HomeMy WebLinkAbout8.1 1994-95BudgetStdySession
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CITY OF DUBLIN
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: March 2, 1994
1994-95 Budget Study session
(prepared by: Richard C. Ambrose, city Manager)
EXHIBITS ATTACHED:~emorandum from city Manager dated February 25, 1994
and Attachments 1);2..) 3
SUBJECT:
RECOMMENDATION:
1.
2.
Receive staff Report
Identify areas to be evaluated by Staff as part of
the 1994-95 Preliminary Budget
FINANCIAL STATEMENT: See attached.
DESCRIPTION: See city Manager's memorandum attached.
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COPIES TO:
CITY CLERK
FILE 1dl31.!>> 10 H..1ID I
ITEM NO.
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TO: City Council
FROM:~~CitY Manager
RE: Budget study Session
DATE:
February 25, 1994
To facilitate the preparation of the 1994-95 Annual Budget and Capital
Improvement Program, the City Council has agreed to conduct a Budget
Study Session.
The purpose of this study session is to:
1) Provide a brief overview of the City's financial condition;
2) Identify those issues which can be anticipated in the next few
years which will impact the City of Dublin's financial condition;
3) Provide the Ci ty Council with an opportunity to identify those
areas that it would like to have Staff analyze to determine the
impact on City's Operating and Capital Expenditures and Revenues
before the Preliminary 1994-95 Budget and CIP are prepared. For
example, additional law enforcement personnel, reduced revenue
sources, etc.
Through the early identification of service and fiscal issues, Staff can
develop cost and service impact information as part of the Preliminary
Budget. This will enable the City Council to collectively understand
the short and long term fiscal and service impacts on the City when
making budget decisions later in the fiscal year and eliminate or at
least minimize last minute issues for which there is little or no time
to evaluate.
Attached to this memorandum are the following exhibits which Staff has
prepared to assist the Council in preparing for the Study Session.
1. Historical Comparison of City General Fund Revenues, Expenditures,
and Fund Balance
2. 1993-94 General Fund Budget Summary
3. Future Impacts on City's General Fund
RECOMMENDATION
It is recommended that City Council members come prepared to discuss
those items which they would like Staff to analyze as part of the
Preliminary 1994-95 Budget and eIP.
a:32memo,pg&o94
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Historical Comparison
General Fund Operating Revenue vs. Expenditures
(includes CIP Project Expense and Civic Center Debt Service Payments)
Expenditures 1990-91
12,754,132
1991-92
12,662,529
1992-93
12,707,804
1993-94
12,730,527
Revenue
1990-91
14,089,243
1991-92
13,113.515
1992-93
13,165,467
1993.94
13,117,246
"
15,500,000 -.. - - - .. .. .. - ~ ~ .. .. - - .. - - .. .. .. ... .. - -
15,000,000 - - -. - - - .'- - - - - - - - ~ - - - - - - --'
,
14,500 ,000 ~...... - .. .. .. I - - ... - .. - - + L .. - .. .. - - - - I
14,000,000 - - - - - . -, - - - - - - - - . - - . - - . - -,
13,500,000
13,000,000 - - - - - - - -, - - - - - . - - . . - - . - - - ,
. . . .
12,500,000 - - . . - - - -, - - - - - - - - r . - - . - - - -,
12,000,000 -....... - - - -: - - .. - .. .. .. - ~ .. .. .. .. - - . ..
11,500,000 - - - . - - - -: - - - - - - - - ~ - - - - - - - .
11,000,000 -' - - - - . -: - - - + - - - - ~ - - - - - - - -
10,500/000 -...... - - .. ..: - - - .. .. .. - - ~ .. - .. .. - - - ..
10,000,000 .. - - - - ~ .. _, - - ..... - - - - .. !. .. - + - - ... .. - I
9,500,000 - - ~ - .. - - ..I.. .. - - ... .. - - L- .. - - ... - - ,. .. I
9,000,000
1990-91 1991-92 1992-93 1993-94
.
