HomeMy WebLinkAboutRPT 3 MID YR BUDGET RVW 2-22-83AGENDA
DATE: Feb. 16, 1983
REPORTS
NO. 3
2-22-83
Inter-eom
TO:
FROH:
SUBJECT:
HONORABLE MAYOR AND CITY COUNCIL
BILL HUSTON, CITY MANAGER
MID YEAR BUDGET REVIEW
RECOMMENDATION:
That the City Council, following its review of the attached report from the
Finance Director, continue this item to its March 21, 1983 meeting.
As pointed out in the report, the key factor affecting the 1982-83 General
Fund budget is sales tax revenue. Sales tax revenue to be received from
the State next month will provide a more accurate measure of the City's
financial situation. At that time additional steps could be taken to
reduce expenditures if necessry.
DATE:
February 15, 1983
Inter-Corn
TO:
FROM:
SUBJECT:
Bill Huston, C ity/~age~/
Attached are various schedules that detail the revenue, expenditure, and fund
balance projections for fiscal year 1983, based on information available at
mid-year. In general, the City as a whole will fair well primarily due to the
sale of tax increment bonds in the Tustin Community Redevelopment Agency and the
rate restructure in the Water Fund. The General Fund, with its dependency on
State subventures and economically sensitive sales tax income, has the potential
to realize a significant loss in revenues during 1982-83. There are adequate
reserves available to compensate for this anticipated shortfall, but as discussed
in previous staff meetings, steps should be taken to correct this situation during
the 1984 fiscal ~ear budget process.
B ri efl y:
Revenues
General Fund -
The primary area of concern in the General Fund is sales tax. At
this time I am projecting a shortfall in this account of $455,000.
The State Board of Equalization has made several changes in the way
they estimate collections and thus their advances, as well as
changes in advance percentages. These changes make it extremely
difficult to show real trends in sales tax collections. The
mid-March balance payment will tell us whether or not the Christmas
sales helped or hindered projections through 6-30-83.
New construction tax projections have also contributed to the
Fund shortfall. The obvious state of the economy has impacted new
construction severely.
Interest income is also a contribution to the shortfall in
revenues. The decreased cash as a result of lower sales tax
collections, etc. impacts surplus cash available for investments.
Roughly $85,000 of the estimated $100,000 negative variance in
interest income can be tied to the $850,000 loss of sales tax and
construction tax income.
There is the potential that both sales tax and consequently
interest income will change positively before 6-30-83. There
simply is not enough informatio'n available at this time to change
my projections.
All other accounts in the General Fund are developing within
reasonable variances, but there remains the uncertainty of the
Bill Huston, City Manager
Mid-Year Budget Review
February 15, 1983
page 2.
motor vehicle in-lieu fees in light of the States' fiscal dilemma,
Revenue Sharing - It appears that we will receive approximately $61,000 more than
budgeted. Revenue sharing has been included in the President's new
budget at existing levels. There appears to be optimism that it
will be funded for at least another three or four years.
Gas Tax -
The only major variable in the gas tax fund would be from FAU
funding sources. It does not appear that any significant
construction will take place on Moulton Parkway which will preclude
some FAU funding for this year.
Park Development - No significant variance.
Sewer Trust - No significant variance.
Beautification - No significant variance.
Park Bonds - No significant variance.
Civic Center Bonds - No significant variance.
Tustin community Redevelopment Agency '- The obvious change in RDA is the bond ale
which was not appropriated in the original budget.
Water Fund -
As a result of the new rate structure that was adopted by Council
in January, there will be a positive variance in the Water Fund of
approximately $178,000. Prior to the restrucure we were projecting
a negative variance in the Water fund of roughly $250,000.
Expenditures
General Fund - Net General Fund expenses are projected to come in 5% under budget
for operations. Contributing to this savings is a $123,000 credit
from PERS for January through June 1983.
Capital improvements for the General Fund are all within reasonable
variances.
Revenue Sharing - No significant variance.
Gas Tax - It is anticipated at this time that the Moulton Parkway project will be
just beginning to impact expenses by 6-30-83. It will be carried
over to 1983-84. All other projects are within reasonable
variances.
Bill Hus:on, City Manager
Mid-Year Budget Review
February 15, 1983
page 3.
Park Development - No significant variance. All projects in the PD Fund are
carried over from previous years.
Beautification - No significant variance.
Tustin Community Redevelopment Agency - The major project of the RDA this year has
been the E1 camino Real reconstruction. There have been some over
runs, but other projects are within reasonable variances.
Water -
Operations is projecting a savings of approximately $100,000 in
purchased water and power. I am projecting an over run of $66,000
to cover additional administrative expenses and interest payable to
the General Fund for cash advances. Over all, the Water Fund is
projected as having a slight positive variance for operating and
capital expenses.
In suff~ary, the City as a whole has a good fiscal posture projected into the
1983-84 fiscal year. We will continue to monitor the General Fund in anticipation
of significant change in sales tax revenue. As is the case with most cities in
California, we should begin to seek out new revenue sources that will minimize
large fluctuations in the annual revenue stream and offset reductions in
subventures subject to the whims of the State.
