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Home My WebLink About2004/05/27 - Agenda Packet - Spec Study (Budget) AGENDA RANCHO CUCAMONGA CITY COUNCIL REDEVELOPMENT AGENCY FIRE PROTECTION DISTRICT SPECIAL STUDY SESSION Thursday, May 27, 2004 ~ 6:00 p.m. Rancho Cucamonga City Hall + Council Chambers 10500 Civic Center Drive + Rancho Cucamonga, CA 91730-3801 A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call: Alexander __, Gutierrez , Howdyshell , Kurth , Williams B. COMMUNICATIONS FROM THE PUBLIC This is the time and place for the general public to address the City Council, Redevelopment Agency and Fire Protection District. State law prohibits the Council, Agency and District from addressing any issue not previously included on the agenda. The Council, Agency and District may receive testimony and set the matter for a subsequent meeting. Comments are to be limited to five minutes per individual. C. ITEM(S) OFBUSINESS 1. DISCUSSION OF PROPOSED BUDGETS FOR FISCAL YEAR 2004~2005 D. ADJOURNMENT I, Debra J. Adams, City Clerk of the City of Rancho Cucamonga, hereby certify that a true, accurate copy of the foregoing agenda was posted on May 20, 2004, per Government Code 54954.2 at 10500 Civic Center Drive, Rancho Cucamonga, California. City of Rancho Cucamonga Fiscal Year 2004/05 Recommended Budgets Budget Study Session With City Council May 27, 2004 Presented by Jack Lam, City Manager Fiscal Year 2004/05 Opportunities and Challenges · Opportunities - Imminent opening of Victoria Gardens Shopping Center - Completion of Phase One of Central Park (Community Center and Senior Center) - Construction of Cultural'Center Completion of other capital projects · Etiwanda Fire Station #176 Fiscal Year 2004/05 Opportunities and Challenges · Challenges - Large ~ncreases ~n fixed operating costs - Additional costs of new facilities - Increased service needs of a growing community - Continued State takeaways of local revenue A Look Back at Where We've Been · FY 2003/04 City General Fund Budget - Effective decrease of 3% in funds available for services over prior year · Over $2 million in fixed cost increases - Decreased operating budget - Enacted selective hinng freeze and attrition management A Look Back at Where We've Been · Approval of FY 2003/04 State Budget in late summer 2003 $1.873 million revenue reduction due to VLF backfill gap - 50% shift of sales tax due to "Triple Flip" - Reduction ~n State Library funds - Loss of Citizens Options for Public Safety (COPS) Grant funding - $2.02 million loss to Redevelopment Agency A Look Back at Where We've Been · December 2003 - Additional loss of $787,000 due to underestimation by State of VLF backfill gap · January 2004 Governor's Proposed Budget - $1.3 billion takeaway of local revenue ° $237,359 General Fund property tax loss · $119,572 Library Fund property tax loss ° $300,000 loss to street rehab program ° Elimination of booking fee reimbursement of $382,400 · Implementation of"Triple Flip" shifting of sales tax · $2 million ERAF shift of RDA property tax increment A Look Back at Where We've Been · March 2004 - Successful passage of Propositions 57 and 58 - Reduced sales tax shift to 25% (Triple Flip) - $14 billion State budget deficit for FY 2004/05 still remains City Population Growth 160,000- 150,000- 140,000- 130,000- 120,000' 110,000' 100,000 Building Permits Valuations $700,000,000- $650,000 $600,000 $55O,0OO $500, $450,000 $400,000,000 $350,000,000 $300,000,000 $250,000,000- $200,000,000- $150,000,000- $100,000,000- $50,000,000- City General Fund Operating Budget $50,000,000 $45,000,000 $40,000,000- $35,000,000- $30,000,000- $25,000,000- $20,000,000- $15,000,000 Public Safety Expenditures Police and Fire $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 Meeting Public Service Demands City General, Library and Fire District Operating Funds Where the Money is Spent Building and Library Maintenance CommunityEngineering and PlanningSafety 2.7% 10.2% Services Public Works 5.7% 