HomeMy WebLinkAbout2010 04 26DEVELOPMENT COMMUNITY O O
HOUSING AUTHORITY I
TO THE MEMBERS OF THE AFOREMENTIONED AGENCIES AND THE CITY CLERK OF
THE CITY OF BALDWIN PARK
NOTICE IS HEREBY GIVEN that a Special Meeting is hereby called to be held
MONDAY, APRIL 26, 2010 AT 6:30 PM at City Hall — 3rd Floor, Room 307, 14403 E. Pacific
Avenue, Room 307, Baldwin Park, CA 91706.
Said Special Meeting shall be for the purpose of conducting business in accordance with
the attached Agenda.
Dated: April 21, 2010
NO OTHER BUSINESS WILL BE DISCUSSED
W . �' . � , '
Manuel Lozano
Mayor
i fiA Deputy "t ;+y t'�i�r0i f $%�� i�ii-�� �iriieiin ii -ear ;-FxI I caused the
i, Laura M. Nieto, Deputy CIL (Cle � o. t. e (City of Ba11tdvvii � Para, cep tily that I cat sed t e
aforementioned Notice and Call of a Special Meeting to be delivered via email (hard copy to
follow) to each Member and to the San Gabriel Valley Tribune, and that I posted said notice as
required by law on April 21, 2010.
Laura M. Nieto, CMC
Deputy City Clerk
City Council,`Community Development Commission & Housing Authority
Special Meeting Agenda — April 26, 2010
AGENDA FOR THE
SPECIAL MEETING
OF THE
COMMUNITY CITY COUNCIL
DEVELOPMENT O •
HOUSING !'
April 26, 2010
• i PM
CITY HALL —3rd Floor, Room 307
14403 E. PACIFIC AVENUE
BALDWIN PARK, CA 91706
(626) 960 -4011
8 '�A
BA ' LDWIN
* `r
Manuel Lozano
- Mayor /Chair
Ricardo Pacheco
- Mayor Pro Tem/Vice Chair
Marlen Garcia
- Council Member /Member
Monica Garcia
- Council Member /Member
Susan Rubio
- Council Member /Member
PUBLIC COMMENTS
The public is encouraged to address the City
Council or any of its Agencies listed on this
agenda on any matter posted on the agenda or
on any other matter within its jurisdiction. If you
wish to address the City Council or any of its
Agencies, you may do so during the PUBLIC
COMMUNICATIONS period noted on the
agenda. Each person is allowed three (3)
minutes speaking time. A Spanish- speaking
interpreter is available for your convenience.
COMENTARIOS DEL PUBLiCO
Se invita al publico a dirigirse al Concilio o cualquiera
otra de sus Agencias nombradas en esta agenda,
para hablar sobre cualquier asunto publicado en la
agenda o cualquier tema que este bajo su jurisdiccion.
Si usted desea la oportunidad de dirigirse al Concilio o
alguna de sus Agencias, podra hacerlo durante el
periodo de Comentarios del Pdblico (Public
Communications) anunciado en la agenda. A cada
persona se le permite hablar por tres (3) minutes. Hay
un interprete para su conveniencia.
City Council, Community Development Commission & Housing Authority
Special Meeting Agenda — April 26, 2010
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
HOUSING AUTHORITY
SPECIAL MEETING — 6:30 PM
CALL TO ORDER
ROLL CALL:
Council members/Members: Marlen Garcia, Monica
Garcia, Susan Rubio, Mayor Pro Tem/Vice Chair Ricardo
Pacheco and Mayor/Chair Manuel Lozano
PUBLIC COMMUNICATIONS
Three (3) minute speaking time limit
Tres (3) minutos sera e/ limite para hablar
THIS IS THE TIME SET ASIDE TO ADDRESS THE CITY COUNCIL
PLEASE NOTIFY THE CITY CLERK IF YOU REQUIRE THE SERVICES OF AN INTERPRETER
No action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special
circumstances exist. The legislative body or its staff may: 1) Briefly respond to statements made or questions
asked by persons; or 2) Direct staff to investigate and/or schedule matters for consideration at a future meeting.
[Government Code §54954.21
ESTE ES EL PERIODO DESIGNADO PARA DIRIGIRSE AL CONCILIO
FAVOR DE NOTIFICAR A LA SECRETARIA SI REQUIERE LOS SERVICIOS DEL INTERPRETS
No se podra tomar acci6n en a1g6n asunto a menos que sea incluido en la agenda, o a menos que exista algOna
emergencia o circunstancia especial. El cuerpo legislativo y su personal podran: 1) Responder brevemente a
declaraci6nes o preguntas hechas por personas; o 2) Dirigir personal a investigar y10 fijar asuntos para tomar en
consideraci6n en juntas proximas. [Codigo de Gobierno §54954.2]
REPORTS OF OFFICERS
1. FISCAL YEAR 2010/2011 CITY, COMMUNITY DEVELOPMENT COMMISSION AND
HOUSING AUTHORITY BUDGET
Staff recommends City Council, Community Development Commission & Housing
Authority review the material and provide directions as deemed appropriate.
ADJOURNMENT
CERTIFICATION
1, Laura M. Nieto, Deputy City Clerk of the City of Baldwin Park hereby certify under penalty of perjury
under the laws of the State of California that the foregoing agenda was posted on the City Hall bulletin
board not less than 24 hours prior to the meeting. April 21, 2010.
