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HomeMy WebLinkAboutItem 8.2 1996-97BudgetStudy (2) '""",," . . . e CITY CLERK File # DaJC3J~-[2][Q] ~-" ! . AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 21,1996, SUBJECT: 1996-97 Budget Study Session Report Prepared by: Richard C. Ambrose, City Manager EXHIBITS ATTACHED: 1. 2. Budget Issues Worksheet Analysis of Estimated Future Impacts of City's General Fund including Attachments 1-12 RECOMMENDATI~. \ 1. 2. Receive Staff Report Review Budget Issues Worksheet and provide Staffwith direction in the development of the 1996-97 Budget Establish an Annual Budget Hearing Date 3. FINANCIAL STATEMENT: See attached. DESCRIPTION: For the last two years, the City has conducted a Budget Study Session for the purpose of identifying those areas that the Council would like Staff to analyze as part of . the development of the City's Annual Operating Budget and Five Year Capital Improvement Program. Through early identification of the service and fiscal issues, the City Council will be in a better position to collectively understand the short and the long term fiscal and service impacts on the City during the Council's deliberations on the Fiscal Year 1996-97 Annual Budget and new Five Year Capital Improvement Program later this fiscal year. These study sessions are designed to reduce the potential for last minute budget issues to arise for which there would be little or no time to evaluate. Staffhas provided a budget issues worksheet (blue) to assist the Council in providing Staff direction with respect to the upcoming Budget and Capital Improvement Program. Staffhas also identified potential fiscal impacts (see Exhibit 2) on the City during the next several years. Attached to Exhibit 2 are a number of attachments that provide the Council with financial information and about the City. It is Staff s recommendation that the Council utilize the budget issue worksheet as a means of providing Staff with direction in the preparation of the Fiscal Year 1996-97 Operating Budget and new Five Year Capital Improvement Program. g/cc-mgts/feb/2.21.96/budg . COPIES TO: rI ITEM NO. -8. '2 . . . '''ltII''"' ,~ ... 'J . e ."" 1: 1996-97 BUDGET ISSUES WORKSHEET NOTE: It is recommended that the City Council review the 1995-96 Preliminary Budget & 1994-99 Five Year Capital Improvement Program to assist in their review of the issues identified in this worksheet. I. EXPENDITURES A. Should the 1995-96 level of service adopted by the City Council as part of the 1995.96 Adopted Budget for each program area be used as the base level of service for Fiscal Year 1996.97 Budget? YES NO (Circle one) or If no, Identify below what service would you like to see added or dropped from the base level of service for 1996-97? ADDED SERVICES DROPPED SERVICES B.' If the City Council is desirous of accomplishing all high priority objectives during Fiscal Year 1996-97, should the cost of funding those high priority objectives be Included as additional budget increments to the base service level, if additional resources are required to accomplish those objectives? YES NO (Circle one) or C. Should Community Group requests be placed in the Fiscal Year 1996-97 base service level at the same funding level as Fiscal year 1995-96; or Identified In a separate budget increment? (See below) In Fiscal Year 1995-96, the City provided funding from the General Fund to the following Community Groups: COMMUNITY GROUP 1995-96 Level of Service $ 4,500 $10,000-20,000 $ 4,000 $ 22,236 Base Lem Additional ~ 1) Dublin Substance Abuse Council 2) Dublin Fine Arts Foundation 3) Parent Education Program (PEP) . 4) Community Television . . . -,~, . .' .