2011-09-20 CC Agenda Packet - ITEM B1 - FY 2011-2012 Budget Hearing2011m2012 BUDGET PUBLIC
HEARING
SEPTEMBER 20, 2011
City of El Segundo
Budget Overview — General Fund
FY 2011-2012
Stri-ategic Planning Session June 8th
® Requested direction from Council for parameters for balancing
budget
Strategic Planning Session August 17tn
o 11dentified $5.5 million gap and presented Council with options for
balancing the budget
dt Pr�liminary Budget was presented September 6t"
® Revised revenue updates from consultants
Ongoing Labor Negotiations
® Conclusion of the Equipment Replacement Study
® 'FY 2011-201 2 ®PEB Valuation
K
City of El Segundo
General Fund Prelim. v. Adopted Budget
F'Y 2011-2012
General Fund Adjustments
ADJUSTMENTS &
PRELIMINARY CORRECTIONS TOTAL
REVENUES $ 49,7739900 $ 300,000 $ 509073,900
TRANSFERS IN $ 700,000 $ 900,000 $ 1,600,000
EXPENDITURES $ 5597469586 $ (122,060) $ 55,624,526
ADJUSTED
SHORTFALL $ (3,950,626)
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City of El Segundo
CHANGES IN FY 2011-2012
GENERAL FUND DEFICIT
CHANGES IN DEFICIT
Preiiminary
Reductions
Adopted
$5559%200
$1300,09000
$
$
193989600
7509000
$
$
492005600
2509000
$455999200
$190499600
$
$
648,600
-
$
$
399509600
190499600
$395499600
$
6489600
$
299019000
Preliminary Deficit
OPEB Trust Annual Earnings
Withtdrawal
Adopted Deficit
Fire Staffing at 16, run down to 14
Proposed Salary and Benefit
Reductions
0
City of El Segundo
CHANCES IN FY 2011-2012
GENERAL FUND DEFICIT
(300, 000)
(900, 000)
(39, 750)
(905300)
(13, 750)
150,400
(505,200)
1000,000
(17,998,600)
Increase in revenues
Fleet Reduction and Other Structural Adjustments
Operating Adjustments
Correction to PT PR Taxes
20% Reduction to Salaries for Council Members
Increase in Equipment Replacement Charges
Adjustment to OPEB based on 9/30/11 valuation
Increase in Vacation/Sick Leave Buyout
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pity of El Segundo
changes in revenue — Prelim. v. Adopted
FY 2011-2012
Increase of $300,000 to General Fund
Revenues:
ci kAlater Utility Tax revenue increase of $170,000
® Sales and Use Tax increase of $455,000
® as Utz l i -y Tax decrease of $100,000
® Cogenerated Tax decrease of $225,000
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� City of El Segundo
Changes�n Expenditures — Prelim. v.
Adopted
■ Decrease in OPEB Annual Required Contribution
— Reduction of OPEB Payment $505,000.
® Choosing conservative assumptions in the City's first
T�taluation has resulted in Lowering the unfunded liability
® the City has achieved a 20% funded status, four years into the
program.
o Reduction in Health Benefit Cap for two labor groups
o Part-time employees recalculated at a reduced benefit
amount upon retirement from the City
S)l million originally earmarked; now reduced to
,v-
�!�®, ®00
7
City of FU Segundo
Changes in Expendi*tures — Prelim. v.
Adopted FY 2011-2012
�LL� Decrease to payroll Taxes (FICA, Medicare) —
$109,400
Lt Equipment Replacement Charges — Increased
&rinual charges by $425,300.
!g Other increases: $38,300
E'3
t JT of El Segundo
B-1u,,ciget Overview —General Fund
2011-2012
EMPLOYEE SALARIES
EMPLOYEE BENEFITS
TOTAL NONPERSONNEL
2011
2011
2012
%
$
ADOPTED
YE PROJ.
ADOPTED
VARIANCE
VARIANCE
$ 29,104,102
$ 16, 036,158
$ 12,370,396
$ 26,836,000
$ 14,418,800
$ 11,694,100
$ 24 ,125 ,128
$15 ,407 , 922
$11,492,500
-10.10% $ (2,710,872)
6.86% $ 989,122
-1 .72% $ (201,600)
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,rites rls e -r unds
BUDGET' - FY 2011-2012
ESTIMATED BEGINNING FUND BALANCE
REVENUES
EXPENSES
SURPLUS (DEFICIT)
GOLF COURSE
WATER FUND SEWER FUND FUND
$ 5,530,101 $ 12,573,780 $ 5,821,292
$ 22,640,700 $ 3,587,260 $ 2,058,000
$ 21,565,400 $ 3,269,400 $ 2,602,812
$ 1,075,300 $ 317,860 $ (544,812)
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Internal Service Funds
Equipment Replacement Fund — Funded at 100%
■ General Liability and Workers Compensation Funds —
Funded at the expected rate indicated in the latest
actuarial valuation.
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Questions
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