Laura M. Nieto, CMC
Deputy City Clerk
City Council, Community Development Commission & Housing Authority
Special Meeting Agenda — April 26, 2010
PLEASE NOTE: Copies of staff reports and supporting documentation pertaining to each item
on this agenda are available for public viewing and inspection at City Hall (14403 E. Pacific
Avenue), 2nd Floor Lobby Area or at the Los Angeles County Public Library (4181 Baldwin Park
Blvd.) in the City of Baldwin Park. For further information regarding agenda items, please
contact the office of the City Clerk at 626.960.4011, ext. 466 or via e -mail at
Inieto(a-)-baldwinpark. com
In compliance with the Americans with Disabilities Act, if you need special assistance to
participate in this meeting, please contact the Public Works Department or Risk Management at
626.960.4011. Notification 48 hours prior to the meeting will enable staff to make reasonable
arrangements to ensure accessibility to this meeting. (28 CFR 34.102.104 ADA TITLE Il)
City Council, Community Development Commission & Housing Authority
Special Meeting Agenda — April 26, 2010
ra 0-1 lu
BALD�VIN
FT-X',
'C"ITY OF BALDWIN PARK STAFF REPORT
TO: Honorable Mayor/Chair and Members of the City Council,
Community Development Commission and Housing Authority
FROM: Vijay Singhal, Chief cu iv icer[Executive Directo
Executive Team
DATE: April 26, 2010
SUBJECT: Fiscal Year 2010/2011 City, Community Development
Commission and Housing Authority Budget
The purpose of this report is to present the Fiscal Year 2010/2011 budget for City
Council/CDC/Housing Authority consideration; to review and discuss the budget and
provide direction to staff.
We are pleased to present a balanced budget for the Fiscal Year 2010/2011. The
Budget anticipates a small surplus in the General Fund and for most other funds the
expenditures either match or are lower than the projected revenues. in the case of
budgets for capital improvement projects, any excess costs are covered with carried
over lund balances since these are multi-year projects. —1 his is a major accomplishiment
for the city especially in the current economic times when many other organizations are
struggling to balance their budgets, are applying program cuts, are facing potential lay
offs and/or pay reductions, using reserves and/or are having to implement other drastic
measures such as reducing services.
Due to the bad economy, we have experienced significant declines in our revenues
such as Sales Tax and Property Taxes. However, the City's conservative approach to
spending, numerous operational changes and improvernents implemented over the
past few years combined with new revenues and additional cost reductions have
allowed us to once again prepare a balanced budget. We are very proud that in these
tumultuous times when good fiscal news is hard to come by, the City of Baldwin Park is
fiscally strong,
2010/2011 [budget Staff Report
April 26, 2010
Page
As shown in the table below, for Fiscal Year 2010/2011 total city resources are
expected to be $73,872,462 and the total outlay is expected to be $75,461,043. For
the corning year, General Fund resources will exceed General Fund outlay by $89,820,
To improve the City's infrastructure and enhance the Community as a whole the budget
includes approximately $17 million in Capital Outlay, This capital spending is funded
from grants and other restricted resources. The capital expenditure includes $4,085,500
of capital spending which will be paid from resources accumulated in prior years that
were designated for capital projects.
The following table shows the City's 2010/2011 Budget:
Budget details, including details of revenues and expenditures, are provided in the
attached budget message and budget document.
Besides having a balanced budget and significantly improved fiscal performance, we
are very proud of the City's numerous other accomplishments Such as:
• Our crime rate has declined and continues to decline
• The traffic accidents have declined
• City operates with significantly lower staff in almost all departments while providing
comparable or better level of service (cornpared to comparable cities, we have one of
the lowest staffing)
• Our reserves and cash position has improved significantly
Additional details an the budget and city's performance are included in the attached
budget memorandum and document.
Resources
Outlay
Surplus
General Fund
24,866,000
24,776,180
89,820
GF Supported/Subsidized Funds
6,172,100
6,064,350
107,7501
11
Other Funds
42,834,362
40,535,013
2,299,349
Subtotal
73,872,462
71,375,543
2,496,919
Capital Projects from Capital
Rese rves
,
-4,085,500
Total City Funds
73,872 46
75,461,043
1
-1,588,581
Budget details, including details of revenues and expenditures, are provided in the
attached budget message and budget document.
Besides having a balanced budget and significantly improved fiscal performance, we
are very proud of the City's numerous other accomplishments Such as:
• Our crime rate has declined and continues to decline
• The traffic accidents have declined
• City operates with significantly lower staff in almost all departments while providing
comparable or better level of service (cornpared to comparable cities, we have one of
the lowest staffing)
• Our reserves and cash position has improved significantly
Additional details an the budget and city's performance are included in the attached
budget memorandum and document.
2010/2011 Budget Staff Roport
April 26, 2010
Page 3
Even though we have a balanced budget, the current economic crisis combined with
the State's budget problems will continue to pose fiscal threats. As discussed in detail
in the budget message, these challenges and threats require that we continue to be
very conservative with Our spending, Additionally, there is a critical need to further
identify and implement innovative business practices and creative ideas to more
effectively meet demands for services with fewer resources. We will also be looking at
ways to improve efficiency even further.
We want to thank every city staff member for their commitment and hard work. We also
want to thank the Mayor and Council for their vision, direction and support for staff's
efforts and strong commitment for the community's wellbeing. As a result of the City
Council's support combined with very motivated and committed team of staff members,
we are confident that our collective efforts will make Fiscal Year 2010/2011 an even
better year in a very exciting journey for the City of Baldwin Park,
19LIMMINI
As noted in the budget document.
It is recommended that the City Council, Community Development Commission and
Housing Authority review the budget material and provide directions as deemed
appropriate.
