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HomeMy WebLinkAbout75A1 - FY 05-06 CITY BUDGET CITY COUNCIL MEETING DATE: ~ ~ REQUEST FOR COUNCIL ACTION CLERK OF COUNCIL USE ONLY: JUNE 6, 2005 TITLE: PUBLIC HEARING - FISCAL YEAR 2005-06 CITY BUDGET APPROVED o As Recommended o As Amended o Ordinance on 15t Reading o Ordinance on 2nd Reading o Implementing Resolution o Set Public Hearing For .~' "\ /d //// (~/iL~ </l~,<--~/ CITY MANAGER CONTINUED TO FILE NUMBER RECOMMENDED ACTION 1. Adopt an ordinance appropriating monies for the fiscal year commencing July 1, 2005. 2. Adopt a resolution amending City's Basic Management Classification and Compensation plan (Resolution No. 91-066) to delete one classification title. DISCUSSION The 2005-2006 fiscal year budget will enable the City to fulfill its purpose of providing quality service to enhance the safety, livability and prosperity of our community. In light of this purpose, this budget emphasizes public safety, quality development standards, effective community-driven code enforcement, and a positive partnership with the business and educational communi ties as its external priori ties; while quality customer service and sound internal systems serve as internal priorities. Given these objectives, the total annual proposed budget for Fiscal Year 2005-2006 is $404,220,000. The City continues to address the challenge of meeting demands that exceed resources in a financial environment that has been dominated by the actions of the State in two major areas: increasing retirement costs and diverting local government revenues. In an effort to resolve a projected $17 billion structural budget deficit in 2004-2005, the State again targeted City revenues as a part of the solution to its problem. In response, the councils and staffs of cities throughout the State worked together with the League of California Cities to take the actions necessary to place a measure on the November ballot that would protect local government revenues from being diverted by the State. During the course of a number of months, a compromise proposal was reached and endorsed by the Governor. As a result, Proposition 1A was placed on the ballot and approved by the voters in November 2004. Although the passage 75A1-1 FY 2005-06 City Budget June 6, 2005 Page 2 of this measure limited the ability of the State to divert future local government revenues, it allowed the reallocation of an additional $3.0 million of the City's property tax revenues to the State for the Educational Revenue Augmentation Fund (ERAF) in both the 2004-2005 and 2005-2006 fiscal years; this results in a total of $10 million in General Fund property tax reductions for the coming fiscal year which will be coupled with another $3.4 million diverted from redevelopment tax increment revenues. The State's actions to address its fiscal crisis, coupled with the impact of the investment losses in the State-run retirement system, have resulted in a pronounced impact on the City's budget. Given this financial environment, the City's efforts in preparing the proposed 2005-2006 fiscal year budget have been focused on resolving the dilemma of meeting the demands for services and infrastructure improvements while coping with declining revenues and increased retirement system costs. Specifically, the challenge of balancing the 2005-2006 General Fund budget was to address a projected deficit resulting from expenditures exceeding revenues by approximately $23 million. This budget proposal responds to that challenge through a balanced approach of increasing revenues and decreasing expenditures. The proposed 2005-2006 budget for the General Fund, without including redevelopment and other pass-throughs, totals $197,803,660, which constitutes a growth in general revenues of less than one percent over the past fiscal year. Additionally, this budget incorporates a cost of services adjustment of five percent in general and safety related fees and 4 percent in the water rate. In terms of expenditures, the General Fund budget supports the functions most commonly associated with city government: police, fire, recreation, library, planning and building, street maintenance, and general city administration. These services are being provided to an increasing population; according to the State Department of Finance, the population of the City in 2004 is 351,697, which constitutes a 55 percent increase over the past twenty years. Although the City's population has substantially increased over that time period, we have reduced our overall supervisory and management pos i tions by over 20 percent. The subj ect resolution implements a budget reduction of the managerial workforce by one additional position. This brings the total workforce allocation to 1,713. This workforce figure equates to a ration of 4.8 employees per 1,000 residents and demonstrates a significant improvement in operational efficiencies over the past several years; in FY 1986-87, the ratio was 7.5 employees per 1,000 residents. Through a combination of reductions in our workforce, maintaining a number of positions vacant and generating savings through systems improvements resulting from our continuous improvement efforts, the City continues to maintain its position of being 75A1-2 FY 2005-06 City Budget June 6, 2005 Page 3 the most efficient at providing services when compared to the 11 largest cities in California and the 100 largest cities in the country. FISCAL IMPACT with approval of the proposed budget, $404,220,000 will be appropriated to the City's various departments, programs and enterprise activities. Of that amount $197,803,660 will be appropriated to the various General Fund operating departments, with an additional $9,153,195 for redevelopment pass-throughs, for a total of 206,956,855 proposed for the General Fund. ~~~~,.