HomeMy WebLinkAbout- Item 1 - FY 2015/16 Budget Study Session - 5/12/2015CITYCOUNCIL STUDYSESSION REPORT
MEETING DATE: May 12, 2015
ITEM NUMBER: 1
SUBJECT: FISCAL YEAR 2015-16 BUDGET STUDY SESSION
DATE: May 8, 2015
FROM: FINANCE DEPARTMENT
PRESENTATION BY: STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR
FOR FURTHER INFORMATION CONTACT
RECOMMENDED ACTIONS:
STEPHEN DUNIVENT, INTERIM FINANCE DIRECTOR,
(714) 754-5243
Provide comments and direction on the FY 15-16 Preliminary Operating and Capital Budget,
Budget Addendum and Fire Department proposed fees.
BACKGROUND:
The FY 15-16 budget development process officially started on December 11, 2014 with a
kickoff meeting including the CEO, Finance Department Staff and department
representatives. Since that meeting, departments prepared their budget requests and
submitted them to the Finance Department for review. Finance Staff prepared revenue
projections and forecasts, reviewed departmental requests and met with the departments to
discuss their budget requests. These meetings were followed by joint budget hearings
involving the CEO, Finance Department and department representatives. Out of these
discussions and further meetings, a Preliminary FY 15-16 Budget was developed.
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As a quick overview, here is the preliminary budget for FY 15-16 for all funds compared
to the FY 14-15 adopted budget:
Table 1
Approprations/
All Funds
Operating Budget
Transfers Out
Capital Budget
Tota I
ADOPTED BUDGET - ALL FUNDS
Adopted
GV 1 A-1 q
$ 114,958,461
5,517,067
19,421,001
Preliminary Increase (Decrease)
FY 15-16 Amount Percent
$ 118,083,807 $ 3,125,346
7,452,140 $ 1,935,073
22,299,929 $ 2,878,928
$ 139,896,529 $ 147,835,876 $ 7,939,347
2.7%
35.1%
14.8%
5.7%
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The General Fund provides 89.2% of the total operating budget for all governmental
funds. The total preliminary General Fund budget is $113 million, an increase of $3.5
million or 3.2% from the current year adopted budget.
The attached City Chief Executive Officer's Budget Message provides highlights of the
financial and budget policies and how they relate to this preliminary budget, a description of
the budget preparation and balancing process, overview charts of the City-wide budget and
the General Fund, a brief financial outlook, budget highlights, a recap of reserves and an
overview of capital improvement projects.
The attached FY 2015-16 Operating & Capital Budget in Brief includes additional summary
charts, analysis of changes in the primary funding sources and expense categories, a brief
discussion of internal service funds, a review of capital improvement project expense trends
over the past ten years and a recap of use of fund balances in certain special funds.
The attached Summary of Requested Capital Improvement Projects displays the 113
requested projects by category and funding source. Highlighted rows indicate the
recommended projects.
The attached Budget Addendum displays recommended changes to both the current year
budget (due to updated sales tax estimates and to document the changes associated with
the Council approved community meeting room/break room/outdoor meeting space project)
and FY 15-16 Preliminary Budget changes that were approved after the budget book printing
deadline.
Lastly, new Fire Department service fees are recommended for discussion. These consist
of the following:
• Residential apartment inspection fee for buildings with 3 or more units. This would
provide funding related to life safety issues, inspection of converted garages, code
compliance and checking for illegal units.
• Business inspection fee based on square footage and inspection time required. The
fee is related to fire & life safety issues. Restaurant inspections would be annual
while other businesses could be every three years.
• Adopting a policy to seek up to $500 per incident from the property owner's insurance
company. This would be a Fire Department cost recovery fee for assistance to the
property owner and be part of the initial phase of the department's community risk
reduction plan. There would be no cost or penalty to homeowner.
• Fire Station 4 Training Center usage fees charged to other fire departments or outside
users. The funds generated from these fees would help cover the costs to re -open
and maintain the center. The proceeds would be allocated 50% to the Fire
Department and 50% to the City general fund.
Staff will provide additional information on these fees during the study session.
The next steps in the FY 15-16 budget process include the following events:
• May 21, 2015 Community Meeting
• June 15, 2015 Council budget hearing and adoption.
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ALTERNATIVES CONSIDERED:
Staff considered many options for the use of funds including requested budget increases
and capital improvement projects. Options were evaluated and assigned priorities. Some
one-time items were approved for accomplishment in the current fiscal year. Recommended
budget amounts are balanced to estimated available resources.
CONCLUSION:
As presented, this represents a balanced budget for the coming fiscal year without the
use of General Fund reserves and provides the highest level of service to the community
within existing financial resources. Council consideration and public input regarding the
FY 15-16 Preliminary Operating and Capital Budget will provide valuable information as
the City prepares for budget hearings and adoption in June.
Stephen Dunivent
Interim Finance Director
Attachments:
Thomas R. Hatch
City CEO
1. City Chief Executive Officer's Budget Message
2. FY 2015-16 Operating & Capital Budget in Brief
3. Summary of Requested Capital Improvement Projects
4. Budget Addendum
3
CITY OF COSTA MESA, CALIFORNIA
PRELIMINARY OPERATING AND
CAPITAL IMPROVEMENT BUDGET
FISCAL YEAR 2015-2016
CITY COUNCIL
Stephen M. Mensinger
Mayor
James M. Righeimer
Mayor Pro Tem
Katrina Foley Sandra L. Genis
Council Member Council Member
Thomas R. Hatch
Chief Executive Officer
Prepared by the Finance Department
Stephen G. Dunivent
Interim Finance Director
In collaboration with
Ernesto Munoz
Public Services Director
Gary Monahan
Council Member