Attachments:
1. Budget Memorandum
2. Proposed Budget Document
' 'Oh
F EB "k
-n 0 Aio
IIIII
BALDWIN
P, A- R. K
April 26, 2010
Honorable Mayor/Chair and Members of the City Council,
Community Development Commission and Housing Authority:
We are very pleased to present to you for review and approval the Proposed Budget
("Budget") for the City of Baldwin Park ("City") for Fiscal Year 2010-11. The table below
shows the Budget Summary for the General Fund and the City as a whole:
As shown in the table above the General Fund budget is balanced with a surplus of
$89,820, The FY 2010-2011 budget strives to ensure that the City will live within its
means and that projected revenues equal or exceed expenditures,
We are very proud that in these tumultuous times when good fiscal news is hard to come
by, the City of Baldwin Park is fiscally strong, with a balanced budget and a strong fiscal
performance, While we have managed to survive the unprecedented economic crisis
facing our nation, which has caused significant adverse impacts on businesses,
consumers and local and state governments we have suffered impacts as well. Our
revenues have declined, resulting in lower revenues available for 2010/2011 budget. We
have also experienced costs increases and an increase in demands for services.
7 f
"I OF RAL DW 1 Nil PARK 40 i A-, PAC- [%A D
Resources
Outlay
Surplus
1 General Fund
24,866,000
24,776,180
89,820
GF Supported/Subsidized
Funds _�
6,172,100
6,064,350
107,7
Other Funds
42,834,362 �
40,535,013 1
2,299tq49 �
Subtotal
3,872,462
71,375,543
2,496,919
Capital Projects from
Capital Reserves
4,085,500 .. i,_(4,085,500)
Total City Funds
73,872,46L175
461 ,043
(1,588,581)
(Resources include revenues and transfers in and outlay includes
expenditures and
transfers Out; details
by fund type are provided in Attachment-1)
As shown in the table above the General Fund budget is balanced with a surplus of
$89,820, The FY 2010-2011 budget strives to ensure that the City will live within its
means and that projected revenues equal or exceed expenditures,
We are very proud that in these tumultuous times when good fiscal news is hard to come
by, the City of Baldwin Park is fiscally strong, with a balanced budget and a strong fiscal
performance, While we have managed to survive the unprecedented economic crisis
facing our nation, which has caused significant adverse impacts on businesses,
consumers and local and state governments we have suffered impacts as well. Our
revenues have declined, resulting in lower revenues available for 2010/2011 budget. We
have also experienced costs increases and an increase in demands for services.
7 f
"I OF RAL DW 1 Nil PARK 40 i A-, PAC- [%A D
2010/2011 Budget Memorandum
Some of the revenue declines have been offset by increases in certain revenues such as
Waste Management Franchise and construction related revenues. The budget proposes
several additional measures to offset lower revenues; these include reductions in
spending on meetings, conferences, materials, supplies and consultant services. The
budget also proposes alignment of some revenues with expenditures in order to offset
increased costs by proposing fee increases in both animal control services and false
alarm services. The budget also proposes allocations of some eligible costs to grants
and other eligible sources such as the asset seizure fund. The budget anticipates that 17
(non-sworn) positions that are currently vacant will remain vacant during the year. Most
of these positions have been vacant for several years. While the cost of these positions
is included in the budget, a negative amount identified in the budget as management
resource has been included to generate expenditure reductions. There is however, some
funding available to offset the cost of part-time staff that will be required to maintain
some of these functions.
Maintaining fiscal stability and managing operations without going in the red is not an
easy feat, especially in such tough economic times. However, our success is the result of
our proactive approach and our ability to accept challenges and develop strategies which
focus on service and the community's well being. Few years ago we identified signs of
potential fiscal stress and implemented numerous measures to increase revenues,
reduce spending and improve organizational efficiency. As a result, we have not only
been able to survive this economic storm without causing adverse impacts on services
and staff but also maintained services and programs including numerous program
enhancements that our community deserves and desires. These past efforts combined
with additional efforts identified in the budget are likely to help the City successfully
navigate through the economic storm. The City's highly committed and motivated staff
embraced the fact that there were fewer resources and implemented creative ways to
not only maintain existing programs but also implement several new programs.
We expect and hope that the worst of the economic storm may be behind us.'VNhile we
may not have hit the bottom, we feel that we are close to the bottom and soon we shall
level off and head towards a recovery phase, however, we believe that the recovery shall
be long and shallow. It is therefore important that our focus continues to be on fiscal
stability and on maintaining operational and organizational stability and effectiveness.
This would ensure that as the economy recovers the City will be in a much better and
stronger position to benefit from the economic upturn. With this in mind the Fiscal year
2010/2011 budget preserves and maintains all programs and services and proposes no
impacts on staff.
This Budget Memorandum discusses the following topics:
1. Fiscal Year 2010-2011 BUDGET OVERVIEW
This section discusses revenues, expenditures for the General Fund and
the City as a whole and also includes a discussion on reserves.
M
201012011 Budget Memorandum
IL
IV. FUTURE CHALLENGES
V. ECONOMIC STABILITY - A HISTORICAL PERSPECTIVE
I. FISCAL YEAR 2010-2011 BUDGET OVERVIEW
The FY 2010/2011 budget reflects our ongoing commitment to long term fiscal stability.
For Fiscal Year 2010/2011 total city resources are expected to be $73,872,462, which
include $69,827,959 in revenues from external sources and $4,044,503 in transfers
between city funds. The total outlay is expected to be $75,461,043, which includes
expenditures of $71,416,540 and transfers of $4,044,503 between funds. The total
expenditures include $4,085,500 of capital spending which will be paid from resources
accumulated in prior years that were designated for capital projects. To improve the
City's infrastructure and enhance the Community as a whole the budget includes
approximately $17 million in Capital outlay. This capital spending is funded from grants
and other restricted resources.
The proposed 2010/2011 budget also incorporates the budgets for the Financing
Authority, Community Development Commission, and Housing Authority which has been
made possible with the City's implementation of the new financial system upgrade.
For the coming year, General Fund revenues will exceed General Fund expenditures
by $1.6 million; however, several funds require financial support from the General Fund
and after transfers from the General Fund to those funds requiring support, the General
Fund revenues exceed expenditures by $89,820 (less than 0.5% of revenues).
