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HomeMy WebLinkAboutItem 8.2 Budget Study Session CITY CLERK File# 330-20 AGENDA STATEMENT CITY COUNCIL MEETING DATE: March 31, 2003 SUBJECT: 2003-2004 Budget Study Session Report Prepared by: Richard C. Ambrose, City Manager ATTACHMENTS 1. Analysis of Anticipated 2003-2004 Impacts on the City's General Fund 2. Background Financial Information 2A-2E 3. Summary of 2002-2007 Capital Improvement Program by Program Area 4. Budget Issues Worksheet 5. Resolution No. 80-93 (Policy for Management & Use of General Fund Assets) RECOMMENDATION:/'~f~ 1. Receive Staff Report. 2. Review Budget Issues Worksheet and provide Staff with direction on each of the issues identified in the Worksheet. 3. Establish Budget Hearing Date to consider 2003-2004 Annual Budget and Five Year Capital Improvement Program Update FINANCIAL STATEMENT: See attached DESCRIPTION: The City's Annual Budget Study Session provides the City Council with an opportunity to identify those programs, services, and projects the Council would like Staff to analyze as part of the development of the City's Annual Operating Budget and the update of the Five Year Capital Improvement Program for the upcoming year. The Budget Study Session also serves as a means of providing the Council with early information regarding those items that may have a significant impact (positive or negative) on the City's expenditures and revenues in 2003-2004. The Study Session is also designed to minimize last minute budget issues for which there would be insufficient time to evaluate. The Study Session will be most productive if individual Councilmembers review the Fiscal Year 2002-2003 Budget and 2002-2007 Capital Improvement Program documents adopted last June prior to completing the Budget Issues Worksheet and bring the completed Budget Issues Worksheet (Attachment 4) to the Council meeting for purposes of discussion. COPIES TO: ITEM NO. ~.~ G:\CC-MTGS\2003-qtrl\MAR~3-31-03g&o\as-budget study session.doc ANALYSIS OF ANTICIPATED FUTURE IMPACTS ON THE FISCAL YEAR 2003-2004 BUDGET Staff has identified a number of items that could potentially impact the City's budget for Fiscal Year 2003- 2004. The information identified below is preliminary and is based upon the data available at this time. REVENUE Staff anticipates there could be the following positive and negative impacts on the City's revenue for the upcoming Fiscal Year: 1. Effects of the recession - Continued economic uncertainty has resulted in a downturn for the City in building permit revenue, interest income, transient occupancy tax and sales tax in Fiscal Year 2002- 2003. It is expected that amounts collected in these revenue categories will continue to suffer in Fiscal Year 2003-2003. The on-going recession could further erode the City's various revenue streams. 2. Property Tax - At this time, Staff anticipates modest growth in the City's property tax as a result of projects that are already in process and will result in additional assessed valuation for the upcoming Fiscal Year. 3. Sales Tax -Although auto sales have continued to provide the City with a strong sales tax income for Fiscal Year 2002-2003, it is anticipated that the rebates and low or no interest rates on auto sales will not be part of the sales tax landscape for Fiscal Year 2003-2004. Total sales tax collections through March 2003 are approximately 2.2% ahead of last year; however, sales tax receipts for fourth quarter 2002 were 5.66% or $206,956 less than fourth quarter 2001. 4. Impact of the projected State Budget Deficit - As covered in the Mid-Year Budget Report, the State is facing a multi-billion dollar deficit for the current year and for Fiscal Year 2003-2004. The largest potential impact to the City continues to be the Vehicle License Fee (VLF). If the State opts not to fund the VLF "backfill," 67.5%, or approximately $1.4 million is at risk. In addition, the Governor is also proposing to suspend the Proposition 42 allocations to cities for road maintenance in Fiscal Year 2003-2004; this would result in a revenue loss of about $84,000. 5. Reductions in New Development -In this Fiscal Year 2002-2003, only one major commercial project was completed. This slowdown could result in the need to defer some impact fee dependant capital improvements (i.e. Parks and Recreation Facilities and Roadways) beyond the time frames identified in the Capital Improvement Program. There are some concerns that the both the residential and rental markets are softening which could further erode the revenues in this category. EXPENDITURES Staff has identified a number o£ items that are anticipated to have a significant impact on the City's budget for Fiscal Year 2003-2004. This analysis does not include inflationary increases associated with materials, supplies, equipment or increased costs associated with salaries and benefits for City employees. 