RN:mm
MID-YEAR 1982-83 REVIEW
PROJECTED FUND BALANCE ANALYSIS
FUND
AUDITED
BALANCE
7-1-82
PROJECTED
ESTIMATED ESTIMATED TRANSFERS BALANCE
REVENUE EXPENDITURES IN/(OUT) 6-30-83
General $2,790,088
Revenue Sharing 292,624
Gas Tax 621,512
Park Develop-
ment 61,750
Sewer Trust <25,344>
Beautification 87,432
Park Bond 279,381
Civic Center Bond 117,539
RDA 441,141
Water <253,568>
· $ 7,919,074 $ 8,616,996
340,00 449,916
1,173,005 1,096,714
-0- 121,458
5O0 -0-
30,000 38,000
97,120 110,700
64,117 69,375
5,845,333 2,750,790
3,854,554 3,371,812
Subtotal $4,412,575 $19,323,703 $16,625,761
$387,376
(157,376)
-0-
-0-
30,000
-0-
(100,000)
(100,000)
-0-
$2,479,542
182,708
540,427
<59,708>
<24,844>
49,452
265,801
112,281
3,435,684
128,174
$7,110,517
(INTERNAL FUNDS)
Equipment Replace-
ment $ 223,983
Health 99,995
Risk Management 230,651
Capital Improvement 76,529
$ 178,000 $ 88,000
350,210 320,000
478,693 330,000
20,000 -0-
-0-
$ 313,983
130,205
379,344
96,529°
Subtotal $ 631,158 $ 1,026,903 $ 738,000 -0- $ 920,061
1982-83 REVENUE PROJECTIONS
FUND
General
Revenue Sharing
Gas Tax
Park Development
Sewer Trust
Beautification
Park Bonds
Civic Center Bonds
RDA
Water
TOTAL
1982-83
BUDGET
$ 8,587,967
279,000
1,633,876
=0-
3,000
30,000
8,500
55,500
1,250,000
3,676,640
$15,597,483
6-30-83
PROJECTION
$ 7,919,074
340,000
1,173,005
-0-
500
30,000
97,120
64,117
5,845,333
3,854,554
$19,323,703
VARIANCE
OVER/<UNDER>
$ <668,893>
61,000
<460,871>
<2,500>
15,620
8,617
4,595,333
177,914
$3,726,220
A A
o,o, ooo ~
~N~ I ~ O0 1000 ~
0
~ .t.~ c,,- .,t,o
000 ~0 ',0
GOVERNMENTAL FUNDS:
10.
30.
40.
CAPITAL IMPROVEMENT PROJECTIONS
BY PROJECT
1982-83
FUND BUDGET
Public Facilities
'1. Misc. City Hall Modi-
fications GF $ 3,150
2. Computer Room Air-
conditioning - GF 3,900
3. Community Center Re-
habilitation B 14,200
4. Exterior Paint-City Hall B 19,000
Subtotal ~
Beautification Projects
'1. General Street Light Program
a) East side of Red Hill,
Valencia to North
boundary of MCAS B $ 8,350
b) Andrews St. Lighting B 650
Subtotal ~
Community Services Facility
*1. Master Plan PD $41,718
*2. Columbus Tustin Im-
provements PD 32,000
*3. Peppertree Park Im-
provements PD 12,900
*4. Centennial Park Improv-
ments PD 19,000
*5. Frontier Park Improvements PD 11,500
*6. Magnolia Park Improvements PD 12,~00
*7. Pinetree Park Improvements PD 5000
8. Misc. Park Improvements GF 4,000
Subtotal $138,618
6-30-83
PROJECTED
$ 9,764
3,700
10,000
19,000
$ 8,350
65O
$41,718
17,367
6,230
21,314
27,854
6,975
-0-
$121,458
6-30-83
STATUS
Comp.
Comp.
Comp.
Comp.
Possible
re-budget
Poss. Rebudget
Comp.
Comp.
Comp.
Comp.
Del eted
Comp.
Comp.
Deleted
* Carryover from 81 82
** To be rebudgeted 83-84
GOVERNMENTAL FUNDS (Continued):
60.
1.
~'2.
1982-83
FUND BUDGET
Transportation Facility
Major Maintenance Program RS $255,000
Moulton Parkway Re-
al i gnment GT 568,300
*3. Newport Ave. Extension GT 30,000
4. Warner Ave. GT 8,100
Transportation Facility (Cont.)