-....... . e D. The following service contracts are due for evaluation this Fiscal Year. 1. Building & Safety Contract (LP2) 2. Animal Control (Alameda County) 3. Public Works Maintenance (MCE) 4. Crossing Guards (All City Management) Are you interested in Staff evaluating any particular issue other than the cost of providing service by the current service provider for Fiscal Year 1996-97? YES NO (Circle one) or If yes, which service and what aspect of the service or provider would you like Staff to evaluate. (Note: The City solicited and selected new providers for Building & Safety and Crossing Guards this year.) E. As shown in Attachment 9, the City has utilized a very limited amount of General Fund Revenues for Capital Expenditures during the last five years. Should the City rely primarily on special revenue funds (i.e. grants, gas tax, etc.) for funding Capital Expenditures? YES NO (Circle one) or If no, should Capital Expenditures which have no special revenue source be funded from: 1. General Fund Annual Operating Revenues 2. General Fund Balance 3. New Revenue Sources F. CAPITAL IMPROVEMENTS 1. Are there additional Capital Projects which are not Included In the adopted Five Year Capital Improvement Program which would you like to see Staff evaluate? If so, please indicate below which projects you would like staff to evaluate. :'/:!IIIIIIIIII' .~ . . e ""-..--' t . 2. Of those projects currently identified In the Five Year CIP, are there any projects which you like to see funded in Fiscal year 1996-97? If so, please indicate below. II. REVENUES A. How should Citywide Assessments (i.e. storm water) be set for Fiscal Year 1996- 97? 1. Reflect actual cost 2. Reflect on by the increase in the CPI and subsidize the difference from the General Fund 3. Freeze Assessments and subsidize difference from the General Fund . B. What additional revenue issues (if any) should be evaluated as part of the Fiscal Year 1996-97 Budget? III. BUDGET DOCUMENT Please review the 1995-96 Preliminary Budget and the 1994-99 Capital Improvement Program documents and identify format changes (if any) you would like to see Staff make in Fiscal Year 1996-97 (i.e. less detail, more detail) . . . .- . ;;.~ .".....f... IV. . e BUDGET CALENDAR In order to establish a Budget Calendar for preparation of the Budget, it is necessary to establish a budget hearing date(s). Staff would recommend the week of June 24, 1996. g/cc-mtgslfeb/2.21.96/budgsess ... ~ ANALVe OF ESTIMATED FUTURE .ACTS ON THE GENERAL FUND (prepared February 15, 1996) . Staff has analyzed potential major items which can affect General Fund Revenues and Expenditures beginning in Fiscal Year 1996/97 and beyond. The information in some cases is extremely preliminary and based upon limited information available at this time. . REVENUES AMOUNT 1. Sales Tax: As part of the adopted 1995/96 Budget it was anticipated that the City Unknown would experience a decline in Sales Tax revenues from the level achieved in the prior fiscal year. 'This decline is related to increased retail competition with new outlets located in adjacent communities, as well as the loss of the Paper Corporation of America (Unisource) facility. The timing of these events fluctuated and therefore the full year impact will not be felt until Fiscal Year 1996-97. Any declines may be partially offset by new retail establishments in the City of Dublin as well as the change in allocation vehicle lease taxes effective January 1, 1996. 2. Property Tax: The City has experienced very limited growth in Property Tax Unknown Revenue in recent years. For example, in Fiscal Year 1995/96 the Assessed Value for Secured properties county wide grew by approximately 2.6%, while the City of Dublin growth was approximately 0.5%. The limited growth in this revenue has been impacted by several factors including the following: a slowdown in the number of real estate sales transactions; the County Assessor has limited some annual changes in the assessed value to less than 2%; and many property owners have appealed their current assessment and requested a lower value based upon current market conditions. 3. Interest: Over the past year the Federal Government has made adjustments to Unknown key rates, which has lowered the interest rates available on many investments. Interest revenue in the General Fund is a significant revenue source. The City is also impacted by the fact that the length of maturity for new investments must be shorter than in the past, due to a City Council goal to have General Funds available to call all outstanding COP's in February of 1999. If the total yield on the City portfolio drops by one-half percent the City will have approximately $48,000 less interest income. 