3,9% 5.9% 3.0% General Services 13.9% Risk Public Safety* Management 54.4% 0.3% *Includes Police, Fire District, Emergency Preparedness and Animal Control Law Enforcement Services Recommended 2004/05 Budget Highlights 1 · Absorb second year labor contract cost ~ncreases · Temporary elimination of six non-patrol, non- ~nvestigative positions to preserve basic services · Partial year funding for new Public Safety Substation at the Victoria Gardens Shopping Mall · Utilize sponsorships to continue "Every 15 Minutes" program. · Complete grant-funded EOC Fire District Recommended 2004/05 Budget Highlights · Defunding three non-safety positions, reclass of one non-safety position and shifting one full-time non-safety position to a pan-time position · Additional subsidy of $700,000 from RDA · Continued $535,640 General Fund subsidy · Construction of permanent Fire Station #173 (RDA) · Replace existing fuel tanks at fire stations with above ground tanks to meet current environmental regulations · Full funding of Fire Station # 176 personnel and operations costs from recurring revenues and subsidies · Replacement of two paramedic-eqmpped fire engines and a Battalion Chief vehicle (RDA) · Replace Hazardous Materials Response Vehicle (grant) Administrative Recommended 2004/05 Budget Highlights · Active legislative program · Continue award-winning community information program with reduced funding · Continue to offer additional services on the City's intemet sites to our community · Elimination of two contract employee positions · Continued suspension of employee development programs (i.e., City of Rancho Cucamonga Training Academy) · Continue attrition management & overhead reduction Planning Recommended 2004/05 Budget Highlights ! · Defunding of two full-time positions · Complete processing of Victoria Gardens Regional Shopping Center plans · Begin construction of Phases I and II of Pacific Electric Trail Master Plan, funded by Federal and State grant funds · Code Consistency Program · Proposed annexation of 800 acres · Comprehensive fee study in progress Engineering/Public Works Recommended 2004/05 Budget Highlights · Defunding of three positions and restructuring of two positions · Complete plan check and inspection services for Victoria Gardens Regional Shopping Center, residential development and Phase I of Central Park · Partial year funding for Central Park operations · Continued implementation of NPDES · Mumclpal Utility at full operational stares · Continued expansion of Calsense computerized irrigation system Governor's May Revise · $1.3 billion reduction in money to local government · Continued losses to local libraries · Continued elimination of booking fees reimbursement · Use of State COPS funds to pay for mandated claims for Police Officers' Procedural Bill of Rights · Some restoration of transportation funding Recent Discussions with the Governor · Coalition of statewide local government organizations and the Governor entered into a two-year budget and constitutional amendment agreement - Must be approved by Legislature for placement on November 2004 ballot - Two year contribution commitment of $1.3 billion each year from local governments · Rancho Cucamonga's General Fund share: $1,113,927 each year · Can be paid from funds other than General Fund Recent Discussions with the Governor - In year th.r.ee, the Vehicle License Fee (VLF) rate for cities would be permanently reduced from 2% to 0.65% · Eliminates current backfill to cities and counties · Replaces with a like amount of property tax - Also in year three, guaranteed reimbursement of three months of VLF backfill lost to the State during FY 2003/04 - Redevelopment Agency would also experience a two-year hit of $3,971,568 per year - Provides further protection from unfunded mandates and guarantees no further raids by State on local government revenues Balancing the FY 2004/05 Operating Budget · Operating budget comprised of: - City General Fund - Library Fund - Fire District