Expenditures
-0---- Revenue
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Historical Comparison
City of Dublin General Fund Revenues by Category
Actual Actual Actual Budget
Revenues 1990.91 1991-92 1992.93 1993-94
Property Taxes 3,790,611 3,807,251 3,659,582 3,839,040
Sales Taxes 5,839,089 5,293,709 5,484~02 5,560,000
Other Taxes 574,353 599,290 731,622 664,900
Licenses & Permits 248,116 246,459 281,921 375#)0
Fines & Forfeitures 19,476 25,780 24,414 32,000
Interest & Rents 1,338,947 1,038,503 878,969 881,100
Intergov't Revenue 973,266 864,647 919,902 964,425
Charges for Services 1,196,484 939,833 1,020,631 714~33
Other Revenue 108,901 298,043 163,924 85,648
Total Revenues 14,089,243 13,113,515 13,165,467 13,117,246
$14,200,000 T - - - . - - - . - - ~ - - - - . - - . - - -, . - - - - - . - - . -.
$14,000,000
$13,800,000
$13,600,000
$13,400,000 -. - - - - - - - , - - - . - - . - - - .. - - . - - . - - . - -,
$13,200,000
$13,000,000
$12,800,000
$12,600,000
1990-91
, .
- + - - - - - - - - - - - - .. - - . - - .. - - . - - . - - - - -
, '
- ... - - - - ... i - - . - - A - - ... - i - ... - - ... - - ~ - - ~
I ·
- ... - - - ~ ... - - - 1 - - - - - - ... - - ... -. - - .. - - ... - - ... ... -.
_ _ _ ... - - - ... - 'T - ... - - .. - - ... ... - .... - - . - - ... - - .. -I
. ' .
- - ... - - - ... - - - ... ... - - - .... - - ... - - ... - - .. - - .. ... - - .. -I
_ _ _ _ _ _ _ ~ _ _ .. _ ~ _ _ .. _ _ ... _ _ ..i _ _ _ .... - - ~ - - .... -I
1991-92
1992-93
1993-94
,.. Includes ABAG Plan Insurance Dividend
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Historical Comparison
City of Dublin General Fund Expenditures
Actual
Actual
Actual
Budget
1990-91 1991-92 1992-93 1993-94
General Government 1,369,175 1,532,775 1A79,889 1,617,513
Public Safety 4,795A68 5,350,467 5,802,850 5,983A22
Transportation 837,547 841A14 595,253 662,960
Health & Welfare 26,277 29~26 7,271 100
Culture & Leisure 1,470,398 1,693,297 1,745,571 1,858,752
Community Development 1,827,355 1,438,473 1,297,193 UlOO,7oo
Total Operations 10,326,220 10,885,952 10,928,027 11,123,447
OP 848,440 231,875 204,239 107,000
Net Debt Service 1,579,472 1,544,702 1,575,538 1,454,455
Conti~ent Reserve 45,625
Grand Total 12,754,132 12,662,529 12,707,804 12,730~27
$14,000,000
$12,000,000
T - - - - - ~ - - - - * -.- ~ - - ... - ; - - ~ - - ~
. . . '
_ ~ _ _ . ~ _ _ ... _ _ wi. _ r _ _ ~ ~ _ ~ _ _ .. J
.
Grand Total
$10,000,000 ..... - - ... "'\ - .... .. - - ... 1- - ... - - - .- - - - .. - ,
$8,000,000
$6,000,000
$4,000,000
$2,000,000
~ I t I
- - - .. - - ~ - - - ~ - - ... - - ~ - - .. - - - - .
I I I I
--0-- Total Operations
- - - - - ~ - - - - - _I.. _ _ . - - ~ - ... .. - ~ ~
-+- elF
_ _ ... _ _ ~ - - - . - -,- .. - - ... - r - - .. - - ,
-<>--- Debt Service
I I I I
- - -... - -.. - - - - - -... ------ .-_..-.
,
+~
$0 I
,
-, , ,
1990-91 1991-92 1992-93 1993.94
"'Includes Dublin Information Inc. Operating Costs
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$700
$650
$600
$550
$500
$450
$400
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ditures per Capita
nter Debt Service Payments)
2 1992-93 1993-94 0
,
,529 12,707,804 12,730,527 0
,500 25,162 25,853
39 $505 $492
2 1992-93 1993.94 #N/A
,515 13,165,467 13,117,246 #N/A
,500 25,162 25,853
57 $560 $521 #N/A
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I -.- Per Capita Revenue
-
y -a--- Per Capita Expenditure
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3.94
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Historical Comparison
General Fund Operating Revenue & Expen
(includes CIP Project Expense and Civic Ce
Expenditures
Population
Per Capita Exp.
Revenue
Population
Per Capita Revenue
1990-91
12,754,132
23,550
$542
1990-91
14,089,243
23,550
$598
1991-9
12,662
23
$5
1991-9
13,113
23
$5
. - - - - - - - -1- - - - - - - - - , - . ~ ~ - - - - -
_ _ _ _ _ _ _ _ _1_ _ _ _ _ _ _ _ _ J _ _ _ _ _ _ _ _ _
I
- - - - - - - - -,- - - - - - - - - :~
, .