4. Proposed Right To Vote On Taxes Constitutional Amendment: Unknown Organizations are currently collecting signatures for a constitutional amendment to be placed on the November 1996 statewide ballot. If this measure qualifies for A complete the ballot and is imposed it could effect the City ability to collect certain existing loss of special revenue funds. (Citywide Street Lighting, Stagecoach Landscape affected Maintenance District, Dougherty Landscape Maintenance District, and the Storm revenues Water Runoff Fund - NPDES). If these special revenues were eliminated the could be in City would need to consider alternatives, which may include use of the General excess of Fund. In Fiscal Year 1995-96 the total revenues collected through these $460,000 I assessments and fees were in excess of $460,000. If passed, existing assessments per year. would be subject to the new requirements July 1, 1997. (Fiscal Year 1997/98) . EXHIBIT 2 h :\cc-m tgs\BSTDYTBL.doc e e , " ~ OPERATING EXPENDITURES Identified below is a preliminary list of new expenditures which are anticipated by the Operating Departments. The expenditures do not include inflationcuy increases for the purchase of materials, supplies, and equipment. Also excluded from this table is any estimate of increased cost of wages and benefits for current City employees, Dougherty Regional Fire Authority employees, or other contract service providers. In the 1996 Goals & Objectives there may also be identified objectives which will require additional funding. 4. COST ITEM 1. Liability Insurance Coverage Increase: Prelimincuy data used by ABAG PLAN Corporation indicates that the City will receive a premium increase in Fiscal Year 1996/97. TItis is due to several factors including: reduced interest earnings by the insurance pool to offset the estimated losses; and the premium allocation formula is based heavily on payroll. As the City has added positions in recent years there is an increase in insurance premiums. Additional Cost $ 14,000 $ 4,000 $ 9,000 $ 50,000 FY 96/97 to $180,000 FY 98/99 5. Police Services Affected By BART & East Dublin Development: The $40,000 - $115,000 public service costs associated with development will affect various operating departments. In the case of Police the timing of development will directly affect the total costs. In the near term there is potential for both BART and the Santa Rita Commercial Center. It is not anticipated that the City will incur service costs for the full 1996/97 fiscal year on either project. .... TItis analysis does not account for any increase in revenues associated with new development. The range is presented due to a lack of definite information on the timing and whether one or both projects are in place. 2. Election: Due to the staggered election schedule, the City does not incur an election expense in each fiscal year. In November 1996 there is a scheduled election for the position of Mayor and 2 City Councilmember positions. The actual costs will depend upon the number of measures on the ballot and in accordance with a formula developed by the County Registrar of Voters. 3. Animal Shelter: The County has advised the participating cities that the salary range approved by the County Civil Service Commission for new Animal Shelter positions, was significantly more than was included in the original proposal. The County agreed to abide by the figures in their proposal through June 30, 1996. TItis change could cause an additional $62,000 in operating expense. The City would only absorb its share. Police Dispatch Costs: Previously the Sheriff revised the methodology for distributing dispatch costs among users of the system. The modifications increased the City of Dublin share, and the Sheriff agreed to phase in the implementation of the increase beginning in Fiscal Year 1994/95. Costs were scheduled to increase by 20% per year between FY 1994/95 and FY 1998/99. HISTO~AL COMPARISON OF GE~ FUND OPERATING REVENUE vs EXPENDITURES (Includes CIP Project Expense and Civic Center Debt Service