HomeMy WebLinkAboutBudget Work Session - Special Revenue Funds.pdf Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Fiscal Year 2012 (FY12) Budget Work Session
*** COVER MEMO***
MEETING DATE: July 18, 2011
AGENDA ITEM TYPE: Work Session
RECOMMENDATION: Listen to staff presentations, ask questions, give direction, as you
see fit.
BACKGROUND: Attached are Budget Work sheets for our discussion tonight. This
information has been prepared to assist us in developing the City’s Final Budget for Fiscal Year
2012. The hearing for adoption of the Final Budget is tentatively scheduled for August 29,
2011.
During the Work Session, we will cover the information in the following order:
1. Building Inspection Fund – FY12 Budget Work Session Sheets.
2. Planning Fund – FY12 Budget Work Session Sheets.
3. Street Maintenance Fund - FY12 Budget Work Session Sheets.
4. Tree Maintenance Fund – FY12 Budget Work Session Sheets.
5. Community Housing Fund, Workforce Housing Mills – FY12 Budget Work Session
Sheets.
FISCAL EFFECTS: Although the Final Budget adoption has far-reaching fiscal effects,
there are no immediate fiscal effects as a result of this work session.
Attachments: Listed Above
Report compiled on: July 8, 2011
119
Planning Fund – FY12 Budget Worksheet
The Planning Department information begins on page 107 of the City Manager’s
Recommended Budget document.
Revenues:
Unlike the Building Inspection Fund, the Planning Fund is supported by a number of
different revenue sources, including a substantial transfer from the General Fund. The
Planning Fund does not customarily carry a reserve balance, because of its heavy reliance on
the General Fund. As you can see in the table below, as Application Fees have declined, the
General Fund subsidy has increased.
This budget anticipates that two of our Tax Increment Districts will contribute money to fund
the department in the same amount as FY11: N 7th District- $10,000 and Northeast District -
$5,000. These transfers are included “other revenues” below.
Planning Fund ‐
Revenues
FY08 Actual FY09 Actual FY10 Actual FY11 Actual* FY12 Budget
Application Fees $245,000 $237,000 $134,500 $153,000 $125,960
General Fund Transfer 245,000 476,000 348,000 327,000 327,000
Taxes 136,000 151,000 147,000 147,000 164,800
State/Grants 85,000 85,000 84,500 95,700 76,500
Other 33,500 21,300 20,400 33,000 33,000
Total $744,500 $970,300 $734,400 $755,700 $727,260
*Estimated. FY11 records are not complete.
The CM Recommended Budget includes estimated Application Fee revenues of $126,000, or
$10,500/month. This estimate was the same estimate that we made for the FY11 budget.
While FY11 actual revenues for application fees were markedly higher (owing to the hail
storm repairs and a few large applications), we aren’t expecting that to continue into FY12.
As you can see from the graph that follows, average monthly application fees continue to
decline, with the most recent quarter being the lowest yet. As a result, a more conservative
estimate is being used for development of this budget.
120
Expenditures: The Recommended Budget eliminates the Code Enforcement Officer
position, with the Code Enforcement duties being handled in a different manner, by other
staff. Excluding personnel costs, a total Planning Fund operating budget of $68,122 is
proposed. Attached on the next page, you will find a break-down of the separate areas of the
operating budget and a chart representing the same. As you can see, the three largest areas of
the operating budget are:
• Computers and Servers - $14,500 for the replacement of department computers.
• Advertising - $10,500 for the required application and public notices.
• Maintenance Contracts - $8,000 for their photocopier (includes toner supplies.)
Budget Surplus or Deficit:
Planning Fund FY08 Actual FY09 Actual FY10 Actual FY11 Actual* FY12 Budget
Revenues $744,500 $970,300 $734,400 $755,700 $727,260
Expenditures 1,079,000 746,000 718,850 695,000 657,504
Surplus/(Deficit) ($334,500) $224,300 $15,550 $60,700 $69,756
*Estimated. FY11 records are not complete.