The economic downturn, which has impacted the entire nation, will cause FY 2010/2011
revenues to be significantly lower compared to the 2009/2010 budget. Like many other
cities, our City had begun experiencing these declines; however, we have been able to
successfully strategize on ways to combat these negative trends by increasing some
revenues and by reducing several expenditures. Details of revenue and expenditure
changes are discussed in subsequent sections.
The budget identifies 190 full time positions (excluding elected positions). However, there
are 17 non -sworn positions that are currently vacant and are expected to remain vacant
during the current year and probably next year or until a reasonable economic recovery
occurs (most of these positions have been vacant for several years). The budgeted staffing
for the Fiscal Year 201012011 is therefore expected to not exceed 173 positions. The
budgeted positions are 48 positions or approximately 22% lower than the FY 2005/2006
budgeted and filled positions.
These vacant positions are not expected to have an adverse impact on services or
programs as long as the service expectations stay at current levels. New programs,
service enhancements or change in priorities may create a need to adjust program and
Im
2010/2011 Budget Memorandum
set-vice levels.
As a result of the City's restructuring efforts in the past combined with staff's motivation
and hard work we have generated significant efficiencies to offset the impacts of lower
staffing.
The following sections discuss the revenue and expenditure trends for the General Fund
Revenues
After a period of robust revenue growth caused by growth in national and regional
economies and new businesses in the city, we like many others are experiencing the
impacts of an economic slowdown. What started with the housing crisis is also
impacting consumer sales. In the current fiscal year 2009/2010, which ends on June 30,
2010, we experienced significant reductions in major revenue sources such as property
Taxes, Sales Tax and certain Police revenues. As a result, the 2009/2010 actual
revenues are expected to be lower than the 2009/2010 budgeted revenues by
approximately $1.4 million or negative 5.3 % as discussed during the Mid Year
presentation, We do not anticipate any additional overall declines in 2010/2011. While
there will be some additional revenue declines in some categories, they will be offset by
higher revenues from Waste Management franchise and construction related revenues.
Therefore, the Budget for Fiscal Year 2010-2011 estimates that the General Fund
operating revenues will be $24.77 million, which is a decrease of $1,37 million or 5.2%
from the budgeted revenues for Fiscal Year 2009-10.
Sit-ice major revenue declines happened in 2009/2010 and smaller overall declines are
expected in some categories in 201012011, it appears that the worst may be behind us
and we may be moving towards stabilization leading to recovery. While we are hopeful
that the economy will see some recovery and revenues will see some growth, we are
being very conservative in revenue projections to avoid any impacts should the
economic recovery be delayed.
The General Fund relies heavily on taxes and revenue sources, which are not in city's
control as shown in the following chart. Due to reliance on sources beyond our control
our budgets have greater volatility. As shown in the following pie chart, taxes, which
include Vehicle License Fees in lieu of taxes, constitute 79% of the General Fund
revenues.
IV
20/012011 Budget Memorandum
FY 2010/201/ General Fund Revenges by Category (including Transfers nsfer In
,66,06
USE UP MONEY &
LICENSES & PROPERTY
.z� 1%
PINES & PENALTIG
7%
CHARGES FOR
SERVICES
7 %
TARE
79%
UM
The fallowing table shows the trend for major General Fund Revenues (including
Transfers In):
Y 2010 FY 2011
FY 2007 FY 2008 FY 2009 ADOPTED PROPOSED
v W[r .R0LJR E ACTUAL ACTUAL ACTUAL BUDGET BUDGET
TAXES
PROPERTY TAXES
SALES TAX
UTILITY USERS TAX
FRANCHISE TAX
TRANSIENT OCCUPANCY TAX
BUSINESS LICENSE TAX
INTERGOVERNMENTAL
SUBTOTAL TAXES
CHARGES FOR SERVICES
FINES & PENALTIES
LICENSES & PERMITS
USE OF MONEY & PROPERTY
OTHER
3,515,978
3,430,626
3,802, 7
3,492,0f0
a nI() Mn
5,678,563
5,926,446
5,105,862
5,150,000
4,610,000
2,545,312
2,591,143
2,459,488
2,550,000
2,550,000
1,556,904
1,626,176
1,997,823
2,050,000
2,60 0,000
369,135
310,092
250,583
275,000
225,000
714.,836
560,529
578,847
550,000
580,000
6,423,429
6,810,001
6,786,952
6,925,000
6,213,000
20,804,157
21,255,113
20,982,306
„T 20,992,000
19,7 8,000
1,599,266
2,177,053
1,530,92;
1,927,800
1,876,800
1,845,829
1,783,646
1,844,475
2,155,.000
1,670,000
635,421
456,123
517,619
463,200
669,000
209,408
349,001
444,315
315,600
235,000
549,791
151,001
_ 652,823
381,000
627,200
25,643,672
26,1T1,637
25,972,461
26,234,600
24,866,000
4'
201012011 Budget Memorandum
The following table shows the growth trend of General Fund taxes and demonstrates
the volatility:
General Fund Taxes:
Fiscal Year
Amount % Increase
2003 -04
$14,394,510
FY 2010
PROJECTED
ACTUALS
2004 -05
$17,980,087
25%
2005 -06
$18,618,959
4%
2006 -07
$20,804,157
12%
2007 -08
$21,255,013
2%
2008 -09
$20,982,306
-1%
2009 -10 (Budget)
$20,992,000
0%
2009 -10 (Estimate)
$19,796,800
-5.7%
2010 -11 (Budget)
$19,788,000
0%
*This amount is negative
5.7% compared to the 200912090 budget
and 0% compared to the
adjusted 2009 -10 estimates.
As shown in the table above, there have been huge swings in tax revenues from one
year to another. In addition, due to the housing meltdown combined with the
reassessment of property values (Prop 8) enacted by the County of Los Angeles, the
City is expecting a negative 5.7% drop in these revenues for fiscal year 2010 -2011.
