1996 AGN JUN 17 I03 - Laserfiche WebLink

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Budget Message Page 2 • Community Development - Funding of $50,000 for demolition of abandoned structures and the carry-over of $30,000 for a General Plan Update. • City Attorney - Addition of a legal assistant position. • City Manager - Addition of Contract Administrator responsible for all service contracts (e.g. refuse/recycling and LLMD). • Electric - Addition of 3 positions: 2 Power Line Technicians, 1 Meter Reader. • Economic Development Department - Implementation of an aggressive economic development policy and program. • Water/Wastewater Department - Addition of an inspector and transfer and funding for two general fund positions (Street Division) to Water/Wastewater Department (NPDES). • Latchkey Grants (Child Care) - Combine 2 centers with existing 4 other sites and the upgrading of 4 part-time positions to full-time positions. • Reduced the number of furloughs from 6 days in FY 1995-96 to zero in 1996-97. • City-wide - Cost of insurance, $300,000, was allocated to all departments to establish reserve fund for Incurred But Not Reported (IBNR) liability claims. • The Sanitation and Recycling Division has been excluded as a result of Council action. Outsourcing of Sanitation/Recycling Enterprise On May 15,1996 the City Council moved to outsource/privatize the Sanitation/Recycling Enterprise. This resulted in a one-time revenue source of approximately $2.875 million. City Administration recommends that this one-time revenue not be used to fund on-going operations. The privatization of this enterprise will enhance the service level provided to residents and, at the same time, lower the service cost to the residents (from $18.45/month to $15.95/month). The new service provider will make a payment of $3 million to the City at the beginning of the fiscal year, which includes funding for the Contract Administrator position in the City Manager's Office. Staff strongly recommends that these funds be used to repay previous loans made from the Water Enterprise to the Sanitation/Recycling Enterprise. The remaining funds should be used to establish a restricted reserve for unfunded mandates through the adoption of a Council Resolution. The Water Enterprise will need the revenue from this loan repayment in order to fund their Capital Improvement Projects budget. These funds have been allocated as follows: Allocation of Funds Allocation Amount Reserve for Unfunded Mandates $1,040,000 Repay Water Enterprise loans from Sanitation Enterprise 1,880,000 Fund Contract Administrator position 80,000 Total Funds Received $3,000,000 Staff is working with the City Attorney to develop resolutions for all reserve funds (e.g., equipment replacement reserve, contingency reserve, and unfunded mandates reserve). These guidelines will include a description of the types of assets which can be allocated to the