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HomeMy WebLinkAbout2000-05-09 City Council (5)BUDGET ’00-’01 City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL ATTENTION: FROM: DATE: SUBJECT: FINANCE COMMITTEE CITY MANAGER DEPARTMENT:ADMINISTRATIVE SERVICES MAY 9, 2000’CMR:249:00 RESPONSES TO FINANCE COMMITTEE QUESTIONS DURING REVIEW OF THE PROPOSED 2000-01 BUDGET AND RECOMMENDED CHANGES TO THE PROPOSED 2000- 01 BUDGET RECOMMENDATION Staff recommends that the Finance Committee approve the Proposed Budget, detailed in Attachments A through H. changes to the 2000-01 BACKGROUND This report responds to direction or questions raised by the Finance Committee during its review of the 2000-01 Proposed Budget. It also contains the changes made by the Finance Committee to the Proposed Budget and a few changes proposed by staff for items that have been identified since the Proposed Budget document was printed. DISCUSSION Finance Committee Questions and Requests for Information The Committee directed staff to address the Infrastructure Master Plan legal needs and gave conceptual go-ahead for collaborative legal budgeting. In addition, the City Manager and City Attorney should return to the Finance Committee to discuss the status of the code enforcement program. Staffwill return with status and/or requests during the 2000-01 fiscal year. 2.The Finance Committee directed the City Auditor to provide the Committee with a briefing ~at approximately midyear 2000-01 on how recoveries may be derived CMR:249:00 Page 1 of 4 o ~from property tax audits. The report should include exactly how this can be achieved and the amount of recovery that can be expected. The briefing should give theCommittee an idea of why the Auditor believes there is a potential recovery from property taxes and what sort of resources it would take to pursue such an audit. Finally, the City Auditor and the City Manager should work together to discuss the function of the City Auditor’s Office and identify the best way the two offices can serve the City. This should be done outside the budget process and prior to the Auditor’s presentation of his work plan in July. Staff will return with status and information requested during the 2000-01 fiscal year. What are the projected increases in delinquent revenues as a result of implementing the collections management system? The $25,000 request for Revenue Collections is proposed to support program improvements to the cash receipting and collection process. This funding will be utilized to hire a temporary cashier, which will free up regular staff to concentrate on two activities. The first will be to develop detailed process maps of all facets of the revenue collection operation to help streamline the operation. The second activity will be to allocate existing resources currently dedicated to cashiering activities toward collection management, targeting paramedic collections. It is estimated that additional focus generated by the two actions will result in approximately $40,000 in increased paramedic collections. 4. How many employees have younger children that might need childcare? There are approximately 315 employees with children in the age range of infant. through age 12. These employees have approximately 480 children who are in this age range, thus requiring childcare. 5. Staff should return to the Finance Committee prior to June 19, 2000. with a recommendation on the use of the $200,000 allocated to Library Services. Staff will return with a recommendation at the Council adoption of the 2000-01 Proposed Budget. 6.Staff shall provide information prior to wrap-up on Urban Ministry with a recommendation on how the City can best serve the need of the community. A separate report is included in the Council packet, which provides information on Urban Ministry and recommendations to best serve the need. CMR:249:00 Page 2 of 4 7.What is the breakdown of costs for the IT Strategic Plan, i.e. Phase One vs. Phase Two, ongoing vs. one-time costs? 1999’00 Phase I approved ongoing costs (net to General Fund): FTE*$310,109 Non-salary 8,664 Total $318,773 2000-01 Phase II proposed costs (net to General Fund): Ongoing: FTE $284,590 Non-salary 177,680 One-time:837,594 Total:$1,299,864 (CIP) Total Ongoing Costs $781,043 (for 1999-00 and 2000-01 excluding one-time items) *: *This total excludes $200,000, which was a placeholder in both years of the 1999-01 Adopted Budget. Updated General Fund and Utility Funds Summaries Attachment A reflects the summary of modifications to the City Manager’s General Fund Proposed Budget. Attachment B includes changes to the General Fund, Enterprise Funds, and Capital Improvement Program (CIP) budgets requested by the Finance Committee and those recommended by staff. These changes are for items discussed during the Finance Committee budget hearing process or for items inadvertently omitted from the budget document. Attachments C and E include updated General Fund and Utilities Funds Summaries, which have been updated to include the changes in Attachment B. RESOURCE IMPACT The impact of the changes to the Proposed 2000-01 Budget is provided at the end of each fund (Attachment B), and will be included in the