. Fund 649,258 1,510,085 2,038,300 35,401,300 35,093,900 (307,400) 243 PARK CONSTRUCTION FUND 4505 Interest on Idle Cash 47,154 26,207 1,607 2,000 10,000 8,000 4620 State Aid Park Dev 340,901 50,145 610,016 1,377,500 0 1,377,500) 4651 Construction Reimbursement 950,000 0 0 50,000 0 50,000 4670 EDA Reimbursement 0 0 0 500,000 500,000 0 4732 Park Development Fee 120,129 70 0 0 0 0 Total Park:Construction Fund 1,458,184 76,422 611,623 1,929,500 510,000 (1,419,500) 244 CEMETERY CONSTRUCTION FUND 4505 Interest on Idle Cash 1,325 1,675 984 1,200 900 300 4778 Sale Cemetery Plots 3,744 3,743 1 500 500 0 Total Cemetery Constr.Fund 5,069 5,418 1 1,280 1,700 1,400 (300) 245 SEWER LINE CONSTRUCTIONFUND 4505 Interest on Idle Cash 199,090 247,367 87,115 100,000 70,000 30,000 4651 Construction Reimbursement 0 0 0 0 0 0 4821 Sewer Lateral Fee 195 0 0 0 0 0 4822 Sewer Connection Fee 825,779 378,884 54,850 60,000 105,000 45,000 Total Sewer Line Constr. Fund 1,025,064 626,251 141,965 160,000 175,000 15,000 246 PUBLIC IMPROVEMENT FUND 4505/4509 Interest on Idle Cash 241,363 161,335 1 39,459 75.000 30,000 (45,000) 4902 Contribution 398,190 0 0 0 0 0 Total Public Improvement Fund 639,553 161,335 39,459 75,000 30,000 (45,000) 247 CULTURAL DEVELOP FUND 4505 Interest on Idle Cash 31,053 48,352 25,442 25,000 15,000 10,000 4335 Cultural Devel. Constr. Fee 999,211 610,202 312,711 312,500 120,000 (192,500) Total Cultural Devel Const Fund 1,030,264 658,554 338,153 337,500 135,000 (202,500) 248 STORM DRAIN CONSTR FUND 4505 Interest on Idle Cash 99,737 277,287 87,244 100,000 40,000 60,000 4651 Construction Reimbursement 0 0 0 0 277,500 277,500 4819 Area Drainage Plan Fee 33,162 0 0 0 0 0 4818 Storm Drain Fee 1,639,578 2,316,118 288,874 300,000 175,000 (125,000) Total Storm Drain Constr. Fund 1,772,477 2,593,405 376,118 400,000 492,500 92,500 250 TRAFFIC SYSTEMS CONSTR FUND 4505 Interest on Idle Cash 13,385 0 2,797 0 100 100 4630 State Aid Street Construction 108,000 74,545 0 2,500 0 2,500 4658 Fed Aid Street Construction 83,968 0 0 0 0 0 4803 Traffic System Fees 152,152 0 0 0 0 0 4945 Construction Reimbursement 0 0 0 0 0 0 Total Traffic Systems Fund 357,505 74,545 2,797 2,500 100 (2,400) 9 CITY OF SAN BERNARDINO OTHER FUNDS MID-YEAR REVENUE REPORT FISCAL YEAR 2009 -2010 ACTUAL ACTUAL ACTU r BUDGET REVISED I VARIANCE DESCRIPTION 2006-2007 2007-2008 2008-2009 2009-2010 2009-2010 Over/(Under) 257 CITY WIDE AD 994 8,4181 3,169 0 0 0 0 258 PROP 113 FUNDS 4505 Interest on Idle Cash 0 99,565 78,846 70,000 65,000 (5,000) 4628 Prop 1B Revenue 0 3,297,446 1,903,800 1,100,600 0 (1,100,600 4945 Construction Reimbursement 0 0 0 0 0 0 Total PROP 1B Fund 0 3,397,011 1,982,646 1,170,600 65,000 (1,105,600) 261 LAW ENFORCEMENT IMPACT FEE FD 4505 Interest on Idle Cash 4,512 2,074 3,042 3,000 3,000 0 4824 Development Impact Fees 205,444 97,644 83,685 90,000 105,000 15,000 Total Law Enforcement Impact Fee Fd 209,956 99,718 86,727 93,000 108,000 15,000 262 FIRE PROTECTION IMPACT FEE FD 4505 Interest on Idle Cash 7,307 12,469 9,034 8,000 8,000 0 4824 Development Impact Fees 205,741 92,796 78,901 80,000 170,000 90,000 4901 Misc. Receipts 0 0 104,213 58,900 58,900 0 Total Fire Protection Impact Fee Fd 213,048 105,265 192,148 146,900 236,900 90,000 263 LOCAL CIRCULATION IMPACT FEE FD 4505 Interest on Idle Cash 10,019 25,664 13,352 15,000 10,000 5,000 4824 Development Impact Fees 345,071 408,782 60,883 65,000 30,000 (35,000) Total Local Circulation Impact Fee Fd 