Summary: We propose that Quarterly Reports for the Planning Fund continue to be
presented for Fiscal Year 2012; unless operational/budget problems are encountered, the
report will be put on the Commission’s Consent agenda.
$‐
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
$30,000.00
Q4Q3Q2Q1 Q4Q3Q2Q1 Q4Q3Q2Q1Q4
FY11FY10FY09FY08
Average of Monthly Application Fees
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Date: 7/8/2011FY12 Operating BudgetFY12 CM RECOMMENDED BUDGETPLANNING FUNDDESCRIPTIONFY12 CMRECOMMENDED BUDGETADVERTISING $10,500.00 BOOKS & REFERENCE MTRLS $1,800.00 COMPUTER SUPPLIES $3,600.00 COMPUTERS & SERVERS < $5K $14,500.00 DUES & CERTIFICATIONS $3,500.00 GASOLINE & OIL $1,600.00 GENERAL $2,800.00 IN-STATE $3,750.00 INTERNET $3,799.00 MAINTENANCE CONTRACTS $8,000.00 OFFICE SUPPLIES $5,000.00 OUT-OF-STATE $1,000.00 POSTAGE $2,300.00 REPAIR & MAINT- EQUIPMENT $2,000.00 SUBSCRIPTIONS $2,000.00 TELEPHONE $1,200.00 VEH MAINT FUND ALLOCATION $773.00 TOTAL $68,122.00 0 4,000 8,000 12,000 16,000ADVERTISINGBOOKS & REFERENCE MTRLSCOMPUTER SUPPLIESCOMPUTERS & SERVERS <$5KDUES & CERTIFICATIONSGASOLINE & OILGENERALIN-STATEINTERNETMAINTENANCE CONTRACTSOFFICE SUPPLIESOUT-OF-STATEPOSTAGEREPAIR & MAINT- EQUIPMENTSUBSCRIPTIONSTELEPHONEVEH MAINT FUNDALLOCATIONPlanning FundFY12 Operating Budget122
Street Maintenance Fund – FY12 Budget Worksheet
The Streets Department information begins on page 146 of the City Manager’s
Recommended Budget document.
Revenue
The City Manager’s (CM) Recommended Budget includes a proposed assessment increase
for FY12, totaling 20%.
• Total 10% for Operations, including Debt Service on South 8th Avenue.
• 2% increase in our Reserve for Curbs.
• 8% increase to establish a Reconstruction Reserve.
We are not anticipating any increases due to “customer growth” this year. Street
Assessments are based on square footage of lots. In general, if the city doesn’t annex more
property, we will not see an increase in the square footage assessed.
On the following page you will find a “5-Year Projection” of revenues and expenditures for
the Street Maintenance Fund. We have utilized these long-range financial projections to give
us an indication of what the current program costs, with small inflationary increases, and
approved capital projects will require in assessment increases.
The two colored lines show the Reserve for Curbs and Reconstruction Reserve amounts on
an annual basis, along with a grand total accumulated over time. Both of these strategies
require continued increases in rates, beyond FY12.
This year, revenues also include the loan proceeds to reconstruct South 8th Avenue, which we
expect to borrow from the Intercap program and pay back over 10 years.
Expenditures
The following 5-Year Projection also describes the expenditures for Street Maintenance,
including re-construction of South 8th Ave. Attached, you will also find a more detailed
listing of Street Maintenance Fund operating and capital expenditures titled “FY12 Operating
Budget”. You will see from that the top three areas of operating and capital expenditures
proposed, excluding South 8th Avenue, for FY12 are:
• Repair and Maintenance of Equipment - $155,750.
• Vehicle Maintenance Shop – Internal Service Fund Allocation - $142,303.
• Gasoline and Oil - $100,000 for operation of department equipment.
