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HomeMy WebLinkAbout2012-04-18 Packet - SpecialCITY OF UKIAH CITY COUNCIL AGENDA Special Meeting Civic Center Council Chambers 300 Seminary Avenue Ukiah, CA 95482 April 18, 2012 5:00 P.M. WORKSHOP 1. ROLL CALL 2. PRESENTATION a. Next Destinations: Right Size FY 2012/13 General Fund Budget City Manager will present a preview of how the FY 2012/13 General Fund budget is shaping up in terms of revenues, expenditures, and deficit. City Manager will advise the City Council of what may be included in the City Manager's FY 2012/13 General Fund budget recommendations. 3. PUBLIC COMMENT 4. ADJOURNMENT Please be advised that the City needs to be notified 24 hours in advance of a meeting if any specific accommodations or interpreter services are needed in order for you to attend. The City complies with ADA requirements and will attempt to reasonably accommodate individuals with disabilities upon request. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection at the front counter at the Ukiah Civic Center, 300 Seminary Avenue, Ukiah, CA 95482, during normal business hours, Monday through Thursday, 8:00 am to 5:00 pm I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda was posted on the bulletin board at the main entrance of the City of Ukiah City Hall, located at 300 Seminary Avenue, Ukiah, California, not less than 24 hours prior to the meeting set forth on this agenda. Dated this 12th day of April, 2012. JoAnne M. Currie, City Clerk city q/ Ukinh ITEM NO.: 2a MEETING DATE: AGENDA SUMMARY REPORT April 18, 2012 SUBJECT: Presentation: Right Size Fiscal Year 2012/13 General Fund Budget Background: At its meeting of March 21, 2012, the City Council discussed a priority driven budget process and adopted a budget calendar, and budget principles. This discussion was a continuation of discussions that have taken place as part of the Council's strategic planning process, and the "journey map" steps that the Council and staff have taken over the course of the last four years, to address ongoing financial challenges. As Council is aware, there are particular challenges going into the next fiscal year for the City of Ukiah General Fund (GF). Loss of sales tax revenues over the course of the last four years, coupled now with a loss of revenues associated with Redevelopment, impact the funds available to finance GF personnel and The purpose of the workshop for the April 18 meeting is to provide the Council with a preview of how the General Fund budget is looking for FY 2012/13, and what Council may anticipate will be included in the City Manager's recommended GF budget. The City Manager's recommended budget will reflect a continuation of the City Council's strategic planning efforts to make choices for spending of limited public funds in line with goals to be achieved. Attachment #1 is a graphic illustration of the process that has been taken by the City Council, together with staff, to arrive at considerations for the FY 2012/13 GF and all Funds budget. Discussion: The GF FY 2012/13 now appears to have projected revenues of about $13.8 Million. Expenditures appear to be the area of $15.6 Million. The projected deficit for FY 2012/13 is about $1.8 Million. Although the City has taken many steps to address its GF imbalance over the past four years, as evidenced in the "journey map" and by many financial decisions made by the City Council to date, the City is confronted with this magnitude of deficit primarily for two major reasons: Recommended Action(s): Receive the report. Alternative Council Option(s): Citizens advised: Requested by: Prepared by: Jane Chambers, City Manager Coordinated with: Department Heads, Finance Director Gordon Elton, Strategic Ad/Hoc Council members Rodin and Crane Attachments: Process for Developing 2012/13 Budget Approved: a,., e Chambers, City Manager 1) The ending of redevelopment: The City's GF must now absorb all of the costs previously associated with redevelopment, including significant staff salaries for personnel engaged in redevelopment activities. The City of Ukiah had used a practice shared by many communities in California, using staff talent and expertise for redevelopment in addition to other duties. Redevelopment also paid a share for general government, facilities, and other internal charges that now must be apportioned in the GF. The impact is between $800,000 and $1 million to the GF. 2) End of 10% salary reductions for non-safety personnel (and corresponding end of 36 hour work week), and ending of 5% salary reductions for public safety personnel. The impact to the GF is in the $750,000 range. In addition to the two major factors above, increases in PERS rates for the miscellaneous plan (1.247%), the safety fire plan (1.44%), and the safety police plan (.449%) add cost in FY 2012/13. The City Manager will make a presentation at the workshop outlining the approach she will take to reach a City Manager's recommended GF budget, given the significant deficit that must be addressed. Fiscal Impact: The use of deficit funding, for the current year ending June 30, 2012, is projected to be ($282,938.) This amount fills a gap between GF revenues of $13,951,097 and expenditures of $14,234,035. If this projection holds deficit-spending-in-the GF will-occur-for-only-the second-time-since FY 2008-09, with the-years FY 2009-10, 2010-11, having closed without deficit and positive balances. ❑ Budgeted FY 11/12 ❑ New Appropriation ❑X Not Applicable ❑ Budget Amendment Required ATTACHMENT PROCESS FOR DEVELOPING THE 2012/13 BUDGET Strategic Goals Absence of RDA Principles 2012/13 Budget 4/18/2012 4/18/2012 . Next DesDnetl-- »um"Map `20121 _i.e.a.rvupowurwe t une Ot3 - m'. uabmYy.ssryewr / 1 + 2 = Controlled Spending 4/18/2012 4/18/2012 4/18/2012 4/18/2012 4/18/2012