~ > \\ ~ ~- , Francisco Gutierrez Executive Director Finance & Management Services Agency 7 SA 1-3 ORDINANCE NO. NS-2687 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROPRIATING MONIES TO THE SEVERAL OFFICES, AGENCIES AND DEPARTMENTS OF THE CITY FOR THE FISCAL YEAR COMMENCING JULY 1,2005 THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES ORDAIN AS FOLLOWS: SECTION 1: The City Council of the City of Santa Ana hereby, finds, determines and declares as follows: A. The City Manager has prepared and submitted to this Council, pursuant to the provisions of Section 605 of the City Charter, a proposed budget for expenditures for the fiscal year commencing July 1, 2005, together with his budget letter dated June 6, 2005. B. In accordance with Section 606 of the City Charter, a public hearing has been held upon the said proposed budget of expenditures after notice of such public hearing had been published in the manner prescribed in said Section 606 of the City Charter. C. The proposed budget of expenditures duly submitted and considered as hereinbefore stated, together with any supplemental revisions and amendments thereto, was approved, adopted and fixed by the Council as the annual budget of the City for the fiscal year commencing July 1, 2005, in the amounts and for the funds, purposes, functions, department activities and programs as therein set forth. Said adopted budget, including said supple-mental revisions and amendments, together with a copy of this appropriation ordinance, shall be placed in the official files of the Clerk of the Council. SECTION 2: There are hereby appropriated to the several offices, agencies, and departments of the City, being the respective objects and purposes specified in that certain document entitled "City of Santa Ana Annual Budget 2005-2006," a copy of which is on file in the Office of the Clerk of the Council, out of the various funds of the City, for fiscal year 2005-2006, the several amounts stated as proposed expenditures from said funds, respectively, in those columns of said Budget that are headed "Approved Budget 05-06." Each aggregate of expenditures so specified in said Budget for said fiscal year for each program shall be deemed to be an appropriation for a single object and purpose within the meaning of Section 609 of the Charter, except that as to any office, department, or agency of the City for which more than one program is designated in Section 2 (General Fund Operating Budget) of the said Budget, the aggregate expenditure authorized for all programs in said Section 2 of each such office, Ordinance NS-2687 Page 1 of 3 7 SA 1-4 department, or agency shall be deemed to be an appropriation for a single object and purpose within the meaning of Charter section 609. SECTION 3: The appropriations hereby made shall constitute the maximum expenditures authorized for the several offices, agencies, and departments opposite which the amounts of such appropriations are shown in such Budget. SECTION 4: No warrant shall be issued or indebtedness incurred for any purpose which exceeds the unexpended balance of the appropriations established by this ordinance, unless such appropriation shall have been amended or supplemented by the City Council in the manner set forth in Section 609 of the Charter. The City Manager is hereby authorized to make revisions between the items included within any such appropriation if, in his opinion, such revisions are necessary and proper. SECTION 5: The Executive Director of Finance and Management Services is hereby authorized to transfer monies in accordance with the Interfund Transfers listed in said Budget in such amounts and at such times during the fiscal year as he may determine necessary to the competent operation and control of City business, except that no such transfer shall be made in contravention of State law or City ordinance or exceed in total the amount stated herein or as amended by the City Council. SECTION 6: One certified copy of this appropriation ordinance together with a certified copy of each amendment thereto shall be transmitted by the Clerk of the Council to the Executive Director of Finance and Management Services. SECTION 7: Upon and from the effective date of this ordinance, expenditures of monies appropriated hereby are authorized beginning July 1, 2005. SECTION 8: The Clerk of the Council shall cause the title of this ordinance to be published as required by law. SECTION 9: All presently applicable documentation pertaining to the number, titles, qualifications, powers, duties, or compensation of officers or employees of the City, which has been previously approved by resolution or order of the City Council and which is currently on file with the Executive Director of Personnel Services is incorporated herein and is hereby approved. The City Manager is authorized to create, alter, or abolish any position of employment, or the number, title, qualifications, powers, duties, or compensation thereof, when such action is appropriate to promote the efficiency of the City administrative organization; provided, however, that no such action shall be effective unless and until approved by resolution or order of the City Council. ADOPTED this day of June, 2005. Ordinance NS-2687 Page 2 of 3 7 5A 1-5 Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher City Attorney By: Benjamin Kaufman Chief Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS-.2fi.8..Z to be the original ordinance adopted by the City Council of the City of Santa Ana on , and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: Clerk of the Council City of Santa Ana Ordinance NS-2687 Page 3 of 3 7 SA 1-6 RESOLUTION NO. 2005-055 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO DELETE ONE FULL TIME CLASSIFICATION TITLE FROM THE CITY'S BASIC CLASSIFICATION AND COMPENSATION PLAN FOR EXECUTIVE AND MIDDLE MANAGEMENT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1: The City Council hereby finds, determines and declares as follows: A. Section 1004, Article X of the City Charter of the City of Santa Ana requires the City Manager to prepare, install and maintain a position classification and pay plan subject to civil service rules and regulations and the approval of the City Council. B. On July 1, 1991, the City Council passed and adopted Resolution No. 91- 066, re-establishing the Basic Classification and Compensation Plan for classes of employment designated as unrepresented Executive Management (EM) and Middle Management (MM). C. In order to continue to maintain a classification and compensation plan that reflects current organizational structure, the Executive Director of the Community Development Agency proposes to delete one (1) full time classification title. Section 2: That Section 3B of Resolution No. 91-066, as amended, is hereby further amended by deleting the vacant and now obsolete unrepresented middle management classification title of Downtown Development Manager (MM). Section 3: That except as amended by this Resolution, all other provisions of Resolution No. 91-066, as amended, shall remain in full force and effect. Section 4: That this Resolution shall be operative from and after June 6, 2005. ADOPTED this _ day of June, 2005. Miguel A. Pulido Mayor Resolution No. 2005-055 Page 1 of 2 7 SA 1-7 APPROVED AS TO FORM: Joseph W. Fletcher City Attorney By: Joseph Straka Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, PATRICIA E. HEALY, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2005-055 to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana Resolution No. 2005-055 Page 2 of 2 7 SA 1-8