City of Fillmore 2011/12 Midyear Report March 27, 2012.

City of Fillmore

2011/12 Midyear Report

March 27, 2012

City of Fillmore 2011/12 Midyear Report

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Revenue and Other Sources Expenditures and Other Uses

General Fund Comparison of Sources and Uses FY 2009 through 2012

Budget Adoption and Review

June 28, 2011 – City of Fillmore/Fillmore RDA Adopted Budgets FY11/12

January 31, 2012 – Fillmore RDA eliminated and City became Successor Agency

March 27, 2012 – 2011/12 Midyear Budget Review

June, 2012 – City of Fillmore will Adjust 2011/12 and Adopt 2012/13 Budget


Two major fund groups in the report

1. City Operating Funds A. GeneralB. Special RevenueC. EnterpriseD. Debt Service

2. Capital Improvements


Includes estimates for 2012/13 for all funds (See Attachment 7)

Certain assumptions are made to derive the projections

The 2012/13 Recommended Budget will refine the numbers


GENERAL FUND Amount

Start with Current Assets $ 3.3 million

Subtract Current Liabilities and Restricted Reserves $ 2.8 million

Results in Available Balance $ .5 million

Report starts with balances derived from audited numbers (Attachment 1)

Converts balances into “available balances” by reviewing balance sheet accountsBalance does NOT reflect General Purpose Reserve of $899,784



•Property Tax $32k •Property Tax in Lieu ($37k)

•Sales/Use Tax in Lieu ($140k)

•Sales Tax ($670k)

•TOT $17k •Franchise-Solid Waste $14k

•Encroachment Permits ($25k)

•Fireworks Enforcement ($2.5k)

Interest Earnings ($18k)

•EMPG Grant (Fire) $11k

•Homeowners Property Tax Relief ($5.4k)

Fire Filming ($10k)

•Other Planning ($10k)

•Special Police ($10k) Bldg/Const Permit ($16k)

Bldg/Plan Check ($70k)

•Engineering ($25k) •Legal $30k JAG Grant $5k City Clerk ($1k)

•Filming Fees ($20k) •Other Bldg Fees $2k Admin Fee Successor Agency $7k

Transfers in RDA ($180k)

General Fund Revenue Adjustments Attachment 2 Net decrease ($1,122,047)

General Fund Expenditure Adjustments (Attachment 3)Net decrease ($221,773)

City Council – Travel ($3,000)City Clerk – Salaries & Benefits ($15,000)Police Services

SRO $658County Basic Contract ($54,224)Other Program Costs ($2,450)Special Events ($10,500)

Fire Protection:Paramedic Stipend ($5,503)Uniforms ($1,200)Ventura Co Fire Dispatch ($1,656)

Planning - Salaries & Benefits ($17,350)Continued


General Fund Expenditure Adjustments Continued

Cable TV/Com Promotion – Salaries & Benefits ($9,312)Economic Development

Salaries & Benefits - $9,798Contract Services - $1,500Anti-graffiti - $3,400Film Commission - $4,000

Bldg/SafetySalaries & Benefits ($13,578) Plans Review Consultant ($45,000)Bldg Permit Program ($6,000)

Parks Maintenance – Building Maint and Utility Savings ($23,000)

Total General Fund Expend. Adjust. ($221,773)


Revenue/Transfers In

Expend/Transfers Out

Net Income/

(Expense)

Amended Budget $6,129,058 $6,183,053 ($ 53,995)

Recom. Changes (1,122,047) (221,773) (900,274)

Amended Budget $5,007,001 $5,961,280 ($954,269)

General Fund Summary

The Amended Budget showed a Revenue over Expenditure loss of $53,995. With the recommended amendments, the net loss is at

($954,269). This table only describes the difference between Revenue and Expenditures; it does not reflect the cumulative effect

when considering beginning balance.


