HomeMy WebLinkAbout- - Adoption of FY 2010-11 Budget - 6/15/2010CITY COUNCIL AGENDA REPORT
MEETING DATE: JUNE 15, 2010 ITEM NUMBER: 1
SUBJECT: ADOPTION OF THE FISCAL YEAR 2010-2011 BUDGET
DATE: JUNE 11, 2010
FROM: FINANCE DEPARTMENT, ADMINISTRATION DIVISION
PRESENTATION BY: BOBBY YOUNG, BUDGET AND RESEARCH OFFICER
FOR FURTHER INFORMATION CONTACT: BOBBY YOUNG AT (714) 754-5241
RECOMMENDED ACTION:
1) Adopt the attached Resolution Number 10-_ approving the Fiscal Year 2010-2011 Operating
and Capital Improvement Budget.
2) Provide direction on the outstanding items as listed herein.
BACKGROUND:
Staff uses the Study Session to present to the City Council in more detail, the Proposed Operating &
Capital Improvement Budget for Fiscal Year 2010-2011. The proposed budget is the City's
preliminary spending plan for Fiscal Year 2010-2011.
ANALYSIS:
The total proposed appropriations for all funds are $108,245,490. Compared to the Fiscal Year
2009-2010 adopted budget, the Fiscal Year 2010-2011 proposed budget represents a decrease of
$10.0 million or (8.47%), as shown in the following table. The proposed budget includes the
operating and capital improvement budgets for the following funds: General Fund, Special
Revenue, Capital Projects, and Internal Service Funds.
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PROPOSED BUDGET - ALL FUNDS
Appropriations/
Proposed
Adopted
Increase (Decrease)
Percent
All Funds
FY 10-11
FY 09-10
Amount
Percent
of Total
Operating
$102,350,83
$111,853,76
Budget
8
6
($9,502,928)
(8.50%)
94.55%
Transfers Out
2,076,064
1,543,000
533,064
34.55%
1.92%
(21.49%
Capital Budget
3,818,588
4,864,020
(1,045,432)
)
3.53%
$108,245,49
$118,260,78
($10,015,296
100.00
Total
0
6
)
(8.47%)
%
1
The following table is a summary of the Fiscal Year 2010-2011 total appropriations by fund type
for all funds, compared with the adopted budget for the current year:
Proposed Adopted Increase (Decrease) Percent
Fund Tvae FY 10-11 FY 09-10 Amount Percent of Total
General Fund*
Special Revenue Funds*
Capital Projects Funds*
Internal Service Funds*
Total
* Includes transfers out
93,134,519
6,227,554
3,317,069
5,466,348
$108,145,49
0
$102,408,21
7
5,921,151
3,765,753
6,165,665
$118,260,78
6
($9,273,698)
(9.06%)
86.12%
306,403
5.17%
5.76%
Transfers In
(11.91%
Use of Fund Balances
(448,684)
)
3.07%
Equipment Replacement Fund
(22.09%
Total use of fund balances
(699,317)
)
5.05%
($10,115,296
(8.51%)
100.00%
The following table illustrates the total estimated revenue, total appropriations, and total fund
balances used for all funds. The negative $1,676,727 "use of fund balances" listed under the "All
Other Funds" column represents the net effect of both the use of fund balance by some funds and
total resources exceeding total appropriations by other funds.
Proposed Operating Budget 93,134,519
Proposed Capital Budget -
Transfers Out 100,000
Total Appropriations $ 93,234,519
All Other
Funds
$13,234,244
100,000
1,676,727
$15,010,971
9,216,319
3,818,588
1,976,064
$15,010,971
Total
$96,421,894
2,076,064
9,747,532
$108,245,490
102,350,838
3,818,588
2,076,064
$108,245,490
The Fiscal Year 2009-2010 proposed budget includes the use of fund balance by some funds
including the General Fund. The estimated amounts of fund balances to be used by those funds are
listed in the following table:
ESTIMATED FUND BALANCES TO BE USED
Fund
General
Description
Fund
Estimated Revenue
$ 83,187,650
Transfers In
1,976,064
Use of Fund Balances
8,070,805
Total Resources
$ 93,234,519
Proposed Operating Budget 93,134,519
Proposed Capital Budget -
Transfers Out 100,000
Total Appropriations $ 93,234,519
All Other
Funds
$13,234,244
100,000
1,676,727
$15,010,971
9,216,319
3,818,588
1,976,064
$15,010,971
Total
$96,421,894
2,076,064
9,747,532
$108,245,490
102,350,838
3,818,588
2,076,064
$108,245,490
The Fiscal Year 2009-2010 proposed budget includes the use of fund balance by some funds
including the General Fund. The estimated amounts of fund balances to be used by those funds are
listed in the following table:
ESTIMATED FUND BALANCES TO BE USED
Fund
Amount
General Fund
$ 8,070,805
Drainage Fees Fund
180,800
Narcotics Forfeiture Fund
129,000
Capital Improvement Fund
1,626,064
Measure "M" Turnback Fund
150,000
Equipment Replacement Fund
2,105,163
Total use of fund balances
$ 12,261,832
E
It should be noted, the Proposed General Fund use of fund balance of $8,070,805 is merely a place
holder as the City continues to analyze other options for reducing the use of fund balance. These
other options are a combination of. the meet and confer process with employee union groups,
increase in revenue sources, and possible further reduction in appropriations from what is presented
above. It is the Citv's intend to reduce the use of fund balance to the lowest amount possible
during the 2010-11 fiscal year.
ALTERNATIVES CONSIDERED
The State Government Code requires the annual budget to be adopted prior to the beginning of the
fiscal year, which is July 1. Therefore, no alternatives were considered.
FISCAL REVIEW
The proposed budget, as presented, provides for adequate resources to fund the total proposed
appropriations for all funds except the General Fund. Currently, the proposed budget estimates a
use of fund balance in the amount of $8.1 million. Through the combination of. the meet and
confer process, increase in revenue sources and possible further reduction in appropriations from
what is proposed above, the City intents to reduce the use of fund balance in the General Fund to
the lowest amount possible during the 2010-11 fiscal year.
LEGAL REVIEW
The City Attorney has reviewed and approved the attached resolution as to form.
CONCLUSION:
The proposed budget continues to provide an outstanding level of service and is balanced within
existing resources including the use of fund balance for some funds. Staff is available to answer any
questions you may have about the Fiscal Year 2010-2011 proposed budget at your convenience.
BOBBY YOUNG
Budget & Research Officer
Attachment 1: Resolution Adopting the Budget for FY 10-11
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