Agenda Packet 2005-05-18 SP
CITY OF
City Council Agenda
Tony M. Ferrara Mayor Steven Adams City Manager
Joe Costello Mayor Pro Tem ~IFOR~.t Timothy J. Carmel City Attorney
Jim DIckens Council Member Kelly Wetmore City Clerk
Ed Arnold Council Member ,. ~ '.
Jim Guthrie Council Member
NOTICE OF SPECIAL MEETING
CITY COUNCIUREDEVELOPMENT AGENCY
AGENDA SUMMARY
WEDNESDAY, MAY 18,2005
7:00 P.M.
Arroyo Grande City Council Chambers
215 East Branch Street, Arroyo Grande
1. CALL TO ORDER: 7:00 P.M.
2. ROLL CALL: COUNCIURDA
3. FLAG SALUTE
4. CITIZENS' INPUT, COMMENTS, AND SUGGESTIONS on Special Meeting
Agenda Items. Members of the public wishing to address the CounciVRDA on
any item described in this Notice may do so when recognized by the Presiding
Officer.
5. CONSIDERATION OF FY 2005..()6 & FY 2006..()7 BI-ANNUAL PRELIMINARY
BUDGET. (ADAMS/PILLOW)
The City CounciVRedevelopment Agency will review the FY 2005-06 & FY 2006-
07 Bi-Annual Preliminary Budget. The City CounciVRDA will consider adoption of
the Bi-Annual FY 2005-06 & FY 2006-07 Budget at its Regular Meeting of June
14,2005.
6. ADJOURNMENT to Regular City Council Meeting of Tuesday, May 24, 2005 at
7:00 p.m. in the Council Chambers, 215 East Branch Street.
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MEMORANDUM
TO: CITY COUNCIUREDEVELOPMENT AGENCY
/
FROM: STEVEN ADAMS, CITY MANAGER ~
SUBJECT: CONSIDERATION OF FY 2005-06/ FY 2006-07 PRELIMINARY BI-
ANNUAL BUDGET
DATE: MAY 18, 2005
RECOMMENDATION:
The FY 2005-06/ FY 2006-07 Preliminary Bi-Annual Budget is provided for review,
discussion, public input and direction. No action is recommended at this time. The
proposed budget will be placed on the June 14, 2005 City Council agenda for formal
consideration.
FUNDING:
The General Fund (without transfers) appropriations are proposed to be $12,735,046 for
FY 2005-06 and $13,170,750 for FY 2006-07. This represents an increase of 2.97%
over the FY 2004-05 Amended Budget. The total recommended citywide budget is
$18,876,309 for FY 2005-06 and $19,664,419 for FY 2006-07. All funds are balanced.
DISCUSSION:
Staff is pleased to present to the City Council the recommended Preliminary Bi-Annual
Budget for FY 2005-06 and FY 2006-07 for review and consideration. The document
represents the collective recommendation of the department directors for the work plan
for the upcoming year. All funds are balanced under the proposal. We believe the draft
budget addresses existing needs, but does so prudently by managing ongoing costs,
balancing priorities and planning long term.
The budget as recommended incorporates a number of operational strategies to
increase efficiency, resulting in the elimination of one part-time position and converting
one full-time position to part-time. Strategies include modifications to the City's fleet
maintenance and City Hall reception staffing, an across the board 2% decrease in
supplies and services accounts, funding for housing program staffing costs,
reorganization of staffing support for maintenance of the City's computer system,
enhancement to the City's investment portfolio, transfer of CIP accounting services to
in-house, increase in public safety cost recovery efforts, and a 5% increase in
miscellaneous fees.
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CITY COUNCIL
FY 2005..()61 FY 2006..()7 PRELIMINARY BI-ANNUAL BUDGET
MAY 18, 2005
PAGE 2
Despite existing financial challenges, the budget strategies have enabled the City to
continue progress on a number of key priorities recommended by staff, and approved
by the City Council, as the first step in the budget process. These include an increase
in funding for the street improvement program, upgrade of the City's computer system,
expansion of the geographic information system (GIS), and accelerating Americans with
Disabilities Act (ADA) improvements. Most importantly, the budget as recommended
maintains existing service levels despite a number of circumstances outside the City's
control that increased costs and/or decreased revenues.
The City's Capital Improvement Program (CIP) will continue to make a significant
investment in the community's future through the maintenance of the infrastructure
system. Major projects programmed in FY 2005-06 include funding to resurface both
Farroll Avenue and portions of Brisco Road, expansion of the City's annual pavement
management program, the Newsom Springs drainage project, drainage pumps and
piping improvements at Soto Sports Complex, Sewer Lift Station No. 1 replacement,
Fair Oaks Avenue Sewer Upgrade, and Water Well No. 10 construction. Funding is
also programmed to accelerate progress on the Brisco Road-Halcyon Road/Route 101
Interchange project.
The proposed Redevelopment Agency budget is balanced for the first time in FY 2005-
06, which is consistent with the 5-year strategy adopted in January 2001 to address the
operating shortfall at that time. The Agency is proposed to begin repayment of debt to
the Water and Sewer Facility Funds in the amount of $50,000 during each of the next
two fiscal years and will be able to fund staffing costs transferred to the General Fund
over the past several years. In addition, modest funding is proposed to be available for
economic development efforts.
The budget document for the first time now also incorporates a 10-year financial plan.
The purpose of the long-range financial plan is to provide for better long-term decision
making and planning. The 10-year plan is balanced when projecting maintenance of
existing service levels. However, concems exist regarding the City's ability to fund
efforts necessary to address new priority needs identified in the future. They include
major transportation and infrastructure projects, facility upgrades, fire apparatus
replacement, projected personnel cost increases associated with the rising cost of
housing, and establishment of a vehicle replacement fund. As a result, staff is providing
recommended strategy options for future revenue enhancements.
The department directors should be commended for the cost effective manner in which
they have prepared and managed their budgets. In particular, the City's Director of
Financial Services, Angela Pillow, has done an outstanding job in her first time
preparing the budget document. It is also important to recognize that the continued
improvement to the City's financial condition is largely attributable to the ongoing
prudent fiscal policies and direction of the City Council.
CITY COUNCIL
FY 2005..()6I FY 2006-07 PRELIMINARY BI-ANNUAL BUDGET
MAY 18, 2005
PAGE 3
The budget recommendations, as well as departmental goals and accomplishments, will
be presented in more detail at the special City Council Study Session. Please feel free
to contact staff with any questions or requests for additional information in the
meantime.
AL TERNA TIVES:
The following alternatives are provided for the Council's consideration:
- Receive and discuss recommendations;
- Direct staff to provide additional information and/or make changes.
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