City of FillmoreMidyear Budget Recap

March 27, 2012

What happened to the money?(graph uses Actuals)

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FY 2009 FY 2010 FY 2011 FY 2012

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Revenue and Other Sources Expenditures and Other Uses

What happened to the money?

• In FY 08-09, the State overpaid Triple Flip (Sales Tax-in-Lieu) $3.7 million

• In FY 09-10, the State took $1.1 million back by not paying us Property Tax and/or Motor-Vehicle-in-Lieu.

• In FY 07-08 & FY 08-09 , the City was overpaid $2.9 M in Sales Tax.

• In FY 09-10, the State also took $440k as a loan.

What happened to the money?

• Additional revenue related to Sales Tax and overpayments of Triple Flip and estimated Sales Tax.

• Money has been taken away/held from the City as a result.

• That’s what happened to the “additional” money.

What are the issues now?

• Three main issues:

1. Budget Gap (approx. $1 million) between ongoing General Fund expenses and revenue=City can’t afford current service levels.

2. Elimination of the RDA by the State. Used to provide $864k to pay for GF services. Elimination of RDA left hole in budget.

3. BOE decisions on Sales Tax appeals. Repayment of Sales Tax.

What has the City done to date?• Over last 2 years, the City has cut $2.9M

and used reserves to balance the budget• GF decrease of about 40% • Service cuts (e.g. Motorcycle Officer)• 13 employees laid off• Remaining employees had 18.5 % pay

reduction • Tried to raise revenue. Increased user

fees, put temporary Sales Tax increase on ballot (didn’t pass)

• .

Where do we go from here?

• City needs up to $1.5 million for next year– More Layoffs/ create part-time positions. – Operational/Service changes to free up time

for other necessary services • Close parks/restrooms during the week• Contract services• Trash service at parks done differently.• Safety tree trimming and Code, no street repair

Where do we go from here? (cont.)

– Police. – Further Reductions Possible.– Grants. Chief McGrath has done a remarkable job of

obtaining grants. Latest is a $140k gang prevention grant over two years.

– Fire.– Further $25 reduction to Paramedic stipend.– Update on County/AMR Paramedic services.

County planning to relocate paramedic out of Fillmore Station and AMR stages in SP when there is heavy call volume.

Where do we go from here? (cont.)

– Increase Volunteerism. Fillmore is a generous community. Council has promised to make space available to a Volunteer Coordinator.

Where do we go from here? (cont.)

– Pool Sponsor. There is an ongoing GF $77k pool subsidy. Suggestions have been made about a business sponsor to help close the gap. Alternative is to close pool 6/30/12 or reduce months of operation/hours.

Where do we go from here? (cont.)

– Utility Billing. Not GF; however, review and analysis of accounts is necessary. Staff back to Council with suggestions in May.

Recommendation

• Provide feedback to staff • Adopt Resolution 12-3331 declaring a

Fiscal Emergency

Questions?