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City of Menifee Budget adoption Fiscal Year 2013/2014. “Establishing a solid financial foundation while prudently planning for the future”. June 18, 2013 7pm . Improving the quality of life of Menifee residents. Overview. Robert Johnson, Interim City Manager Budget: Team Approach - PowerPoint PPT Presentation
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“ESTABLISHING A SOLID FINANCIAL FOUNDATION WHILE PRUDENTLY
PLANNING FOR THE FUTURE”
CITY OF MENIFEEBUDGET ADOPTION
FISCAL YEAR 2013/2014
JUNE 18, 20137PM
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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OVERVIEW
•ROBERT JOHNSON, INTERIM CITY MANAGER•BUDGET: TEAM APPROACH• THE BUILDING OF A COMPREHENSIVE
MUNICIPAL BUDGET•BUDGET HIGHLIGHTS• BALANCED BUDGET, PERSONNEL, EXPENSES
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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THE BIG PICTURE•STAFF IS CONTINUING TO DO MORE WITH LESS•WHAT DOES THIS MEAN?•$4M LOST TO VEHICLE LICENSE FEE REDUCTION – THIS FIGURE CONTINUES TO RISE AS OUR POPULATION RISES ($50 P/CAPITA)•THIS YEAR WILL BE $4,114,600, OR THE COST OF: •17 POLICE OFFICER POSITIONS, CONSTRUCTING A NEW FIRE STATION, CONSTRUCTING 2 NEW PARKS, COMPLETING A PROJECT LIKE THE NEWPORT ROAD WIDENING OR THE MENIFEE ROAD MISSING LINK
•INCREASED SALES TAX NOT BRIDGING THE GAP, BUT KEEPING PACE
•SALES TAX IS OUR BEST OPPORTUNITY TO INCREASE REVENUE•NEW RESTAURANTS, RETAIL OUTLETS, ENTERTAINMENT VENUES
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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THE BIG PICTURE•STAFF IS CONTINUING TO DO MORE WITH LESS – CONT…•WHAT DOES THIS MEAN?•MENIFEE’S CURRENT POPULATION (5/1/13) IS 82,292 WITH A CURRENT FULL TIME STAFFING LEVEL OF 36•80,593 (2012) SERVED WITH 36 FULL TIME STAFF•77,000 (2011) SERVED WITH 28 FULL TIME STAFF
•NO NEW STAFFING POSITIONS BEING REQUESTED AT THIS TIME
•NO STAFFING INCREASES IN POLICE AND FIRE, BUT INCREASES TO THE CONTRACT RATE DUE TO NEGOTIATED COMPENSATION RATES
•CITY STAFF IS DOING A GREAT JOB, CONTINUES TO PRODUCE A HIGH VOLUME OF WORK AND MORALE HAS DRAMATICALLY IMPROVED
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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BUDGET: TEAM APPROACH
•STAFF IS PRESENTING A COMPREHENSIVE MUNICIPAL BUDGET THAT PROVIDES FOR & PLANS FOR THE FUTURE
•REVENUE GENERATION IS A NECESSARY KEY COMPONENT FOR MENIFEE NOW & IN THE FUTURE
•BRINGING BACK LONG TERM FINANCIAL PLAN AT A FUTURE DATE
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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REVENUE BREAKDOWN
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
MENIFEE’S CURRENT REVENUE STREAMS DO NOT SUPPORT ENHANCEMENT OF CITY SERVICES
AS THE CITY CONTINUES TO COMPLETE ITS SEPARATION FROM THE COUNTY, IT DOES NOT YET HAVE FULL ACCESS TO THE FUNDING SOURCES “TYPICAL” CITIES DO
MENIFEE’S TOTAL & PER CAPITA SALES TAX GENERATION IS DRAMATICALLY LOWER THAN OTHER CITIES IN THE REGION
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CITY OF MENIFEEBUDGET WORKSHOP
FISCAL YEAR 2013/14TERRI WILLOUGHBY, FINANCE DIRECTOR
JUNE 4, 2013
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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BUDGET PURPOSE
•BUDGET IS A FINANCIAL PLAN OF EXPENDITURES•COUNCIL SETS GOALS AND POLICY•BUDGET ALLOCATES RESOURCES TO FOLLOW AND MEET THESE GOALS•BUDGET PROVIDES A MANAGEMENT TOOL FOR STAFF TO CARRY OUT COUNCIL POLICY
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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BUDGET BASICS
•BUDGET: AN ANNUAL FINANCIAL PLAN THAT IDENTIFIES REVENUES, TYPES AND LEVELS OF SERVICES TO BE PROVIDED AND THE AMOUNT OF FUNDS THAT CAN BE SPENT.•BALANCED BUDGET: A BUDGET IN WHICH PLANNED OPERATING EXPENDITURES DO NOT EXCEED OPERATING REVENUES.•FUND: AN INDEPENDENT FISCAL AND ACCOUNTING ENTITY.