*5. Irvine Blvd. Widening
Easterly of Ranchwood GT 150,000
*6. Irvine Blvd., Prospect
to Newport GT 355,000
7. Bus Bench, OCTD Routes RS 4,500
8. Ramps for Handicapped GT 9,486
Subtotal .~ $1,380,386
65. Traffic Controls
'1. Irvine Blvd., Yorba St.
to Red Hill Ave. GT 417,500
*2. Irvine Blvd. at "B" St. GT 57,000
**3. Red Hill Ave. and Barranca
Road GT 31,000
**4. Walnut Ave. at Oxford Ave. GT
**5. Red Hill Ave. at Walnut Ave. GF
**6. Newport Ave. at Sycamore Ave. GF
Subtotal
52,000
29,000
52,000
$638,5O0
6-30-83
PROJECTED
$255,000
37,000
30,000
-0-
150,000
355,000
4,410
8,614
$585,024
417,500
57,000
-0-
41,600
Z3,200
41,600
$580,900
6-30-83
STATUS
Comp.
Comp.
Rebudget
Comp.
Comp.
Comp.
Comp.
Comp.
Comp.
Comp.
Possible
Carry over
80% Comp.
80% Comp.
80% Comp.
* Carry over from 81-82
** To be rebudgeted 83-84
GOVERNMENTAL FUNDS (Continued):
70.
Flood Control Facilities
Easement Drain, Northerly of
Main St. between Pasadena
and Costa Mesa Freeway
**2. Santa Fe and Industrial Way
at Red Hill Avenue
**3. Red Hill Ave. Drain #2
Walnut Ave. to Mitchell Ave.
Subtotal
1982-83 6-30-83 6-30-83
FUND BUDGET PROJECTED STATUS
RS $21,000 $6,300
RS 13,000 3,900
GF 6,000 1,800
GF 237,000 71,100
$277,000 $83,100
30% Comp.
30% Comp.
30% Comp.
TOTAL GOVERNMENTAL FUNDS
$2,433,754 $1,421,946
* Carry over from 81-82
** To be rebudgeted 83-84
30.
*4.
40.
60.
CAPITAL IMPROVEMENT PROJECTIONS
BY PROJECT
TUSTIN COMMUNITY REDEVELOPMENT AGENCY
1982-83 6-30-83 6-30-83
FUND BUDGET PROJECTED STATUS
Beautification Projects
E1 Camino Real ID signs RDA
10,000 $ -0-
E1Camino Real Landscape/
Furniture
RDA 40,000 -0-
*7. "C" Street Plaza
8. Irvine Blvd. Center
Island Landscape
Subtotal
Community Services Facilities
Columbus Tustin Park
Development - A&E
*2. Columbus Tustin Rec.
Facility - A&E
Subtotal
Transportation Facilities
E1 Camino Real Parking
Faci 1 i ty
*2. Alley Reconstruction, east
of E1 Camino Real
*6. E1 Camino Real Recon-
structi on
RDA
RDA
RDA
RDA
50,000 50,000
55,600 55,600
$155,600 $105,600
$'.12,450 $ 10,000
100,000 80~000
$112,450 $ 90,000
I ncl uded in
E1 Cami no
Reconstruct
Included in
E1 Camino
Reconstruct
Comp.
Comp.
Comp.
Comp.
RDA $684,000 $700,653 Comp.
RDA 1,200 1,197 Comp.
RDA 1,300,819 1,561,000 Comp.
* Carry over from 81-82
Tustin Community Redevelopm:nt Agency (continued)
65.
*3.
*4.
'1.
2.
FUND
Transportation Facilities (continued)
8. Prospect Ave. Road
Widening
Alley Reconstruction, south
of First Street
Alley Reconstruction, west
of E1Camino Real
Subtotal
Traffic Control Facilities
Irvine Blvd. at Fashion Ln.
E1Camino Real at
Sixth Street
Subtotal
Land Acquisition
1982-83 6-30-83 6-30-83
BUDGET PROJECTED STATUS
RDA S 14,000 $ 10,000 Comp.
RDA 6,040 6,039 Comp.
RDA 1,005 1,001 Comp.
$2,007,064 $2,279,890
RDA $ 33,600 $ 33,600
RDA 53,100 53,100
$ 86,700 $ 86,700
RDA 119,000 119,000
Comp.
Comp.
TOTAL RDA
$2,480,814 $2,681,190
* Carry over 81/82
90.
CAPITAL IMPROVEMENT PROJECTIONS
*4.
*5.
*7.
10.
11.
Water Supply and Distribution
Mitchell Ave. east of
Newport
Red Hill at Walnut,
Well Site
Red Hill/Main Replace-
ment
Vayano Way
Palomar Way/Olympia Way
Nisson Road east of
Red Hill Ave.
Misc. S~tem Expansion
for New Development
Subtotal
BY PROJECT
TUSTIN WATER SERVCICE
1982-83
FUND BUDGET
6-30-83
PROJECTED
WF
WF
WF
WF
WF
WF
6-30-83
STATUS
$ 2,500 $ 2,500 Comp.
22,045 20,456 Comp.
-0- 769 Comp.
20,000 20,000 Comp.
80,700 80,700 Comp.
38,200 38,200 Comp.
-0- 17,706 Comp.
163,445 $ 180,331
GRAND TOTAL ALL FUNDS
$5,128,013 $4,283,467