Payments) . . . REVENUES Actual 1990-91 $ 14,089,243 Actual 1991-92 $ 13,113,515 Actual 1992-93 $ 13,165,467 Actual 1993-94 $ 13,570,129 Actual 1994-95 $ 14,841,491 Budget 1995-96 $ 15,115,955 EXPENDITURES Actual 1990-91 $ 12,754,132 Actual 1991-92 $ 12,662,529 Actual 1992-93 $ 12,707,804 Actual 1993-94 $ 12,179,833 Actual 1994-95 $ 12,838,951 Budget 1995-96 $ 14,731,221 I-+- Revenue --- Expenditures I $16,OCXJ,OCO $15,OCXJ,OCXJ ----------- ------------ ----------- ------------ ---- .:. $14,OOO,OCXJ $13,OCXJ,OOO $12,OCXJ,OOO $11,OOO,cro $10,OOO,OCXJ 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 ANAL YSIS: In the current year the amount of revenues in excess of expenditures is projected to decrease substantially from what has been experienced in prior years. NOTE: The budget figures presented for Fiscal Year 1995/96 do not account for operating transfers to other funds. As presented in the Mid-Year Financial Report it is projected that the General Fund will have net transfers to other funds totaling . $317,076. This will reduce the amount by which General Fund Revenues are expected to exceed General Fund Expenditures. _" ATTACHMENT 1 02114/964:57 PM , . · 6. COST ITEM · Library Service (Indirect Charges): Beginning in Fiscal Year 1995/96 the Alameda County Library began phasing in a major increase in the overhead rate charged on contract service hours funded by the City. .'. 7. Change In Allocation Formula County Library: Agencies currently serviced by Alameda County Library system have begun discussing the formulas used to allocate the base level of service hours between the various branches. Some have questioned the relationship between the revenues generated from property tax for libraries within an individual community, as compared to the base level of service hours provided. If the formula is changed the City of Dublin would need to contribute additional funds to maintain the current base level of service. CAPITAL EXPENDITURES In the adopted Five Year Capital Improvement Program, there are several needed projects, which have been identified as unfunded. A summary by major program area follows: CIP PROGRAM AREA AMOUNT WITHOUT IDENTIFIED FUNDING $ 390,000 1,886,820 9.239.427 $ 11,516,247 .-,:: Community Improvements Parks Streets TOTAL .'- Additional Cost $ 8,300 Up To $50,000 additional per year. '---~ HISTO'CAL COMPARISON OF PER'APITA GENERAL FUND OPERATING REVENUE & EXPENDITURES (Includes CIP Project Expense and Civic Center Debt Service Payments) e.' REVENUES Actual Actual Actual Actual Actual Budget 1990-91 1991~92 1992-93 1993-94 1994-95 1995-96 $ 14,089,243 $ 13,113,515 $ 13,165,467 $ 13,570,129 $ 14,841,491 $ 15,115,955 Population 23,550 23,500 25,162 25,853 26,270 26,581 $ Per Capita $598 $558 $523 $525 $565 $569 EXPENDITURES Actual Actual Actual Actual Actual Budget 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 $ 12,754,132 $ 12,662,529 $ 12,707,804 $ 12,179,833 $ 12,838,951 $ 14,731,221 Population 23,550 23,500 25,162 25,853 26,270 26,581 $ Per Capita $542 $539 $505 $471 $489 $554 .. I-+- Revenue --- Expenditures I $600 $550 $500 $450 1990-91 1991-92 1992~93 1993-94 1994-95 1995-96 ANAL YSIS: General Fund Revenues and Expenditures have been increasing over the past two Fiscal Years, However, it is notable that the per capita revenue projected for Fiscal Year 1995-96 remains below .' the per,capita revenue achieved in Fi.scal Year 1990-91. Per Capita Expenditures in Fiscal Year 1995-96 _,: are projected to be only 2.2% over FIscal Year 1990-91 levels. ATTACHMENT 2 02114/964;55 PM e e ~ Comparison of Total General Fund Revenues (Adual FY 1990-91 - FY 1994-95 Plus Budget 1995196) . Actual Actual Actual Actual Actual Budget REVENUES 1990-91 1991.92 1992-93 1993-94 1994-95 1995-96 Property Taxes $ 3,790,611 $ 3,807,251 $ 3,659,582 $ 3,853,102 $ 3,944,284 $ 3,968,100 Sales Tax $ 5,839,089 $ 5,293,709 $ 5,484,502 $ 5,969,342 $ 6,470,287 $ 6,400,000 Other Taxes $ 574,353 $ 599,290 $ 731,622 $ 634,740 $ 651,807 $ 805,500 Licenses & Permits $ 248,116 $ 246,459 $ 281,921 $ 340,995 $ 337,551 $ 565,650 Fines & Forfeitures $ 19,476 $ 25,780 $ 24,414 $ 34,316 $ 35,668 $ 35,000 Interest $ 