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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TAX DOLLARS AT WORK
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
FOR EVERY $1.00 CANDY BAR SOLD WITHIN THE CITY OF
MENIFEE
A PENNY OF THE SALES TAX FLOWS TO THE CITY OF MENIFEE
IF 32 MILLION CANDY BARS ARE SOLD THIS YEAR WITHIN THE CITY
OF MENIFEE
THE CITY COULD PURCHASE A $320,000 FIRE TRUCK WITH THE RESULTING SALES
TAX REVENUE
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BUDGET OVERVIEW
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
REVENUE (+) EXPENDITURES (-)
= PROPOSED BUDGET
&
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BUDGET PROCESS
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
ASSESSMENT(FEBRUARY)
PERFORMANCE MEASURES
CURRENT YEAR MID-YEAR REPORT
POLICY & STRATEGY(MARCH)
• BUDGET PRIORITIES• BUDGET KICKOFF
MEETING
DEVELOPMENT(APRIL)
• DEPARTMENT BUDGETS
• DEPARTMENT MEETINGS
REVIEW(MAY)
• CIP FIXED ASSETS• PREPARE PROPOSED
BUDGET
BUDGET ADOPTION(JUNE)
• CITY COUNCIL BUDGET
WORKSHOP(S)• COUNCIL MEETINGS
BUDGET MANAGEMENT(YEAR ROUND)
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BUDGET SUMMARY
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
60%
12%
8%
20%
Breakdown of City Budget
General Fund
Gas Tax
County Service Areas
Other Funds
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THE FOUR PILLARS
1
NO TAX INCREASES
2
BUILD RESERVES
3
NO ADDED STAFF
POSITIONS
4NO
MATERIAL REDUCTIO
N OF SERVICES
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BUDGET SUMMARY
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
• CITY OF MENIFEE IS FISCALLY SOUND, DESPITE LOSS OF VLF REVENUES• GROWTH IN OTHER REVENUES• SPENDING PRUDENTLY, MAKING CAREFUL
FINANCIAL DECISIONS AND EXPANDING AS RESOURCES ALLOW• DOING MORE WITH LESS
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BUDGET HIGHLIGHTS: FY 2013/14
• GENERAL FUND BUDGET DOES NOT INCLUDE VEHICLE LICENSE REVENUE LOST DUE TO THE PASSAGE OF SENATE BILL 89 AS PART OF THE STATE’S BUDGET
• BALANCED BUDGET WITH CONTINUED EMPHASIS ON ENHANCING SERVICE LEVELS AS RESOURCES ALLOW
• CAPITAL IMPROVEMENT PLAN INCLUDES $6.0 MILLION IN NEW PROJECTS FOR FISCAL YEAR 13/14
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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GENERAL FUND:OPERATING REVENUES VS. EXPENDITURES
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
2011/12 (Actual)
2012/13 (Adopted)
2013/14 (Proposed)
$18,500,000 $19,000,000 $19,500,000 $20,000,000 $20,500,000 $21,000,000 $21,500,000 $22,000,000 $22,500,000 $23,000,000 $23,500,000
REVENUESEXP.