355,090 434,4461 74,235 80,000 40,000 (40,000) 264 REGIONAL CIRCULATION IMPACT FEE FD 4505 Interest on Idle Cash 72,114 333,418 152,266 200,000 150,000 50,000) 4824 Development Impact Fees 2,143,658 3,752,399 691,916 750,000 350,000 (400,000) Total Regional Circulation Impact Fee Fd 2,215,772 4,085,817 844,182 950,000 500,000 (450,000) 265 LIBRARY FACILITIES IMPACT FEE FD 4505 Interest on Idle Cash 999 1,744 339 500 500 0 4824 Development Impact Fees 38,832 1 57,826 9,378 10,000 90,000 80,000 Total Library Facilities Impact Fee Fd 39,831 59,570 9,717 10,500 90,500 80,000 266 PUBLIC MEETINGS FAG IMPACT FEE FD 4505 Interest on Idle Cash 11294 4,569 3,268 3,500 3,500 0 4824 Development Impact Fees 51,250 85,510 14,101 15,000 140,000 125,000 Total Public Meetings Fac Impact Fee Fd 52,544 90,079 17,369 18,500 143,500 125,000 267 AQUATICS CENTER IMPACT FEE FD 4505 Interest on Idle Cash 511 1,680 1,184 1,000 1,000 0 4824 Development Impact Fees 19,853 29,822 4,794 5,000 45,000 40,000 Total Aquatics Center Impact Fee Fd 1 20,3641 31,502 1 5,978 6,000 46,000 40,000 268 AB 1600 PARKLAND IMPACT FEE FD 4505 Interest on Idle Cash 9,529 29,122 16,117 18,000 16,000 (2,000 4824 Development Impact Fees 388,380 723,632 45,144 50,000 995,000 945,000 Total AB 1600 Parkland Impact Fee Fd 1 397,909 752,754 61,261 68,000 1,011,000 943,000 269 QUIMBY ACT PARKLAND IMPACT FEE FD 4505 Interest on Idle Cash 1,327 2,888 3,911 3,500 3,500 0 4824 Development Impact Fees 52,668 20,064 76,504 76,500 100,000 23,500 Total Quimby Act Parkland Impact Fee Fd 53,995 22,952 80,415 80,000 103,500 23,500 10 CITY OF SAN BERNARDINO OTHER FUNDS MID-YEAR REVENUE REPORT FISCAL YEAR 2009 -2010 ACTUAL ACTUAL ACTUAL BUDGET REVISED VARIANCE DESCRIPTION 2006-2007 2007-2008 2008-2009 2009-2010 2009-2010 Over/(Under) 527 REFUSE FUND 4505 Interest on Idle Cash 70,821 58,284 19,127 15,000 25,000 10,000 4830 Commercial Rubbish 77,617 72,425 64,822 70,000 50,000 20,000 4831 Commercial Bin Rent 100,884 93,581 25,599 50,000 500 49,500 4832 Commercial Bin Service 9,626,224 9,803,805 10,140,807 10,800,000 10,620,000 180,000 4833 Commercial S ecial 1,460,411 1,607,712 1,129,203 925,000 1,000,000 75,000 4840 Residential Water Billed 8,865,093 8,856,698 9,418,919 9,500,000 10,115,000 615,000 4841 Residential"B"Accounts 1,144,970 1,155,599 1,324,896 1,320,000 1,325,000 5,000 4843 Dino Bin Service 2,555,032 2,531,429 2,830,053 3,000,000 2,710,000 290,000 4844 Commercial Penalties 20,788 21,410 19,274 20,000 21,000 1,000 4845 Residential Penalties 1,999 2,056 1,849 2,000 2,000 0 4846 Recycling Receipts 174,459 185,524 224,240 225,000 225,000 0 4901 Miscellaneous Other Revenue 236,471 737,752 689,985 700,000 700,000 0 4922 Sale Salvage Mater 7,981 82,370 86,253 30,000 30,000 0 Total Refuse Fund 24,342,750 25,208,645 25,975,027 26,657,000 26,823,500 166,500. 621 CENTRAL SERVICES FUND 1 256,783 1 221,253 1 184,262 1 F 1-75,0001 165;000 (10,000) 629 LIABILITY INSURANCE FUND 4505 Interest on Idle Cash 120,314 171,085 74,191 10,000 50,000 40,000 4897 Interdepartmental Receipts 3,203,100 3,244,500 3,082,400 3,075,900 3,075,900 0 Total Liability Insurance Fund 3,323,414 3,415,585 3,156,591 3,085,900 3,125,900 40,000 630 TELEPHONE SUPPORT FUND 4893 Water Dept. Receipts 130,195 131,688 :423,450 27 108,000 100,000 8,000 4670 Economic Development Agency 8,167 3,499 29 4,000 2,000 2,000 4897 Interdepartmental Receipts 802,261 752,498 422,500 422,500 0 4901/4903 Misc/SBETA/Asst Districts 13,773 18,228 99 11,500 9,000 (2,500) Total Telephone Support Fund 954,396 905,913 05 546,000 533,500 (12,500) 631 UTILITY FUND 4897 Interdepartmental Receipts 1 4,293,1391 3,974,360 3,850,201 3,645,000 3.645,000 0 4903 Misc/Asst Districts/LED Reimb 01- 0 0 196,000 196,000 0 Total Utility Fund 4;293,139 3,974,360'1 3,850201" 3,841,000 3,841,000 0 635 FLEET SERVICES 4670 Economic Development Agency 9,562 12,479 11,261 13,500 11,000 2,500 4897 Interdepartmental Receipts 6,825,770 9,637,571 7,120,565 7,163,100 7,163,100 0 4901 Misc/Asst Districts/SBETA/Sr Nutrition 0 0 89,914 98,000 104,200 6,200 4903 Refunds/Rebates 15,160 61,161 0 262,000 262,000 0 Total Fleet Services Fund 6,850,492 9,711,211 7,221,740 7,536,600 7;540,300 3,700 678 WORKERS'COMPENSATION FUND 4897 Interdepartmental Receipts 3,477,901 3,593,010 3,478,694 3,379,900 3,429,300 49,400 4906 Water Department 339,757 322,656 295,959 350,000 350,000 0 4901 Misc Receipts 0 16,850 941 2,000 300 (1,700) Total Workers'Compensation Fd 3,817,658 3,932,516 3,775,594 3;731,900 3,779,600 47,700 679 INFORMATION TECHNOLOGY FUND 4670 EDA Reimbursement 2,203 0 0 5,500 0 5,500 4673 Water Reimbursement 510,499 668,306 :4,521,428 10,700 539,600 539,600 0 4897 Interdepartmental Receipts 4,000,200 3,776,200 44,400 3,151,900 3,151,900 0 4901 Misc/SBETA SANCAT/IVDA 12,579 10,652 66,328 700 200 (500) Total IT Fund 4,525,481 4,455,158 3,697,700 3,691,700 (6,000) GRAND TOTAL 1 81,172,722 1 82;489,604 76,672,830 907,999,700 106,013,400 1 (1,986,300) 11 CITY OF SAN BERNARDINO DETAIL OF INTERFUND TRANSACTIONS FISCAL YEAR 2009-2010 TRANSFERS - IN MID -YEAR VARIANCE FY 2009-10 ESTIMATE MID-YEAR/ BUDGET FY 2009-10 BUDGET TO GENERAL FUND: *From Special Gas Tax For- $ 3,620,000 $ 3,620,000 0 Street Maintenance-$3,130,000 Street Lighting - $490,000 *From Traffic Safety For- 1,490,000 1,540,000 50,000 Police Costs *From 1/2 Cent Sales & Road Tax For- 1,350,000 1,350,000 0 Administration - $250,000 Street Maint. - $500,000 Street Lighting - $600,000 *From Cultural Development Fund For- 457,000 457,000 0 Fine Arts & Civic/Promotional $357,000 Dept. Costs for special events $100,000 *From Storm Drain Construction For- 132,700 132,700 0 Administration *From Refuse Fund For - 3,546,700 3,546,700 0 Administration $1,980,200 Graffiti/Dump 244,700 Lease City Yards 600,000 Lease City Hall 55,200 Street Impact 500,000 NPDES Coord. 66,600 Communicat/Grants 30,000 Tree Trim Costs 70,000 *From Sewer Line Construction For- 225,000 225,000 0 Administration *From Sewer Line Maint. Fund For- 380,000 380,000 0 Administration $250,000 Street Impact $100,000 Tree Trim Costs 30,000 *From CFD 1033-Fire Station Fund For- 535,000 562,600 27,600 Maintenance & Operation Costs *From Information Technology Fund For- 0 50,000 50,000 Refund available balance *From Fleet Fund For - 392,800 492,800 100,000 Refund carryover vehicle funds $392,800 Refund available balance $100,000 � 7 CITY OF SAN BERNARDINO DETAIL OF INTERFUND TRANSACTIONS FISCAL YEAR 2009-2010 TRANSFERS - IN MID - YEAR VARIANCE FY 2009-10 ESTIMATE MID-YEAR/ BUDGET FY 2009-10 BUDGET *From Transportation Fund For - 240,000 240,000 0 Traffic Engineering Costs $100,000 Maint/Fuel Alt. Fuel Veh $140,000 TOTAL GENERAL FUND $12,369,200 $12,596,800 $227,600 TO ANIMAL CONTROL FUND: *From General Fund For - $ 270,700 $ 239,000 $ (31,700) Operating Costs TO LIBRARY FUND: *From General Fund For - 1,908,100 1,848,500 (59,600) Operating Costs *From Cultural Development Fund For- 250,000 250,000 0 CA Room/Special Cultural Events TO REFUSE: *From General Fund For - 35,000 35,000 0 Street Sweeping & Graffiti Program TO CENTRAL SERVICES FUND: *From General Fund For - 48,300 59,600 11,300 Operating Costs TO SEWER LINE MAINT FUND: *From Information Technology Fund For - 78,000 78,000 0 Loan Repayment TOTAL OTHER FUNDS $ 2,590,100 $2,510,100 ($80,000) GRAND TOTAL TRANSFERS-IN $14,959,300 1$15,106,900 $147,600 CITY OF SAN BERNARDINO DETAIL OF INTERFUND TRANSACTIONS FISCAL YEAR 2009-2010 TRANSFERS - OUT MID -YEAR VARIANCE FY 2009-10 ESTIMATE MID-YR/ BUDGET FY 2009-10 BUDGET FROM GENERAL FUND: *To Animal Control Fund For - $ 270,700 $ 239,000 $ 31,700 Operating Costs *To Library Fund For - 1,908,100 1,848,500 59,600 Operating Costs *To Central Services Fund For - 48,300 59,600 (11,300) Operating Costs *To Refuse Fund For - 35,000 35,000 0 Street Sweeping - $ 35,000 TOTAL GENERAL FUND $2,262,100 $2,182,100 $ 80,000 FROM SPECIAL GAS TAX: *To General Fund For - 3,620,000 3,620,000 0 Street Lighting-$490,000 Street Maintenance-$3,130,000 FROM TRAFFIC SAFETY: *To General Fund For - 1,490,000 1,540,000 (50,000) Police Costs FROM 1/2 CENT SALES/ROAD TAX: *To General Fund For - 1,350,000 1,350,000 0 Administration $250,000 Street Maint $500,000 Street Lighting-$600,000 FROM CULTURAL DEVELOPMENT *To General Fund For - 457,000 457,000 0 Fine Arts/Civic Promotional $357,000 Dept Special Events Costs $100,000 *To Library Fund For - 250,000 250,000 CA Room/Special Cultural Events FROM STORM DRAIN FUND *To General Fund For - 132,700 132,700 0 Administration of Fund 1d CITY OF SAN BERNARDINO DETAIL OF INTERFUND TRANSACTIONS FISCAL YEAR 2009-2010 TRANSFERS -OUT MID -YEAR VARIANCE FY 2009-10 ESTIMATE MID-YR/ BUDGET FY 2009-10 BUDGET FROM REFUSE FUND *To General Fund For- 3,546,700 3,546,700 0 Administration $1,980,200 Graffiti Waste 244,700 Lease City Yards $ 600,000 Lease City Hall $ 55,200 Street Impact $ 500,000 NPDES Coord. $ 66,600 Communict/Grant $ 30,000 Tree Tim Costs 70,000 FROM SEWER LINE CONSTR FD *To General Fund For - 225,000 225,000 0 Administration FROM SEWER LINE MAINT FUND *To General Fund For - 380,000 380,000 0 Administration $250,000 Street Impact $100,000 Tree Trim $ 30,000 FROM INFORMATION TECHNOLOGY FUND *To Sewer Line Maint Fund For - 78,000 78,000 0 Loan Repayment *To General Fund For- 0 50,000 (50,000) Refund available balance FROM CFD-1033-FIRE STATION FUND *To General Fund For - 535,000 562,600 (27,600) Maintenance & Operation Costs FROM FLEET FUND 4 ? n= *To General Fund For- 392,800 492,800 (100,000) Refund carryover vehicle funds Refund available balance FROM TRANSPORTATION FUND *To General Fund For- 240,000 240,000 0 Traffic Engineering $100,000 Maint/Fuel Alt. Fuel Veh $140,000 TOTAL OTHER FUNDS $12,697,200 $12,924,800 $ (227,600) GRAND TOTAL TRANSFERS-OUT 1$14,959,300 1$15,106,900 1 ($147,600) 1 � The Budget Challenge: City of San Bernardino Fiscal Year 2009-2010 Mid Year Presentation Charles E. McNeely, City Manager Barbara Pachon, Director of Finance March 11, 2009 Agenda 1) Opening Comments 2) Historical Overview 3) Mid-Year Report and Recommendations 4) Dr. John Husing 5) 5-Year General Fund Projections/Budget Outlook 6) Budget Strategies 7) Next Steps 1 Historical Overview Forces Behind the Budget Challenge 7? FY 2007-2008 to FY 2009-2010 • Collapse of the financial industry • Steep decline in housing values • Skyrocketing-fioreclosure rates _ • Escalating unemployment rates • Stock Market incurs record losses • State of California has a multi-billion deficit through FY 2009-2010 2 i . Direct Impacts • Unemployment is highest in more than 20 years - 18.1% in December 2009 • Sales tax revenue estimate ($20.7 million), at lowest level in 15 years and more than $16 million less than FY 2005-06 revenues • Major development revenues are down $3.3 million from FY 2006-07 • Utility user tax and property tax revenues are down a combined $6.25 million from their respective peaks Unemployment Of the 49 metropolitan areas with a Census 2000 population of 1 million or more,Detroit- Warren-Livonia,Mich.,reported the highest unemployment rate in December 2009, 14.9 percent.The large area with the next highest rate was Riverside-San Bernardino Ontario,Calif.,14.0 percent. Unemployment Rates from 2000 to 2009 20.0 16.0 __ _..... ___. _.. .... __._. 12.0 8.0 4.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 r-Aaev,ide — Ivi Riverside�Sis on, Or rf San SerwrElw SWree:us bkpurhnearc ojlcbw 3 Sales Tax Revenue in Free Fall Drop of$16 Million From Peak SW1160y00 M x53 C95 S35.II M -.. a3xx.x13 195B9,9O] - fW$MfIW Maa.seu n.5@.Sn faMOpM ,LIMY zoess.Wo fm.000A00 A[IUe13W0� A[IUIH101- AcwI Mx- A4N12 J A1.112 S- AITWIA01� Aclue13W8- kl—rt 3W1 IW3 IM 3001 IOxS 3W5 M7 1.8 3W9 9W8e130M� 3010 Utility User Tax Drop of$2.55 Million From Peak M,5M.fl0 fUAMAM N.OMMS x88ox.M8 1UM5a s anus s x+.eM,as xuxw.ux fxB" M Ie.uz.re5 17.W.10 f15AMA00 Actu I1 A..I MI-AclwIx A..0 M} A.... Al.n=p Ac.]1 A..I MI Ao.12[ ReveeC 2W1 LN 2W3 M 3M5 M 3M7 3W8 3M9 Bd8et3M9- 3010 4 Property Tax Drop of$3.7 Million From Peak (memo Yom�VeYek 44.) l35.WOA00 66008]40 ]1,95.606 n,82114 l 30,017M $30.M.N $15,Wp 1 13.N1.)N 330,WO,OW 1."42 16,25.4,35.4 p,0W,019 1].672.]46 IIS,WO,CgI ACW2W0. A[W12W1- AGm 12M-Ac1 12W1 AcW1200- MW11W5 Ac W206 A9a12W7- A MUW& Rc3 3W1 3003 3W3 10W 3W5 3006 2W7 SWB 2W9 & ,2009. 2010 Major Development Revenue Drop of$3.3 Million From Peak pvYo B�Yen R.Iklntlk BdRlry A G'wM1nWn h Wu,Yh.11ere N 0.Rh m.pnhn.Y Ybn Oed) IO.OSS.]M (10,000,000 enl.6m e.mm P.0.M.WJ ]9ro.m N.69.aao ]'eO� e],M,M aan9m e.4n.la e.mese6 36.RO9.0oo 69]0.616 6.111.N] 1e,460M0 AWW2Wp. MW NqI. A.YI#M. AaYl2W1 AeY1194 Aeul]NS AaW Ab6. AtW]W]. A-12WL B.wY dAp 2001 1(M 2N3 DUI IppS 1006 IW) 2.1 199 3935010 5 Impacted City Services (partial list) • 32% of Parks & Recreation staffing cut — Nicholson Community Center closed — Reduced staffing and programs at other centers — Parks maintenance reduced • City Hall Closed on Fridays — less hours available to public; less time to handle unchanged workload. — 10% cut in employee compensation • Development Services staffing cut by 15% Impacted City Services (partial list) • Police Department overtime for "corridor i patrols" eliminated • 16 sworn Police Department positions unfunded • 23% of Information Technology staffing cut- no contingency for computer replacements/upgrades • 12 vacant firefighter positions unfunded (change from 4-man staffing to 3-man on some engines) V _ Iii 6 Impacted City Services (partial list) • Library Budget cut by over $700,000, Library hours of service reduced. • Facilities Management staff cut by 1/3- maintenance delayed/deferred • Administrative & non-sworn positions deleted throughout all City Departments. Historical Overview: Where Does All the Money Go? A Brief Review: FY 1999-2000 through FY 2009-10 V °9& 7 FY 1999-00 through FY 