- - - - - - - - - - - - - - - - - - - - - - . . .. - - -
I .
$350 - - - - - - .. .. ..: - - - - - .. - - .. ~ - - - - - - - - ..
$300
1990-91 1991-92 1992-93 199
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City of Dublin Historical Comparison of General Fund - Fund Balance per Capita
(Adjusted for Inflation to June, 1993)
Fund CPI Population Adjusted Per Capita
As of June 30 Balance
1993 $16,247,012 25,853 $16,247,012 $628
1992 $15,454,837 2.6% 25,162 $15,856,663 $630
1991 $15,327,882 5.8% 23,500 $16,216,899 $690
1990 $14,464,038 9.9% 23,550 $15,895,978 $675
NO
$700
$650
$600
$550
$500
$450
$400
$350
$300
1990
Per Capita
- - - - - - - - - - - .... - - - - - - - ... - - .. ... - - - ~ - - - - ... - - - . ... - - ~ - - - .. - - - ~ -
, '
, ' '
- - -. - - - - - - - - - - - -:- -. - - - - - - - - - - -:- - -. - - -. - - - - - - - -.
_ _ _ .... ... - - - - - ~ - - - - - ,- .... ... ... - - ~ - - - - ... - - - - .....- - - - ... - - - - - - - - - - - ~I
- - - - .... ... ... - - - - - ... - - -.- - - - - - - - - - - - - - - - .., - - - - ... - - - .. - - - - - - - ...,
_ _ _ _ _ . .... _ _ _ _ .. ... ... _ _ 1_ - - ... - - - . - - - .. ... - - - .. i' - - - ... - - - ... ... - - .... ... - - .. ~
- - - - ... - ... - - - - - - - - - 1- .. ... ... - - - ... - - - ... - - - - ..., - - .. - - - - .... - - - - - - - - .,
_ _ _ .... ~ _ _ _ _ _ .... _ _ _ _ _ 1_ _ ~ _ _ _ ... _ _ _ ... .. _ _ _ ~ -I _ _ _ ... - - - .... - - - ~ - - - .. "'1
- - - - - - - - ... - - - - - .... ... 1- _ _ _ _ - - - + - - - - ... - - - I - ... - - - ~ - - - - - - - .. - - ...
1991
1992
1993
(1)
owed
to it from the San Ramon Road Specific Plan Assessment District These were prior year expenses
and amounted to $390,230.
In June of 1993, the City Council adopted a policy on the Management and use of General Fund
Assets. The policy states that the highest priority among the potential uses of General Fund
Reserves is the reduction or elimination of the need for current or future debt service payments.
At the present time the Civic Center Lease Payment is the only debt which would be considered an
obligation of the City's General Fund. The current invesbnent portfolio has been structured to
provide a maturity schedule, which would allow the City to fully eliminate the debt service
payments in February 1999. If this approach were taken the following impacts would occur to the
City's General Fund Fund Balance.
(2)
Fund Balance As of 6/30/93
$ 16,247,012
Amount COP Principal Outstanding
At The First No Premium Call Date
On February 1, 1999
Amount Offset By COP Reserve Fund
Held By Trustee
<$14,770,000>
$ 1.717.219
Amount of Fund Balance Remaining
After Prepayment of COP's
$ 3,194231
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1993-94
GENERAL FUND BUDGET SUMMARY
Estimated Revenue
Transfer In
Total Available Funds
$13,117,246(1)
101,861(2)
$13,219,107
Budgeted Expenditures
General Government
Public Safety
Transportation
Health & Welfare
Culture & Leisure Services
Community Development
Capital Improvements
Total
Transfer Out
Total Expenditures
$3,187,644
5,982,282
662,960
100
1,846,502
1,000,700
107,000(3)
$12,787,188(3)
21 ,700(4)
$12,808,888(5)
$410,219
Difference
(5)
Includes ABAG Insurance Dividend.
Transfers in include: fines & forfeitures transferred from the Traffic Safety Fund to the General Fund;
Conmunity Development Block Grant (COBG) Funds associated with administering the COBG Program; and Dublin
Information Inc interest revenue which is used to offset a portion of the General Funds Civic Center Lease
payment.
Includes $50,000 in General Fund monies for sidelolalk program which was approved by Council in February 1994.
