The URL can be used to link to this page

Home My WebLink About0394.095• '. TO: ATTENTION: FROM: . -"",.;;~ ~.""".' ..~ . ." ."-;>.-"/: '.". o City of Palo Alto City Manager's Report HONORABLE CITY COUNCIL FINANCE COMMITTEE CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES AGENDA DATE: SEPTEMBER n, 1995 CMR:394:'IS SUBJECl': REQUEST REVIEW OF PRELIMINARY STAFF RECOMMENDATION FOR 1996-98 Bl.TDGET PREPARATION GUIDELINES This report proposes guidelines lOr preparation of the 199&-98 two-year operating and capital budgets. \\ , ' , RECOMMENDATIONS ·~latrrecoounends that the Finance Committee m'iew staff's recommendatioos lOr the 1996- 9l> Bud~ Guidelines and bward them with any cllanges 10 the City Cooncil for approval. POIIICY IMPJ.JCATIONS Gwddines adopted IDe preparation of the bodget .book! reflect the Council'. priorities, allov.ing stafflo csrry those 1hrougb in constructing the bodget EXECUfIVE SUMMARY Staffhas prepared I preliminary 1996-97 and 1997·98 General Fund Summary (Attachment A) using the most recenI revenue infonnatioo and assuming that DOll-salary expenditures will reoWn unchanged. wbile salary expense will grow by ooly the Coosu..'tleI Price Index in both years. Preliminary estimates show thal the General Fund shoUld be essentially balanced for boIhyears. . '-. Q The fo!Jowing guidelin<:s are propcsed for preparation of the 1995-98 two-year budget: General Guidelines • The proposed budget will be • two-year budget; Council will adopt tile first year and approve tIie second year in concept. • If revenues pemilt, salade. and benefits ",ill be establlshed for the 1996-9& budget with the goa! of keeping the City • eOOlpetitive employer with surroumfmg jurisdictions. although there would be no guarantee Loa! salaries would keep up "ith the Bay Are. ~ of inflation. • Staff will incorporate recommendations contained in the Critique of First Mission Driven Budget (CMR:347:9S). These recommeudations included changes to the budget document, to prOl<ide additional infunnatlon on staffing, and additional explanatioos lOr ,.,.,'enues at the departmeotleve! and for large dollar amounts in the non-salary category in a major activity. Genera! Fund • Human Service contracl funding will be increased each year of the two-ye .. · budget by the amount of the Bay Area Consumer Price Index (CPr). All other proposed non salary expen<!iluIe increases will be carefully scrulinlzed lOr merit wi1hin the constraints of suffiCient overall revcnues. • Staff will be prep"",d 10 present • 1996-91 budget coolingeney plan in the ",.e!!t that General Fund revenues fall sbor1 of projectioos. • The Council wiD be asked to provide 'ftrcction 10 staff in December 1995, on financing op!lons for the capital improvements and .:nbanced maintenance effixts for the Palo Allo Unified School District playing fields, and lOr the imJlleroenlation of an enhanced Iroe management program. Staff will incorporate that direction, as appropriate, in the 1996-91 budget. WJthout new funding, 1995-96 levels of service for playing fields and tree care will be proposed. • Staff will rootinue 10 pursue the feasibility for joint provision of services with S1J!l'OIlIld'mg communities, Mlere such provision is ~ost beneficial and maintains or enha.'lCCS the level of service provision. hj:.lol4 i-~ -• -. ~ , :;-. + • .-.. --<.--.'" • Options f<x Iong-Ienn fUlJlIlCing of the Cubbcrley Community Center wnJ be presented with the 1996-97 budget, addressing stagnant utility user lax revenues, i.ocreasing expenditures and • Iimlted capita! program. Utiljty funds • Rate in.-reases will be ronsidered with the need ro.: ongoing operating and capital needs. Preliminary projectioos show thai • rate increase may be required f<x the Refuse Fund for 1996-97, and f<x the Wastewater CoIlectioo Fund in 1997-98. • Reserve levels in the UtIlity funds that exceeded the Council approved maximum Ieve! at the end of 1994-95 will be reviewed. Staff will make ~dations fOr poIeIltial ad"jUSfments in those funds with excess reserve balances IS part of the I9%- 97 budget. • StaffwiII iDco<pocate the results of the lhilities Org<lllizatiooal Review as appropriate in 11:." 