Santa Paula Budget Recommendations Fiscal Year 18/19

By Sheryl Hamlin

Highlights

City Manager Rock produced his first full-year budget since joining the city in May 2017. The budget report was informative, including a detailed, cross-referenced plan for the expenditures of the Measure T monies.

Police receive a 15% raise and thereafter 5%. Other employees get 5% raises for several years.

All employees will pay 8% of their salary to CalPERS, an increase from prior year, although the unfunded liabilities are still calculated with 30 year amortization, so will increase drastically when the switch to 20 years is made.

$1.1 million is planned for the renovation of the SPPD station using Measure T monies, which includes $150,000 design fees. The goal is to pay for this from cash flow without borrowing.

There is an immediate need for a design change required to the waste water treatment facility to get the electrical off the ground and to prevent another spill. No cost was given for this.

Water users have increased their water usage gradually since the ending of the drought, but not enough to offset expenses, so expect rate increases in FY 19/20 (after election).

Santa Paula pays $600,000 to United Water Conservation District for pumping water.

There are 60 calls to SPPD every 30 days for homeless issues, so there will be a need to find more revenue to support this.

Transfers from the Enterprise Funds to the General Fund were budgeted at $2,003,630 or 15% of the General Fund. The detailed tracking of employee time with the Enterprise activities has not yet been implemented, so this is an estimate.

When asked about the large increase in sales tax, the City Manager said “good economy”. The city uses a consultant HDL to predict this number. The city is highly dependent on sales tax from both the regular and the Measure T monies. Note that the Property Tax in the piechart combines both the secured property tax and the VLF swap showing an amount of $3,484,832, of that $759,285 is remaining from the secured property tax after annexation and the VLF in lieu fees in the amount of $2,700,000. See previous report on this topic. Click here to read a report on how the VLF swap can be modified by Sacramento legislature. A-Primer-on-California-City-Finance

East Area 1 Forecast

Based on expected fee revenues and staff expenditures from the East Area 1 project, the General Fund revenues still lag expenses for FY slightly, but without East Area 1, there is a greater negative differential between revenues and expense in the forecast. The extra revenue is fee based and not ongoing. See two graphs below. There was no discussion about the assumptions in this chart. Click here for details of the graphs. forecast_gf

Influence of Measure T

The chart shows a projected General Fund Revenue of $13,389,018 and expenditures at $13,201,605 from General Fund sources and an additional $4,038,198 in expenditures from Measure T monies. The General Fund is positive at $187,413 with an additional $4,038,198 from Measure T monies. Although the Measure T monies were forecast at $2.9 million for FY 18/19, there was a carryover of unspent monies from FY 17/18.

The staff report recommended a split as follows: Police $1,740,000 60%, Youth $725,000 25%, Streets $435,000 15%, which was close to the Measure T Commission recommendations, but in light of the critical nature of the streets the council decided to change this to 60-20-20 with Council Member Hernandez leading this change. After some discussion, council voted to make the change.


Segregation of Measure T Monies in Budget

Click here for larger display of the above chart. measure_t_effects

June 18 Budget Finalization

The council will return in two weeks to finalize this budget. This budget will reflect the Measure T changes.

To watch the meeting and download the budget materials, click here.

For more information on author click sherylhamlin dot com


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