General Fund 2011/12 Revenue/Expenditure Gap $954,269, includes transfers of $1.8 M

In 2012/13, no transfers from RDA, $288,000 Sales Tax, and State repayment of $439,000 (one time money)

Expenditures include transfer of $96,864 - Fire Engine Lease & Sheriff’s Contract expected to increase 2%, leaving a gap of $1.5 M

Bottom Line – The General Fund does not have sufficient revenue to support basic public safety services


The simple math of it:General Fund 2011/12 2012/13

RevenueTransfers In

Total Rev/T-I’s

$ 3.2 M$ 1.8 M$ 5.0 M

$ 3.7 M$ 1.0 M$ 4.7 M

Expend Sheriff Contract Other Police Svcs Fire ServicesTotal Public Safety

$ 2.9 M$ .2 M$ .8 M$ 3.9 M

$ 3.0 M$ .2 M$ .8 M$ 4.0 M

Other GF Expend/T-O’sTotal Exp

$ 2.1 M$ 6.0 M

$ 2.2 M$ 6.2 M

GAP $ 1.0 M $ 1.5 M



2011/12 General Fund Revenue + Transfers In = $5.0 Million

Taxes $2,159,024

43%

License & Permits

$122,000 2%

Fines & Forfeitures

$57,045 1%

Money & Property Use $28,360 1%

Intergovern. $364,016 7%

Charges for Services

$345,116 7%

Other Revenue $93,904 2%

Transfers In $1,835,088

37%


2011/12 General Fund Expenditures + Transfers In = $6.0

Million

FundBalance

6/30/20122012/13Change

Balance 6/30/2013

General $ 0. ($ 1,534,741) ($ 1,534,741)

Recreation ($ 75,376) ($ 25,721) ($ 101,097)

Swimming Pool ($ 232,263) ($ 77,657) ($ 309,920)

TOTAL ($ 307,639) ($ 1,638,119)

($ 1,945,758)

ADD OTHER FUNDS THAT RELY ON GENERAL FUND


Operating Funds Amount Reason

General ($1,122,047) Discussed earlier

Local Transportation

50 Interest Earnings County

CBDG $100,983 Reallocated Revenue

Housing $102,000 New Fund, replaces RDA

Sewer ($305,000) Service charges

Water $250,000 Service charges, transfer in

Rec & Pool (20,250) Rental & Fee Income

DIFs 34,722 Developers & Interest Inc.

Reserves 48,115 FEMA Reimburse, transfers, reduced interest

Total Net Adj. ($911,427) Net Rev. Adj. All City Op Fds

City of Fillmore 2011/12 Midyear Report CITY OPERATING FUNDS

REVENUE & TRANSFER IN ADJUSTMENTS

Operating Fund Amount Reason

General (221,773) Discussed earlier

Local Transportation 50 Street Maintenance

CDBG $100,983 Two Rivers & Tot Lot transfers

Housing $135,228 New Fund

Sewer ($80,846) Sal/Ben, reduce Maint, transfer

Water ($47,000) Salary & Benefits

Rec & Pool $15,947 Decrease exp, add Sr. Nutrition

DIFs $21,400 Admin charges, transfers out

Reserves $19,616 Transfer

NPDES ($8,924) Salary & Benefits

Total Net Adj. ($65,319) Net Exp. Adj. All City Op Fds

City of Fillmore 2011/12 Midyear Report CITY OPERATING FUNDS

EXPENDITURE & TRANSFER OUT ADJUSTMENTS


• Utility Billing Collections

– As of 3/1/2012– Total Outstanding $743k– Inactive Accounts (241k) – 32%– Active over 90 days (84k) – 11%

Changes Adopted 2011/12 Budget compared to MidyearGeneral Fund Beginning Balance included Theatre negative balance. The Theatre is a RDA asset and not a General Fund obligation

A prior period adjustment for a liability amount that was not due increased the beginning balance

Beginning Balance is $518,436


City Operating Funds

AdoptedBudget

AmendedBudget

Difference

Available 7/1/2011

$ 8.5 M $ 9.7 M $1.2 M

Revenue & Tsfrs In

$18.4 M $17.7 M ($.7 M)

Expend & Tsfrs Out

$19.3 M $19.2 M ($.1 M)

Balance 6/30/2011

$ 7.6 M $ 8.2 M $ .6 M


CAPITAL IMPROVEMENT PROJECTSFunds 443 through 490


Fund Amount ReasonSewer Project Fund 463

$ 9,154 Transfer in from Sewer Fund

Park Fund 464 $250,261 Delete transfer fm RDA, increase transfer for Tot Lot

Total Net Adj. $250,261

Capital Projects Revenue & Transfer In Adjust.:


