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CC 2013-05-20 Supplemental InformationTO: COUNCIL FROM: D. - AJ DATE: MAY 20, 2013 After additional review, staff is recommending the following minor adjustments to revenue and expenditure recommendations in the Preliminary FY 2013 -14/ FY 2014- 15 Biennial Budget: Property Tax Property tax experienced a decrease of over 5.5% in FY 2012 -13 when considering one -time revenues. Therefore, staff believes the original estimate of an increase in FY 2013 -14 is likely overly optimistic given the decrease during the past year. Staff is instead projecting property tax to level off in FY 2013 -14 and increase by 2% in FY 2014 -15. This results in a decrease in the projected budget by approximately $55,000 in FY 2013 -14 and $22,000 in FY 2014 -15. Sales Tax Staff is estimating a 2% increase in sales tax in both FY 2013 -14 and FY 2014 -15. In the Preliminary Budget, the increase was applied to the FY 2012 -13 Amended Budget amount instead of the FY 2012 -13 Estimated Actual amount. When correcting this error, it will increase projected revenues by approximately $40,000 in FY 2013 -14 and $42,000 in FY 2014 -15. Affordable Health Care Act There is one part-time employee in the Police Department that is recommended to remain at or above 30 hours per week, but estimated costs for medical insurance were not included in the budget. This will increase expenditures by $2,500 in FY 2013 -14 and $6,000 in the FY 2014 -15. Please find attached the primary revised summary sheets impacted by these changes and let us know if you have any questions. The overall impact on the budget recommendations is minor. The remaining pages in the budget that have changed will be updated prior to final adoption of the budget. Thank you. attachments CITY OF ARROYO GRANDE OPERATING BUDGET OVERVIEW For the Fiscal Years Ending 2013 -14 & 2014 -15 The City's Budget is a flexible spending plan that is the legal authority for departments to commit financial resources to provide services within the City of Arroyo Grande. The Operating Budget for Fiscal Year (FY) 2013 -14 is $23,955,695. The City budget includes $13.6 million in the General Fund and $10.4 million in Other Funds (i.e., Water & Sewer Operations, Grant Funds, Street Maintenance, etc). The City's General Fund Budget is approximately 57% of the total Operating Budget in FY 2013 -14. The City's General Fund Budget provides the majority of services commonly associated with government (i.e., public safety, recreation, community development, general government, and public works). The Capital Improvement Program expenditures have also been included in the Operating Budget. Total Expenditures Capital $23,955,695 Improvement Fund $3,803,335 Other Funds $1,706,020 General Fund $13,608,385 Enterprise Funds $4,837,955 CITY OF ARROYO GRANDE ALL CITY FUNDS Revenue & Transfer History - By Source FISCAL YEAR 2012 -13 BIENNIAL BUDGET Revenue Source 2010 -11 ACTUAL 2011 -12 ACTUAL ORIGINAL BUDGET AMENDED BUDGET ESTIMATED ACTUAL 2013 -14 BUDGET 2014 -15 BUDGET Taxes: Property Tax $ 5,190,386 $ 4,383,507 $ 5,303,000 $ 3,731,043 $ 3,810,413 $ 3,523,000 $ 3,590,300 Sales & Use Tax 4,781,773 4,984,610 4,783,000 5,093,410 5,142,668 5,222,100 5,308,742 Transient Occupancy Tax 390,472 630,379 550,000 650,000 757,320 760,000 775,000 Franchise Fees 539,673 570,172 540,000 570,000 550,201 570,000 570,000 Other Taxes 1,844,899 1,949,405 1,460,600 1,600,814 2,081,743 2,253,070 2,186,950 Subtotal Taxes 12,747,203 12,518,073 12,636,600 11,645,267 12,342,345 12,328,170 12,430,992 Licenses & Permits 194,743 206,319 205,150 205,150 283,362 237,650 247,950 Fines & Penalities 66,724 71,605 85,000 90,000 51,984 72,000 72,000 Use of Money & Property 418,723 361,366 399,870 411,870 355,746 372,820 372,820 Aid from Other Governments 3,065,407 2,372,614 902,816 1,983,969 1,828,982 1,170,198 1,307,742 Charges for Services 7,478,131 7,816,232 7,967,250 8,027,250 8,524,683 8,178,450 7,995,950 Other Revenue 3,446,417 671,622 663,100 1,852,157 1,062,477 676,500 296,500 Total Revenues 27,417,348 24,017,831 22,859,786 24,215,663 24,449,579 23,035,788 22,723,954 Transfers In 5,752,096 6,200,242 5,212,825 9,720,153 7,478,882 5,711,022 4,920,400 Total Revenue & Transfers In $33,169,444 $30,218,073 $28,072,611 $33,935,816 $31,928,461 $28,746,810 $27,644,354 c GENERAL FUND SUMMARY FUND: 010 GENERAL FUND 2010 -11 2011 -12 ITEM ACTUAL ACTUAL Beginning Fund Balance Revenues: Revenues Transfers in Use of Reserves Total Revenues Expenditures: Salaries and Benefits Current Expenses Debt Service Capital Outlay Transfers Out Total Expenditures Total Operating Increases (Decreases) Audit Adjustments to Fund Balance Use of Reserves Total Adjustments to Fund Balance Available Fund Balance FISCAL YEAR 2012 -13 BIENNIAL BUDGET ORIGINAL AMENDED ESTIMATED 2013 -14 2014 -15 BUDGET BUDGET ACTUAL BUDGET BUDGET $ 3,234,884 $ 3,116,689 $ 3,305,852 $ 3,305,852 $ 3,305,852 $ 3,573,360 $ 3,378,115 12,364,942 10,875,588 10,816,920 11,151,663 11,445,375 11,073,220 11,418,120 2,325,564 2,185,456 2,320,300 2,036,673 2,011,382 2,339,920 2,455,900 118,195 - 350,000 450,000 - 200,000 150,000 14,808,701 13,061,044 13,487,220 13,638,336 13,456,757 13,613,140 14,024,020 8,486,399 8,488,012 9,399,900 8,946,030 8,321,695 9,189,995 9,389,495 3,934,936 4,109,161 4,178,350 4,606,048 4,519,686 4,079,445 4,209,000 908,594 133,750 195,650 195,650 134,689 248,395 248,395 1,068,359 93,310 66,675 207,623 200,179 90,550 182,200 410,413 7,411 - 13,000 13,000 - - 14,808,701 12,831, 644 13,840,575 13,968,351 13,189, 249 13,608,385 14,029,090 - 229,400 (353,355) (330,015) 267,508 4,755 (5,070) - (40,237) - - _ _ _ (118,195) - (350,000) (450,000) - (200,000) (150,000) (118,195) 189,163 (703,355) (780,015) 267,508 (195,245) (155,070) $ 3,116,689 $ 3,305,852 $ 2,602,497 $ 2,525,837 $ 3,573,360 $ 3,378,115 $ 3,223,045 59