1. Full Year Funding of Personnel - Several City Departments carried vacancies for part of the current Fiscal Year. It is anticipated that the City will have to fund the full year cost of these positions in Fiscal Year 2003-2004. ATTACHMENT 1 2. Additional Police Costs - Staff anticipates that there will be additional Police costs associated with salary and benefit increases for the Alameda County SherifFs Department personnel. The City will not only need to fund the full year cost of increases that were granted during Fiscal Year 2002-2003 a portion of the way through the year, but also negotiated increases for Fiscal Year 2003-2004. The City has also been advised that the Sheriff will be proposing an increase in the booking fees by 28% effective July 1, 2003. 3. Fire Services - It is possible that the Fire Service costs to the City could exceed Fiscal Year 2002- 2003 by more than $2 million. These increases are due to increased salary and benefit costs for contract Fire Staff, the addition of an engine company to the City's Fire staffing effective July 1, 2003, an increase in the City's allocated share of the Alameda County Fire Department's expenses, and the cost of maintaining and operating two new fire stations. 4. Library - Additional costs will be incurred to fund Library services in the City's new Library. In addition, the City will be responsible for maintenance and operation costs associated with the new Library, as well as maintenance costs for the old Library site until construction of the new Senior Center commences. 5. Maintenance - It is anticipated that the City will experience additional street, sweeping, landscape, tree and signal maintenance costs associated with new infrastructure that in being completed as part of new development in Eastern Dublin. In addition, the City will need to maintain Emerald Glen Park Phase II in January 2004. 6. Carryover Capital Projects from Fiscal Year 2002-2003 - As mentioned in the Fiscal Year 2002- 2003 Mid-Year Budget Update, it is expected that approximately $630,000 will need to be carded over into Fiscal Year 2003-2004 for Capital Projects funded by the General Fund that were initiated but not completed in the current fiscal year. Additionally, the City's current 5-Year Capital Improvement Program identifies approximately $2.5 million in projects with funding from the General Fund which are scheduled for Fiscal Year 2003-2004. If the negative impacts from the State budget/economy and other potential revenue shortfalls materialize, Staff projects that there may be insufficient revenues to finance those Capital projects scheduled for the upcoming fiscal year. ANAL YSIS OF ANTI CIPA TED FUTURE IMPA CTSO 3-04.doc G:\CC-MTGSX2003-qtrl WIARX3-31-03g&oXAttl-budget study.doc HISTORICAL COMPARISON OF GENERAL FUND OPERATING REVENUE VERSUS EXPENDITURES (includes ClP Project Expense and Civic Center Debt Service Payments) $40 ~ $35 $3oi o $20 $15 $10 ~ 1996-97 1997-98 1998-99 1999-00 2000-01 200'1-02 2002-03 -~ Revenue ..,a- Expenditures Revised Actual Actual Actual Actual Actual Actual Budget 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 REVENUES $ 17,438,474 $ 20,894,763 $ 24,051,678 $ 30,673,892 $ 37,263,474 $ 35,648,372 $ 36,125,653 EXPENDITURES $ 15,429,391 $ 18,044,611 $ 20,987,640 $ 21,916,167 $ 25,001,837 $ 31,128,92! $ 37,011,39t NOTE: The revised budget includes budget adjustments approved by Council through the February 20, 2003. Of the total expenditures listed above, approximately (") $3.4 million are funded in Fiscal Year 2002-2003 by Capital Project Reserves in the General Fund previously set aside by Council for thc following projects: Senior Center, Library, Energy Projects, and Capital Project Carryovers Date Printed: 3/27/2003 2:12 PM H:\Budget\Goals & Objectives\Comparison General Fund Expenses & Revenues chart. XLS COMPARISON OF TOTAL GENERAL FUND REVENUES Last Seven Fiscal Years $40 i $37.3 $35.6 $36.1 $39 $30.7 $30 ~24.1 =e $25 ~ $20.9 ~ $20 _= $10 $5 $0 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 Revised Actual Actual Actual Actual Actual Actual Budget REVENUES 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 Property Taxes $ 3,920,897 $ 4,351,859 $ 4,866,093 $ 5,991,814 $ 7,174,290 $ 8,794,711 $ 9,892,843 Sales Tax 7,108,598 8,025,448 8,687,091 11,548,901 12,985,985 12,813,111 t2,702,000 Other Taxes 1,128,454 1,297,452 1,522,356 2,142,704 2,899,168 2,630,868 2,766,900 Licenses & Permits 1,092,183 1,398,677 2,472,217 3,897,965 3,028,655 2,327,251 1,622,404 Fines & Forfeitures 38,492 40,421 60,876 84,543 106,234 118,191 114,000 Interest and Rentals 1,388,949 1,556,181 1,352,939 1,340,737 2,626,837 1,929,610 1,373,538 intergovernmental 1,151,275 1,233,812 1,356,234 1,632,441 2,006,116 2,076,649 2,096,165 Charges For Services 1,386,419 2,483,861 3,482,983 3,308,263 3,719,568 4,464,260 4,815,035 Other Revenue* 223,207 507,052 250,889 726,524 2,716,621 493,723 . 