Revenues
The Fiscal Year 2009-10 budget estimates new revenue for all funds will total $9,266,359, which represents a $2,840,879, or 44% increase when compared to Fiscal Year 2008-09 anticipated actual receipts. The majority of this increase is related to designation of the remaining balance of currently available Moulton Parkway Smart Street Funds held by the County of Orange.
General Fund
General Fund revenues are projected to increase by $85,637 or 2%. This increase anticipates conservative third quarter growth in sales and transient occupancy taxes, flat property taxes, a decrease in interest revenue and new revenue related to the sale of recyclable material (identified as a community services program revenue).
Transportation Fund
Transportation Funds are anticipated to increase by $2,815,640 or 261%. As noted above, the majority of this increase relates to the allocation of remaining development impact fees for the Moulton Smart Street project. Additional Transportation Fund revenue includes gas taxes (base Fuel Tax and Proposition 42), Measure M turnback funding, both the City and Orange County pass through Proposition 1B funds, and a grant for recycled asphalt.
Self Insurance Fund
Self Insurance Fund revenues consist of a $141,858 transfer from the General Fund for insurance premiums and the California Joint Powers Insurance Authority retrospective deposit. This amount represents a $47,883, or 51%, increase over the prior year transfer and comes from both current revenues ($66,858) and the General Fund balance ($75,000).
Grant Funds
Grant Funds are anticipated to decrease by $ 101,596, or 13%. Grant funding is competitive and is generally awarded for either a limited time or a particular project. This budget reflects the receipt of the balance of the City’s 2002 Resources (Park) Bond funds, a reduction in Community Development Block Grant (CDBG) funding, and the end of several non-reoccurring recycling grants.
Fiscal Year 2008-09 revenue projections anticipate no new taxes and the continuation of the temporary suspension of cable television franchise fees on subscriber services. Chart A summarizes Fiscal Year 2009-10 revenue projections and compares them to budgeted and anticipated actual Fiscal Year 2008-09 receipts. Percentage changes represent a comparison of Fiscal Year 2008-09 and 2009-10 current projections.
Expenditures
The approved Fiscal Year 2009-10 expenditure budget totals $9,507,402, which represents an $802,932, or 8%, decrease when compared to the approved 2009-10 budget. This decrease is a combination of general expenditure reductions and a shift of funding for two FY 2008-09 capital improvement projects into the new year.
City Budget Policies
The Fiscal Year 2009-10 budget was prepared with the following City budget policies in mind:
1. Current year General Fund expenditures should not exceed current year revenues. The adopted budget, including the reserve for economic uncertainties and the council contingency account is $1,509 less than projected revenues.
2. The General Fund budget should include a 5 - 10% reserve for economic uncertainties. This year's adopted budget includes $411,435, a 10% reserve.
3. The unbudgeted fund balance in the General Fund should be reserved for special one-time projects or capital improvements. The adopted budget includes a $75,000 transfer for litigation expenses associated with several public works claims against the City.
4. Annually, the City should allocate an amount of money for competitive community services grants for not-for-profit organizations that provide services to residents. The Fiscal Year 2009-10 budget includes $150,000 for this program.
5. The City should maintain a $500,000 reserve in the Self Insurance Fund; this budget includes maintenance of that reserve.
6. Capital Improvement Projects are budgeted on a multi-year basis. Once allocated, funds remain with a project until the project is complete or the monies are re-prioritized by the City Council. This budget includes reprogramming $75,000 of past funds committed to landscape to new projects.
7. Grant Funds are often distributed on a reimbursement basis. The General Fund unencumbered Fund Balance may be used for temporary "loans" until reimbursements are received. These "loans" are not reflected in the budget.
8. Transportation and Grant fund budgets should assure that monies are spent and/or obligated within required timeframes. The adopted budget includes $2.5 million in funding for the Moulton Parkway smart street improvement that must be obligated prior to the end of 2009.
9. The City should reserve an amount annually for uncompensated employee absences (accrued annual leave). The adopted budget includes $128,491 and is based on the prior year's financial audit.
General Fund
The Fiscal year 2009-10 General Fund budget, which contains the bulk of the City's operating and discretionary funds, totals $4,523,255, and includes: 1) a $411,435 reserve for economic uncertainties; 2) a $50,000 council contingency account; and 3) a $66,858 transfer to the Self-Insurance Fund. The budget represents a $225,671, or 5%, decrease when compared to the Fiscal Year 2008-09 budget. The budget, however, does continue all existing staff and service levels and reflects Councilmember discussion at its April and May 2009 meetings.
Transportation Fund
The Transportation Fund utilizes revenues that are restricted to public right-of-way construction, rehabilitation and maintenance. The Fiscal Year 2009-10 Transportation Fund budget totals $3,847,996 and contains four components: 1) Gas Taxes (Fuel tax and Proposition 42); 2) Measure M turnback (local sales tax); 3) a state grant (Rubberized Asphalt); 4) Proposition 1B (local and County pass-through); and 5) traffic mitigation (developer fees). Federal stimulus funding for right-of-way projects is not included in the proposed budget; however, the City has submitted several applications for additional funding.
All Gas Taxes and Measure M funds, which are anticipated to total $611,711, are allocated for traffic engineering and existing street and right-of-way maintenance. This represents a $35,561, or 6%, increase, and is related to increased maintenance costs for aging infrastructure.
The adopted budget also includes additional funding for the final leg of El Toro Road reconstruction (eastbound lanes Calle Sonora to the western city edge), partial funding for the El Toro Road/Avenida Sevilla storm drain improvement, and allocation of the balance of the funding for the Moulton Smart Street project.
