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NOTICE OF SPECIAL CITY COUNCIL MEETINGThursday, May 17, 2012 4:30 p.m.
Council ChambersEast side of Monte Verde Street between
Ocean and Seventh Avenues
Live video streaming available at:www.ci.carmel.ca.us
Broadcast dateSunday, May 20, 2012
8:00 a.m., MCAET Channel 26
I. Call to Order
II. Roll Call
III. Pledge of Allegiance
IV. Public Appearances
Anyone wishing to address the City Council on matters within the jurisdiction of the City and are not on the agendamay do so now. Matters not appearing on the City Councils agenda will not receive action at this meeting but maybe referred to staff for a future meeting. Presentations will be limited to three (3) minutes, or as otherwise established
by the City Council. Persons are not required to give their names, but it is helpful for speakers to state their names inorder that the City Clerk may identify them in the minutes of the meeting. Always speak into the microphone, as themeeting is recorded. The City Council Chambers is equipped with a portable microphone for anyone unable to cometo the podium. Assisted listening devices are available upon request of the City Clerk. If you need assistance, pleaseadvise Heidi Burch and the microphone will be brought to you.
IV. Orders of Council
A. Study session and public hearing to review/adopt Fiscal Years 2012/13 2014/15Triennial Budget.
1) Overview2) Revenue
3) Operating Budgets4) Items Not Funded in the Proposed Budget5) Preliminary Council Deliberations
V. Adjournment
The City of Carmel-by-the-Sea does not discriminate against persons with disabilities. Carmel-by-the-Sea CityHall is an accessible facility. The City of Carmel-by-the-Sea telecommunications device for the Deaf/SpeechImpaired (T.D.D.) number is 1-800-735-2929.
Any writings or documents provided to a majority of the City Council regarding any item on this agenda will be made available forpublic inspection at Carmel-by-the-Sea City Hall, on the east side of Monte Verde Street, between Ocean and 7 th Avenues, duringnormal business hours.
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Thursday, May 17, 2012
4:30 PM Budget Overview ........................................................................................................... City Administrator
5:15 PM Public Comment
5:30 PM Revenue
Sales TaxTransient Occupancy TaxProperty TaxOther Revenue
6:00 PM Public Comment
6:15 PM Operating Budgets
Community Planning and Building ............................................................................................. Page D-12Public Services ............................................................................................................................ Page D-14Public Safety ............................................................................................................................... Page D-18Library ......................................................................................................................................... Page D-22City Administrator ........................................................................................................................ Page D-6
Marketing ............................................................................................................................. Page D-7
Community Services ............................................................................................................. Page D-8Outside Groups and Agencies
Sunset Center Operating Support ........................................................................................ Page D-8Partner Agency Requests
City Council .................................................................................................................................. Page D-2Legal .............................................................................................................................................. Page D-4Administrative Services .............................................................................................................. Page D-10
7:30 PM Discussion of items not funded in the proposed budget
8:15 PM Public Comment
8:30 PM Preliminary City Council Deliberations
End of Day
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Thursday, May 24, 2012
4:30 PM Budget Overview and Recap of May 17, 2012 ............................................................. City Administrator
5:00 PM Public Comment
5:15 PM Capital Budget ............................................................................................................................... Page E-1
6:00 PM Public Comment
City Council Deliberations and Decision Making :
Approve the Fiscal Year 2012-2013 Operating Plan, Proposed Budget including final BudgetAdjustments, and adopt the Resolution providing direction regarding the Adoption of Final Budget byReference.
End of Day
Tuesday, June 12, 2012
4:30 PM Summary of Budget (funded and unfunded items) ..................................................... City Administrator
5:15 PM Discussion of Revenue options
6:15 PM Public Comment
Final City Council Deliberations and Decision Making :
Approve the Fiscal Year 2012-2013 Operating Plan, Proposed Budget including final BudgetAdjustments, and adopt the Resolution providing direction regarding the Adoption of Final Budget byReference.
Adjournment
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Hearing Schedule
Hearings begin today, May 17, 2012
They continue on Thursday, May 24
Tuesday, June 12
June 19 (if necessary)
Hearings start at 4:30 pm each day
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Budget Hearing MaterialsContents of the Councils Budget packet
Staff report summary Schedule Budget Inquiry Forms Budget Resolutions Presentation of the Proposed Budget
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
FY 2012-13Proposed Budget Development
Process
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
December 2011 Internal worksheets January 2012
City Council adopted goals, objectives, key projects City Council adopted budget calendar
February 2012 City Council adopted 2 nd tier retirement
March 2012 City Council received Five-Year financial forecast City Council received Five-Year Capital Improvement Plan
April 2012 City Council received Fiscal Year 2012-2013 Proposed
Budget and Operating Plan
Proposed Budget Development Process16
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Balanced Budget / Fiscal Stability
Policy-Based Budgeting Accountability / Transparency Service Levels Continuous Improvement and Innovation Strategies Status-Quo Requests Essential Infrastructure
Reserves One-Time Funding
Budget Development Framework17
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Expenditures continue to rise faster thanrevenue
Significant one-time funding will need tobe offset in the future
State budget challenges continue to loom Can not solely cut services to balance
future budgets
Balancing Current Needswith Future Risks
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Proposed FY 2012-13Budget and Operating Plan
Budget Summary
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
FY 2012-13 Proposed BudgetSummary
Strategies to Balance Reduce expenditures Manage discretionary revenue Maintain service levels
Use one-time funds
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
2010-11 2011-12 2011-12 2012-13Dollars i n mill ions Actual Revised Estimated RecommendedTotal Revenues 12.52$ 13.14$ 13.00$ 12.80$Other Financing Sources 1.06$ 1.06$ 0.90$ 0.58$
Total Sources 13.57$ 14.20$ 13.90$ 13.37$Total Expenditures 12.42$ 13.44$ 13.29$ 13.37$Designated for Future Use 0.25$ 0.00$ 0.61$ $0.00
Total Uses 12.67$ 13.44$ 13.90$ 13.37$Staffing FTEs 75.68 74.20 72.04 71.69
Budget at a Glance
FY 2012-13 Budget Summary $13.37 Million Balanced Budget
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Revenues by Source22
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Expenditures by Function23
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Pension Contributions24
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Average Cost of CityEmployee
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
General Fund Key DiscretionaryDesignations
7/1/2012 6/30/2013apital Improvements 2,230,000 $ 1,742,364
orkers' Compensation 252,000 $ 192,000perating Reserve 1,916,165 $ 1,416,165
atural Disaster250,000 $ 250,000
PEB Liability 1,080,112 $ 1,084,249eposits 454,000 $ 455,739eneral 1,530,679 $ 1,545,133Vehicle Replacement Reserve $ 150,000Litigation Reserve $ 200,000
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Five Year Forecast27
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Recommendations
To Adopt FY 2012-13 Budget
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Balance of Sources and Uses - $ Positive/ ($ Negative) 0 Burnett Beach Hazdovac Talmage Hillyard
Dept Board Adjustmen ts to FY 2012-13 Proposed Budget Suggested Amount City Council Actions(Yes, No, or Alternate Amount)
USES: Program Restorations and Expansions Burnett Beach Hazdovac Talmage Hillyard
CAO Sample Event Marketing 16,000 16,000 10,000 10,000 15,000
16,000 10,000 10,000 15,000 0
Total GF Restorations and Expansions $ 16,000
SOURCES : New/Unanticipated Revenue, Appropriation Transfer, and Use of Designations Burnett Beach Hazdovac Talmage Hillyard
CPB Example fee revenue 16,000
Total Sources $ 16,000Notes: Forbudgeting purposes, all sources and uses wi ll be passed through the General Fund.
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Recommendations1. Approve final budget adjustments to the FY 2012-13 Proposed
Budget, including Attachment A budget balancing adjustments;
2. Adopt the Resolution of the City Council entitled Adopting theBudget for FY 2012-13 of the 2012-2015 Triennial Budget;
3. By separate resolution, adopt the Memorandum ofUnderstanding for the Proposition 172 Maintenance of EffortRequirement.