1,282,078 $ 976,342 $ 805,693 $ 877,290 $ 1,068,232 $ 1,043,000 Rentals $ 56,869 $ 62,161 $ 73,276 $ 58,325 $ 72,482 $ 81,850 Intergovernmental $ 973,266 $ 864,647 $ 919,902 $ 945,713 $ 1,044,002 $ 1,031,450 Charges For Services $ 1,196,484 $ 939,833 $ 1,020,631 $ 580,738 $ 1,053,715 $ 1,096,030 Other Revenue* $ 108,901 $ 298,043 $ 163,924 $ 275,568 $ 163,463 $ 89,375 'lncludes ABAG PLAN Insurance Dividend TOTAL REVENUE $ 14,089,243 $ 13,113,515 $ 13,165,467 $ 13,570,129 $ 14,841,491 $ 15,115,955 .' $15,500,000 $15,000,000 $14,500,000 $14,000,000 $13,500,000 $13,000,000 $12,500,000 $12,000,000 FY 90-91 FY 91-92 FY 92.93 FY 93-94 FY 94-95 FY 95-96 ANALYSIS: After experiencing revenue growth between FY 1992-93 and FY 1994-95, Staff is projecting a leveling off in FY 1995-96. It is important to note the categories which contributed significantly to the Revenue Growth (Sales Tax, Interest, and Charges For Services). Each ofthese revenues are highly related to external economic fadors. . ATTACHMENT 3 2/14/9611:01 <...-' e e COMPARISON OF ACTUAL GENERAL FUND REVENUE TREND COMPARED TO REVENUES ADJUSTED TO CONSTANT 1991 DOLLARS (Based Upon San Francisco/Oakland -Urban Wage Earners June 1991 - June 1995 Adjusted To 1991 Dollars) .'- $15,500,000 $15,000,000 $14,500,000 $14,000,000 e.--- $13,500,000 $13,000,000 $12,500,000 1-..- Actual Revenue ----- CPI Adjusted Revenue I $12,000,000 FY 1990-91 FY 1991-92 FY 1992-93 FY 1993-94 FY 1994-95 FY 1995-96 ANAL YSIS: e-- Printed: 2/13/96 5:25 PM Although General Fund Revenues have increased for each of the past two years, this does not account for the effect of inflation. The bottom line (small squares) on this chart identifies the revenue trend adjusted to constant 1991 dollars. Since 1990/91, the revenues have lagged behind inflation, as shown by the fact that the Adjusted Revenue line has never exceeded $13,500,000 subsequent to the first year shown on the chart. Further, the trend for Adjusted Revenue between FY 1994-95 and the projected revenue for FY 1995-96, actually shows a slight decline. ATTACHMENT 4 e e "--' Historical Trends For Major General Fund Revenue Categories Actual Actual Actual Actual Actual Budget . REVENUES 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 Property Taxes $ 3,790,611 $ 3,807,251 $ 3,659,582 $ 3,853,102 $ 3,944,284 $ 3,968,100 General Fund Total 26.9% 29.0% 27.8% 28.4% 26.6% 26.3% Sales Tax $ ~,839,089 $ 5,293,709 $ 5,484,502 $ 5,969,342 $ 6,470,287 $ 6,400,000 General Fund Total 41.4% 40.4% 41. 7"10 44.0% 43.6% 42.3% Interest $ 1,282,078 $ 976,342 $ 805,693 $ 877,290 $ 1,068,232 $ 1,043,000 General Fund Total 9.1 % 7.4% 6.1 % 6.5% 7.2% 6.9% Charges For Services $ 1,196,484 $ 939,833 $ 1,020,631 $ 580,738 $ 1,053,715 $ 1,096,030 % General Fund Total 8.5% 7.2% 7.8% 4.3% 7.1% 7.3% % Total Major Categories 85.9% 84.0% 83.4% 83.2% 84.5% 82.8% Actual Trends For Major General Fund Revenues (1990/91 - 1995/96) -Sales Tax ~Property Taxes -'-Interest ~Charges For Services $6,975,000 $6,325,000 $5,675,000 e"'-: .- $5,025,000 ----------~ ---------~-- --------~-- ----~----~-- ----------- $4,375,000 ----~~----- ---~-------- -~--------~ ---------~-- ----~--~--- $3,725,000 $3,075,000 ~----~--~-- ---~~------- -~~-------- -------~~--- ---~------- $2,425,000 --~-------~ ------------ -----~----- ------~----- ----------- $1,775,000 $1,125,000 -~------~-- -----~-~---- ----------- --~----~---- ----------- $475,000 1990.91 1991-92 1992-93 1993-94 1994.95 1995-96 ANALYSIS: This chart analyzes four major General Fund Revenues which account for over 80% ofthe total General Fund Revenues collected. Except for Sales Tax and Charges for Services. these major revenue sources have remained relatively flat. e.. 2/13/9618:14 ATTACHMENT 5 e - ANALYSIS OF THE IMPACT OF INTEREST RATE CHANGES ON GENERAL FUND INTEREST REVENUES Interest Revenue In The General Fund .~1e City of Dublin has the benefit of General Fund Reserves, which are invested along with other monies held .by the City. Interest earnings from the General Fund share of the investments produce a revenue source which can be significant, as well as a source of revenue which cannot be impacted by the State Budget process. Over the past 5 years the General Fund Interest Revenue has ranged from a low of approximately $805,000 in 1992/93, to a high of approximately $1,282,000 in Fiscal Year 1990-91. r:....