Loading...
CC - Item 5A - Mid-Year Budget and 2015-16 Outlook a44 t ROSEMEAD CITY COUNCIL � , STAFF REPORT �PoF4iE�1949 TO THE HONORABLE MAYOR AND FROM: CITY COUNCIL MEMBERS JEFF ALLRED, CITY MANAGER did- DATE: FEBRUARY 10 2015 1 SUBJECT: MID-YEAR BUDGET UPDATE AND SUMMARY 2015-16 OUTLOOK The Council will be provided with a mid-year Budget current 2014_15 fiscal year Budget along year. In terms g with brief update towards wa ds presentation regarding yr. I of the General Fund, revenues brief le p proven be upcoming the generally in-line with budgeted projections have proven moderately as expected and property � Sales to be stable and are as e are remaining er y tax revenues have been relativelyastable growing General rfund expenditures end measures n line budgeted figures the expenditure available. It is important nno staff has implemented xpenditure from fund balance for portapt al point improvement out that the Budget uch as the Garvey Gym renovation, the Garvey Avenue cSpecific nd p R project such a and he purchase of the River Avenue property for a Ian and EIR pit ; tend the expenditures are projected to exceed r maintenance facility; therefore, revenues at the end of the fiscal year. An early look at revenues for 2015-16 show signs of and a higher consumer price index that will opening of all modest growth due to flat inflation opening of new restaurants and businesses some retail outlets such usinesses has been offset tax revenues. The closure in continued retail slow uch as Office Depot and Bed ath & somewhat b awaiting the o growth of sales ed Bath & Beyond, by the awaiting the nutuhe,opening of two new tax revenue. However, y which will Property w stores, ase and rely heavily art which should helve in the p dy tax revenue increases currently mer Price Index (CPI) increase ^' imaly r Y help Sales Tax will be minimal for FY on residential sales as the Staff Recommendation: Y 2014/15. Receive and file the mid-year budget update report. ANALYSIS A detailed look into the City's General Fund revenues and expenditures for the first half ITEM NO. City Council Meeting February 10, 2015 Page 2 of Revenues Sales Tax — Sales tax receipts, which comprise Fund revnues, are again projected ohe increase' ti eource s.of City's second leading the coming in according to the budg The tempered at conservative levels.of Office Depot and Bed, budget. T els. the year, but fortunately ed, Bath & Beyond gasoline prices along cover any losses f rt of ly the newer restaurants are yonr will hurt and tax figures cover ny In revenue. For the performing well (2n 9ures for Dining receipts are u ° most recent quarter of are helped to Recent additions to P 4.6/° and Fast Casual Dining data (2 quarter 2014), and Recent Jersey the City including Olive Garden tl reche are andrJe, the Mike's, are helping to diversify then tie, The s sales to 111.8%.s Overall, fort ty's gross receipts within the and strengthen the Wing-Stop, to dollar decrease City City's sales tax base. of Office total o Depot ase of$24,100. This decr down 2.1% for the to the Quarter g of Office from otaand Bed' Bath and Beyond as well decrease is partially Macy's in the well as our 10 adjustment due to the closing City of Baldwin Park ended th rior fiscal fiscal year. In addition our 10 Jar agree that the City City o 0 per year. year which will Year agreement with the $59rter, has y ar. News regarding the 4l" decrease our future revenues been tempered by Quarter, also known will not by available for several more y lackluster numbers as the Christmas months. , but actual figures will not be Property Tax —Although early, property tax revenues are tracking in line with estimates. Sales of residential properties in Rosemead have almost fully recovered since before the budgeted September 30, ad is still strong and final selling September , 2014 the average home $ 57,04 recession. For the which is a 7.06% increase overprice was $457,046 quarter ending $y the Consumer Price Index the prior and the news median is tempered was the current umer P ex data that will be used for t the 20 positive ns it tempered taxes; r nt however,1 for year the CPI increase the 2015% i property 2015-16 the CPI will will less than 0 a imposed taxes. For news from a revenue standpoint I increase will be almost 2% Posed on property news from a 2% annual tandpoi t since the five- and that it very positive uses assumes from a new development rn overall. While the City will need outlook the City uses growl h romhn new de p ent and existing sales to e will need t see heurresubstantial 16 fiscal year will be meet the ass esti for the more in line with [he Cit ' current Transient Occupancy Ys estimate. Transient ccuu y Tax (TOT) — First quarter TOT in Although gh the 2ntl Quarter fees OT revenues were dollars of this re are not collected until January $37'000 to reflected in be dollars the TOT re ry the are not ports for the majority of the operators Business License — Business license revenues are up in comparison a result of the new businesses opening in town, the licensing enforcement and Parison to last fiscal year increased by orceme outreach efforts by staff. The of contractors, was to $190,000 and revenues are coming in to for he increased projection. The integration of the business license approach of the Community Ming in to meet the increased approach to show munity Development Department into worked positive results. Partment has certainly worked well and�� City Council Meeting February 10, 2015 Page 3of5 Fines and Forfeitures — The Tickets has remained collections of fines increased $2e0 stable. However, the collections as Court atne 00 in the first quarter. Productivity of increased and u Parking supervision of our new Public fOductivit � supervision Safety Supervisor. haT iecb Citations- 5 has increased based on 2013-14 pervisor, ores recently under the in a