As noted above, these decreases began in fiscal year 2008 -2009. In addition, since
the City became aware of decreases in sales and property tax in fiscal year 2009-
2010 staff was able to present the projected trends during the mid -year review. The
following are the three major tax revenue decreases that were discussed:
CATEGORY
FY 2008
ACTUAL.
FY 2009
ACTUAL.S
FY 2010
ADOPTED
BUDGET
FY 2010
PROJECTED
ACTUALS
FY 2011
PROPOSED
BUDGET
Property
Taxes
3,430,626
3,802,756
3,492,000
3,449,000
3,010,000
Sales Tax
5,926,446
5,105,862
5,150,000
4,600,000
4,610,000
Vehicle
License Fees*
6,603,499
6,623,715
6,750,000
6,254,800
6,075,000
*The property
tax portion
The table above shows that we have experienced significant declines in our major
revenue sources. Property Tax revenues have declined 21% from their peak in FY
2009 and Sales Tax has declined 22% from its peak in FY 2008. These are very
significant declines and we are lucky and thankful to our efforts because we have
been able to absorb such adverse revenue trends. Based on the volatility and trends
of these major revenues, it is important to be conservative in committing to long -term
expenditures. It imperative that we continue our strategy of resisting expenditures
Vi
2010/2011 Budget Memorandum
unless those expenditures are supported by long -term revenue sources.
Expenditures
The total General fund expenditures are estimated to be $23,104,250. In addition the
General Fund will be transferring $1,671,930 to funds supported and subsidized by the
General fund. The General Fund operating expenditure budget shows a decrease of
$1.16 million or 4.78% compared to the FY 2009/2010 budget as shown in the following
table:
General Fund Expenditures' by Category:
CATEGORY
FY 2007
ACTUAL
FY 2008
ACTUAL
FY 2009
ACTUAL
FY 2010
ADOPTED
BUDGET
FY 2011
PROPOSED
BUDGET
Contractual
2,737,124
3,003,800
2,790,035
2,686,900
2,383,500
Personnel
15,768,245
16,437, 822
17,559,440
18,415,850
18,476,550
Maintenance
1,052,447
1,446,594
975,311
1,277,800
986,750
Capital /Debt
Service
59,448
40,636
65,275
94,800
67,500
Internal Services
2,409,289
2,443,901
2,632,700
2,336,400
1,861,600
M mt. Resource
0
0
0
548,300
671,650
Grand Total
22,026,553
23,372,753
24,022,761
24,263,450
23,104,250
The primary reason for the decrease in expenditures is a result of reduced operational
costs related to fuel and utilities, reductions in contractual obligations such as
RedFlex, decreases in internal service charges, reallocation of personnel costs to
other eligible funding sources, increases in the management resources account which
accounts for vacant positions and other reductions in materials and supplies,
meetings and conferences, training, publications, subscriptions and dues and
reduction in the amount set aside for new programs last year. Some costs of the
programs implemented last year are already factored in the budget.
3 Excludes transfers
Vii
201012011 Budget Mennorandurn
General Transfers 09D $24 776 180
CAPITAL TRANSFERS OUT CONTRACTUAL
MAINTENANCE AND 0% 7% 10%
OPERATIONS
.................
PERSONNEL
74%
As shown in the above chart Personnel costs (salaries and benefits) are the most
significant category of expenditures within the General Fund, representing over 70%
of the total expenditures. Reducing the budget without impacting personnel costs is
very difficult. We were proactive and cautious and even though we had several
positions budgeted we kept them vacant. This has not only created savings but
allowed us to manage the fiscal crisis without significant impacts.
The following is a detail of the Personnel expenditure category:
CATEGORY
FY 2007
ACTUAL
FY 2008
ACTUAL
FY 2009
ACTUAL
FY 2010
ADOPTED
BUDGET
FY 2011
PROPOSED
BUDGET
Regular Pay
7,599,737
7,696,843
7,873,031
9,043,450
8,889,900
Part Time Pay
912,779
1,143,191
1,345,244
1,086,700
1,191,000
Overtime/Holiday Pay
936,253
1,028,179
1,004,778
863,900
750,150
PERS Retirement
3,055,247
3,248,435
3,667,316
3,695,000
3,779,800
Medical Benefits
2,000,983
2,050,872
2,323,618
2,361,900
2,376,400
Workers Compensation
738,181
564,958
546,874
727,000
705,900
Other
526,065
705,344
798,579
637,900
783,400_
Grand Total
15,768,245
16,437,822
17,559,440
18,4115,850
18,476,550
Viii
2010/2011 Budget Memorandum
Following table shows General Fund expenditures by department.
General
Dog ent
F_
FY 2007
ACTUAL
FY 2008
ACTUAL
FY 2009
ACTUAL
FY 2010
ADOPTED
BUDGET
FY 2011
PROPOSED
BUDGET
_
Administration:
Council
191,249
132,351
101,193
180,100
179,900
CEO
117,089
123,743
129,193
147,700
146,900
City Clerk
161,422
213,126
133,360
139,850
133,700
City Attorney
386,527
418,804
245,847
325,000
249,200
Human Resources
260,992
320,837
289,075
309,500
245,550
Finance
711,000
639,342
749,369
620,700
614,650
Non-Departmental
756,449
653,516
841,860
982,900
893,100
Community Development
964,180
1,139,009
1,066,335
1,071,000
984,350
Police
15,067,615
15,599,841
16,422,702
16,820,200
16,187,500
Public Works
602,977
660,466
610,132
449,400
236,050
Recreation & Comm, Serv.
2,807,052
3,471,718
3,433,696
3,217,100
3,233,350
Grand 12!aI i;
22,026,552
23,372,753
24,022,762
24,263,450
23,104,250
The chart below shows General Fund expenditures by department.