-.o -' Investments With Stated Maturities As of January 31, 1995 approximately 57% of the total City portfolio is invested in Federal Agency and US Government securities. In addition approximately 3% is invested in insured Certificates of Deposit (CD) placed with financial Institutions. The City has structured its portfolio with varying maturity dates. Final maturities have also been selected to protect the opportunity to have $13,052,781 available on February 1, 1999. It is proposed that these funds would be used to call all outstanding Civic Center Certificates of Participation. The following is a breakdown of the Government/Agency Securities and CD's based upon the fiscal year of maturity and whether the investment may be called prior to the stated maturity date. FIXED MATURITIES CALLABLE MATURITIES TOTAL Fiscal Year Fixed Final Maturity Average Rate Callable Prior To Maturity Date Average Rate GRAND TOTAL Weighted Average .1~95/96 1996/97 1997/98 1998/99 $500,000 $2,393,000 $100,000 $1,391,000 6.200% 6.788% 6.010% 5.161 % None $1,000,000 $1,000,000 $7,400,000 None 5.805% 5.756% 5.380% $500,000 $3,393,000 $1,100,000 $8,791,000 6.20% 6.50% 5.78% 5.35% Potential Impacts of Interest Rate Changes On Replacement Investments Several aspects of this part of the portfolio are especially important to keep in mind, when considering potential future income streams. First, is the relatively high rates currently received on securities maturing in the next two years. For example from November 1995 to January 1996 the average on a 2 Year Treasury Note declined from approximately 5.5% to approximately 5.08%. In early February 1996 a 3 Year Treasury Note, was trading at approximately 5.0%. As securities mature it is anticipated that the City will receive lower yields. Second, is the impact by recent changes in Federal monetary policy, which may escalate the number of securities called prior to their stated maturity. All of the callable securities are eligible to be called by December 1996. For example, the City currently holds a FNMA callable security which matures in May of 1998 and has a yield of 6.03%. The agency may fmd that it can call the instrument in November and reissue the debt at a lower rate. Replacement investments available to the City will also be paying a lower rate. The third impact is the shortening of the investment time frame for maturing investments. If the City is going to have funds available to provide for an early call of the Civic Center COP's, all replacement investments must be ..:~ a term of under 3 years. Typically the rate of interest paid on investments declines for short term nvestments compared to those placed with maturities of 3 - 5 years. Once Again this may impact the future revenues available from interest. ATTACHMENT 6 printed: 02/14/964:59 PM 4:59 PM . Impact of Interest Rate Changes On General Fund Revenue As previously noted interest revenue can be a significant discretionary revenue source to the City. Based upon recent economic changes and the issues discussed above, it is also foreseeable that the City will experience a decline in intere~t revenue in future years. Shown below is a graph which displays the annual interest revenue. produced by a fund balance of $19,400,000. TIris was approximately the General Fund Balance at June 30, 1995. It is important to note that the actual amount available for investment may average less than $19.4 million. This is due to the fact that the City must pool its cash to cover operating costs expensed from all funds. For example, on the $2.0 million ISTEA Dublin Boulevard Widening Project, the City is reimbursed for expenditures after they have already been made. Therefore, the chart is intended to show the general magnitude of changes in interest rates. e I. --.J Changes In Annual Interest Revenue Based Upon $19,400,000 Invested At Different Interest Rates 1250000 1150000 .: GI CI ~ GI ~ 1050000 a.. ~ iil E ~ 950000 p n n __ - __ - __ - __ p - __ - - Actual 92/93 Avg Rate 'iii ::l C C < 850000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 750000 6.00 5.75 5.50 5.23 5.14 5.00 4.75 The significance of the chart shown above is the reduction in interest revenue to the City as the interest rates continue to decline. Hypothetically, if the City had $19,400,000 invested and the total return declined by approximately 1/2 % the annual decline in revenue would be approximately $48,500. .