Funds · Over time, both the Library and Fire District Funds have come to rely on support from the City's General Fund · All three areas are combined to determine projected deficit Balancing the FY 2004/05 Operating Budget · Combined increase in operating revenues: $3,928,580 · Combined increase in expenditures: $7,798,320 $5,610,040 in fixed cost increases · Combined deficit gap to be closed: $3,869,740 Balancing the FY 2004/05 Operating Budget · Major fixed and operating cost increases - Retirement costs (PERS): $1,988,250 - Police contract (second year of three year contract): $1,769,540 - Supplemental funding-Fire Station # 176: $507,030 - Increased medical insurance premiums/ workers' compensation costs: $978,900 - Staffing and operation of Victoria Gardens Public Safety Substation (partial year): $1,000,000 Balancing the FY 2004/05 Operating Budget Cultural Center start-up marketing costs: $1 O5,OOO Central Park operating costs (partial year) $1,013,280 ... Other increases: Higher property insurance costs, fee increases in booking susp. ects, utilities, and normal increases within salary ranges Balancing the FY 2004/05 Operating Budget · Closing the deficit gap $1,837,210 in departmental program cuts $1,350,210 in eligible funding shifts - $682,320 m continued attrition management · All departments affected - Public safety limited to approximately 3% cut - Other departments assumed cuts of up to 10.41% Balancing the FY 2004/05 Operating Budget · Result of FY 2004/05 cost cutting - Cumulative 10.25% cut ~n service expenditures for the City's General Fund when combined with the FY 2003/04 Adopted Budget cuts of 3.01%. City General Fund Revenue and Expenditure Challenge New Fixed And Operationat Cost ncreases ~ Cum u lative Programs Cuts Since 6~03 Revenue $4,506,710 10.25% Growth New Fixed Resultant Cost Programs Cuts ncreases Needed Within the Revenue 1 Budget $1,391,340 GrowthJ 3.01% $44,813.450 1 2 3 4 5 6 City of Rancho Cucamonoa Fiscal Years 2009~06 through 2009/10 C~y Geeeral Feed, Library Feed aed Fire District F=eds Projected Revenue Grow'~h Compared to Projected Major* Cost Increases A s of May ? 7, 2004 Proposed Projected Projected Projected Projected Projected FY 2004/05 FY 2005/06 FY 2006/07 FY 2007/08 FY 2008/09 FY 2009/1 0 Projected re,.,enue growth by fund: I ,~w,'~J~'c,~'4' ~ City Oeneral Fund 2,515,820 3,292,108 1,799,310 1,782,789 1,812,093 1,486,832 Receipt ol VLF backf,]l gap from State ~ ~- 2,056,579 Library Fund 37,810 60,642 60,608 60,557 60,508 60,657 Fire District Fire ?vnet 995,100 345,421 345,226 344,938 344,657 322,122 CFI) 85-1 428,710 245,996 253,604 261,366 269,336 278,097 CFD 88-1 (48,860~ 34,284 35,345 36,427 37,537 38~758 Total revenue growth 3,928,580 3~g78,452 4,550,671 2,486,076 2,924,131 2,t88~467 Projected major cost increases: PERS cost increases (excludes RDA and Special Funds) t ,988,250 862,400 OTS grant rolloff 500,000 Police for Victoria Gardens substation 1,008,000 500,000 Central Park operating costs 1,013,200 406,720 Cuiturel Center operating costs 105,000 480,000 1 ,'120,000 Property insurance premium increase 53,850 4,724 4,853 4,985 5,120 5,260 Medical premiumA, vorkers' comp costs 978,900 493,476 564,757 136,538 140,252 144,060 Salary costs - merits 184,690 193,925 155,140 116,355 77,670 38,785 CPI operating cost increases (excluding Police contract) 363,111 370,011 377,041 384,205 Booking fees 60,000 Fire District Station t76 additional funding 507,039 Other coot increases, net 137,780 Total cost increases 7,798,320 5,680,285 2,207,681 627,889 599,983 572,3t6 Estimated revenue surplus (defisit) byyeer (3,869,740) $(1,701,833) $ 2,342,810 $1,958,188 $1,924,149 $1,616,15t Cost cuttinR measures ('100%) FY 2004~0S and usase of reserues FY 2905/06 $ 3,869,740 Cumulative revenue surplus (deficit) byyear $ $(1,701,833) . $ 640,977 $ 442,586 .