2004 AGN JUN 28 I02 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT FOR JOINT MEETING OF CITY COUNCIL FOR THE CITY OF COLTON AND COLTON UTILITY AUTHORITY MEETING OF JUNE 28, 2004 TO: Honorable Mayor and Members of the City Council and Honorable Chairperson and Utility Authority Members FROM: Daryl Parrish, City Manage� Dilu de Alwis, Finance Director �(i SUBJECT: Adopt Budget for the City of Colton for Fiscal Year beginning July 1, 2004 and ending June 30, 2005 DATE: June 22, 2004 BACKGROUND The budget is an integral operating tool for the City of Colton. Due to budget impacts that were beyond our control, the City of Colton transitioned from a biennial budget process and back to a annual budget process in fiscal year 2002. As part of this budget process, budget workshops were conducted by City staff during the month of June 2004. On June 9, 2004 Finance along with the City Manager presented overall revenue projections for the upcoming fiscal year. Subsequent to this budget workshop, proposed Departmental appropriation workshops were held on June 15'", 16`h and 215'. The June 21 S` workshop was to present to the City Council the Capital Improvement Projects budget overview as well as the Redevelopment Agency proposed budget to the Agency Board. DISCUSSION/ ANALYSIS The art of budgeting is being tested in this unstable environment. Even though the fiscal year 2004-05 will be a difficult year, staff is presenting a balanced budget for fiscal year 2004/05 for all funds. Once again due to fiscal uncertainties the General Fund Departments were directed to maintain appropriations at fiscal year 2003/04 levels in order to maintain a balanced budget. Even though General Fund revenues are projected to increase by approximately $2.5 million over the adjusted fiscal year 2003/04 budget, majority of this increase is consumed by the increase in costs associated with the Public Employees Retirement System (PERS). Furthermore, to mitigate this rising cost, the City reviewed its operations and implemented reorganizations that will realize savings of $235,127. The reorganizations are as follows: Electric Utility - Due to the retirement of the Electric Utility Director, this title along with the Assistant Utility Director title was eliminated, and the Assistant Utility Director was promoted to a newly created title of General Manager. The Transmission & Distribution Supervisor position was eliminated and that incumbent was promoted to Assistant General Manager. This reorganization realized a savings of approximate�y $121,000 to the Electric Utility.