rate d based the actual collections, and The budget for budgeted figures. current 2014-15 was gures. revenue is bein at Parks and Recreation 9 collected facility rentals and aquatic Fees — The bud veal as n n quatic center use were ant for several categories the RC significantly ategories related to year result ue of RC CRC being re-opened iprogram in increased is completely roved aor additional do is the 2014-15 is fiscal classes, Recreation related s re-likely remain for programmed. Until fees are d fees will liken facility rentals and Building Fees — Y remain stable. previous sal yi an Building Permit and of the improved comparison to the community. —year and Permit is a t sign oP t heck fees are up in co som unity. a commercial i along and during the quarter the y year been stead with the solid residential rter y has this bride g with two P Jedts. The positive o large mixed construction steady with a toil positive momentum entum for the remainder of use fiscal of the SCE commercial development and residential he iiscdl hound help venuese important to keep dential infill has Year. increased ant to for keep in mind that increases a will boost A combination of Exoen review and inspections of permitsases will betpart ally revenues. by Generally speaking, expenditures in the General These There are a few individual items that Fund include the at were are tracking in line Homeless Encampment Avenue median requested for mid- with the Sheriff ampment and the retrofitting costs pro Yenr adjustments. County. Department contract. These liability Jett, the clean- balance in Janua here funds y °pets in the Los clean-up of the January 2015. were appropriated from General Angeles County General Fund fund In May 2014, the City funds pc)fic Plan and E vir guide tal Impact Report r(EIR°to Mr the Garvey Avenue Corridor (InlM p spur a these were appropriated from General development Moore,opportunity GoltsmT I expenditures appropriated take neral Fund fund balance kiin July 2rt14ita rites. These It January place in the 2014-15 fiscal yearn July 2014 and the bulk of million. ry 015, the City purchased Public Works property will be used as the property at 2714 River Department a corporate yard Avenue for $1.83 Public Works and ether and will provide enhanced security maintenance facility this assets. While these ncad security our the Y for the Principles"alan e, purchase is consistent funds came from City's Guiding, listed in the Fiscal with the "Fiduciary our General Fund fund cal Policies section of the City's ry g Responsibilities(page Y Budget document uiding (Pa 14). City Council Meeting February 10 Meeting 4 of 5 The pertinent principle in this a Public temporary stop-gap measuresc Acquisition USe 'reserves„ quisition of real property for one-time Legal fees related party is a one-time or costs of the fated to City Attorney time expenditure for necessary lawsuit against y costs are still for s attorney the end of the City by Tammy budget, ho this Y fees and throe he fiscal year. The y Gong• a budget waver' due t$ defense amount, $26,000 is directly Drelaed to the Gong spent in adjustment an$50 000 2015-16 O n9 lawsuit. approximately $70,000. Of The Outlook 0 2015r76d The City's in revenues for result growths major tax s for the current fiscal year is from the e ofPro t a stowtlemodebpac tax Property axndxenuteax) are i are sales to than strong especially parties. the bills revenue ix projected n 2ly t This percentage i on the residential property sales and increased eases are a Pt'pllikYtaxrave�erof theCiIlpeeasenwlebeoffsetbppmrYeaewhllb slightly continues ess increase in assessed arlueeed to come from sale f existing properties of the he resulting at on valu Sales tax ts beco should continue g propertie an increase resulting storefronts s d the in the Targets revenues available to grow, revenues hopping cent , the growth wit/ but with few on in the as well as the er, Ulta and P be slow, The new retail Valley Blvd, recent opening will certainly of two centers or see the s results to the timing Pening of the nainln have new stores avenue so grow fuothe t new retail centers x reprtingtpa center at positive r impact re Projected re to grow as TOT, fines in the 2015_payments, and slowly as T business j6 fiscal the City will Grove During unless fees s licenses Year. begin to g meat f es are increased or Other m developme the Cit and fee for use g ms aa)oer Duri Report ( t of a Garvey has begun to make an new businesses are opened.investment from its reserves In FY2015_j)Itys This sproject should beginito spur Specific d Environmental Impact the the General economic development neral FU de 1 considering several large inpact key ex upgrade the may ve CIP to be funded directly at 'xterior to s to Garvey Y include improv projects bprov we s City t purchased Irvin Parkfacade,em. In addition,the Jay Imperial Park fro 9 the from as ements during the new City stucco and we plan on improving ark as well g the next fiscal y Yard new lights. Also addti the year. and this will require some mentioned City Council Meeting February 10,2015 Page 5 of 5 The demand for service from the City's residents and businesses remains high increases to service levels will need to be met with new or increased fees to offset costs. As an example, 9 and any that allows for online , transitioning the business license system to updated software a cost allows ws or payments, renewals and applications is available business license feet0 ensure increased cost would need however,into the e bosiness licen will need to s quate cost recovery of the newfservred into the considerations or new will made for other endeavors like the Wi_Fierri je. Similar Cty community education and outreach efforts. Project at City PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Prepared by: Carolyn A. Chu Acting Finance Director Attachments: