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HomeMy WebLinkAbout01-City Administrator h c . . .> i" '.....~ .' INTRODUCTION ~~ ~~~ ar ~~.~ BUDGET SUMMARY The 1988/89 General Fund budget respectfully submitted accordance with the direction given by the Mayor and items addressed by the 1988/89 recommended budget are: l. Balanced budget Only 1988/89 estimated resources exclusive of reserves are applied to 1988/89 estimated expenditures. was prepared in Council. The 2. Building Reserves The 1988/89 General Fund estimated beginning fund balance of $l,128,883 is for the most part untouched in the recommended budget. This provides a base for future reserve building efforts. 3. Equipment Replacement - As a result of equipment purchases being deferred in prior years the City is in need of equipment. The 6 year lease purchasing method recommended in the 1988/89 budget allows the City to have use of $2,215,450 of equipment for $1,167,108 of first year costs. 4. Capital Projects - This recommended budget includes a proposed increase of $119,968 over the prior year's budget of $70,980. The different amount on Chart.l represents committed projects from prior budget years. 5. Expanded Programs The amount of $112,000 is proposed for personnel in the Code Enforcement and Public Buildings areas. Other department proposed expanded programs will be deferred for review by Ways and Means. This was done to allow the Ways and Means Committee to evaluate the validity of each expanded program's proposed revenue resources and use of those resources independently of the more regular and stable budget activity. GENERAL OVERVIEW OF RESOURCES AND USES OF RESOURCES Resources There are three types of resources, excluding reserves, available for General Fund expenditures. These are: Direct Revenues Transfers from other funds Departmental credits Direct Revenues are revenues recorded in the General Fund. Transfers from other funds are revenues that are required to first be recorded in separate funds for accountability. Departmental performed by credits are of course in-house charges for services various departments. The resource aspect of Departmental Credits comes into play when other funds or agencies are charged, such as the Refuse fund or the Redevelopment and Water agencies. The budgeted 1987/88 General Fund revenues were $51,729,684. This amount was revised at mid year to $51,631,941 which represents a .19% decrease. The estimated 1988/89 General Fund revenues are $57,191,987, a 10.7% increase over the revised 1987/88 estimate. MAJOR GENERAL FUND SOURCES FOR REVENUE FOUR LARGEST Sales Tax Sales Tax revenues are received from the state quarterly. The City receives 1 cent of the 6 cents state tax. Sales Tax represents the largest single revenue source in the General Fund. The 1987/88 estimated amount was revised at mid year from $18,981,749 to $18,952,750. The estimate for 1988/89 is $20,180,935 which is a 6.4' increase over the 1987/88 revised estimate. In April 1987, the City contracted with Municipal Resource Consultants (MRC) to perform the sales tax audit. The purpose of this audit was to help ensure the correct crediting of sales tax to the City. MRC charges the City 25' of additional sales tax revenues and a $9000 annual fee for its services. MRC's preliminary audit was concluded in February 1988. The audit indicates that the City will receive from $50,000 to $100,000 in misallocated sales tax beginning in the 1988/89 fiscal year. This estimate has been incorporated into the 1988/89 estimate. For 1988/89 the State estimates that there will be a 6' increase in sales tax revenues over 1987/88. The 1987/88 fourth quarter sales tax allotment will not until July or August, however, based upon a combination of information received from MRC and the State of California years experience I feel that the 1988/89 sales tax revenue very realistic. Uti1itv Tax Utility Users Tax is the second largest revenue source in the General Fund. The 1988/89 estimate of $11,062,000 is up 8.4' over the 1987/88 revised estimate of $10,200,000. This revenue is generated by an eight (8)' tax on all utilities used within the City limits. An increase of l' of the utility users tax prOduces approximately $1 million in revenue. be received reports and and prior estimate is Prooertv Tax Property Tax revenues for 1988/89 estimate of $7,437,000 which makes it the third largest revenue source. The 1988/89 estimate is 1.1' over the 1987/88 revised estimate. The City's share of the property taxes collected by the County is approximately 25 cents per $100 of assessed valuation within City limits. The assessed valuation for the 1987/88 fiscal year is $2,624,474,029. Motor