ME
24,776:180
2 Excludes Transfers
ix
2010/2011 Budget Memorandum
Citywide expenditures Following tables show the expenditures for all city funds:
City Wide Expenditures3 by category:
CATEGORY
FY 2007
ACTUAL
FY 2008
ACTUAL
FY 2009
ACTUAL
FY 2010
ADOPTED
BUDGET
FY 2011
PROPOSED
BUDGET
Contractual
5,517,432
6,021,050
5,704,384
6,857,000
6,447,657
Personnel
20,421,323
20,819,580
22,310,134
24,205,750
24,116,312
Maintenance
5,268,785
6,754,198
14,418,050
15,995,400
15,603,623
Capital /Debt Service
6,670,352
2,147,472
12,308,472
21,053,200
23,199,798
Internal Services
3,809,011
3,926,041
3,843,510
3,607,600
2,990,600
M mt. Resource
0
0
0
606,100
941,450
Risk Management
2,150,118
1,985,789
1,311,182
2,012,400
1,619,900
Grand Total
41,686,903
39,668,341
58,584,550
71,112,850
71,416,540
Citywide Expenditures by Departments
Department
FY 2007
ACTUAL
FY 2008
ACTUAL
FY 2009
ACTUAL
FY 2010
ADOPTED
BUDGET
FY 2011
PROPOSED
BUDGET
Administration:
Council
257,894
190,091
147,207
273,700
230,100
CEO
371,307
363,906
344,701
587,000
418,600
City Clerk
217,838
268,154
191,060
279,350
232,100
City Attorney
388,097
418,804
294,417
325,000
324,200
1�....... -..-_ e±n r�, erne
�J ui I Ia I 10 \esouI ces
hnn 7PQ
449654
532.973
497,200
398,350
Risk Management
2,150,118
1,985,789
1,311,182
2,012,400
1,619,900
Information Technology
918,285
1,025,023
864,175
882,600
841,200
Finance
1,219,702
1,036,132
1,106,143
1,190,500
1,002,750
Non- Departmental
1,524,963
1,394,231
20,686,787
21,374,300
16,702,562
Community Development
2,550,359
3,907,144
3,286,138
5,884,600
6,269,186
Police
15,244,845
16,434,306
17,164,777
17,451,000
17,353,539
Public Works
11,456,454
6,176,784
6,820,842
14,906;100
20,758,553
Recreation & Comm Sery
4,977,252
6,018,323
5,834,148
5,449,100
5,265,500
Grand Total
41,686,903
39,668,341
58,584,549
71,112,850
71,416,540
The ending budgeted fund balance for the General Fund, at June 30, 2011, is
s Excludes transfers
2010/2011 Budget Men-iorandum
estimated to be $5.45 million, which includes the $1,0 million "lockbox" reserve.
Not all of these reserves are available for spending. A portion of the reserves is in the
form of non cash assets such as receivables and are therefore not available for
spending. The estimated total reserves as of June 30, 2011 for the General Fund
including funds supported and subsidized by the General Fund is $6.1 million.
The following charts show the reserves for the General Fund and Funds supported by
the General Fund:
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
Reserves - General Fund (Unreserved)
Reserves General Fund & Supported & Su
7,000,000
...............
6,000,000
5,000,000 ..... . . . ..
4,000,000
3,000,000 ---- -- ---
2,000,000 ..........
A
1,000,000
bsidi7ed Funds (Unreserved:
..... ..... ..
M
"A
ME-
..............
M 11
'M
Actual 2007 Actual2008 Actual2009
Fiscal Year
xi
FY 2011
PROPOSED
BUDGET
2010/2011 Budget Memorandum
As shown in these charts the city has made significant progress in improving its
reserves and we hope to build on this success in the future.
Even though these reserves could be spent they must be preserved for working
capital and emergencies such as disasters, loss of revenues to the state, or sudden
economic downturns to prevent service interruptions. Reserves also help the city with
its working capital needs. Due to delayed receipt of several of its revenues such as
sales tax and property tax the General Fund has working capital needs of
approximately $4-5 million between July and December. The need for reserves is
greater in uncertain times. Reserves allow the city to better deal with the uncertain
economic challenges and help better manage the impacts.
11. FY 2010-2011 CAPITAL IMPROVEMENT PLAN
The FY 2010-2011 Budget includes substantial funding for capital projects. As we
began experiencing last year, we should continue to benefit from the current economic
times which offer significant opportunities for capital investments:
■ The labor and materials costs are still, as they were last year, substantially lower
than few years ago and the City will likely continue to get a greater value for its
money.
Investment in our infrastructure would stop deterioration and prevent expensive
repairs later.
Infrastructure spending is likely to provide some boost to local economy and
employment especially in view of our local hiring and purchasing policy.
The Budget identifies total capital expenditures in excess of $17 million. The City will
be, securing the second phase of proposition 1I B funds of approximately $11 million. in
addition. there is a possibility of obtaining a second cycle of Federal Stimulus Funds
for infrastructure. Discussions - ns with Caltrans and the IVITA have suggested that Cities
may receive about one-half of the first cycle distribution, which for Baldwin Park could
be around $1.2 million. These projects will be submitted for City Council approval if
and when funding is available.
Some projects were planned to be partially carried over from the prior fiscal year due
to their multi-year nature. Other projects will be carried over into FY 2011-2012 due to
grants or funds that will later become available over multiple cycles. Carry over
projects along with new projects have resulted in significant construction activity that
has already compared to the last couple of years when many of these projects were
either in the planning or design stages.
Staff anticipates significant construction activity in the summer months at the
beginning of FY 2010-2011 and through FY 2010-2011; a list of capital projects is
included in Attachment-2.
Xii
2010/2011 Budget Memorandum
The following tables summarize the amount of capital projects estimated in FY
2010/2011 budget by project type and by funding source:
CAPITAL EXPENDITURES - BY FUND
FY 2010-2011
No.