staff report the full Council receives for. Budget adoption. The impact on the General Fund Budget Stabilization Reserve as indicated in Attachment B is a decrease of $652,528 in 2000-01. The General Fund and Utilities Funds updatedreserve balances are reflected in Attachments D and G respectively. POLICY IMPLICATIONS These recommendations are consistent with existing City policies. CMR:249:00 Page 3 of 4 ENVIRONMENTAL REVIEW There is no environmental assessment required for this report. ATTACHMENTS Attachment A Attachment B Attachment C Attachment D Attachment E Attachment F Attachment G Attachment H Summary of General Fund Proposed Budget Modifications Changes to the 2000-01 Proposed Budget (General Fund) Changes to the 2000-01 Proposed Budget (Utility Funds) 2000-01 General Fund Summary 2000-01 General Fund Reserve 2000-01 Utility Fund Summaries 2000-01 Utility Fund Proposed Budget Compared to Adopted-in- Concept 2000-01 Utility Fund Reserves Various CIP Descriptions PREPARED BY: Lalo Perez~ Budget Manager DEPARTMENT HEAD: CARL TS / Director, Administrative Services CITY MANAGER APPROVAL: EM] HARRISON Assistant City Manager CMR:249:00 Page 4 of 4 Attachment A , Summary of Finance Committee Actions Modifications to the City Manager’s General Fund Proposed Budget 1 2. 3. Description "Consensus" enhancements to Library Staffing Additional funding for Wildlife Rescue Additional funding for HSRAP Agencies a La Comida b Youth Community Services c American Red Cross 4 5 Savings from using action minutes for Boards and Commissions Other General Fund Adjustments a Double funded IT Disaster Recovery Project b Funding for Homeless Meal Program c Funding for IMP Senior Project Manager (PW) d Funding for Sandbagging Machine e Lighting enhancement CIP f Interest Income Reduction (PAMF/SOFA) Total Modifications 6 Less a Operating Transfers In from Infrastructure Reserve b Net increase in Equity Transfer Amount $(200,000) (-) (24,541) (-) Net Modifications (5,307)(-) (12,000)(-) (12,000)(-) 43,000 (+) 9o,ooo (+) (32,500)(-) (125,300)(-) (14,000)(-) (14,000)(-) (500,O00)(-) (806,648) $125,300 (+) 28,820 (+) S (652,528) Impact on Reserves + adds to reserves (expenditures decrease or revenue increase) reduces reserves (expenditures increase or revenue decrease) Adiusted Reserve Excess in 2000-01 Proposed Budget Document Less Modifications Updated Excess to Reserves BRS Impact 2000-01 Projected BSR Beginning Balance Excess To BSR 2000-01 Projected Ending Balance $1,999,000 (652,528) 1,346,472 13,386,000 1,346,472 $ 14,732,472 o oo o o ATTACHMENT H PROJECT DESCRIPTION This project would allow for the purchase of.a bagging machine that will fill sandbags during winter months and compost bags during summer months. PROJECT JUSTIFICATION Currently, sandbags and compost bags are filled by hand. In response to resident concerns and requests, the purchase of this machine will allow the efficient filling of sandbags during winter storms. This equipment can also be used at the landfill to increase efficiency of filling compost bags. FUTURE FINANCIAL REQUIREMENTS FISCAL YEAR PY Budget 2000-01 2001-02 2002-03 2003 -04 2004-05 AMOUNT $28,000 COMPONENTS Sources of Funding: General Fund with $14,000 reimbursement from the Refuse Fund. IMPACT AND SUPPORT ANALYSIS ¯Environmental: ¯Design Elements: ¯Operating: ¯Telecommunications: Ca~gorically exemptunder CEQA. None. Annualreplacementandmain~nance charges(S1,000). None. COMPREHENSIVE PLAN The Comprehensive Plan contains no policies or programs directly related to this project. PROJECT DESCRIPTION This project funds a trial project which connects approximately 69 homes in the Community Center Neighborhood to a fiber optic network providing data communications services. The trial project will use fiber optic cables and switched ethemet technology to move data from individual residences to an Internet Service Provider. This project will also fund additional fiber optic connections to customers that may want to connect to the system later. PROJECT JUSTIFICATION The Community Center Neighborhood was selected by City Council for a trial fiber optic to the home project on April 5, 1999. The purpose of this project is to demonstrate the feasibility and costs of deploying an ethemet net- work in a residential environment using fiber optic cable. The knowledge gained from the trial project would then be used to determine the best alternative for providing high speed data services to the entire community. This project was initially funded at $380,000 for the construction of the initial fiber optic network. Once the intial construction is complete, additional customers may want to be added to the network. The current plan envisions adding up to 15 customers per year for the first three years of operation. FUTURE FINANCIAL REQUIREMENTS FISCAL YEAR PY Budget 2000-01 2001-02 2002-03 2003 -04 2004-05 AMOUNT $380,000 $25,000 $25,000 $25,000 COMPONENTS Connect 15 new customers. Connect 15 new customers. Connect 15 new customers. Sources of Funding: Electric Fund, with 100 percent reimbursement by customers. IMPACT AND SUPPORT ANALYSIS Environmental: ¯Design Elements: ¯Operating: This project has been determined to be categorically exempt