742,768 T@TALREVENUE $17,4 ,474 $ 20~894.,763 $ 24,051,678 $ 30,673,892 $ 37,26.3,474 $ 35,648,374 $ 36,/25,653 ANALYSIS: After experiencing significant revenue growth between FY 1995-96 through 2000-01, the City is experiencing a leveling off of growth in FYs 2001-02 and 2002-03. It is important to note the categories which contributed significantly to the revenue growth (Sales Tax, Property Tax, Charges for Services and Licenses and Permits) in the prior Fiscal Years. "Licenses and Permits" and "Charges for Services" are largely related to Development Activity. These revenues directly offset current operating costs. Both of these revenues are highly related to external economic factors. The 2002-03 budget also includes $742,768 in "Other Revenue" which typically is from one-time / non recurring sources. ATTACHMENT Date Pdnted: 3/27/2003 2:19 PM H:~udget\Goals & Objectives\General Fund Revenues Comparison chart. XLS ACTUAL TRENDS FOR MAJOR GENERAL FUND REVENUES Last Seven Fiscal Years $14 $12 $10 .o_ ~ SO I $0 1996-97 1997-98 1998-99 1999-00 2000-0t 2001-02 2002-03 -4~-Property Taxes -e--Sales Tax ~Licenses and Permits · Charges For Services Revised Actual Actual Actual Actual Actual Actual Budget REVENUES 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 Sales Tax $ 7,108,598 $ 8,025,448 $ 8,687,091 $11,548,901 $12,985,985 $ 12,8t3,111 $ 12,702,000 % General Fund Total 40.8% 38.4% 36.1% 37.7% 34.8% 35.9% 35.2% Property Taxes $ 3,920,897 $ 4,351,859 $ 4,866,093 $ 5,991,814 $ 7,174,290 $ 8,794,711 $ 9,892,843 % General Fund Total 22.5% 20.8% 20.2% 19.5% 19.3% 24.7% 27.4% l[Jiec~ses m~d Permits $ 1,092,1~3 $ 1,398~677 $ 2~472,217 $ 3,897,965 $ 3,02§,655 $ 2~327,251 $ 1,622,404 % General Fund Total 6.3% 6.7% 10.3% 12.7% 8.1% 6.5% 4.5% Charges For Services $ 1,386,419 $ 2,483,861 $ 3,482,983 $ 3,308,263 $ 3,719,598 $ 4,464,260 $ 4,815,035 % General Fund Total 8.0% 11.9% 14.5% 10.8% 10.0% 12.5% 13.3% % Total Major Categories 77.6% 77.8% 81.1% 80.7% 72.2% 79.6% 80.4% ANALYSIS: This chart analyzes four major General Fund Revenues which account for approximately 80% of the total General Fund Revenues collected. ATTACHMENT 2C Date Printed: 312612003 8:26 AM H:\Budget\Goals & Objectives\general fund revenue trends chart. XLS ALL GENERAL FUND EXPENDITURES (Operating Expenditures / CIP / Debt Service) $40 $37.0 $35 $30.9 $30 ~ $25.0 $25 ~ $21.0 $21.9 ~ $18.0 ~ $10 $5 i ~ $0 ~ 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 Revised Actual Actual Actual Actual Actual Actual Budget 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 General Government $ t,691,687 $ 1,761,643 $ 2,139,738 $ 2,274,915 $ 3,085,725 $ 3,929,9t9 $ 4,420,521 Public Safety $ 6,723,854 $ 8,204,545 $ 8,805,457 $ 9,485,166 $ 10,401,808 $ 11,608,468 $ 13,298,811 Transportation $ 629,264 $ 650,709 $ 776,929 $ 827,142 $ 959,762 $ 1,094,100 $ 1,337,221 Health & Welfare $ 15,596 $ 17,039 $ 16,969 $ 19,086 $ 13,483 $ 52,015 $ 69,001 Culture&Leisure $ 2,000,560 $ 2,168,994 $ 2,248,580 $ 2,827,621 $ 3,332,421 $ 4,012,730 $ 4,740,119 Community Development $ 1,838,558 $ 2,761,133 $ 3,606,401 $ 4,116,030 $ 4,526,076 $ 4,643,652 $ 5,824,070 Contingent Reserve N/A N/A N/A N/A N/A N/A N/A TOTAL OPERATIONS $ 12,899,519 $ 15,564,063 $ 17,594,074 $ 19,549,960 $ 22,319,275 $ 25,340,884 $ 29,689,743 Capital Improvement Program $ 1,033,056 $ 987,200 $ 1,779,159 $ 2,366,207 $ 2,682,562 $ 5,537,033 $ 7,321,648 NetDebt Service $ 1,496,816 $ 1,493,348 $ t,614,407 $ $ $ - $ - GRAND TOTAL $ 15,429,391 $ 18,044,611 $ 20,987,640 $ 21,916,167 $ 25,001,837 $ 30,877,917 $ 37,011,391 ANALYSIS: The chart displays General Fund expenditures by major program area. ATTACHMENT 2D Date Pdnted: 312612003 8:27 AM H:\Budget\Goals & Objectives\General Fund Expense Chart.XLS CAPITAL PROJECT EXPENDITURES IN GENERAL FUND Last Seven Fiscal Years $9 $8 $7.3 $7 ~ $6 $5.5 -'z- $5 ~ $4 $2.7 ~ $2.4 ~ $3 $1.8 ~ $2 $1.0 $1.0 ~ $1 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 Revised Actual Actual Actual Actual Actual Actual Budget 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 Capital lmprovementProgram $ 1,033,056 $ 987,200 $ 1,7'79,159 $ 2,366,207 $ 2,682,562 $ 5,537,033 $ 7,321,648 ANALYSIS: In the last five Fiscal Years the General Fund has funded Capital Improvement Projects to a greater extent than in prior years. ATTACHMENT 2E Date Printed: 3/26/2003 8:27 AM H:\Budget\Goats & Objectives\General Fund Expense Chart. XLS REVISED AS OF MARCH 25, 2003 SUMMARY 2002-2007 