2009-10 • General Fund expenditures increased from$81.2 million to $139.2 million- increase of$58 million of which $44.8 million or 77.2% attributed to public safety. • Personnel expenditures increased from 71%to 76%of the General Fund — Operations(M&O,Transfers out,Contract Services)decreased from 26%to 20% — Debt Service increased from 2%to 4% • Public Safety expenditures increased from 65%to 71%of the General Fund. — Development Services decreased from 8%to 3% — Parks and Recreation decreased from 5%to 3% General Fund Expenditures by Department 59Y /]Y Kf a211p <OY NY i0Y �'1 t0Y +:1 t' 1 15» 16Y I9Y e» sY <Y 0Y Police Fie Pu Services Desebmem Pae9ARe<.& Pa<tlYes Oft, Serve's Cows Sv e. Mamgmenl ■ACNAL 1999-00 ■ACNAL 2004-05 ❑BUDGET 2009.10 8 Finance FY 2009-2010 Mid-Year Budget Overview The Ongoing Budget Challenge San Bernardino Not Prepared for Sharp Downturn • Insufficient General Fund reserves • Escalating personnel costs • Unfunded retirement liabilities • Equipment condition declines 9` • Infrastructure decay • Substantial deferred maintenance • Weak borrowing position • 2007 Management Partners organizational study: "Financial condition is fragile." 9 Cumulative Deficit From 7/1/08 to 6/30/10 Budget Deficit Projections: • FY 2008 709 Deficit: ($26,398,829) • FY 2009-10 Deficit: ($24,572,100) • 1st Qtr FY 2009-10 Additional Deficit: ($4,900,000) • Mid Year FY 2009-10 Projected Deficit: ($3,437,400) • Cumulative Budget Deficits FY 2008-09 & FY 2009-10: ($59,308,329) Deleted Positions in FY 08-09 Adopted: 87 Deleted Positions at Mid-Year 08-09 96 Total Deleted positions 183 With $59.3 Million the City Could: Fill 25,000 potholes $ 2,500,000 Trim 3,500 trees $ 525,000 Repair or replace 1,500 streetlights $ 118,500 Mill and overlay 20 miles of streets $ 7,920,000 Slurry seal 100 miles of-streets $ 6,336,000 Hire 100 police officers $ 12,752,400 Hire 50 firefighters $ 6,673,800 Maintain all City parks(730 acres)at industry standards for 1-year $ 6,059,000 Fund Reserve at 11.8%of GF $ 16,415,300 Total $ 59,300,000 ° A 10 Finance FY 2009-2010 Mid-Year Budget Overview Current Deficit and Recommendations Recommended Actions • Receive and File the FY 2009-10 Mid-Year Budget Report. • Authorize the Director of Finance to amend the FY 2009-2010 budget as outlined in the staff report which includes making the loan from the Regional Development Impact Fee Fund to the General Fund of$1.6 million. 11 The State of the Inland Empire and East Valley Economies and Likely Impacts on the San Bernardino City Budget Dr. John Husing V p Five Year General Fund Projections / Budget Outlook !, t 12 Key Assumptions 1) Non-recurring items not included starting with FY 2010-2011 — $2 million revenue from sale of property — $2.6 million revenue from audits — $2.9 million from loans — $.5 million Internal Service Fund balances — $5 million employee MOU concessions Key Assumptions 2) Revenues assumptions Best Case Most Likely Worst Case FY10-11 -0.5% -1.0% -2.5% FYI 1-12 0.5yo -1.0% -1.5% FY12-13 1.0% 1.0% 1.0% FY13-14 2.0% 1.5% 1.0% FY14-15 3.0% 2.0% 1.5% 13 Key Assumptions 3) Expenditure assumptions Salaries — 3%for Charter 186 salary increases — 16 COPS Grant positions retained after grant ends(FY 2013) — SB621 Indian Gaming Grant Funds end 6/30/10 — No salary increases assumed except for step increases — Overtime costs increased each year from pay increases Retirement - PERS provided estimated rates for future years - Starting