Name
Proposed
220
Community Development Block Grant
$298,600
241
Fed STPL
$1,240,500
242
Traffic Congestion Relief
$2,521,400
245
Proposition C
$2,550,000
270
Grant Fund
$9,577,872
Total Capital
$16,188,372
In addition to the facility and construction projects stated above, staff is hopeful that
grant funding will be awarded ' for a CNG fueling facility and a Bike Trail project, Both
of these projects add a transit benefit to our community and help to improve the
environment. In addition, other funds included in the budget are $970,200 related to
the Neighborhood Stabilization Program (NSP) money's received from the State
through Stimulus funding.
The total capital expenditure for FY 2010-2011 is estimated to be $16,188,372 and
$17,158,1-72 with the NSP moneys.
�1
The funding for these projects will come from Federal and State Grants, Proposition
I B, Proposition 42, CDBG, and Proposition C. While funding for these projects is
included in the FY 2010-2011 budget some of these are multi-year projects and some
of the project phases may be extended into the following year.
The capital spending identified in the budget is only a proposed plan and projects will
be submitted for City Council review and approval.
State raids on local funds are a big threat. While Proposition 1A approved by voters a
few years ago protects the General Fund revenues. It does not provide protection
against other funds such as Gas Tax and Redevelopment. In 2009/2010, the Baldwin
Park Redevelopment Commission will lose $1.7 million to the State. The California
Redevelopment Association (CRA) has filed a law suit against this raid. If CRA loses the
law suit, It is likely that the State may take additional funds from CDC, which is likely to
cause problems because if the CDC does not have enough funds, the General Fund
would be required to pay the money.
The 2010-2011 proposed budget does not include any impact that can result from the
State's budget crisis on our city. In FY 2009-2010, the State took about $1 million in
property taxes as loan from the City. In order to avoid any loss of cash flow, the City
Council approved the City's participation in the Prop 1A Securitization Program which
allowed local government's to issue bonds to receive the amount lost to the State; the
XIII
2010/2011 Budget Memorandum
principal and interest on the bonds will be paid by the State and the City will not incur
any costs. In addition to this shift of moneys from the State, if.the CRA is not successful
in the lawsuit mentioned above, the CDC will lose $1.7 million in FY 2009-2010 and
another $368,000 in FY 2010-2011 and could lose additional moneys in the future. The
State can also take other funds such as the Gas Tax and Proposition 42. At this point,
we do not know if there will be additional cuts or shifts from the State to local
governments in the upcoming fiscal year.
IV, FUTURE CHALLENGES
We have made significant progress towards improving our fiscal strength; however,
there are still some areas that need to be dealt with in the future:
City staffing is lower compared to prior years. We have one of the lowest
staffing compared to other cities in the region.
Investments are needed in technology and process enhancement to further
improve efficiency and manage increased service demands.
There is also need to improve the financial condition of city's Community
Development Commission to facilitate economic development and to avoid
adverse impacts as a result of State's raid on CDC funds. The Baldwin Park
Community Development Commission's financial condition could be better.
The existing Pass through agreements leave very little funds for the
developmental activities. Furthermore the CDC is not even able to support
its administrative costs, which are funded by the General Fund. The current
takeaway of more than $1.7 million in FY 2009/2010 and $368,000 in FY
201012011 from the CDC is going to make financial condition even harder.
Any further raid by the State will impact the General Fund.
• 0111-Aethe City's reserves have increased significantly they are still below
VVIII I I
desirable levels given the current economy and threat of State raid on CDC.
■ The need for investment in economic development cannot be
overemphas,-ed. The City/CDC would be expected to make investments to
attract retail and business opportunities.
• We expect increase in CalPERS retirement rates due to the significant
investment losses suffered by CaIPERS. It is expected that retirement rates
will increase by 3% to 8% in the next three years.
• The City has a significant unfunded liability for its Retiree Health care costs
Based on the actuarial valuation conducted as of January 1, 2009, the City
has an unfunded liability of $22.2 million and the City should be setting aside
and additional $1.0 million each year to satisfy this obligation.
The sudden economic downturn and the state's fiscal crisis have created new
challenges increasing the need for additional resources. We are experiencing a
greater need in the areas of police enforcement, code enforcement and graffiti
abatement; home foreclosures are also likely to create challenges and transit service
is experiencing a significant increase in demand. It is anticipated that animal control
costs are likely to increase several fold due to County's fiscal concerns. We also
anticipate additional costs in the future due to a mandated sewer master plan.
Xiv
201012011 Budget Memorandum
Lastly, we are a service organization and our ability to provide quality service depends
on the quality of our staff. While we have made significant progress in improving
process efficiencies, additional resources are needed in the long run to continue our
efforts.
During the upcoming year all departments will be reviewing the various programs in
detail in order to ensure that the City is recovering its costs and/or to further review if
there are additional efficiencies that could be implemented. Additionally, the City
would need to be very cautious with its spending and explore new and creative ways
for providing services.
Despite these challenges we are very confident that if we continue to build on our
successes and stay on course, we would be able to overcome many of these
challenges. In addition to strengthening our fiscal condition we are also working on
expanding the city's economic base to provide greater long-term fiscal stability. We
are hopeful that as the economy turns around we will see incremental development
and growth.
We have a very motivated and committed team of staff members who are
continuously looking for ways to identify more efficient ways to provide service.
Therefore, we strongly believe that we would be able to continue to move the city
forward and capitalize on the numerous opportunities that are available.