CAPITAL IMPROVEMENT PROGRAM - GENERAL PRIOR PROJECT NUMBER AND NAME TOTALS YEARS 2002-2003 2003-2004 2004-2005 2005-2006 .2006-2007 93130 City Cablecast System $ 184,050 $ 3,750 $ 180,300 93150 Network System Upgrade 239,529 239,529 93155 Senior Center Computer System 23,510 23,510 93157 Engineering Printer, Copier, Scanner 37,096 37,096 93172 Fuel Tank Upgrade 84,989 35,639 49,350 93173 Replace Police Records Shelving 16,500 16,500 93190 Central Data Processing System Upgrade 155,916 127,416 28,500 93192 Geographic Information System 571 976 26,961 245,015 $ 75,000 $ 75,000 $ 75,000 $ 75,000 93200 Automated Building Permit System 47 351 47,351 93220 Communications System Upgrade 150 666 42,385 108,281 93310 Computers for Our Schools Project 294 392 294,392 93320 Telecommunications Plan 113 581 13,581 34,000 33,000 33,000 93321 E-commerce and Payment Processing 64 595 64,595 93325 Automated Notification System 41 154 41,154 93401 Senior Center Housing Evaluation 10 000 10,000 93450 Civic Center Library 17,093,466 8,473,219 8,620,247 93460 Civic Center Trailer Annex 28,388 28,388 93501 Fire Station 18 Apparatus 696,000 696,000 93510 Emerald Glen Fire Station 5,736,488 975,659 2,900,169 1,860,660 93511 Fire Station 18 4,704,100 307,539 3,459,471 937,090 93650 Pool Vehicle 25,000 25,000 93910 Civic Center Modification Design Services & Construction 2,283,438 2,149,988 133,450 93911 Front Counter Upgrade 69,300 69,300 93915 Civic Center Automatic Door 17,753 17,753 93916 ADA Building Conformance Upgrades 30,842 902 29,940 93921 Civic Center Painting 95,389 95,389 93930 Civic CenterRoofReplacement 178,374 178,374 93933 Civic Center Generator 163,855 9,485 154,370 93934 Lighting Retrofit 45,656 45,656 93935 Civic CenterHVAC 1,025,344 24,734 1,000,610 93936 Civic Center Electrical Upgrade 12,700 12,700 93970 Automated Document Storage & Retrieval System 82,706 69,647 13,059 Facility Study Update 14,797 10,000 4,797 94500 Public Fee 94510 Fire Fee Study Update 11,021 I 1,021 TOTAL COST $ 34,349,922 $13,343,218 $ 17,675,504 $ 2,906,750 $ 108,000 $ 108,000 $ 208,450 Date Printed: 3/2612003 8:36 AM H:\Budget\Goals & Objectives\Summary Capital Improvement Program General.xls ATTACHMENT 3 REVISED AS OF MARCH 25, 2003 SUMMARY 2002-2007 CAPITAL IMPROVEMENT PROGRAM - GENERAL FINANCING PRIOR TOTALS YEARS 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 General Fund(001) $ 6,272,078 $ 2,960,790 $ 2,911,288 $ 109,000 $ 108,000 $ 108,000 $ 75,000 Criminal Activity Fund (200) 17,266 17,266 Public Facility Impact Fee (310) 16,902,969 9,070,943 7,698,576 133,450 Fire Impact Fee Fund (320) 11,147,609 1,294,219 7,055,640 2,797,750 Affordable Housing / Noise Mitigation (380) 10,000 10,000 TOTAL FINANCING $ 34,349,922 $ 13,343,218 $ 17,675,504 $ 2,906,750 $ 108,000 $ 108,000 $ 208,450 Date Printed: 3/26/2003 8:36 AM H:\Budget\Goals & Objectives\Summary Capital Improvement Program General.xls ATTACHMENT 3 REVISED AS OF MARCH 25, 2003 SUMMARY 2002-2007 CAPITAL IMPROVEMENT PROGRAM - GENERAL PROJECTS UNFUNDED DURING THE FIVE YEAR TIME FRAME UNFUNDED PORTION OF ESTIMATED PROJECT NUMBER AND NAME COST 93450 Civic Center Library $1,108,390 93910 Civic Center Modification Design Services & Construction $1,644,300 TOTALS $2,752,690 Date Printed: 3/26/2003 8:34 AM REVISED AS OF MARCH 25, 2003 SUMMARY 2002-2007 CAPITAL IMPROVEMENT PROGRAM - COMMUNITY IMPROVEMENTS PRIOR PROJECT NUMBER AND NAME TOTALS YEARS 2002-2003 2003-2004 2004-2005 '2005-2006 2006-2007 94051 Iron Horse Trail Amenities $ 16,994 $ 16,994 94052 Iron Horse Trail - Wildflower Planting 19,996 $ 19,996 94060 Downtown Improvement Implementation 1,352,549 85,849 1,116,700 $ 150,000 94192 Dougherty Road Tree Planting 31,733 31,733 94226 Freeway Underpass Art at Dublin Boulevard & Amador Valley Boulevard 491,350 130,971 360,379 94230 Arroyo Vista Project Improvements Roof Repair 229,997 195,997 34,000 94250 Sidewalk Safety Repair 376,028 80,228 73,950 $ 73,950 $ 73,950 $ 73,950 94252 Bus Shelters 112,729 7,229 105,500 94255 Sidewalk Reconstruction Underneath 1-680 on Dublin Boulevard & Amador Valley Boulevard 58,776 18,250 40,526 94290 Audible Pedestrian Signals . 