CCMIN060805 - Laserfiche WebLink

projected increases of about 5% each year over the next two years. For property tax, staff also projected in the area of 5% each year over the next two years. In the area of hotel tax, staff estimated slightly more, in the first year 9% and in the second year 6% in recognition of the economy bouncing back as the City has not fully recovered from the 9-11 impacts on the hotel industry, and is under greater demands in competition with local jurisdictions. For the expenditure element highlights, the total City appropriations for expenditures for 2005-06 are $158 million, which is about a 1.6% increase as compared to the current fiscal year. Appropriations for 2006-07 total $169 million, which is about 7% increase from 2005-06. The general fund operating expenditures for 2005-06 total $76.8 million, which is less than a pement increase from the prior year's budget. In 2006-07, the increase is $88.3 million, which is about an 8Y2% increase over all. In terms of the City's reserves the budget as presented to Council follows the pattern established in years past. The City has fully funded its reserves. The two biggest reserves that the City has are for economic uncertainties, which maintain 10% of its annual revenues. Over the next two years, reserves that will be set aside to address that concern, equals about $9 million. The budget also reflects the temporary recession reserve in balance, which is about $5.1 million over the next two years, and staff is recommending that this reserve be kept in place at least for the next two years until the City gets through the economy. As the economy begins to improve, that allocation can be placed back into the General Fund to fund the operations, or it can be placed back into the CIP to fund capital projects. The temporary recession reserve is relatively new, and was established in 1999-2000. This reserve has been in place ever since and the City has funded approximately $5 million dollars. In the Capital Improvement budget, the total allocation is $14.5 million in the first year and $15.5 million in the second year. Overall, the budget and the CIP contemplate a transfer from the General Fund each year for about $5 million dollars. We have established a four-year capital improvement plan that is equal to $20 million dollars over a four-year period and that is coming from the general fund. Baseline staffing is increasing by four full-time equivalent positions in the Police Department to address additional impacts of growth both in Pleasanton and regionally. No other staffing levels are proposed in the budget. It is in the best interest of this community, to increase staffing levels in the law enforcement front this next fiscal year by adding two additional police officers and one additional police officer in the second year with one support staff. This is in recognition of the Police Department not having any increase in staffing since the early 1990's, and regionally, the Tri-Valley has grown since then and staff believes it is important to address it in the short term. Non-personnel costs; supplies, materials, and equipment remain flat. There are no additional increases proposed in that area of the budget. Staff requested department heads to submit a flat line budget in recognition of some of the external factors that the City is dealing with. Internal service funds are funds that have been set aside to allow for time and replacements of capital equipment and technological needs and major facility maintenance activities. Those internal service funds are fully funded. The budget could be balanced by continuing to make contributions to those internal service funds. City Council Workshop 3 06/08/05