Reconstruction Reserve – Proposed Projects
We recommend establishing a Reconstruction Reserve so that we may begin setting aside
money to fund more reconstruction projects. Like the Reserve for Curbs, we would use
the annual Capital Improvement Plan (CIP) to establish the funding order for projects.
Projects identified by the City Engineering Department as needing reconstruction total
over $4 million in today’s dollars, and are shown as “unfunded” below:
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A Reconstruction Reserve that brought in approximately $500,000 annually could
address this backlog in approximately 10 years. Depending on how much of these
projects would be funded with Special Improvement District Assessments to adjacent
property owners, the list might be able to be completed in a shorter period of time.
However, inflationary increases in project costs would extend timelines farther than 10
years.
Street Reconstructions
Year Project Urban Fund Impact Fees Unfunded Total
2012 College Street 2,464,000$ 3,696,000$ 6,160,000$
Durston (Ferg to Fowler) 960,000$ 640,000$ 1,600,000$
Baxter (Davis to Buckrake) 780,000$ 520,000$ 1,300,000$
Baxter (19th to Buckrake)175,000$ 175,000$
Story (Church to Tracy)400,000$ 400,000$
Grand (Olive to Garfield)850,000$ 850,000$
Olive (Church to 8th)1,000,000$ 1,000,000$
Baxter Lane (West of N 7th Ave)900,000$ 900,000$
2014 Kagy 2,660,000$ 3,990,000$ 6,650,000$
5,124,000$ 9,455,000$ 4,485,000$ 20,567,600$
124
Street Maintenance District - 5 year ProjectionFY2012 Budget PreparationAdopted Projected Projected Projected ProjectedProjectedRate Increase3% 10% 4% 4% 4% 4%Customer Increase - sq ftg0% 0% 1% 2% 2% 2%Reserve For Curbs2% 2% 2% 2% 2% 0%Reserve for Reconstruction0% 8% 10% 0% 0% 0%FY11 FY12 FY13 FY14 FY15 FY16Beginning Fund Balance - Projected647,589 349,191 402,477 93,257 15,749 (16,377) Estimated Revenues:Assessments 2,116,000 2,665,872 3,141,860 3,399,543 3,678,360 3,902,004 Street Cut Permits 20,000 10,000 15,000 15,000 15,000 15,000 Interest Earnings 15,000 10,000 10,000 10,000 10,000 10,000 Loan Proceeds 1,560,000 Total Estimated Revenues:2,151,000 4,245,872 3,166,860 3,424,543 3,703,360 3,927,004 Proposed Expenditures:Existing Personnel 1,161,487 1,192,586 1,228,364 1,265,214 1,303,171 1,342,266 New in FY11! Reserve for Curbs 42,320 95,637 158,475 226,466 300,033 300,033 1,122,963.00 New in FY12!! Street Reconstruction- 213,270 527,456 527,456 527,456 527,456 2,323,092.90 Operations 832,135 888,993 915,663 943,133 971,427 1,000,569 Debt Service, Intercap 135,000 158,400 158,400 158,400 158,400 Approved CIP *with adjustments 413,456 1,667,100 487,723 381,383 475,000 291,000 Total Proposed Expenditures:2,449,398 4,192,586 3,476,080 3,502,051 3,735,486 3,619,724 Ending Fund Balance - Projected349,191 402,477 93,257 15,749 (16,377) 290,903 Annual Assessments: Small Lot, 5,000 sq ft. 59.13$ 70.95$ 82.30$ 87.24$ 92.48$ 96.17$ Average Lot, 7,500 sq ft. 88.70$ 106.44$ 123.48$ 130.88$ 138.74$ 144.29$ Large Lot, 10,000 sq ft. 118.27$ 141.93$ 164.63$ 174.51$ 184.98$ 192.38$ A. Rosenberry7/8/2011125