27,684 27,684 94615 Village Parkway Median Landscaping - Dublin Boulevard 43,983 43,983 to Amador Valley Boulevard 94641 Irrigation Controller Upgrade 17,220 17,220 94701 Downtown Improvement Implementation Plan 46,017 46,017 94941 Replace Fall Banners 11,700 11,700 94955 San Ramon Road Banner Poles 12,515 12,515 94956 Street Banner Art Project 52,563 26,663 25,900 94960 Street Name Identification Sign Replacement Program 30,929 30,929 N/A City Entrance Sign Modifications 73,700 73,700 New San Ramon Road Landscape Renovation 123,260 123,260 TOTAL COST $3,129,723 $ 635,536 $1,851,427 $ 223,950 $ 270,910 $ 73,950 $ 73,950 FINANCING General Fund(001) $2,813,812 $ 378,407 $1,814,645 $ 218,450 $ 265,410 $ 68,450 $ 68,450 State Gas Tax (206) 56,493 56,493 Community Development Block Grant (209) 256,899 198,117 36,782 5,500 5,500 5,500 5,500 Stagecoach Landscape Assessment District (711) 804 804 Dougherty Lighting and Landscape District (713) 1,715 1,715 TOTAL FINANCING $3,129,723 $ 635,536 $1,851,427 $ 223,950 $ 270,910 $ 73,950 $ 73,950 Date Printed: 3/26/2003 8:38 AM H:\Budget\Goals & Objectives\Summary Capital Improvement Program Community Improvements.xls REVISED AS OF MARCH 25, 2003 SUMMARY 2002-2007 CAPITAL IMPROVEMENT PROGRAM - PARKS PRIOR PROJECT NUMBER AND NAME TOTALS YEARS 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007. 95050 Shannon Community Center Decking & Exterior Painting $ 530,655 $ 530,655 95110 Community Gymnasium at Valley High School 1,029,011 $1,029,011 95405 Shannon Park & Community Center Parking Lot Paving 73,692 73,692 95501 Heritage Center Storage Building 68,274 68,274 95451 Shannon Center Doors 30,548 812 .29,736 95560 Murray SchoOl Bell Tower 120,720 1,000 119,720 95565 Murray Schoolhouse Improvements 16,790 16,790 95600 Emerald Glen Park 18,665,560 7,195,356 2,199,404 $ 359,855 $ 4,782,055 $1,136,815 $ 2,992,075 95635 Park Play Area Renovations 454,150 3,600 114,210 132,210 64,210 84,710 55,210 95640 Dublin Ranch Neighborhood Parks 2,174,140 612,290 904,510 657,340 95830 Dublin Sports Grounds Renovation 1,872,477 309,589 955,648 293,500 181,835 131,905 95850 Parks & Recreation Master Plan Update 19,655 19,655 95910 Dublin Swim Center Deck Replacement 804,756 804,756 95911 Dublin Swim Center Exterior Painting & Fence Replacement 91,642 91,642 95851 Fallon Sports Park 117,085 4,500 87,585 25,000 95913 Dublin Swim Center Roof Replacement 90,908 2,213 88,695 95930 Senior Center 7,237,977 32,337 666,680 3,720,708 2,818,252 95935 Community Theater 93,500 93,500 N/A Emerald Glen Park Aquatic Center 3,499,260 138,080 896,325 2,464,855 N/A Emerald Glen Park Recreation Center 11,718,590 416,120 3,018,040 8,284,430 New Emerald Glen Park Activity Center 241,885 241,885 New Shannon Community Center Interior Painting 58,600 58,600 TOTAL COST $ 49,009,875 $ 9,616,782 $ 5,441,068 $ 5,771,168 $ 8,459,152 $ 5,135,890 $14,585,815 FINANCING General Fund (001) $ 8,645,434 $ 2,108,203 $1,598,896 $1,543,613 $ 3,122,897 $ 84,710 187,115 State Park Bond Act (213) 703,628 389,628 314,000 Measure D (224) 56,906 20,439 36,467 Traffic Impact Fee Fund (300) 297,600 164,465 133,135 Public Facility Impact Fee (310) 31,759,976 4,954,177 2,784,799 3,861,665 709,455 5,051,180 14,398,700 Park Dedication In-Lieu Fund (315) 7,546,331 2,369,498 498,143 51,890 4,626,800 TOTAL FINANCING $ 49,009,875 $ 9,616,782 $ 5,441,068 $ 5,771,168 $ 8,459,152 $ 5,135,890 $14,585,815 Date Printed: 3/26/2003 8:39 AM H:\Budget\Goals & Objectives\Summary Capital Improvement Program Parks.xls REVISED AS OF MARCH 25, 2003 SUMMARY 2002-2007 CAPITAL IMPROVEMENT PROGRAM - PARKS PROJECTS UNFUNDED DURING THE FIVE YEAR TIME FRAME UNFUNDED PORTION OF ESTIMATED PROJECT NUMBER AND NAME COST 95600 Emerald Glen Park $ 10,751,070 95640 Dublin Ranch Neighborhood Parks 2,881,860 95851 Fallon Sports Park 57,616,600 95935 Community Theater 3,419,000 N/A Emerald Glen Park Aquatic Center 388,970 N/A Emerald Glen Park Recreation Center 1,244,410 N/A Eastern Dublin Neighborhood Parks 21,396,200 N/A Emerald Glen Park Community Center 10,281,000 N/A Schaefer Ranch Neighborhood Parks 10,106,500 TOTALS $ 118,085,610 LESS AVAILABLE PARK DEDICATION AND PUBLIC FACILITY FEES $ 656,315 FUNDING SHORTFALL $ 117,429,295 Date Printed: 3/26/2003 9:34 AM H:~Budget\Goals & Objcctives\Summary Capital Improvement Program Parks.xls REVISED AS OF MARCH 25, 2003 SUMMARY 2002-2007 CAPITAL IMPROVEMENT PROGRAM - STREETS PROJECT NUMBER AND NAME .TOTALS PRIOR YEARS 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 96010 Dublin Boulevard Improvements - Silvergate Drive to Hansen Drive $ 719,976 $ 719,976 96015 Amador Valley Boulevard & Starward Drive Safety Improvement 24,295 24,295 96021 Bedford Court Subdrain 19,550 19,550 96023 Hansen Drive Drainage Improvements 83,564 83,564 96061 Strect Light Pole Replacement 960,775 $ 102,000 $ 214,775 $ 215,275 $ 215,675 $ 213,050 96080 Dublin Boulevard Underground Utilities - Village Parkway to Sierra Court 453,623 31,021 422,602 96081 Signal Intercom~ect Cable 30,200 30,200 96300 Village Parkway & Lewis Avenue Intersection Improvement 93,695 93,695 96380 1-580 & San Ramon Road Freeway Interchange Improvements 2,012,378 452,779 538,599 1,021,000 96400 Eastern Dublin Arterial Street Improvements 16,407,374 818,536 7,777,494 1,819,157 5,392,187 300,000 300,000 96410 1-580 & Hacienda Drive Freeway Interchange Improvements 1,727,024 