- 02114/964:59 PM 4:59 PM ('--'"~' ~ . e . GENERALFUNDEXPENDnITffiES (Operating Expenses I CIP I Debt Service) Actual Actual Actual Actual Actual Budget 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 General Govenunent $ 1,369,175 $ 1,532,775 $ 1,479,889 $ 1,464,618 $ 1,581,140 $ 1,650,777 Public Safety $ 4,795,468 $ 5,350,467 $ 5,802,850 $ 5,727,728 $ 6,043,221 $ 6,916,167 Transportation $ 837,547 $ 841,414 $ 595,253 $ 487,451 $ 539,936 $ 700,912 Health & Welfare $ 26,277 $ 29,526 $ 7,271 $ 76 $ 17,412 $ Culture & Leisure $ 1,470,398 $ 1,693,297 $ 1,745,571 $ 1,712,352 $ 1,765,992 $ 1,954,577 Community Development $ 1,827,355 $ 1,438,473 $ 1,297,193 $ 986,292 $ 1,250,082 $ 1,624,160 Contingent Reserve N/A N/A N/A N/A N/A $ 100,025 TOTAL OPERATIONS $ 10,326,220 $ 10,885,952 $ 10,928,027 $ 10,378,517 $ 11,197,783 $ 12,946,618 Capital Improvement Program $ 848,440 $ 231,875 $ 204,239 $ 342,723 $ 179,719 $ 284,923 Net Debt Service $ 1,579,472 $ 1,544,702 $ 1,575,538 $ 1,458,593 $ 1,461,449 $ 1,499,680 .'.. ':: GRAND TOTAL $ 12,754,132 $ 12,662,529 $ 12,707,804 $ 12,179,833 $ 12,838,951 $ 14,731,221 $14,100,000 --------~ ~-~------ -~------- --~------ ~---- $12,100,000 $10,100,000 ---~----- --~-~--~- -----~-~- ------~~- -----~-~- $8,100,000 ~--~----- -----~--- -------~- --------- -------~- -Grand Total --+- Total Operations ....... Debt Service ........ C I P $6,100,000 -----~--- --------~ -~~------ ~-------- ~---~---- $4,100,000 --------- --------- --------- -----~--- -----~--~ $2,100,000 $100,000 1990-91 1991-92 1992~93 1993-94 1994-95 1995-96 e., ANALYSIS: The chart displays that the most significant part of the General Fund expenditures are related to operating costs. Use of General Fund monies for capital projects has remained relatively flat for the time period analyzed. 2114196 5:03 PM Attachment 7 e e , .l---J COMPARISON OF ACTUAL GENERAL FUND EXPENDITURES . COMPARED TO EXPENDITURES ADJUSTED TO CONSTANT 1991 DOLLARS (Based Upon San Francisco/Oakland -Urban Wage Earners June 1991 - June 1995 Adjusted to June 1991 Dollars) $15,000,000 $14,000,000 ---------- ~--------~- -----~------------~--~ --~--- --~- $14,500,000 - - - - - - - - - - - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ $13,500,000 ---------- ----------- ------------~-----~--- --- ~------ $13,000,000 -----~~~-- -~-~------- ------------------~--~ $12,500,000 --- Actual Expense --Adjusted Expense $12,000,000 $11,500,000 .-- $11,000,000 - - - - - - - - - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ $10,500,000 ---------- ----------- ----~---------------~- ~---~----~- $10,000,000 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 ANAL YSIS: Although for each of the past two years the actual General Fund Expenditures have increased, it is important to consider these changes in terms of constant dollars. As shown, the bottom line displays the expenditure pattern in constant 1991 dollars. It is most significant to note that the Fiscal Year 1995-96 Budgeted Expenditures were relatively equal to the Fiscal Year 1990-91, on this adjusted scale. .'.:. . . printed: 02/14/96 5:08 PM 5:08 PM ATTACHMENT 8 C-"" ~ .. .- .:i~ ., .' $7,150,000 $6,900,000 $6,650,000 $6,400,000 $6,150,000 $5,900,000 $5,650,000 $5,400,000 $5,150,000 $4,900,000 $4,650,000 $4,400,000 $4,150,000 $3,900,000 $3,650,000 $3,400,000 $3,150,000 $2,900,000 $2,650,000 $2,400,000 $2,150,000 $1,900,000 $1,650,000 $1,400,000 $1,150,000 $900,000 $650,000 $400,000 $150,000 1990-91 Analysis: I 02114/96 10:47 AM GENE&ttFUND EXPENDITURES BY MAJOa.OGRAM (Exluding Health Welfare) 1991-92 1992-93 1993-94 1994-95 1995-96 -II- Public Safety --- General Government -+-CIP -'-Culture & leisure -..