under Section 15301B of CEQA. Screening of equipment will be included in the design. CIP Design Consultant will be consulted when new padmounted ground equipment is located. Additional infrastructure will require additional operations and maintenance funding for operations, maintenance, and engineering services. ¯Telecommunications: None. COMPREHENSIVE PLAN This project furthers Program L-80 and L-81 of the Comprehensive Plan. PROJECT DESCRIPTION This project will improve night time lighting levels at .community centers, libraries, parking lots, pathways and other buildings and facilities within the Community Services Department. Lighting systems will be evaluated, designs completed, and improved lighting installed. PROJECT JUSTIFICATION Most facilities were designed decades ago with minimum lighting or no lighting provisions. Existing lights provide illumination only in limited sections of facilities. Landscape and tree growth have encroached on light poles and further reduced light output. After dark programs at community centers, facilities, and parks have become more common over the years and have resulted in safety concerns. FUTURE FINANCIAL REQUIREMENTS FISCAL YEAR PY Budget 2000-01 2001-02 2002-03 2003-04 2004-05 AMOUNT $34,000 $271,000 $300,000 TBD TBD COMPONENTS Design for Lucie Stem, Art Center, and main Library projects. Lucie Stem parking lot and pathways; Art Center parking lot; Main Library parking lot, including entries and patio areas; and design for Cubberley parking lot project. Cubberley parking lots and walkways. Source of Funding: General Fund. IMPACT AND SUPPORT ANALYSIS ¯Environmental: ¯Design Elements: ¯Operating: ¯Telecommunications: None. Designs will require several different types and styles compatible with specific envi- ronment and architectural style of the facility or surrounding neighborhood. Increased inventory, electrical, and maintenance costs. None. COMPREHENSIVE PLAN This project furthers Policies L-49 and C-19 of the Comprehensive Plan. PROJECT DESCRIPTION The Utilities Customer Information System (CIS) is a comprehensive utilities information and billing software package that was developed and implemented by Systems and Computer Technology Corporation (SCT). Phase I of the project was completed in 1999-00 with the implementation of the CIS. Phase I included the acquisition and installation of a new CIS. Phase II funding was provided in 1999-00, and addresses changes and enhancements to the basic program to provide new services, including historical consumption graphs, the capability for automatic payments through Electronic Funds Transfer, green pricing, long term customer contracts, credit card payments, and utility sales and billing outside Palo Alto. This project requests funding for Phase III, which will provide the infrastru.cture for customer account access and electronic bill payment through the Intemet and the telephone. Included also is funding to investigate and identify network, database, and Internet security vulnerabilities and to take action to reduce the City’s vulnerability and ensure customers secure connections. In addition, this funding ¯ will provide for the purchase of a new HP-9000 network server. PROJECT JUSTIFICATION The Utilities Department relies heavily on CIS for the timely and accurate billing of customer accounts. It is also an important management information system for responding to customer inquiries as well as performing sales revenue forecasting, rate analysis, credit management, transformer replacement studies, and maintaining meter inventory and historical meter reading records. Further, utilities deregulation requires automation and greater access to information. The City’s utilities must remain competitive with the public agencies and private enterprises that are expected to compete in the state. Currently, Palo Alto utilities customers have the ability to pay their bill in person or by mail. This funding is requested to expand access to the Intemet or by phone, providing access 24 hours a day, seven days a week. The HP-9000 network server will provide increased functionality and performance for end user reporting and inquiry. This equipment can also be used as a back-up system increasing reliability of the CIS system. FUTURE FINANCIAL REQUIREMENTS FISCAL YEAR PY Budget 2000-01 2001-02 2002-03 2003-04 2004-05 AMOUNT Ongoing $700,000 $200,000 COMPONENTS Hardware, software, and consulting services. To add billing capability for additional utilities (specifically, fiber optic services). P Sources of Funding: The following table provides a complete financial summary of this project by Fund: 2000-01 2001-02 ELECTRIC $406,000 $116,000 GAS $105,000 $30,000 REFUSE $70,000 $20,000 STORM. DRAINAGE $14,000 $4,000 WASTE WATER COLL. $35,000 $10,000 WATER $70,000 $20,000 TOTAL $700,000 $200,000 IMPACT AND SUPPORT ANALYSIS. ¯Environmental: ¯Design Elements: ¯Operating: ¯Telecommunications: Not a project under CEQA. None. Ongoing maintenance for the new software modules will be funded by the operating budget of the Centralized Application Support function. None. COMPREHENSIVE PLAN The Comprehensive Plan contains no policies or procedures directly related to this project.