Fund/Project Amount Reason

Parking Lot Fund 460 ($ 5,000) Decrease to balance available

Misc Capital Fund 464 Ball Field Project Two Rivers Tot Lot

$185,225$250,261$435,486

Budget carried fwd fm 2011CDBG transfer, no RDA transfer

Business Park Infrastructure Fund 475

$ 1,000

Legal services

“A” Street Waterline Fund 480

$49,098 Transfer to Water Fund

Total Net Adj. $480,584

Capital Projects Expenditure & Transfer Out Adjust:


All CIP Funds Adopted Request Amended

Balance 7/1/11 $ .6 M $ 1.7 M $ 2.3 M

Rev/Transfers In

$ .4 M $ .3 M $ .7 M

Exp/Transfer Out

$ 1.0 M $ .5 M $ 1.5 M

Balance 6/30/12

$ .0 M $ 1.5 M $ 1.5 M

CAPITAL IMPROVEMENTS AMENDED BUDGET (see Attachment 4)

Funds 443 through 490


The RDA eliminated January 31, 2012All assets and liabilities transferred to the Successor Agency February 1, 2012The information provided for the Agency is for

information only, no formal action can be taken regarding the Agency’s budget, assets or liabilitiesThe Redevelopment Agency Low/Mod Housing function eliminated and City became Successor Agency for HousingEstimated balance RDA Housing Fund - $2.3 M

Fillmore Redevelopment Agency


Fillmore Redevelopment Agency – Information Only

Fund Beginning Balance

Revenue/Transfers In

Expend/ Transfers Out

Ending Balance

Low/Mod Housing

$2.5 M $ .1 M $ .3 M $2.3 M

Central City

($1.3) M $ .0 M $ .4 M ($1.7) M

Debt Service

$1.7 M $3.2 M $1.9 M $3.0 M

Total $2.9 M $3.3 M $2.6 M $3.6 M


SUCCESSOR AGENCY TO THE FILLMORE REDEVELOPMENT AGENCY

The City of Fillmore became Successor Agency February 1, 2012.

The Successor Agency provides staff support to the seven member Oversight BoardThe Oversight Board decides the disposition of assets & payment of obligations


County of Ventura payments June and January based on the Recognized Obligation Payment Schedule (ROPS)

Minimum Administrative costs allowed is $250,000

City of Fillmore 2011/12 Midyear Report SUCCESSOR AGENCY TO THE

FILLMORE REDEVELOPMENT AGENCY

What to expect in the future

2013 Successor Agency balloon payment of $885,000 final principal payment 2006 Tax Allocation Bond Anticipation NotesTown Theatre estimated deficit - $391,251 for 2012 $2.4 M is due Housing Fund for the SERAF payment Legislation is pending regarding this repayment

City of Fillmore 2011/12 Midyear Report SUCCESSOR AGENCY TO THE

FILLMORE REDEVELOPMENT AGENCY

There are many bills being sponsored in the legislature to clear up some of the unresolved issues regarding the elimination of the Redevelopment Agencies

It will probably be 2015 before the City realizes any gain in property tax revenue due to the elimination of the RDA


SUCCESSOR AGENCY TO THE FILLMORE REDEVELOPMENT AGENCY

Successor Agency Fund 935

2011/12 2012/13

Beginning Balance (Feb 1, 2012)

$ 0 $1.2 M

Revenue/Transfers In 3.7 M 4.8 M

Expenditures/Transfers Out 2.5 M 4.8 M

Ending Balance $1.2 M $1.2 M

RDA Retirement Obligation Fund 936

2011/12 2012/13

Revenue and Transfers Out $2.4 M $4.8 M

Town Theatre Fund 303 2011/12 2012/13Beginning Balance ($391k) ($398k)

Revenue/Transfers In 6k 6k

Expenditures/Transfers Out $12k $12k

Ending Balance ($397k) ($404k)

Successor Agency to the Fillmore RDA


CONCLUSIONSBudget refined as develop 2012-2013 BudgetMajor areas of concern are:

The EconomyThe State of California’s Budget WoesResolution of Sales Tax Issues

Decisions need to be made to balance 2012 budgetActions needed midyear to balance 2013 budget


Recommended Action:

Council perform review and provide direction to balance midyear budget and 2013 budget.

Adopt Resolution 12-3330 and Authorize the City Manager to make recommended budget adjustments


City of Fillmore 2011/12 Midyear Report March 27, 2012.

Documents

budget city of fillmore

numbers city of fillmore

continued city of fillmore

city clerk salaries

midyear budget review

city of fillmorefillmore

total general fund

general fund summary