2004 AGN JUN 28 I02 - Laserfiche WebLink

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Public Employees Retirement System (PERS) — The City of Colton is experiencing a large increase in the costs of the PERS retirement system relative to its employer share of the retirement costs. The increase passed down from PERS is primarily due to the losses incurred by PERS through its investment portfolio. When setting rates, the PERS Board anticipates 8.5% return on its investment in the market, however during the past couple of years the investments have suffered losses of approximately 7%. These losses equate to a net loss of over 15% and have a direct impact to its member agencies. Internal Revenue Fund This fund consists of Building Maintenance, Information Services (including Geographic Information Services), Warehouse, Fleet Maintenance and Risk Management. Rising costs of Workers Compensation and Public Liability Insurance costs are the primary increase in this funds budget. These costs are passed on to all City Departments based on their loss history. City staff are continuing to evaluate methods of reducing these insurance costs. Special Revenue The Child Care Division of the Community Services Department is being self funded for the most part, with the exception of a transfer of $12,000 from the General Fund to continue operating one site through the summer months. The Colton Cares program which sought a General Fund loan of approximately $65,000 in fiscal year 2003/04 will be self funded since this program has been very successful and generates sufficient revenue to meets its expenditures. This loan is scheduled to be repaid by the close of the 2003-04 fiscal year. The Lighting Landscape Maintenance Districts (LLMD) 1& 2, are programs paid for by property owners who have a direct benefit from this service. Due to provisions of the formation of LLMD #1 in 1989 there hasn't been an adjustment to the levy collected from property owners in this district. The levy is subject to Proposition 218 whereby no increase to the levy is allowed without approval of property owners through a ballot measure. For fiscal year 2004/05, two zones within this district, finds its reserves exhausted and the levy collected is insufficient to cover the cost of existing levels of service. The Parks Division of the Public Services Department (funded by the General Fund), will cover this shortfall of approximately $50,000 for this fiscal year through utilization of its statf to maintain this district. Staff will evaluate methods of solving this shortfall during the latter part of this fiscal year. The remaining Special Revenue Funds: Library Grant Fund, AQMD, CDBG, Asset Forfeiture and Storm Water are funded by special assessments or other revenue sources and are presented as balanced budgets. Debt Service Debt Service Funds provide for the payment of principal, interest and administrative costs associated with the issuance of debt instruments for the City and the Public Financing Authority. Excluding the RDA, the Debt Service Funds include: Colton Public Financing Authority (CPFA), Corporate Yard Debt Service, Water Improvements Dist. A, and five CFD's. With the exception of the Corporate Yard debt service and the Lease Revenue Bonds (Big League Dreams Project), which are part of the CPFA, all other debt payments are paid from assessments. The Corporate Yard debts are paid for by the General Fund and the three Utilities through transfers to the Debt Service Fund and are budgeted in the responsible funds. The debt service for the Lease Revenue Bonds is budgeted in the General Fund as a transfer to the CPFA Fund. Electric Utilitv The Electric Utility is proposing a$41,547,071 appropriation budget for fiscal year 2004/05. This is a decrease of almost 5% from the budget for fiscal year ending June 30, 2004. The primary change from the current fiscal