At Tuesday night’s Council meeting, City Staff is presenting the Fiscal Year 2011-2012 and Fiscal Year 2012-2013 Biennial Budget for approval by the City Council, Redevelopment Agency and the Public Finance Authority. The Budget is the City’s financial plan for the period of July 1, 2011 through June 30, 2013. As part of the Budget adoption, there are seven resolutions to be considered and approved.
In addition, at the conclusion of the May 24th meeting, the City Council had requested follow-up to a few items. The items were:
A. If the voters hadn’t approved Measure U in April 2008, what would have been the “inflationary” increase in UUT revenue between 2008 and 2011?
B. Replace $7,500 in funds in the Fire Department for training, and identify whether budget reductions are possible to “recoup” all or a portion of the $7,500.
Lastly, the Council had not yet reviewed the Capital Improvement budget or the Redevelopment Agency budget These budgets are being presented for consideration and adoption this evening. Staff is recommending one revision to the Redevelopment Agency budget.
The City’s midyear budget had projected a shortfall of more than $800,000 for FY 2011-2012. The proposed budget shows an increase of $238,000 in revenue ($100,000 from UUT, $41,000 from property taxes, $3,700 from sales tax and $67,000 from other revenue sources), and reduction in expenditures of more than $800,000 ($362,000 in administration costs, $345,000 from the Police Department budget, $82,000 from the Fire Dept., nearly $56,000 from Public Works, and $28,000 from Community Services/Personnel). The only department with an increase in expenses from the midyear look is the Library, which increases nearly $37,000.
According to City Manager Elaine Aguilar’s Budget Transmittal Letter, total expenditures for all funds combine are estimated at $24,479,911 for FY 2011-2012 and $21,298,911 for FY 2012-2013. The General Fund budget for FY 2011-2012 shows a surplus of $22,000 and the GF budget for 2012-2013 ends with a $30,000 surplus.
Capital Improvement Project expenditures of $3,685,000 for FY 2011-2012, when combined with $240,800 in Capital Purchases mean total expenditures of $3,925,800 for the year. An additional $4.3 million in expenditures will be covered by use of restricted reserves that have been earmarked in prior years, for specific projects. More than half of the money is for the use of Redevelopment reserves for CRA infrastructure improvements and other CRA programs. Twenty-five percent is from from Phase III street maintenance funding in Prop. C, Measure R and Gas Tax/Prop. 42 fund reserves.
Staff is also emphasizing a recommendation for a change in the CRA budget because of uncertainty with the State budget and the Governor’s proposal to eliminate Redevelopment Agencies. Staff is recommending that $650,000 previously approved for Pool House and equipment be set aside in reserves so that if an alternative proposal is approved, the CRA could give funds directly to the local school district. Council will have to decide if they want to follow staff’s recommendation, replace the funding for the project, or eliminate other projects equalling that amount.