- Net Debt Service - Community Development -e- Transportation This chart analyzes a comparison between General FWld major expenditures by program area. As shown Public Safety expenditures have increased in recent years. Although, CommWlity Development spending has increased over the past two years due to increased development activity, the Fiscal Year 1995/96 Budget remains below the Fiscal Year 1990-91 expenditures in this category. Culture & Leisure shows a slight increase in the most recent year. Changes in other program areas have been relatively flat. ATTACHMENT 9 I:STORlCAL COMPARISON. GENERAL FUND BALANCE (prepared February 7, 1996) ,~ ). ~~....j . June 30, 1993 June 30,1994 June 30, 1995 TOTAL FUND EQUITY $ 16.276.437 $ 17.711.706 $ 19.465.801 DESIGNATED USES / RESERVES Amt. Required To Call Civic Center COP's 2/1199 $ 13,052,781 $ 13,052,781 $ 13,052,781 Liability Insurance Reserve 137,210 137,210 (See Note 1) Cemetery Endowment N/A 60,000 60,000 Reserve For Economic Uncertainty N/A 1,369,133 1,369,133 Reserve For Prepaid Expenses 5,845 11,981 4,7. SUB - TOTAL DESIGNATED USES $ 13,195,836 $ 14,631,105 $ 14,486,6 '--,' AMOUNT UNDESIGNATED $ 3,080,601 $ 3,080,601 $ 4,979,172 Note 1: Due to a change in accepted accounting practices the City now records a Liability for self insured losses, rather than reserving fund balance. Maturity Schedule For Investments The City has structured its investment portfolio in a manner which includes investments of more than one year. The maturities are structured to allow for the early payment of the Civic Center Certificates of Participation on February 1, 1999. As of January 31, 1996 approximately $15,285,995 is invested with a maturity of more than one year, which could impact the use of these funds in the upcoming year. .' printed: 02/14/96 5:15 PM 5:15 PM ATTACHMENT 10 .--:, ... .. "'I ~ j ~ (__".I; " e e CITY OF DUBLIN HISTORICAL COMPARISON 1991 - 1995 OF PER CAPITA GENERAL FUND BALANCE IN CONSTANT 1991 DOLLARS Acmal Per Fund Balance Adjusted Audit Fund Population Adjusted To Fund Balance As of June 30 Balance (Subvention Basis) Constant 1991 $ Per Capita 1995 $ 19,465,801 26,581 $ 17,416,052 $655 1994 $ 17,711,706 26,270 $ 16,037,950 $611 1993 $ 16,276,437 25,853 $ 15,150,108 $586 1992 $ 15,454,837 25,162 $ 14,845,916 $590 1991 $ 15,327,882 23,500 $ 15,327,882 $652 Per Capita Fund Balance Adjusted To 1991 Dollars $660 $640 $620 $600 -~----------------- $580 -------~----------- $560 -----------~~--~~~~ $540 1991 1992 1993 1994 1995 Analysis: The chart above displays changes in fund balance per capita, as adjusted to constant 1991 dollars. The City has achieved an increase over the past two years. However, it is important to note that the June 1995 figure of $655 per capita relatively the same as the 1991 per capita amount, when expressed in constant dollars. printed: 02114/96 5:05 PM 5;05 PM ATTACHMENT 11 " FISCAL YEARt9511996 GENERAL FUND BaGET SUMMARY ESTIMATED GENERAL FUND APPROPRIATIONS TO RESERVES (ADJUSTED TO REFLECT AUTHORIZED BUDGET ADJUSTMENTS AS OF 12/31/95 AND MID YEAR PROJECTIONS Per Staff Report 2/13/96) ., ... -.~ ~ ... .J I",_.~_l . ADJUSTED REVENUES Estimated General Fund Revenue As Adopted 6/95 Revenue Adjustments Approved July 1995 - December 1995* Mid-Year Projected Net Increased Revenues (2/13/95 Report) PROJECTED GENERAL FUND REVENUES $ 15,115,955 41,348 178.535 $ 15,335,838 (* These increases were not accounted for in the 2/13/95 Mid-Year Report) ADJUSTED EXPENDITURES General Government Gross Debt Service Civic Center COP Budgeted Contingent Reserve Public Safety Transportation Culture & Leisure Services Community Development Capital Improvement Projects $ 1,570,709 1,604,480 95,880 6,917,167 700,912 1,960,497 1,799,160 337,720 ..-: SUB~TOTAL ADJUSTED EXPENDITURES $ 14,986,525 ADJUSTED NET TRANSFERS Adopted Budget Net "Transfers Out" To Other Funds $ Revised Mid~Year Additional Net "Transfer Out" SUB-TOTAL NET "TRANSFER OUT" $ 309,201 7,875 317,076 GRAND TOTAL EXPENDITURES/ "TRANSFERS OUT" $ 15,303,601 PROJECTED DIFFERENCE IN GENERAL FUND REVENUES vs. EXPENDITURES (Additional Appropriation To Reserves) $ 32.237 .' ATTACHMENT 12 02/14/963:25 PM