FY 2011-2012 Safety PERS rates increase at 4%per year - Starting FY 2011-2012 Misc.PERS rates increase at 3%per year Key Assumptions 3) Expenditure assumptions (Continued) Other personnel costs — Retirement Health Costs City continue to follow PERS policy — Safety continues to receive higher retirement health costs per MOU u — City health contributions tied to Kaiser rates increase each year Other operational costs — 2% increase factored into each year — No new debt issued — Annual $1.1 million budget expenditure savings , . r 14 Key Assumptions 3) Expenditure assumptions (Continued) Loan repayments - EDA $1.3 million loan paid back FY 2010-11 - Regional DIFF $1.6 million loan paid back FY 2011-12 Items not included in assumptions - Replenish reserves - Replacement plan for equipment/facilities - Update technology (IT Strategic Plan) - Employee payouts at retirement/separation from City Worst Case Scenario Updated __Fmjeeted Projected ProFaed__, Projected_ Projected 2009.2010 1 2010.2011 2011-2012 2012-2013 2013-2014 2014-2015 e NoN Fund Balance S 2,557,900 S 1,770A00 f 1,770,400 5 1,770,400 f 1,770,400 S 1,770,400 Total Taxes _ _84,363,900 82,254,900 81,021,100 81,831,300 82,649,600 83,889,300 Total Other Revenues 50,469,500 41,370,800 40,750,300 41,157,900 41,569,300 42,1929900 _TObl Estimated Reves,es 1349833,/00 12396259700 12197719400 122,999pill 124,218,900 126,082,200 __.—__.;�_ EapesdiNres: - - - - -� Salaries; 10],065,600 ll],338,900 122886900 130,594,600 138,880,400 140,905,500 ,tubtusce&Operation 5,457,100 _ _ 5,566$00 5,677,500 5,791,000 5,906,800 6,025,000 _ontnemel Servkea 7,039,600 7,180,400 7,321,000 7,070,500 ],620,000 ],7]2,400 Internal Service Charges 13 539,100 13,810,000 14,086,200 14,367,900 14,655,300 14,948,400 _apital0utlay. 758200 773,400 788,900 904,700 M 29 800 837,200 Debt Service CM1arges 2,259,600 2,259600 2,259600 21259,600 2,259,600 2,259,600 an Repayment - 1,308,700 1,629,400 - _ - _ et Expenditure.SevuBs Factor (2680,400) (1,000,000 . _(1000,000) (1000,000) .(1000,000) _(1,000,011o) antlers Out 2,182,100 2,600,000 2,652,000 2,705,000 2,759,100 2,814,300 Total Estimate Expenditures 8 135,620,900 S 149,8379100 $ 156,304,400 $ 162,993,300 S 171,902,000 f 174,562,400 Revenue Over(Under)Expemes (787,500) (26,211,400) (34,533,000) (40,004,100) (47,683,100) (48,480,200) eserve Food Balance S 1770,400 f 24,441,000 $ 32,762,600 S 38,233,700 f 45,912,700 $ 46,709,800 15 Best Case Scenario Updated Projected _ Projmu d _ Projected js.�ehd _Projected - _ 2009.2010 1 2010-2011 2011-2012 2012-2013 20M2014 20144015 Beginning Fund Batsman S 2,557,900 S 1,770,400 S 1,770,400 $ 1,770,400 S 1,770,400 $ 1,770,400 Estimated Revenue: _ Total faxes _84„M3,900 _ 83,934,000, _ 843L63,900 85,207,900 86,912,000 _ 89,519,200 Total Other Revenues 50,469500 42195100 42,505j600 42,930,900 43,789,400 45,103,100 Total Estimated Revenues 134333,400 126,129,100 126369,500 128,138300 130,701,400 134,622,300 740,5.. _ E.peaaditgarve: 7474 alarim: 107 065,600 1_1 ,7 338,800 122,886,800 130,594,600 138 880,400 140,905,500 _-_- - _ -_ 8 0740 746,,5 aateumm&Operation 5,437,100 5,566,200 5,677,500 5,791,000 5,906,800 6025,000 7474__ 7474 _..- mtnctual Servkes 7,039,600 7,180,400 7,321,000 7/]0,500 ],620,000 7,772,400 -. 6,74,5 . -' 74 7474 740,5 7400 7474 eteroal Service Charges 13539100 13810000 4086,200 14,367,900 14,655300 14,948,400 _. _ 7474 740 .. -1- 88_9,5_ 0740 "M and. _ 758 200 773,400 788,900 804 700 820,800 837,200 0074 - 7474.