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GENERAL FUND: REVENUE SOURCES
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
36%
18%16%
10%
11%
4%
5%FY 11/12
Property Taxes
Sales Tax
MVLF
Bldg/Plng/Eng Fees
Franchise Fees
County Augmentation
Misc. Other Revenue
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GENERAL FUND: REVENUE SOURCES
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
43%
24%
10%
13%
4%6%
FY 13/14-Estimated Revenues
Property TaxesSales TaxMVLFBldg/Plng/Eng FeesFranchise FeesCounty AugmentationMisc. Other Revenue
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GENERAL FUND TAX REVENUE:FY 10/11 TO FY 13/14
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
FY 10/11-Actuals
FY 11/12-Actuals
FY 12/13-Revised
FY 13/14-Proposed
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
Sales TaxProp Tax
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GENERAL FUND OPERATING EXPENDITURES
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
DEPARTMENT BUDGET AMOUNT % OF BUDGET
POLICE $9,023,727 40%
FIRE 7,205,915 32%
ADMINISTRATION 1,959,925 9%
PUBLIC WORKS/ENGINEERING 1,212,760 5%
BUILDING & SAFETY 1,205,717 5%
COMMUNITY DEVELOPMENT 945,684
4%
ECONOMIC DEVELOPMENT 544,027
2%
COMMUNITY SERVICES 379,248 2%
CITY COUNCIL 156,056 1%
TOTAL BUDGET: $22,633,059 100%
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GENERAL FUND: EXPENDITURES BY TYPE
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
19%
78%
3%
Salaries & BenefitsSupplies & ServicesCapital
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GENERAL FUND: EXPENDITURES BY DEPARTMENT
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
72%
9%
4%5%
5% 2% 2% 1%
BudgetPublic SafetyAdminCommunity DevelopmentBuilding & SafetyPublic Works/EngineeringEconomic DevelopmentCommunity ServicesCity Council
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NEW POSITIONS: FY 13/14
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
• NO NEW POSITIONS ARE BEING REQUESTED AT THIS TIME• AS THE CITY’S FISCAL POSITION IMPROVES,
POSITIONS MAY BE STRATEGICALLY ADDED AND WILL BE BROUGHT FORWARD FOR COUNCIL APPROVAL
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GENERAL FUND CAPITAL/ONE-TIME REQUESTS
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
DEPARTMENT REQUEST AMOUNT
ADMINISTRATIVE SERVICES
ADDITIONAL SOFTWARE & HARDWARE, COMMUNITY DEVELOPMENT SOFTWARE $327,000
COMMUNITY DEVELOPMENT GENERAL PLAN MODIFICATIONS 200,000
CODE ENFORCEMENT
GRAFFITI TRACKER CAMERAS, LAPTOP REPLACEMENTS AND HANDHELD RADIOS 42,250
POLICEHANDHELD RADAR & HOLDER, SOFTWARE & ACCESSORIES 20,890
CITY CLERK AGENDA MANAGEMENT SOFTWARE 15,000
OFFICE OF EMERGENCY MANAGEMENT
EMERGENCY OPERATIONS SUPPLIES & EQUIPMENT 8,650
PUBLIC WORKS FILE CABINETS/DESK ACCESSORIES 5,000
FIRE FIRE STATION FURNITURE 5,000
OTHER MISC. EQUIPMENT AND FURNITURE 6,300TOTAL CAPITAL AND ONE-TIME EXPENDITURES $630,090
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FUNDING CAPITAL/ONE-TIME REQUESTS
The City pays for Capital and One-Time items from its savings account, or fund balance. To put this in perspective, it is similar to how an individual buys a car.
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FUNDING CAPITAL/ONE-TIME REQUESTS Purchasing a car?
Option A: LoanOption B: Savings
An individual would typically not buy a car from their paycheck, but instead would either use savings or take out a loan. The City is using savings, or fund balance for Capital/One-Time Requests.
OR• Interest payments?• Recurring payments?
• Use of savings?• One lump-sum payment?
GENERAL FUND BALANCE – HISTORY
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
Fiscal Year:
Revenues & Other
ResourcesExpenditures:
Difference:
(Change in Fund Balance)
2008-09 18,801,830 13,116,062 5,685,7682009-10 21,809,864 20,485,098 1,324,7662010-11 24,235,777 21,214,209 3,021,5682011-12 20,229,808 21,023,478 <793,670
>Total: $85,077,27
9$75,838,847 $9,238,4
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ASSIGNED-FIRE SAFETY ($21,532)(AMR REVENUES)
ASSIGNED-INSURANCE
($15,000)(3 X SIR)
GENERAL FUND BALANCE – PROPOSED FY 13/14
GENERAL FUNDUNASSIGNED
AVAILABLE
TOTAL= $8.7 MILLION-38% OF OPERATING EXPENDITURES
$36,532 $2.4 M
EMERGENCY CONTINGENCY
COMMITTED BYCITY COUNCIL –(28%
OF OPERATING EXPENDITURES)
$6.3 M
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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OTHER FUNDS: FY 13/14• THE CITY HAS SEVERAL OTHER TYPES OF FUNDS:• SPECIAL REVENUE FUNDS SPECIAL REVENUE FUNDS ARE USED TO ACCOUNT FOR
THE PROCEEDS OF SPECIFIC REVENUE SOURCES THAT ARE RESTRICTED TO EXPENDITURES FOR SPECIFIC PURPOSES. THE CITY HAS THE FOLLOWING SPECIAL REVENUE FUNDS: GAS TAX, MEASURE A, SUPPLEMENTAL LAW ENFORCEMENT SERVICES, AIR QUALITY MANAGEMENT DISTRICT, COMMUNITY DEVELOPMENT BLOCK GRANT, COMMUNITY SERVICE DISTRICT FUNDS (2012-1 AND 2012-2) AND DEVELOPMENT IMPACT FEES.
