HomeMy WebLinkAbout75A1 - FY 05-06 CITY BUDGET
CITY COUNCIL MEETING DATE:
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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
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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.
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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