Date: 7/8/2011
FY12 Operating Budget
FY12 CM RECOMMENDED BUDGET
STREET MAINTENANCE FUND
DESCRIPTION FY12 CM
RECOMMENDED
BUDGET
ADVERTISING $3,000.00
BOOKS & REFERENCE MTRLS $1,700.00
CHEMICALS $13,000.00
CLOTHING & UNIFORMS $4,100.00
COMPUTER SUPPLIES $2,000.00
COMPUTERS & SERVERS < $5K $1,150.00
CONSULTANTS & PROF SERV $8,400.00
CONTRACTORS $17,000.00
DUES & CERTIFICATIONS $1,280.00
ELECTRICITY $75,700.00
ENGINEERS $35,000.00
GASOLINE AND OIL $100,000.00
GENERAL $93,730.00
IMP:INFRASTRUCTURE+IMPROV $1,574,600.00
IN-STATE $5,000.00
INSURANCE $15,000.00
INTERNET $3,370.00
M&E:MACH+EQUIP/HEAVY TRUK $92,500.00
MAINTENANCE CONTRACTS $7,010.00
MEDICAL SERVICES $3,000.00
OFFICE SUPPLIES $1,800.00
OUT-OF-STATE $9,500.00
POSTAGE $200.00
PRINCIPAL $135,000.00
RENTS & LEASES $11,200.00
REPAIR & MAINT - OTHER $11,000.00
REPAIR & MAINT- BUILDINGS $5,500.00
REPAIR & MAINT- EQUIPMENT $155,750.00
ROAD SUPPLIES $85,400.00
SHIPPING & HANDLING $500.00
SMALL EQUIPMENT AND TOOLS $27,500.00
STREET SIGN REPAIR $5,000.00
SUBSCRIPTIONS $800.00
TELEPHONE $5,600.00
VEH MAINT FUND ALLOCATION $142,303.00
VEHICLE SUPPLIES $36,000.00
WATER SERVICE $1,500.00
TOTAL $2,691,093.00
0 40,000 80,000 120,000 160,000
ADVERTISING
BOOKS & REFERENCE MTRLS
CHEMICALS
CLOTHING & UNIFORMS
COMPUTER SUPPLIES
COMPUTERS & SERVERS < $5K
CONSULTANTS & PROF SERV
CONTRACTORS
DUES & CERTIFICATIONS
ELECTRICITY
ENGINEERS
GASOLINE AND OIL
GENERAL
IMP:INFRASTRUCTURE+IMPROV
IN-STATE
INSURANCE
INTERNET
M&E:MACH+EQUIP/HEAVY TRUK
MAINTENANCE CONTRACTS
MEDICAL SERVICES
OFFICE SUPPLIES
OUT-OF-STATE
POSTAGE
PRINCIPAL
RENTS & LEASES
REPAIR & MAINT - OTHER
REPAIR & MAINT- BUILDINGS
REPAIR & MAINT- EQUIPMENT
ROAD SUPPLIES
SHIPPING & HANDLING
SMALL EQUIPMENT AND TOOLS
STREET SIGN REPAIR
SUBSCRIPTIONS
TELEPHONE
VEH MAINT FUND ALLOCATION
VEHICLE SUPPLIES
WATER SERVICE
Street Maintenance Fund
FY12 Operating, Capital, and Debt Budget
126
Tree Maintenance Fund – FY12 Budget Worksheet
The Forestry Department information begins on page 192 of the City Manager’s
Recommended Budget document.
Revenue
The CM Recommended Budget recommends no increase for Tree Maintenance Assessments.
However, because of the annual assessment process, we still need to hold public hearings and
adopt the same rate as last year.
Expenditures
In developing the budget for the Tree Maintenance Fund, we also customarily look at a 5-
Year Projection of expenditures and revenues. This projection is attached.
Also attached is a more detailed list of the Funds budget for operating expenditures. As you
can see from that report, the top three areas of budgeted expenditures are:
• General - $52,630. Comprised of $18,000 for Boulevard Tree Vouchers, $5,000 for
Cost Share Trees, and $4,000 for Pheromone packets to be used on City Owned trees
to deter Pine Beetle kill.
