BURBANK YOUTH ENDOWMENT

SERVICES FUND

Tuesday, June 7, 2005

COUNCIL CHAMBER - 275 EAST OLIVE AVENUE

 

This facility is disabled accessible.  Auxiliary aids and services are available for individuals with speech, vision or hearing impairments (48 hour notice is required).  Please contact the ADA Coordinator at (818) 238-5021 voice or (818) 238-5035 TDD with questions or concerns.

 

 

6:30 P.M.

 

 

INVOCATION:          Reverend Ron White, American Lutheran Church.

The Courts have concluded that sectarian prayer as part of City Council meetings is not permitted under the Constitution.

FLAG SALUTE:

 

ROLL CALL:

 

 

JOINT PUBLIC HEARING WITH THE CITY COUNCIL, REDEVELOPMENT AGENCY, HOUSING AUTHORITY AND PARKING AUTHORITY:

 

1.      PROPOSED FISCAL YEAR 2005-06 ANNUAL BUDGET, CITYWIDE FEE SCHEDULE AND APPROPRIATIONS LIMIT:

 

The purpose of this report is to present the Proposed Fiscal Year (FY) 2005-06 Annual Budget, Citywide Fee Schedule and Appropriations Limit to the Council, Redevelopment Agency, Housing Authority, Parking Authority and Youth Endowment Services Fund Board for public hearing.  The adoption of the FY 2005-06 Budget will be considered by the Council at the June 14, 2005 Council meeting.

 

On February 15, 2005, staff presented the mid-year report, which not only advised how the City was operating six months into the year, but also requested adjustments to the current budget to address expenditures which had surfaced since its approval in June 2004.  Further, the report previewed some of the key components that were being considered in the development of the FY 2005-06 Budget.

 

On April 19, 2005, staff presented a very preliminary overview of the Proposed FY 2005-06 Budget, along with the Five-Year Forecast.  The Proposed Budget documents were distributed the first week of May for the Council�s review prior to their annual May Goal Setting Workshop held on May 7, 2005.

 

A more finalized overview of the Proposed FY 2005-06 Budget was presented to the Council at the first Budget Study Session held on May 10, 2005.  Additional Budget Study Sessions were held on May 17 and May 24, 2005.  The purpose of these sessions was to give the Council the opportunity to review each department�s budget, to provide an opportunity for questions and to make modifications to the budget.

 

Notable changes made to the budget between the April 19 and May 10, 2005 sessions included adjusting overtime for both the Police and Fire Departments, restoring the outreach probation officer position (per Council direction) and updating the Pension Obligation Bond principal and interest payments for the Fire and Police Departments.  Another item requested by the Council that was incorporated was the discontinuation of the $475,000 General Fund transfer to the City Centre Redevelopment Project Area.  The result of these changes increased the General Fund appropriations by a net $390,651.

 

Additional changes (all are non-recurring) that the Council requested at the May 24, 2005 meeting included:

 

Item

Additional Appropriation

1. Establishing a reserve interest-bearing account for the PerformArts Grant

 

$100,000

2. Code enforcement pilot project funding

$100,000

3. Additional sidewalk repair funding to increase annual amount to the originally planned $500,000

 

$100,000

TOTAL ADDITIONAL APPROPRIATION

$300,000

 

The Council directed that the Utility Users Tax (UUT) In-Lieu Set Aside Account be used to cover this additional appropriation of $300,000.  In addition, the Council directed staff take $35,000 from the current soccer field project and redirect it for architectural services to refurbish both track/stadium facilities at Burbank and Burroughs High Schools (no additional fiscal impact).  The Council was also in concurrence with staff�s plan to expedite the Buena Vista Street improvement plan (at no additional cost).

 

GENERAL FUND�S FINANCIAL STATUS:

A public hearing was held on May 24, 2005, wherein the Council voted 4-1 to raise the Transient Parking Tax (TPT) from 11 percent to 12 percent.  Therefore, the revenue estimate for FY 2005-06 has been adjusted upwards by $230,000 from the previous estimate presented on May 10, 2005.