1,727,024 96420 1-580 & Tassajara Road Freeway Interchange Improvements 11,332,719 2,782,655 8,550,064 96430 1-580 & Fallon Road Freeway Interchange Improvements - Phase I 8,844,014 1,416,974 2,603,406 4,823,634 96451 Traffic Signal Battery Backup 146,150 146,150 96452 Downtown Traffic Signal Equipment Replacement 122,774 24,857 26,287 26,179 25,594 19,857 96560 Traffic Signals - Village Parkway at Brighton, Tamarack and Davona Drives 542,425 542,425 96562 Green LED Traffic Signal Conversion 122,290 122,290 96563 Traffic Signal at Dougherty Road and Willow Creek Road 213,987 19,981 194,006 96564 Traffic Signal Upgrade - Village Parkway / Amador Valley Boulevard 223,399 11,000 212,399 96565 Traffic Signal at Central Parkway and Tassajara Creek 134,350 33,300 101,050 96575 Village Parkway U-Turn Lane at Davona Drive 155,698 149,468 6,230 96580 Annual Street Overlay Program 3,787,398 1,149,398 659,500 659,500 659,500 659,500 96585 Annual Slurry Seal Program 640,947 165,187 118,940 118,940 118,940 118,940 96650 Eastern Dublin Street Right-of-Way Acquisition 4,625,015 4,515,015 110,000 96770 Alamo Canal Bike Path Project - Amador Valley Boulevard to Iron Horse Trail Connection 376,903 376,903 96772 Alamo Canal Bike Path - Iron Horse Trail to 1-580 436,946 230,579 206,367 96774 Bike Path- Alamo Creek North of Amador Valley Boulevard 265,200 159,100 106,100 96840 Scarlett Drive Iron Horse Trail Extension 6,142,688 260,000 2,650,499 1,186,365 2,045,824 96850 Dougherty Road Improvements - North of Amador Valley Boulevard to North of Houston Place 4,802,031 570,269 1,010,675 3,221,087 96852 Dougherty Road Improvements - Houston Place to 1-580 6,159,905 64,236 49,146 3,666,253 1,217,760 1,162,510 96870 Saint Patrick Way - Regional Street to Golden Gate Drive 6,786 6,786 96890 Dublin Boulevard Widening - Dougherty Road to Scarlett Drive 2,916,871 2,916,871 96920 Dublin Boulevard Improvements - Village Parkway to Sierra Court 4,930,783 1,689,963 3,240,820 96930 Dublin Boulevard Improvements - Sierra Court to Dougherty Road 1,879,725 724,567 1,155,158 N/A Dublin Boulevard - Right Turn at Village Parkway 566,593 566,593 N/A Bike Lane - Amador Valley Boulevard Stagecoach Road to Dougherty Road 241,954 241,954 New Signal at Dublin Boulevard / Inspiration Drive 194,022 194,022 TOTAL COST $ 82,344,027 $ 19,292,160 $ 25,815,020 $ 14,301,878 $11,435,498 $ 4,921,213 $ 6,578,258 Date Printed: 3/26/2003 8:51 AM H:\Budget\Goals & Objectives\Summary Capital Improvement Program Streets.xls REVISED AS OF MARCH 25, 2003 SUMMARY 2002-2007 CAPITAL IMPROVEMENT PROGRAM - STREETS FINANCING TOTALS PRIOR YEARS 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 General Fund(001) $ 3,618,908 $ 1,219,525 $ 996,819 $ 573,834 $ 279,154 $ 278,969 $ 270,607 State Gas Tax (206) 3,713,635 753,932 1,268,743 422,740 422,740 422,740 422,740 ISTEA (210) 897,423 771,044 126,379 Transp. Development Act (211) 146,107 43,337 102,770 Measure B Sales Tax (217) 6,900,537 105,537 219,000 219,000 2,686,811 1,405,365 2,264,824 State Transportation Improvements (219) 3,398,037 931,000 2,467,037 $B300 Grant (220) 69,340 69,340 Transportation Fund for Clean Air (221) 328,370 154,080 174,290 Measure B - Bike/Pedestrian (227) 377,326 88,407 106,100 182,819 CMA TIP funds (228) 400,000 400,000 Traffic Congestion Relief Fund (240) 495,000 99,000 99,000 99,000 99,000 99,000 Traffic Impact Fee Fund (300) 61,897,344 15,244,365 19,770,575 12,881,204 7,947,793 2,532,320 3,521,087 Assessment Dist (710) 102,000 102,000 TOTAL FINANCING $ 82,344,027 $ 19,292,160 $ 25,815,020 $ 14,301,878 $11,435,498 $ 4,921,213 $ 6,578,258 Date Printed: 3/26/2003 8:51 AM H:\Budget\Goals & Objectives\Summary Capital Improvement Program Streets.xls REVISED AS OF MARCH 25, 2003 SUMMARY 2002-2007 CAPITAL IMPROVEMENT PROGRAM - STREETS PROJECTS UNFUNDED DURING THE FIVE YEAR TIME FRAME UNFUNDED PORTION OF ESTIMATED FEES NET PROJECT NUMBER AND NAME COST AVAILABLE SHORTFALL 96010 Dublin Boulevard Improvements - Silvergate Drive to Hansen Drive $ 2,443,971 $ 40,491 $ 2,403,480 96400 Eastern Dublin Arterial Street Improvements 55,232,253 55,232,253 96870 Saint Patrick Way - Regional Street to Golden Gate Drive 4,908,600 1,676,808 3,231,792 N/A Dougherty Road Improvements - Amador Valley Boulevard North to City Limits 3,834,283 345,513 3,488,770 N/A Tri-Valley Transportation Development Fee Regional Transportation Projects 18,724,439 18,724,439 TOTALS $ 85,143,546 $ 2,062,812 $ 83,080,734 Date Printed: 3/26/2003 8:48 AM H:\Budget\Goals & Objectives\Summary Capital Improvement Program Streets.xls BUDGET ISSUES WORKSHEET FISCAL YEAR 2003-2004 OPERATING EXPENDITURES 1.A. The City Council adopted a level of service for each Budget Activity (i.e., Police, Park Maintenance, Library, etc.) in Fiscal