• Gasoline and Oil – $12,000 for operating department vehicles.
• Repair and Maintenance of Equipment – $6,000.
127
Tree Maintenance District - 5 year ProjectionFY2012 BudgetAdoptedProposedProjectedProjectedProjectedProjectedProposed Rate Increase4% 0% 2% 2% 3% 4%Estimated Growth in Assessable Sq Ftg0% 0% 0% 1% 1% 1%FY11 FY12 FY13 FY14 FY15 FY16Beginning Fund Balance - Projected222,400 156,624 145,172 61,364 44,284 5,834 Estimated Revenues:Assessments (FY11 Actual Billed) 416,000 416,000 424,320 437,134 454,751 477,670 Interest Earnings 7,000 2,000 2,000 2,000 3,000 3,000 Sale of Cost-Share-Trees 10,000 10,000 10,000 10,000 10,000 10,000 Total Estimated Revenues: 433,000 428,000 436,320 449,134 467,751 490,670 Proposed Expenditures:Existing Personnel 315,202 326,666 336,466 346,560 356,957 367,665 Operations 133,274 112,786 116,170 119,655 123,244 126,942 Capital 50,300 - 67,492 - 26,000 - Total Proposed Expenditures: 498,776 439,452 520,128 466,215 506,201 494,607 Ending Fund Balance - Projected 156,624 145,172 61,364 44,284 5,834 1,898 Annual Assessments: Small Lot, 5,000 sq ft. 11.24$ 11.24$ 11.47$ 11.70$ 12.05 12.53 Average Lot, 7,500 sq ft. 16.87$ 16.87$ 17.21$ 17.55$ 18.08 18.80 Large Lot, 10,000 sq ft. 22.50$ 22.50$ 22.95$ 23.40$ 24.11 25.07 A. Rosenberry7/8/2011128
Date: 7/8/2011
FY12 Operating Budget
FY12 CM RECOMMENDED BUDGET
TREE MAINTENANCE FUND
DESCRIPTION FY12 CM
RECOMMENDED
BUDGET
ADVERTISING $2,550.00
BOOKS & REFERENCE MTRLS $700.00
CHEMICALS $500.00
CLOTHING & UNIFORMS $1,250.00
COMPUTER SUPPLIES $750.00
CONSULTANTS & PROF SERV $1,500.00
DUES & CERTIFICATIONS $850.00
ELECTRICITY $600.00
GASOLINE AND OIL $12,000.00
GENERAL $52,630.00
IN-STATE $3,250.00
INSURANCE $2,500.00
INTERNET $2,664.00
MAINTENANCE CONTRACTS $900.00
MEDICAL SERVICES $300.00
OFFICE SUPPLIES $2,000.00
PERSONAL COMPUTERS $150.00
POSTAGE $4,200.00
REPAIR & MAINT - OTHER $500.00
REPAIR & MAINT- BUILDINGS $1,000.00
REPAIR & MAINT- EQUIPMENT $6,000.00
ROAD SUPPLIES $2,000.00
SHIPPING & HANDLING $300.00
SMALL EQUIPMENT AND TOOLS $3,500.00
SUBSCRIPTIONS $250.00
TELEPHONE $1,550.00
VEH MAINT FUND ALLOCATION $5,592.00
VEHICLE SUPPLIES $2,500.00
WATER SERVICE $300.00
TOTAL $112,786.00 0 8,000 16,000 24,000 32,000
ADVERTISING
BOOKS &REFERENCE MTRLS
CHEMICALS
CLOTHING &UNIFORMSCOMPUTERSUPPLIESCONSULTANTS &PROF SERVDUES &
CERTIFICATIONS
ELECTRICITY
GASOLINE AND OIL
GENERAL
IN-STATE
INSURANCE
INTERNET
MAINTENANCE
CONTRACTS
MEDICAL SERVICES
OFFICE SUPPLIES
PERSONALCOMPUTERS
POSTAGE
REPAIR & MAINT -OTHERREPAIR & MAINT-
BUILDINGSREPAIR & MAINT-
EQUIPMENT
ROAD SUPPLIES
SHIPPING &HANDLINGSMALL EQUIPMENTAND TOOLS
SUBSCRIPTIONS
TELEPHONE
VEH MAINT FUND
ALLOCATION
VEHICLE SUPPLIES
WATER SERVICE
Tree Maintenance Fund
FY12 Operating, Capital, and Debt Budget
129
Community Housing Fund – FY12 Budget Worksheet
Community Housing Fund (Fund 120) is included in the Community Development
Expenditure Information on page 203.