Vehicle In Lieu rhe fourth largest General Fund revenue source is Motor Vehicle in Lieu. The 1988/89 estimate of $4,857,360 is 10.4% over the 1987/88 revised estimate. This revenue is received from the State and is based upon population. The State distributes this revenue in lieu of local personal property taxes. The latest population figure of 1148,370 was used in determining this estimate. Uses of Resources There are two forms of resource use in the recommended 1988/89 budget. These are: Direct Expenditures Transfers To Other Funds Direct Expenditures like Direct Revenues are recorded in the General Fund. Transfers to other funds are monies transferred to other funds to subsidize their operation. Examples of this are the Library and Animal Control Funds. MAJOR USE OF RESOURCES Personal Services The single largest use of General Fund resources (81% of total) is Personal Services. The 1988/89 estimate amount is $44,991,730 which is 22% over the 1987/88 revised estimate. The City has increased personnel for the past 6 years even though a hiring freeze was in existence. This in addition to various salary adjustments and the loss of federal revenue sharing monies used to offset personal services has contributed to the lack of General Fund reserves. CONCLUSION In conclusion, we believe that based upon the factors previously mentioned the revenue estimate of $57,191,987 is sound. We would urge the Mayor and Council to keep this in mind while reviewing the 1988/89 recommended budget. REVENUE COMPARISON REPORT ------------------------- GENERAL FUND REVENUES - BY CATEGORY PROPERTY TAXES OTHER TA)(ES LICENSES AND PERMITS FINES & PENALT1ES USE OF MONEY & PROPERTY INTERGOVERNMENTAL CURRENT SERVICES MISCELLANEOUS REVISED ESTIMATE ESTIMATE ESTIMATE 37-88/88-89 1987-38 1987-83 1 't88 -89 % CHANGE ----------- ----------- ----------- ----------- 7,060,000 7,355,000 l,437,000 1 . 11 31,772,076 31,468,700 33,748,335 7.24 3,620,903 3,343,040 5,069,976 31.75 258,000 254,440 253,000 1.39 761,210 871,047 913,547 4.87 5,757,432 5,486,269 6,036,433 10.02 1,673,663 1,422,982 2,362,546 66.02 821,:350 925,463 1,365,600 47.55 ----------- ----------- ----------- ----------- 51,729,634 51,631,941 57,191,987 10.76 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- GENERAL FUND REVENUES - BY MAJOR SOURCE RE:VISED ESTIMATE ESTIMATE ESTIMATE 37-38/83-8't 1987-83 1987-88 1988-89 % CHANGE ----------- ----------- ----------- ----------- SALES TAX 18,931,749 18,952,750 20,180,935 6.48 UTI Ll TY USERS TAX 10,382,250 10,200,000 11,062,000 8.45 PROPERTY TAX 7,060,000 7,355,000 7,437,000 1.11 MOTOR V!HI CLE IN LIEU 4,676,253 4,398,777 4,857,360 10.42 BUSINESS LI CENSES 2,443,188 2,450,000 2,695,000 10.00 FRANCHISES 1,178,077 1 , 1 :35 , 9~, 0 1,265,950 11.44 TRANSIENT OCCUPANCY TA}{ 1,060,000 1,000,000 1,050,000 5.oel DEVELOPMENT FEES 671,294 571,177 1,211,678 112.13 OTHER 5,276,873 5,568,Z::c7 7,432,064 33.47 ----------- ----------- ----------- ----------- 51,729,684 51,e.31,'?41 57,191,987 10.76 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- EXPENDITURE COMPARISON REPORT ----------------------------- GENERAL FUND EXPENDITURES - BY FUNCTION 52,027,239 REVISED ESTI MA TE ESTIMATE 87/88-88/89 1987/88 1988/89 I. CHANGE ----------- ----------- ----------- :36,876,827 44,991,730 22.00 13,420,339 16,236,224 20.98 1,060.,307 1,167,108 10.07 331,119 190,948 -42.34 -5,103,315 -6,561,240 28.56 ----------- ----------- ----------- 46,585,277 56,024,770 20.26 ----------- ----------- =========== ----------- ----------- ESTIMATE 1987/88 PERSONAL SERV ICES W* 9'nl""'I'" ~~: ;~;: ;:; MATERIALS, SERV & SUPP 15,686,595 EQUIPMENT 1,476,609 CAPITAL IMPROVEMENTS 3b8,275 DEPARTMENTAL CREDITS -6,037,503 ----------- ----------- GENERAL FUND EXPENDITURES - BY MAJOR DEPARTMENT REVISED ESTIMA TE. ESTIMATE ESTIMATE. 87/88-88/89 1987/88 1987/88 1988/89 I. CHANGE ----------- ----------- ----------- ----------- POLICE 18,553,908 16,806,777 18,627,221 10.83 FIRE 10,050,619 10,095,416 11,422,383 13.14 PUBLI C BUILDINGS 4,468,372 4,169,133 4,413,991 5.87 PARKS & REC 4,412,156 3,803,084 4,803,583 26.30 STREET 3,659,711 3,511,526 4,125,527 17.48 ENGINEERING 1,894,467 1,725,807 2,542,707 47 .33 OTHER 8,988,006 6.,473,534 10,089,358 55.85 ----------- ----------- ----------- ----------- 52,027,239 46,585,277 56,024,770 20.26 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- - c ~~ ~ ~ ~ 0 ~e lQ ,..- m f .- "..: ~ ..q- co to to ~ . --+---J . N . I 0 III .. en en 0 Gl 0. Ul Q) 4-J U :.:; e :J () E ..-- "00. 0 I .- . ,- c:~ Q) 2: L . 4- Gl~C Q) 0 I .- n.. c 0 Q) ll. +--' (f) ~O- (f) C ::l! Q) --0 (f) III 'l) () C Q) Gl.. Ul 0 0 c: . 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