1997-98 Budget, if Council bas re>iewed and acted upon it. Capital Impnyement Program • Provided there ore sufficient reveoues, the 19%-97 budget wnJ at least maintaiD the $4.0 million GeneraJ Fund Capital ImprovemeDl Program (ClP) ($1.0 rrullion in streets and sidewaib projects and $3.0 nullion in other General Fund p!"ojects~ Given the sbift ofSO.s millioo in maintenance items from the capital !o the cperating budge! in 1995-96, maintaiDing • $4.0 million ClP level would translate into enhanced funding fOr infrastructure and other capital improvement projects over previous year>, absent any other augmentation. • The CIP will "ootinue \0 u!!liz. the Town Archi1ect w<>cept 10 incorporate aesthetic and design improvements into projects. Emphasis will be placed 00 mitigating the pbysi<;al impact of • project, and providing estimates of the COS! of aesthetic improvements. • The General Fund ClP will continue \0 provide ougmented fumfmg ($300,000 H> $400,000 pet" year) f<x pam, lOcusing on playground, i<rlgation and park amenity improvemen~ • The General Fond ClP will be analyzed \0 ensure that the work program it represents, along with the ba<:ldog of already approved capital projects, can be accomplisbed .'-.-~ ... -".,.~:. ;.:./·~:~t: ~- within. reasonable time fraln. after !be appropriation for me project is approved by the CourKoil. • To the extent that preliminary recommend.tioos may l>e avanable from. the Infrastrucr= Management Study (IMS) during development of the 1996-97 Cti'. staff",iIl incorporate them. It is anticipated that the finallMS report will be presented to the Finance Committee in July 1996, and, after Council t~ .... iew. will be incoq>o<-ated in the 1997-98 elP during the Interim Budget process. • Once the Comprehensive Plan is approveJ by the Council, an implementation plan, which includes short-term and long-term financing. will be incorporated, as applOpliate, into the 1997-98 Budget FISCAl. iMPAcr The fiscal impact oflhe guideHnes is unknown at this time. ENVIRONMENTAL ASSf,SSMENT There is 00 Environmental Assessment required to adopt L'>e guidelines. AlTACHMENTS ... ttachmen! A 1996-97 and 1997-98 General Fund Summary and Assumptions PREPARED BY: Vlf8inla Hanington, Budget Manager <-QI {\ DEPARTMENT HEAD APPROVAL: _.f tI(I' ..... .4,./ CITY MANAGER APPROVAL: CC:NIA EmilY Harrisoo eputyCity IA \ '"- ~ .MAchlnen! A PRELIMINARY 1996-98 GENERAL FUND SUMMARY Adopted Pn>imed Projmed Budgn 19%-97 1997·98 1995-" Budgn Changes Budgn CluIng .. -S&I<s ..... 15.100 15,954 854 16,!I4 160 I'roporty ..... 1,.549 7,775 226 1,'91 116 Utllity u.scn. tax. 5,496 5,408 (8S) 5,400 (8) Tran:sie:oC ~.IC) Tax 3,122 3,722 0 3,760 38 00... ...... &es, ""'~;n 4,.541 ';'701 160 4,730 3S ~ iocs a permia 1,204 8,327 123 ",52 125 Olargcs 10 OdIer FImdI 6,376 6,771 395 6,906 J35 O!bcoll ......... WI IMll 196 1UU :m TotaI.."ulHS 60,806 62,672 1,866 63,474 &02 Plus ()pcnIiJIJ T ..... r..s III 11,748 19,2;1 489 19.893 656 . TOTAL SO{!RCE OF f(iNDS 79,5S4 11,909 2,355 13,367 1,458 E·pndltpta Salaries IIIW! Benefits 49,954 51,222 1,268 52,508 1.286 NOo-Salar!~ 20,419 20,668 249 20,808 140 Anocared~ 3,148 3,148 G 3,\48 0 Cootingmt A"""", ill ill (1.00) ill ~ TotaIlJ:ptaditva 74,008 75,425 1,417 76,151 1,426 Plus Op:rodog T-r", QuI 5,671 5,671 0 5,671 0 TOTAL us!: OF fl.;'NDS 79,679 11,096 1,417 82,522 1,426 NET SURPW5I(DEFICIT) (SIlS) SIll 5938 $845 S31 ~y 1996-98 GENE!!AL fUND SUMMARY ASSUMPTIONS jyvecmes 1996-97 1991-98 2.{) l"'n:eD! grow<J, me over projected 1995-96 =ciprs 1.0 petteD! growtl! tale ovor 1996-97 Pr<>pen, Tn .. 1996-97 1997-98 19%-98 1996-97 1991-98 2.0 pettent growtl! ruo over p<ojec1e4 1995-96 re::eipts 1.5 1"'''''01 grow<!> rue over 1996-97 S;une as 1995-% budget, DO growtl! 1.1l pen:ent growtll me ""or 1996-97 budget This Ca!egccy includes Ill< documentary !ntnsfer ..... motor vehicle m-Eeu tal<, and City violatioo aod fine revenue: 1996-98 Approltitnately 1.0 pel'Cell! aonua! growth rue from proj"""\ed 1995-96 ",'eDIle 1996-9S J.5 1"'=0.{ ",",ua! growth rate from 1995-96 bu~e! 2.01"'='" onnuaI growth rate based ooprojec1ed 199s.96 clwges to tile Utilities 1996-98 2.0 pen:ent antIuaI sr01l'lll rate based OIl projected 1995-96 charges 1996-98 Consi<lellt .,jth latest Uliliry fmanda! projections I 1<)96.98 1<)96.98 1<)96.97 1991-91 LtndfiH reol bold COIl5;'1o.1 and te.t fo< otber properties gro .. ing by CPI, """,isteDt ..w.h CMR:1S1 :95. ~nl Paid for Genera] Fund Properties Used by Utilities Opemions. Approximate' p<;!<ODl salOl} and benefit ~ A> • ~I of Ille ()<pnizatlooal Re...-. salOl} savings are anticipaW as park maint.e!laD« statr.retire and maintenance v.'ock is contracte<.t Rtmo .. 1 of one-dme additions in 1995-96 Fllllding foe maiOIe.ancc of PAllSD Fields held alllle 1995-96 \evel PAllSD l.use gtOfl by CPI No other additions I<lllle budget .xcept • proposal for augmented (u.d'ing of FIR Departmeol eqwpment needs PAUSD I.e ... grows by CPI No oth<r additions 10 Ille budget