Community Housing Fund – FY12 Expenditure Total $40,000
The Community Housing Fund holds revenues from some previous housing loans that are
slowly coming back to the city, and also has been where we have deposited and recorded the
activity of the City’s tax dollars dedicated to Workforce Housing.
The CM Recommended Budget includes tax revenue of 1/2 mill (estimated at $40,000) for
Workforce Housing efforts. We have received one request for funding from Road to Home,
in the amount of $40,000 (letter attached.)
For a number of years, the City has set aside general fund dollars/tax dollars for Workforce
Housing efforts. Revenues set aside often outstripped expenditures. At the end of Fiscal
Year 2011, we estimate the available balance to be $248,739. The FY12 Recommended
Budget would result in the same ending balance, assuming no additional projects are funded.
Workforce Housing Funding
Within the Community Housing Fund Proposed
1.0 Mill 2.0 Mills 2.0 Mills 1.46 Mills 1.0 Mills 0.5 Mills 0.5 Mills
FY06 FY07 FY08 FY09 FY10 FY11* FY12
Beginning Balance - 28,000 94,248 182,514 255,449 298,739 248,739
Revenues:
General Fund Transfer 58,000 126,500 137,962
Dedication of Tax Revenue 105,600 78,290 40,000 40,000
Interest Earnings - 6,285 8,166 7,335 5,000
Total Estimated Revenues: 58,000 132,785 146,128 112,935 83,290 40,000 40,000
Expenditures:
Road to Home - Administration 30,000 30,000 40,000 40,000 40,000 40,000
HRDC - Owner Occupied Home Rehab 50,000
Habitat for Humanity - 4 Lots 60,000
Workforce Housing Ordinance Development 6,537 7,837
Workforce Housing Administrator 20,025
Total Proposed Expenditures: 30,000 66,537 57,862 40,000 40,000 90,000 40,000
Ending Balance 28,000 94,248 182,514 255,449 298,739 248,739 248,739
130
131
132
Building Inspection Fund – FY12 Budget Worksheet
The Building Inspection Division information begins on page 132 of the City Manager’s
Recommended Budget document.
Revenues: The City Manager’s (CM) Recommended Budget estimates Building Inspection
revenue of $869,600, or $72,450/month. This estimate, made in April, turns out to be lower
than the actual average monthly revenue for all of FY11 ($84,250.) The 4th Quarter of FY11
saw the highest average monthly building revenue (average of $112,000/month) collected
since the 1st Quarter of FY09 (average of $95,000/month), nearly 36 months ago.
Expenditures: The Recommended Budget includes all of the existing department personnel,
and a modest operating budget for the division for the year. The Permit Technician was
brought back in April, based on permit volumes, and is planned to be retained for the full
year on a permanent basis. Total estimated expenditures are $803,136.
Excluding personnel costs, a total Building Inspection Fund operating budget of $149,650 is
proposed. Attached on the next page, you will find a break-down of the separate areas of the
operating budget and a chart representing the same. As you can see, the three largest areas of
the operating budget are:
• Payment of the City’s Administrative Overhead Allocation - $41,200
• In-State Training - $20,000 (the department is budgeting no out-of-state training this
year)
• Maintenance Contracts - $14,000 for software, copier and printer maintenance.