Transfer Out includes those funds transferred to Dublin Information Inc from the General Fund to cover Oils
operating expenses.
Non recurring expenses are estimated at approximately $200,000 for Fiscal Year 1993-94. Also differs from
1993-94 Budget column in Historical Comparison by $78,361 because Total Expenditure number above includes Gross
Debt Service instead of Net Debt Service.
(1)
(2)
(3)
(4)
a:$sum.pg&094-2
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FUTURE IMPACTS
ON CITY'S GENERAL FUND
staff has identified the following major items which may, impact the
City's General Fund in Fiscal Year 1994-95 and beyond.
REVENUES
1)
Sales Tax - The City will be negatively impacted
by the construction of new shopping centers in
Livermore, Pleasanton, and San Ramon. How much
of this sales tax loss will be offset by
renovation of existing Dublin Shopping eenter is
unknown.
2)
State Budget - The Legislative Analyst's Office
estimates a $5 billion dollar state Budget
deficit for Fiscal Year 1994-95. This deficit
does not include the impact of the Northridge
Earthquake on the State Budget. The Governor's
proposed Budget for 1994-95 assumes $3.1 billion
in Federal Aid for federally mandated costs. Early
indications from the Federal Government are that
California should not count on aid from the Federal
Government for immigration related costs. The
impact of the State Budget Deficit on local
government is unknown at this time.
OPERATING EXPENDITURES
AMOUNT
unknown
Unknown
Identified below are new expenditures which are anticipated by the
Operating Departments. The expenditures do not include inflationary
increases for the purchase of materials, supplies, and equipment, nor
increased cost of wages and benefit for current eity employees, contract
employees, or Fire Authority employees. Also not included are those
objectives in the Preliminary 1994 City's Goals & Objectives which
require additional funding.
Cost Item
1)
Police Dispatch eosts - The Sheriff's Department
has completed an audit of its dispatch operation
costs. This audit has recommended that the cost
of dispatch be adjusted for the various contract
users. Preliminarily it appears that Dublin's
Police Dispatch costs will increase at a rate of
20% per year for the next five years or from
$180,070 in 1993-94 to $448,070 in 1999-2000. The
City Staff has not yet had an opportunity to review
the methodology used i~ allocating costs.
Additional
Cost
$36,000 in
FY 1994-95
to
$268,000 in
FY 1999-2000
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2)
3)
4)
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Unknown
$73,650
$41,500 to
$97,600 in
FY 1994-95
$56,250 to
$112,350 in
FY 1995-96
$15,000
$356,000
~
Unknown
$50,000
In the City's adopted Five Year Capital Improvement Program, a total of
$9,525,423 in Capital Project needs are identified which are unfunded.
a:$impacts.pg&o94
Implementation of the new 800 mghz radio system
by Alameda County will result in additional
ongoing Police radio costs to the City beginning
in Fiscal Year 1994-95.
Animal Shelter - The new County Animal Shelter will
be completed in Fiscal Year 1994-95. Upon completion,
the Cities of Dublin, Livermore, Pleasanton, and the
eounty are obligated to make debt service payments on
the new shelter. The 1994-95 debt service payment
for the City of Dublin is estimated at $73,650.
Fire - New operating costs are anticipated in
the Fire Service in Fiscal Year 1994-95 to range
from $70,360 to $165,360 for Dublin. These costs
are attributable to additional personnel,
additional vehicle, dispatch and data processing
operating expenses. An additional $25,000 in
operating expenses associated with Station No 3
is anticipated in Fiscal Year 1995-96. Since the
City of Dublin and the City of San Ramon share the
cost of the Fire Services, Dublin's share of these
additional costs are currently estimated at $41,500
to $97,600 in Fiscal Year 1994-95 and $56,250 to
$112,350.
5)
Traffic Signal Maintenance - Staff anticipates that
3 new traffic signals will be constructed by
December 1995. Annual maintenance and energy
costs are estimated $15,000.
6)
Street Lighting - Acquisition of street lights from
PG&E will require a loan from the General Fund to
be repaid by the Street Lighting Assessment District
over the next 7 years. The amount required to buy
the street lights is estimated at approximately at
$356,000.
7)
Library Services - The City anticipates increased
overhead charges from Alameda County associated
with the City's Library contract hours.
8)
Legal Services - If the Eastern Dublin Lawsuit is
appealed, an additional $50,000 in litigation
costs are anticipated.
CAPITAL EXPENDITURES