V. HOW THE CITY DID IT? ECONOMIC STABILITY A HISTORICAL PERSPECTIVE
How is Baldwin Park able to balance the budget when so many cities and counties are
struggling to deal with huge deficits? Beginning With Fiscal Year 200612007 the City
started a fiscal transition to achieve a more stable long term financial future. The focus
of this transition was not to just reduce costs but to be more effective. Consequently, a
restructuring p 1an to align ayp— pndit i r-_ with revenues and replenish reserves was
implemented, The restructuring process resulted in a combination of revenue
increases, expenditure reductions, and improved efficiencies. These proactive efforts
have made us fiscally stronger and put us in better position to deal with the current
economic crisis. As a result of these efforts:
• Our expenditures are now lower than our revenues
• The General Fund has ended the fiscal years in the black
• Our budgets are balanced (have surplus) without using reserves
• New revenues have been implemented
• Our reserves have swelled
• Our cash position has improved significantly
In addition to improving our fiscal condition our focus was to also improve
organizational effectiveness and improve program efficiencies. The restructuring,
which is an ongoing process, focuses on waste reduction, eliminating non-value,
adding activities, streamlining operations, aligning resources with priorities, and
kv
2010/2011 Budget Memorandum
greater use of technology. These initiatives have allowed us to significantly improve
efficiency of operations. Staff has implemented numerous creative processes to be
more effective and above all, we have placed significant focus on customer service.
This approach has helped us build a team that develops creative strategies and
implements programs with great motivation and compassion.
As a result of these efforts, the overall performance of the City of Baldwin Park has
become highly effective. Our current staffing continues to be approximately 22% lower
than a few years ago. However, thanks to a very dedicated team of staff members,
who are always willing to implement creative strategies our performance has
increased several fold in many areas, He ' re are some examples of the city's
successes in addition to fiscal stewardship:
a Our crime rate has declined and continues to decline
a The traffic accidents have declined
R Effectiveness of Code enforcement and Graffiti abatement have almost doubled
a Contract expenses are significantly lower
New programs and program enhancements have been developed/implemented
City operates with significantly lower staff in almost all departments while
providing comparable or better level of service (compared to comparable cities,
we have one of the lowest staffing)
Despite these successes the current economic environment has impacted the City. We
have experienced further decline in revenues and increased demand for services. While
we have a balanced budget, any future adverse impacts would require careful
consideration of services and programs. We are hopeful that the economy will turn
around and ease the economic pressure. However, we are cautious that the recovery will
be gradual and future challenges, such —1-1--ment costs, retiree health
as III retire
re
and the potential of losing additional funds to the State, would have to be dealt
with.
While we believe that overall, the city has become a very effective organization the
challenges that lie ahead require us to make it even better by identifying and
implementing innovative business practices and creative ideas. To accomplish this we
will be evaluating our operations once again to identify and eliminate activities and
processes that don't add value or for which the costs exceed the benefits. We will also
be looking at ways to improve efficiency even further.
The City of Baldwin Park has demonstrated leadership in the area of fiscal
responsibility and the credit for all of these accomplishments goes to a very dedicated
and motivated team of city staff members and City Council. The commitment and
passion of the team helps the city succeed even during tough and adverse times.
Xvi
2010/20,11 Budget Memorandum
We want to thank every city staff member for their contributions and hard work. We
also want to thank the Mayor and Council for their support and commitment, We are
confident that our collective efforts will make FY 2010/2011 an even better year in a
very exciting journey for the City of Baldwin Park.
Sincerely,
Lili Hadsell
Chief or Police
William Gaivez
Pul-AC Works Director
Leticia L r
Human Resources Manager
xvii
Lorena Quijano
Director of Finance
Manuel Cal 1 111V
Recreation and C M�iunity
Director
SE
rvices
Marc Castagnola
D
Comer unity evelopment Manager
11, —
ATTACHMENT 1
2010/2011 Budgeted Resources and gyttay
Resources
Outlav
Surplus
General Fund
24,866,000
24,776,180
89,820
GF Supported Funds
4,837,000
4,729,250
107,750
GF Subsidized Funds
1,335,100
1,335,100
Subtotal General Fund, GF Supported,
& GF Subsidized
31.038.100
30, 840, 530
197, 670
Special Funds
23,781,829
22,727,223
1,054,606
Trust Deposits
3,900
100,000
96,100
Financing Authority,.,,
3,250,257
3,237,527
12,730
Community Development
10,758,228
9,115,163
1,643,065
Housing Authority
5,040,148
5,355,100
314,952)
Subtotal
73,872,462
71,375,543
2,496,919
Capital Projects from Capital Reserves
4,085,500
{4,085,500
Total City Funds
73,872,462
75,461,043
1 (9,588,581)
ATTACHMENT 2
CAPITAL EXPENDITURES - BY PROJECT
FY 2010-2011
Construction - Facilities
$9,502,872
MTA Transit Center (multi- ear
$9,502,872
Construction - Street improvements
$6,685,500
Ramona A Street Improvements (ARRA)
$950,000
Ramona B Street Improvements (ARRA)
$1,500,000
Los Angeles Street (STPL)
$1,240,500
CDBG Street Improvements, FY 10111
$350,000
Street Improvements TCRF Phase 1
$1,250,000
Overlay
Merced, Ramona to Big Dalton
Baldwin Park, Ramona to Palm
Frazier, Amar to Judith
Root, Willow to City Limit
Chip Seal
Various Locations
Traffic Safety
Traffic Signal (Badillo/Willow)
Street Improvements TCRF Phase 2
$675,000
Slurry Seal
Various Locations
Overlay
Olive (s/s), Baldwin Park to Stewart
Pedestrian Facilities
$575,000
Walkability Improvements
Speed Humps
Stop Signs Program
Bulb Outs, Speed Tables, Safety Crossings
Traffic Safety/Calming
$145,000
Speed Feedback Signs
Crosswalk Alert Signs
School Zone Flashers
Pending Grants
MTA Parking Technology
ARRA Cycle 2
San Gabriel River Bikeway Project
CNG Fast-Fill Fueling Facility
. .......
Total
$16,188,372