~., $ 2,366,735 $ 3,982,886 Adjusts for non-recurring ¥[x[F~F * Those cost increases $50,000 or greater in FY 2004/05. backfill gap revenue received I '* One-time revenue return from State fo~ VLF gap repayment, in FY 2096/'07, Building and Safety Recommended 2004/05 Budget Highlights ! · Defunding of one full-time pos~t~on and restructuring of one full-time position · Increased use of contract plan checks and inspections to match increased development · Restructuring of grading plan check services from Engineering to Building and Safety · Enhance customer service through expanded use of permit software for an integrated voice response system · Completion of comprehensive fee study Community Services Recommended 2004/05 Budget Highlights ! · One full-time position defunded, one position restructured and one shifted to special fund · Reduced number of special events during the year Including the cancellation of the 2004 Founders' Day Parade and Spring 2005 Kids Fest · Reduction In Mobile Recreation Program hours · Oversee construction of the Victoria Gardens Cultural Arts Center facility · Open Phase I of Central Park partial year funding Library Recommended 2004/05 Budget Highlights ! · Reduce open hours at the Archibald Library by 16% - Working with citizens' advisory group re: hours · Temporarily Suspend Bookmobile visits to park sites but continue to v~sit schools · Temporarily Reduce funding in book replacement account for lost or damaged items · Provide for continued planning for Victoria Gardens Library including fundraislng and revenue identification Redevelopment Agency Recommended 2004/05 Budget Highlights ! · Support public ~mprovements identified in the R. edeve!opment Pla.n. that improv...e..flood control, traffic c~rculat~on and pubhc safety facd~t~es within the project area: - Fire Station 173 (vicinity of Base Line Road and Day Creek Blvd.) - Major infrastructure improvements such as interchange planmng, Foothill Blvd., Haven grade crossing & various other projects funded by 2004 tax allocation bonds · Participation ~n Cultural Center, Victoria Gardens and Phase I of Central Park projects · Increased first-time homebuyer down payment assistance from $16,000 to $80,000 Capital Improvement Program Recommended 2004/05 Budget Highlights ! · Continue ambitious Capital Improvement Program for FY 2004/05 Storm Drain Projects Street Improvement Projects Traffic Signal Projects - Multi-Year Design/Construction ProJects - Park/Trail Projects · Funded by non-General Fund, special and restricted funds Special Districts Recommended 2004/05 Budget Highlights ! · No increase in rates for the twelfth year · Maintain service at "A" level · Future challenge: How to cope with continued increases in utility costs with no increases in assessment rates Summary of Fiscal Year 2004/05 Recommended Budgets · General Fund: $47,485,280* · Capital Improvement Program: $38,351,540 · Library Services: $1,853,990 · Fire District: $18,086,740 · Special Funds: $40,341,000 · Redevelopment Agency: $78,254,180'* · Includes Police Department budget of$17,546,030 and supplement to Fire District of $535, 640. · *Includes $700,000 supplement to Fire District Recommendations to the City Council · Consider adoption of proposed budgets · After budget adoption, utilize reserve funds to cover any further surprises by the State · If State does not take away funds in the amounts currently planned for, consider backfilling cuts on a priority basis · Examine all current fee schedules for cost recovery · If State continues to take away more local revenue on a permanent basis, weigh drastically altenng remmmng services or consider revenue enhancement to continue vital services Conclusion · Proposed budgets maintain essential services as best as possible, especially Public Safety · Budget cuts are identified as the most workable under the current circumstances · Suspension of some of the value-added services that our community enjoys are temporary · Continue to strive toward regaining long-term fiscal health · Continue to keep a watchful eye on Sacramento · Hope the drain on local revenue will stop in two years