Year 2002-2003 (See 2002-2003 Preliminary Budget). For the purpose of developing the Fiscal Year 2003-2004 Operating Budget, should the service levels adopted in the 2002-2003 Budget be used as the starting point (i.e., base level of service)? YES or NO (Please circle one) If you circle "NO" what service modification or new programs would you like to see added or dropped from the base level of service? ADDED SERVICES DROPPED SERVICES 1.B. To the extent the City Council's 2003-2004 Goals & Objectives require additional resources not included in the current budget, should the 2003-2004 Budget fund only High Priority Objectives? YES or NO (Please circle one) 1 ATTACHMENT 4 1 .C. COMMUNITY GROUP FUNDING REQUESTS During Fiscal Year 2002-2003, the City funded a number of community groups which are identified below. Taking into consideration the anticipated fiscal climate in Fiscal Year 2003-2004, please indicate with a check (x/) which community groups should be included in the base level or in a higher service level of the Fiscal Year 2003-2004 Budget. 2002-2003 Higher Funding Base Level Level Community Group Level* of Service of Service Alameda County Green Business Program $ 1,500 Bay Area Buy Recycled Paper Campaign $ 2,000 Childcare Links Childcare Support $15,000 Dublin Fine Arts Foundation $30,000 Drug Substance Abuse Council Dry Grad Night $3,500 Red Ribbon Week $2,500 Dublin Partnerships in Education $10,000 Emergency Services Network of Alameda $ 1,000 County Pacific Chamber Symphony $10,000 Service Corp of Retired Executives $ 400 (SCORE) Tri-Valley Business Council $25,000 Tri-Valley Community Television $54,246 Tri-Valley Convention & Visitors Bureau $63,807 Tri-Valley Interfaith Forum $5,000 (Social Services Directory)** Tri-Valley One-Stop Career Center $10,000 * The 2003-04 requested funding level may differ from 2002-03. ** The City funded a one-time request from the Tri-Valley Interfaith Forum for the printing of a directory. No request has been received for Fiscal Year 2003-04. -2- 2.A. Attachment 3 (see attached) is a summary of the capital improvements adopted as part of the City's Five-Year C.I.P. as revised. Of those projects currently identified in the Five-Year C.I.P., are there any projects which you would like to see funded in Fiscal Year 2003-2004? If so, please indicate below. 2.B. In the Fiscal Year 2002-2003 Budget (as adjusted), a total of $7,321,648.30 was allocated from the General Fund for Capital Projects. If this funding is necessary for Operating Expenditures in 2003-2004, which of the following alternatives do you prefer for funding Capital Projects in 2003-2004? Please check preferred method. 1. Defer 2003-2004 Capital Projects to a later year 2. Utilize unallocated Reserves 3. Utilize Debt Financing (will increase operating costs) 4. Other 3. CONTRACT SERVICES The following service contracts are scheduled to be evaluated at the end of Fiscal Year 2002-2003. Are you interested in Staff evaluating any aspect of the service other than the cost of providing the service for Fiscal Year 2003-2004? If so, please indicate below. If "Yes" CONTRACT Cost Only Identify (Yes/No) Other Issues A. Building & Safety 1) Linhart Petersen Powers & Assoc. 2) BJY Associates 3) 4 Leaf B. Crossing Guard Services (All City Management) C. Maintenance Services (MCE) D. Alameda County Traffic Signal & Street Lighting Contract 4. RESERVES The City's policy on use of reserves (see Attachment #5) establishes appropriate use for these funds. A. Currently funds are not reserved for future costs associated with: 1. Future major renovation of existing facilities, i.e., Shannon Center, Civic Center, etc. 2. Unfunded future Capital Projects which are not to be fully funded by Development Impact Fees. 3. Catastrophic losses (i.e., City currently does not have property damage protection due to earthquake). Should the City consider reserving funds for any of the above items (4A 1-3)? If so, please indicate which items below. B. Should use of Reserves be limited to Capital or other one-time expenditures? YES or NO (Please circle one) 5. BUDGET CALENDAR In order to finalize the budget calendar for preparation of the 2003-2004 Budget and Five- Year CIP update, it is necessary to establish a budget hearing date. In order to provide Staffwith enough time to complete the budget, Staffwould recommend that the Council establish Monday, June 23, 2003, as the Budget Hearing date. If this date is not acceptable, please indicate preferred date below. G:\CC-MTGS~2002-qtr2LAPRIL\4-3 -02g&oXatt4-budget study.doc -4- RESOLUTION NO. 80 - 93 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN ESTABLISHING A POLICY FoRMANAGEMENT AND USE OF GENERAL FUND ASSETS WHEREAs, the City COuncil of the City of DUblin recognizes