PURPOSE:

The purpose of this report is for the City Council, Redevelopment Agency, Housing Authority, Parking Authority and Youth Endowment Services (YES) Fund Board to adopt the Fiscal Year (FY) Annual Budget for 2004-05, Citywide Fee Schedule, and Appropriations Limit.  Pursuant to the City Charter, a public hearing was properly noticed and conducted on June 8, 2004, at which time the Council received public comment, and provided direction to staff as to what should be incorporated into the Adopted Annual Budget. Council is also requested to approve the increase in the Transient Parking Tax (TPT) rate from 10% to 11%.

BACKGROUND:

In the beginning of the budget process, it was determined that each department would attempt to identify reductions and reasonable increases in fees that would not necessarily hit any quantifiable target, but instead, to be intuitive in nature.  However, in order to have some benchmark for discussion, departments were requested to come up with reductions if they had to reduce the discretionary portion of their budget by 2 percent and/or 4 percent.  For the most part, each General Fund department achieved or came close to achieving at least the 2 percent reduction through actual cuts in personnel, materials, supplies and services, and programs, as well as fee increases.  The total proposed General Fund reduction was $2,731,926, or an average of 2.97 percent of each department�s discretionary budget.  The breakdown was $1,463,448 (salaries/benefits/overtime), $696,535 (materials, supplies & services), and $571,943 (increase in fees/revenue).  Making these cuts was challenging, particularly on top of last year�s 10 percent reduction.

An initial Budget Study Session was held on April 13, 2004.  The Council was presented with the Proposed Budget during the first week of May.  Subsequently, Budget Study Sessions were held on May 11, May 25, and May 27, 2004.  Per Council�s direction at the May 27^th budget study session, it was decided to utilize the Utilities Users Tax (UUT) In-Lieu set-aside in the amount of $274,457 to close the City�s FY 2004-05 non-recurring budget gap.  The City Council was also in favor of combining the In-Lieu set-aside and Budget Stabilization Reserve Funds.  In addition, staff was directed to:  defer the funding of reserves to the close of FY 2003-04; consider increasing the TPT rate from 10 percent to 12 percent which generates an additional $330,000 per year (subsequently changed at the June 8^th Public Hearing), plus recognizing an additional $1,104,000 in UUT and In-Lieu tax reserves; and fund additional positions within the Police Department (subsequently changed at the June 8^th Public Hearing).

ANALYSIS:

The following charts show items as presented at the Public Hearing, and subsequent Council direction.

Revenue Adjustments

Appropriation Adjustments

In addition to the foregoing changes, Council directed that the Public Information Office (PIO) commence video streaming of Council meetings.  The first year�s cost is expected to be approximately $14,000 with a $2,000 recurring impact.  This cost may increase depending on the number of license fees (25 users initially would be licensed), as well as whether the decision is made to archive or replay, but the cost is nominal.  The annual $25,000 contributed by Charter Cable would be earmarked for this use.

RECOMMENDATION

Adoption of proposed City Council resolutions entitled:

(4/5 vote required)

      1.      A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK ADOPTING THE BUDGET FOR FISCAL YEAR 2004-05, AND MAKING APPROPRIATIONS FOR AMOUNTS BUDGETED.

      (4/5 vote required)

       2.      A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK DETERMINING AND ESTABLISHING THE CITY�S APPROPRIATIONS LIMIT FOR FISCAL YEAR 2004-05.

      (3/5 vote required)

       3.   A RESOLUTION OF THE COUNCIL OF THE CITY OF BURANK APPROVING THE INCREASE OF THE TRANSIENT PARKING TAX FROM 10% TO 11%.

      (3/5 vote required)

      4.   A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK ADOPTING THE BURBANK FEE RESOLUTION.

      (4/5 vote required)

      5.      A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AMENDING THE  BUDGET FOR FISCAL YEAR 2003-04 PROVIDING FOR THE PURPOSE OF MAKING APPROPRIATIONS FOR AMOUNTS DELINEATED.

Adoption of proposed Redevelopment Agency resolution entitled:

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK ADOPTING THE BUDGET FOR FISCAL YEAR 2004-2005.

      Adoption of proposed Housing Authority resolution entitled:

A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF BURBANK ADOPTING THE BUDGET FOR FISCAL YEAR 2004-2005.

      Adoption of proposed Parking Authority resolution entitled:

A RESOLUTION OF THE PARKING AUTHORITY OF THE CITY OF BURBANK ADOPTING THE BUDGET FOR FISCAL YEAR 2004-2005.

Adoption of proposed Youth Endowment Services Fund resolution entitled:

A RESOLUTION OF THE YOUTH ENDOWMENT SERVICES FUND OF THE CITY OF BURBANK ADOPTING THE BUDGET FOR FISCAL YEAR 2004-2005.

Attachments

Staff Report dated June 8, 2004 from the Public Hearing

Proposed Resolutions

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