PURPOSE

The purpose of this report is to request that the City Council, Redevelopment Agency, Housing Authority, Parking Authority and Youth Endowment Services (YES) Fund Board adopt the Fiscal Year (FY) 2006-07 Citywide Budget, Citywide Fee Schedule, and Appropriations Limit.

BACKGROUND

On February 14, 2006, staff presented the Council with the mid-year report, which advised how the City was operating six months into the year, and requested adjustments to the current Budget to address expenditures which had surfaced since its approval in June 2005.  Further, the report previewed some of the key components that were being considered in the development of the FY 2006-07 Budget.

On May 2, 2006, staff presented a preliminary overview of the Proposed FY 2006-07 budget, along with the five-year forecast.  The Proposed Budget documents were distributed on May 4, 2006 for Council�s review prior to their annual May Goal Setting Workshop held on May 6, 2006.

Budget Study Sessions were held on May 2, May 9, May 16, May 23, and May 30, 2006.  The purpose of these sessions was to give Council the opportunity to review each department�s budget, to review proposed fee increases, and to provide an opportunity for Council to ask questions and make modifications to the budget.

Notable changes made to the Proposed Budget by Council during the sessions affecting recurring expenditures included restoring two frozen police officer positions, adding two police cadet positions, a forensic specialist and a kennel attendant, citywide training, and ramping up of an enhanced Burbank Bus circulator.  The Council also agreed to set aside an additional $1 million for infrastructure maintenance and repairs.

The Annual Public Hearing for the Budget was held on June 6, 2006, and after hearing public comments and completing its final review, the following were addressed by the City Council:

Reclassifying Non-recurring (One-Time) Items and Recurring Items:

For better clarification, the proposed Library computer rental program ($2,000) was reclassified from recurring to non-recurring.  The startup cost for this program is $2,000 with a recurring impact estimated to be $500.  The other program proposed by Library Services is a popular book rental program that will have a recurring impact of $3,000 per year.  Both of these programs will be revenue offset.

Additionally, staff reclassified the Land Use Entitlement Verification item ($41,554 for FY 2006-07) from non-recurring to recurring.  Remaining program funds from FY 2005-06 will be used to offset costs associated with the program for FY 2006-07.  The annual recurring impact will be $90,000 starting in FY 2007-08.  This change more accurately depicts the recurring nature of this item.

After incorporating the above changes, the General Fund�s recurring surplus adjusts to $57,081 and the use of unrestricted reserves to balance the non-recurring deficit adjusts to $3,102,797 (see Attachment A).  All in all, the total General Fund appropriations remain the same at $132,543,894 as noted during the budget public hearing.

Green Curb Striping Fee

Per Council direction, the annual green curb striping fee will be reduced from $100 per year to $50 per year.  This change is reflected in the fee resolution.

Review of Planning & Development Fees to Recover More Costs

In addition, Council directed staff to review planning and building permit fees in an attempt to recoup more of the costs associated with providing these special services.  Staff recommends that this review take place during FY 2006-07 in preparation for development of the FY 2007-08 proposed budget.

Smoothing of Sewer and Refuse Fund Rate Increases

Council agreed to smooth both the sewer and refuse fund rate increases over 5 years starting FY 2006-07.  Staff incorporated the FY 2006-07 increases of 6% for each enterprise fund in the fee resolution.  The following is the 5 year rate smoothing plan for each of these funds.

            Sewer Fund:     6%, 6%, 6%, 5%, 5%

            Refuse Fund:    6%, 6%, 6%, 5%, 5%

Lifeline Customer Rates to Remain Flat

Council also chose to maintain Lifeline customer rates at their current level.  The fee resolution reflects Council�s directive.  These specific rates will remain unchanged.
 

The following chart provides a Citywide snapshot of the resources and appropriations for FY 2006-07:

CONCLUSION

The changes directed by Council at the Public Hearing had no impact to the overall General Fund Appropriations for FY 2006-07.  Total General Fund resources are projected to be $132,600,975 and total appropriations are expected to be $132,543,984.  As always, staff will continue to provide Council with periodic financial reports and updates throughout the fiscal year.

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 2006-07, 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 2006-07.

(3/5 vote required for Resolutions 3 through 7)

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

4.   Adoption of proposed Redevelopment Agency resolution entitled:

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK ADOPTING THE BUDGET FOR FISCAL YEAR 2006-2007.

5.   Adoption of proposed Housing Authority resolution entitled:                                                                                                                                 

A RESOLUTION OF THE HOUSING AUTHORITY OF THE CITY OF BURBANK ADOPTING THE BUDGET FOR FISCAL YEAR 2006-2007.

6.   Adoption of proposed Parking Authority resolution entitled:

A RESOLUTION OF THE PARKING AUTHORITY OF THE CITY OF BURBANK ADOPTING THE BUDGET FOR FISCAL YEAR 2006-2007.

7.   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 2006-2007.

Attachments

Attachment A - Updated Budget Matrix and 5-Year Financial Forecast

Attachment B - Updated Summary of Fee Schedule Changes

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