2002 AGN JUN 18 I24 - Laserfiche WebLink

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Item #24 CITY OF COLTON AGENDA REPORT FOR CITY COUNCIL MEETING JUNE 18,2002 TO: Honorable Mayor and City Council Members FROM: Dilu de Alwis, Finance Director f"K SUBJECT: Amendment and/or Ratification of Fiscal Year 2002-03 Operating Budgets DATE: June 9, 2002 BACKGROUND The City of Colton is approaching its second year (2002-03) of the present two-year budget. Because Colton is a general law city, the budget must be approved or ratified via a public hearing by July 1 of each individual year. The current two-year budget document is valid and binding (subject to ratification), and a new separate document for 2002-03 is not required or necessary. Any budget adjustments approved by the City Council for 2002-03 will be evidenced by a resolution (attached) and entries made to the City's financial system. DISCUSSION/ANALYSIS The following discussion and analysis relates only to the budget for fiscal year 2002-03 as staff will present a comprehensive long range financial plan for the City of Colton along with a Capital Improvement Project plan at a CIP workshop in July 2002. The Redevelopment Agency will present their budget for approval in July 2002. Revenues: Due to a growing budget crisis at the State level staff recommends taking a conservative approach to revenue estimates. Due to this situation, it is anticipated that the City of Colton will lose no more than the booking fee revenue of $102,000 (Acct.# 100-5579). However due to the population increase, it is anticipated that the City will realize additional revenue in the motor vehicle in -lieu revenue category of $100,000 (Acct.# 100-5705). It is anticipated that an increase of $30,000 in Franchise Fees (Acct.# 100-5307) due to a rate increase by Colton Disposal rate increase. Due to increased revenues in the Electric Utility during fiscal year 2001-02 it is anticipated that the general fund will realize an increase in the transfer from the Electric Utility of $50,000 (Acct.# 100-7895). Since fiscal year 1999-00 the sales tax transfer from the Redevelopment Agency (RDA) has been capped at a total of $575,000. With the increase of sales tax revenue in the Cooley Ranch project area and the reduction of staffing costs in the RDA, staff recommends an increase in the sales tax transfer in the amount of $150,000 (Acct.# 100-5760). Finally, staff participation in the Big League Dreams financing and the