$‐
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
Q4Q3Q2Q1 Q4Q3Q2Q1 Q4Q3Q2Q1Q4
FY11FY10FY09FY08
Average of Monthly Building Revenue
133
Date: 7/8/2011FY12 Operating BudgetFY12 CM RECOMMENDED BUDGETBUILDING INSPECTION FUNDDESCRIPTIONFY12 CMRECOMMENDED BUDGETADMINISTRATIVE OVERHEAD $41,200.00 ADVERTISING $3,500.00 BOOKS & REFERENCE MTRLS $5,500.00 CLOTHING & UNIFORMS $2,200.00 COMPUTER SUPPLIES $3,500.00 COMPUTERS & SERVERS < $5K $1,500.00 CONSULTANTS & PROF SERV $5,000.00 DUES & CERTIFICATIONS $1,200.00 GASOLINE AND OIL $12,000.00 GENERAL $11,000.00 IN-STATE $20,000.00 MAINTENANCE CONTRACTS $14,000.00 OFFICE SUPPLIES $7,500.00 POSTAGE $1,000.00 REPAIR & MAINT- BUILDINGS $3,000.00 REPAIR & MAINT- EQUIPMENT $9,000.00 SHIPPING & HANDLING $250.00 SMALL EQUIPMENT AND TOOLS $500.00 SUBSCRIPTIONS $150.00 TELEPHONE $6,500.00 VEH MAINT FUND ALLOCATION $1,150.00 TOTAL $149,650.000 10,000 20,000 30,000 40,000 50,000ADMINISTRATIVE OVERHEADADVERTISINGBOOKS & REFERENCE MTRLSCLOTHING & UNIFORMSCOMPUTER SUPPLIESCOMPUTERS & SERVERS <$5KCONSULTANTS & PROF SERVDUES & CERTIFICATIONSGASOLINE AND OILGENERALIN-STATEMAINTENANCE CONTRACTSOFFICE SUPPLIESPOSTAGEREPAIR & MAINT- BUILDINGSREPAIR & MAINT- EQUIPMENTSHIPPING & HANDLINGSMALL EQUIPMENT ANDTOOLSSUBSCRIPTIONSTELEPHONEVEH MAINT FUNDALLOCATIONBuilding Inspection FundFY12 Operating Budget134
Budget Surplus or Deficit:
Building Inspection Fund FY10 Actual FY11 Actual* FY12 Budget
Revenues $656,000 $1,010,000 $869,000
Expenditures $722,600 $735,000 $803,136
Surplus/(Deficit) ($66,600)$275,000 $65,864
*Estimated. FY11 records are not complete.
The resulting budget surplus would add to the current Building Inspection Fund cash reserve,
estimated to be roughly $800,000 at the end of FY11.
During FY09, the desired level of Building Inspection Fund reserve was discussed at length.
We were targeting to develop a budget that would result in a reserve no less than 50% of
annual expenditures. By State law, we can have no more than 100% of annual expenditures
in reserve in the fund at the end of the year. This proposed budget is estimated to leave the
FY12 ending reserve amount at approximately $865,000, or 107% of FY12 annual
expenditures. Given the recent permit activity of April – June 2011, and the fact that one
existing inspector is on leave indefinitely, we anticipate hiring additional building inspectors
in the coming months.
Summary:
After review of the most recent quarter’s activity, we feel adopting the recommended budget
with possibly one additional building inspector, would be most appropriate. The department
is continuing to investigate enhancements to our existing software that would significantly
improve project application permitting and in-the-field customer service. These items are not
included in the budget, but will be brought forward when we have more certainty about their
cost and efficiency improvements.
While FY11 and our cash reserve were positively impacted by a marked increase in Fourth
Quarter revenues, we believe FY12 will see the usual seasonal “highs and lows” that are
customary in the building inspection process. We will continue to monitor the Building
Inspection Division’s activity with Quarterly Reports to the Commission. Unless
operational/budget problems are encountered, the report will be put on the Commission’s
Consent agenda.
135