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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) 3 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 5 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 6 � 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) 9 ,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) 10 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. 11 Questions 12