__ 0000.._ De be Se mice Charges 2,259600 2,239,600 2259,600 2239600 4259600 _ 22, 59600 _. _ 7474_ - 7474 _ . 7400 _ L..R.L.,X.na 1,306,700 1,629,400 7474 - EfL Ex p e ndturt Savings.Factor (2680,400) {1 000 (1000,000) (1,000,000) (1poo,000j 000 p,000,000 nnfen Out 2,182,100 2fiN.OM 2,652,000 2,705,000 2,759,100 2,814,300 Total Estimate Expenditures_ $ 135,620,900 S 149,837,100 S 156)04,400 $ 162,993,300 $ 171,902,000 $ 174,562,400 Revenue OverjUnder)Expenses (787300) (23,708,000) (29,434,900) (34,854,500) (41,200,600) (39,940,100) eserve Food Balanrt S 1,770,400 $ 21,937,600 $ 27.664,500 S 1J 08/,100 5 39,430,200 S 38,169,700) Most Likely Scenario _ Updated Projected Projected Projected__7406,Projected. Projected___ 0740_ 0 00 . 7406, 20093010 2010-3011 101140@ 2012-2013 2013-1014 20143015 Beginning Fund Balmce S 2,557,900 S 1,770,400 $ 1,770,400 S 1,770,400 S 1,770,400 S 1,770,400 7474 7474_. Estimated Revenue: Total T 7474 84,363,900 83,520,200 82,685)00 _ 83,511,600 84,765,100 86,160,300 7474 000 ,5 _- 7474_. -_ 7oal Ober Rev<mes 50,469500 41,983,300 41363,800 41,979,200 42,509,500 43,162,000 Total Estimated Revenues 134,833,400 125,503,500 124,249,100 1259490,800 127,374,600 129,922300 xpevdimrte:_ 7406, ". 5.600 074,5 SW 7474 30,5..74__ . 7474 3._ alaries: 10]065,600 117,338,800 122,886,800 130,594,600 1.38880400 140,905,500 _aintevance&Operation 5,157,100 5,566,200 5,677,500 5,791,000 5,906,800 6,025000 4, _._ 7474 _.9ntncavl S"ic" ],039,600 _ 7180,400 7324,000 7471 0,500 7,620,000 ],]]2,400 -_.- ateroalServkeChergea 13,539,100 13810,000 11,086,200 14,367,900 14,655,300 Id,948,400 _. ._ 4674_ _- _-. a�el Outlay 758,200 773,400 788900 604,700 820800 831200 Debt Service Chasgea 22�RIO' 2,239600 _ _2,259,600 2,259,600 2359600 2,259,600 7474 - _ _ _. .. ._.___. U.Repvymenn 1,308 700 1,629,d00 __. ._EsLE pe ditum Sevinps Fareor (26 1,000,000 1,000,000 1000000 1000000 1,000,000_ - -�) ( ) ( ( ) __1 nnefen Out 2,1 2,600,000 2,651,000 2,705,000 2,759,100 1 2,814,300 olal Estimate Expe n iures $ 133,620,900 S 149,837,100 $ 156,304,400 S 162,993,300 S 171,902,000 S 174,562,400 _eves..Ov..tV.der)Experoes (787,500) (24,333,600) (32,055,300) (37,502,500) (44,527,400) (44,639,900) nerve Fund Balance S 1,770,400 5 22,563,200 S 30,284,900 S 35,732,100 $ 42,757,000 S 42869,500 16 Long-Term Budget Issues • Staffing issues • Increasing labor costs • 10 % employee concessions expire on 6/30/10 — $5 million annually • PERS cost increase in FY 2011-12 to FY 2014-13 to make up for market losses — $3 million annually • COPS hiring funds to replace 16 officers - Retention costs after 3 or 4 years is $2 to $2.5 million annually • Future State takeaways — Since 1992 the State has taken $36,112,543 from the City AbMbb Long-Term Budget Issues • Infrastructure challenges • Deferred maintenance on City facilities — $1 million annually for 10 years. • City Hall must be retrofitted or moved —Debt service of$2 to $4 million annually. • Use of one-time budget balancing measures —$13 million in FY 2009-10 • Economic leakage • Declining tax revenues —UUT, property and sales • Declining General Fund Reserve 17 Budget Strategies • Implement operational efficiencies • Consolidation of services with other agencies — possible joint ventures • Revenue enhancements • Manage labor costs • Economic Development yi Next Steps • Schedule additional workshops • Discuss detailed strategies • Develop action plans b 18