Self Insurance Fund
The Self Insurance Fund is used to account for deposits to the California Joint Powers Insurance Authority Pool and the purchase of liability and property insurance. Revenue to this Fund consists of a $141,858 transfer from the General Fund, which represents a 51% increase when compared to the Fiscal Year 2008-09 budget, and is due to several public works related law suits.
Grant Fund
Grant Fund revenues are restricted to specific projects. The Fiscal Year 2009-10 Grant Fund budget contains seven programs and totals $728,306, which represents a $279,529, or 28%, decrease when compared to the Fiscal Year 2008-09 budget. However, $195,000 in the Fiscal Year 2008-09 budget reflect state Park Bond funds for which the City has not yet applied; the Fiscal year 2009-10 budget commits these funds to Phase I improvements at City Centre Park. The budget also reflects the Fiscal Year 2008-09 completion of two recycling grants ($178,954). Less these projects, the adopted grant fund budget contains funding for the City’s traffic deputy, taxi voucher program, purchase of additional recycling trash bins and educational recycling material. Of these programs, the taxi voucher program shows a an increase and the directed traffic enforcement and community development block grant energy efficiency retrofit programs reflect expenditure reductions.
Chart B summarizes budgeted expenditures by Fund and Department and compares them to budgeted and anticipated actual Fiscal Year 2008-09 expenditures. Percentage changes represent a comparison of budget to budget.
Capital Improvement Program Fund
Capital Improvement Projects are budgeted on a multi-year basis. Once allocated, funds remain with a project until it is complete or until the monies are re-programmed by the City Council. Often, it takes several years to compile sufficient funding to complete a project. Chart C identifies currently funded open projects and the proposed Fiscal Year 2009-10 budget increment, which totals $3,635,439. In addition to new funding, the adopted CIP includes reprogramming $75,000 indentified in Fiscal Year 2006-07 for El Toro Road median landscaping in the vicinity of Town Centre to median landscaping in the vicinity of Aliso Creek Road ($50,000). Although the median landscaping adjacent to Town Centre does not match that along the rest of the roadway, it is compatible. There is currently no landscape in the medians in the vicinity of Aliso Creek Road. The balance of the money ($25,000) from this project has been shifted to the Avenida Sevilla storm drain project.
The budgeted capital improvement program totals $16,151,627 and include seven projects. Although all of these projects will not be completed in Fiscal Year 2009-10, work on all but the Avenida Sevilla stormdrain should be underway before the end of the upcoming fiscal year.
Each year, the City prepares and adopts a seven year capital improvement program that identifies funding required for its long range infrastructure and facility improvement projects. Only items in the first year of the plan are included in the annual budget. Chart D summarizes the Capital Improvement Program for the Fiscal Years 2009-10 through 2015-16. This program includes the final leg of El Toro Road rehabilitation, initiation of the Moulton Smart Street project, Phase 2 of the Ridge Route linear Park, Phase 1 of City Center Park and an initial allocation to the Avenida Sevilla storm drain improvement in Fiscal Year 2009-10. Santa Maria Avenue reconstruction and Moulton Parkway slurry sealing are identified in Fiscal Year 2011-12; and slurry sealing on Moulton and El Toro in each of the following years.
Chart E Summarizes current unfunded and underfunds capital improvement projects. As noted above, staff is currently seeking additional funding sources for these projects.
The current and Seven Year Capital Improvement Program were reviewed and unanimously approved by the City's Public Safety Advisory Committees at its June 10, 2009 meeting. At its June 11, 2009 meeting, the Land Use and Design Review Committee discussed several issues related to the improvements proposed for City Centre Park, but also unanimously approved the current and seven year plan as presented.
Operations Budget
Cities budget on a fund basis depending on revenue sources and restrictions; expenditures for annual ongoing operations are found in several different funds. The City’s Fiscal Year 2009-10 operations budget totals $5.3 million, allocated as follows:
Public Safety (police, animal services and emergency
preparedness) $1,790,919
Administration (staff and office expense) 1,133,284
Public Works (engineering, solid waste and street
maintenance) 1,047,919
Community Services (community programs, agency
grants and CDBG programs) 589, 368
Community Development (planning and building
safety) 523,661
Insurance and legal 197,358
The following full time staffing positions are included in the proposed budget:
administrative coordinator
assistant city manager
city manager
code enforcement officer
community development director
community services manager
deputy building official
deputy city clerk
finance manager
special projects manager
The attached organization chart (Chart F) identifies position assignments and reporting responsibilities.
Antcipated Fund Balances
It was anticipated that the City of Laguna Woods would have a total Fund Balance of approximately $11,127,040 as of June 30, 2009. The Fiscal Year 2009-10 budget estimates the June 30, 2010 fund balance will total $10,813,516. The majority of this amount - $10,380,832 - will be in the unrestricted General Fund and Self Insurance Fund balances, and does not include $461,435 in proposed council contingency and reserve for economic uncertainties accounts which are budgeted but might not be spent during the fiscal year. Monies in the unrestricted fund balances may be retained in the fund balance or committed by the Council to programs and/or projects.
Balances in the Transportation and Grants funds are restricted for certain activities and fluctuate as those activities are completed by the City.
Chart G summarizes projected fund balances for Fiscal Years 2008-09 and 2009-10.
Click below for charts:
Chart A Chart B Chart C
Chart D Chart E Chart F