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Proposed FY 2012-13Budget and Operating Plan
Revenue
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Revenues by Source33
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Proposed FY 2012-13Budget and Operating Plan
Operating Budgets
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Proposed Order of Discussion Community Planning and Building ............................................................. Page D-12 Public Services ............................................................................................ Page D-14 Public Safety ............................................................................................... Page D-18 Library ......................................................................................................... Page D-22 City Administrator ....................................................................................... Page D-6
Marketing .............................................................................................. Page D-7 Community Services .............................................................................. Page D-8
Outside Groups and Agencies Sunset Center Operating Support ......................................................... Page D-8 Partner Agency Requests
City Council ................................................................................................... Page D-2 Legal .............................................................................................................. Page D-4 Administrative Services .............................................................................. Page D-10
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Community Planning & BuildingPage D-12
Proposed Budget: $613,779
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Public ServicesPage D-14
Proposed Budget: $2,187,442
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Public SafetyPage D-18
Proposed Budget: $6,011,113
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
LibraryPage D-22
Proposed Budget: $988,775
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
City Administrators OfficePage D-6
Proposed Budget: $2,742,106
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Outside Groups
Sunset Center Page D-8
Partner Agency Requests
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
City CouncilPage D-2
Proposed Budget: $162,802
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
LegalPage D-4
Proposed Budget: $315,718
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Administrative ServicesPage D-10
Proposed Budget: $1,154,269
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Items Not in the Budget
Staff Road Maintenance Capital Debt Service Use of One-Time
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Items Not in the Budget
Staff: $540,500
Road Maintenance Capital Debt Service Use of One-Time
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Items Not in the Budget
Staff: $540,500 Road Maintenance: $350,000 Capital Debt Service Use of One-Time
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Items Not in the Budget
Staff: $540,500 Road Maintenance: $350,000
The average 2007 PCI of the street networkof the City is 74
To enable street condition to remain steady
Capital Debt Service Use of One-Time
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Items Not in the Budget 56
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Items Not in the Budget
Repairs
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Items Not in the Budget
Staff: $540,500 Road Maintenance: $350,000 Capital: $850,500
Pages 9 -10 of the Capital Improvement Plan $3,242,565 unfunded need the next 5-years
Deferred Maintenance costs grow moreexpensive if not addressed
Debt Service Use of One-Time
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Items Not in the Budget
Staff: $540,500 Road Maintenance: $350,000 Capital: $850,500 Debt Service: $450,000
10-year amortization of side-fund
$973,000 annually Current payment is $541,152 Loan amortized amount: $6.6 million
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Items Not in the Budget
Staff: $540,500 Road Maintenance: $350,000 Capital: $850,500 Debt Service: $450,000 Use of One-Time: $650,000
The level of service in the proposed budgetutilizes one-time reserves; to maintain thislevel of service would require additionalongoing revenue
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City of Carmel-by-the-Sea Fiscal Year 2012-2013 Proposed Budget
Items Not in the Budget
Staff: $540,500 Road Maintenance: $350,000 Capital: $850,500 Debt Service: $450,000 Use of One-Time $650,000
$2,841,000
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Preliminary Council Deliberation62
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CITY OF CARMEL-BY-THE-SEACITY COUNCIL
RESOLUTION 2012-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OFCARMEL-BY-THE-SEA ADOPTING THE BUDGET FOR FISCAL YEAR 2012-
2013 OF THE 2012-2015 TRIENNIAL BUDGET
WHEREAS, the City Council was presented a balanced Triennial Budget forFiscal Years 2012-13 through 2014-15; and
WHEREAS, the City Council held public meetings to review and receive publiccomment on the Triennial Budget; and
WHEREAS, the City Council has approved certain special reserve and restrictedfunds for specific purposes as defined in the Municipal Code; and
WHEREAS, the City Council authorizes deposit accounts into and from whichfunds are received and disbursed, and maintained in the Citys bank account; and
WHEREAS, the City Council approves FY 2012-2013 of the Five-Year CapitalProgram; and
WHEREAS, in accordance with California Government Code Section 53646, theTriennial Budget includes the Citys Investment Policy C89-27, revised May 20, 2010;and
WHEREAS, in accordance with Title XIII, B, of the Constitution of the State of California, the City of Carmel-by-the-Sea has prepared its annual appropriation limitcalculated by a combination of variable factors composed of the 2012 increase in thepopulation of the County of Monterey of 0.91% and the increase in California per capitapersonal income of 3.77% which together produce an estimated appropriation limit forthe City of Carmel-by-the-Sea for Fiscal Year 2012/13 of $25,563,619.
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NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITYOF CARMEL-BY-THE-SEA DOES:
1. Adopt the budget for Fiscal Year 2012-2013 of the 2012-2015 Triennial Budget
and place said budget on file at City Hall and on the Citys Web Site; and thatsaid budget document presently consists of the 2012-13 Proposed Budget datedApril 24, 2012, the record for the Budget Hearings, and the summaries anddecisions of the Carmel-by-the-Sea City Council in making final budgetadjustments which are incorporated herein as Attachment A and made a part of this resolution;
2. Authorize the City Administrator, in compiling the Final Budget, to makeministerial budget changes and to transfer appropriations to or from designatedfund balances and contingencies to balance the budget for the various fundsgoverned by the City Council.
3. Authorize the City Administrator to make final budget adjustments that transfer
2011-12 appropriations for fixed assets and other material purchases that havebeen ordered but not received, by June 30, 2012 to the 2012-13 budget, subject toestablished criteria.
4. Acknowledge that the following City budgetary financial policy (Policy C94-01)has not been met for Triennial Budget Fiscal Years 2012/13 through 2013/14: as1) The annual operating budget shall contain a current surplus (or revenuebuffer) of at least five percent (5%) of projected expenditures, and 2) CityCouncil Discretionary Account of at least one-half of one percent (0.5%) of totalexpenditures shall be maintained.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OFCARMEL-BY-THE-SEA this XX day of June 2012 by the following roll call vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
SIGNED:
_______________________JASON BURNETT, MAYOR
ATTEST:
____________________________Heidi Burch, City Clerk
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