 

The following summarizes the projected results from operations for FY 2004-05 and the Proposed Budget for FY 2005-06:

 

RECURRING GENERAL FUND BALANCE

 

Anticipated Recurring Revenues

$122,724,878

Less UUT In-Lieu Set-Aside

(2,059,000)

Available Recurring Revenues

120,665,878

 

 

 

Less:

 

Recurring Appropriations (including recurring approved mid-year requests)

119,266,119

Potential Impact of Bargaining Units Agreements

3,858,944

Projected Frozen Position Savings

(2,110,712)

Recurring Deficit

($348,471)

 

 

NON-RECURRING GENERAL FUND BALANCE

 

Projected Undesignated Fund Balance � July 1, 2005

$   2,616,861

BAF Revenue for Capital Purchases

53,000

Use of UUT In-Lieu Set Aside

300,000

Available Non-Recurring Sources

2,969,861

Required Increases in Reserves

(2,153,000)

Projected One-Time Appropriations

(793,353)

Non-Recurring Balance, June 30, 2006

$        23,508

 

In order to close the recurring deficit of $348,471, staff recommends using the City�s Public Employees� Retirement System (PERS) Stabilization Fund to bring the balance to zero.

 

The following chart shows the Citywide revenue and appropriations (recurring and non-recurring):

 

 
PROPOSED CITYWIDE FEE SCHEDULE:

The primary purpose of the Citywide Fee Schedule is to provide a one-stop listing of all City fees, charges and rates.  The Fee Schedule is reviewed and updated annually as part of the budget process in an effort to document all of the fees that have been revised or changed during the fiscal year.

 

The following are the more significant fee changes being proposed for FY 2005-06:  The water rate increased 4.8 percent (year four of a five-year smooth ramp-up); the sewer fee includes an overall seven percent rate increase (proposed three-year smooth rate, then a 4.5 percent increase for the fourth year); for refuse, FY 2005-06 is year one of a five-year smooth rate of three percent; group picnic fees� increases range from $10 to $20 and $200 (for a five-hour period) for non-resident fees for Gross Park; License and Code Services and Planning Fees were raised from 2.8 to 15.13 percent (or $17 to $170), Developmental Review Application fees were increased 14.55 percent (or $80); Planned Development, Variance and Administration Use fees were increased from 2.8 percent to 15 percent (or $17 to $650); electrical permits are proposed to increase on average seven percent (or $.50 to $9); and, the public lot monthly parking permit fee will increase from $28 to $34 (final year of increases).  All fees are still comparable or below comparison cities.

 

STATE BUDGET - MAY REVISION 2005:

The State of California�s FY 2005-06 Budget presented in January 2005, faced an operating deficit of $8.6 billion.  The FY 2005-06 Revised Budget, released May 13, 2005 (May Revision) shows a slightly brighter picture.  The revenues are projected to increase $4.2 billion (including prior year increases) from improved economic activity ($4 billion) and a modest increase ($180 million) in the net gain related to the State�s amnesty program.

 

Three items in the May Revision that impact the City are the restoration of Proposition 42 Transportation funding to the Gas Tax Fund (Fund 125), earlier-than-expected repayment of State mandated program costs (General Fund), and the impact of the Vehicle License Fee (VLF) early repayment (since the City opted to participate in California Statewide Communities Development Authority's [the "Authority"] VLF Gap Loan Program).

 

GANN INITIATIVE APPROPRIATION LIMIT:

The City�s FY 2005-06 appropriation limit is estimated to be $130,212,383.  The actual amount of the appropriations contained in the budget that is subject to the limit is $95,157,444.  The difference between the City�s appropriation limit and the amount subject to it is $35,054,939.  As a result, the City has a significant gap between its legal limit and the actual appropriations subject to the limit.

 

It is expected that the General Fund will have a recurring deficit of $348,471, and an Undesignated Fund Balance of only $23,508.  As presented to the Council on April 19 and May 10, 2005, staff recommends using the PERS Stabilization Fund to close the recurring deficit.

 

For FY 2005-06, the estimated General Fund recurring revenues are $122,724,878, and recurring appropriations are expected to be $119,266,119.

 

Recommendation:

 

Staff recommends that the Council, Redevelopment Agency Board, Housing Authority, Parking Authority and Youth Endowment Services Fund Board conduct the public hearing on the Proposed Fiscal Year 2005-06 Annual Budget, Citywide Fee Schedule and Appropriations Limit. Staff will incorporate any direction into the budget resolutions that will be presented on June 14, 2005 for final adoption.

 

 

RECESS to continue the City Council meeting.

 

 

ADJOURNMENT

 

 


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