HomeMy WebLinkAboutPH 1&2 83/84 BUDGET 10-17-83DATE:
SUBJECT:
October 11, [983
PUBLIC HEARINGS
NOS. 1 and 2
10-17-83
Inter-Corn
BILL HUSTON,.CITY MANAGER
RON NAULT, FINANCE DIRECTOR
83/84 PROPOSED BUDGET INFORbtATION
Based on Council's request for additional information concerning the proposed
1983-84 fiscal year budget, the following information has been compiled:
BUDGET OVERVIEW
RECOMMENDED CHANGES TO PROPOSED
1983-84 BUDGET
Proposed 1983-84 expenditures for all funds = $21,953,056 (revised from
preliminary draft budget total of $22,395,190).
General Fund expenditures of $9,259,558 (revised from preliminary draft
budget total of $9,474,878) are 2.7% move than 1982-83.
General Fund expenditures less increases in fire and trash contracts are
3.1% less than 1982-83~
Proposed General Fund budget provides for 3.71 employees per 1,000
population. This is the lowest number per 1,000 population since 1977-78
and fewer than in 1973-74, 1974-75 and 1975-76. Since 1973-74, population
has increased 49% and street miles have increased by 37%.
Three General fund positions (Police Officer, Police Clerk and Maintenance
Worker) will be vacant until January 1984.
* Traffic Engineer position to be eliminated and replaced with contract
service at estimated savings of 50%.
The following details ~he staff's recommended changes to the proposed Budget
submitted to Council back in May. This information is basically the same as the
presentation you made to Council October 5th.
GENEP~L FUND P, EVISIO#S:
REVISED REVENUES/TP~ANSFERS
* Reduce Sales Tax $ (346,500)
* Eliminate Trash Fee (310,630)
* Increase New Construction Tax 88,000
* Transfer Capital Improvement Fund 129,000
* Equipment Replacement Fund Debt to GF 151,000
Revised Estimate of Total Resources
$9,311,349
/'"- GENERAL FUND CONT'I'NUED
page 2
REVISED EXPENDITURES:
* Capital Improvements to Revenue Sharing
* Reduce Trash Collection Costs
* Increase Election Costs
* Computer Needs Assessment
Revised Expenditures
FUND BALANCE
$ (201,300)
(30,630)
1,610
15,000
$ 9,259,558
Fund/Balance 6-30-83 (audited)
Fund Balance 6-30-84 (projected)
Increase to Balance
GAS TAX FUND REVISIONS:
$ 2,438 257
2,490,048
51,791
* Reduce Moulton Parkway Project $ (18,500)
* Reduce Ne~ort Avenue Extension Project (55,000)
* Reduce Myford/Michelle Project (58,000)
* Eliminate Red Hill/Barranca Signal (31,000)
* Transfer From RDA Fund 97,600 **
(Reimbursement for traffic signals)
Revised June 30, 1983 Balance
105,925
**Based on final project accounting of Irvine Blvd. street project and traffic
signal at Irvine and Fashion Lane, completed after issuance of 82-83 audit
report.
REVENUE SHARING FUND REVISIONS:
PROPOSED EXPENDITURES
* Major Street Maintenance $ 257,000
* Pasadena Avenue Drain 15,000
* Santa Fe Catch Basin 14,600
* Police Communications Computer Equipment 30,000
* City Hall Improvements 10,000
* Red Hill/Walnut Signal 35,000
* Newport/Sycamore Signal 49,000
* Red Hill Storm Drain 237,000
$ 647,600
ITEMS REDUCED/ELIMINATED
* Major Street Maintenance $ 35,000
* Median Paving 16,315
* General Fund Capital Outlay 19,281
* Bus Benches 4,400
* Police Space Needs 25,000
* City Computer Study 15,000
* Phone System Analysis 10,000
* City Hall Improvements 9,281
* City Traffic Study 41,000
$ 17b,2//
PROJECTED JUNE 30, 1984 BALANCE $ 25,038
REQUESTS FROM OUTSIDE AGENCIES $ 71,300
TOWN ~NTER RDA R~ISIONS:
REVISED EXPENDITURES/TRANSFERS
* Transfer to Gas Tax Fund (signals) $
* Holt/Newport Conduit
* Traffic Study
FUND BALANCE
June 30, 1983 (audited)
Projected June 30, 1984
B~UTIFICATION FUND ~VISIONS:
INCREASE EXPENDITURES TO INCLUDE MEDIAN PAVING $ 53,280
STATEgENT OF FUWD BALANC£S
6-30-84
page 3
(97,600)
(20,500)
(41,000)
$ 5,180,091
5,072,838
The attached Schedule A projects fund balances through 6-30-84 based on the
previously detailed revisions and breaks out separate funds for RDA debt service
and water debt, .surcharge, funds.
SLIII~Y OF REYEJJUES & EXPEIIDITURES
198:~-83
The attached Schedule B details the audited 1982-83 revenues and expenditures by
fund.
Schedule A
STATEMENT OF FUND BALANCES
6-30-84
AUDITED
BALANCE ESTIMATED
FUND 6-30-83 REVENUES
TRANSFERS
APPROPRIATIONS IN/(OUT)
ESTIMATED
BALANCE
6-30-84
General $ 2,438,257 $ 8,521,349
Revenue Sharing 289,638 383,000
Gas Tax 615,218 5,588,857
Park Development (15,084) -O-
Sewer Trust (24,086) 500
Beautification 80,545 30,000
~rk Bonds 271,541 72,912
Civic Ctr. Bonds 112,403 55,590
Town Center RDA
Capital Projects 5,180,091 425,000
RDA Debt Service(3) 2,121,713 1,596,400
Water 97,355 3,483,000
Water Debt 323,500 897,000
Equipment 473,264 176,000
Health 177,790 343,263
Risk Management 512,321 234,260
Capital Improvement 104,117 24,883
$ 9,259,558 $ 790,000 $ 2,490,044)
647,600 -0- 25,038
6,015,750 (82,400)(1) 105,925
-0- -0- (15,084)
-0- -0- (23,586)
75,280 (30,000) 5,265
110,700 -0- 233,753
67,375 -0- 100,618
839,700 (297,600)(2) 4,467,791
890,000 -0- 2,828,113
2,950,740 (100,000) 529,615
397,500 -0- 823,000
112,000 (151,000) 386,264
320,000 -0- 201,053
151,000 -0- 595,581
-0- (129,000) -0-
TOTAL $12,758,583 $21,832,014 $21,837,203 $ -0- $12,753,394
(1) Net of $180,000 out to GF and $97,600 i~n from RDA
(2) Transfer out to GF $200,000 and $97,600 out to GT.
(3) In order to clearly state the RDA Fund Balances, the Debt Service Fund has been added. This
fund has not been reflected in previous statements (see page 39 of Audited Financial Report).
Schedule B
S~Y OF REVENUES & EXPENDITURES
198~-1983
FUND
BEG. BALANCE
7-1-82
ACTUAL
REVENUES
EXPEND'~TURES
END BALANCE
6-30-83
General
Revenue Sharing
Gas Tax
Park Development
Sewer Trust
Beautification
Park Bonds
Civic Ctr. Bonds
Town Ctr. RDA
"~Capital Projects
,,OA Debt Service
Water
Water Debt
Equipment
Health
Risk Management
Capital Improvement
$ 2,790,088
292,624
621,512
61,750
(25,344)
87,452
279,381
117,539
891,141
-0-
{253,568)
223,983
99,995
230,651
76,592
$ 8,252,214
372,647
1,160,014
8,700
1,258
45,885
106,423
65,579
7,772,583
2,778,489
3,235,863
419,250
366,541
390,515
526,657
27,525
$ 8,604,045
375,634
1,166,308
85,534
52,792
114,263
70,715
3,483,633
656,776
2,884,940
95,750
117,259
312,720
244,987
$ 2,438,257
289,637
615,218
(15,o84)
(24,086)
80,545
271,541
112,403
5,180,091
2,121,713
97,355
323,500
473,265
177,790
512,321
104,117
TOTAL $ 5,493,796 $25,530,143 $18,265,356 $12,758,583
page 6
TUSTIN COI~UNITY REDEVELOP#ENT
AGENCY
The cash balance of the Tustin Community
Redevelopment Agency as of 6-30-83 was
$ 5,286,649
The unappropriated reserve, fund balance,
of the Tustin Community Redevelopment
Agency as of 6-30-83 was $ 5,180,091
(See page 42 of 82/83 Audit Report)
The accounting for the funds held by the fiscal agent of the Tustin Community
Redevelopment Agency are detailed in the Debt Service Fund. (See page 39 of
82/83 Audit Report.)
The cash balance of the Tustin Community
Redevelopment Agency Debt Service Fund as
of 6-30-83 was
$ 2,054,531
Interest earned on monies held by fiscal
agent during 82/83 were
$ 181,724
According to Health & Safety Code requirements, tax increment received by
Redevelopment Agencies is to be transferred directly to the fiscal agent to be
used for required debt service. These funds are accounted for in the Agency's
books within a separate fund known as the Debt Service Fund.
The existing RDA fund has been renamed the TCRDA Capital Projects Fund. You
will see this referenced throughout the 82/83 Comprehensive Annual Financial
Report. This fund is used exclusively-for the accounting of the operating and
capital improvement expenditures of the Agency.
There are only three sources of new revenue available to the Capital Projects
Fund; new bond proceeds; interest earned On investments of idle cash of the
fund; and the transfer of resources not needed by the fiscal agent to satisfy
the obligations to the bond holders as spelled out in the indenture.
We are estimating interest income to the capital projects fund of $425,000 for
fiscal 84. Based on the 1982 Series A RDA bonds indenture, we must supply the
fiscal agent a certified letter prepared by an independent auditor stating what
amounts are to be considered surplus and subject to transfer to the Capital
Projects Fund, and, that these funds are needed to enable the Agency to carry
out its program.
There is a question in our Auditor's mind regarding the Agencies need in light
of the current balance in the Capital Project Fund. We may want to postpone any
request of this nature until such time that we have sufficiently committed the
existing resources, satisfied the three year arbitrage requirement and have
incurrd additional debt through the use of General Fund short term loans for
additional RDA projects.
page 7
TUSTIN COIICUNI'rY P. EDEYELOPNENT AGF. IICY EIMllU~EMF. NT
TO GEli[~JU. RIND Fa Ai)MINISTRATIV[ EXPE~ES
The following details the incurred expenses, by department, of the General Fund
not directly charged to the Redevelopment Agency for fiscal 82-83:
OEBT DESCRIPTION HOURS AMOUNT
102 City Clerk 78 $ 4,021
103 City Attorney 312 4,745
201 Administration 310 15,639
202 Finance 416 46,292
203 Administrative Services 156 15,693
301 Planning 390 39,013
302 Building 150 10,688
40 Public works Administration 159 16,419
$ 152,510
WATER BOND CAStl FLOWS
Attached are several graphs depicting the cash receipts and cash disbursements
of the water fund from November, 1980 through June of 1984. The graph of 82/83
and 83/84 are shown net of the surcharge.
The current cash situation in the water fund can directly be traced back to the
first eight months that the system was under the control of the City. Keep in
mind that the rates were not adjusted until July of 1981 and that there were
significant long term liability payments made from current revenues.
The graph of cash transactions for 80-81 illustrates the activity during this
period. The following details the significant disbursements made from the then
existing revenue stream:
December 1980
$ 52,000
26,000 .
Bond Interest
Property Taxes
January 1981 76,377
Accrued Pump Tax
March 52,000
86,800
Bond Interest
Cash to Bond Holders
April 300,000 Maturing Bonds
June 48,000
131,000
Bond Interest
Developer Advances
page 8
Tustin Water Works would have had to issue new debt in order to meet their
obligations for bond redemption and developer reimbursements. In essence, we
did the same thing by borrowing cash from the General Fund to cover the cash
flow needs of the water fund.
At this time, the water fund owes the General fund $713,600 broken out as
follows:
Cash Transfer from general fund
Interest on borrowed cash 81-82
Interest on borrowed cash 82-83
Administrative expenses 82-83
$ 534,300
63,200
53,800
62,300
1983 NON-PROFIT CORPORATION
LEASE REVEgUE BONDS
The only impact on the water fund resulting from the recently issued non-profit
corporationn lease revenue bonds is the reimbursement to the City addressed in
the Official Statement as $300,000. Based on the most recent accounting of
issuance costs, the balance of the bond proceeds available for reimbursement to
the City is approximately $200,000. The Council can reduce the water funds
liability to the General Fund by only this amount, or they can reimburse the
full $300,000 by using part of the cash balance of the water debt service fund.
DEBT SERVICE SURCHARGE
Based on concerns raised by Council regarding a separate accounting of the
resources derived from the Debt Service Surcharge, a separate fund will be
created for this puprose. In order to be able to respond in a reasonable manner
to questions that may be raised involving these funds, I would not propose to
utilize surcharge balance to supply cash flow for the water enterprise fund.
Idle cash in the surcharge fund will be investd at the highest rates possible
and interest income will be included with other resources to satisfy debt
service and lease obligations.
Due to the limitations of our utility billing system we do not have the ability
to use the computer to break out cash receipts into surcharges, demand charges,
etc. It would take a considerable amount of program modification to incorporate
this task into the system. It would also take considerably longer to post daily
cash receipts if the various changes were broken out separately.
page 9
A manual calculation of surcharge revenue is required using the following
methodology:
METER NET SEmi-ANNUAL SUR-CHARGE
SIZE llETERS SURCHARGE REVENUE
5/8" 9,968 $ 15.00 $ 149,520
1" 2,487 37.50 93,263
1 1/2" 192 75.00 14,400
2" 235 120.00 28,200
3" 23 225.00 5,175
4'~ 13 375.00 4,875
6" -0- 750.00 -0-
$ 295,453
10,318 Multiple Units x $1,200 Semi Annual
123,816
TOTAL ALLOCATED TO DEBT SERVICE FUND 82/83
$ 419,249
I believe that all issues raised by the Council at the October 5th meeting have
been addressed. An~ additional questions can be answered at the meeting October
17th.
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