the importance of General Fund Reserves; and WHEREAS, General Fund Reserves are an important asset of the City and it is prudent to have an established policy to guide their use; and WHEREAS, typically, General Fund monies are a discretionary funding source which can be appropriated as enacted through the annual budget process; and WHEREAS, interest earnings'from City General Fund Reserves can provide an independent local revenue source; and WHEREAS, it is not possible to exactly predict over time how economic conditions may impact either the interest earnings (income) or the need to utilize reserves to provide the level of municipal services deemed adequate by City Council policy; and WHEREAS, prudent management would dictate that the City have a general policy for the management of its assets, including the anticipated purpose of General Fund Reserves. NOW, THEP~EFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby establish the attached Policy for the Management and Use of General Fund Reserves (Exhibit A), attached hereto and by reference made a part hereof. BE IT FURTHER RESOLVED that City Staff are hereby authorized and directed to undertake all administrative steps necessary to implement said "Policy" and present periodic reports to the City Council. PASSED, APPROVED AND ADOPTED this 14th day of June, 1993. AYES: Councilmembers Burton, Houston, Howard, and MayorSnyder NOES: None ABSENT: Councilmember Moffatt ABSTAIN: Noise ~~~ Vi~y Clerk PSR/] ss a: Reso80. ~3e~a#~ 2: ATTACHMENT EXHIBIT A CITY OF DUBLIN GENERAL FUND RESERVE POLICY puRPOSE The purpose of this document is to formally outline the City Council policy of maintaining General Fund Reserves and designating the potential types of uses for such reserves. General Fund Reserves shall not be considered as being readily available for appropriations towards operating expenses, except as allowed for in this policy and through explicit action by the City Council. AMOUNT OF RESERVES The amount of General Fund Reserves will fluctuate over time. The City Council recognizes that there are numerous events which could place a legitimate demand on the reserves. INTEREST FJ~RNINGS All interest earnings on the General Fund Reserves shall accrue to the City's General Fund Unreserved Fund Balance, for appropriation by the City Council in accordance with local and State laws, regulations and policies. ABILITY TO ACCOMMODATE CITY NEEDS The'City Council recognizes the importance of maintaining flexibility at this time as well as in the future. Proper maintenance of the City's General Fund Reserves will accommodate a response to economic conditions affecting earnings on said funds as well as unanticipated events which require an appropriation. POTENTIAL USE OF iRESERVES Any appropriation of General Fund Reserves is subject to action by the City Council. The following events are the basis for a policy to. protect and carefully plan for any expenditure from General Fund Reserves: · City Indebtedness: Reserves may be utilized to reduce or eliminate the need for current or future debt service payments. The limitation of debt service as an annual operating expense allows for available monies to be expended for other public purposes. This shall'be considered the highest priority for the use of General Fund Reserves. · Economic Uncertainty: A prudent reserve can be used to finance .municipal services in the event that economic conditions have deteriorated to the extent that traditional revenue sources can no longer support the services. · Response to Reductions in Revenues: In recent years, State Government has taken revenues which were previously.considered to be local revenues. Development of a locally controlled revenue source can be important. · Catastrophic Loss: The City currently participates in a pooled self-insured liability and property program. A cataStrophic event may require additional apPropriations in order to attain a full recovery. · Preservation of Funds as Revenue Generator: The preservation of General Fu~nd Reserves provides revenue as a result of investment income° This is an important discretionaryincome source. · Economic Development Stimulus: A locally controlled funding source could, become one component of an investment plan, which would pr°vide a positive return to the City and a public benefit. This listing is not intended to be all inclusive; however, it is generally reflective of the types of considerations to be made when proposing the use of such funds. Proposed uses which are inconsistent with this policy should demonstrate a public benefit and a finding that it is in the best interest of the City. REVISIONS Revisions to this policy shall be approved by the City Council in the form of a Resolution. PSR/Lss a:FundEx~.age~a#12