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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OTHER FUNDS: FY 13/14• CAPITAL PROJECT FUNDS CAPITAL PROJECTS FUNDS ARE USED TO ACCOUNT FOR
THE FINANCIAL RESOURCES TO BE USED FOR THE ACQUISITION AND CONSTRUCTION OF MAJOR CAPITAL FACILITIES. THE CITY’S CAPITAL PROJECTS FUNDS INCLUDE THE CITY CAPITAL PROJECTS FUND, LLMD 89-1, MENIFEE VALLEY AND SCOTT ROAD ROAD AND BRIDGE BENEFIT DISTRICTS, AND COUNTY SERVICE AREA FUNDS.
• DEBT SERVICE FUNDS DEBT SERVICE FUNDS ARE USED TO TRACK REVENUES
AND EXPENDITURES RELATED TO THE REPAYMENT OF PRINCIPAL AND INTEREST COSTS ASSOCIATED WITH BORROWING MONEY FOR LONG-TERM OBLIGATIONS, IN THIS CASE THE CITY’S OBLIGATION ASSOCIATED WITH THE TOTAL ROAD IMPROVEMENT PROGRAM FINANCING COMPLETED IN MAY 2012. IMPROVING THE QUALITY OF LIFE OF MENIFEE
RESIDENTS
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OTHER FUNDS: FY 13/14
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
FUND
BEGINNING FUND BALANCE-PROJECTED
REVENUES/TRANSFERS EXPENDITURES
ENDING FUND BALANCE-PROJECTED
GAS TAX $2,273,792 $2,768,741 $4,874,010 $168,523MEASURE A 2,391,463 1,274,638 1,476,716 2,189,385SLESF 0 129,740 129,740 0AQMD 216,749 80,750 100,025 197,474CDBG 0 369,748 369,748 0CFD FUNDS 323,000 785,000 543,578 564,422DIF 10,441,071 1,878,878 202,410 12,117,539CAPITAL PROJECTS 2,195,760 70,000 2,226,834 38,926LLMD 89-1-C 18,000 31,520 39,568 9,952RBBD 1,860,599 363,500 1,432,670 791,429CSAS 1,401,445 2,063,700 3,071,245 393,900DEBT SERVICE 0 1,303,000 1,303,000 0TOTAL $21,121,879 $11,119,215 $15,769,544 $16,471,550
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CAPITAL IMPROVEMENT PROGRAM
NEW PROJECTS FOR FISCAL YEAR 13/14:(FIRST YEAR OF FIVE YEAR PROGRAM FUNDED)
NEWPORT ROAD WIDENING$3,000,000
HOLLAND ROAD OVERCROSSING 1,400,000
BRADLEY ROAD BRIDGE 980,000
MCCALL INTERCHANGE 500,000
CDBG FUNDED – SENIOR CENTER 84,112CDBG FUNDED-LAZY CREEK 36,048TOTAL: $6,000,160
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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ACTION PLAN: FY 13/14• MODERATE RECOVERY UNDERWAY• MAINTAIN PRUDENT SPENDING PLAN-
EXPANDING ONLY AS RESOURCES ALLOW• INCREASE EXISTING REVENUE SOURCES• DEVELOP ADDITIONAL REVENUE SOURCES
TO INCREASE DIVERSITY OF REVENUE
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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ACTION PLAN: FY 13/14
• SCALE BACK OF EXPANSION PLANS DUE TO LOSS OF VEHICLE LICENSE FEE REVENUE• CONTINUE TO WORK WITH NEWLY
INCORPORATED CITIES TO SEEK RESTORATION OF VLF REVENUES• CONTINUE VIGOROUS ECONOMIC
DEVELOPMENT PLAN• SEEK NEW REVENUE SOURCES
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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EXPECTED BUSINESS OPENINGS
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS
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CONCLUSION
• NO ACTION NEEDED ON BUDGET AT THIS TIME
• BUDGET WILL BE PRESENTED FOR FINAL ADOPTION AT THE CITY COUNCIL MEETING ON JUNE 18, 2013
• DRAFT BUDGET WILL BE AVAILABLE ON CITY’S WEBSITE
IMPROVING THE QUALITY OF LIFE OF MENIFEE RESIDENTS